<PAGE>
SCHEDULE 2
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The Milestones Programme
PROPOSAL FOR INCOME SHARING BETWEEN SFL & PRUDENTIAL
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<CAPTION>
31 December 15 April 2000 Year 1 Year 2 Year 3 Year 4
1999 - First Estimated Estimated Estimated Estimated
Milestone Target date target date target date target date
1 July 2000 1 July 2001 1 July 2002 1 July 2003
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<S> <C> <C> <C> <C> <C> <C>
Administration New - - 10,250 18,000 18,000 24,000
Member Capacity as
set by the
Prudential
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Projected New 750 2,250 4,750 9,750 18,000 24,000
Pension Scheme
Membership pa
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Cumulative Pension - - 4,750 14,500 32,500 56,500
Scheme Membership
on annual basis
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Prudential - - 35,625 108,750 325,000 560,500
Membership Income ((Pounds)7.50 ((Pounds)7.50 ((Pounds)10 per ((Pounds)10 per
including Vat - per member) per member) member) the new member)
increases only kick rate starts
in at total annual when cumulative
membership members hits
milestones, if 32500 members
members then
decrease then
previous income
share returns at
dates set above or
July annually
thereafter
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Prudential Income - - 35,000 108,000 325,000 560,000
including VAT
rounded
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<CAPTION>
Year 5 Total
Estimated income
target dated share inc.
1 July 2004 VAT
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<S> <C> <C>
Administration New 24,000
Member Capacity as
set by the
Prudential
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Projected New 23,350
Pension Scheme
Membership pa
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Cumulative Pension 79,850
Scheme Membership
on annual basis
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Prudential 598,875 1,626,875
Membership Income ((Pounds)7.50
including Vat - per member)
increases only kick payable until
in at total annual total income
membership share is
milestones, if complete
members then
decrease then
previous income
share returns at
dates set above or
July annually
thereafter
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Prudential Income 598,875 1,626,875
including VAT
rounded
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