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1 The Lord Chancellor may appoint a person to exercise the functions of the Ombudsman if— a the Ombudsman's office becomes vacant, b the Lord Chancellor determines that the Ombudsman is incapable of exercising his functions, or c the Ombudsman notifies the Lord Chancellor that it would be inappropriate for him to exercise any of his functions in connection with a particular matter because of a possible conflict of interests or for any other reason. 2 But a person may be appointed under this paragraph only if he is eligible under paragraph 1 to be appointed as Ombudsman. 3 The Lord Chancellor may— a pay to a person appointed under this paragraph such remuneration, fees or expenses as the Lord Chancellor may determine; b pay, or make provision for the payment of, such pension, allowance or gratuity as the Lord Chancellor may determine to or in respect of a person who is or has been a person appointed under this paragraph. 4 A person appointed under this paragraph is to exercise the functions of the Ombudsman in accordance with the terms of his appointment. 5 The Lord Chancellor may end an appointment under this paragraph at any time. 6 Otherwise any appointment of a person under this paragraph ends on the earliest of— a that person's ceasing to be eligible to be appointed as Ombudsman; b the expiry of the appointment in accordance with its terms and conditions; c the date on which with the agreement of the Lord Chancellor the Ombudsman resumes the exercise of his functions; d the appointment of a new Ombudsman; e the end of twelve months beginning with the relevant date. 7 The relevant date is— a if the appointment was under sub-paragraph (1)(a), the date when the vacancy arose; b if the appointment was under sub-paragraph (1)(b), the date of the Lord Chancellor's determination; c if the appointment was under sub-paragraph (1)(c), the date of the notification.