Foundations Program plc - in liquidation
FPA Limited - in liquidation

Update June 2014

For the attention of Participants and Loan Note Holders

Glossary

Foundations Program plc - in liquidation ("FPP")
FPA Limited - in liquidation ("FPA")
Joint Liquidators and Joint Official Receivers ("JL&JORs")

In the Isle of Man High Court today, 3 June 2014, Deemster Doyle considered the application of the JL&JORs to initiate proceedings as described in update dated March 2014. In summary, the Court has approved the approach suggested by the JL&JORs to resolve the issue of whether or not the assigned assets currently held by Barclays Private Client International are or will be held on any form of trust when they are released to FPA on discharge of the bank borrowing (the "Trust Application").

As a consequence of the Court’s approval, all Participants and Loan Note Holders have been categorised as belonging to one of three classes of creditor:

• Participants whose policies remain intact
• Participants whose policies have matured or been surrendered
• Loan Note Holders

Each class will be represented by individual class representatives who have appointed independent advocates to represent the interest of their class. However, as will be fully explained in correspondence and attached Court Order and supporting documentation (the "Trust Application Documents") that will be sent to you over the course of the next few days, you will also have the opportunity to consider whether or not you wish to be represented separately at your own cost or wish to make any other applications in connection with the Trust Application.

For those Participants who have been provided the JL&JORs with email details, the Trust Application Documents will be sent by email. For the remaining Participants and the Loan Note Holders, the Trust Application Documents will be despatched by registered post.

Any party that does not receive these materials by 13 June 2014 should contact Mike Fayle at mfayle@kpmg.co.im

3 June 2014