SCHEDULEThe Bradford & Bingley plc Compensation Scheme

PART 2Determination of amount of compensation

Extinguishment of subscription rights4

1

The amount of any compensation payable by the Treasury to persons whose subscription rights were extinguished by virtue of article 5 of the Transfer Order shall be determined in accordance with this paragraph.

2

The amount of compensation payable to a person shall be an amount equal to the value immediately before the transfer time of that person’s subscription rights.

3

In this paragraph “subscription rights” means any right or other entitlement to receive shares in Bradford & Bingley (whether by subscription, conversion or otherwise) granted by—

a

a relevant undertaking; or

b

a person not within paragraph (a), where the right or entitlement is enjoyed by reason of or in connection with—

i

any individual’s office or employment with a relevant undertaking; or

ii

the services provided by any individual to a relevant undertaking.

4

In sub-paragraph (3) “relevant undertaking” means Bradford & Bingley or any of its UK subsidiary undertakings that is a body corporate incorporated, or a partnership established, under the law of any part of the United Kingdom.