Paragraph 1

With effect from the segregation time the provisions of the pension scheme shall be modified so as to include a section (“the international section”) which is divided from the remainder of the pension scheme (“the remaining section”) such that—

(a)

the only employer in the international section shall be Bradford & Bingley International;

(b)

all members of the pension scheme who are in pensionable service with Bradford & Bingley International at the segregation time shall become members of the international section immediately following the segregation time;

(c)

the contributions payable by Bradford & Bingley International and the members of the international section to the pension scheme shall be allocated to the international section; and

(d)

the assets attributable to the international section cannot be used for the purposes of, or to meet any liabilities arising under, any other part of the pension scheme.