Document:

Exhibit 4(b)(xxii)

 

Classification: Confidential

 

21 October 2019

 

Private & Confidential

Ms Sarah Legg

 

Dear Sarah

 

Non-executive Director Appointment –
Lloyds Banking Group plc

 

Following our recent discussions, I am pleased
to confirm that the Board of Lloyds Banking Group plc (“the Group”) has agreed in principle your appointment as a non-executive
director, subject to completion of our certification references and final confirmation by the Board.

 

All directors of the Group also serve on the
subsidiary HBOS Plc Board as well as the two principal subsidiary bank boards of Lloyds Bank plc and Bank of Scotland plc (which
together will comprise the ‘Ring Fenced Bank’ Boards). As discussed, the proposed appointment as a non-executive director
will therefore be to the Group Board, HBOS plc and the Ring Fenced Bank Boards (collectively ‘the Companies’). These
boards will generally meet simultaneously, or on the same date if meeting separately.

 

Your appointments will be subject to the terms
and conditions set out in this letter.

 

		1.	Appointment

 

Your appointment to the boards of the Companies
is expected to commence on December 1st 2019. Your appointment will be for an initial term of three years, expiring
at the Annual General Meeting of the Group (AGM) in 2023. Appointments are reviewable annually and require shareholder approval.
Subject to satisfactory performance and Board approval, you will be invited to stand for annual re-election by shareholders at
the AGM in each year of your appointment.

 

Subject to a review of performance and the requirements
of the Board at the time, non-executive directors may be invited to serve for a further term.

 

Continuation of your appointments is subject
to:

 

		·	approval by the Group of our certification to the regulators that
you are a fit and proper person, and any approval that may in future be required by the regulators in connection with roles you
take on as a member of the Board You must inform the company of any significant changes in your personal circumstances which may
have an impact on your status;

    	 

    	

    
Classification: Confidential

 

		·	satisfactory performance and contribution to the Board and any Board
committees on which you serve;

 

		·	election and re-election as a director by the company’s shareholders
in general meeting as required by the company’s articles of association and codes to which the company subscribes, in particular,
the Financial Reporting Council’s UK Corporate Governance Code.

 

		2.	Termination

 

Once appointed, you will cease to hold the office
of director if:

 

		(i)	you resign from your appointment or choose not to stand for re-election;

 

		(ii)	the company terminates your appointment or chooses not to propose
you for re-election;

 

		(iii)	shareholders fail to elect or re-elect you;

 

		(iv)	you fail to meet, on an ongoing basis, the standards expected of
a person performing your role; or

 

		(v)	the articles of association or any law or regulation prevents you
from continuing in office.

 

In the case of (i) and (ii) above, there is
no entitlement to notice or to compensation for loss of office. However, the company will endeavor to give you reasonable notice
where appropriate. You are requested to make the Chairman aware of any intention not to seek re-election so that the board can
plan for orderly succession.

 

In the case of termination under (iii), (iv)
or (v) above, your appointment will terminate automatically with immediate effect and without compensation.

 

		3.	Board Committees

 

In addition to your appointment as a non-executive
director you will be required to serve on at least two Group/Ring Fenced Bank Board Committees which may be subject to rotation.
Initially, it is proposed you serve as:

 

		·	Member, Audit Committees

 

		·	Member, Risk Committees

 

You may also be required to serve on sub-committees
of these Board committees and ad hoc Board Committees established from time to time for a specific purpose.

 

		4.	Role and Responsibilities

 

Your duties will be those required of a non-executive
director. Non-executive directors have the same legal responsibilities as other directors.

 

The Board is collectively responsible for promoting
the success of the company by directing the company’s affairs. As members of the unitary board, all directors are required
to:

 

		·	provide entrepreneurial leadership of the company within a framework
of prudent and effective controls which enable risk to be assessed and managed.

 

		·	set the company’s strategic aims, ensure that the necessary
financial and human resources are in place for the company to meet its objectives, and review management performance; and

 

		·	set the company’s values and standards and ensure that its
obligations to its shareholders and others are understood and met.

    	 

    	

    
Classification: Confidential

 

In addition, as a member of the Ring Fenced
Bank Boards and Committees you will have responsibility with other directors of ensuring effective governance of the Ring Fenced
Banks, including identifying and addressing any potential conflicts of interest between the Ring Fenced Bank and other group entities
in a way that ensures the integrity of the Ring Fencing Scheme is upheld.

 

Your more specific responsibilities and accountabilities
are reflected in the group’s wider governance framework and will include, to the extent relevant, any responsibilities prescribed
pursuant to UK regulation and as notified to the PRA and/or FCA, details of which are available from the Company secretary.

 

		5.	Time Commitment

 

As a non-executive director, you are required
to devote such time as is necessary for the effective discharge of your duties. The likely minimum time commitment for your role
is approximately 35 – 40 days per annum which is made up as follows:

 

	 	·	Base time commitment for LBG non-executive directors:	c.25 - 28 days
	 	·	Additional time for membership of Risk Committee	c.5- 6 days
	 	·	Additional time for membership of Audit Committee	c.5- 6 days

 

The estimated time commitment includes scheduled
Board and Committee meetings relevant to your role, plus strategy sessions (including a 2 - 3 day offsite meeting), attendance
at the AGM and preparation for meetings. A schedule of Board and committee meetings will be included in your appointment pack.

 

The above minimum time commitment is based on
planned events. From time to time, you may be required to attend meetings at short notice. In such cases, you will be required
to make yourself available as appropriate.

 

In your capacity as a director of Lloyds Banking
Group plc or as a director of the Ring Fenced Banks you may be required to attend or represent the Group at meetings with the Regulators,
the Government, investors or other third parties as appropriate.

 

Depending on your other commitments, you may
be expected to relinquish other appointments to ensure that you can meet the legal and time commitments of the role. Legislation
limits a director of a financial services company to holding a maximum of four non-executive director roles (including your position
at LBG).

 

By accepting this appointment, you confirm that
you are able to allocate sufficient time to meet the expectations of your role to the satisfaction of the board.

 

The agreement of the Chairman must be sought
before accepting any additional commitments in order to discuss whether they might affect your ability to meet the time commitments
necessary to discharge your duties and allow a formal review of compatibility with CRD IV regulatory restrictions and any potential
conflict issues.

 

		6.	Fees and Expenses

 

The following annual fees are payable in respect
of your appointment:

 

	 	·	Non-executive base fee	 	£ 79,600
	 	·	Additional fee for membership of Risk Committees	 	£ 33,300
	 	·	Additional fee for membership of Audit Committees	 	£ 33,300
	 	 	 	 	 
	 	Total fees payable:	 	£146,200

    	 

    	

    
Classification: Confidential

 

You will also be entitled to claim for reimbursement
of reasonable expenses incurred in the course of your duties as a director so long as these conform to the expenses policy agreed
by the Board.

 

		7.	Outside Interests

 

It is accepted and acknowledged that you have
business interests other than those of the company. As a condition of your appointment you are required to declare any such directorships,
appointments and interests to the board in writing. If you take on any additional business interests or become aware of any potential
conflicts of interest, these must be disclosed to the board as soon as they arise or become known to you. If at any time you are
considering acquiring any new interest which might give rise to a conflict of interest with the company you must first discuss
the matter with the Chairman and obtain a resolution of the board authorising such interest. Regardless of any approval given in
relation to outside interests, it is your responsibility to ensure that you can meet the time commitment required by the role.

 

		8.	Confidentiality

 

You will not use or disclose to any person,
firm or organisation (except as required by law or to carry out your duties under this letter) any trade secrets, know-how, business
information or other private or confidential information relating to the business, finances or affairs of the company or any member
of the Lloyds Banking Group, or any customer of the company or any other information provided on the basis that it is confidential.
You will use your best endeavours to prevent the unauthorised use or disclosure of any such information.

 

This restriction will continue to apply after
your appointment ends without limit in time but will not apply to information which becomes public, unless through unauthorised
disclosure by you. After your appointment ends you will return all documents and information (whether written, visual or electronic)
under your control which belong to the company or any member of the Group.

 

Your attention is also drawn to the requirements
under both legislation and regulation relating to the disclosure of price sensitive information. You should avoid making any statements
or engaging in any dealings that might contravene these requirements. The Company Secretary can provide further information and
advice on these matters if required. Company policy is that all external communication on company affairs is restricted to the
Chairman, Chief Executive and Corporate Affairs Director only.

 

		9.	Induction

 

Following appointment, the company will provide
further tailored induction to the extent required. You are entitled to request any additional information or briefings to assist
you in the execution of your duties.

 

		10.	Evaluation and review of performance

 

The performance of individual directors and
the board and its committees is evaluated annually. In the interim, if there are any matters which you wish to discuss in relation
to your role, please feel free to contact me.

 

		11.	Directors’ Liability Indemnity and Insurance

 

To the extent permitted by law, directors are
entitled to be indemnified by the company against all costs and liabilities incurred by them in execution of their duties. A deed
of indemnity is included in your appointment pack for signature and return.

 

You will also have the benefit of any directors’
and officers’ insurance cover maintained from time to time by the company (but this shall not oblige the company to maintain
any such cover either at all, or on current terms).

    	 

    	

    
Classification: Confidential

 

	 	13.	Independent Professional Advice

 

Occasions may arise when you consider that you
need professional advice in the furtherance of your duties as a director and it will be appropriate for you to consult independent
advisers at the company’s expense. The company will reimburse the full cost of expenditure incurred.

 

		14.	Disclosure and Dealings in Shares

 

The company may be required to include in its
annual accounts a note of any material interest that a director may have in any transaction or arrangement that the company has
entered into. You must disclose any such interest as soon as possible but no later than the board meeting at which the transaction
or arrangement is first discussed so that the Board can note your interest and, if appropriate, approve any conflicts. A general
notice that you are interested in any contracts with a particular person, firm or company is acceptable.

 

During the continuation of your appointment
you will be expected to comply (and to procure that your spouse and any connected persons comply) where relevant with any rule
of law or regulation of any competent authority or of the company from time to time in force in relation to dealings in shares,
debentures and other securities of the company and the unpublished price sensitive information affecting the shares, debentures
and other securities of the company.

 

Details of the procedure for dealing in shares,
together with explanatory notes, will be in your appointment pack.

 

		15.	Shareholdings

 

All directors are expected to hold shares in
the company. If you would like to receive whole or part of your monthly fee in shares, we would be happy to make the necessary
arrangements for you.

 

Please acknowledge receipt and acceptance of
the above terms by signing and returning the enclosed copy of this letter.

 

Please do not hesitate to contact me for any
assistance in any matters during the term of your appointment. I will write formally again at the time the appointment is confirmed
by the Board and will look forward to welcoming you to the Group.

 

Best regards

/s/ Norman Blackwell

 

 

 

 

 

 

 

 

I acknowledge receipt of the letter dated
21 October, 2019 of which this is a copy and accept the proposed terms of appointment.

 

 

Signed.../s/ S Legg

 

Date 29.10.2019Exhibit (4)(b)(xxiii)

 

Classification: Confidential

 

31 October 2019

 

Private & Confidential

Ms Sarah Legg

 

Dear Sarah,

 

Non-executive Director appointment –
Lloyds Banking Group plc

 

Further to my letter of 21 October, I can
now confirm that your appointment on the terms set out in that letter will commence on 1st December, 2019. I look forward
very much to having you with us.

 

Best regards,

 

/s/ Norman Blackwell

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