Exhibit 4.2


 


EXECUTION
VERSION



 


 


 


 


 


 


 


 


 





 



THE ROYAL
BANK OF SCOTLAND GROUP PLC


 


as Company


 


and


 


THE BANK
OF NEW YORK MELLON, ACTING THROUGH ITS LONDON BRANCH


 


as Trustee


 


 



THIRD
SUPPLEMENTAL INDENTURE


 


dated as
of September 12, 2016


 


to the


 


AMENDED
AND RESTATED INDENTURE


 


dated as
of September 13, 2011


 


$2,650,000,000
3.875% Senior Notes due 2023


 


 



 


 


 


 


 


 


 


 


 


 



     


    


    





 


This THIRD
SUPPLEMENTAL INDENTURE, dated as of September 12, 2016, among THE ROYAL BANK OF SCOTLAND GROUP PLC, a corporation incorporated
in Scotland with registered number SC045551, as issuer (the “Company”) and THE BANK OF NEW YORK MELLON, acting
through its London Branch, a banking corporation duly organized and existing under the laws of the State of New York, as trustee
(the “Trustee”) having its Corporate Trust Office at One Canada Square, London E14 5AL.


 


WITNESSETH:


 


WHEREAS,
the Company and the Trustee have executed and delivered an amended and restated Indenture dated as of September 13, 2011 (the
“Amended and Restated Indenture”), as amended and supplemented in respect of all series of senior debt securities
issued thereunder, by the First Supplemental Indenture dated as of April 1, 2014 (the “First Supplemental Indenture”)
and the Second Supplemental Indenture dated as of April 5, 2016 (the “Second Supplemental Indenture” and, together
with the Amended and Restated Indenture and the First Supplemental Indenture, the “Base Indenture”) to provide
for the issuance of the Company’s Senior Debt Securities from time to time;


 


WHEREAS,
Section 9.01(f) of the Base Indenture provides that the Company and the Trustee may enter into a supplemental indenture to establish
the forms or terms of the Senior Debt Securities of any series without the consent of Holders as permitted under Sections 2.01
and 3.01 of the Base Indenture;


 


WHEREAS,
the Company desires to issue, as a further series of Senior Debt Securities under the Base Indenture, $2,650,000,000 3.875% Notes
due 2023 (the “Senior Notes”), to be issued pursuant to this Third Supplemental Indenture dated as of September
12, 2016 (the “Third Supplemental Indenture” and, together with the Base Indenture, the “Indenture”);


 


WHEREAS,
to the extent that the terms of the Base Indenture are inconsistent with the provisions of this Third Supplemental Indenture,
the terms of this Third Supplemental Indenture shall govern;


 


WHEREAS,
there are no debt securities outstanding of any series created prior to the execution of this Third Supplemental Indenture which
are entitled to the benefit of the provisions set forth herein or would be adversely affected by such provisions;


 


WHEREAS,
the entry into of this Third Supplemental Indenture has been authorized pursuant to a Board Resolution as required by Section
9.01 of the Base Indenture;


 


WHEREAS,
the Company has requested that the Trustee execute and deliver this Third Supplemental Indenture, and whereas all actions
required by it to be taken in order to make this Third Supplemental Indenture a valid, binding
and enforceable instrument in accordance with its terms have been taken and performed, and the execution and delivery of this
Third Supplemental Indenture has been duly authorized in all respects; and


 






    1


    


    

 





 


NOW, THEREFORE,
the Company and the Trustee mutually covenant and agree as follows:


 


Article
1

DEFINITIONS


 


Section 1.01.Definition
of Terms. For all purposes of this Third Supplemental Indenture:


 


(a)a
term defined anywhere in this Third Supplemental Indenture has the same meaning throughout;


 


(b)capitalized
terms used but not otherwise defined herein shall have the meanings assigned to them in the Base Indenture;


 


(c)the
singular includes the plural and vice versa;


 


(d)headings
are for convenience of reference only and do not affect interpretation; and


 


(e)for
purposes of this Third Supplemental Indenture and the Base Indenture, the term “series” shall mean the series
of securities designated as the Senior Notes.


 


Article
2

THE SENIOR DEBT SECURITIES


 


Section 2.01.Terms
of the Senior Notes. The following terms relating to the Senior Notes are hereby established pursuant to Section 3.01 of the
Base Indenture:


 


(a)The
title of the Senior Notes shall be the “3.875% Senior Notes due 2023”;


 


(b)The
aggregate principal amount of the Senior Notes that may be authenticated and delivered under the Indenture shall not initially
exceed $2,650,000,000 (except as otherwise provided in the Indenture);


 


(c)Principal
on the Senior Notes shall be payable on September 12, 2023;


 






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(d)The
Senior Notes shall be issued in global registered form on September 12, 2016; and shall bear interest from September 12, 2016
at an annual rate of 3.875%, payable semi-annually in arrear on September 12 and March 12 in each year commencing on March 12,
2017 (each, an “Interest Payment Date”). Interest on the Senior Notes will be calculated on the basis of a
360-day year divided into twelve months of 30 days each and, in the case of an incomplete month, the actual number of days elapsed
in such period. The Regular Record Dates for the Senior Notes will be the 24th day of each February and August in each
year, whether or not a Business Day, immediately preceding the relevant Interest Payment Date.


 


(e)No
premium, upon redemption or otherwise, shall be payable by the Company on the Senior Notes;


 


(f)Principal
of and any interest on the Senior Notes shall be paid to the Holder through The Bank of New York Mellon, as paying agent of the
Company having offices in London, United Kingdom;


 


(g)The
Senior Notes shall not be redeemable except as provided in Article 11 of the Base Indenture as amended by Section 3.07 of the
Second Supplemental Indenture. In connection with any redemption of Senior Notes pursuant to Section 11.08 of the Amended and
Restated Indenture, as amended by Section 3.07 of the Second Supplemental Indenture, the date referenced therein shall be September
12, 2016;


 


(h)The
Company shall have no obligation to redeem or purchase the Senior Notes pursuant to any sinking fund or analogous provision;


 


(i)The
Senior Notes shall be issued only in denominations of $200,000 and integral multiples of $1,000 in excess thereof;


 


(j)The
principal amount of, and any accrued interest on, the Senior Notes shall be payable upon the declaration of acceleration thereof
pursuant to Section 5.02 of the Base Indenture;


 


(k)Additional
Amounts shall only be payable on the Senior Notes pursuant to Section 10.04 of the Base Indenture, as amended by Section 3.06
of the Second Supplemental Indenture;


 


(l)The
Senior Notes shall not be converted into or exchanged at the option of the Company for stock or other securities of the Company;


 


(m)The
Senior Notes shall be denominated in U.S. Dollars;


 


(n)The
payment of principal of and interest, if any, on the Senior Notes shall be payable in U.S. Dollars;


 






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(o)The
payment of principal of and interest, if any, on the Senior Notes shall be payable only in the coin or currency in which the Senior
Notes are denominated which, pursuant to (m) above, shall be U.S. Dollars;


 


(p)The
Senior Notes will be issued in the form of one or more global securities in registered form, without coupons attached, and the
initial Holder with respect to each such global security shall be Cede & Co., as nominee of The Depository Trust Company;


 


(q)Except
in limited circumstances, the Senior Notes will not be issued in definitive form;


 


(r)There
is no Calculation Agent for the Senior Notes;


 


(s)The
Events of Default on the Senior Notes are as set forth in Section 5.01 of the Base Indenture as amended by Section 3.02 of this
Third Supplemental Indenture;


 


(t)The
form of the Senior Notes shall be evidenced by one or more global notes in registered form (each, a “Global Note”)
substantially in the form of Exhibit A attached to this Third Supplemental Indenture and made a part thereof; and


 


(u)The
Company may issue additional Senior Notes (“Additional Senior Notes”) after the date hereof having the same
ranking and same interest rate, maturity date, redemption terms and other terms as the Senior Notes except for the price to the
public and issue date, provided however that if such additional notes have the same CUSIP, ISIN and/or Common Code as the outstanding
Senior Notes, such additional notes must be fungible with the Senior Notes for U.S. federal income tax purposes. Any such Additional
Senior Notes, together with the Senior Notes will constitute a single series of securities under the Indenture. There is no limitation
on the amount of notes or other debt securities that the Company may issue under the Indenture.


 


Article
3

AMENDMENTS TO THE BASE INDENTURE


 


Section 3.01.Addition
of Definitions. With respect to the Senior Notes only, Section 1.01 of the Base Indenture is amended to include the following
definitions (which shall be deemed to arise in Section 1.01 in their proper alphabetical order):


 


“Beneficial
Owners” shall mean (a) if the Senior Notes are in global form, the beneficial owners of the Senior Notes (and any interest
therein) and (b) if the Senior Notes are held in definitive


 






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form, the holders in whose names the Senior Notes are registered in
the Senior Debt Security Register and any beneficial owners holding an interest in such Senior Notes held in definitive form.


 


“relevant
U.K. resolution authority” means any authority with the ability to exercise a U.K. bail-in power.


 


“U.K.
bail-in power” means any write-down, conversion, transfer, modification or suspension power existing from time to time
under any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions
and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company or other
members of the Group, including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted
or enacted within the context of a European Union directive or regulation of the European Parliament and of the Council establishing
a framework for the recovery and resolution of credit institutions and investment firms and/or within the context of a U.K. resolution
regime under the Banking Act 2009, as the same has been or may be amended from time to time (whether pursuant to the U.K. Financial
Services (Banking Reform) Act 2013 (the “Banking Reform Act 2013”), secondary legislation or otherwise, the
“Banking Act”), pursuant to which any obligations of a bank, banking group company, credit institution or investment
firm or any of its affiliates can be reduced, cancelled, modified, transferred and/or converted into shares or other securities
or obligations of the obligor or any other person (or suspended for a temporary period) or pursuant to which any right in a contract
governing such obligations may be deemed to have been exercised.


 


Section 3.02.Events
of Default. With respect to the Senior Notes only, Section 5.01 of the Base Indenture is amended by adding the following sentence
at the end of the section:


 


The
exercise of any U.K. bail-in power by the relevant U.K. resolution authority shall not constitute a default or an Event of Default
under this Section 5.01.


 


Section 3.03.Compensation
and Reimbursement. With respect to the Senior Notes only, Section 6.07 of the Base Indenture is amended in part to add the
following sentence at the end of the section:


 






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The
Trustee’s right to reimbursement and indemnity under this Section 6.07 shall survive the payment in full of the Senior Debt
Securities, the discharge of this Amended and Restated Indenture, the resignation or removal of the Trustee and any termination
of the Amended and Restated Indenture, including any termination under any bankruptcy law and (without prejudice to Section 5.07
of this Third Supplemental Indenture if, and to the extent applicable, as set out therein) any exercise of the U.K. bail-in power
by the relevant U.K. resolution authority with respect to the obligations owed or owing to Holders pursuant to or in connection
with the Senior Debt Securities.


 


To
the extent the Company’s obligations to reimburse and indemnify the Trustee pursuant to this Section 6.07 are excluded liabilities
under the Banking Act or otherwise excluded from any exercise of the U.K. bail-in power by the relevant U.K. resolution authority
by legislation, rule, regulation or regulatory technical standard, such liabilities shall survive the application of such U.K.
bail-in power.


 


Article
4


 


Section 4.01.Agreement
with Respect to Exercise of U.K. Bail-In Power. The following provisions relate solely to the Senior Notes established pursuant
to this Third Supplemental Indenture:


 


(a)Notwithstanding
any other term of any Senior Notes, the Indenture, or any other agreements, arrangements, or understandings between the Company
and any Holder or Beneficial Owner, by its acquisition of the Senior Notes, each Holder (including each Beneficial Owner) of the
Senior Notes acknowledges, accepts, agrees to be bound by and consents to the exercise of any U.K. bail-in power by the relevant
U.K. resolution authority that may result in (i) the reduction or cancellation of all, or a portion, of the principal amount of,
or interest on, the Senior Notes; (ii) the conversion of all, or a portion, of the principal amount of, or interest on, the Senior
Notes into ordinary shares or other securities or other obligations of the Company or another person; and (iii) the amendment
or alteration of the maturity of the Senior Notes, or amendment of the amount of interest due on the Senior Notes, or the dates
on which interest becomes payable, including by suspending payment for a temporary period; which U.K. bail-in power may be exercised
by means of variation of the terms of the Senior Notes solely to give effect to the exercise by the relevant U.K. resolution authority
of such U.K. bail-in power. Each Holder (including each Beneficial Owner) of the Senior Notes further acknowledges and agrees
that the rights of the Holders and/or Beneficial Owners under the Senior Notes are subject to, and will be varied, if necessary,
solely to give effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.


 






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(b)By
its acquisition of the Senior Notes each Holder (including each Beneficial Owner) of the Senior Notes:


 


(i)acknowledges
and agrees that upon the exercise of the U.K. bail-in power by the relevant U.K. resolution authority it shall not give rise to
a Default or an Event of Default for purposes of Section 315(b) (Notice of Default) and Section 315(c) (Duties of the
Trustee in Case of Default) of the Trust Indenture Act;


 


(ii)to
the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate a suit
against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes, or
abstains from taking, in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution
authority with respect to the Senior Notes; and


 


(iii)acknowledges
and agrees that, upon the exercise of any U.K. bail-in power by the relevant U.K. resolution authority, (x) the Trustee shall
not be required to take any further directions from holders of the Senior Notes under Section 5.12 of the Base Indenture, and
(y) neither the Base Indenture nor this Third Supplemental Indenture shall impose any duties upon the Trustee whatsoever with
respect to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.


 


(c)Notwithstanding
paragraph (b), if, following the completion of the exercise of the U.K. bail-in power by the relevant U.K. resolution authority,
the Senior Notes remain outstanding (for example, if the exercise of the U.K. bail-in power results in only a partial write-down
of the principal of the Senior Notes), then the Trustee’s duties under the Indenture shall remain applicable with respect
to the Senior Notes following such completion to the extent that the Company and the Trustee shall agree pursuant to a supplemental
indenture or an amendment to this Third Supplemental Indenture.


 


(d)By
its acquisition of the Senior Notes, each Holder and Beneficial Owner shall be deemed to have:


 


(i)consented
to the exercise of any U.K. bail-in power as it may be imposed without any prior notice by the relevant U.K. resolution authority
of its decision to exercise such power with respect to the Senior Notes; and


 


(ii)authorized,
directed and requested DTC and any direct participant in DTC or other intermediary through which it holds such Senior Notes to
take any and all necessary action, if required, to implement the exercise of any U.K. bail-in power with respect to the


 






    7 


     

    

 


Senior
Notes as it may be imposed, without any further action or direction on the part of such Holder or Beneficial Owner.


 


(e)Upon
the exercise of the U.K. bail-in power by the relevant U.K. resolution authority with respect to the Senior Notes, the Company
shall provide a written notice to DTC as soon as practicable regarding such exercise of the U.K. bail-in power for purposes of
notifying Holders of such occurrence. The Company shall also deliver a copy of such notice to the Trustee for information purposes.


 


(f)No
repayment of the principal amount of the Senior Notes or payment of interest on the Senior Notes shall become due and payable
after the exercise of any U.K. bail-in power by the relevant U.K. resolution authority unless, at the time that such repayment
or payment, respectively, is scheduled to become due, such repayment or payment would be permitted to be made by the Company under
the laws and regulations of the United Kingdom and the European Union applicable to the Company and the Group.


 


(g)If
the Company has elected to redeem the Senior Notes but prior to the payment of the redemption amount with respect to such redemption
the relevant U.K. resolution authority exercises its U.K. bail-in power with respect to any Senior Notes, the relevant redemption
notices shall be automatically rescinded and shall be of no force and effect, and no payment of the redemption amount will be
due and payable.


 


(h)Any
Holder (including each Beneficial Owner) that acquires Senior Notes in the secondary market shall be deemed to acknowledge and
agree to be bound by and consent to the same provisions specified in the Indenture to the same extent as the Holders and Beneficial
Owners of the Senior Notes that acquire the Senior Notes upon their initial issuance, including, without limitation, with respect
to the acknowledgement and agreement to be bound by and consent to the terms of the Senior Notes related to the U.K. bail-in power.


 


Article
5

MISCELLANEOUS


 


Section 5.01.Effect
of Supplemental Indenture. Upon the execution and delivery of this Third Supplemental Indenture by the Company and the Trustee,
and the delivery of the documents referred to in ‎Section 5.02 herein, the Base Indenture shall be amended and supplemented
in accordance herewith, and this Third Supplemental Indenture shall form a part of the Base Indenture for all purposes in respect
of the Senior Notes.


 


Section 5.02.Other
Documents to Be Given to the Trustee. As specified in Section 9.03 of the Base Indenture and subject to the provisions of
Section 6.03


 






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of the Base Indenture, the Trustee shall be entitled to receive an Officer’s Certificate and an Opinion of
Counsel stating the recitals contained in Section 1.02 of the Base Indenture, and in the case of such Opinion of Counsel, that
this Third Supplemental Indenture is permitted by the Base Indenture, conforms to the requirements of the Trust Indenture Act,
and (subject to Section 1.03 of the Base Indenture) constitutes valid and binding obligations of the Company enforceable in accordance
with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts
of reasonableness and equitable principles of general applicability and may be subject to possible judicial or regulatory actions
giving effect to governmental actions or foreign laws affecting creditors’ rights, as conclusive evidence that this Third
Supplemental Indenture complies with the applicable provisions of the Base Indenture.


 


Section 5.03.Confirmation
of Indenture. The Base Indenture and this Third Supplemental Indenture with respect to the Senior Notes, is in all respects
ratified and confirmed, and the Base Indenture, this Third Supplemental Indenture and all indentures supplemental thereto shall,
in respect of the Senior Notes, be read, taken and construed as one and the same instrument. This Third Supplemental Indenture
constitutes an integral part of the Base Indenture with respect to the Senior Notes. In the event of a conflict between the terms
and conditions of the Base Indenture and the terms and conditions of this Third Supplemental Indenture, the terms and conditions
of this Third Supplemental Indenture shall prevail with respect to the Senior Notes.


 


Section 5.04.Concerning
the Trustee. The Trustee does not make any representations as to the validity or sufficiency of this Third Supplemental Indenture.
The recitals and statements herein are deemed to be those of the Company and not the Trustee. In entering into this Third Supplemental
Indenture, the Trustee shall be entitled to the benefit of every provision of the Base Indenture relating to the conduct of or
affecting the liability of or affording protection to the Trustee.


 


Section 5.05.Governing
Law. This Third Supplemental Indenture and the Senior Notes shall be governed by and construed in accordance with the laws
of the State of New York, irrespective of conflicts of laws principles, except as stated in Section 1.12 of the Base Indenture,
and except that the authorization and execution by the Company of this Third Supplemental Indenture and the Senior Notes shall
be governed by (in addition to the laws of the State of New York relevant to execution) the respective jurisdictions of the Company
and the Trustee, as the case may be.


 


Section 5.06.Reparability.
In case any provision contained in this Third Supplemental Indenture shall be invalid, illegal or unenforceable, the validity,


 






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legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.


 


Section 5.07.Concerning
BRRD Liability. Notwithstanding and to the exclusion of any other term of this Third Supplemental Indenture or the Base Indenture
or any other agreements, arrangements, or understanding between the Company and the Trustee, the Trustee acknowledges and accepts
that a BRRD Liability arising under this Indenture with respect to the Senior Notes may be subject to the exercise of Bail-in
Powers by the Relevant Resolution Authority, and acknowledges, accepts and agrees to be bound by:


 


(a)the
effect of the exercise of Bail-in Powers by the Relevant Resolution Authority in relation to any BRRD Liability of the Company
to the Trustee under this Third Supplemental Indenture or the Base Indenture, that (without limitation) may include and result
in any of the following, or some combination thereof:


 


(i)the
reduction of all, or a portion, of the BRRD Liability or outstanding amounts due thereon;


 


(ii)the
conversion of all, or a portion, of the BRRD Liability into shares, other securities or other obligations of the Company or another
person (and the issue to or conferral on the Trustee of such shares, securities or obligations)


 


(iii)the
cancellation of the BRRD Liability; and/or


 


(iv)the
amendment or alteration of any interest, if applicable, thereon, the maturity or the dates on which any payments are due, including
by suspending payment for a temporary period; and


 


(b)the
variation of the terms of this Third Supplemental Indenture or the Base Indenture, as deemed necessary by the Relevant Resolution
Authority, to give effect to the exercise of Bail-in Powers by the Relevant Resolution Authority.


 


“Bail-in
Legislation” means Part I of the U.K. Banking Act 2009 and any other law, regulation, rule or requirement applicable
from time to time in the U.K. relating to the resolution of unsound or failing banks, investment firms or other financial institutions
or their affiliates (otherwise than through liquidation, administration or other insolvency proceedings).


 


“Bail-in
Powers” means any Write-down and Conversion Powers as defined in relation to the Bail-in Legislation.


 






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“BRRD”
means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms.


 


“BRRD
Liability” has the same meaning as in such laws, regulations, rules or requirements implementing the BRRD under the
applicable Bail-in Legislation.


 


“Relevant
Resolution Authority” means the resolution authority with the ability to exercise any Bail-in Powers in relation to
the Issuer or the Guarantor.


 


“Write-down
and Conversion Powers” means the powers under the Bail-In Legislation to cancel, transfer or dilute shares issued by
a person that is a bank or investment firm or affiliate of a bank or investment firm, to cancel, reduce, modify or change the
form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of
that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or
instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability.


 


Section 5.08.FATCA.
The Paying Agent shall be entitled to make any FATCA Withholding, and neither the Company nor the Paying Agent shall have any
obligation to gross-up any payment hereunder or under the Senior Notes as a result of any such FATCA Withholding. Each of the
Company and the Paying Agent shall provide to the other party, upon request, such forms and documentation as may be reasonably
necessary for the other party to determine whether it has any withholding or reporting obligations pursuant to FATCA in relation
to the Senior Notes, provided that the requested information is within the first party’s possession and such party is legally
entitled to provide such information.


 


“FATCA”
means (i) sections 1471 to 1474 of the U.S. Internal Revenue Code of 1986, as amended, any U.S. Treasury regulations promulgated
thereunder, or any official guidance with respect thereto; (ii) any intergovernmental agreement between the United States and
any other jurisdiction which facilitates the implementation of clause (i), or any law, regulation or other official guidance enacted
or issued in any jurisdiction to implement such intergovernmental agreement; or (iii) any agreement entered into with the U.S.
Internal Revenue Service, the U.S. Treasury or any governmental or taxation authority in any other jurisdiction for the implementation
of clauses (i) or (ii).


 






    11 


     

    

 


“FATCA
Withholding” means any amount required to be deducted or withheld from any payment under the Senior Notes or this Third
Supplemental Indenture pursuant to FATCA.


 


Section 5.09.Counterparts.
This Third Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one and the same instrument.


 


[Signature
Page Follows]


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




    


    


    


 


IN WITNESS
WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly executed as of the date first written above.


 


	 	THE ROYAL BANK OF SCOTLAND GROUP PLC, as Company
	 	 
	 	 
	 	By:	/s/ Ian Merriman
	 	 	Name: Ian Merriman
	 	 	Title: Head of Balance Sheet Management




 







 


	 	THE BANK OF NEW YORK MELLON, LONDON BRANCH, as Trustee
	 	 
	 	 
	 	By:	/s/ Thomas Vanson
	 	 	Name: Thomas Vanson
	 	 	Title: Authorized Signatory



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 





 




    
[Signature Page to Third Supplemental Indenture]


    


    


 


EXHIBIT
A


 


FORM OF
SENIOR NOTE


 


THIS SECURITY
IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS
SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.


 


CUSIP
No. [•]





ISIN
No. [•]


 


THE ROYAL
BANK OF SCOTLAND GROUP plc


 


[●]%
Senior Notes due [●]


 


		No.[●]	$[●]



 


THE ROYAL
BANK OF SCOTLAND GROUP plc (herein called the “Company,” which term includes any successor person under the
Indenture (as defined on the reverse hereof)), for value received, hereby promises to pay to CEDE & CO., or registered assignees,
the principal sum of $[●] ([●] million dollars) on [●] or on such earlier date as the principal hereof may become
due in accordance with the terms hereof and to pay interest thereon semi-annually in arrear on [●] and [●] of each
year, commencing [●], and ending on [●] (each, an “Interest Payment Date”). Interest so payable
on any Interest Payment Date shall be paid to the holder in whose name this Senior Note is registered on the [●] day of
[●] and [●] of each year (each a “Regular Record Date”). Any interest which is payable, but is
not punctually paid or duly provided for, on any Interest Payment Date is herein called “Default Interest”.
Default Interest shall cease to be payable to the registered holder on the relevant Regular Record Date by virtue then of having
been such holder, and such Default Interest may be paid by the Company, at its election in each case, as provided in clause (x)
or (y) below: (x) the Company may elect to make payment of any Default Interest to registered holders at the close of business
on a Special Record Date (a “Special Record Date”) for the payment of such Default Interest, such Special Record
Date to be fixed in accordance with Section


 






    
(Face of Security continued on next page)


    


    

 


3.07(a) of the Indenture or, (y) the Company may make payment of any Default Interest
in any other lawful manner not inconsistent with the requirements of any securities exchange on which this Note may be listed,
and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed
payment, such manner of payment shall be deemed practicable by the Trustee.


 


Interest
shall accrue on this Senior Note from day to day from the date of issuance hereof or from the most recent Interest Payment Date
at the rate of [●]% per annum, until the principal amount hereof is paid or made available for payment.


 


Payments
of interest on this Senior Note shall be computed on the basis of a 360-day year divided into twelve months of 30 days each and,
in the case of an incomplete month, the actual number of days elapsed in such period.


 


Payment of
the principal amount of, and any interest on, this Senior Note will be made in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts. Such payment shall be made to the Holder including
through a Paying Agent of the Company outside the United Kingdom for collection by the Holder. If the date for payment of the
principal amount hereof or interest thereon is not a Business Day, then (subject as provided in the Indenture) such payment shall
be made on the next succeeding Business Day with the same force and effect as if made on such date for payment and without any
interest or other payment in respect of such delay.


 


Prior to
due presentment of this Senior Note for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Senior Note is registered as the owner of such Senior Note for the purpose of
receiving payment of principal and interest, if any, on such Senior Note and for all other purposes whatsoever, whether or not
such Senior Note be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected
by notice to the contrary.


 


Reference
is hereby made to the further provisions of this Senior Note set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.


 


Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this
Senior Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.


 


Notwithstanding
any other term of any Senior Notes, the Indenture, or any other agreements, arrangements, or understandings between the Company
and any Holder or


 






    
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Beneficial Owner, by its acquisition of the Senior Notes, each Holder (including each Beneficial Owner) of the
Senior Notes acknowledges, accepts, agrees to be bound by and consents to the exercise of any U.K. bail-in power by the relevant
U.K. resolution authority that may result in (i) the reduction or cancellation of all, or a portion, of the principal amount of,
or interest on, the Senior Notes; (ii) the conversion of all, or a portion, of the principal amount of, or interest on, the Senior
Notes into ordinary shares or other securities or other obligations of the Company or another person; and (iii) the amendment
or alteration of the maturity of the Senior Notes, or amendment of the amount of interest due on the Senior Notes, or the dates
on which interest becomes payable, including by suspending payment for a temporary period; which U.K. bail-in power may be exercised
by means of variation of the terms of the Senior Notes solely to give effect to the exercise by the relevant U.K. resolution authority
of such U.K. bail-in power. Each Holder (including each Beneficial Owner) of the Senior Notes further acknowledges and agrees
that the rights of the Holders and/or Beneficial Owners under the Senior Notes are subject to, and will be varied, if necessary,
solely to give effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.


 


For these
purposes, “U.K. bail-in power” means any write-down, conversion, transfer, modification or suspension power
existing from time to time under any laws, regulations, rules or requirements relating to the resolution of banks, banking group
companies, credit institutions and/or investment firms incorporated in the United Kingdom in effect and applicable in the United
Kingdom to the Company or other members of the Group, including but not limited to any such laws, regulations, rules or requirements
which are implemented, adopted or enacted within the context of a European Union directive or regulation of the European Parliament
and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms and/or
within the context of a U.K. resolution regime under the Banking Act 2009, as the same has been or may be amended from time to
time (whether pursuant to the U.K. Financial Services (Banking Reform) Act 2013 (the “Banking Reform Act 2013”),
secondary legislation or otherwise, the “Banking Act”), pursuant to which any obligations of a bank, banking
group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled, modified, transferred
and/or converted into shares or other securities or obligations of the obligor or any other person (or suspended for a temporary
period) or pursuant to which any right in a contract governing such obligations may be deemed to have been exercised, “relevant
U.K. resolution authority” means any authority with the ability to exercise a U.K. bail-in power.


 




    
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IN WITNESS
WHEREOF, the Company has caused this Senior Note to be duly executed.


 


Dated: September 12, 2016


 






	 	Executed by 

    

    THE ROYAL BANK OF SCOTLAND GROUP PLC
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:    Authorized
                                Signatory







 






	 	 	 
	 	 	Name:
	 	 	Title:Authorized Signatory



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 











    


    


    

 


CERTIFICATE
OF AUTHENTICATION


 


This is one
of the Senior Notes of the series designated herein referred to in the within-mentioned Indenture.


 


Dated: September 12, 2016


 






	 	THE BANK OF NEW YORK MELLON, LONDON BRANCH
	 	as Trustee
	 	 
	 	By: 	
	 	 	Authorized Signatory



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 








    


    


    


 


[Reverse
of Note]


 


This
note is one of a duly authorized issue of securities of the Company (herein called the “Senior Notes”) issued
and to be issued in one or more series under an amended and restated Indenture dated as of
September 13, 2011 (the “Amended and Restated Indenture”), as amended and supplemented in respect of all series
of senior debt securities issued thereunder, by the First Supplemental Indenture dated as of April 1, 2014 (the “First
Supplemental Indenture”) and the Second Supplemental Indenture dated as of April 5, 2016 (the “Second Supplemental
Indenture” and, together with the Amended and Restated Indenture and the First Supplemental Indenture, the “Base
Indenture”) and as amended and supplemented by the Third Supplemental Indenture dated as of September [•], 2016
(the “Third Supplemental Indenture” and, together with the Base Indenture, the “Indenture”),
in each case among the Company, as issuer, and The Bank of New York Mellon,
acting through its London Branch as trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture). Reference is hereby made to the Indenture and all indentures supplemental thereto for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders
of the Senior Notes and of the terms upon which the Senior Notes are, and are to be, authenticated and delivered.


 


This Senior
Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $[·].


 


The Company
may, from time to time, without the consent of the holders of the Senior Notes, issue Additional Senior Debt Securities having
the same ranking and interest rate, maturity date, redemption terms and other terms as the Senior Notes of this series, except
for the price to the public and issue date. Any such Additional Senior Debt Securities, together with the Senior Notes of this
series, will constitute a single series of Senior Notes under the Indenture and shall be included in the definition of “Senior
Debt Securities” in the Indenture where the context requires; provided, however, that if such Additional Senior Debt Securities
are not fungible with the Outstanding Senior Notes of this series for U.S. federal income tax purposes, the Additional Senior
Debt Securities must have a CUSIP, ISIN and/or other identifying number (as the case may be) different from those used for the
Outstanding Senior Notes of this series.


 


The Senior
Notes will initially be issued in the form of one or more global Senior Notes (each, a “Global Senior Note”).
Except as provided in the Indenture, a Global Senior Note shall not be exchangeable for one or more definitive Senior Notes.


 


The Senior
Notes of this series will constitute direct, unconditional, unsecured and unsubordinated obligations of the Company, as described
herein, ranking pari passu without any preference among themselves, and equally with all other outstanding unsecured and
unsubordinated obligations, present and future of the Company, except such obligations as are preferred by operation of law.


 






    
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If an Event
of Default with respect to the Senior Notes of this series shall have occurred and be continuing, the Trustee or the Holder or
Holders of not less than 25% in aggregate principal amount of the Outstanding Senior Notes of this series may declare the principal
amount of, and any accrued interest on, all the Senior Notes to be due and payable immediately, in the manner, with the effect
and subject to the conditions provided in the Indenture.


 


If a Default
with respect to the Senior Notes of this series shall have occurred and be continuing, the Trustee may in its discretion proceed
to protect and enforce its rights and the rights of Holders of Senior Notes by such appropriate judicial proceedings as the Trustee
shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement
in the Indenture or in aid of the exercise of any power granted thereon, or to enforce any other proper remedy, including the
institution of proceedings in Scotland (but not elsewhere) for the winding up of the Company.


 


All amounts
of principal, premium, if any, and interest on the Senior Notes will be paid by the Company without deduction or withholding for,
or on account of, any and all present and future income, stamp and other taxes, levies, imposts, duties, charges, fees, deductions
or withholdings now or hereafter imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom or any
political subdivision or any authority thereof or therein having the power to tax (the “U.K. Taxing Jurisdiction”),
unless such deduction or withholding is required by law.


 


If deduction
or withholding of any such taxes, levies, imposts, duties, charges, fees, deductions or withholdings shall at any time be required
by the U.K. Taxing Jurisdiction, the Company will pay such additional amounts with respect to the principal of and premium, if
any, and interest on the Senior Notes (“Additional Amounts”) as may be necessary in order that the net amounts
paid to the Holders of the Senior Notes, after such deduction or withholding, shall equal the amounts of such payments which would
have been payable in respect of such Senior Notes had no such deduction or withholding been required; provided, however, that
the foregoing will not apply to any such tax, levy, impost, duty, charge, fee, deduction or withholding that would not have been
payable or due but for the fact that:


 


(i) the Holder
or the beneficial owner of the Senior Note is a domiciliary, national or resident of, or engaging in business or maintaining a
permanent establishment or physically present in, the U.K. Taxing Jurisdiction or otherwise has some connection with the U.K.
Taxing Jurisdiction other than the mere holding or ownership of a Senior Note, or the collection of the payment on any Senior
Note,


 


(ii) except
in the case of a winding-up of the Company in the United Kingdom, the Senior Note is presented (where presentation is required)
for payment in the United Kingdom,


 






    
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(iii) the
Senior Note is presented (where presentation is required) for payment more than 30 days after the date payment became due or was
provided for, whichever is later, except to the extent that the Holder would have been entitled to such Additional Amount on presenting
(where presentation is required) the Senior Note for payment at the close of such 30 day period,


 


(iv) the
Holder or the beneficial owner of the Senior Note or the payment on such Senior Note failed to comply with a request by the Company
or its liquidator or other authorized person addressed to the Holder (x) to provide information concerning the nationality, residence
or identity of the Holder or such beneficial owner or (y) to make any declaration or other similar claim to satisfy any requirement,
which in the case of (x) or (y), is required or imposed by a statute, treaty, regulation or administrative practice of the U.K.
Taxing Jurisdiction as a precondition to exemption or relief from all or part of such deduction or withholding,


 


(v) the withholding
or deduction is required to be made pursuant to European Council Directive 2003/48/EC on the taxation of savings income or any
Directive amending, supplementing or replacing such Directive, or any law implementing or complying with, or introduced in order
to conform to, such Directive or Directives,


 


(vi) the
withholding or deduction is required to be made pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986,
as amended, any agreement with the U.S. Treasury entered into with respect thereto, any U.S. Treasury regulation issued thereunder
or any other official interpretations or guidance issued with respect thereto; any intergovernmental agreement entered into with
respect thereto, or any law, regulation, or other official interpretation or guidance promulgated pursuant to such an intergovernmental
agreement,


 


(vii) the
Senior Note is presented (where presentation is required) for payment by or on behalf of a Holder who would have been able to
avoid such withholding or deduction by presenting (where presentation is required) the Senior Note to another paying agent in
a Member State of the European Union, or


 


(viii) any
combination of subclauses (i) through (vii) above,


 


nor shall
Additional Amounts be paid with respect to a payment on the Senior Notes to any Holder who is a fiduciary or partnership or person
other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the U.K. Taxing
Jurisdiction to be included in the income for tax purposes of a beneficiary or settlor with respect to such fiduciary or a member
of such partnership or a beneficial owner who would not have been entitled to such Additional Amounts, had it been the Holder.


 


Whenever
in the Indenture there is mentioned, in the context of Senior Notes, the payment of the principal, premium, if any, or interest
on, or in respect of, any Senior


 






    
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Notes, such mention shall be deemed to include mention of the payment of Additional Amounts provided
for in this Section to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof pursuant
to the provisions of the foregoing paragraph and as if express mention of the payment of Additional Amounts (if applicable) were
made in any provisions hereof where such express mention is not made.


 


The Company
will have the option to redeem the Senior Notes in whole but not in part, on not less than 5 business days nor more than 60 calendar
days’ notice, on any Interest Payment Date, at a redemption price equal to 100% of the principal amount, together with accrued
but unpaid interest, if any, in respect of the Senior Notes to the date fixed for redemption, if, at any time, the Company shall
determine that as a result of a change in or amendment to the laws or regulations of the U.K. Taxing Jurisdiction (including any
treaty to which a U.K. Taxing Jurisdiction is a party), or any change in the official application or interpretation of such laws
or regulations (including a decision of any court or tribunal) which change or amendment becomes effective on or after [●]:


 


(a)in
making any payment under the Senior Notes, including any payment in respect of principal or premium, if any, or interest, the
Company has or will or would on the next Interest Payment Date become obligated to pay Additional Amounts;


 


(b)payment
of interest on the next Interest Payment Date in respect of any of the Senior Notes would be treated as a “distribution”
within the meaning of Section 1000 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being); or


 


(c)on
the next Interest Payment Date the Company would not be entitled to claim a deduction in respect of such payment of interest in
computing its United Kingdom taxation liabilities (or the value of such deduction to the Company would be materially reduced).


 


In any case
where the Company shall determine that as a result of any change in the official application or interpretation of any laws or
regulations it is entitled to redeem the Senior Notes, the Company shall be required to deliver to the Trustee prior to the giving
of any notice of redemption a written legal opinion of independent United Kingdom counsel of recognized standing (selected by
the Company) in a form satisfactory to the Trustee confirming that the relevant change in the official application or interpretation
of such laws or regulations has occurred and that the Company is entitled to exercise its right of redemption.


 


If the Company
elects to redeem the Senior Notes of this series, the Senior Notes will cease to accrue interest from the date of redemption,
provided the redemption price has been paid in accordance with the Indenture.


 






    
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Upon
payment of (i) the amount of principal
so declared due and payable and (ii) accrued and unpaid interest, all of the Company’s obligations in respect of the payment
of the principal of, and accrued and unpaid interest on, the Senior Notes of this series shall terminate.


 


The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Senior Debt Securities of each series to be affected thereby by the Company
and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Senior Debt Securities
at the time outstanding of each such series. The Indenture also contains provisions permitting the Holders of a majority in aggregate
principal amount of the outstanding Senior Debt Securities of each series, on behalf of the Holders of all Senior Debt Securities
of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past Events of Default
under the Indenture and their consequences. Any such consent or waiver by the Holder of this Senior Note shall be conclusive and
binding upon such Holder and upon all future Holders of this Senior Note and of any Senior Note issued in exchange herefor or
in lieu hereof, whether or not notation of such consent or waiver is made upon this Senior Note.


 


No reference
herein to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay, if and when due and payable, the principal of, and interest on, this Senior Note
at the times, place and rate, and in the coin or currency, herein prescribed.


 


As set forth
in, and subject to, the provisions of the Indenture, no Holder of any Senior Note of this series will have the right to institute
any proceeding with respect to the Indenture, this Senior Note or any remedy thereunder; provided, however, that such limitations
do not apply to a suit instituted by the Holder hereof for the enforcement of payment of the principal or interest as and when
the same shall have become due and payable in accordance with the terms hereof and the Indenture.


 


The Holders
of Senior Notes by their acceptance thereof will be deemed to have waived any right of set-off or counterclaim or combination
of accounts with respect to the Senior Notes or the Indenture (or between the obligations under or in respect of any Senior Notes
and any liability owed by a Holder to the Company) that they might otherwise have against the Company, whether before or during
a winding up of the Company.


 


Notwithstanding
any other term of any Senior Notes, the Indenture, or any other agreements, arrangements, or understandings between the Company
and any Holder or Beneficial Owner, by its acquisition of the Senior Notes, each Holder (including each Beneficial Owner) of the
Senior Notes acknowledges, accepts, agrees to be bound by and consents to the exercise of any U.K. bail-in power by the relevant
U.K. resolution authority that may result in (i) the reduction or cancellation of all, or a portion, of the


 






    
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principal amount of,
or interest on, the Senior Notes; (ii) the conversion of all, or a portion, of the principal amount of, or interest on, the Senior
Notes into ordinary shares or other securities or other obligations of the Company or another person; and (iii) the amendment
or alteration of the maturity of the Senior Notes, or amendment of the amount of interest due on the Senior Notes, or the dates
on which interest becomes payable, including by suspending payment for a temporary period; which U.K. bail-in power may be exercised
by means of variation of the terms of the Senior Notes solely to give effect to the exercise by the relevant U.K. resolution authority
of such U.K. bail-in power. Each Holder (including each Beneficial Owner) of the Senior Notes further acknowledges and agrees
that the rights of the Holders and/or Beneficial Owners under the Senior Notes are subject to, and will be varied, if necessary,
solely to give effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.


 


For these
purposes, “U.K. bail-in power” means any write-down, conversion, transfer, modification or suspension power
existing from time to time under any laws, regulations, rules or requirements relating to the resolution of banks, banking group
companies, credit institutions and/or investment firms incorporated in the United Kingdom in effect and applicable in the United
Kingdom to the Company or other members of the Group, including but not limited to any such laws, regulations, rules or requirements
which are implemented, adopted or enacted within the context of a European Union directive or regulation of the European Parliament
and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms and/or
within the context of a U.K. resolution regime under the Banking Act 2009, as the same has been or may be amended from time to
time (whether pursuant to the U.K. Financial Services (Banking Reform) Act 2013 (the “Banking Reform Act 2013”),
secondary legislation or otherwise, the “Banking Act”), pursuant to which any obligations of a bank, banking
group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled, modified, transferred
and/or converted into shares or other securities or obligations of the obligor or any other person (or suspended for a temporary
period) or pursuant to which any right in a contract governing such obligations may be deemed to have been exercised, “relevant
U.K. resolution authority” means any authority with the ability to exercise a U.K. bail-in power.


 


By its acquisition
of the Senior Notes each Holder (including each Beneficial Owner) of the Senior Notes:


 


(a)acknowledges
and agrees that upon the exercise of the U.K. bail-in power by the relevant U.K. resolution authority it shall not give rise to
a Default or an Event of Default for purposes of Section 315(b) (Notice of Default) and Section 315(c) (Duties of the Trustee
in Case of Default) of the Trust Indenture Act;


 


(b)to
the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate a suit
against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes, or


 






    
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abstains from taking, in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution
authority with respect to the Senior Notes; and


 


(c)acknowledges
and agrees that, upon the exercise of any U.K. bail-in power by the relevant U.K. resolution authority, (a) the Trustee shall
not be required to take any further directions from holders of the Senior Notes under Section 5.12 of the Base Indenture, and
(b) neither the Base Indenture nor the Third Supplemental Indenture shall impose any duties upon the Trustee whatsoever with respect
to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.


 


Notwithstanding
the foregoing, if, following the completion of the exercise of the U.K. bail-in power by the relevant U.K. resolution authority,
the Senior Notes remain outstanding (for example, if the exercise of the U.K. bail-in power results in only a partial write-down
of the principal of the Senior Notes), then the Trustee’s duties under the Indenture shall remain applicable with respect
to the Senior Notes following such completion to the extent that the Company and the Trustee shall agree pursuant to a supplemental
indenture or an amendment to the Third Supplemental Indenture.


 


The exercise
of any U.K. bail-in power by the relevant U.K. resolution authority shall not constitute a default or an Event of Default under
Section 5.01 of the Indenture.


 


By its acquisition
of the Senior Notes, each Holder and Beneficial Owner shall be deemed to have:


 


(i)consented
to the exercise of any U.K. bail-in power as it may be imposed without any prior notice by the relevant U.K. resolution authority
of its decision to exercise such power with respect to the Senior Notes and


 


(ii)authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it holds such Senior
Notes to take any and all necessary action, if required, to implement the exercise of any U.K. bail-in power with respect to the
Senior Notes as it may be imposed, without any further action or direction on the part of such Holder or Beneficial Owner.


 


No repayment
of the principal amount of the Senior Notes or payment of interest on the Senior Notes shall become due and payable after the
exercise of any U.K. bail-in power by the relevant U.K. resolution authority unless, at the time that such repayment or payment,
respectively, is scheduled to become due, such repayment or payment would be permitted to be made by the Company under the laws
and regulations of the United Kingdom and the European Union applicable to the Company and the Group.


 


Upon the
exercise of the U.K. bail-in power by the relevant U.K. resolution authority with respect to the Senior Notes, the Company shall
provide a written notice to DTC as soon as practicable regarding such exercise of the U.K. bail-in power for


 






    
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purposes of notifying
Holders of such occurrence. The Company shall also deliver a copy of such notice to the Trustee for information purposes.


 


If the Company
has elected to redeem the Senior Notes but prior to the payment of the redemption amount with respect to such redemption the relevant
U.K. resolution authority exercises its U.K. bail-in power with respect to any Senior Notes, the relevant redemption notices shall
be automatically rescinded and shall be of no force and effect, and no payment of the redemption amount will be due and payable.


 


Any Holder
(including each Beneficial Owner) that acquires Senior Notes in the secondary market shall be deemed to acknowledge and agree
to be bound by and consent to the same provisions specified in the Indenture to the same extent as the Holders and Beneficial
Owners of the Senior Notes that acquire the Senior Notes upon their initial issuance, including, without limitation, with respect
to the acknowledgement and agreement to be bound by and consent to the terms of the Senior Notes related to the U.K. bail-in power.


 


This Senior
Note will be governed by the laws of the State of New York.


 


Unless otherwise
defined herein, all terms used in this Senior Note which are defined in the Indenture shall have the meanings assigned to them
in the Indenture.