Document:

EXHIBIT
4.15

      

       

      Dated as of 13 October
2008

       

      

       

      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

      (RRO/PIRD)

       

      CE082870002

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

       

      Contents

       

      Page

       

      
        	
                1.

              	
                INTERPRETATION

              	
                2

              
	 	 	 
	
                2.

              	
                CONDITIONS

              	
                19

              
	 	 	 
	
                3.

              	
                THE PLACING AND OPEN OFFER AND
      APPOINTMENTS

              	
                25

              
	 	 	 
	
                4.

              	
                ALLOTMENT OF THE NEW SHARES,
      CONSIDERATION AND REGISTRATION

              	
                32

              
	 	 	 
	
                5.

              	
                OVERSEAS
      SHAREHOLDERS

              	
                33

              
	 	 	 
	
                6.

              	
                HM TREASURY
      ACQUISITION

              	
                36

              
	 	 	 
	
                7.

              	
                CAPACITY

              	
                38

              
	 	 	 
	
                8.

              	
                FEES, COMMISSIONS, EXPENSES AND
      VAT

              	
                39

              
	 	 	 
	
                9.

              	
                COVENANTS

              	
                41

              
	 	 	 
	
                10.

              	
                REPRESENTATIONS, WARRANTIES AND
      UNDERTAKINGS

              	
                45

              
	 	 	 
	
                11.

              	
                INDEMNITIES

              	
                47

              
	 	 	 
	
                12.

              	
                CONTRIBUTION

              	
                50

              
	 	 	 
	
                13.

              	
                TERMINATION

              	
                51

              
	 	 	 
	
                14.

              	
                EXCLUSIONS OF
      LIABILITY

              	
                54

              
	 	 	 
	
                15.

              	
                MISCELLANEOUS

              	
                55

              
	 	 	 
	
                16.

              	
                GENERAL

              	
                55

              
	 	 	 
	
                17.

              	
                ASSIGNMENT OR
      NOVATION

              	
                58

              
	 	 	 
	
                18.

              	
                NOTICES

              	
                58

              
	 	 	 
	
                19.

              	
                GOVERNING LAW AND SUBMISSION TO
      JURISDICTION

              	
                59

              

      

      

       

      
        	
                SCHEDULE 1 CERTIFICATES TO BE
      DELIVERED

              	
                61

              
	 	 
	
                SCHEDULE 2 DOCUMENTS TO BE
      DELIVERED

              	
                65

              
	 	 
	
                SCHEDULE 3
      WARRANTIES

              	
                72

              
	 	 
	
                SCHEDULE 4 PRO FORMA NOVATION
      AGREEMENT

              	
                90

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        	
                SCHEDULE 5 US INVESTOR
      LETTER

              	
                95

              
	 	 
	
                SCHEDULE 6 CONDITIONS TERM
      SHEET

              	
                99

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
      THIS AGREEMENT is effective as of 13 October 2008
among:

       

      
        	
                (1)

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

              

      

       

      
        	
                (2)

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

              

      

       

      
        	
                (3)

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

              

      

       

      
        	
                (4)

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

              

      

       

      
        WHEREAS:

      

       

      
        	
                (A)

              	
                The Company
      proposes to invite Qualifying Shareholders to apply to acquire 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.

              

      

       

      
        	
                (B)

              	
                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 acquire 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.

              

      

       

      
        	
                (C)

              	
                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 acquire (or procure that its
      nominee acquires) such New Shares
itself.

              

      

       

      
        	
                (D)

              	
                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.  The consideration for the allotment and issue of the
      New Shares to Qualifying Shareholders and/or Placees, and/or to HM
      Treasury or its nominee (as the case may be) will be the transfer of the
      Consideration Shares by one of the Joint Sponsors or a third party (in its
      capacity as a subscriber for the Consideration Shares) to the
      Company.

              

      

       

      
        	
                (E)

              	
                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.

              

      

       

      
        	
                (F)

              	
                Application
      will be made to the FSA and the London Stock Exchange for the admission of
      the New Shares and the Preference Shares to the Official List and to
      trading on the 

              

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
        London Stock
Exchange’s market for listed securities and, in the case of the New Shares, 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 (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 the
      audited consolidated accounts of the Group for the three years ended 31
      December 2005, 2006 and 2007 (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);

              
	 	 	 	 
	 	
                "Accounts
      Date"

              	 	
                means 31
      December 2007;

              
	 	 	 	 
	 	
                "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 

              

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

       

      
        	 	 	 	
                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 & Touche 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;

              
	 	 	 	 
	 	
                "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 containing notice of the
GM;

              

      

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "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;

              
	 	 	 	 
	 	
                "Consideration
      Shares"

              	 	
                means the
      JerseyCo Ordinary Shares and the JerseyCo Preference
    Shares;

              
	 	 	 	 
	 	
                "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 13
      October 2008;

              
	 	 	 	 
	 	
                "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 and the Preference Shares to
      CREST are satisfied;

              
	 	 	 	 
	 	
                “Engagement
      Letters”

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

              

      

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "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;

              
	 	 	 	 
	 	
                "GM
      Date"

              	 	
                means the
      date on which the GM is held, being no later than 27 November 2008, 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 

              

      

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	 	
                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;

              
	 	 	 	 
	 	
                "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;

              
	 	 	 	 
	 	
                "Investment
      Company Act"

              	 	
                means the
      United States Investment Company
Act

              

      

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	 	
                of
      1940;

              
	 	 	 	 
	 	
                "Issue
      Documents"

              	 	
                means the
      Press Announcement, the Application Form, the Circular, the Form of Proxy,
      the Prospectus, any Supplementary Prospectus, the Preference Prospectus,
      any Supplementary Preference Prospectus, the Presentation, all
      documentation published or issued in connection with the Preference Share
      Subscription, 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, the Open Offer or the Preference Share
      Subscription;

              
	 	 	 	 
	 	
                "Issue
      Price"

              	 	
                means the
      price of 65.5 pence per New Share;

              
	 	 	 	 
	 	
                "JerseyCo"

              	 	
                means a
      company to be incorporated in Jersey in connection with the
      Placing;

              
	 	 	 	 
	 	
                "JerseyCo
      Ordinary Shares"

              	 	
                means the
      ordinary shares in the capital of JerseyCo to be issued to one of the
      Joint Sponsors under the terms of the Option Agreement;

              
	 	 	 	 
	 	
                "JerseyCo
      Preference Shares"

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

              
	 	 	 	 
	 	
                "Joint
      Sponsors"

              	 	
                means UBS and
      Merrill Lynch;

              
	 	 	 	 
	 	
                "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;

              
	 	 	 	 
	 	
                "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 

              

      

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	 	
                “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,

                 

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

              
	 	 	 	 
	 	
                "New
      Shares"

              	 	
                means the
      22,909,776,276 new Ordinary Shares 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);

              

      

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "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 acquire 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 acquire 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;

              
	 	 	 	 
	 	
                "Option
      Agreement"

              	 	
                means the
      option agreement to be entered into between JerseyCo, the Company and the
      Joint Sponsors providing a put option in relation to the JerseyCo Ordinary
      Shares granted by the Company in favour of the Joint Sponsors and a call
      option in relation to the JerseyCo Ordinary Shares granted by the Joint
      Sponsors in favour of the Company, in the form to be
    agreed;

              
	 	 	 	 
	 	
                "Ordinary
      Shareholders"

              	 	
                means holders
      of Ordinary Shares;

              
	 	 	 	 
	 	
                "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;

              
	 	 	 	 
	 	
                "Panel"

              	 	
                means the
      Panel on Takeovers and Mergers;

              

      

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "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
      acquire New Shares pursuant to the Placing, and approved by HM Treasury in
      advance of any acquisition 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;

              
	 	 	 	 
	 	
                "Preference
      Admission"

              	 	
                means the
      admission of the Preference 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;

              
	 	 	 	 
	 	
                "Preference
      Prospectus"

              	 	
                means the
      prospectus (including the information incorporated by reference therein
      and comprising a prospectus for the purpose of the Prospectus Rules) to be
      published by the Company in relation to the Preference Admission, in the
      form to be

              

      

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	 	
                agreed;

              
	 	 	 	 
	 	
                "Preference
      Shares"

              	 	
                means
      preference shares to be issued by the Company to HM Treasury (or its
      nominee) with an aggregate liquidation preference of £5,000,000,000 having
      the rights and subject to the restrictions set out in Article 4(C) of the
      Company’s Articles of Association as supplemented by Schedule 1 of the
      Preference Share Subscription Agreement;

              
	 	 	 	 
	 	
                "Preference
      Share Subscription"

              	 	
                means the
      proposed subscription for Preference Shares pursuant to the Preference
      Share Subscription Agreement;

              
	 	 	 	 
	 	
                "Preference
      Share Subscription Agreement"

              	 	
                means the
      agreement between the Company and HM Treasury being effective as of the
      Effective Date pursuant to which HM Treasury agrees to subscribe for the
      Preference Shares;

              
	 	 	 	 
	 	
                "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 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 Preference Share
      Subscription;

              
	 	 	 	 
	 	
                "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;

              
	 	 	 	 
	 	
                "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 

              
	 	 	 	 

      

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	 	
                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;

              
	 	 	 	 
	 	
                "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, the Joint Sponsors 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;

              

      

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "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 Whitewash Resolution;

              
	 	 	 	 
	 	
                "SDRT"

              	 	
                means stamp
      duty reserve tax;

              
	 	 	 	 
	 	
                "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 and, to the extent necessary, the
      Preference Shares; and

                 

                (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, to the extent necessary, the Preference Shares,

                 

                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;

              

      

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                "Subscription
      and Transfer Agreement"

              	 	
                means the
      share subscription and transfer agreements or any of them, as the context
      requires, in the form to be agreed, to be entered into between JerseyCo,
      the Company and the Joint Sponsors providing, among other things, for the
      transfer to the Company by one of the Joint Sponsors (in its capacity as
      subscriber for the Consideration Shares) of the Consideration
      Shares;

              
	 	 	 	 
	 	
                "Supplementary
      Preference Prospectus"

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

              
	 	 	 	 
	 	
                "Supplementary
      Prospectus"

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

              
	 	 	 	 
	 	
                "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;

              

      

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

       

      
        	 	
                “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 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

              

      

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	 	
                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;

              
	 	 	 	 
	 	
                "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 

              

      

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	 	
                undertakings
      contained in Schedule 3;

              
	 	 	 	 
	 	
                "Whitewash
      Resolution"

              	 	
                means the
      resolution, in a form acceptable to HM Treasury, acting reasonably,
      pursuant to which Ordinary Shareholders are to waive any obligation of HM
      Treasury to make an offer under Rule 9 of the City Code on Takeovers and
      Mergers;

              
	 	 	 	 
	 	
                “Wholly
      Owned Equity”

              	 	
                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 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).

              

      

       

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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-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.

              

      

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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.

              

      

       

      
        	
                1.19

              	
                Any reference
      to “this
      Agreement” or “any
      other agreement relating to the Placing and Open Offer” or “the arrangements contemplated
      by the Issue Documents” or similar expressions shall be deemed,
      where the context permits, to include a reference to the Subscription and
      Transfer Agreement and the Option Agreement and the arrangements
      thereunder, including, without limitation, JerseyCo and the issue and
      allotment of the JerseyCo Ordinary Shares and the JerseyCo Preference
      Shares.

              

      

       

      
        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:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                this
      Agreement;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                if executed,
      the Subscription and Transfer
Agreement;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                if executed,
      the Option Agreement; or

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                the
      Preference Share Subscription
Agreement;

              

      

       

      
        	
                 
      

              	
                (C)

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

              

      

       

      
        	
                 
      

              	
                (D)

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

              

      

       

      
        	
                 
      

              	
                (E)

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

              

      

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (F)

              	
                the Directors
      being duly authorised under applicable law to allot and issue the
      Preference Shares to HM Treasury (or its nominee) in accordance with the
      terms of the Preference Share Subscription
  Agreement;

              

      

       

      
        	
                 
      

              	
                (G)

              	
                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 and/or the Preference Share
      Subscription Agreement;

              

      

       

      
        	
                 
      

              	
                (H)

              	
                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/or Preference Shares contemplated by this
      Agreement and/or the Preference Share Subscription
    Agreement;

              

      

       

      
        	
                 
      

              	
                (I)

              	
                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;

              

      

       

      
        	
                 
      

              	
                (J)

              	
                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;

              

      

       

      
        	
                 
      

              	
                (K)

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

              

      

       

      
        	
                 
      

              	
                (L)

              	
                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 Preference Shares contemplated
      by this Agreement and/or the Preference Share Subscription 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 Preference Share Subscription,
      any acquisition of New Shares or Preference Shares by HM Treasury,
      

              

      

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

       

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

      

       

      
        	
                 
      

              	
                (M)

              	
                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;

              

      

       

      
        	
                 
      

              	
                (v)

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

              

      

       

      
        	
                 
      

              	
                (vi)

              	
                immediately
      prior to Preference Admission, of the documents listed in Part IV 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
applications for Admission or Preference Admission;

       

      
        	
                 
      

              	
                (N)

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

              

      

       

      
        	
                 
      

              	
                (O)

              	
                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;

              

      

       

      
        	
                 
      

              	
                (P)

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

              

      

       

      
        	
                 
      

              	
                (Q)

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

              

      

       

      
        	
                 
      

              	
                (R)

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

              

      

       

      
        	
                 
      

              	
                (S)

              	
                the Circular
      being approved by the Panel in relation to the Whitewash
      Resolution;

              

      

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (T)

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

              

      

       

      
        	
                 
      

              	
                (U)

              	
                subject to
      satisfaction of the conditions set out in clause 2.1(R) and clause 2.1(S), 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;

              

      

       

      
        	
                 
      

              	
                (V)

              	
                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;

              

      

       

      
        	
                 
      

              	
                (W)

              	
                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;

              

      

       

      
        	
                 
      

              	
                (X)

              	
                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 issue of New Shares and/or Preference Shares contemplated by
      this Agreement and/or the Preference Share Subscription
      Agreement;

              

      

       

      
        	
                 
      

              	
                (Y)

              	
                the
      Subscription and Transfer Agreement and the Option Agreement having been
      duly executed, the Subscription and Transfer Agreement relating to the
      allotment of the New Shares having become wholly unconditional except for
      the condition relating to Admission, each of the parties thereto complying
      with its obligations in each of the Subscription and Transfer Agreement
      relating to the allotment of the New Shares and the Option Agreement to
      the extent that the same fall to be performed prior to Admission or
      Preference Admission and there having occurred no default or breach by any
      party thereto under either such
agreement;

              

      

       

      
        	
                 
      

              	
                (Z)

              	
                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 Preference Share
      Subscription, any acquisition of New Shares or Preference Shares by HM
      Treasury, Ordinary Shareholders or Placees or Admission, Preference
      Admission or post-Admission dealings in the Ordinary
    Shares;

              

      

       

      
        	
                 
      

              	
                (AA)

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

              

      

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (BB)

              	
                Preference
      Admission becoming effective on the date of
  Admission;

              

      

       

      
        	
                 
      

              	
                (CC)

              	
                Admission
      occurring at or before 8.00 a.m. on 12 December 2008 (or such later time
      or date as HM Treasury may agree);

              

      

       

      
        	
                 
      

              	
                (DD)

              	
                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, the Preference Share Subscription, any acquisition of New
      Shares or subscription for Preference Shares by HM Treasury, Ordinary
      Shareholders or Placees or Admission or Preference 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

              

      

       

      
        	
                 
      

              	
                (EE)

              	
                the Company
      allotting, subject only to Preference Admission, the Preference Shares to
      HM Treasury in accordance with the Preference Share Subscription
      Agreement.

              

      

       

      
        	
                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 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(L) 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(R), (V) and
      (CC).

              

      

       

      
        	
                2.4

              	
                Each Joint
      Sponsor shall not unreasonably refuse consent to executing such documents
      and doing such things as the Company and HM Treasury may reasonably
      require to grant security, and a power of attorney, to the Company over,
      and in respect of, the shares in JerseyCo to be subscribed by such Joint
      Sponsor under the Subscription and Transfer Agreement and the Option
      Agreement and to JerseyCo over the bank account to which payments are to
      be made pursuant to clauses 3.24, 3.25 and 6.3 and
      over all or any rights of the Joint Sponsors to receive payments for any
      New Shares to be acquired pursuant to the Placing and Open Offer, in each
      case as security for the performance by the Joint Sponsors of their
      obligations under such agreements.

              

      

       

      
        	
                2.5

              	
                Subject to
      clause 2.8, 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 (G), (Q) (save in relation to the
      Whitewash Resolution), (R) and (CC)) 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.

              

      

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

       

      
        	
                2.6

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

              

      

       

      
        	
                2.7

              	
                If the
      condition set out in clause 2.1(G) 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,
      Admission, Preference Admission, 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.

              

      

       

      
        	
                2.8

              	
                If:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                any of the
      conditions set out in clause 2.1 are not
      fulfilled or, if capable of waiver pursuant to clause 2.5 or clause 2.6,
      waived, or treated as waived pursuant to clause 2.7, 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 and by the Preference Share Subscription Agreement proceed
      to completion in order to maintain the financial stability of the United
      Kingdom,

              

      

       

      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, the Company
shall withdraw any application made for Preference Admission, this 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 2.10.

       

      
        	
                2.9

              	
                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
      2.5 or clause 2.6, waived, or treated as waived pursuant to
      clause 2.7, 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 and by the Preference Share Subscription 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).

              

      

       

      
        	
                2.10

              	
                Where this
      Agreement has terminated pursuant to clause 2.8:

              

      

       

      
        	
                 
      

              	
                (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

              

      

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (C)

              	
                the
      provisions of this clause 2.10 and clauses 1, 8, 9.1, 9.2, 9.3, 9.4, 9.6, 9.11, 10, 11, 12, 14, 15, 16, 17, 18 and 19 shall remain in full force and
      effect.

              

      

       

      
        	
                2.11

              	
                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(G) and 2.1(H) 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(G) and 2.1(H) 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.

              

      

       

      
        	
                2.12

              	
                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.

              

      

       

      
        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 

              

      

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

       

      
        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 acquire 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 acquire 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 acquire
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 take up 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 acquired 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
      obliged to acquire such New Shares which shall be Residual Shares to be
      taken up solely by HM Treasury in accordance with clause
      6.3.  The 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 acquired by HM Treasury (or its nominee) pursuant to
      clause 6.3 (the "Placing
      Schedule").  HM Treasury, the Company and the
      

              

      

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

       

      
        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
      confirms that it will appoint a receiving agent to act as registrar and
      receiving agent in connection with the Placing and Open Offer and that the
      Receiving Agent will be admitted as registrar and receiving agent in
      respect of CREST.

              

      

       

      
        	
                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 Joint
      Sponsors and the Company agree to use their respective reasonable
      endeavours to finalise the Option Agreement and Subscription and Transfer
      Agreement so as to give effect to the arrangements intended to be
      contemplated by such agreements, provided that such arrangements reflect
      any requirements of the Joint Sponsors, acting reasonably, to enable them
      to comply with any regulatory provisions applicable to them and to enter
      into those agreements as soon as reasonably practicable and to execute
      such documents and do such things as may be necessary or desirable to
      implement such arrangements, in each case as may be reasonably agreed
      between the Joint Sponsors and the Company.  Finalisation of the
      Option Agreement and the Subscription and Transfer Agreement and the
      mechanical and cash-flow arrangements related thereto (including those in
      support of the arrangements provided in clauses 2.3, 3.24 and 3.25 and the arrangements for the provision of
      security for the transfer of the Consideration Shares contemplated by
      clause 2.4) shall require the prior approval
      of HM Treasury (not to be unreasonably
  withheld).

              

      

       

      
        	
                3.11

              	
                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.

              

      

       

      
        	
                3.12

              	
                The Company
      undertakes to:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                make an
      application:

              

      

       

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (i)

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

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                to the Panel
      for the approval of the Circular in relation to the Whitewash Resolution;
      and

              

      

       

      
        	
                 
      

              	
                (B)

              	
                apply to the
      FSA, to the London Stock Exchange and to Euronext for Admission and to the
      FSA and to the London Stock Exchange for Preference 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, the Preference
      Prospectus, any Supplementary Prospectus and any Supplementary Preference
      Prospectus and obtaining Admission and Preference 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
      purposes of obtaining permission for the admission of the New Shares and
      the Preference 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 or Preference Admission, as the case may be.
      Subject to the fiduciary duties of the Directors, the Company will use all
      reasonable endeavours to obtain the grant of Admission (subject only to
      the allotment of the New Shares) and of Preference Admission (subject only
      to the allotment of the Preference Shares) by no later than 8.00 a.m. on
      12 December 2008 (or such later time or date as HM Treasury may agree in
      writing).

              

      

       

      
        	
                3.13

              	
                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.

              

      

       

      
        	
                3.14

              	
                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 and subject to obtaining the approval of
      the Circular by the Panel in relation to the Whitewash Resolution, 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;

              

      

       

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (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.

              

      

       

      
        	
                3.15

              	
                Subject to
      obtaining the approval of the Preference Prospectus by the FSA and subject
      to clause 5, the Company shall procure
that:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                a copy of the
      Preference Prospectus is filed with the FSA pursuant to the Prospectus
      Rules; and

              

      

       

      
        	
                 
      

              	
                (B)

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

              

      

       

      
        	
                3.16

              	
                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.

              

      

       

      
        	
                3.17

              	
                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.

              

      

       

      
        	
                3.18

              	
                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.

              

      

       

      
        	
                3.19

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

              

      

       

      
        	
                3.20

              	
                Subject
      always to the fiduciary duties of the Directors, the Company shall procure
      that the GM is duly convened and held no later than 20 November 2008 and
      that the Resolutions are proposed at
it.

              

      

       

      
        	
                3.21

              	
                Subject to
      clause 3.22, 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.

              

      

       

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

       

      
        	
                3.22

              	
                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,

              

      

       

      and the provisions
of this clause 3.22 shall apply mutatis mutandis in
respect of the Preference Prospectus (save that references to the Joint Sponsors
shall not so apply).

       

      
        	
                3.23

              	
                On the
      Posting Date, each Joint Sponsor shall deliver to the Company and to HM
      Treasury an original of the Subscription and Transfer Agreement and the
      Option Agreement, each duly executed by the relevant Joint Sponsor (if a
      party thereto).

              

      

       

      
        	
                3.24

              	
                As between
      the Company and UBS, any amounts received by UBS in respect of the New
      Shares whether from applicants for New Shares pursuant to the Open Offer,
      Placees or HM Treasury (in accordance with clause 6) shall be received by
      UBS and the Company shall have no rights to receive such amounts from UBS
      or from any acquiror of such New Shares.  Such amounts shall be
      paid by applicants for the New Shares to be issued pursuant to the Open
      Offer, by Placees and by HM Treasury, in each case as applicable, into a
      bank account approved by HM Treasury, being an account established on
      terms approved by HM Treasury, acting
  reasonably.

              

      

       

      
        	
                3.25

              	
                As between
      the Company and Merrill Lynch, any amounts received by Merrill Lynch in
      respect of the New Shares whether from applicants for New Shares pursuant
      to the Open Offer, Placees or HM Treasury (in accordance with clause 6)
      shall be received by Merrill Lynch and the Company shall have no rights to
      receive such amounts from Merrill Lynch or from any acquiror of such New
      Shares.  Such amounts shall be paid by applicants for the New
      Shares to be issued pursuant to the Open Offer, by Placees and by HM
      Treasury, in each case as applicable, into a bank account approved by HM
      Treasury, being an account established on terms approved by HM Treasury,
      acting reasonably.

              

      

       

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

       

      
        	
                3.26

              	
                For the
      avoidance of doubt, nothing in this Agreement confers or imposes on any
      Placee (including HM Treasury) any right or obligation (conditional or
      otherwise) to subscribe for or acquire any JerseyCo Preference Shares or
      JerseyCo Ordinary Shares.

              

      

       

      
        	
                3.27

              	
                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.

              

      

       

      
        	
                3.28

              	
                Immediately
      prior to Preference Admission, the Company shall deliver to HM Treasury
      those documents listed in Part IV of Schedule
2.

              

      

       

      
        	
                3.29

              	
                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, Preference 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.

              

      

       

      
        	
                3.30

              	
                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
      and the Preference Share Subscription
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, Admission and Preference Admission, as
      appropriate;

              

      

       

      
        	
                 
      

              	
                (D)

              	
                approved the
      making of the Placing and Open Offer and the allotment of Preference
      Shares under the Preference Share Subscription
  Agreement;

              

      

       

      
        	
                 
      

              	
                (E)

              	
                approved the
      making of the applications for Admission and Preference 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.

              

      

       

      
        	
                3.31

              	
                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).

              

      

       

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

       

      
        	
                3.32

              	
                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

              

      

       

      
        	
                 
      

              	
                (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

              	
                The
      consideration for the allotment and issue of the New Shares to the Open
      Offer Acceptors and the Placees pursuant to clauses 4.1, 4.2 and 6.3 shall be the transfer to the Company by the
      Joint Sponsors (or a third party to whom its obligations under the
      Subscription and Transfer Agreement are novated), in its capacity as
      subscriber for the Consideration Shares, of the Consideration Shares
      pursuant to the Subscription and Transfer Agreement. Subject to Admission
      taking place, one of the Joint Sponsors (or a third party to whom its
      obligations under the Subscription and Transfer Agreement are novated)
      shall, as shall be set out in the Subscription and Transfer Agreement and
      in its capacity as subscriber for the Consideration Shares, deliver to, or
      as may be directed by, the Company duly executed instruments of transfer
      in respect of the Consideration Shares held by it, by which the
      Consideration Shares are transferred to the Company (or such persons as
      the Company may direct).  For the avoidance of doubt, UBS and
      Merrill Lynch will be under no obligation to subscribe for Consideration
      Shares in an amount in excess of the amount received by them (a) from
      Placees (other than HM 

              

      

       

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

       

      
        Treasury); (b) from
Qualifying Shareholders pursuant to the Open Offer; and (c) from HM
Treasury.

      

       

      
        	
                4.4

              	
                Following
      delivery of the instruments of transfer in respect of the Consideration
      Shares 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 and the Preference Shares shall be allotted and issued free
      from all Adverse Interests.

              

      

       

      
        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.

              

      

       

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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;

              

      

       

      
        	
                 
      

              	
                (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.

              

      

       

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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;

              

      

       

      
        	
                 
      

              	
                (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.

       

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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.

              

      

       

      
        6.       
HM
TREASURY ACQUISITION

      

       

      
        	
                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

              

      

       

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (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 2.5 to 2.7, waived or treated as waived and to this
      Agreement not having been terminated under clause 2.8 or clause 13,
      and subject to clause 8.4, HM Treasury shall itself (or shall procure that
      its nominee shall) acquire 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 and HM Treasury shall, on the
      date of Admission, pay the relevant acquisition monies to the bank account
      referred to in clause 2.4 which 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.

              

      

       

      
        	
                6.4

              	
                As between
      the Company and the Joint Sponsors, any amounts received by the Joint
      Sponsors under clause 6.3 or from Placees or
      from Ordinary Shareholders shall be received and held by the relevant
      Joint Sponsor, and the Company shall have no right to receive such amounts
      from the Joint Sponsors or HM Treasury. Such amounts will be received by
      the Joint Sponsors and shall be applied in payment for the JerseyCo
      Preference Shares.

              

      

       

      
        	
                6.5

              	
                If HM
      Treasury (or its nominee) acquires 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

              	
                If HM
      Treasury (or its nominee) acquires New Shares pursuant to this clause 6,
      then the Company agrees that it shall, on the date of Admission, enter
      into a registration rights agreement with HM Treasury in form and
      substance reasonably satisfactory to HM Treasury and the
      Company.

              

      

       

      
        	
                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(Z),
      in the event that a Supplementary Prospectus is issued by the Company two
      or fewer Business Days prior to the
Closing

              

      

       

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

       

      
        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 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, the Open Offer or the Preference Share
      Subscription 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 Preference
      Share Subscription (including in connection with determining the terms of
      the Placing and Open Offer and the Preference Share Subscription) and not,
      in relation to the Placing and Open Offer or the Preference Share
      Subscription, 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 

              

      

       

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

       

      
        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 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.

      

       

      
        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 acquired 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
      Preference Share Subscription or any arrangements referred to in, or
      contemplated by, this Agreement, the Preference Share Subscription
      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 shall agree with the Company the amount of any fee to be
      paid by the Company to the relevant Joint Sponsor for the services to be
      performed by such Joint Sponsor under this Agreement.  The
      Company and the relevant Joint Sponsor shall consult with HM Treasury
      prior to agreeing such fee.

              

      

       

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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 matters contemplated by the Preference Share Subscription
      Agreement (including, for the avoidance of doubt, any applicable amounts
      in respect of VAT thereon, in accordance with clause 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 Preference Share Subscription Agreement, the Subscription and
      Transfer Agreement, the Option Agreement, costs and expenses of and/or
      related to JerseyCo, 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.  Any costs, charges, and expenses
      arising in connection with the Transfer and Subscription Agreement and/or
      the Option Agreement shall be dealt with in accordance with the terms of
      such agreements to the extent provided for
  therein.

              

      

       

      
        	
                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 acquisition of the New Shares in the manner contemplated by
      this Agreement or the execution, delivery, performance or enforcement of
      this Agreement, or in connection with any matters contemplated by the
      Subscription and Transfer Agreement and/or the Option 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 acquired 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 acquired
      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 if any such sum is taken into account in
      computing the taxable profits or income of either of the Joint
      

              

      

       

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

       

      
        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 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 

              

      

       

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

       

      
        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 Preference Share Subscription, Admission or Preference
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
      Preference Share Subscription:

              

      

       

      
        	
                 
      

              	
                (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 

              

      

       

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

       

      
        	 	 	
                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 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 Preference Share Subscription 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
      and the Joint Sponsors undertake to HM Treasury that they will, and the
      Company will procure that JerseyCo will, duly and punctually perform all
      of the 

              

      

       

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

       

      
        obligations imposed
on each of them respectively and JerseyCo pursuant and subject to the terms and
conditions of the Subscription and Transfer Agreement.

      

       

      
        	
                9.8

              	
                The Company
      and the Joint Sponsors will procure that, once the Subscription and
      Transfer Agreement and the Option Agreement (and any side letters,
      cashflow or security arrangements related thereto) have been executed or,
      as the case may be, agreed, no amendments or waivers to, or discharges or
      releases of, the same shall be made or given without the prior consent of
      HM Treasury, such consent not to be unreasonably
  withheld.

              

      

       

      
        	
                9.9

              	
                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
acquisition of New Shares and Preference Shares.

       

      
        	
                9.10

              	
                The Company
      undertakes to HM Treasury that it shall, promptly after Admission, apply
      the proceeds of the issue of the New Shares in such manner, in such form
      and for such regulatory capital purposes as may be agreed with, HM
      Treasury, the Bank of England and the
FSA.

              

      

       

      
        	
                9.11

              	
                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. HM Treasury agrees to discuss with the Company
      the obligations contained in paragraphs 1.3, 1.4, 1.5, 3 and 4 of Schedule
      6 and consult with the Company with a view to clarifying their
      scope.

              

      

       

      
        	
                9.12

              	
                The Company
      undertakes to HM Treasury that, until the date on which the Preference
      Shares are redeemed or repurchased in full, the Company shall
      not:

              

      

       

      
        	
                 
      

              	
                (A)

              	
                declare or
      pay any dividend or make any distribution (whether in cash or otherwise)
      on or in respect of the Ordinary Shares or set aside any sum to provide
      for payment of any such dividend or distribution (save that the foregoing
      restriction shall not apply to a capitalisation issue pursuant to which
      newly issued bonus shares are paid up out of undistributable reserves
      provided that, in the context of any such capitalisation issue, the
      Company emphasises that such a distribution would not be a cash
      distribution); or

              

      

       

      
        	
                 
      

              	
                (B)

              	
                redeem,
      purchase, cancel or otherwise acquire in any way any Ordinary Shares or
      effect a reduction of the Ordinary Share capital of the Company which
      involves a distribution to Ordinary
  Shareholders.

              

      

       

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

       

      
        	
                9.13

              	
                The Company
      undertakes to HM Treasury that it shall not issue any New Shares which are
      to be acquired 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 (except to the extent
      that such statements relate to the Preference Prospectus or any
      Supplementary Preference Prospectus) 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, 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.

              

      

       

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

       

       

      
        	
                10.5

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

              

      

       

      
        	
                 
      

              	
                (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

              

      

       

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

       

       

      
        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
      Preference Share Subscription, Admission, Preference Admission or the
      arrangements contemplated by the Issue Documents, the Preference Share
      Subscription Agreement 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 (including, without limitation, the Subscription
      and Transfer Agreement and the Option Agreement) or the Preference Share
      Subscription, 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 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 or JerseyCo 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 the Preference Share Subscription
      Agreement, 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 (including, without limitation, the Subscription and Transfer
      Agreement and the Option Agreement) or the Preference Share Subscription;
      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 

              

      

       

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       

       

      
        documents or
materials relating to the applications for Admission or Preference 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 JerseyCo 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 or Preference Admission, the
      Placing and Open Offer, or the arrangements contemplated by the Issue
      Documents and the Preference Share Subscription Agreement (including,
      without limitation, the issue and allotment of the New Shares and 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 (including, without limitation, the Subscription and
      Transfer Agreement and the Option Agreement) or the Preference Share
      Subscription; 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 Preference Share Subscription or the applications for
      Admission for the purpose of section 21 of
FSMA;

              

      

       

      
        	
                 
      

              	
                (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; or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                in connection
      with the performance of its obligations under the Subscription and
      Transfer Agreement or the Option Agreement or the arrangements
      contemplated or referred to therein (including, for the avoidance of
      doubt, any side letters, cashflow or security arrangements related
      thereto),

              

      

       

      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 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 acquire New Shares pursuant to clause 6 or Preference Shares pursuant to the Preference
Share Subscription Agreement, save to the extent such 

       

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

       

      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 or under the Preference Share Subscription Agreement.  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.

              

      

       

      
        	
                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 

              

      

       

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       

       

      
        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 Preference
      Share Subscription, Admission, Preference 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, the Preference Share
      Subscription, 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 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 

              

      

       

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

       

       

      
        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 the Company on the one hand and HM Treasury 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 amount paid up on the Consideration
Shares by the Joint Sponsors 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

              

      

       

      
        	
                 
      

              	
                (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
      

              

      

       

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

       

       

      
        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 of any representation, warranty or undertaking in or in terms
      of the Preference Share Subscription Agreement;
  or

              

      

       

      
        	
                 
      

              	
                (D)

              	
                there has
      been a breach by the Company or the Joint Sponsors or any other party
      thereto of any obligations under the Subscription and Transfer Agreement
      or Option Agreement; or

              

      

       

      
        	
                 
      

              	
                (E)

              	
                a Specified
      Event has occurred; or

              

      

       

      
        	
                 
      

              	
                (F)

              	
                the Company’s
      application to the UK Listing Authority for admission of the New Shares or
      the Preference Shares to the Official List and/or the Company’s
      application to the London Stock Exchange for admission to trading of the
      New Shares or the Preference 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 the Preference Share Subscription, Admission or Preference 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 

              

      

       

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

       

       

      
        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 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 or Supplementary Preference 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 and by the Preference Share Subscription 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);

              

      

       

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (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
      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, 9.11, 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, the Preference
      Share Subscription Agreement or any other agreements relating to the
      Placing and Open Offer or Preference Share Subscription, or in connection
      with the Placing and Open Offer or Preference Share Subscription itself
      except (otherwise than in connection with
the

              

      

       

       

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

       

       

      
        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 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, 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, 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 Preference Subscription 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) and the Preference
      Share Subscription and of obtaining Admission and Preference 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.

              

      

       

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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 Preference Share Subscription Agreement (in
      the case of the Company and HM Treasury, only) and 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.  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 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.

              

      

       

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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
  

              

      

       

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

       

       

      
        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 acquire 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

       

       

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

       

      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 

              

      

       

       

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

       

       

      
        (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.

              

      

       

       

       

       

      
        
          
          

        

        
          60

          
            

          

        

        
          
          

        

      

      
 

       

      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 22,900,763,359 Ordinary Shares of 25 pence each (the
"Placing and Open Offer")

       

      Further to the
placing and open offer agreement between us effective as of 13 October 2008 (the
"Agreement"), we confirm that:

       

      
        	
                (a)

              	
                the FSA has
      agreed to admit the New Shares and the Preference 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 and the Preference 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

              

      

       

       

      
        
          
          

        

        
          61

          
            

          

        

        
          
          

        

      

       

       

      
        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 2.5 of the Agreement or by the Company pursuant
      to clause 2.6 of the Agreement or which is
      treated as waived pursuant to clause 2.7 of
      the Agreement) the conditions set out in clause 2.1 of the Agreement (other than conditions 2.1(BB) and 2.1(CC)) 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

       

       

      
        
          
          

        

        
          62

          
            

          

        

        
          
          

        

      

       

       

      Part
B

       

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

      immediately
before the issue of any Supplementary Prospectus or

      Supplementary
Preference 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 22,900,763,359 ordinary shares of 25 pence each (the
"Placing and Open Offer")

       

      Further to the
placing and open offer agreement between us effective as of 13 October 2008 (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.

              

      

       

       

      
        
          
          

        

        
          63

          
            

          

        

        
          
          

        

      

       

       

      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

       

       

      
        
          
          

        

        
          64

          
            

          

        

        
          
          

        

      

       

       

      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.

       

       

       

      
        
          
          

        

        
          65

          
            

          

        

        
          
          

        

      

       

       

      Part
II

      Documents
to be delivered on the Posting Date under clause 3.17

       

      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 3.17 and, where reasonably requested, the date of
publication of each Supplementary Prospectus:

       

      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;

              

      

       

      
        	
                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, 

              

      

       

       

      
        
          
          

        

        
          66

          
            

          

        

        
          
          

        

      

       

       

      
        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;

              

      

       

      
        	
                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 2007;

              

      

       

      
        	
                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):

              

      

       

       

      
        
          
          

        

        
          67

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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.

              	
                original
      copies of the Subscription and Transfer Agreement and the Option Agreement
      duly executed by the Company and
JerseyCo;

              

      

       

      
        	
                24.

              	
                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;

              

      

       

      
        	
                25.

              	
                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;

              

      

       

      
        	
                26.

              	
                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;

              

      

       

      
        	
                27.

              	
                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;

              

      

       

      
        	
                28.

              	
                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;

              

      

       

      
        	
                29.

              	
                a certified
      copy of the resolution of the board of directors of JerseyCo approving and
      authorising the execution of the Subscription and Transfer Agreements and
      the Option Agreement;

              

      

       

      
        	
                30.

              	
                a letter from
      the Auditors addressed to the Company in a form acceptable to HM Treasury
      and the Joint Sponsors, acting reasonably, confirming the effect on the
      distributable reserves of the Company of implementing the Placing and Open
      Offer, such letter to expressly state that a copy of such letter may be
      provided to HM Treasury and to the Joint Sponsors on a no reliance
      basis;

              

      

       

      
        	
                31.

              	
                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;

              

      

       

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

       

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

       

       

      
        
          
          

        

        
          68

          
            

          

        

        
          
          

        

      

       

       

      
        	
                34.

              	
                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;

              

      

       

      
        	
                35.

              	
                a written
      Jersey opinion, in a form acceptable to the Joint Sponsors, acting
      reasonably, from Jersey counsel to the Company to the extent reasonably
      required;

              

      

       

      
        	
                36.

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

              

      

       

       

       

       

      
        
          
          

        

        
          69

          
            

          

        

        
          
          

        

      

       

       

      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):

       

      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) allotting the Preference Shares in
      terms of the Preference Share Subscription Agreement (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, from Dundas & Wilson CS
      LLP and from Jersey counsel to the Company, 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.

       

       

       

      
        
          
          

        

        
          70

          
            

          

        

        
          
          

        

      

       

       

      PART
IV

      Documents
to be delivered on Preference Admission

       

      The following
documents are to be delivered by the Company to HM Treasury not later than 5.00
pm on the Dealing Day immediately preceding the proposed date of Preference
Admission:

       

      
        	
                1

              	
                a certified
      copy of the signed application for admission to the Official List of the
      Preference Shares (certified by a Director or the Secretary of the
      Company);

              

      

       

      
        	
                2

              	
                a certified
      copy of the signed applications for admission to trading of the Preference
      Shares issued by the London Stock Exchange (certified by a Director or the
      Secretary of the Company);

              

      

       

      
        	
                3

              	
                a certified
      copy of the CREST enablement letter confirming that the conditions for
      admission of the Preference Shares to CREST are satisfied (certified by a
      Director or the Secretary of the
Company);

              

      

       

      
        	
                4

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

              

      

       

      
        	
                5

              	
                a copy of the
      Preference Prospectus and any Supplementary Preference Prospectus signed
      by each of the Directors (or by their agents or
  attorneys);

              

      

       

      
        	
                6

              	
                two original
      letters in a form acceptable to HM Treasury, acting reasonably, signed by
      each of the Directors authorising the publication of the Preference
      Prospectus, and any Supplementary Preference
  Prospectus;

              

      

       

      
        	
                7

              	
                the due
      diligence questionnaire prepared in connection with the Preference
      Prospectus;

              

      

       

      
        	
                8

              	
                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 Preference Prospectus (and if the said resolution is of such a
      committee, a copy of the resolution of the Board of Directors appointing
      such committee) (in each case, certified by a Director or the Secretary of
      the Company);

              

      

       

      
        	
                9

              	
                a certified
      copy of any ordinary or special resolutions of the Company in general
      meeting authorising the Directors under section 80 of the Companies Act to
      allot the Preference Shares (certified by a Director or the Secretary of
      the Company);

              

      

       

      
        	
                10

              	
                a certified
      copy of each of the documents stated in the Preference Prospectus as being
      available for inspection (certified by a Director or the Secretary of the
      Company);

              

      

       

      
        	
                11

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

              

      

       

      
        	
                12.

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

              

      

       

       

       

       

      
        
          
          

        

        
          71

          
            

          

        

        
          
          

        

      

       

       

      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 and JerseyCo 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
      acquisition of New Shares or subscription for the Preference Shares by HM
      Treasury, Ordinary Shareholders or Placees, Admission, Preference
      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) and the Preference Share Subscription
      Agreement, to make the Placing and Open Offer, to allot and issue the New
      Shares in certificated and uncertificated form and the Preference Shares
      in certificated form, 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 and Preference 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,
      the Subscription and Transfer Agreement, the Option Agreement or
      the

              

      

       

       

      
        
          
          

        

        
          72

          
            

          

        

        
          
          

        

      

       

       

      
        Preference Share
Subscription 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.

      

       

      
        	
                1.6

              	
                The allotment
      and issue of the New Shares and the Preference Shares, the Placing and
      Open Offer, 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 allotment and issue 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(L) 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
      Preference Shares will, upon allotment be free from all Adverse Interests
      and will have the rights and be subject to the restrictions as set out in
      Article 4(C) of the Company’s articles of association and in Schedule 1 of
      the Preference Share Subscription
Agreement.

              

      

       

      
        	
                1.10

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

              

      

       

      
        	
                1.11

              	
                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.

              

      

       

      
        	
                1.12

              	
                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).

              

      

       

      
        	
                1.13

              	
                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 

              

      

       

       

      
        
          
          

        

        
          73

          
            

          

        

        
          
          

        

      

       

       

      
        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 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.

              

      

       

       

      
        
          
          

        

        
          74

          
            

          

        

        
          
          

        

      

       

       

      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

              

      

       

      
        	
                 
      

              	
                (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

              

      

       

       

      
        
          
          

        

        
          75

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (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
acquisition of New Shares or subscription for Preference Shares by HM Treasury,
Ordinary Shareholders or Placees, Admission, Preference Admission or
post-Admission dealings in the Ordinary Shares.

       

      
        	
                4.2

              	
                No event has
      occurred nor have any circumstances arisen (and the making and completion
      of the Placing and Open Offer and the allotment and issue of the New
      Shares and the Preference 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 acquisition of for New Shares or subscription for
      Preference Shares by HM Treasury, Ordinary Shareholders or Placees,
      Admission, Preference 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 acquisition of New Shares or subscription for Preference
      Shares by HM Treasury, Ordinary Shareholders or Placees, Admission,
      Preference 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 acquisition of New Shares
      or subscription for Preference Shares by HM Treasury, Ordinary
      Shareholders or Placees, Admission, Preference Admission or post-Admission
      dealing in the Ordinary Shares.

              

      

       

       

      
        
          
          

        

        
          76

          
            

          

        

        
          
          

        

      

       

       

      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 Preference Shares, by the Company in accordance with the
      terms of this Agreement or, as the case may be, the Preference Share
      Subscription 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 or the Preference
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 acquisition of New Shares or
      subscription for Preference Shares by HM Treasury, Ordinary Shareholders
      or Placees, Admission, Preference 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.

              

      

       

      
        	
                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 acquisition of New Shares or subscription
      for Preference Shares by HM Treasury, Ordinary Shareholders or Placees,
      Admission, Preference 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 acquisition of New Shares or subscription for
      Preference Shares by HM Treasury Ordinary Shareholders or Placees,
      Admission, Preference 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 acquisition of New Shares or subscription for
      Preference Shares by HM Treasury, Ordinary Shareholders or Placees,
      Admission, Preference 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

       

       

      
        
          
          

        

        
          77

          
            

          

        

        
          
          

        

      

       

       

      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.

       

      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 acquisition of New Shares or subscription for Preference
      Shares by HM Treasury, Ordinary Shareholders or Placees, Admission,
      Preference 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 acquisition of New Shares or
      subscription for Preference Shares by HM Treasury, Ordinary Shareholders
      or Placees, Admission, Preference 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
      

              

      

       

       

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

       

       

      
        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”) 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.

              

      

       

       

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

      

       

       

      
        	
                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.

              

      

       

      
        	
                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.

              

      

       

      
        	
                12.

              	
                Panel
      Confirmation

              

      

       

      The Panel has
confirmed that, subject to the independent shareholders of the Company voting in
favour of the Whitewash Resolution, the Panel will disapply the requirement to
make a general offer under the terms of Rule 9 of the City Code on Takeovers and
Mergers which would otherwise be required by the acquisition by HM Treasury (or
its nominee) of the New Shares.

       

       

       

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

       

       

      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 15 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, 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 or Preference 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) 

              

      

       

       

      
        
          
          

        

        
          81

          
            

          

        

        
          
          

        

      

       

       

      
        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
    

              

      

       

       

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

       

       

      
        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 acquisition of New Shares or
      subscription for Preference Shares by HM Treasury, Ordinary Shareholders
      or Placees, Admission, Preference Admission or post-Admission dealing in
      the Ordinary Shares.

              

      

       

      
        	
                5.2

              	
                This
      Agreement, the Preference Share Subscription Agreement and the other
      agreements to be entered into by the Company in connection with Admission,
      Preference Admission and the Placing and Open Offer and the allotment and
      issue of the Preference Shares 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 (i) the Preference Share Subscription Agreement and (ii)
      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 acquisition of New Shares
      or subscription for Preference Shares by HM Treasury, Ordinary
      Shareholders or Placees, Admission, Preference 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

              

      

       

       

      
        
          
          

        

        
          83

          
            

          

        

        
          
          

        

      

       

       

      
        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.

      

       

      6.         Position
since Accounts Date

       

      
        	
                6.1

              	
                Since the
      Accounts Date and save as disclosed in the Interim Accounts, 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
      acquisition of New Shares or subscription for Preference Shares by HM
      Treasury, Ordinary Shareholders or Placees, Admission, Preference
      Admission or post-Admission dealings in the Ordinary
    Shares;

              

      

       

      
        	
                 
      

              	
                (C)

              	
                save for the
      Preference Share Subscription Agreement and 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 acquisition of New Shares or subscription for
      Preference Shares by HM Treasury, Ordinary Shareholders or Placees,
      Admission, Preference 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 acquisition of New Shares or
      subscription for Preference Shares by HM Treasury, Ordinary Shareholders
      or Placees, Admission, Preference 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 in the Preference Share
  

              

      

       

       

      
        
          
          

        

        
          84

          
            

          

        

        
          
          

        

      

       

       

      
        Subscription
Agreement) 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 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 acquisition of New Shares or subscription for Preference Shares by HM
Treasury, Ordinary Shareholders or Placees, Admission, Preference 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 acquisition of New Shares or subscription for
      Preference Shares by HM Treasury, Ordinary Shareholders or Placees,
      Admission, Preference Admission or post-Admission dealing in the Ordinary
      Shares.

              

      

       

      
        	
                6.2

              	
                Since the
      Accounts Date, 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 acquisition of New Shares or subscription for
      Preference Shares by HM Treasury, Ordinary Shareholders or Placees,
      Admission, Preference 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 acquisition of New Shares or
      subscription for Preference Shares by HM Treasury, Ordinary Shareholders
      or Placees, Admission, Preference 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 

              

      

       

       

      
        
          
          

        

        
          85

          
            

          

        

        
          
          

        

      

       

       

      
        foregoing cases is
still in force and 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 acquisition of New Shares or subscription for Preference Shares by HM
Treasury, Ordinary Shareholders or Placees, Admission, Preference 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, the Preference Share Subscription
      Agreement, 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 or
      the Preference Shares by HM Treasury, 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 or the Preference Share Subscription
  Agreement.

              

      

       

      
        	
                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 acquisition of New Shares or subscription for
      Preference Shares by HM Treasury, Ordinary Shareholders or Placees,
      Admission, Preference 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
      acquisition of New Shares or

              

      

       

       

      
        
          
          

        

        
          86

          
            

          

        

        
          
          

        

      

       

       

      
        subscription for
Preference Shares by HM Treasury, Ordinary Shareholders or Placees, Admission,
Preference Admission or post-Admission dealing in the Ordinary
Shares.

      

       

      
        	
                8.5

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

              

      

       

      
        	
                 
      

              	
                (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 acquisition of New Shares or subscription for Preference
Shares by HM Treasury, Ordinary Shareholders or Placees, Admission, Preference
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
      required by the Preference Share Subscription Agreement and save as
      otherwise would not (singly or in the aggregate) be material in the
      context of the Placing and Open Offer, any acquisition of New Shares or
      subscription for Preference Shares by HM Treasury, Ordinary Shareholders
      or Placees, Admission, Preference 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
      

              

      

       

       

      
        
          
          

        

        
          87

          
            

          

        

        
          
          

        

      

       

       

      
        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.

      

       

      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 acquisition of New Shares or
subscription for Preference Shares by HM
Treasury, Ordinary Shareholders or Placees, Admission, Preference 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 for the
Preference Share Subscription Agreement and save otherwise as would not (singly
or in the aggregate) be material in the context of the Placing and Open Offer,
any acquisition of New Shares or
subscription for Preference Shares by HM
Treasury, Ordinary Shareholders or Placees, Admission, Preference 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 acquisition
      of New Shares or subscription for Preference Shares by HM Treasury,
      Ordinary Shareholders or Placees, Admission, Preference Admission or
      post-Admission dealing in the Ordinary
Shares.

              

      

       

      
        	
                13.2

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

              

      

       

       

      
        
          
          

        

        
          88

          
            

          

        

        
          
          

        

      

       

       

      
        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.

      

       

      
        	
                14.

              	
                Cash
      box

              

      

       

      
        	
                14.1

              	
                JerseyCo has
      not undertaken any obligations or liabilities except pursuant to or as
      contemplated by the Subscription and Transfer Agreement and the Option
      Agreement.

              

      

       

      
        	
                14.2

              	
                JerseyCo is
      and will remain resident in the United Kingdom and nowhere else for United
      Kingdom tax purposes.

              

      

       

      
        	
                14.3

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

              

      

       

      
        	
                14.4

              	
                Neither the
      Company nor JerseyCo has caused or permitted any issue or transfer of
      shares or debentures in JerseyCo which is unlawful for the purposes of
      Section 765 of the Income and Corporation Taxes Act
  1988.

              

      

       

      15.       Competition

       

      
        	
                15.1

              	
                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 acquisition
      of New Shares or subscription for Preference Shares by HM Treasury,
      Ordinary Shareholders or Placees, Admission, Preference Admission or
      post-Admission dealing in the Ordinary
Shares.

              

      

       

      
        	
                15.2

              	
                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 acquisition of New Shares or subscription for Preference
      Shares by HM Treasury, Ordinary Shareholders or Placees, Admission,
      Preference Admission or post-Admission dealing in the Ordinary
      Shares.

              

      

       

       

       

       

      
        
          
          

        

        
          89

          
            

          

        

        
          
          

        

      

      
 

      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 effective as of 13 October 2008 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”

              

      

       

      
         

        
          
            
            

          

          
            90

            
              

            

          

          
            
            

          

        

      

       

       

      
        	 	 	shall be
      construed accordingly.

      

       

      
        	
                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

              

      

       

       

      
        
          
          

        

        
          91

          
            

          

        

        
          
          

        

      

       

       

      
        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
      

              

      

       

       

      
        
          
          

        

        
          92

          
            

          

        

        
          
          

        

      

       

       

      
        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 

       

       

      
        
          
          

        

        
          93

          
            

          

        

        
          
          

        

      

       

       

      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]

       

       

       

      
        
          
          

        

        
          94

          
            

          

        

        
          
          

        

      

      
 

      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 acquisition of 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”).
      

              

      

       

       

      
        
          
          

        

        
          95

          
            

          

        

        
          
          

        

      

       

       

      
        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 acquire 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 acquire 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, 

              

      

       

       

      
        
          
          

        

        
          96

          
            

          

        

        
          
          

        

      

       

       

      
        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 

              

      

       

       

      
        
          
          

        

        
          97

          
            

          

        

        
          
          

        

      

       

       

      
        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]

       

       

       

      
        
          
          

        

        
          98

          
            

          

        

        
          
          

        

      

      
 

       

      SCHEDULE
6

      CONDITIONS
TERM SHEET

       

      1.        Remuneration

       

      1.1       Remuneration

       

      
        	
                1.2

              	
                No Board
      Director bonuses for 2008 – where part of contractual arrangement Board
      Directors relinquish these voluntarily. Bonuses in respect of 2009 for
      existing directors will be confined to restricted stock and based on the
      target of rewarding long term value creation taking account of
      risk.

              

      

       

      
        	
                1.3

              	
                RBS will
      comply with the ABI industry best practice code on remuneration.
      Remuneration will seek to reward long term value creation and not
      encourage excessive risk taking. Short term indicators will be taken into
      account only where fully consistent with long term value creation and not
      encouraging excessive risk taking. Reward for board members will also take
      into account relative compensation packages and perceived fairness in the
      current economic climate and the restructuring of the
  bank.

              

      

       

      
        	
                1.4

              	
                No rewards
      for failure; where a Board Member loses the confidence of the Board, they
      should be able to be dismissed at a cost that is reasonable and perceived
      as fair.

              

      

       

      
        	
                1.5

              	
                Commitment to
      FSA Code on risk based remuneration

              

      

       

      2.         Corporate
Governance

       

      
        	
                2.1

              	
                HMT will work
      with the board on its appointment of 3 new independent directors
      immediately following Admission. Thereafter, consistent with best
      practice, the Company will engage constructively with HM Treasury in its
      role as a shareholder.

              

      

       

      2.2       To
show firm and unequivocal statement of intent to deliver revised
strategy

       

      3.         Lending

       

      3.1       Mortgages

       

      
        	
                 
      

              	
                (A)

              	
                A commitment
      to immediately restore and maintain the availability and active marketing
      of competitively priced mortgage lending through to the end of 2011 at a
      level at least equivalent to that of 2007 (provided that the Company shall
      not be required to engage in uncommercial
  practices).

              

      

       

      
        	
                 
      

              	
                (B)

              	
                General
      commitment to participate (until at least the end of 2011) in industry
      initiatives and to comply with government
  codes/guidance.

              

      

       

      
        	
                 
      

              	
                (C)

              	
                Make
      available, until the end of 2009, a sum to be agreed for the establishment
      and maintenance of shared equity/
      shared ownership schemes to help people struggling with mortgage payments
      to stay in their homes, either through individual bank schemes or paid
      into a central fund run by
industry.

              

      

       

       

      
        
          
          

        

        
          99

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (D)

              	
                Make
      available, until the end of 2009, a sum to be agreed to support ongoing
      expansion of financial capability
initiatives.

              

      

       

      
        3.2      
SMEs

      

       

      
        	
                 
      

              	
                (A)

              	
                A commitment
      to immediately restore and maintain availability and active marketing of
      competitively priced lending to SMEs at a level at least equivalent to
      that of 2007 until the end of 2011 (provided that the Company shall not be
      required to engage in uncommercial
practices).

              

      

       

      
        	
                 
      

              	
                (B)

              	
                Publish an
      annual report, for each year through to 2011,
  on:

              

      

       

      (i)     
   overall level of lending to SMEs;

       

      
        	
                 
      

              	
                (ii)

              	
                overdraft
      facilities and loans made available to SMEs: volumes, amounts and interest
      rates and other charges;

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                amount of
      foreclosures of debt finance made available to
  SMEs;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                amount of
      lending through the Small Firms Loan Guarantee Scheme;
  and

              

      

       

      
        	
                 
      

              	
                (v)

              	
                the
      application and use of an EIB global loan facility to secure additional
      liquidity specifically for SME
lending.

              

      

       

      
        	
                3.3

              	
                Will
      establish transparent public reporting on both SME lending and Mortgages
      as agreed with HMG

              

      

       

      
        	
                3.4

              	
                The
      activities of the Company will be limited to the higher of: (i) the annual
      growth rate of growth of UK nominal GDP in the preceding year; and (ii)
      the average historical growth of the balance sheets in the UK banking
      sector during the period 1987-2007, unless there is evidence that the
      thresholds are exceeded for reasons unrelated to the provision of the aid
      referred to in the EC Commission's decision dated 13 October 2008 (the
      "Decision").

              

      

       

      
        	
                3.5

              	
                Further, in
      conjunction with HM Treasury, the Company will, within six months of the
      earlier of the Recognition Date (pursuant to rule 11.1 of the rules of the
      2008 Credit Guarantee Scheme) and the listing date, prepare, to the extent
      required by the Decision, a restructuring plan in a form suitable for
      notification to the EC Commission in accordance with the Decision and, at
      the request of HM Government, furnish all information reasonably necessary
      for complying with the terms of that
Decision.

              

      

       

      4.         Application

       

      The constraints in
this Schedule shall apply until HM Government or the Commission determines (or a
court of competent jurisdiction finally determines) that the Company is no
longer in receipt of the aid which is the subject of the Decision. If the
Company does not utilise (or ceases to utilise) the wholesale funding guarantee
being made available by HM Government and which is referred to in the Decision
and either: (i) this Agreement is terminated but, by virtue of clause 2.10(C),
this Schedule remains in full 

       

       

      
        
          
          

        

        
          100

          
            

          

        

        
          
          

        

      

       

       

      force and effect;
or (ii) this Agreement is not terminated and New Shares are issued to HM
Treasury (and/or Preference Shares are issued to HM Treasury pursuant to and in
accordance with the Preference Share Subscription Agreement) but HM Treasury has
substantively reduced its holding of Ordinary Shares and/or Preference Shares,
HM Treasury shall consult with the Company with a view to making submissions to
the Commission that the constraint in this paragraph (or this Schedule as a
whole) be disapplied or to obtain clarity as to when the constraint in this
paragraph (or the Schedule as a whole) will cease to apply.

       

       

       

       

      
 

      
        
          
          

        

        
          101

          
            

          

        

        
          
          

        

      

       

       

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

       

      

       

      
        	
                SIGNED by and
      for and on behalf of

                THE
      ROYAL BANK OF SCOTLAND 
GROUP PLC

                 

                Date: 4
      November 2008

              	
                ) /s/
      [illegible]

                )

                )

              	 
    

      

      

       

      
        	
                SIGNED by and
      for and on behalf of

                UBS
      LIMITED

                 

                Date:

              	
                ) /s/
      [illegible]

                ) /s/ David
      Seal

                 Associate
      Director

              	 
    

      

      

       

      
        	
                SIGNED by and
      for and on behalf of

                MERRILL
      LYNCH INTERNATIONAL

                 

                Date:

              	
                

                  ) /s/
      [illegible]

                

                )

                 

              	 
    

      

      

       

      
        	
                SIGNED by two
      of

                THE
      COMMISSIONERS OF HER 
MAJESTY’S TREASURY

                in the
      presence of:

                 

                Date:

              	
                ) /s/
      [illegible]

                )
      /s/ [illegible]

                )

                )

              	 
    

      

       

       

       

       

    

    102Exhibit 4.16

       

      DATED
AS OF 13 OCTOBER 2008

       

       

       

      

       

      THE
COMMISSIONERS OF HER MAJESTY’S TREASURY

       

      

       

      and

       

      

       

      THE
ROYAL BANK OF SCOTLAND GROUP PLC

       

       

       

        
          

        

      

       

      PREFERENCE
SHARE SUBSCRIPTION AGREEMENT

       

      
        
 

       

      Slaughter and
May

      One Bunhill
Row

      London

      EC1Y
8YY

      (NV/JAYP/ACZE)

       

      CE082840083

       

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

    
       

      

      THIS
IS AGREEMENT IS EFFECTIVE AS OF 13 OCTOBER 2008 BETWEEN:

       

      
        	
                (1)

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

              

      

       

      AND

       

      
        	
                (2)

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

              

      

       

      WHEREAS:

       

      HMT has agreed to
subscribe for, and RBS has agreed to allot and issue to HMT, the Preference
Shares (as defined in this Agreement) in each case on the terms and subject to
the conditions set out in this Agreement.

       

      NOW IT IS HEREBY
AGREED AS FOLLOWS:

       

      
        	
                1.

              	
                Interpretation

              

      

       

      
        	
                1.1  

              	
                In this
      Agreement:

              

      

       

      
        	
                “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;

              
	 	 	 
	
                “FSA”

              	 	
                has the
      meaning given to it in the Placing Agreement;

              
	 	 	 
	
                “Group”

              	 	
                has the
      meaning given to it in the Placing Agreement;

              
	 	 	 
	
                “Placing
      Agreement”

              	 	
                means the
      agreement effective as of 13 October 2008 entered into by HMT, RBS, UBS
      Limited and Merrill Lynch International relating to the placing and open
      offer of a number of RBS’s ordinary shares;

              
	 	 	 
	
                “Preference
      Admission”

              	 	
                has the
      meaning given to it in the Placing Agreement;

              
	 	 	 
	
                “Preference
      Prospectus”

              	 	
                has the
      meaning given to it in the Placing Agreement;

              
	 	 	 
	
                “Preference
      Shares”

              	 	
                preference
      shares issued by RBS with an aggregate liquidation preference of
      £5,000,000,000, having the rights and subject to the restrictions set out
      in Article 4(C) of RBS' Articles of Association as supplemented by the
      terms set out in Schedule 1 to this Agreement;

              
	 	 	 
	
                “Proceedings”

              	 	
                means any
      proceeding, suit or action arising out of or in connection with this
      Agreement;

              
	 	 	 

      

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        	
                “Prospectus
      Posting Date”

              	 	
                means the
      date on which RBS publishes the Preference Prospectus;

              
	 	 	 
	
                “RBS
      Account”

              	 	
                means the
      bank account of RBS, the details of which shall be notified to HMT by RBS
      at least five Business Days prior to the Subscription
  Date;

              
	 	 	 
	
                “Subscription
      Amount”

              	 	
                means
      £5,000,000,000;

              
	 	 	 
	
                “Subscription
      Date”

              	 	
                means the
      date on which Preference Admission occurs;

              
	 	 	 
	
                “Supplementary
      Preference Prospectus”

              	 	
                has the
      meaning given to it in the Placing Agreement; and

              
	 	 	 
	
                “Warranties”

              	 	
                means the
      representations, warranties and undertakings set out in Schedule 3 of the Placing
      Agreement.

              
	 	 	 

      

      
        	
                1.2  

              	
                In this
      Agreement, unless otherwise
specified:

              

      

       

      
        
          	
                  
                  

                	
                  (A)

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

                

        

      

       

      
        
          	
                  
                  

                	
                  (B)

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

                

        

      

       

      
        
          	
                  
                  

                	
                  (C)

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

                

        

      

       

      
        	
                
                

              	
                
                  (D)

                

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

                

              

      

       

      
        	
                
                

              	
                
                  (E)

                

              	
                
                  Schedule 1
      shall take effect as if set out in this Agreement and references to this
      Agreement shall be deemed to include Schedule
  1.

                

              

      

       

      
        	
                1.3  

              	
                The parties
      agree that applications will be made to the UK Listing Authority for the
      Preference Shares to be admitted to the Official List of the UK Listing
      Authority and to the London Stock Exchange for the Preference Shares to be
      admitted to trading on the London Stock Exchange’s Regulated Market, and
      that for the purposes of such admission to trading the Preference Shares
      will be cleared through CREST (as defined in the Placing
      Agreement).

              

      

       

      
        	
                2.  

              	
                Agreement
      to Subscribe for Preference Shares

              

      

       

      
        	
                2.1  

              	
                Upon the
      terms and subject to the condition set out in Clause 3 of this Agreement
      and in reliance on the Warranties, HMT agrees to subscribe for, and RBS
      agrees to allot and issue to HMT, the Preference
  Shares.

              

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        	
                2.2  

              	
                In
      consideration of the agreement to allot and issue the Preference Shares,
      and subject to Clause 3, HMT hereby undertakes to pay to RBS, or to
      procure the payment to RBS, of an amount equal to the Subscription
      Amount.

              

      

       

      
        	
                3.  

              	
                Condition

              

      

       

      The obligations of
HMT set out in Clause 2 to subscribe for the Preference Shares and to pay the
Subscription Amount shall be conditional upon the Placing Agreement becoming
wholly unconditional in accordance with its terms and this Agreement not having
been terminated in accordance with Clause 7.

       

      
        	
                4.  

              	
                Warranties

              

      

       

      
        	
                4.1  

              	
                RBS hereby
      represents, warrants and undertakes to HMT
that:

              

      

       

      
        
          
            	
                    
                    

                  	
                    (A)

                  	
                    each Warranty
      in Part I of Schedule 3 of the Placing Agreement is true and accurate and
      not misleading as at the date of this Agreement;
  and

                  

          

        

      

       

      
        	
                
                

              	
                
                  (B)

                

              	
                
                  each Warranty
      in Parts I and II of Schedule 3 of the Placing Agreement will be true and
      accurate and not misleading on the Prospectus Posting Date, at such time
      as a Supplementary Preference Prospectus shall be issued in accordance
      with the Placing Agreement (whether before or after Preference Admission),
      and immediately prior to Preference 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
      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, announcement or event which is expressed in the future tense
      shall be regarded as being expressed in the present
      tense.

                

              

      

       

      
        	
                4.2  

              	
                Each of the
      Warranties shall be construed as a separate and independent warranty and
      (except where expressly provided to the contrary in the Placing Agreement)
      shall not be limited or restricted by reference to, or inference from, the
      terms of any other Warranty.

              

      

       

      
        	
                5.  

              	
                Subscription

              

      

       

      
        	
                5.1  

              	
                On the
      Subscription Date, RBS shall:

              

      

       

      
        
          	
                  
                  

                	
                  (A)

                	
                  allot and
      issue the Preference Shares to HMT credited as fully
  paid;

                

        

      

       

      
        	
                
                

              	
                
                  (B)

                

              	
                
                  enter HMT, or
      its nominee, in its register of members as a shareholder of RBS in respect
      of the Preference Shares; and

                

              

      

       

      
        	
                
                

              	
                (C)

              	
                deliver share
      certificate(s) to HMT or its nominee in respect of the Preference Shares
      if applicable or take such other action as is necessary to vest ownership
      of the Preference Shares in HMT or its
nominee.

              

      

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

      
        	
                5.2  

              	
                On the
      Subscription Date, HMT shall pay an amount equal to the Subscription
      Amount by CHAPS transfer for same day value to the RBS
      Account.

              

      

       

      
        	
                5.3  

              	
                RBS shall use
      reasonable endeavours to ensure that the Preference Shares remain admitted
      to the Official List of the UK Listing Authority and admitted to trading
      on the London Stock Exchange’s Regulated Market for so long as HMT holds
      any Preference Shares.

              

      

       

      
        	
                6.  

              	
                Use
      of Subscription Proceeds

              

      

       

      RBS agrees that it
shall, promptly after the Subscription Date, apply the proceeds of the issue of
the Preference Shares in such manner, in such form and for such regulatory
capital purpose as may be agreed with HM Treasury, the Bank of England and the
FSA.

       

      
        	
                7.  

              	
                Termination

              

      

       

      In
the event of the Placing Agreement terminating in accordance with its terms,
this Agreement shall terminate and have no further force or effect and no party
shall have any claim against any other under this Agreement except: (i) in
respect of any accrued rights arising from any prior breach of this Agreement;
and (ii) in respect of this clause 7 and clauses 1.1, 1.2, 8, 9 and 11 to 18
(inclusive), which shall remain in full force and effect notwithstanding such
termination.

       

      
        	
                8.  

              	
                 Assignment
      and Novation

              

      

       

      
        	
                8.1  

              	
                Subject to
      clause 8.2, HMT shall be permitted to novate its rights and obligations
      under this Agreement to any entity which is wholly-owned directly or
      indirectly by HMT (a Wholly Owned Entity) and
      RBS 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 upon substantially the same terms as are
      contained in the pro forma novation agreement set out in Schedule 2 to
      this Agreement.

              

      

       

      
        	
                8.2  

              	
                In the event
      that HMT novates its rights and obligations under this Agreement pursuant
      to clause 8.1, HMT shall procure that, immediately prior to any such
      Wholly Owned Entity ceasing to be wholly-owned directly or indirectly by
      HMT, such rights and obligations under this Agreement shall be novated to
      HMT or any other Wholly Owned
Entity.

              

      

       

      
        	
                8.3  

              	
                Subject to
      Clause 8.1, neither HMT nor RBS 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 the other
party.

              

      

       

      
        	
                9.  

              	
                Costs
      and Expenses

              

      

       

      RBS shall bear the
costs and expenses of both parties in relation to the negotiation of this
Agreement and the subscription for, and allotment and issue of, the Preference
Shares (including, without limitation, any stamp duty or stamp duty reserve
tax).

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                10.  

              	
                US
      Securities Laws

              

      

       

      Each of HMT and RBS
acknowledge and agree that the Preference Shares have not been and will not be
registered under the US Securities Act of 1933 (the “Securities Act”) and may
not be offered or sold except in accordance with Rule 903 of Regulation S under
the Securities Act or pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act.

       

      
        	
                11.  

              	
                Entire
      Agreement

              

      

       

      
        	
                11.1  

              	
                This
      Agreement and the Placing Agreement constitute the whole and only
      agreement and understanding between the parties relating to the subject
      matter of this Agreement.  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 subscription 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.

              

      

       

      
        	
                11.2  

              	
                This
      Agreement may be varied only by agreement in writing signed by each of the
      parties.

              

      

       

      
        	
                12.  

              	
                Notices

              

      

       

      
        	
                12.1  

              	
                A notice
      under this Agreement shall be effective only if it is in
      writing.  Faxes are
permitted.

              

      

       

      
        	
                12.2  

              	
                Notices under
      this Agreement shall be sent to a party to this Agreement at its address
      or number and for the attention of the party set out
  below:

              

      

       

      
        	
                Party

              	 	
                Address

              	 	
                Facsimile
      no.

              
	 	 	 	 	 
	
                RBS

                fao: Group General
      Counsel

              	 	
                RBS
      Gogarburn

                Edinburgh
      EH12 1HQ

              	 	
                0131 626
    2997

              
	 	 	 	 	 
	
                HMT

                fao: Jeremy
      Pocklington

              	 	
                1 Horse
      Guards Road, London SW1A 2HQ

              	 	
                0207 270
      4844

              
	 	 	 	 	 

      

      provided that a party may change its
notice details on giving notice to the other party of the change in accordance
with this clause.  That notice shall only be effective on the day
falling five clear Business Days after the notification has been received or
such later date as may be specified in the notice.

       

      
        	
                12.3  

              	
                Any notice
      given under this Agreement shall, in the absence of earlier receipt, be
      deemed to have been duly given as
follows:

              

      

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  
                  

                	
                  (A)

                	
                  if delivered
      personally, on delivery;

                

        

      

       

      
        	
                
                

              	
                
                  (B)

                

              	
                
                  if sent by
      first class post, two clear Business Days after the date of posting;
      and

                

              

      

       

      
        
          	
                  
                  

                	
                  (C)

                	
                  if
      sent by
      facsimile, when despatched.

                

        

      

       

      
        	
                13.  

              	
                Counterparts

              

      

       

      
        	
                13.1  

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

              

      

       

      
        	
                13.2  

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

              

      

       

      
        	
                14.  

              	
                Invalidity

              

      

       

      If
at any time any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, that shall not
affect or impair:

       

      
        
          	
                  
                  

                	
                  (A)

                	
                  the legality, validity or
      enforceability in that jurisdiction of any other provision of this
      Agreement; or

                

        

      

       

      
        	
                
                

              	
                
                  (B)

                

              	
                
                  the legality,
      validity or enforceability under the law of any other jurisdiction of that
      or any other provision of this
Agreement.

                

              

      

       

      
        	
                15.  

              	
                Contracts
      (Rights of Third Parties) Act 1999

              

      

       

      The parties to this
Agreement do not intend that any term of this Agreement should be enforceable,
by virtue of the Contracts (Rights of Third Parties) Act 1999, by any person who
is not a party to this Agreement.

       

      
        	
                16.  

              	
                Choice
      of governing law

              

      

       

      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. 

       

      
        	
                17.  

              	
                Jurisdiction

              

      

       

      
        	
                17.1  

              	
                The courts of
      England are to have exclusive jurisdiction to settle any dispute arising
      out of or in connection with this Agreement.  Any Proceedings
      shall be brought in the English
  courts.  

              

      

       

      
        	
                17.2  

              	
                RBS waives (and agrees not to
      raise) any objection, on the ground of forum non
      conveniens or on any
      other ground, to the taking of proceedings in the English
      courts.  RBS also agrees that a judgment against it in
      Proceedings brought in England shall be conclusive and binding upon it and
      may be enforced in any other
  jurisdiction.

              

      

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      
        	
                17.3  

              	
                RBS irrevocably submits and agrees
      to submit to the jurisdiction of the English
  courts.

              

      

       

      
        	
                18.  

              	
                Agent
      for Service of Process

              

      

       

      RBS 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 the London office of RBS, at
280 Bishopsgate, London and any writ, judgment or other notice of legal process
shall be sufficiently served on RBS if delivered to such agent at its address
for the time being.  RBS irrevocably undertakes not to revoke the
authority of the above agent and if, for any reason, the agent ceases to act as
such, RBS shall appoint a replacement agent having an address for service in
England and shall notify HMT of the name and address of such replacement
agent.  If RBS fails to appoint another agent, HMT shall be entitled
to appoint one on RBS’s behalf and at RBS’s expense.

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      Schedule
1

       

      Terms
of Issue of the Series 2 Preference Shares of The Royal Bank of Scotland Group
plc

       

      
        	
                The terms of
      issue of the Series 2 Preference Shares, which will form a separate class
      of shares from the 750,000 Non-cumulative Sterling Preference Shares of £1
      each, Series 1, issued on 4 October 2007 (the “Existing Non-cumulative
      Sterling Preference Shares”), are set out
below:

              

      

       

      
        	
                (a)

              	
                non-cumulative
      preferential dividends on the Series 2 Preference Shares will accrue from
      [ ] 2008 (the “Issue Date”). Subject to the limitations and on the terms
      set forth below, the Company will pay dividends (i) semi-annually in
      arrear on, and to the holders of record 15 days prior to, 30 September and
      31 March of each year, except that the first such payment will be made on
      31 March 2009 (in respect of the period from and including the Issue Date
      to but excluding 31 March 2009) and the last such payment will be made on
      the First Redemption Date (as defined in paragraph (g) below) (in respect
      of the period from and including 30 September 2013 to but excluding the
      First Redemption Date) (each such payment date, a “Semi-Annual Dividend
      Payment Date”), and (ii) after the First Redemption Date, quarterly in
      arrear on, and to the holders of record 15 days prior to, 31 March, 30
      June, 30 September and 31 December of each year, commencing on [31
      December] 2013 (in respect of the period from and including the First
      Redemption Date to but excluding [31 December] 2013) (each a “Quarterly
      Dividend Payment Date” and, together with each Semi-Annual Dividend
      Payment Date, each a “Dividend Payment Date”). References to a “dividend
      period” shall be to each period beginning on (and including) a Dividend
      Payment Date (or, in the case of the first such period, the Issue Date) to
      (but excluding) the next following Dividend Payment
  Date.

              

      

       

      In
order to facilitate payments of dividends on the Series 2 Preference Shares,
until the date on which the Series 2 Preference Shares are redeemed or
repurchased in full, the Company shall not:

       

      (i) declare or pay
any dividend or make any distribution (whether in cash or otherwise) on or in
respect of the Ordinary Shares of the Company or set aside any sum to provide
for payment of any such dividend or distribution (save that the foregoing
restriction shall not apply to a capitalisation issue pursuant to which newly
issued bonus shares are paid up out of undistributable reserves);
or

       

      (ii) redeem,
purchase, cancel or otherwise acquire in any way any Ordinary Shares of the
Company or effect a reduction of the Ordinary Share capital of the Company which
involves a distribution to holders of Ordinary Shares.

       

      
        In
respect of the period from (and including) the Issue Date to (but excluding) the
First Redemption Date, dividends will be payable at a rate per annum of [12] per
cent. of the liquidation preference of £[ ],000 per Series 2 Preference Share.
The dividend on each Series 2 Preference Share will therefore amount to £[ ] per
dividend period during this period, except that the dividend in respect of the
period from (and including) the Issue Date to (but excluding) the first
Semi-Annual Dividend Payment Date will amount to £[ ] per Series 2 Preference
Share, and the dividend in respect of the period from (and including) 30
September 2013 to (but excluding) the First Redemption Date will amount to £[ ]
per Series 2 Preference Share.

      

       

      
        In
respect of the period from (and including) the First Redemption Date, to the
extent that the Series 2 Preference Shares are not redeemed on or before such
date, dividends will be payable at a rate, reset quarterly, of [7] per cent. per
annum above three-month Sterling LIBOR, payable 

         

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        on
each Quarterly Dividend Payment Date (the manner of determination of such rate,
including detailed “fallback” provisions, being as described in the Prospectus
dated [ ] 2008 relating to the Series 2 Preference Shares).

      

       

      
        The amount of
dividends payable for any period shorter than a full dividend period after the
First Redemption Date will be calculated on the basis of the actual number of
days from (and including) the date on which the dividend begins to accrue during
the relevant dividend period to (but excluding) the date on which the dividend
actually falls due divided by 365 (or 366 in the case of a leap year). Payments
of less than £0.01 will be rounded upwards.

      

       

      
        Articles
4(C)(2)(b)(v) and (vi) shall not apply to the Series 2 Preference Shares, and
Article 4(C)(2)(b)(vii) shall apply in respect of dividends payable on each
Dividend Payment Date (save that, in respect of each Semi-Annual Dividend
Payment Date, the words “unless such day shall fall within the next calendar
month whereupon such payment will be made on the preceding Sterling Business
Day” shall be deemed not to apply);

      

       

      
        	
                (b)

              	
                all of the
      provisions set out in Article 4(C)(2)(b) (as amended by the last two
      sub-paragraphs of paragraph (a) above), and as further supplemented by the
      terms of this Resolution, shall apply to the Series 2 Preference Shares.
      The provisions of Article 4(C)(2)(bb) shall not apply to the Series 2
      Preference Shares and shall instead be replaced by the provisions of
      paragraph (c) below. The provisions set out in paragraph (c)(iii)(2) below
      are, in relation to Parity Securities, part of the terms of issue of the
      Existing Non-cumulative Sterling Preference Shares, the 26,000
      Non-cumulative Euro Preference Shares of€0.01 each, Series 3,
      issued on 4 October 2007 and the 15,000 Non-cumulative U.S. Dollar
      Preference Shares of US$0.01 each, Series U, issued on 4 October 2007 and
      accordingly those provisions will affect the Series 2 Preference Shares in
      the event of non-payment of dividends on the Existing Non-cumulative
      Sterling Preference Shares, the 26,000 Non-cumulative Euro Preference
      Shares or the 15,000 Non-cumulative U.S. Dollar Preference
      Shares;

              

      

    

     

    
      
        	
                (c)

              	
                in relation
      to the Series 2 Preference
Shares:

              

      

    

     

    
      
        	
                
                

              	
                (i)

              	
                the Directors
      may, in their sole and absolute discretion, resolve prior to any Dividend
      Payment Date that the dividend on the Series 2 Preference Shares, or part
      thereof, shall not be paid on that Dividend Payment Date. If the Directors
      resolve as aforesaid, then none or (as the case may be) part only of the
      dividend shall be declared and/or paid. The Directors may exercise their
      discretion in respect of a dividend notwithstanding the previous setting
      aside of a sum to provide for payment of that
  dividend;

              

      

    

     

    
      	
              
              

            	
              (ii)

            	
              to the extent
      that any dividend or part of a dividend on the Series 2 Preference Shares
      is, on any occasion, not paid for the reasons referred to in paragraph (d)
      below, the holders of Series 2 Preference Shares shall have no claim in
      respect of such non-payment;

            

    

     

    
      	
              
              

            	
              
                (iii)

              

            	
              
                if any
      dividend or part of a dividend stated to be payable on the Series 2
      Preference Shares has, on the most recent Dividend Payment Date, not been
      declared and paid in full or set aside for the reasons referred to in
      paragraph (d) below:

              

            

    

     

    
      	
              
              

            	
              (1)

            	
              the
      provisions of sub-paragraphs (ix) and (x) of 4(C)(2)(b) shall not apply in
      respect of such non-payment; and

            

    

     

    
      	
              
              

            	
              
                (2)

              

            	
              
                the Company
      may not (a) declare or pay dividends or other distributions upon any
      Parity Securities (other than, in the case of non-payment by reason of the
      resolution referred to in sub-paragraph (i) above, any Mandatory
      Securities) or Junior Securities, and the Company may not set aside any
      sum for the payment of these dividends or

              

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    
      	 	 	distributions,
      unless, on the date of declaration of any such dividends or distributions,
      the Company sets aside an amount equal to the dividend for the then
      current dividend period payable on the Series 2 Preference Shares to
      provide for the payment in full of such dividend on the Series 2
      Preference Shares on the next Dividend Payment Date; or (b) redeem,
      purchase or otherwise acquire for any consideration any of its Parity
      Securities or Junior Securities, and the Company may not set aside any sum
      or establish any sinking fund for the redemption, purchase or other
      acquisition of such Parity Securities or Junior Securities, until such
      time as dividends on the Series 2 Preference Shares in respect of
      successive dividend periods singly or together aggregating no less than 12
      months shall thereafter have been declared and paid in
  full.

    

     

    
      	
               
      

            	
              For the
      purposes of this sub-paragraph (iii), “Act” means The Companies Act 2006,
      as amended; “Group” means the Company and its subsidiaries (as such term
      is defined in the Act); “Junior Securities” means any other securities of
      the Company (other than the Ordinary Shares, in respect of which
      restrictions are set out in paragraph (a) above) or any other member of
      the Group ranking or expressed to rank junior to the Series 2 Preference
      Shares either issued directly by the Company or, where issued by a member
      of the Group, where the terms of the securities benefit from a guarantee
      or support agreement entered into by the Company which ranks or is
      expressed to rank junior to the Series 2 Preference Shares; “Mandatory
      Securities” means any Parity Securities the terms of which do not provide
      for the Board of Directors to be able to elect not to pay any dividend or
      other distribution in cash at its discretion; “Parity Securities” means
      (I) the most senior ranking class or classes of non-cumulative preference
      shares in the capital of the Company from time to time and (II) any other
      securities of the Company or any other member of the Group ranking or
      expressed to rank pari
      passu with the Series 2 Preference Shares as regards participation
      in profits either issued directly by the Company or, where issued by a
      member of the Group, where the terms of the securities benefit from a
      guarantee or support agreement entered into by the Company which ranks or
      is expressed to rank pari passu with the
      Series 2 Preference Shares and which in the case of (I) and (II) above
      comply with the then current requirements of the FSA in relation to Tier 1
      Capital or are otherwise treated by the FSA as Tier 1 Capital; and “Tier 1
      Capital” has the meaning given to it by the FSA from time to
      time;

            

    

     

    
      
        	
                
                

              	
                (iv)

              	
                if there is
      any conflict between the provisions of this paragraph (c), as they apply
      to the Series 2 Preference Shares, and any other provisions of Article
      4(C) applying to Series 2 Preference Shares, the provisions of this
      paragraph (c) shall prevail. All references to Article 4(C)(2)(bb) shall
      be deemed to refer to this paragraph
(c);

              

      

    

     

    
      	
              
              

            	
              
                (v)

              

            	
              
                in
      determining the sum payable on the Series 2 Preference Shares pursuant to
      Article 4(C)(2)(c)(i) on a winding up or liquidation, the Directors’
      discretion under sub-paragraph (i) above shall be disregarded save in
      so far as such discretion was actually exercised prior to the making of
      the determination; and

              

            

    

     

    
      	
              
              

            	
              
                (vi)

              

            	
              
                for the
      avoidance of doubt, no Series 2 Preference Shares shall be treated as
      ranking after any other New Preference Shares (as defined in the Company’s
      Articles of Association) with which it is expressed to rankpari passu as regards
      participating in profits, by reason only of the provisions set out in this
      paragraph (c) and/or the restrictions in paragraph (a) in respect of the
      payment of dividends and distributions on, and redemptions, purchases,
      cancellations and acquisitions of, the Ordinary Shares of the Company
      being included in the terms of

              

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	 	issue
      applicable to that series, or any dividend on that series not being paid
      by virtue of this paragraph (c);

    

     

    
      	
              
                (d)

              

            	
              
                in
      circumstances where any dividend otherwise payable on any Dividend Payment
      Date is not declared and/or paid in full by reason of (i) lack of
      distributable profits as referred to in Article 4(C)(2)(b)(ii), (ii) the
      application of capital adequacy requirements referred to in Article
      4(C)(2)(b)(iii) (amended as described below) or (iii) the exercise by the
      Directors of their discretion referred to in paragraph (c) above, the
      Company will notify the holders of the Series 2 Preference Shares as soon
      as reasonably practicable after the date of the relevant resolution and in
      any event not later than two Sterling Business Days prior to the relevant
      Dividend Payment Date. Each such notification shall specify the reasons
      why the relevant dividend has not been declared and/or paid in
      full.

              

            

    

     

    
      The Companies Act 1985,
as amended defines "distributable profits" as, in general terms, and subject to
adjustment, accumulated realised profits less accumulated realised
losses.

    

     

    
      Article
4(C)(2)(b)(iii) of
the Company’s Articles of Association, which refers to the Bank of England's
capital adequacy requirements, should now instead refer to the FSA and its
capital adequacy requirements, regulations, guidelines or policies, as referred
to above;

    

     

    
      	
              
                (e)

              

            	
              
                in addition
      to their rights set out in Article 4(C) (as supplemented and amended by
      the provisions of paragraph (c) above), the Series 2 Preference Shares
      shall carry the right to attend at a General Meeting of the Company and to
      speak to or vote upon any resolution proposed thereat in circumstances
      where the dividend stated to be payable on the Series 2 Preference Shares
      in respect of the most recent dividend period has not been declared and
      paid in full, and such right shall continue until the dividends have
      thereafter been declared and paid thereon in full in respect of successive
      dividend periods singly or together aggregating no less than 12 months,
      but not otherwise, together with the right in accordance with the Statutes
      (as defined in the Company’s Articles of Association) to seek to
      requisition a General Meeting of the Company in the circumstances and for
      the period specified in this paragraph (e) (and for this purpose the
      Series 2 Preference Shares will be deemed to confer the number of votes
      referred to in paragraph (f)
below);

              

            

    

     

    
      	
              
                (f)

              

            	
              
                whenever
      holders of Series 2 Preference Shares are so entitled to vote on a
      resolution at a General Meeting of the Company, on a poll every such
      holder who is present in person or by proxy shall have one vote for each
      such Series 2 Preference Share held subject to adjustment for any event
      occurring after the Issue Date as hereinafter prescribed. Such adjustments
      as the Directors consider necessary to the number of votes to which each
      Series 2 Preference Share is entitled shall be made by the Directors at
      the time of the occurrence of the event requiring such adjustment to
      reflect:

              

            

    

     

    
      	
              
              

            	
              
                (i)

              

            	
              
                any
      capitalisation issue, consolidation, sub-division or re-classification of
      Ordinary Shares as a result of any distribution to the holders of Ordinary
      Shares of assets of the Company;
and

              

            

    

     

    
      
        	
                
                

              	
                (ii)

              	
                issues of
      Ordinary Shares or grants of rights or options to subscribe for Ordinary
      Shares at a discount to the market value of the Ordinary Shares on the
      Sterling Business Day preceding the date of issue or grant as the case may
      be, ascertained by reference to the middle market quotation derived from
      the London Stock Exchange Daily Official List for such preceding Sterling
      Business Day (subject to the exceptions listed below), in each case in
      order to ensure as nearly as may be that the ratio which the number of
      vote(s) in a General Meeting to which the holder of a Series 2 Preference
      Share would be entitled on a 

              

      

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	 	 	poll bears to
      the number of vote(s) to which the holder of an Ordinary Share is entitled
      in such circumstances will be the same (but no higher) after than as it
      was before any such event. The exceptions referred to above
  are:

      

    

     

    
      
        	
                
                

              	
                (a)

              	
                rights issues
      at a discount of no more than 10 per cent. of such market value of the
      Ordinary Shares;

              

      

    

     

    
      	
              
              

            	
              
                (b)

              

            	
              
                any issue or
      grant of such number of Ordinary Shares as represents no more than 1 per
      cent. of the number of Ordinary Shares in issue from time to time for a
      consideration other than cash (in whole or in part), including, without
      limitation, for any purchase or acquisition of any shares or any other
      investments of any kind, or any business, undertaking or assets of any
      description, by the Company or any
  subsidiary;

              

            

    

     

    
      	
              
              

            	
              
                (c)

              

            	
              
                issues or
      grants under the Company’s Profit Sharing (Share Ownership) Scheme,
      Executive Share Option Scheme or Savings-related Share Option Scheme or
      any additional or successive or substitute schemes or the equivalent
      schemes of any subsidiary of the Company;
  and

              

            

    

     

    
      	
              
              

            	
              
                (d)

              

            	
              
                issues
      pursuant to the provisions of Article 143 of the Company’s Articles of
      Association;

              

            

    

     

    
      
        	
                (g)

              	
                the Company
      may redeem the Series 2 Preference Shares on [ISSUE DATE PLUS 5 YEARS AND
      ONE DAY] 2013 (the “First Redemption Date”) or any Quarterly Dividend
      Payment Date thereafter.

              

      

    

     

    
      Accordingly, the
“Redemption Date” for the purposes of the Series 2 Preference Shares shall be
the First Redemption Date or any Quarterly Dividend Payment Date thereafter. In
addition, the Directors will only exercise the Company’s option to redeem any of
the Series 2 Preference Shares on a Redemption Date if:

    

     

    
      
        	
                
                

              	
                (i)

              	
                the Company
      has given at least one month’s prior notice to the FSA of its intention to
      do so, or such other period of notice, be it greater or less, as the FSA
      requires; and

              

      

    

     

    
      	
              
              

            	
              
                (ii)

              

            	
              
                at the time
      when the notice of such redemption is given and immediately following such
      redemption, the Company is or will be (as the case may be) in compliance
      with its capital adequacy requirements, as provided in the capital
      regulations relating to capital adequacy then in effect of the FSA, unless
      at the time of such redemption such requirement of the FSA no longer
      applies;

              

            

    

     

    
      	
              
                (h)

              

            	
              
                if to be
      redeemed, the Series 2 Preference Shares may be redeemed in whole or in
      part, and (if in part) may be redeemed on more than one
      occasion;

              

            

    

     

    
      	
              
              

            	
              
                (i)

              

            	
              
                there shall
      be paid on each Series 2 Preference Share so redeemed, in pounds sterling,
      the aggregate of the nominal amount thereof together with any premium paid
      on issue and together with dividends (if any) accrued thereon (whether
      earned or declared or not) in respect of the period from the Dividend
      Payment Date last preceding the Redemption Date to the Redemption Date. No
      relevant Redemption Premium (as set out in the Company’s Articles of
      Association) shall be payable on redemption of the Series 2 Preference
      Shares;

              

            

    

     

    
      	
              
                (j)

              

            	
              
                the special
      rights attached to the Series 2 Preference Shares shall be deemed to be
      varied by the creation or issue of any New Shares (as defined in the
      Company’s Articles of Association) ranking as regards participation in the
      profits or assets of the Company in some or all respects pari passu with such
      Series 2 Preference Shares if the dividend stated to be payable on the
      Series 2 Preference Shares on the Dividend Payment Date immediately
      preceding such issue shall not have been paid in full, but, subject
      thereto, such special rights shall not be deemed to
  

              

            

    

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    
      	 	be varied by
      the creation or issue of any New Shares ranking as to participation in the
      profits or assets of the Company in some or all respects pari passu with or
      after such Series 2 Preference Shares;
and

    

     

    
      	
              
                (k)

              

            	
              
                the foregoing
      paragraphs (a) to (j) inclusive and this paragraph (k) shall be the whole
      of the terms of issue of the Series 2 Preference Shares determined by the
      Committee prior to allotment thereof in accordance with the Company’s
      Articles of Association.

              

            

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

     

    Schedule
2

     

    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 and having its registered office at 36 St Andrew Square, Edinburgh
      EH2 2YB (“RBS”)

            

    

     

    
      	
               
      

            	
              AND

            

    

     

    
      	
              3.

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

            

    

     

    
      	
               
      

            	
              WHEREAS:

            

    

     

    
      	
              (A)

            	
              HMT has
      agreed to subscribe for, and RBS has agreed to allot and issue to HMT, the
      Preference Shares (as defined in this Agreement) pursuant to the
      Preference Share Subscription Agreement (as defined in this
      Agreement).

            

    

     

    
      	
              (B)

            	
              HMT wishes to
      be released and discharged from the Preference Share Subscription
      Agreement and RBS has agreed to release and discharge HMT from the
      Preference Share Subscription Agreement upon the terms of the Company’s
      undertaking to perform the Preference Share Subscription 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 Preference Share Subscription
      Agreement.

            

    

     

    
      	
               
      

            	
              NOW IT IS
      AGREED as follows:-

            

    

     

    
      	
              1.  

            	
              INTERPRETATION

            

    

     

    
      	
              1.1  

            	
              In this
      Agreement:

            

    

     

    
      	
              “Preference
      Shares”

            	 	
              preference
      shares issued by RBS with an aggregate liquidation preference of
      £5,000,000,000, having the rights and subject to the restrictions set out
      in Article 4(C) of RBS' Articles of Association as supplemented by the
      terms set out in Schedule 1 to this Agreement;

            
	 	 	 
	
              “Preference
      Share Subscription Agreement”

            	 	
              means the
      agreement effective as of 13 October 2008 between HMT and RBS pursuant to
      which HMT agreed to subscribe for, and RBS agree to allot and issue to
      HMT, the Preference 

            

    

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

     

    
      	 	 	Shares;
      and
	 	 	 
	
              “Proceedings”

            	 	
              means any
      proceeding, suit or actions arising out of or in connection with this
      Agreement.

            
	 	 	 

    

    
      	
              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 RBS
in clause 3,
the Company hereby undertakes to observe, perform, discharge and be bound by the
Preference Share Subscription 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
      Preference Share Subscription 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
      Preference Share Subscription 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 Preference Share Subscription Agreement before the date of
      this Agreement.

              

            

    

     

    
      	
              3.  

            	
              RBS’S
      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, RBS hereby:

            

    

     

    
      
        	
                
                

              	
                (A) 

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

              

      

    

     

    
      	
              
              

            	
              
                (B) 

              

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

              

            

    

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	
              
              

            	
              
                (C) 

              

            	
              
                agrees to
      observe, perform, discharge and be bound by the Preference Share
      Subscription Agreement as if the Company were a party to the Preference
      Share Subscription 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 RBS may have against HMT in relation to
      the Preference Share Subscription Agreement and arising out of matters
      prior to the date of this
Agreement.

            

    

     

    
      	
              4.  

            	
              HMT’S
      UNDERTAKING AND RELEASE OF RBS

            

    

     

    With effect from
the date of this Agreement and in consideration of the undertakings given by RBS
in clause 3,
HMT hereby releases and discharges RBS from all obligations to observe, perform,
discharge and be bound by the Preference Share Subscription
Agreement.  Notwithstanding this undertaking and release, nothing in
this Agreement shall affect or prejudice any claim or demand whatsoever which
HMT may have against RBS in relation to the Preference Share Subscription
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 RBS in clause 3, HMT
      hereby unconditionally and irrevocably guarantees to RBS 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 RBS 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 Preference Share
      Subscription 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 so that the same benefits shall be
      conferred on RBS as it 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 RBS 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.

            

    

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

     

    
      	
              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 Preference Share
      Subscription 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 Preference Share Subscription 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
      CEASING 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.  RBS hereby agrees to consent to, and to execute and deliver all
such documentation as may be necessary to effect, such novation provided that
such novation is effected upon substantially the same terms as this
Agreement.

     

    
      	
              7.  

            	
              NOTICES

            

    

     

    For the purposes of
all provisions in the Preference Share Subscription 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 Preference Share Subscription 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 AND JURISDICTION

            

    

     

    
      	
              9.1  

            	
              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.

            

    

     

    
      	
              9.2  

            	
              The courts of
      England are to have exclusive jurisdiction to settle any dispute arising
      out of or in connection with this Agreement.  Any Proceedings
      shall be brought in the English
courts.

            

    

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
              10.  

            	
              [AGENT
      FOR SERVICE OF PROCESS]

            

    

     

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

     

    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 agent having an
address for service in England and shall notify RBS and HMT of the name and
address of such replacement agent.  If the Company fails to appoint
another agent, RBS 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.

     

    
      
        	
                BY
      TWO COMMISSIONERS

                OF
      HER MAJESTY’S TREASURY

              	 
      	 
      
	 
      	 
      	 
      
	 	 	  
      
	 	 	 
	
                before:

              	 
      	 
      
	 
      	 
      	 
      
	   
      	 
      	 
      
	 	 	 
	 	 	 
	
                Signed
      by:

                for and on
      behalf of

                THE
      ROYAL BANK OF SCOTLAND GROUP PLC

              	 
      	   
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	   
      	 
      	 
      
	
                For and on
      behalf of

                [insert name of the
      Company]

              	 
      	 
      
	 
      	 
      	 
      

      

    

     

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

     

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

     

    
       

      
        
          	
                  BY
      TWO COMMISSIONERS

                  OF
      HER MAJESTY’S TREASURY

                	 
    	/s/
      [illegible]
	 
    	 
    	 
    
	 	 	 
	 	 	Date:
	
                  before:

                	 
    	 
    
	 
    	 
    	 
    
	   
      	 
    	 
    
	 	 	 
	 	 	 
	
                  Signed
      by:

                  for and on
      behalf of

                  THE
      ROYAL BANK OF SCOTLAND GROUP PLC

                	 
    	/s/
      [illegible]
	 
    	 
    	Date: 4
      November 2008
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

        

      

    

    

    CE082840083

     

     

    
       

      
        19

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