Redundancy Options

The options available to employee shareholders following redundancy are as follows:

Shares obtained within 2002 Scheme

For the 2002 scheme the individual must complete a Change of circumstances form to HBOS. This will prompt HBOS to send a letter setting out the options available. These options are either to sell his leveraged and classic units within six months of leaving or remain in the scheme until April 2007.

Shares obtained within 2004 Scheme

For the 2004 Scheme the individual must complete a Change of circumstances form which should be filed with HBOS. HR should also be informing Payroll of why the individual left and that information should be being sent onto HBOS by Payroll. This triggers a letter to the individual setting out the options available. The options are to sell or transfer his/her shares out of the SIP. Again the letter will set out the options and effects. This transfer or sale needs to occur within 90 days of the redundancy.