SCHEDULEThe Bradford & Bingley plc Compensation Scheme

PART 2Determination of amount of compensation

Transfer of Bradford & Bingley shares3

1

The amount of any compensation payable by the Treasury to persons who held shares in Bradford & Bingley immediately before they were transferred by 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 all shares in Bradford & Bingley held immediately before the transfer time by that person.

3

For the purposes of this Scheme, the holders of shares in Bradford & Bingley, and the class and number of shares held by them, shall be identified by reference to—

a

the Operator register of members of Bradford & Bingley; and

b

the issuer register of members of Bradford & Bingley,

following the reconciliation required by article 4(4) of the Transfer Order.

4

In sub-paragraph (3) “issuer register of members” and “Operator register of members” have the meanings given in the Uncertificated Securities Regulations 20013.