Document:

EXHIBIT 10.1

THIRD AMENDED AND RESTATED

 EMPLOYMENT AGREEMENT

This Third Amended and Restated Employment Agreement (the "Agreement") dated October 3, 2016 between Meridian Bioscience, Inc., an Ohio corporation ("Meridian") and John A. Kraeutler, Chief Executive Officer ("Kraeutler").

W I T N E S S E T H :

WHEREAS, Meridian and Kraeutler desire to amend and restate a Second Amended and Restated Employment Agreement dated January 15, 2015, and an Employment Agreement dated February 15, 2001 as amended on December 29, 2008, further amended pursuant to an Amended and Restated Employment Agreement dated June 12, 2012 and further amended pursuant to Amendment No. 1 to Amended and Restated Employment Agreement dated September 23, 2014 and Amendment No. 2 to Amended and Restated Employment Agreement dated December 31, 2014; and

WHEREAS, Meridian and Kraeutler are party to a Supplemental Benefit Agreement dated June 12, 2012 (which superseded a Salary Continuation Agreement dated August 3, 2011 between Meridian and Kraeutler) and Amended pursuant to an Amendment No. 1 to Supplemental Benefit Agreement dated September 23, 2014 (together the "Supplemental Agreement"), and Meridian and Kraeutler desire to incorporate the terms and conditions of the Supplemental Agreement into this Agreement, and terminate and supersede the Supplemental Agreement by this Agreement;

WHEREAS, Meridian wishes to assure itself of the continuing services of Kraeutler for the period hereinafter provided, and Kraeutler is willing to be employed by Meridian for such period, upon the terms and conditions provided in this Agreement.

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt of which is mutually acknowledged, Meridian and  Kraeutler agree as follows:

1. Employment.  Meridian hereby employs Kraeutler, and Kraeutler shall continue to serve Meridian, on the terms and conditions set forth herein.

2. Term.

2.1 Subject to the provisions for earlier termination as hereinafter provided, Kraeutler shall continue to be employed for the period commencing on the date hereof and ending on September 30, 2018 (the "Term").

2.2 Provided that there does not occur an earlier termination event pursuant to Section 7 below, after the expiration of the Term, Kraeutler shall be available to consult with Meridian to assist his successor and Meridian with transition of duties for a period of twelve (12) months, at times and for matters mutually agreed and reasonably requested by Meridian (the "Consulting Period"); provided, however, the level of service as a consultant is not intended to be more than twenty percent (20%) of the average level of service that Kraeutler provided for the 36-month period prior to the expiration of the Term.  During the Consulting Period, Kraeutler shall receive payments equal to 27.5% of Kraeutler's then current Base Salary (as defined in Section 4.1), for the Consulting Period, as well as receive reimbursement of out-of-pocket expenses, both paid at the same times as Meridian's current payroll practices, regardless of the amount of consulting services requested by Meridian and provided by Kraeutler, if any.  Kraeutler shall not be eligible for an Annual Performance Bonus or other benefits or payments during the Consulting Period, except for (i) the continuation of an automobile lease (or then applicable car allowance benefit) and (ii) those benefits and payments  as expressly set forth herein that survive the Term, including, without limitation, Sections 6.1, 6.3.1 and 6.4.  Kraeutler will, however, serve as Chairman of the Board during the Consulting Period, if nominated by the current Board of Directors, and elected by the Meridian Shareholders, and the Board determines it to be in the best interest of Meridian for Kraeutler to serve in such capacity as Chairman of the Board.

3. Position and Duties; Place of Performance.

3.1 Kraeutler shall continue to serve as Chairman and Chief Executive Officer of Meridian and shall perform all duties customarily attendant to these positions and shall include those duties reasonably assigned to Kraeutler from time-to-time by the Board of Directors of Meridian.

3.2 Kraeutler shall devote substantially all of his working time and effort to Meridian and shall not, without Meridian's prior written consent, furnish like or similar services to anyone else or engage directly or indirectly in any activity adverse to Meridian's interests.  Kraeutler will promote and develop business opportunities relating to Meridian's current and anticipated future business that come to his attention in a manner consistent with Kraeutler's duties and Meridian's best interests.

3.3 In connection with Kraeutler's employment by Meridian, Kraeutler will be based at the principal place of business of Meridian in Cincinnati, Ohio.

4. Compensation.

4.1 Base Salary.  During the Term of Kraeutler's employment with Meridian, as compensation for Kraeutler's services under this Agreement, Meridian agrees to pay to Kraeutler an annual base salary (the "Base Salary") of Six Hundred Fifty Six Thousand Five Hundred Eighteen Dollars ($656,518), which is subject to an upward adjustment by an amount equal to the average percentage increase for the Meridian executive team which occurs each November during the Term and is currently anticipated to be in the approximate three percent (3%) to five percent (5%) range. Meridian's Board of Directors shall in good faith review the Base Salary annually, taking into account changes in Kraeutler's responsibilities, increases in the cost of living, performance of Kraeutler, increases in salaries to other executives of Meridian and other pertinent factors, and may, in its reasonable discretion, increase the Base Salary.  Any increase in the Base Salary shall not serve to limit or reduce any other obligation to Kraeutler under this Agreement.  The Base Salary shall not be reduced without the express written consent of Kraeutler.  The term Base Salary as used in this Agreement shall refer to the Base Salary as so increased.

4.2 Annual Performance Bonus.  Kraeutler shall be eligible to receive an annual performance bonus as established by the Board of Directors in addition to Base Salary (the "Annual Performance Bonus").

4.3 Retention Awards.

4.3.1 Performance-Based Awards.  On the date of execution of this Agreement, Kraeutler shall receive two grants of 25,000 performance-based restricted stock units under the Meridian Bioscience, Inc. 2012 Stock Incentive Plan ("Stock Incentive Plan"), one of which shall vest in full on September 30, 2017 and the second shall vest in full on September 30, 2018 (the "Performance-Based Awards"), subject to (i) the attainment by Meridian of both its originally published revenue and earnings guidance for the respective 2017 and 2018 fiscal years, and (ii) Kraeutler being employed by Meridian through September 30, 2017 and 2018 respectively.  For example, fiscal 2016, published revenue and earnings guidance are as follows:  (a) Net Revenues between $195 million and $200 million, (b) Diluted earnings per share of $0.86 to $0.90.  The 2017 and 2018 revenue and earnings guidance shall be based upon similar criteria as those used for 2016.  For clarity, the low end of the earnings guidance range (for example 2016 $0.86) must be achieved after incorporating the expense associated with 25,000 performance-based restricted stock units.  Kraeutler shall also be eligible to receive additional grants of restricted stock units under the Stock Incentive Plan for each Extension Term.  These grants may either be time-based or performance-based, at the discretion of the Board of Directors, with the terms of vesting of any such grant to be determined by the Compensation Committee of the Board of Directors.

4.3.2 Special Incentive.  Kraeutler shall also receive (i) a grant of 50,000 non-qualified stock options on the date of execution of this Agreement vesting on September 30, 2017 so long as he is employed on such date, and (ii) a grant of 50,000 non-qualified stock options on the date of execution of this Agreement vesting on September 30, 2018 so long as he is employed on such date (the "Special Incentive Plan Options") to be granted under the Stock Incentive Plan.  The Special Incentive Plan Options shall have a three (3) year exercise right from the date of Kraeutler's termination of employment arising from Retirement (as defined in the Stock Incentive Plan), Death or Disability (as defined in Section 7.2 below).

4.3.3 Notwithstanding the above in Sections 4.3.1 and 4.3.2, upon the occurrence of a Change of Control Event (as defined below), any retention awards of restricted stock units and the Special Incentive Plan Options granted pursuant to this Section 4.3 shall immediately vest for Kraeutler.  In the event of an acquisition, divestiture, merger, restructuring or other similar event for Meridian during the 2017 or 2018 period for the Performance-Based Awards above ("an "Event"), then restructuring, purchase accounting and extraordinary charges associated with such Event as disclosed in the Company's 10-K will be added back to actual net earnings achieved to determine net earnings determining the qualification for the Performance-Based Awards.  If the Event provides accretive earnings, this will be included for purposes of determining the qualification for the Performance-Based Awards as a means to incent Kraeutler to pursue accretive acquisitions and in recognition of the significant time and effort necessary to complete such acquisitions.  Furthermore, upon completion of an Event, the interest income, if any, assumed will be adjusted to reflect cash used.

In the event a strategic acquisition (company or technology) approved by the Board is completed and such acquisition generates losses initially (e.g. a technology that requires further development prior to commercialization or a company with net losses), the losses related to the acquisition will not be considered in the calculation of the Diluted earnings per share as noted in Section 4.3.1.

4.4 Other Compensation.  In addition to compensation specified in this Agreement, Kraeutler shall be eligible to receive stock options and other compensation under Meridian's compensation plans and arrangements available from time to time to Meridian's officers.  Meridian stock options, restricted stock units and other incentive compensation subject to vesting (Award), granted to Kraeutler shall vest according to the Award agreement entered into with Kraeutler at the time of the grant of such Award; provided, however, that the Award shall fully vest upon the happening of any of the following events: Change of Control Event (as defined in Section 8.6) or termination of Kraeutler's employment without Cause (as defined in Section 7.3), due to Death or Disability (as defined in Section 7.2)  or Kraeutler's termination of employment for Good Reason (as defined in Section 7.4).

5. Expense Reimbursement. Kraeutler shall be entitled to prompt reimbursement by Meridian for all reasonable out-of-pocket expenses incurred by him in performing services under this Agreement, upon submission of such accounts and records as may be required under Meridian policy.

6. Other Benefits.

6.1 Benefit Plans and Programs.  Kraeutler shall be entitled, at Meridian's expense, to such medical, dental, hospitalization, life insurance, pension plan, profit-sharing, disability, employee benefits and such other similar employment privileges and benefits as are afforded generally from time to time to other senior officers of Meridian.

Meridian shall maintain a Medicare Advantage Plan or its equivalent health plan for Kraeutler until his death, and domestic partner (defined below), if any, for the period until the domestic partner's death, or two (2) years after Kraeutler's death, whichever event occurs first after Kraeutler's employment with Meridian ends.  To obtain these benefits, Kraeutler and domestic partner, if any, must be enrolled in Medicare Part A and B.  Kraeutler and domestic partner, if any, remain responsible for Medicare Part A and B monthly premiums and Meridian shall pay premiums related to the Medicare Advantage Plan or its equivalent.  Additionally, after Kraeutler's employment with Meridian ends, Kraeutler and his domestic partner, if any, and the survivor of them shall remain under Meridian's dental and vision plans provided to its then current employees.

Meridian shall also provide individual Long Term Care insurance policies for Kraeutler and his domestic partner, if any, subject to successful underwriting, for Kraeutler's domestic partner and no obligation to carry the long term care policy shall arise for domestic partner if unsuccessful underwriting shall occur.  The benefits provided shall not be less than Three Hundred Fifty Dollars ($350) per day and shall extend for up to a five (5) year period.  The daily benefits will increase by five percent (5%) per year.  The policy shall include a standard one hundred eighty (180) day elimination period during which time benefits are not available.  Under no circumstances shall the benefit value or policy maximum amount exceed Four Hundred Thousand Dollars ($400,000) for Kraeutler's domestic partner.

For purposes hereof, "domestic partner" means partners, whether lawfully married or not, who reside in the same residence(s) and intend to do so indefinitely, and who are not legally married. The benefit plans and programs pertaining to Kraeutler's domestic partner are available to only one domestic partner during Kraeutler's lifetime.  If domestic partner is no longer residing in the same residence(s) as Kraeutler, or two (2) years after the death of Kraeutler, all benefits shall cease.

In the event the benefits described in Section 6.1 are not available as contemplated in the Agreement or through an equivalent means, a determination of the economic equivalent of the eliminated benefit shall be made which is agreeable to Kraeutler and Meridian for Kraeutler or Kraeutler's domestic partner.  Upon payment of the economic equivalent, the obligation shall be satisfied.

6.2 Vacation.  During the Term of Kraeutler's employment with Meridian, Kraeutler shall be entitled to paid vacation time in accordance with the plans, practices, policies, and programs applicable to other senior officers of Meridian, but in no event shall such vacation time be less than six (6) weeks per year.

6.3 Fully Vested Supplemental Benefits.

6.3.1 Kraeutler shall receive One Million Two Hundred Thousand Dollars ($1,200,000) ("Total Amount") from Meridian payable in one hundred twenty (120) monthly payments of Ten Thousand Dollars ($10,000) each ("Installment Amount"), beginning on the first day of the seventh month following Kraeutler's termination of employment for any reason, or expiration of the Term, at which time Kraeutler shall receive in a single sum the first seven months of such payments.  Thereafter, commencing on the first day of the eighth month following such termination for any reason or expiration date, the payments shall continue for a period of one hundred thirteen (113) months.

In the event that Kraeutler should die subsequent to his Retirement, but prior to his receipt of the Total Amount, the unpaid balance of such monthly payments shall be discounted at the Prime Rate as quoted in The Wall Street Journal (or any successor publication or similar financial publication, as agreed) and effective as of Kraeutler's Retirement.  The discounted amount shall be paid in a single sum to the beneficiary selected by Kraeutler in the beneficiary designation form provided by Meridian. In the absence of or failure of Kraeutler to designate a beneficiary, the discounted amount shall be paid in a single sum to Kraeutler's estate.  For purposes of this paragraph, the single sum amount shall be paid to the beneficiary selected by Kraeutler, or paid to Kraeutler's estate, as the case may be, on the first day of the first month following the month of Kraeutler's death, in accordance with the terms hereof.

6.3.2 Restrictions on Funding.  Meridian shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Section 6.3. Kraeutler, his beneficiaries or any successor in interest to him shall be and remain simply a general creditor of Meridian in the same manner as any other creditor having a general claim for matured and unpaid compensation.

Meridian reserves the absolute right, in its sole discretion, to either fund the obligations undertaken by this Section 6.3 or to refrain from funding the same and to determine the extent, nature, and method of such funding.

Should Meridian elect to fund the Total Amount, in whole or in part, through the purchase of life insurance, mutual funds, disability policies or annuities, Meridian reserves the absolute right, in its sole discretion, to terminate such funding at any time, in whole or in part. At no time shall Kraeutler be deemed to have any lien nor right, title or interest in or to any specific funding investment or to any assets of Meridian.

If Meridian elects to invest in a life insurance, disability or annuity policy upon the life of Kraeutler, then Kraeutler shall assist Meridian by freely submitting to a physical exam and supplying such additional information necessary to obtain such insurance or annuities.

6.3.3 Alienability and Assignment Prohibition.  Except to the extent provided below, neither Kraeutler, his widow or domestic partner nor any other beneficiary under this Agreement shall have any power or right to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any of the benefits payable hereunder nor shall any of said benefits be subject to seizure for the payment of any debts, judgments, alimony or separate maintenance owed by Kraeutler or his beneficiary, nor be transferable by operation of law in the event of bankruptcy, insolvency or otherwise. In the event Kraeutler or any beneficiary attempts assignment, commutation, hypothecation, transfer or disposal of the benefits hereunder, Meridian's liabilities shall forthwith cease and terminate. Notwithstanding the preceding prohibition, in the event Kraeutler and his lawful spouse part, the value of the benefits payable hereunder may be subject to the division for the benefit of Kraeutler's lawful spouse pursuant to a divorce decree or other similar domestic relations order.

6.4 Life Insurance.  Kraeutler is the owner and beneficiary of a life insurance policy with a death benefit of One Million Dollars ($1,000,000) and a life insurance policy with a death benefit of Three Hundred Thirty-Two Thousand Dollars ($332,000) (the "Policies") which are maintained by Meridian at Meridian's cost.  Upon expiration or termination of this Agreement for any reason, Meridian will keep the Policies in force for the remainder of Kraeutler's life, at Meridian's cost.  Further, Meridian will gross up the benefit such that Kraeutler is made whole for taxes required to be paid by Kraeutler related to premiums paid by Meridian.  Kraeutler's estate shall be responsible for any taxes, if any, related to the death benefit of the Policies.

7. Termination of Employment.  Notwithstanding the provisions of Section 2, Kraeutler's employment may be terminated under the following circumstances:

7.1 Death.  Kraeutler's employment is terminated upon his death.

7.2 Disability.  Kraeutler's employment may be terminated by Meridian due to illness or other physical or mental disability of Kraeutler, resulting in his inability to perform substantially his duties under this Agreement for a period of ninety (90) or more consecutive days or for one hundred eighty (180) days in the aggregate during any consecutive twelve (12) month period ("Disability").  Provided, however, Kraeutler shall still be eligible for long term disability benefits maintained by Meridian other than under this Agreement, without offset of any kind, if such disability occurred during the Term as noted in Section 8.2.  For the avoidance of doubt, "without offset of any kind" shall mean that any such disability benefits shall not be reduced, nor shall the payment of any disability benefits affect in any way, any other compensation, benefits or other payments due and owing to Kraeutler under this Agreement.

7.3 Cause.  Kraeutler's employment may be terminated by Meridian upon Notice of Termination to Kraeutler of action taken by the Board of Directors of Meridian to discharge Kraeutler for Cause, which Notice of Termination shall be delivered to Kraeutler within Ninety days after the Board of Directors has both (x) knowledge of the conduct or event allegedly constituting Cause and (y) reason to believe that such conduct or event constitutes grounds to terminate Kraeutler for Cause.  As used herein, "Notice of Termination" means a resolution duly adopted by the affirmative vote of not less than a simple majority of the members of the Board of Directors of Meridian, excluding Kraeutler, at a meeting called for the purpose of determining that Kraeutler engaged in conduct that constitutes Cause (and at which Kraeutler had a reasonable opportunity, together with his counsel, to be heard before the Board of Directors prior to such vote).  For purposes of this Agreement, Meridian shall have "Cause" to terminate Kraeutler's employment upon:

	
(i)

	
an intentional act of fraud, embezzlement or theft in the course of Kraeutler's employment with Meridian resulting in material harm to Meridian; or

	
(ii)

	
intentional wrongful damage to material assets of Meridian.

Any act or omission by Kraeutler shall be deemed "intentional" only if done, or omitted to be done, by Kraeutler (a) not in good faith, and (b) without the reasonable belief that his action or omission was in the best interests of Meridian.  Failure to meet performance standards or objectives set by Meridian shall not constitute "Cause" for purposes of this Agreement.

7.4 Good Reason.  Kraeutler's employment may be terminated by Kraeutler for Good Reason.  For purposes of this Agreement, "Good Reason" shall mean (i) the assignment to Kraeutler of any duties materially inconsistent with Kraeutler's position (including, without limitation, status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by this Agreement, or any other action by Meridian that results in a material diminution in such position, authority, duties or responsibilities, excluding for this purpose an action not taken in bad faith and that is remedied by Meridian within thirty (30) days after receipt of written notice thereof given by Kraeutler within ninety (90) days of the initial existence of such circumstance, provided that repeated instances of such action shall constitute the bad faith of Meridian; (ii) a reduction in Kraeutler's Base Salary or other benefits under this Agreement; (iii) the relocation of Meridian's principal offices to a location more than fifty (50) miles from the current location of such offices; (iv)  any material failure by Meridian to comply with any of the provisions of this Agreement, other than a failure not occurring in bad faith and which is remedied by Meridian within thirty (30) days after receipt of written notice thereof given by Kraeutler within ninety (90) days of the initial existence of such circumstance, provided that repeated failures shall constitute the bad faith of Meridian; or (v) removal of Kraeutler as Chairman and Chief Executive Officer, other than for Cause.  Notwithstanding Section 7.4(v) above, if a successor candidate for the position of Chief Executive Officer shall be hired by Meridian with approval of Meridian's Board of Directors during the Term, and if Kraeutler is requested by the Board to transition from the duties and title of this position, Kraeutler acknowledges and agrees that such transition shall not constitute Good Reason for his termination, but Meridian and Kraeutler agree that all other benefits and provisions of this Agreement shall remain unchanged as provided herein.

8. Compensation Upon Termination.

8.1 If Kraeutler's employment is terminated voluntarily without Good Reason, terminated as a result of Kraeutler's death, Disability, or is terminated by Meridian for Cause, Kraeutler, or his estate, shall be entitled to:

	
(i)

	
any Base Salary earned but not yet paid;

	
(ii)

	
any Annual Performance Bonus awarded pursuant to Section 4.2 of this Agreement but not yet paid;

	
(iii)

	
all or a portion of the Annual Performance Bonus that he would have received pursuant to Section 4.2 (assuming that Kraeutler and/or Meridian achieves the goals necessary to receive any level of bonus potential for that year) for the year in which the termination occurred (pro rata, according to the number of days Kraeutler was employed by Meridian during such year) payable in a lump sum;

	
(iv)

	
reimbursement in accordance with this Agreement of any reasonable business expense incurred by Kraeutler but not yet paid;

	
(v)

	
other benefits accrued and earned by Kraeutler through the date of his death or termination in accordance with applicable plans and programs of Meridian; and

	
(vi)

	
the benefits described under Section 6.3 of this Agreement, subject to the terms of such Section 6.3.

8.2 If Kraeutler's employment is terminated as a result of Kraeutler's Disability, in addition to any other benefit or compensation to which Kraeutler shall otherwise be entitled to receive, Kraeutler shall be entitled to receive the full amount of Kraeutler's Base Salary plus Annual Performance Bonus Kraeutler would have received through the Term and group health, disability and life insurance benefits at the same level that Kraeutler was receiving such benefits at the date of termination.  Compensation paid shall be prorated for periods of less than one year.  The amount of annual Base Salary plus Annual Performance Bonus shall be computed by averaging the Base Salary plus Annual Performance Bonus earned by Kraeutler during the preceding three (3) fiscal years of Meridian.

8.3 If (a) Kraeutler's employment is terminated by Meridian without Cause,  (b) Kraeutler terminates his employment with Meridian for Good Reason or (c) Kraeutler's employment is terminated ninety (90) days prior to a Change of Control Event (as defined below) or within thirty-six (36) months following the date of the occurrence of a Change of Control Event (as defined below), except in the event (x) Kraeutler is terminated for Cause or (y) Kraeutler terminates employment for reasons other than Good Reason during the ninety (90) days prior to or thirty-six (36) months following a Change of Control Event, Kraeutler shall be entitled to:

	
(i)

	
(A)  any Base Salary earned but not yet paid, plus (B) three (3) times his Base Salary (computed as the average annual Base Salary of Kraeutler for the preceding thirty-six (36) months).

	
(ii)

	
any bonuses awarded pursuant to Section 4.2 of this Agreement but not yet paid and Three times the average Annual Performance Bonus received by Kraeutler for the preceding thirty-six (36) months.

	
(iii)

	
reimbursement in accordance with this Agreement of any business expenses incurred by Kraeutler prior to the date of his termination but not yet paid to him on the date of his termination of employment.

	
(iv)

	
the benefits awarded pursuant to Section 6.3.

With respect to Section 8.3(c), for the sake of clarity, if Kraeutler is terminated for Cause or if Kraeutler terminates his employment for reasons other than Good Reason, Kraeutler is not eligible for the benefits identified in Sections 8.3(i) through 8.3(iii).

8.4 Any payments payable under this Section 8 shall be paid in a lump sum payment on the first day of the seventh month following Kraeutler's termination of employment.  Except as otherwise provided in Section 8.5, payment, with the exception of those pursuant to Section 6.3, shall be made only if Kraeutler has executed and submitted a release of claims to Meridian at Meridian's request and the statutory period during which Kraeutler is entitled to revoke the release of claims has expired on or before such date.

8.5 Any amounts due and paid under this Section 8 are in the nature of severance payments or liquidated damages, or both, and shall fully compensate Kraeutler and his dependents or beneficiaries, as the case may be, for any and all direct damages and consequential damages that any of them may suffer as a result of termination of Kraeutler's employment in breach of this Agreement, and they are not in the nature of a penalty.

Upon termination of Kraeutler's employment for any reason other than by Meridian for Cause or by Kraeutler for Good Reason, Kraeutler and Meridian will, at the option of Kraeutler, execute and deliver to each other a general release, releasing the other, and in the case of Meridian its officers, directors, employees, agents, trustees, parents, subsidiaries, predecessors, and affiliates (the "Releasees") from all causes of action, claims, or demands that either party may then have or have had against the Releasees based on any matter or thing, including but not limited to Kraeutler's employment with Meridian or the termination of his employment (but not the obligations under this Agreement that continue after the date on which Kraeutler's employment terminates).  The execution of this release shall be a condition to the receipt by Kraeutler of the payments and benefits described in this Section 8 except that the execution of this release shall not be a condition for the receipt by Kraeutler of base salary earned but not yet paid, bonuses awarded pursuant to Section 4.2 of this Agreement but not yet paid, reimbursement of any business expenses incurred by Kraeutler but not yet paid, and payments pursuant to Section 6.3.

8.6 As used herein, a "Change of Control Event" means  (i) the sale of all, or substantially all of the assets of Meridian; (ii) a merger, or recapitalization, or similar transactions which results in the shareholders of Meridian immediately prior to such event owning less than sixty percent (60%) of the fair market value or the voting power of the surviving entity ; (iii) the date during any twelve (12) month period that majority of Meridian's Board of Directors is replaced by directors whose appointment is not endorsed by a majority of the members of Meridian's Board of Directors before the date of appointment or election; or (iv) the acquisition, directly or indirectly, of the beneficial ownership (within the meaning of that term as it is used in Section 13(d) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder) of Fifty Percent or more of the outstanding voting securities of Meridian by any person, entity or group.  This definition shall not apply to the purchase of Shares by underwriters in connection with a public offering of securities of Meridian, or the purchase of shares of up to Twenty-Five Percent of any class of securities of Meridian by a tax-qualified employee stock benefit plan.  The term "Control" means (i) ownership, control or power to vote fifty percent (50%) or more of the outstanding shares of any class of voting securities of Meridian, directly or indirectly, or (ii) the ability, in any manner, to elect a majority of the directors of Meridian.  The term "person" refers to an individual or a corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization or any other form of entity not listed.

9. Covenants and Confidential Information.  Kraeutler and Meridian hereby reaffirm the terms of that certain Non-Competition and Confidentiality Agreement by and among Meridian and its affiliated companies and its subsidiaries and Kraeutler dated October 8, 1992.  Such agreement is hereby incorporated herein by reference.

10. Parachute Payment.  If Kraeutler is liable for the payment of any excise tax (the "Basic Excise Tax") because of Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code"), or any successor or similar provision, with respect to any payments or benefits received or to be received from Meridian or any successor to Meridian, whether provided under this Agreement or otherwise, Meridian shall pay Kraeutler an amount (the "Special Reimbursement") which, after payment by Kraeutler (or on Kraeutler's behalf) of any federal, state and local taxes applicable to the payment, including, without limitation, any further excise tax under such Section 4999 of the Code, on, with respect to or resulting from the Special Reimbursement, equals the net amounts of the Basic Excise Tax.

11. Assignability; Binding Nature.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, heirs, beneficiaries, personal representatives (in the case of Kraeutler) and assigns.

12. Entire Agreement.  Except to the extent otherwise mentioned, referred to or otherwise  provided herein, this Agreement contains the entire understanding and agreement between the Parties concerning the subject matter hereof and supersedes any prior agreements, whether written or oral, between the Parties concerning the subject matter hereof.

13. Amendment or Waiver.  No provision in this Agreement may be amended unless such amendment is agreed to in writing and signed by both Kraeutler and an authorized officer of Meridian.  No waiver by either Party of any breach by the other Party of any condition or provision contained in this Agreement to be performed by such other Party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or any prior or subsequent time.  Any waiver must be in writing and signed by Kraeutler or an authorized officer of Meridian, as the case may be.

14. Severability.  If any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.

15. Survivorship.  The respective rights and obligations of the Parties hereunder shall survive any termination of Kraeutler's employment with Meridian to the extent necessary to the intended preservation of such rights and obligations as described in this Agreement.

16. Governing Law.  This Agreement shall be governed by and construed and interpreted in accordance with the internal substantive laws of Ohio, without reference to principles of conflict of laws.

17. Notices.  Any notice given to either Party shall be in writing and shall be deemed to have been given when delivered personally or One day after having been sent by overnight courier service or Three days after having been sent by certified or registered mail, postage prepaid, return receipt requested, duly addressed to the Party concerned at the address indicated below or to such changed address as such Party may subsequently give such notice of:

	
If to Meridian or the Board:

	
Meridian Bioscience, Inc.

	 
	 	
Attention:  Chief Financial Officer

	 
	 	
3471 River Hills Drive

	 
	 	
Cincinnati, Ohio 45244

	 
	 	 	 
	
If to Kraeutler:

	
John A. Kraeutler

	 
	 	
6120 Shadyglenn Road

	 
	 	
Cincinnati, Ohio 45243

	 

 

18. Headings.  The headings of the sections contained in this Agreement are for convenience only and shall not be deemed to control or affect the meaning or construction of any provision of this Agreement.

19. Section 409A of the Code.

19.1 It is intended that the provisions of this Agreement comply with Section 409A of the Code, and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A of the Code.

19.2 A termination of employment shall not be deemed to have occurred for purposes of Section 8 unless such termination of employment is also a "separation from service" within the meaning of Section 409A of the Code.

19.3 With regard to any provision of this Agreement that provides for reimbursement of expenses or in-kind benefits that are subject to Section 409A of the Code, the following conditions apply: (a) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits provided, in any other calendar year (provided this condition shall not apply to an arrangement providing for the reimbursement of expenses referred to in Section 105(b) of the Code solely because the arrangement provides for a limit on the amount of expenses that may be reimbursed under such arrangement over some or all of the period in which the reimbursement arrangement remains in effect), (b) the reimbursement of an eligible expense is made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (c) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

19.4 Tax Gross-Up.  If any amounts paid or provided under this Agreement that are subject to Section 409A of the Code result in the imposition of the 20% additional tax under Section 409A(a)(1)(B) (or any similar federal or state excise tax) (the "409A Penalty Tax") as a result of any failure of Meridian to comply with Section 409A of the Code with respect to such payment, Meridian shall pay to Kraeutler such additional compensation as is necessary (after taking into account all federal, state, and local income taxes payable by Kraeutler as a result of the 409A Penalty Tax) to place Kraeutler in the same after-tax position he would have been in had no such 409A Penalty Tax (or any interest or penalties thereon) been paid or incurred with respect to any of such amounts (the "Tax Gross-Up").  Notwithstanding the foregoing, Kraeutler and Meridian shall cooperate to avoid the occurrence of such 409A Penalty Tax to avoid payment of the 409A Penalty Tax.  Meridian shall pay such additional compensation by the end of Kraeutler's taxable year following the taxable year in which the taxes are remitted. 

20. Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument.

[Remainder of this page intentionally left blank. Signature page follows.]

IN WITNESS WHEREOF, Kraeutler and Meridian have executed this Agreement as of the date and year first above written.

	 	 	
MERIDIAN BIOSCIENCE, INC.

	 	 	 
	 	 	
By:  /s/ Melissa Lueke

	 	 	
Name:  Melissa Lueke

	 	 	
Title:  EVP, CFO

	 	 	 
	 	 	
/s/ John Kraeutler

	 	 	
JOHN A. KRAEUTLEREX-4.1

 Exhibit 4.1 

Execution version 
  

 
  

HSBC HOLDINGS PLC, 
 as Issuer 

THE BANK OF NEW YORK MELLON, LONDON BRANCH, 

as Trustee 
 HSBC BANK USA,
NATIONAL ASSOCIATION, 
 as Paying Agent, Registrar and Calculation Agent 

 
  

THIRD SUPPLEMENTAL INDENTURE 

Dated as of October 5, 2016 
  

 
 To the Senior
Indenture, dated as of August 26, 2009, 
 among the Issuer, the Trustee and the Paying Agent, Registrar and Exchange Rate Agent 

$2,500,000,000 2.650% Senior Unsecured Notes due 2022 

$1,250,000,000 Floating Rate Senior Unsecured Notes due 2022 
  

 
  

 TABLE OF CONTENTS 

 

							
		 		  	 	Page	  
	 ARTICLE 1
	 	DEFINITIONS	  	 	3	  
		
	 SECTION 1.01. Definition of Terms
	  	 	3	  
	 SECTION 1.02. Supplemental Definitions
	  	 	4	  
			
	 ARTICLE 2
	 	THE NOTES	  	 	5	  
		
	 SECTION 2.01. Terms Specific to the Fixed Rate Notes.
	  	 	5	  
	 SECTION 2.02. Terms Specific to the Floating Rate Notes.
	  	 	6	  
	 SECTION 2.03. Terms Specific to each Series of Notes.
	  	 	6	  
			
	 ARTICLE 3
	 	INTEREST CALCULATION IN RESPECT OF THE FLOATING RATE NOTES	  	 	7	  
		
	 SECTION 3.01. Interest Rate.
	  	 	7	  
	 SECTION 3.02. Calculation Agent.
	  	 	8	  
			
	 ARTICLE 4
	 	MISCELLANEOUS	  	 	9	  
		
	 SECTION 4.01. Effect of this Supplemental Indenture; Ratification and Integral
Part
	  	 	9	  
	 SECTION 4.02. Priority
	  	 	9	  
	 SECTION 4.03. Successors and Assigns
	  	 	9	  
	 SECTION 4.04. Compliance
	  	 	9	  
	 SECTION 4.05. Relation to Calculation Agent Agreement
	  	 	9	  
	 SECTION 4.06. Governing Law
	  	 	9	  
	 SECTION 4.07. Counterparts
	  	 	9	  
	 SECTION 4.08. Entire Agreement
	  	 	9	  
		
	 EXHIBIT A – Form of 2.650% Global Security
	  			
	 EXHIBIT B – Form of Floating Rate Global Security
	  			

 THIRD SUPPLEMENTAL INDENTURE, dated as of October 5, 2016 (this “Supplemental
Indenture”), by and among HSBC Holdings plc, a public limited company duly organized and existing under the laws of England and Wales (the “Company”), having its principal office at 8 Canada Square, London E14 5HQ, England,
The Bank of New York Mellon, London Branch, a New York banking corporation, as trustee (the “Trustee”), having its principal corporate trust office at 101 Barclay Street, Floor 7-East, New
York, New York 10286, and HSBC Bank USA, National Association, as Paying Agent, Registrar and Calculation Agent (together, the “Agent”), having its principal office at 452 Fifth Avenue, New York, New York 10018. 

W I T N E S S E T H: 

WHEREAS, the Company, the Trustee and the Agent have executed and delivered an indenture dated as of August 26, 2009 (as amended or
supplemented from time to time, the “Base Indenture” and, together with this Supplemental Indenture, the “Indenture”), to provide for the issuance of the Company’s Debt Securities; 

WHEREAS, Section 9.01(5) 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 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 two series of Debt Securities under the Base Indenture (as supplemented by this Supplemental
Indenture), the $2,500,000,000 2.650% Senior Unsecured Notes due 2022 (such series of Debt Securities, the “Fixed Rate Notes”), and the $1,250,000,000 Floating Rate Senior Unsecured Notes due 2022 (such series of Debt Securities,
the “Floating Rate Notes” and, together with the Fixed Rate Notes, the “Notes”), each such series to be issued pursuant to this Supplemental Indenture; 

WHEREAS, all conditions and requirements necessary to make this Supplemental Indenture a valid and binding instrument in accordance
with the terms of the Base Indenture have been performed and fulfilled and the execution and delivery hereof have been in all respects duly authorized; 

NOW, THEREFORE, each party agrees as follows for the benefit of the other parties and the equal and ratable benefit of the Holders.

 ARTICLE 1 

DEFINITIONS 
 SECTION 1.01.
Definition of Terms. For all purposes of this Supplemental Indenture: 
 (a) capitalized terms used herein
but not otherwise defined shall have the meanings assigned to them in the Base Indenture; 
 (b) all other terms used herein
that are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein; 

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

(d) the use of “or” is not intended to be exclusive unless expressly indicated otherwise; 

 (e) the section headings herein are for convenience only and shall not affect the
construction of this Supplemental Indenture; 
 (f) wherever the words “include,” “includes” or
“including” are used in this Supplemental Indenture, they shall be deemed to be followed by the words “without limitation”; and 

(g) the words “herein”, “hereof” and “hereunder” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other subdivision; 
 SECTION 1.02. Supplemental
Definitions. The following definitions shall apply to the Notes only: 
 (a) “Agent”
has the meaning set forth in the introduction to this Supplemental Indenture; 
 (b) Calculation
Agent” means HSBC Bank USA, National Association, or its successor appointed by the Company pursuant to the Calculation Agent Agreement; 

(c) “Calculation Agent Agreement” means the calculation agent agreement dated as of October 5, 2016 between
the Company and the Calculation Agent; 
 (d) “Company” has the meaning set forth in the introduction to
this Supplemental Indenture; 
 (e) “FATCA” means (i) sections 1471 to 1474 of the U.S. Internal Revenue
Code of 1986, as amended or any associated regulations or other official guidance; (ii) any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the United States
and any other jurisdiction, which (in either case) facilitates the implementation of clause (i); or (iii) any agreement pursuant to the implementation of clauses (i) or (ii) with the U.S. Internal Revenue Service, the U.S. government or any
governmental or taxation authority in any other jurisdiction; 
 (f) “Fixed Rate Interest Payment Date” has
the meaning set forth in clause (d) of Section 2.01 of this Supplemental Indenture; 
 (g) “Fixed Rate
Notes” has the meaning set forth in the recitals to this Supplemental Indenture; 
 (h) “Floating Rate
Initial Interest Rate” has the meaning set forth in clause (a) of Section 3.01 of this Supplemental Indenture; 

(i) “Floating Rate Interest Determination Date” means the second London Banking Day preceding the applicable
Floating Rate Interest Reset Date; provided that the first Floating Rate Interest Determination Date is October 3, 2016; 

(j) “Floating Rate Interest Payment Date” has the meaning set forth in clause (d) of Section 2.02 of this
Supplemental Indenture; 
 (k) “Floating Rate Interest Period” means the period beginning on (and including)
a Floating Rate Interest Payment Date and ending on (but excluding) the next succeeding Floating Rate Interest Payment Date; provided that the first Floating Rate Interest Period shall begin on October 5, 2016 and shall end on (but exclude)
January 5, 2017; 

  
 4 

 (l) “Floating Rate Interest Reset Date” means every January 5,
April 5, July 5 and October 5 of each year, commencing on January 5, 2017; provided that the interest rate in effect from (and including) January 5, 2017 to (but excluding) the first Floating Rate Interest Reset Date shall be the
Floating Rate Initial Interest Rate; 
 (m) “Floating Rate Notes” has the meaning set forth in the recitals
to this Supplemental Indenture; 
 (n) “Floating Rate Notes Maturity” has the meaning set forth in clause
(c) of Section 2.02 of this Supplemental Indenture; 
 (o) “LIBOR” means the three-month Dollar London
interbank offered rate; 
 (p) “London Banking Day” means any day on which dealings in Dollars are
transacted in the London interbank market; 
 (q) “London Reference Banks” has the meaning set forth in
clause (a)(ii) of Section 3.02 of this Supplemental Indenture; 
 (r) “Notes” has the meaning set forth in
the recitals to this Supplemental Indenture; 
 (s) “Reference Banks” has the meaning set forth in clause
(a)(ii) of Section 3.02 of this Supplemental Indenture; 
 (t) “Reuters Page LIBOR01” means the display that
appears on Reuters Page LIBOR01 or any page as may replace such page on such service (or any successor service) for the purpose of displaying LIBOR of major banks for Dollars; and 

(u) “Trustee” has the meaning set forth in the introduction to this Supplemental Indenture. 

ARTICLE 2 
 THE NOTES

 SECTION 2.01. Terms Specific to the Fixed Rate Notes. 

The following terms relating to the Fixed Rate Notes are hereby established: 

(a) the title of the Fixed Rate Notes shall be “2.650% Senior Unsecured Notes due 2022”; 

(b) the aggregate principal amount of the Fixed Rate Notes that may be authenticated and delivered under the Indenture shall
not initially exceed $2,500,000,000 (except as otherwise provided in the Indenture); 
 (c) the principal on the Fixed Rate
Notes shall be payable on January 5, 2022; and 
 (d) interest on the Fixed Rate Notes shall be payable semi-annually at a
rate of 2.650% per annum. Interest on the Fixed Rate Notes shall be payable in arrear on January 5 

  
 5 

 
and July 5 of each year, beginning on July 5, 2017 (each, a “Fixed Rate Interest Payment Date”). The Regular Record Dates for the Fixed Rate Notes shall be the 15th calendar day preceding each Fixed Rate Interest Payment Date, whether or not a Business Day. Interest on the Notes shall be calculated as contemplated by Section 3.10 of the Base Indenture. 

SECTION 2.02. Terms Specific to the Floating Rate Notes. 

The following terms relating to the Floating Rate Notes are hereby established: 

(a) the title of the Floating Rate Notes shall be “Floating Rate Senior Unsecured Notes due 2022”; 

(b) the aggregate principal amount of the Floating Rate Notes that may be authenticated and delivered under the Indenture shall
not initially exceed $1,250,000,000 (except as otherwise provided in the Indenture); 
 (c) the principal on the Floating
Rate Notes shall be payable on January 5, 2022 (“Floating Rate Notes Maturity”); 
 (d) interest on the
Floating Rate Notes shall be payable quarterly at a rate per annum determined in accordance with Article Three of this Supplemental Indenture. Interest on the Floating Rate Notes shall be payable in arrear on January 5, April 5, July 5 and
October 5 of each year, beginning on January 5, 2017 (each, a “Floating Rate Interest Payment Date”); and 

(e) the Regular Record Dates for the Floating Rate Notes shall be the 15th
calendar day preceding each Floating Rate Interest Payment Date, whether or not a Business Day. Notwithstanding Section 3.10 of the Base Indenture, interest on the Floating Rate Notes shall be calculated on the basis of the actual number of days in
each Floating Rate Interest Period, assuming a 360-day year. 
 SECTION 2.03. Terms Specific to each Series of Notes. 

The following terms relating to each series of Notes are hereby established: 

(a) the Notes shall be issued on October 5, 2016; 

(b) principal of, and any interest on, the Notes shall be paid to the Holder through the Agent in its capacity as Paying Agent,
having offices in New York City, New York; 
 (c) the Notes shall not be redeemable except as provided in Article Eleven of
the Base Indenture. The Notes shall not be redeemable at the option of the Holders at any time; 
 (d) the Notes are not
issued as Discount Debt Securities or as Indexed Securities and are not subject to a Solvency Condition; 
 (e) the Company
shall have no obligation to redeem or purchase the Notes pursuant to any sinking fund or analogous provision; 
 (f) the
Notes shall be issued only in denominations of $200,000 and integral multiples of $1,000 in excess thereof; 
 (g) the Notes
shall be denominated in Dollars; 

  
 6 

 (h) the payment of principal of, and interest on, the Notes shall be payable only
in the coin or currency in which the Notes are denominated which, pursuant to clause (g) above, shall be Dollars; 
 (i) the
Notes shall not be converted into or exchanged at the option of the Company or otherwise for stock or other securities of the Company pursuant to Article Twelve of the Base Indenture; 

(j) the Notes shall 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 DTC; 
 (k) except in
limited circumstances, the Notes will not be issued in definitive form; 
 (l) the forms of Notes shall be evidenced by one
or more global securities in registered form substantially in the form of Exhibit A and Exhibit B, as applicable, to this Supplemental Indenture; and 

(m) to the fullest extent permitted by law, the Holders and the Trustee, in respect of any claims of such Holders to payment of
any principal, premium or interest in respect of the Notes, by their acceptance of the Notes, shall be deemed to have waived any right of set-off or counterclaim that such Holders or, as the case may be, the Trustee in such respect, might otherwise
have. 
 ARTICLE 3 

INTEREST CALCULATION IN RESPECT OF THE FLOATING RATE NOTES 

SECTION 3.01. Interest Rate. 

(a) The initial interest rate on the Floating Rate Notes for the first Floating Rate Interest Period shall be equal to LIBOR,
as determined on October 3, 2016, plus 1.500% per annum (the “Floating Rate Initial Interest Rate”). Thereafter, the interest on the Floating Rate Notes for any Floating Rate Interest Period shall be LIBOR, as determined by the
Calculation Agent on the applicable Floating Rate Interest Determination Date, plus 1.500% per annum;
 (b) The interest on
the Floating Rate Notes shall be reset quarterly on each Floating Rate Interest Reset Date. 
 Notwithstanding Section 1.13
of the Base Indenture, if any scheduled Floating Rate Interest Reset Date or Floating Rate Interest Payment Date (other than the Floating Rate Notes Maturity) is not a Business Day, such Floating Rate Interest Reset Date and Floating Rate Interest
Payment Date shall be postponed to the next day that is a Business Day; provided that if that Business Day falls in the next succeeding calendar month, such Floating Rate Interest Reset Date and Floating Rate Interest Payment Date shall be
the immediately preceding Business Day. If any such Floating Rate Interest Payment Date (other than the Floating Rate Notes Maturity) is postponed or brought forward as described above, the payment of interest due on such postponed or brought
forward Floating Rate Interest Payment Date shall include interest accrued to but excluding such postponed or brought forward Floating Rate Interest Payment Date. If the scheduled Floating Rate Notes Maturity or date of redemption or repayment of
the Floating Rate Notes is not a Business Day, the Company may pay interest and principal on the next succeeding Business Day, but interest on that payment shall not accrue during the period from and after the scheduled Floating Rate Notes Maturity
or date of redemption or repayment of the Floating Rate Notes. 

  
 7 

 SECTION 3.02. Calculation Agent. 

(a) LIBOR shall be determined by the Calculation Agent in accordance with the following provisions: 

(i) With respect to any Floating Rate Interest Determination Date, LIBOR shall be the rate (expressed as a percentage per
annum) for deposits in Dollars having a maturity of three months commencing on the related Floating Rate Interest Reset Date that appears on Reuters Page LIBOR01 as of 11:00 a.m., London time, on that Floating Rate Interest Determination
Date. If no such rate appears, then LIBOR, in respect of that Floating Rate Interest Determination Date, shall be determined in accordance with the provisions described in (ii) below; and 

(ii) With respect to any Floating Rate Interest Determination Date on which no rate appears on Reuters Page LIBOR01, the
Calculation Agent shall request the principal London offices of each of four major reference banks in the London interbank market, as selected and identified by the Company (the “London Reference Banks”), to provide its offered
quotation (expressed as a percentage per annum) for deposits in Dollars for the period of three months, commencing on the related Floating Rate Interest Reset Date, to prime banks in the London interbank market at approximately 11:00 a.m., London
time, on that Floating Rate Interest Determination Date and in a principal amount that is representative for a single transaction in Dollars in that market at that time. If at least two quotations are provided, then LIBOR on that Floating Rate
Interest Determination Date shall be the arithmetic mean of those quotations. If fewer than two quotations are provided, then LIBOR on the Floating Rate Interest Determination Date shall be the arithmetic mean of the rates quoted at approximately
11:00 a.m., in the City of New York, on the Floating Rate Interest Determination Date, by three major banks in the City of New York, as selected and identified by us (together with the London Reference Banks, the “Reference Banks”),
for loans in Dollars to leading European banks, for a period of three months, commencing on the related Floating Rate Interest Reset Date, and in a principal amount that is representative for a single transaction in Dollars in that market at that
time. If at least two such rates are so provided, LIBOR on the Floating Rate Interest Determination Date shall be the arithmetic mean of such rates. If fewer than two such rates are so provided, LIBOR on the Floating Rate Interest Determination Date
shall be LIBOR in effect with respect to the immediately preceding Floating Rate Interest Determination Date or, in the case of the initial Floating Rate Interest Determination Date, the Floating Rate Initial Interest Rate. 

(b) All percentages resulting from any calculation of any interest rate on the Floating Rate Notes shall be rounded, if
necessary, to the nearest one hundred thousandth of a percentage point, with five one-millionths of a percentage point rounded upward, and all Dollars amounts shall be rounded to the nearest cent, with one-half cent being rounded upward. 

(c) All determinations and any calculations made by the Calculation Agent for the purposes of calculating the applicable
interest on the Floating Rate Notes shall be conclusive and binding on the Holders, the Company, the Trustee and the Paying Agent, absent manifest error. The Calculation Agent shall not be responsible to the Company, the Holders or any third party
for any failure of the Reference Banks to provide quotations as requested of them or as a 

  
 8 

 
result of the Calculation Agent having acted on any quotation or other information given by any Reference Bank which subsequently may be found to be incorrect or inaccurate in any way. 

ARTICLE 4 

MISCELLANEOUS 
 SECTION 4.01.
Effect of this Supplemental Indenture; Ratification and Integral Part. This Supplemental Indenture shall become effective upon its execution and delivery. 

Except as hereby amended, the Base Indenture is in all respects ratified and confirmed and all the terms, provisions and conditions thereof
(including any prior amendments thereto) shall be, and remain in, full force and effect, including, without limitation, Section 4.06 of the first supplemental indenture dated March 8, 2016 (amending the Base Indenture to add Section 15) and Section
4.01 of the second supplemental indenture dated May 25, 2016 (amending Section 6.07 of the Base Indenture). This Supplemental Indenture shall be deemed an integral part of the Base Indenture in the manner and to the extent herein and therein
provided. 
 SECTION 4.02. Priority. This Supplemental Indenture shall be deemed part of the Base Indenture in the manner
and to the extent herein and therein provided. The provisions of this Supplemental Indenture shall, with respect to the Notes and as otherwise provided herein and subject to the terms hereof, supersede the provisions of the Base Indenture to
the extent the Base Indenture is inconsistent herewith. 
 SECTION 4.03. Successors and Assigns. All covenants and
agreements in the Base Indenture, as supplemented and amended by this Supplemental Indenture, by the Company shall bind its successors and assigns, whether so expressed or not. 

SECTION 4.04. Compliance. The Agent shall be entitled to take any action or to refuse to take any action which the Agent
regards as necessary for the Agent to comply with any applicable law, regulation or fiscal requirement, court order, or the rules, operating procedures or market practice of any relevant stock exchange or other market or clearing system. 

SECTION 4.05. Relation to Calculation Agent Agreement. In the event of any conflict between the Indenture and the Calculation
Agent Agreement relating to the rights or obligations of the Calculation Agent in the Indenture in connection with the calculation of the interest rate on the Floating Rate Notes, the relevant terms of the Calculation Agent Agreement shall govern
such rights and obligations. 
 SECTION 4.06. Governing Law. This Supplemental Indenture and the Notes shall be governed
by, and construed in accordance with, the laws of the State of New York. 
 SECTION 4.07. Counterparts. This
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. 

SECTION 4.08. Entire Agreement. This Supplemental Indenture constitutes the entire agreement of the parties hereto with
respect to the Notes and the amendments to the Base Indenture set forth herein. 

  
 9 

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

			
	HSBC HOLDINGS PLC,
	      as Issuer
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	THE BANK OF NEW YORK MELLON,
	LONDON BRANCH,
	      as Trustee
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	HSBC BANK USA, NATIONAL ASSOCIATION,
	      as Paying Agent, Registrar and Calculation Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 10 

 EXHIBIT A 

FORM OF 2.650% GLOBAL SECURITY 
 No.
[●] 
 CUSIP No.: 404280 BF5 

ISIN: US404280BF56 
 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 GLOBAL 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. 

BY ITS ACQUISITION OF THE DEBT SECURITIES REPRESENTED BY THIS GLOBAL SECURITY, EACH HOLDER (WHICH, FOR THESE PURPOSES, INCLUDES EACH BENEFICIAL OWNER OF THE
DEBT SECURITIES) ACKNOWLEDGES, ACCEPTS, CONSENTS AND AGREES, NOTWITHSTANDING ANY OTHER TERM OF THE DEBT SECURITIES, THE INDENTURE OR ANY OTHER AGREEMENTS, ARRANGEMENTS OR UNDERSTANDINGS BETWEEN THE ISSUER AND ANY HOLDER, TO BE BOUND BY (A) THE
EFFECT OF THE EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK RESOLUTION AUTHORITY THAT MAY INCLUDE AND RESULT IN ANY OF THE FOLLOWING, OR SOME COMBINATION THEREOF: (I) THE REDUCTION OF ALL, OR A PORTION, OF THE AMOUNTS DUE (AS DEFINED ON THE
REVERSE OF THIS GLOBAL SECURITY); (II) THE CONVERSION OF ALL, OR A PORTION, OF THE AMOUNTS DUE INTO THE ISSUER’S OR ANOTHER PERSON’S ORDINARY SHARES, OTHER SECURITIES OR OTHER OBLIGATIONS (AND THE ISSUE TO, OR CONFERRAL ON, THE HOLDER OF
SUCH ORDINARY SHARES, OTHER SECURITIES OR OTHER OBLIGATIONS), INCLUDING BY MEANS OF AN AMENDMENT, MODIFICATION OR VARIATION OF THE TERMS OF THE DEBT SECURITIES OR THE INDENTURE; (III) THE CANCELLATION OF THE DEBT SECURITIES; AND/OR (IV) THE
AMENDMENT OR ALTERATION OF THE MATURITY OF THE DEBT SECURITIES OR AMENDMENT OF THE AMOUNT OF INTEREST PAYABLE ON THE DEBT SECURITIES, OR THE INTEREST PAYMENT DATES, INCLUDING BY SUSPENDING PAYMENT FOR A TEMPORARY PERIOD; AND (B) THE VARIATION OF THE
TERMS OF THE DEBT SECURITIES OR THE INDENTURE, IF NECESSARY, TO GIVE EFFECT TO THE EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK RESOLUTION AUTHORITY. 

GLOBAL SECURITY 
 HSBC Holdings
plc 
 US$[●] 
 2.650%
SENIOR UNSECURED NOTES DUE 2022 
 This is a Global Security in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer,” which term includes any successor Person under the Indenture hereinafter referred to) of debt securities, designated as specified in the title hereof, in the aggregate face amount of US$[●] (the “Debt
Securities”). 

  
 A-1 

 The Issuer, for value received, hereby promises to pay CEDE & CO., or registered assigns on
January 5, 2022 or on such earlier date as this Global Security may be redeemed (“Maturity”), the principal amount hereof and will pay interest on the said principal amount from October 5, 2016 (the “Issue Date”) or the most
recent Interest Payment Date on which interest has been paid or duly provided for, semi-annually in arrear on January 5 and July 5 in each year (each such date, an “Interest Payment Date”), commencing July 5, 2017. Interest on
this Global Security shall accrue at a rate of 2.650% per annum, until the principal amount hereof is paid or made available for payment. 

Interest in respect of this Global Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name this Global Security (or one or more Predecessor Global Securities) is registered at the close of business on the Regular Record Date for such interest. 

Payment of interest, if any, in respect of this Global Security may be made by check mailed to the address of the Person entitled thereto as
such address shall appear in the Register, or by wire transfer or transfer by any other means to an account designated in writing by such Person to the Paying Agent at least 15 days prior to such payment date. 

Any interest in respect of this Global Security that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holders thereof on the relevant Regular Record Date by virtue of their having been such Holders; and such Defaulted Interest may be paid by the Issuer, at its
election in each case, as provided in Clause (1) or (2) below: 
  

	 	(1)	The Issuer may elect to make payment of such Defaulted Interest to the Persons in whose names this Global Security (or its respective Predecessor Global Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which shall be fixed in the manner provided for in the Indenture. 

  

	 	(2)	The Issuer may make payment of any Defaulted Interest on this Global Security in any other lawful manner not inconsistent with the requirements of any securities exchange on which this Global Security may be listed, and
upon such notice as may be required by such exchange, if, after notice given by the Issuer to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 

All amounts of principal of (and premium, if any, on) and interest on this Global Security shall be paid by the Issuer, without deduction or
withholding for, or on account of, any present and future taxes, levies, imposts, duties, charges, fees, deductions or withholdings whatsoever imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom or any political
subdivision or any taxing authority thereof or therein having the power to tax (the “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 Taxing Jurisdiction or any subdivision or authority thereof, the Issuer shall pay such additional amounts of, or in respect of, the principal amount of, (and
premium, if any, on) and interest on this Global Security (“Additional Amounts”) as may be necessary in order that the net amounts paid to the Holders, after such deduction or withholding, shall equal the respective amounts of principal,
premium and interest which would have been payable in respect of this Global Security had no such deduction or withholding been required, provided that the foregoing will not apply to any such tax, levy, impost, duty, charge, fee, deduction
or withholding which would not have been payable or due but for the fact that (i) the Holder of this Global 

  
 A-2 

 
Security or the owner of a beneficial interest in this Global Security is domiciled in, or is a national or resident of, or engaging in business or maintaining a permanent establishment or
physically present in, the Taxing Jurisdiction, or otherwise has some connection or former connection with the Taxing Jurisdiction other than the holding or ownership of this Global Security, or the collection of any payment of (or in respect of)
principal of (and premium, if any, on) and interest on or the enforcement of, this Global Security; (ii) this Global Security is presented for payment in the United Kingdom or (iii) this Global Security is presented 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 the same for payment at the close of such 30 day period; (iv) such tax,
levy, impost, duty, charge, fee, deduction or withholding is imposed on a payment to an individual and is required to be made pursuant to European Council Directive 2003/48/EC or any other Directive implementing the conclusions of the ECOFIN Council
meeting of November 26-27, 2000 on the taxation of savings income, or any law implementing or complying with, or introduced in order to conform to, such Directive; (v) presentation for payment of this Global Security was made to a paying agent who
was required to make (or pass through) such deduction or withholding and presentation for payment could have been made to a paying agent who was not required to make (or pass through) such deduction or withholding; (vi) there was a failure to
comply by the Holder or the beneficial owner of this Global Security or the beneficial owner of any payment on this Global Security with a request of the Issuer addressed to the Holder or the beneficial owner, including a request of the Issuer
related to a claim for relief under any applicable double tax treaty (x) to provide information concerning the nationality, residence, identity or connection with a Taxing Jurisdiction of the Holder or the beneficial owner or (y) to make any
declaration or other similar claim to satisfy any information or reporting requirement, if the information or declaration is required or imposed by a statute, treaty, regulation, ruling or administrative practice of the Taxing Jurisdiction as a
precondition to exemption from withholding or deduction of all or part of the tax, duty, assessment or other governmental charge; (vii) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed in respect of any estate,
inheritance, gift, sale, transfer, personal property, wealth or similar tax, duty, assessment or other governmental charge; or (viii) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed in respect of any combination of the
above items. For the avoidance of doubt, all payments in respect of this Global Security shall be made subject to any withholding or deduction required pursuant to FATCA, and the Issuer shall not be required to pay any Additional Amounts on account
of any such deduction or withholding required pursuant to FATCA.
 Whenever in this Global Security there is mentioned, in any context, the
payment of any principal of (and premium, if any, on) or interest on any Debt Security, such mention shall be deemed to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would
be payable in respect thereof and express mention of the payment of Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where such express mention is not made.

 Upon any exchange of a portion of this Global Security for a definitive Debt Security, the portion of the principal amount hereof so
exchanged shall be endorsed by the Registrar on Schedule A hereto. The principal amount hereof shall be reduced for all purposes by the amount so exchanged and endorsed. 

Reference is hereby made to the further provisions of this Global Security set forth on the reverse hereof, which further provisions shall for
the purposes hereof have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed
by the Trustee or an authenticating agent by manual signature, this Global Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purposes. 

  
 A-3 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its corporate
seal. 
  

			
	 HSBC Holdings plc,
as Issuer

		
	 By:
	 	  

		 	 [●]

 Dated: October 5, 2016 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Debt Securities of a series issued under the within-mentioned Indenture. 

 

			
	 The Bank of New York Mellon, London Branch,
as Trustee

		
	By:	 	  

		 	[●]

 Dated: October 5, 2016 

  
 A-4 

 REVERSE OF GLOBAL SECURITY 

US$[●] 
 2.650% SENIOR
UNSECURED NOTES DUE 2022
 This Global Security is one of a duly authorized issue of Debt Securities issued and to be issued in one or more
series under and governed by an Indenture dated as of August 26, 2009 (as amended or supplemented from time to time), by and among the Issuer, The Bank of New York Mellon, London Branch, as trustee (the “Trustee,” which term includes any
successor trustee under the Indenture), and HSBC Bank USA, National Association (“HBUS”), as registrar and paying agent (the “Base Indenture”), as supplemented by a Third Supplemental Indenture dated as of October 5, 2016 (the
“Third Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among the Issuer, the Trustee and HBUS, as paying agent, registrar and calculation agent (the “Agent”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer, the Trustee, the Holders and of the terms upon which the Debt Securities are,
and are to be, authenticated and delivered. 
 Under the terms of the Indenture, the Debt Securities may be redeemed, as a whole but not in
part, at the Issuer’s option, on not less than 30 nor more than 60 days’ notice, at any time at a redemption price equal to the principal amount thereof, together with accrued interest, if any, to the date fixed for redemption, if, at any
time, the Issuer determines that: 
 (a) in making payment under the Debt Securities in respect of principal (or premium, if
any) or interest the Issuer has or shall or would become obligated to pay Additional Amounts as provided in the Indenture and in this Global Security provided such obligation results from a change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws (including a decision of any court or tribunal), or any change in, or in the official application or interpretation of, or execution of, or amendment to, any
treaty or treaties affecting taxation to which the United Kingdom is a party, which change, amendment or execution becomes effective after the Issue Date; or 

(b) the payment of interest in respect of the Debt Securities has become or will or 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 reenactment thereof for the time being) as a result of a change in or amendment to the laws of the
Taxing Jurisdiction, or any change in the official application or interpretation of such laws, including a decision of any court, which change or amendment becomes effective on or after the Issue Date; provided, however that, in the
case of (a) above, no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer would be obliged to pay such Additional Amounts were a payment in respect of the Debt Securities then due. 

If an Event of Default with respect to the Debt Securities of this series shall occur and be continuing, the principal of all of the Debt
Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. The Indenture provides that in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such series. If a Default with respect to Debt Securities of this series occurs and is continuing, the Trustee may pursue certain remedies as set forth in the
Indenture. The Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of this series may on behalf of all the Holders waive any past Event of Default or any Default under the Indenture or the Debt
Securities and its consequences except a default (i) in the payment of principal of (or premium, if any, on) or any installment of interest on any of the Debt Securities or (ii) in respect of a covenant or provision which under the Indenture cannot
be modified or amended without the consent of the Holder of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt Security and of 

  
 A-5 

 
any Debt Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt Security or
such other Debt Securities. 
 The Indenture contains provisions permitting the Issuer and the Trustee (i) without the consent of the
Holders of any Debt Securities issued under the Indenture to execute one or more supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure the Debt Securities, and (ii) with the consent of the Holders of not
less than a majority in aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of modifying in any manner the rights of Holders under the Indenture; provided that, with respect to certain enumerated provisions, no such supplemental indenture may be entered into
without the consent of the Holder of each Outstanding Debt Security affected thereby. The Indenture also permits the Holders of at least a majority in aggregate principal amount of the Outstanding Debt Securities of each series to be affected, on
behalf of the Holders of all Debt Securities of such series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture. Any such consent or waiver by the Holder of this Global Security shall bind every future Holder of
this Global Security and of any Global Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Global Security or such other Global
Securities. 
 Subject to the terms of the Indenture, the Depositary may surrender this Global Security or any portion hereof in exchange,
in whole or in part, for definitive Debt Securities, of this series in registered form and the Registrar, acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Security or the portions thereof to be exchanged, an
equal aggregate face amount of definitive Debt Securities (duly countersigned) in the numbers and in the names advised by the Depositary. 

By its acquisition of the Debt Securities represented by this Global Security, each Holder (which, for these purposes, includes each
beneficial owner of the Debt Securities) acknowledges, accepts, consents and agrees, notwithstanding any other term of the Debt Securities, the Indenture or any other agreements, arrangements or understandings between the Issuer and any Holder, to
be bound by (a) the effect of the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority that may include and result in any of the following, or some combination thereof: (i) the reduction of all, or a portion, of the Amounts Due;
(ii) the conversion of all, or a portion, of the Amounts Due into the Issuer’s or another Person’s ordinary shares, other securities or other obligations (and the issue to, or conferral on, the Holder of such ordinary shares, other
securities or other obligations), including by means of an amendment, modification or variation of the terms of the Debt Securities or the Indenture; (iii) the cancellation of the Debt Securities; and/or (iv) the amendment or alteration of the
Maturity of the Debt Securities or amendment of the amount of interest payable on the Debt Securities, or the interest payment dates, including by suspending payment for a temporary period; and (b) the variation of the terms of the Debt Securities
or the Indenture, if necessary, to give effect to the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority. No repayment or payment of Amounts Due shall become due and payable or be paid after the exercise of any UK Bail-in Power
by the Relevant UK Resolution Authority if and to the extent such amounts have been reduced, converted, cancelled, amended or altered as a result of such exercise. Moreover, each Holder (which, for these purposes, includes each beneficial owner of
the Debt Securities) consents to the exercise of any UK Bail-in Power as it may be imposed without any prior notice by the Relevant UK Resolution Authority of its decision to exercise such power with respect to the Debt Securities. 

“Amounts Due” means the principal amount of, and any accrued but unpaid interest, including any Additional Amounts, on, the Debt
Securities. References to such amounts will include amounts that have become due and payable, but which have not been paid, prior to the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority. 

  
 A-6 

 “UK Bail-in Power” means any write-down, conversion, transfer, modification or
suspension power existing from time to time under, and exercised in compliance with, any laws, regulations, rules or requirements in effect in the United Kingdom, relating to the transposition of the BRRD, including but not limited to the Banking
Act and the instruments, rules and standards created thereunder, pursuant to which (i) any obligation of a Regulated Entity (or other affiliate of such Regulated Entity) can be reduced, cancelled, modified or converted into shares, other securities
or other obligations of such Regulated Entity or any other person (or suspended for a temporary period); and (ii) any right in a contract governing an obligation of a Regulated Entity may be deemed to have been exercised. 

“Regulated Entity” refers to any BRRD Undertaking as such term is defined under the PRA Rulebook promulgated by the PRA, as amended
from time to time, which includes certain credit institutions, investment firms and certain of their parent or holding companies. 

“Relevant UK Resolution Authority” means any authority with the ability to exercise a UK Bail-in Power. 

By its acquisition of the Debt Securities, each Holder (which, for these purposes, includes each beneficial owner of the Debt Securities): (i)
acknowledges and agrees that the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Debt Securities shall not give rise to a Default or 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, in law and/or in equity, 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 UK Bail-in Power
by the Relevant UK Resolution Authority with respect to the Debt Securities; and (iii) acknowledges and agrees that, upon the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority, the Trustee shall not be required to take any
further directions from Holders under Section 4.11 (Control by Holders of Debt Securities) of the Indenture; and that the Indenture shall not impose any duties upon the Trustee whatsoever with respect to the exercise of any UK Bail-in Power
by the Relevant UK Resolution Authority. 
 Notwithstanding clause (iii) of the immediately preceding paragraph, if, following the
completion of the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority, the Debt Securities remain outstanding (for example, if the exercise of the UK Bail-in Power results in only a partial write-down of the principal of the
Debt Securities), then the Trustee’s duties under the Indenture shall remain applicable with respect to the Debt Securities following such completion to the extent that the Issuer and the Trustee shall agree pursuant to a supplemental indenture
or an amendment to the Indenture; provided, however that notwithstanding the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority, there shall at all times be a Trustee hereunder pursuant to, and in accordance with
Section 6.09 of the Base Indenture, and the resignation and/or removal of the Trustee and the appointment of a successor trustee shall continue to be governed by Sections 6.10 and 6.11 of the Base Indenture, including to the extent no supplemental
indenture or amendment to the Indenture is agreed upon pursuant to the Indenture in the event the Debt Securities remain outstanding following the completion of the exercise of the UK Bail-in Power. 

It is the intention of the Issuer and the Trustee that the Issuer’s obligations to indemnify the Trustee in accordance with
Section 6.07 of the Base Indenture (for the avoidance of doubt, as amended by Section 4.01 of the second supplemental indenture dated May 25, 2016) shall survive any exercise of the UK Bail in Power by the Relevant UK Resolution Authority. 

The exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Debt Securities shall not constitute an Event
of Default or a Default. 

  
 A-7 

 In addition to the right to enter into supplemental indentures pursuant to Sections 9.01 and 9.02
of the Base Indenture, the Issuer and the Trustee may enter into one or more indentures supplemental to the Indenture to modify and amend the terms of the Indenture or the Debt Securities, without the further consent of any Holders, to the extent
necessary to give effect to the exercise by the Relevant UK Resolution Authority of the UK Bail-in Power. 
 Upon the exercise of the
UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Debt Securities, the Issuer shall provide a written notice to the Holders through DTC as soon as practicable regarding such exercise of the UK Bail-in Power for purposes of
notifying Holders and beneficial owners of the Debt Securities of such occurrence. The Issuer shall also deliver a copy of such notice to the Trustee for information purposes. 

Upon the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority that results in the reduction or cancellation of all, or a
portion, of the principal amount of this Global Security and/or the conversion of all, or a portion, of the principal amount of this Global Security into shares or other securities or other obligations of the Issuer or another person, the portion of
the principal amount hereof so reduced, cancelled and/or converted shall be endorsed by the Registrar on Schedule B hereto. The principal amount hereof shall be reduced for all purposes by the amount so reduced, cancelled and/or converted. 

By its acquisition of a Debt Security, each Holder (which, for these purposes, includes each beneficial owner of the Debt Securities) of the
Debt Securities shall be deemed to have authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it holds the Debt Securities to take any and all necessary action, if required, to implement the
exercise of any UK Bail-in Power with respect to the Debt Securities as it may be imposed, without any further action or direction on the part of such Holder or beneficial owner, the Trustee and the Agent (and any other agent acting in connection
with the relevant series of Debt Securities). 
 To the fullest extent permitted by law, the Holders and the Trustee, in respect of any
claims of such Holders to payment of any principal, premium or interest in respect of the Debt Securities, by their acceptance of the Debt Securities, shall be deemed to have waived any right of set-off or counterclaim that such Holders or, as the
case may be, the Trustee in such respect, might otherwise have. 
 ANY HOLDER (WHICH, FOR THESE PURPOSES, INCLUDES EACH BENEFICIAL OWNER OF
THE DEBT SECURITIES) THAT ACQUIRES THE DEBT SECURITIES IN THE SECONDARY MARKET AND ANY SUCCESSORS, ASSIGNS, HEIRS, EXECUTORS, ADMINISTRATORS, TRUSTEES IN BANKRUPTCY AND LEGAL REPRESENTATIVES OF ANY HOLDER OR BENEFICIAL OWNER OF THE DEBT SECURITIES
SHALL BE DEEMED TO ACKNOWLEDGE, AGREE TO BE BOUND BY AND CONSENT TO THE SAME PROVISIONS SPECIFIED HEREIN TO THE SAME EXTENT AS THE HOLDERS OR BENEFICIAL OWNERS OF THE DEBT SECURITIES THAT ACQUIRE THE DEBT SECURITIES 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 DEBT SECURITIES RELATED TO THE UK BAIL-IN POWER. 

The Indenture and the Debt Securities may be amended and modified as provided in the Indenture. 

All terms used in this Global Security and not otherwise defined shall have the meanings ascribed to them in the Indenture. 

The Third Supplemental Indenture and the Debt Securities shall be governed by, and construed in accordance with, the laws of the State of New
York. 

  
 A-8 

 SCHEDULE A 

EXCHANGES FOR DEFINITIVE DEBT SECURITIES 

The following exchanges of parts of this Global Security for Definitive Debt Securities have been made: 

 

					
	 Date Made
	  	 Principal amount

exchanged for Definitive
 Debt Securities
	  	 Remaining principal

amount following such
 exchange

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

  
 A-9 

 SCHEDULE B 

REDUCTION, CANCELLATION OR CONVERSION OF DEBT SECURITIES UPON THE 

EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK RESOLUTION AUTHORITY 

 

									
	 Date made
	  	 	  	 Principal amount

reduced, cancelled
 and/or converted
	  	 	  	 Remaining principal

amount following
 reduction, cancellation

and/or conversion

	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

  
 A-10 

 EXHIBIT B 

FORM OF FLOATING RATE GLOBAL SECURITY 

No. [●] 
 CUSIP No.: 404280 BG3 

ISIN: US404280BG30 
 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 GLOBAL 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. 

BY ITS ACQUISITION OF THE DEBT SECURITIES REPRESENTED BY THIS GLOBAL SECURITY, EACH HOLDER (WHICH, FOR THESE PURPOSES, INCLUDES EACH BENEFICIAL OWNER OF THE
DEBT SECURITIES) ACKNOWLEDGES, ACCEPTS, CONSENTS AND AGREES, NOTWITHSTANDING ANY OTHER TERM OF THE DEBT SECURITIES, THE INDENTURE OR ANY OTHER AGREEMENTS, ARRANGEMENTS OR UNDERSTANDINGS BETWEEN THE ISSUER AND ANY HOLDER, TO BE BOUND BY (A) THE
EFFECT OF THE EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK RESOLUTION AUTHORITY THAT MAY INCLUDE AND RESULT IN ANY OF THE FOLLOWING, OR SOME COMBINATION THEREOF: (I) THE REDUCTION OF ALL, OR A PORTION, OF THE AMOUNTS DUE (AS DEFINED ON THE
REVERSE OF THIS GLOBAL SECURITY); (II) THE CONVERSION OF ALL, OR A PORTION, OF THE AMOUNTS DUE INTO THE ISSUER’S OR ANOTHER PERSON’S ORDINARY SHARES, OTHER SECURITIES OR OTHER OBLIGATIONS (AND THE ISSUE TO, OR CONFERRAL ON, THE HOLDER OF
SUCH ORDINARY SHARES, OTHER SECURITIES OR OTHER OBLIGATIONS), INCLUDING BY MEANS OF AN AMENDMENT, MODIFICATION OR VARIATION OF THE TERMS OF THE DEBT SECURITIES OR THE INDENTURE; (III) THE CANCELLATION OF THE DEBT SECURITIES; AND/OR (IV) THE
AMENDMENT OR ALTERATION OF THE MATURITY OF THE DEBT SECURITIES OR AMENDMENT OF THE AMOUNT OF INTEREST PAYABLE ON THE DEBT SECURITIES, OR THE INTEREST PAYMENT DATES, INCLUDING BY SUSPENDING PAYMENT FOR A TEMPORARY PERIOD; AND (B) THE VARIATION OF THE
TERMS OF THE DEBT SECURITIES OR THE INDENTURE, IF NECESSARY, TO GIVE EFFECT TO THE EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK RESOLUTION AUTHORITY. 

GLOBAL SECURITY 
 HSBC Holdings
plc 
 US$[●] 
 FLOATING
RATE SENIOR UNSECURED NOTES DUE 2022 
 This is a Global Security in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer,” which term includes any successor Person under the Indenture hereinafter referred to) of debt securities, designated as specified in the title hereof, in the aggregate face amount of US$[•] (the “Debt Securities”).

  
 B-1 

 The Issuer, for value received, hereby promises to pay CEDE & CO., or registered assigns
on January 5, 2022 or on such earlier date as this Global Security may be redeemed (“Maturity”), the principal amount hereof and will pay interest on the said principal amount from October 5, 2016 (the “Issue Date”) or the
most recent Floating Rate Interest Payment Date on which interest has been paid or duly provided for. 
 Interest on this Global Security
shall be payable quarterly in arrear on January 5, April 5, July 5 and October 5 of each year (each such date, a “Floating Rate Interest Payment Date”), beginning on January 5, 2017. The initial interest rate on this Global
Security shall be equal to the three-month Dollar London interbank offered rate (“LIBOR”), as determined on October 3, 2016, plus 1.500% per annum (the “Floating Rate Initial Interest Rate”). Thereafter, the interest rate on this
Global Security for any Floating Rate Interest Period shall accrue at a rate per annum equal to LIBOR, as determined by the Calculation Agent on the applicable Floating Rate Interest Determination Date, plus 1.500%. The interest rate on this Global
Security will be reset quarterly on each Floating Rate Interest Reset Date. 
 LIBOR will be determined by the Calculation Agent in
accordance with the Indenture and the following provisions: 
 (1) With respect to any Floating Rate Interest Determination Date, LIBOR
shall be the rate (expressed as a percentage per annum) for deposits in Dollars having a maturity of three months commencing on the related Floating Rate Interest Reset Date that appears on Reuters Page LIBOR01 as of 11:00 a.m., London time, on that
Floating Rate Interest Determination Date. If no such rate appears, then LIBOR, in respect of that Floating Rate Interest Determination Date, shall be determined in accordance with the provisions described in (2) below. 

(2) With respect to Floating Rate Interest Determination Date on which no rate appears on Reuters Page LIBOR01, the Calculation Agent shall
request the principal London offices of each of four major reference banks in the London interbank market, as selected and identified by the Issuer (the “London Reference Banks”), to provide its offered quotation (expressed as a percentage
per annum) for deposits in Dollars for the period of three months, commencing on the related Floating Rate Interest Reset Date, to prime banks in the London interbank market at approximately 11:00 a.m., London time, on that Floating Rate Interest
Determination Date and in a principal amount that is representative for a single transaction in Dollars in that market at that time. If at least two quotations are provided, then LIBOR on that Floating Rate Interest Determination Date shall be the
arithmetic mean of those quotations. If fewer than two quotations are provided, then LIBOR on the Floating Rate Interest Determination Date shall be the arithmetic mean of the rates quoted at approximately 11:00 a.m., in the City of New York, on the
Floating Rate Interest Determination Date by three major banks in the City of New York, as selected and identified by the Issuer (together with the London Reference Banks, the “Reference Banks”), for loans in Dollars to leading European
banks, for a period of three months, commencing on the related Floating Rate Interest Reset Date, and in a principal amount that is representative for a single transaction in Dollars in that market at that time. If at least two such rates are so
provided, LIBOR on the Floating Rate Interest Determination Date shall be the arithmetic mean of such rates. If fewer than two such rates are so provided, LIBOR on the Floating Rate Interest Determination Date shall be LIBOR in effect with respect
to the immediately preceding Floating Rate Interest Determination Date or, in the case of the initial Floating Rate Interest Determination Date, the Floating Rate Initial Interest Rate. 

  
 B-2 

 All percentages resulting from any calculation of any interest rate in respect of this Global
Security shall be rounded, if necessary, to the nearest one hundred thousandth of a percentage point, with five one-millionths of a percentage point rounded upward (for example, 9.876545% (or 0.09876545) would be rounded to 9.87655% (or 0.0987655)),
and all dollar amounts shall be rounded to the nearest cent, with one-half cent being rounded upward. 
 All determinations and any
calculations made by the Calculation Agent for the purposes of calculating the applicable interest on this Global Security shall be conclusive and binding on the Holders, the Issuer, the Trustee and the Paying Agent, absent manifest error. The
Calculation Agent shall not be responsible to the Issuer, the Holders or any third party for any failure of the Reference Banks to provide quotations as requested of them or as a result of the Calculation Agent having acted on any quotation or other
information given by any Reference Bank which subsequently may be found to be incorrect or inaccurate in any way. 
 “Floating Rate
Interest Determination Date” means the second London banking day preceding the applicable Floating Rate Interest Reset Date; provided that the first Floating Rate Interest Determination Date shall be the second London banking day preceding the
Issue Date (which is October 3, 2016). 
 “Floating Rate Interest Period” means the period beginning on (and including) a Floating
Rate Interest Payment Date and ending on (but excluding) the next succeeding Floating Rate Interest Payment Date; provided that the first Floating Rate Interest Period shall begin on October 5, 2016 and shall end on (but exclude) January 5, 2017.

 “Floating Rate Interest Reset Date” means every January 5, April 5, July 5 and October 5 of each year, commencing on
January 5, 2017; provided that the interest rate in effect from (and including) October 5, 2016 to (but excluding) the first Floating Rate Interest Reset Date shall be the Floating Rate Initial Interest Rate. 

“London banking day” means any day on which dealings in Dollars are transacted in the London interbank market. 

“Reuters Page LIBOR01” means the display that appears on Reuters Page LIBOR01 or any page as may replace such page on such service
(or any successor service) for the purpose of displaying LIBOR of major banks for Dollars. 
 Interest in respect of this Global Security
that is payable, and is punctually paid or duly provided for, on any Floating Rate Interest Payment Date shall be paid to the Person in whose name this Global Security (or one or more Predecessor Global Securities) is registered at the close of
business on the Regular Record Date for such interest. 
 Payment of interest, if any, in respect of this Global Security may be made by
check mailed to the address of the Person entitled thereto as such address shall appear in the Register, or by wire transfer or transfer by any other means to an account designated in writing by such Person to the Paying Agent at least 15 days prior
to such payment date. 
 Any interest in respect of this Global Security that is payable, but is not punctually paid or duly provided for,
on any Floating Rate Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holders thereof on the relevant Regular Record Date by virtue of their having been such Holders; and such Defaulted
Interest may be paid by the Issuer, at its election in each case, as provided in Clause (1) or (2) below: 

  
 B-3 

	 	(1)	The Issuer may elect to make payment of such Defaulted Interest to the Persons in whose names this Global Security (or its respective Predecessor Global Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which shall be fixed in the manner provided for in the Indenture. 

  

	 	(2)	The Issuer may make payment of any Defaulted Interest on this Global Security in any other lawful manner not inconsistent with the requirements of any securities exchange on which this Global Security may be listed, and
upon such notice as may be required by such exchange, if, after notice given by the Issuer to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 

All amounts of principal of (and premium, if any, on) and interest on this Global Security shall be paid by the Issuer, without deduction or
withholding for, or on account of, any present and future taxes, levies, imposts, duties, charges, fees, deductions or withholdings whatsoever imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom or any political
subdivision or any taxing authority thereof or therein having the power to tax (the “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 Taxing Jurisdiction or any subdivision or authority thereof, the Issuer shall pay such additional amounts of, or in respect of, the principal amount of, (and
premium, if any, on) and interest on this Global Security (“Additional Amounts”) as may be necessary in order that the net amounts paid to the Holders, after such deduction or withholding, shall equal the respective amounts of principal,
premium and interest, which would have been payable in respect of this Global Security had no such deduction or withholding been required, provided that the foregoing will not apply to any such tax, levy, impost, duty, charge, fee, deduction
or withholding which would not have been payable or due but for the fact that (i) the Holder of this Global Security or the owner of a beneficial interest in this Global Security is domiciled in, or is a national or resident of, or engaging in
business or maintaining a permanent establishment or physically present in, the Taxing Jurisdiction, or otherwise has some connection or former connection with the Taxing Jurisdiction other than the holding or ownership of this Global Security, or
the collection of any payment of (or in respect of) principal of (and premium, if any, on) and interest on or the enforcement of, this Global Security; (ii) this Global Security is presented for payment in the United Kingdom or (iii) this Global
Security is presented 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 the same for payment
at the close of such 30 day period; (iv) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed on a payment to an individual and is required to be made pursuant to European Council Directive 2003/48/EC or any other Directive
implementing the conclusions of the ECOFIN Council meeting of November 26-27, 2000 on the taxation of savings income, or any law implementing or complying with, or introduced in order to conform to, such Directive; (v) presentation for payment of
this Global Security was made to a paying agent who was required to make (or pass through) such deduction or withholding and presentation for payment could have been made to a paying agent who was not required to make (or pass through) such
deduction or withholding; (vi) there was a failure to comply by the Holder or the beneficial owner of this Global Security or the beneficial owner of any payment on this Global Security with a request of the Issuer addressed to the Holder or
the beneficial owner, including a request of the Issuer related to a claim for relief under any applicable double tax treaty (x) to provide information concerning the nationality, residence, identity or connection with a Taxing Jurisdiction of the
Holder or the beneficial owner or (y) to make any declaration or other similar claim to satisfy any information or reporting requirement, if the information or declaration is required or imposed by a statute, treaty, regulation, ruling or
administrative practice of the Taxing Jurisdiction as a precondition to exemption from withholding or deduction of all or part of the tax, duty, assessment or other governmental charge; (vii) such tax, levy, impost, duty, charge,

  
 B-4 

 
fee, deduction or withholding is imposed in respect of any estate, inheritance, gift, sale, transfer, personal property, wealth or similar tax, duty, assessment or other governmental charge; or
(viii) such tax, levy, impost, duty, charge, fee, deduction or withholding is imposed in respect of any combination of the above items. For the avoidance of doubt, all payments in respect of this Global Security shall be made subject to any
withholding or deduction required pursuant to FATCA, and the Issuer shall not be required to pay any Additional Amounts on account of any such deduction or withholding required pursuant to FATCA.

Whenever in this Global Security there is mentioned, in any context, the payment of any principal of (and premium, if any, on) or interest on
any Debt Security, such mention shall be deemed to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof and express mention of the payment of
Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where such express mention is not made. 

Upon any exchange of a portion of this Global Security for a definitive Debt Security, the portion of the principal amount hereof so exchanged
shall be endorsed by the Registrar on Schedule A hereto. The principal amount hereof shall be reduced for all purposes by the amount so exchanged and endorsed. 

Reference is hereby made to the further provisions of this Global Security set forth on the reverse hereof, which further provisions shall for
the purposes hereof have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed
by the Trustee or an authenticating agent by manual signature, this Global Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purposes. 

[Remainder of page intentionally left blank] 

  
 B-5 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its corporate
seal. 
  

			
	 HSBC Holdings plc,
as Issuer

		
	 By:
	 	  

		 	 [●]

 Dated: October 5, 2016 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Debt Securities of a series issued under the within-mentioned Indenture. 

 

			
	 The Bank of New York Mellon, London Branch, as Trustee

		
	 By:
	 	  

		 	 [●]

 Dated: October 5, 2016 

  
 B-6 

 REVERSE OF GLOBAL SECURITY 

US$[●] 
 FLOATING RATE SENIOR
UNSECURED NOTES DUE 2022 
 This Global Security is one of a duly authorized issue of Debt Securities issued and to be issued in one or more
series under and governed by an Indenture dated as of August 26, 2009 (as amended or supplemented from time to time), by and among the Issuer, The Bank of New York Mellon, London Branch, as trustee (the “Trustee,” which term includes any
successor trustee under the Indenture), and HSBC Bank USA, National Association (“HBUS”), as registrar and paying agent (the “Base Indenture”), as supplemented by a Third Supplemental Indenture dated as of October 5, 2016 (the
“Third Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among the Issuer, the Trustee and HBUS, as paying agent, registrar and calculation agent (the “Agent”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer, the Trustee, the Holders and of the terms upon which the Debt Securities are,
and are to be, authenticated and delivered. 
 Under the terms of the Indenture, the Debt Securities may be redeemed, as a whole but not in
part, at the Issuer’s option, on not less than 30 nor more than 60 days’ notice, at any time at a redemption price equal to the principal amount thereof, together with accrued interest, if any, to the date fixed for redemption, if, at any
time, the Issuer determines that: 
 (a) in making payment under the Debt Securities in respect of principal (or premium, if
any) or interest the Issuer has or shall or would become obligated to pay Additional Amounts as provided in the Indenture and in this Global Security provided such obligation results from a change in or amendment to the laws of the Taxing
Jurisdiction, or any change in the official application or interpretation of such laws (including a decision of any court or tribunal), or any change in, or in the official application or interpretation of, or execution of, or amendment to, any
treaty or treaties affecting taxation to which the United Kingdom is a party, which change, amendment or execution becomes effective after the Issue Date; or 

(b) the payment of interest in respect of the Debt Securities has become or will or 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 reenactment thereof for the time being) as a result of a change in or amendment to the laws of the
Taxing Jurisdiction, or any change in the official application or interpretation of such laws, including a decision of any court, which change or amendment becomes effective on or after the Issue Date; provided, however that, in the
case of (a) above, no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer would be obliged to pay such Additional Amounts were a payment in respect of the Debt Securities then due. 

If an Event of Default with respect to the Debt Securities of this series shall occur and be continuing, the principal of all of the Debt
Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. The Indenture provides that in certain circumstances such declaration and its consequences may be rescinded and annulled by the
Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such series. If a Default with respect to Debt Securities of this series occurs and is continuing, the Trustee may pursue certain remedies as set forth in the
Indenture. The Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of this series may on behalf of all the Holders waive any past Event of Default or any Default under the Indenture or the Debt
Securities and its consequences except a default (i) in the payment of principal of (or premium, if any, on) or any installment of interest on any of the Debt Securities or (ii) in respect of a covenant or provision which under the Indenture cannot
be modified or amended without the consent of the Holder of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt Security and of 

  
 B-7 

 
any Debt Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt Security or
such other Debt Securities. 
 The Indenture contains provisions permitting the Issuer and the Trustee (i) without the consent of the
Holders of any Debt Securities issued under the Indenture to execute one or more supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure the Debt Securities, and (ii) with the consent of the Holders of not
less than a majority in aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of the Indenture or of modifying in any manner the rights of Holders under the Indenture; provided that, with respect to certain enumerated provisions, no such supplemental indenture may be entered into
without the consent of the Holder of each Outstanding Debt Security affected thereby. The Indenture also permits the Holders of at least a majority in aggregate principal amount of the Outstanding Debt Securities of each series to be affected, on
behalf of the Holders of all Debt Securities of such series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture. Any such consent or waiver by the Holder of this Global Security shall bind every future Holder of
this Global Security and of any Global Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Global Security or such other Global
Securities. 
 Subject to the terms of the Indenture, the Depositary may surrender this Global Security or any portion hereof in exchange,
in whole or in part, for definitive Debt Securities, of this series in registered form and the Registrar, acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Security or the portions thereof to be exchanged, an
equal aggregate face amount of definitive Debt Securities (duly countersigned) in the numbers and in the names advised by the Depositary. 

By its acquisition of the Debt Securities represented by this Global Security, each Holder (which, for these purposes, includes each
beneficial owner of the Debt Securities) acknowledges, accepts, consents and agrees, notwithstanding any other term of the Debt Securities, the Indenture or any other agreements, arrangements or understandings between the Issuer and any Holder, to
be bound by (a) the effect of the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority that may include and result in any of the following, or some combination thereof: (i) the reduction of all, or a portion, of the Amounts Due;
(ii) the conversion of all, or a portion, of the Amounts Due into the Issuer’s or another Person’s ordinary shares, other securities or other obligations (and the issue to, or conferral on, the Holder of such ordinary shares, other
securities or other obligations), including by means of an amendment, modification or variation of the terms of the Debt Securities or the Indenture; (iii) the cancellation of the Debt Securities; and/or (iv) the amendment or alteration of the
Maturity of the Debt Securities or amendment of the amount of interest payable on the Debt Securities, or the interest payment dates, including by suspending payment for a temporary period; and (b) the variation of the terms of the Debt Securities
or the Indenture, if necessary, to give effect to the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority. No repayment or payment of Amounts Due shall become due and payable or be paid after the exercise of any UK Bail-in Power
by the Relevant UK Resolution Authority if and to the extent such amounts have been reduced, converted, cancelled, amended or altered as a result of such exercise. Moreover, each Holder (which, for these purposes, includes each beneficial owner of
the Debt Securities) consents to the exercise of any UK Bail-in Power as it may be imposed without any prior notice by the Relevant UK Resolution Authority of its decision to exercise such power with respect to the Debt Securities. 

“Amounts Due” means the principal amount of, and any accrued but unpaid interest, including any Additional Amounts, on, the Debt
Securities. References to such amounts will include amounts that have become due and payable, but which have not been paid, prior to the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority. 

  
 B-8 

 “UK Bail-in Power” means any write-down, conversion, transfer, modification or
suspension power existing from time to time under, and exercised in compliance with, any laws, regulations, rules or requirements in effect in the United Kingdom, relating to the transposition of the BRRD, including but not limited to the Banking
Act and the instruments, rules and standards created thereunder, pursuant to which (i) any obligation of a Regulated Entity (or other affiliate of such Regulated Entity) can be reduced, cancelled, modified or converted into shares, other securities
or other obligations of such Regulated Entity or any other person (or suspended for a temporary period); and (ii) any right in a contract governing an obligation of a Regulated Entity may be deemed to have been exercised. 

“Regulated Entity” refers to any BRRD Undertaking as such term is defined under the PRA Rulebook promulgated by the PRA, as amended
from time to time, which includes certain credit institutions, investment firms, and certain of their parent or holding companies. 

“Relevant UK Resolution Authority” means any authority with the ability to exercise a UK Bail-in Power. 

By its acquisition of the Debt Securities, each Holder (which, for these purposes, includes each beneficial owner of the Debt Securities): (i)
acknowledges and agrees that the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Debt Securities shall not give rise to a Default or 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, in law and/or in equity, 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 UK Bail-in Power
by the Relevant UK Resolution Authority with respect to the Debt Securities; and (iii) acknowledges and agrees that, upon the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority, the Trustee shall not be required to take any
further directions from Holders under Section 5.11 (Control by Holders of Debt Securities) of the Indenture; and that the Indenture shall not impose any duties upon the Trustee whatsoever with respect to the exercise of any UK Bail-in Power
by the Relevant UK Resolution Authority. 
 Notwithstanding clause (iii) of the immediately preceding paragraph, if, following the
completion of the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority, the Debt Securities remain outstanding (for example, if the exercise of the UK Bail-in Power results in only a partial write-down of the principal of the
Debt Securities), then the Trustee’s duties under the Indenture shall remain applicable with respect to the Debt Securities following such completion to the extent that the Issuer and the Trustee shall agree pursuant to a supplemental indenture
or an amendment to the Indenture; provided, however that notwithstanding the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority, there shall at all times be a Trustee hereunder pursuant to, and in accordance with
Section 6.09 of the Base Indenture, and the resignation and/or removal of the Trustee and the appointment of a successor trustee shall continue to be governed by Sections 6.10 and 6.11 of the Base Indenture, including to the extent no supplemental
indenture or amendment to the Indenture is agreed upon pursuant to the Indenture in the event the Debt Securities remain outstanding following the completion of the exercise of the UK Bail-in Power. 

It is the intention of the Issuer and the Trustee that the Issuer’s obligations to indemnify the Trustee in accordance with Section 6.07
of the Base Indenture (for the avoidance of doubt, as amended by Section 4.01 of the second supplemental indenture dated May 25, 2016) shall survive any exercise of the UK Bail in Power by the Relevant UK Resolution Authority. 

The exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Debt Securities shall not constitute an Event
of Default or a Default. 

  
 B-9 

 In addition to the right to enter into supplemental indentures pursuant to Sections 9.01 and 9.02
of the Base Indenture, the Issuer and the Trustee may enter into one or more indentures supplemental to the Indenture to modify and amend the terms of the Indenture or the Debt Securities, without the further consent of any Holders, to the extent
necessary to give effect to the exercise by the Relevant UK Resolution Authority of the UK Bail-in Power. 
 Upon the exercise of the UK
Bail-in Power by the Relevant UK Resolution Authority with respect to the Debt Securities, the Issuer shall provide a written notice to the Holders through DTC as soon as practicable regarding such exercise of the UK Bail-in Power for purposes of
notifying Holders and beneficial owners of the Debt Securities of such occurrence. The Issuer shall also deliver a copy of such notice to the Trustee for information purposes. 

Upon the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority that results in the reduction or cancellation of all, or a
portion, of the principal amount of this Global Security and/or the conversion of all, or a portion, of the principal amount of this Global Security into shares or other securities or other obligations of the Issuer or another person, the portion of
the principal amount hereof so reduced, cancelled and/or converted shall be endorsed by the Registrar on Schedule B hereto. The principal amount hereof shall be reduced for all purposes by the amount so reduced, cancelled and/or converted. 

By its acquisition of a Debt Security, each Holder (which, for these purposes, includes each beneficial owner of the Debt Securities) of the
Debt Securities shall be deemed to have authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it holds the Debt Securities to take any and all necessary action, if required, to implement the
exercise of any UK Bail-in Power with respect to the Debt Securities as it may be imposed, without any further action or direction on the part of such Holder or beneficial owner, the Trustee and the Agent (and any other agent acting in connection
with the relevant series of Debt Securities). 
 To the fullest extent permitted by law, the Holders and the Trustee, in respect of any
claims of such Holders to payment of any principal, premium or interest in respect of the Debt Securities, by their acceptance of the Debt Securities, shall be deemed to have waived any right of set-off or counterclaim that such Holders or, as the
case may be, the Trustee in such respect, might otherwise have. 
 ANY HOLDER (WHICH, FOR THESE PURPOSES, INCLUDES EACH BENEFICIAL OWNER OF
THE DEBT SECURITIES) THAT ACQUIRES THE DEBT SECURITIES IN THE SECONDARY MARKET AND ANY SUCCESSORS, ASSIGNS, HEIRS, EXECUTORS, ADMINISTRATORS, TRUSTEES IN BANKRUPTCY AND LEGAL REPRESENTATIVES OF ANY HOLDER OR BENEFICIAL OWNER OF THE DEBT SECURITIES
SHALL BE DEEMED TO ACKNOWLEDGE, AGREE TO BE BOUND BY AND CONSENT TO THE SAME PROVISIONS SPECIFIED HEREIN TO THE SAME EXTENT AS THE HOLDERS OR BENEFICIAL OWNERS OF THE DEBT SECURITIES THAT ACQUIRE THE DEBT SECURITIES 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 DEBT SECURITIES RELATED TO THE UK BAIL-IN POWER. 

The Indenture and the Debt Securities may be amended and modified as provided in the Indenture. 

All terms used in this Global Security and not otherwise defined shall have the meanings ascribed to them in the Indenture. 

The Third Supplemental Indenture and the Debt Securities shall be governed by, and construed in accordance with, the laws of the State of New
York. 

  
 B-10 

  
 B-11 

 SCHEDULE A 

EXCHANGES FOR DEFINITIVE DEBT SECURITIES 

The following exchanges of parts of this Global Security for Definitive Debt Securities have been made: 

 

									
	 Date Made
	  	 	  	 Principal amount

exchanged for Definitive
 Debt Securities
	  	 	  	 Remaining principal

amount following such
 exchange

	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

  
 B-12 

 SCHEDULE B 

REDUCTION, CANCELLATION OR CONVERSION OF DEBT SECURITIES UPON THE 

EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK RESOLUTION 

AUTHORITY 
  

									
	 Date made
	  	 	  	 Principal amount

reduced, cancelled
 and/or converted
	  	 	  	 Remaining principal

amount following
 reduction, cancellation

and/or conversion

	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

					
	  
	  		  	  
	  		  	  

  
 B-13

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