Document:

Exhibit 4.1

 

 

 

 

LLOYDS BANKING GROUP PLC

 

as Company,

 

and

 

THE BANK OF NEW YORK MELLON,

acting through its London Branch

 

as Trustee

 

 

 

THIRD SUPPLEMENTAL INDENTURE

 

dated as of June 19, 2019

 

to

 

CAPITAL SECURITIES INDENTURE

 

dated as of March 6, 2014

 

in respect of

 

$500,000,000 Fixed Rate Reset Additional
Tier 1 Perpetual Subordinated Contingent Convertible Securities

 

 

     

     

    

TABLE
OF CONTENTS

_______________________________________

Page

 

	Article
    1

    Definitions
	Section
    1.01.  Definition of Terms	2
	Section
    1.02.  Separability Clause	20
	Section
    1.03.  Benefits of Instrument	20
	Section
    1.04.  Relation to Capital Securities Indenture	20
	Article
    2 

    The Additional Tier 1 Securities
	Section
    2.01.  Form, Title, Terms and Payments	20
	Section
    2.02.  Interest	22
	Section
    2.03.  Interest Payments Discretionary	23
	Section
    2.04.  Restriction on Interest Payments	24
	Section
    2.05.  Agreement to Interest Cancellation	24
	Section
    2.06.  Notice of Interest Cancellation	25
	Section
    2.07.  Payment of Principal, Interest and Other Amounts	25
	Section
    2.08.  Optional Redemption	26
	Section
    2.09.  Optional Tax Redemption	26
	Section
    2.10.  Regulatory Event Redemption	27
	Section
    2.11.  Substitution or Variation	28
	Section
    2.12.  Notice of Redemption, Substitution or Variation	28
	Section
    2.13.  Canceled Interest Not Payable Upon Redemption	30
	Section
    2.14.  Condition to Redemption, Purchase, Substitution or Variation	31
	Section
    2.15.  Automatic Conversion upon Trigger Event	32
	Section
    2.16.  Settlement Shares	36
	Section
    2.17.  Settlement Shares Offer	36
	Section
    2.18.  Settlement Procedure	38
	Section
    2.19.  Failure to Deliver a Settlement Notice	39
	Section
    2.20.  Delivery of ADSs	40
	Section
    2.21.  Agreement with Respect to Exercise of U.K. Bail-in Power	40
	Article
    3 

    Anti-Dilution
	Section
    3.01.  Adjustment of Conversion Price	42
	Section
    3.02.  Qualifying Relevant Event	48
	Section
    3.03.  No Change to the Terms of Additional Tier 1 Securities on Non-Qualifying Relevant Event	49

 

    i 

     

    

	Article
    4 

    Enforcement Events and Remedies
	Section
    4.01.  Winding-up or Administration Event	49
	Section
    4.02.  Non-Payment Event	49
	Section
    4.03.  Limited Remedies for Breach of Performance Obligations	50
	Section
    4.04.  No Other Remedies and Other Terms	50
	Section
    4.05.  Waiver of Past Defaults	51
	Article
    5 

Subordination
	Section
    5.01.  Subordination to Claims of Senior Creditors	52
	Section
    5.02.  No Set-Off	53
	Article
    6 

Covenants
	Section
    6.01.  Undertakings	54
	Article
    7 

Satisfaction and Discharge
	Section
    7.01.  Satisfaction and Discharge of Indenture	55
	Article
    8 

Supplemental Indentures
	Section
    8.01.  Amendments or Supplements Without Consent of Holders	55
	Section
    8.02.  Amendments or Supplements With Consent of Holders	56
	Section
    8.03.  Holders Approval of Amendments	56
	Section
    8.04.  Relevant Regulator Consent	56
	Article
    9 

Additional Amounts
	Section
    9.01.  Additional Amounts	56
	Article
    10 

Miscellaneous
	Section
    10.01.  Effect of Supplemental Indenture	58
	Section
    10.02.  Other Documents to Be Given to the Trustee	59
	Section
    10.03.  Notices to, and Consents Required from, the Relevant Regulator to Be Given to the Trustee	59
	Section
    10.04.  Survival	59
	Section
    10.05.  Confirmation of Indenture	59
	Section
    10.06.  Concerning the Trustee	59

 

 

    ii 

     

    

	Section
    10.07.  Governing Law	60
	Section
    10.08.  Counterparts	60

 

 

 

    iii 

     

    

This THIRD SUPPLEMENTAL INDENTURE (“Third
Supplemental Indenture”), dated as of June 19, 2019, between, LLOYDS BANKING GROUP PLC, a company incorporated in Scotland
with registered number 95000, as issuer (the “Company”) and THE BANK OF NEW YORK MELLON, a banking corporation
duly organized and existing under the laws of the State of New York, acting through its London Branch, as trustee under the Capital
Securities Indenture hereinafter referred to (the “Trustee”) having its Corporate Trust Office at One Canada
Square, London E14 5AL, United Kingdom.

 

WITNESSETH:

 

WHEREAS, the Company and the Trustee have
executed and delivered a Capital Securities Indenture, dated as of March 6, 2014 (the “Capital Securities Indenture”
and, together with this Third Supplemental Indenture, the “Indenture”), to provide for the issuance of the Company’s
Capital Securities (the “Securities”);

 

WHEREAS, the Company hereto desires to issue
a series of Securities to be known as the $500,000,000 Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible
Securities (the “Additional Tier 1 Securities”);

 

WHEREAS, the parties hereto desire to establish
that the Additional Tier 1 Securities shall be issued in the form of one or more Global Securities substantially in the form of
Exhibit A to this Third Supplemental Indenture pursuant to Sections 2.01 and 3.01 of the Capital Securities Indenture;

 

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

 

WHEREAS, Section 9.01(d) of the Capital
Securities Indenture permits the Company and the Trustee to add to, change or eliminate any provisions of the Capital Securities
Indenture, subject to certain conditions, without the consent of Holders;

 

WHEREAS, this Third Supplemental Indenture
shall amend and supplement the Capital Securities Indenture but only with respect to the Additional Tier 1 Securities; to the extent
the terms of the Capital Securities Indenture are inconsistent with such provisions of this Third Supplemental Indenture, the terms
of this Third Supplemental Indenture shall govern, but only with respect to the Additional Tier 1 Securities;

 

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

 

WHEREAS, the Company has requested and does
hereby request that the Trustee execute and deliver this Third Supplemental Indenture and whereas all actions required by the Company
to be taken in order to make this Third Supplemental Indenture a valid, binding and enforceable instrument in accordance with its
terms, have been taken and

 

     

     

    

performed, and the execution and delivery of this Third Supplemental
Indenture has been duly authorized in all respects,

 

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

 

Article
1

Definitions

 

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

 

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

 

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

 

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

 

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

 

(e)           
for purposes of this Third Supplemental Indenture and the Capital Securities Indenture, the term “series”
shall mean the series of Securities designated as the Additional Tier 1 Securities;

 

(f)            
the words “hereof”, “herein” and “hereunder” and words of similar import, when used
in this Third Supplemental Indenture, refer to this Third Supplemental Indenture as a whole and not to any particular provision
of this Third Supplemental Indenture;

 

(g)           
the terms “U.S. dollars” and “$” and mean United States Dollars;

 

(h)           
the terms “pounds sterling” and “£” mean British pounds sterling;

 

(i)            
references herein to a specific Section, Article or Exhibit refer to Sections or Articles of, or an Exhibit to, this Third
Supplemental Indenture;

 

(j)            
wherever the words “include”, “includes” or “including” are used in this Third Supplemental
Indenture, they shall be deemed to be followed by the words “without limitation;”

 

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

 

(l)            
for purposes of Article III of this Third Supplemental Indenture, references therein to any act or statute or any provision
of any act or statute shall be deemed also to 

 

    2 

     

    

refer to any statutory modification
or re-enactment thereof or any statutory instrument, order or regulation made thereunder or under such modification or re-enactment;
and

 

(m)            
references to any issue or offer or grant to Shareholders “as a class” or “by way of rights” shall
be taken to be references to an issue or offer or grant to all or substantially all Shareholders or Existing Shareholders, as
the case may be, other than Shareholders or Existing Shareholders, as the case may be, to whom, by reason of the laws of any territory
or requirements of any recognized regulatory body or any other stock exchange or securities market in any territory or in connection
with fractional entitlements, it is determined not to make such issue or offer or grant.

 

“Accrued
Interest” means any accrued and unpaid interest on the Additional Tier 1 Securities, excluding any interest which has
been canceled or deemed to be canceled as described in ‎Section
2.03 and ‎Section 2.04 hereof.

 

“Acquirer”
means the person which, following a Relevant Event, controls the Company.

 

“ADS”
means the American Depository Shares which are the subject of the ADS Deposit Agreement.

 

“ADS
Deposit Agreement” means the Amended and Restated Deposit Agreement among the Company, The Bank of New York Mellon and
all holders from time to time of American Depositary Receipts issued thereunder.

 

“ADS
Depository” means The Bank of New York Mellon, as the depositary under the Company’s ADS Deposit Agreement.

 

“Alternative
Consideration” means in respect of each Additional Tier 1 Security and as determined by the Company (i) if all of the
Settlement Shares to be issued and delivered following Automatic Conversion are sold in the Settlement Shares Offer, the pro
rata share of the cash proceeds from the sale of such Settlement Shares attributable to such Additional Tier 1 Security translated
from pounds sterling into U.S. dollars at a then-prevailing exchange rate as determined by the Settlement Share Depository (less
the pro rata share of any foreign exchange transaction costs and an amount equal to the pro rata share of any stamp
duty, stamp duty reserve tax, or any other capital, issue, transfer, registration, financial transaction or documentary tax that
may arise or be paid in connection with the issue and delivery of Settlement Shares to the Settlement Share Depository pursuant
to the Settlement Shares Offer), (ii) if some but not all of such Settlement Shares to be issued and delivered upon Automatic
Conversion are sold in the Settlement Shares Offer, (x) the pro rata share of the cash proceeds from the sale of such Settlement
Shares attributable to such Additional Tier 1 Security translated from pounds sterling into U.S. dollars at a then-prevailing
exchange rate as determined by the Settlement Share Depository (less the pro rata share of any foreign exchange transaction
costs and an amount equal to the pro rata share of any stamp duty, stamp duty reserve tax, or any other capital, issue,
transfer, registration, financial transaction or documentary tax that may arise or be paid in connection with the delivery of
the Settlement Shares to

 

    3 

     

    

the Settlement Share Depository
pursuant to the Settlement Shares Offer) and (y) the pro rata share of such Settlement Shares not sold pursuant to the
Settlement Shares Offer attributable to such Additional Tier 1 Security rounded down to the nearest whole number of Settlement
Shares and (iii) if no Settlement Shares are sold in the Settlement Shares Offer, the relevant number of Settlement Shares that
would have been received had the Company not elected that the Settlement Share Depository should carry out a Settlement Shares
Offer.

 

“Applicable
Regulations” means, at any time, the laws, regulations, requirements, guidelines and policies relating to capital adequacy
(including, without limitation, as to leverage) then in effect in the United Kingdom including, without limitation to the generality
of the foregoing (and for so long as the same are applicable in the United Kingdom), any delegated or implementing acts (such
as regulatory technical standards) adopted by the European Commission and any regulations, requirements, guidelines and policies
relating to capital adequacy adopted by the Relevant Regulator, from time to time (whether or not such requirements, guidelines
or policies are applied generally or specifically to the Company or to the Company and its subsidiaries).

 

“Approved
Entity” means a body corporate that is incorporated or established under the laws of an OECD member state and which,
on the occurrence of the Relevant Event, has in issue Relevant Shares.

 

“Assets”
means the unconsolidated gross assets of the Company, as shown in the latest published audited balance sheet of the Company, adjusted
for subsequent events in such manner as the directors of the Company may determine.

 

“Automatic
Conversion” means the irrevocable and automatic release of all of the Company’s obligations under the Additional
Tier 1 Securities on the Conversion Date in consideration of the Company’s issuance and delivery of the Settlement Shares
at the Conversion Price to the Settlement Share Depository (on behalf of the Holders and Beneficial Owners of the Additional Tier
1 Securities) in accordance with the terms of the Additional Tier 1 Securities.

 

“Beneficial
Owners” shall mean (a) with respect to Global Securities, the owners of beneficial interests in the Securities prior
to the occurrence of the Final Cancellation Date and (b) with respect to definitive Securities, the Holders in whose names the
Securities are registered in the Capital Securities Register.

 

“Business
Day” means any day (other than a Saturday, a Sunday or a public holiday) on which commercial banks and foreign exchange
markets are open for business in both London, England and New York City.

 

“Calculation
Agent” means The Bank of New York Mellon, acting through its London Branch, or its successor appointed by the Company
pursuant to the Calculation Agent Agreement between the Company and The Bank of New York Mellon, dated as of the date hereof.

 

    4 

     

    

“Cancellation
Date” means (i) with respect to any Additional Tier 1 Security for which a Settlement Notice is received by the Settlement
Share Depository on or before the Notice Cut-off Date, the applicable Settlement Date and (ii) with respect to any Additional
Tier 1 Security for which a Settlement Notice is not received by the Settlement Share Depository on or before the Notice Cut-off
Date, the Final Cancellation Date.

 

“Cash
Component” means that portion, if any, of the Alternative Consideration consisting of cash.

 

“Cash
Dividend” means any dividend or distribution in respect of the Ordinary Shares which is to be paid or made to the Shareholders
as a class in cash (in whatever currency) and however described and whether payable out of share premium account, profits, retained
earnings or any other capital or revenue reserve or account, and including a distribution or payment to the Shareholders upon
or in connection with a reduction of capital.

 

“CET1
Capital” means, at any date, the sum, expressed in pounds sterling, of all amounts that constitute Common Equity Tier
1 Capital of the Group as at such date, less any deductions from Common Equity Tier 1 Capital of the Group required to be made
as at such date, in each case as calculated by the Company on a consolidated and fully loaded basis in accordance with the Applicable
Regulations applicable to the Group as at such date (which calculation shall be binding on the Trustee and Holders and Beneficial
Owners of the Additional Tier 1 Securities).

 

“CET1
Ratio” means, at any date, the ratio of the Group’s CET1 Capital as of such date to Risk Weighted Assets as of
the same such date, expressed as a percentage, and on the basis that all measures used in such calculation shall be calculated
on a Fully Loaded basis.

 

“Common
Equity Tier 1 Capital” shall have the meaning ascribed to such term in CRD IV (as the same may be amended or replaced
from time to time) as interpreted and applied in accordance with the Applicable Regulations then applicable to the Group.

 

“Comparable
Treasury Issue” means, with respect to any Reset Period, the U.S. Treasury security or securities selected by the Company
with a maturity date on or about the last day of such Reset Period and that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt securities denominated in U.S. dollars and
having a maturity of five years.

 

“Comparable
Treasury Price” means, with respect to any Reset Date, (i) the arithmetic average of the Reference Treasury Dealer Quotations
for such Reset Date (calculated on the Reset Determination Date for such Reset Date), after excluding the highest and lowest such
Reference Treasury Dealer Quotations, or (ii) if fewer than five such Reference Treasury Dealer Quotations are received, the arithmetic
average of all such quotations, or (iii) if fewer than two such Reference Treasury Dealer Quotations are

 

    5 

     

    

received, then such Reference
Treasury Dealer Quotation as quoted in writing to the Calculation Agent by a Reference Treasury Dealer.

 

“Compliant
Securities” means securities issued directly by the Company that, (a) have terms not materially less favorable to an
investor than the terms of the Additional Tier 1 Securities (as reasonably determined by the Company in consultation with an investment
bank or financial adviser of international standing (which in either case is independent of the Company)) and provided that the
Company has delivered an officer’s certificate to such effect (including as to such consultation) to the Trustee (upon which
the Trustee shall be entitled to rely without further enquiry and without liability to any person) prior to the issue or variation
of the relevant securities); (b) subject to (a) above (1) contain terms which comply with the then current requirements of the
Relevant Regulator in relation to additional tier 1 capital; (2) provide for the same interest rate and Interest Payment Dates
from time to time applying to the Additional Tier 1 Securities; (3) rank pari passu with the ranking of the Additional
Tier 1 Securities; (4) preserve any existing rights under the Indenture to any accrued interest or other amounts which have not
been either paid or canceled (but without prejudice to the right of the Company to cancel the same under the terms of the Compliant
Securities, if applicable); (5) preserve the obligations (including the obligations arising from the exercise of any right) of
the Company as to payments of principal in respect of the Additional Tier 1 Securities, including (without limitation) as to the
timing and amount of such payments; and (6) contain terms providing for the conversion of the Additional Tier 1 Securities, the
cancellation of payments of interest thereon or write-down of the principal of the Additional Tier 1 Securities only if such terms
are not materially less favorable to an investor than the terms of the Additional Tier 1 Securities; (c) are (1) listed on the
Global Exchange Market of Euronext Dublin or (2) listed on such other stock exchange as is a Recognized Stock Exchange at that
time as selected by the Company and; (d) where the Additional Tier 1 Securities which have been substituted or varied had a published
rating (solicited by, or assigned with the cooperation of, the Company) from a Rating Agency immediately prior to their substitution
or variation, each such Rating Agency has ascribed, or announced its intention to ascribe, an equal or higher published rating
to the relevant Compliant Securities.

 

“control”
means, for the purposes of the definition of a Relevant Event:

 

		(a)	the acquisition or holding of legal
                                         or beneficial ownership of more than 50% of the issued Ordinary Shares of the Company;
                                         or

 

		(b)	the right to appoint and/or remove
                                         all or the majority of the members of the Board of Directors of the Company, whether
                                         obtained directly or indirectly and whether obtained by ownership of share capital, contract
                                         or otherwise.

 

“Conversion
Date” means the date specified in the Conversion Trigger Notice and shall occur without delay upon the occurrence of
a Trigger Event (and shall be no later than one month following the occurrence of the relevant Trigger Event, or such shorter
period as the Relevant Regulator may require).

 

    6 

     

    

“Conversion
Price” means $0.803, subject to the anti-dilution provisions set forth under ‎Article
3.

 

“Conversion
Trigger Notice” means the written notice (substantially in the form attached hereto as Exhibit B) to be delivered by
the Company to the Trustee directly and to DTC, the Holder of the Global Securities (or, if the Securities are definitive Securities,
by the Company to the Trustee directly and to the Holders at their addresses shown on the Capital Securities Register) specifying
(i) the CET1 Ratio, (ii) the Conversion Date, (iii) the then-prevailing Conversion Price (which Conversion Price shall remain
subject to any subsequent adjustment pursuant to ‎Article
3 up to the Conversion Date), (iv) the contact details of any Settlement Share Depository, or, if the Company has been unable
to appoint a Settlement Share Depository, such other arrangements for the issuance and/or delivery of the Settlement Shares, ADSs
or any Alternative Consideration to the Holders of the Additional Tier 1 Securities as it shall consider reasonable in the circumstances,
and (v) that the Additional Tier 1 Securities shall remain in existence for the sole purpose of evidencing the Holder’s
right to receive Settlement Shares, ADSs or Alternative Consideration, as applicable, from the Settlement Share Depository and
that the Additional Tier 1 Securities may continue to be transferable until the Suspension Date.

 

“CRD
IV” means the legislative package consisting of Directive 2013/36/EU on access to the activity of credit institutions
and the prudential supervision of credit institutions and investment firms, as the same may be amended or replaced from time to
time (the “Directive”) and Regulation (EU) No. 575/2013 on prudential requirements for credit institutions
and investment firms of the European Parliament and of the Council of 26 June 2013, as the same may be amended or replaced from
time to time (the “Regulation”).

 

“CREST”
means the relevant system, as defined in the CREST Regulations, or any successor clearing system.

 

“CREST
Regulations” means the Uncertificated Securities Regulations 2001 (SI 2001 No. 01/378), as amended.

 

“Current
Market Price” means, in respect of an Ordinary Share at a particular date, the average of the daily Volume Weighted
Average Price of an Ordinary Share on each of the five (5) consecutive Dealing Days (or, for the purposes of ‎Section
3.01(d), ten (10) consecutive Dealing Days) ending on the Dealing Day immediately preceding such date; provided that, if at any
time during the said five (5) (or ten (10)) Dealing-Day period the Volume Weighted Average Price shall have been based on a price
ex-dividend (or ex-any other entitlement) and during some other part of that period the Volume Weighted Average Price shall have
been based on a price cum-dividend (or cum- any other entitlement), then:

 

		(i)	if the Ordinary Shares to be
                                         issued and delivered do not rank for the Dividend (or entitlement) in question, the Volume
                                         Weighted Average Price on the dates on which the Ordinary Shares shall have been based
                                         on a price cum-dividend (or cum- any other entitlement) shall, for the

 

    7 

     

    

purposes
of this definition, be deemed to be the amount thereof reduced by an amount equal to the Fair Market Value of any such dividend
or entitlement per Ordinary Share as at the date of first public announcement relating to such dividend or entitlement, in any
such case, determined on a gross basis and disregarding any withholding or deduction required to be made for or on account of
tax, and disregarding any associated tax credit; or

 

		(ii)	if the Ordinary Shares to be
                                         issued and delivered do rank for the Dividend (or entitlement) in question, the Volume
                                         Weighted Average Price on the dates on which the Ordinary Shares shall have been based
                                         on a price ex-dividend (or ex- any other entitlement) shall, for the purposes of this
                                         definition, be deemed to be the amount thereof increased by an amount equal to the Fair
                                         Market Value of any such dividend or entitlement per Ordinary Share as at the date of
                                         first public announcement relating to such dividend or entitlement, in any such case,
                                         determined on a gross basis and disregarding any withholding or deduction required to
                                         be made for or on account of tax, and disregarding any associated tax credit,

 

and
provided further that, if on each of the said five (5) Dealing Days (or, for the purposes of ‎Section
3.01(d), the said ten (10) Dealing Days), the Volume Weighted Average Price shall have been based on a price cum-dividend (or
cum-any other entitlement) in respect of a dividend (or other entitlement) which has been declared or announced but the Ordinary
Shares to be issued and delivered do not rank for that dividend (or other entitlement), the Volume Weighted Average Price on each
of such dates shall, for the purposes of this definition, be deemed to be the amount thereof reduced by an amount equal to the
Fair Market Value of any such dividend or entitlement per Ordinary Share as at the date of first public announcement relating
to such dividend or entitlement, in any such case, determined on a gross basis and disregarding any withholding or deduction required
to be made for or on account of tax, and disregarding any associated tax credit,

 

and
provided further that, if the Volume Weighted Average Price of an Ordinary Share is not available on one or more of the said five
(5) Dealing Days (or, for the purposes of ‎Section 3.01(d),
the said ten (10) Dealing Days) (disregarding for this purpose the proviso to the definition of Volume Weighted Average Price),
then the average of such Volume Weighted Average Prices which are available in that five (5) (or ten (10)) Dealing-Day period
shall be used (subject to a minimum of two such prices) and if only one, or no, such Volume Weighted Average Price is available
in the relevant period, the Current Market Price shall be determined in good faith by an Independent Adviser.

 

“Dealing
Day” means a day on which the Relevant Stock Exchange or relevant stock exchange or securities market is open for business
and on which Ordinary Shares,

 

    8 

     

    

Other Securities, options, warrants
or other rights (as the case may be) may be dealt in (other than a day on which the Relevant Stock Exchange or relevant stock
exchange or securities market is scheduled to or does close prior to its regular weekday closing time).

 

“Distributable
Items” shall have the meaning assigned to such term in CRD IV (as the same may be amended or replaced from time to time),
as interpreted and applied in accordance with the Applicable Regulations then applicable to the Company, but amended so that any
reference therein to “before distributions to holders of own funds instruments” shall be read as a reference to “before
distributions by the Company to holders of Parity Securities, the Additional Tier 1 Securities or any Junior Securities”.

 

“DTC”
means The Depository Trust Company, or any successor clearing system.

 

“EEA
Regulated Market” means a market as defined by Article 4.1(21) of Directive 2014/65/EU of the European Parliament and
of the Council on markets in financial instruments.

 

“Enforcement
Event” means any of (i) a Winding-up or Administration Event, (ii) a Non-payment Event, or (iii) a breach of a Performance
Obligation.

 

“Equity
Share Capital” has the meaning provided in Section 548 of the U.K. Companies Act 2006.

 

“Exempt
Newco Scheme” means a Newco Scheme where, immediately after completion of the relevant Scheme of Arrangement, the ordinary
shares or units or equivalent of Newco (or depositary or other receipts or certificates representing ordinary shares or units
or equivalent of Newco) are (i) admitted to trading on the Relevant Stock Exchange or (ii) admitted to listing on such other Regulated
Market as the Company or Newco may determine.

 

“Extraordinary
Dividend” means any Cash Dividend that is expressly declared by the Company to be a capital distribution, extraordinary
dividend, extraordinary distribution, special dividend, special distribution or return of value to its Shareholders as a class
or any analogous or similar term, in which case the Extraordinary Dividend shall be such Cash Dividend.

 

“Fair
Market Value” means, with respect to any property on any date, the fair market value of that property as determined
by an Independent Adviser in good faith, provided that (i) the Fair Market Value of a Cash Dividend shall be the amount of such
Cash Dividend; (ii) the Fair Market Value of any other cash amount shall be the amount of such cash; (iii) where Other Securities,
options, warrants or other rights are publicly traded on a stock exchange or securities market of adequate liquidity (as determined
in good faith by an Independent Adviser), the Fair Market Value (a) of such Other Securities shall equal the arithmetic mean of
the daily Volume Weighted Average Prices of such Securities and (b) of such options, warrants or other rights shall equal the
arithmetic mean of the daily closing prices of such options, warrants or other rights, in the case of (a) and (b), during the
period of five (5) Dealing Days on the relevant stock exchange or securities market commencing on such date (or, if later, the
first such

 

    9 

     

    

Dealing Day such Other Securities,
options, warrants or other rights are publicly traded) or such shorter period as such Other Securities, options, warrants or other
rights are publicly traded; (iv) where Other Securities, options, warrants or other rights are not publicly traded on a stock
exchange or securities market of adequate liquidity (as aforesaid), the Fair Market Value of such Other Securities, options, warrants
or other rights shall be determined in good faith by an Independent Adviser, on the basis of a commonly accepted market valuation
method and taking account of such factors as it considers appropriate, including the market price per Ordinary Share, the dividend
yield of an Ordinary Share, the volatility of such market price, prevailing interest rates and the terms of such Other Securities,
options, warrants or other rights, including as to the expiry date and exercise price (if any) thereof. Such amounts shall, in
the case of (i) above, be translated into the Relevant Currency (if declared, announced, made, paid or payable in a currency other
than the Relevant Currency, and if the relevant dividend is payable at the option of the Company or a shareholder in any currency
additional to the Relevant Currency, the relevant dividend shall be treated as payable in the Relevant Currency) at the rate of
exchange used to determine the amount payable to shareholders who were paid or are to be paid or are entitled to be paid the Cash
Dividend in the Relevant Currency; and, in any other case, shall be translated into the Relevant Currency (if expressed in a currency
other than the Relevant Currency) at the Prevailing Rate on that date. In addition, in the case of (i) and (ii) above, the Fair
Market Value shall be determined on a gross basis and disregarding any withholding or deduction required to be made for or on
account of tax, and disregarding any associated tax credit.

 

“Final
Cancellation Date” means the date, as specified in the Settlement Request Notice, on which the Additional Tier 1 Securities
in relation to which no Settlement Notice has been received by the Settlement Share Depository on or before the Notice Cut-off
Date shall be canceled, which date may be up to twelve (12) Business Days following the Notice Cut-off Date.

 

“First
Call Date” means June 27, 2026.

 

“Fully
Loaded” means, in relation to a measure that is presented or described as being on a “Fully Loaded basis”,
that such measure is calculated without applying the transitional provisions set out in Part Ten of the Regulation (as may be
amended from time to time) in accordance with the Applicable Regulations as at the time such measure is determined.

 

“Governmental
Entity” means (i) the United Kingdom government, (ii) an agency of the United Kingdom government or (iii) a person or
entity (other than a body corporate) controlled by the United Kingdom government or any such agency referred to in (ii). If the
Company is then organized in another jurisdiction, the references to “United Kingdom government” shall be read as
references to the government of such other jurisdiction.

 

“Independent
Adviser” means an independent financial institution of international repute or an independent adviser of recognized
standing and expertise appointed by the Company at its own expense.

 

    10 

     

    

“Interest
Payment Date” means March 27, June 27, September 27 and December 27 of each year, commencing on September 27, 2019.

 

“Issue
Date” means June 19, 2019, being the date of the initial issue of the Additional Tier 1 Securities.

 

“Junior
Securities” means (i) any Ordinary Share or other securities of the Company ranking, or expressed to rank, junior to
the Additional Tier 1 Securities in a Winding-up or Administration Event occurring prior to a Trigger Event and/or (ii) any securities
issued by any other member of the Group where the terms of such securities benefit from a guarantee or support agreement entered
into by the Company which ranks, or is expressed to rank, junior to the Additional Tier 1 Securities in a Winding-up or Administration
Event occurring prior to a Trigger Event.

 

“Liabilities”
means the unconsolidated gross liabilities of the Company, as shown in the latest published audited balance sheet of the Company,
adjusted for contingent liabilities and prospective liabilities and for subsequent events in such manner as the directors of the
Company may determine.

 

“New
Conversion Condition” shall be satisfied if by not later than seven calendar days following the occurrence of a Relevant
Event where the Acquirer is an Approved Entity, the Company shall have entered into arrangements to the Company’s satisfaction
with the Approved Entity pursuant to which the Approved Entity irrevocably undertakes to the Trustee, for the benefit of the Holders
and Beneficial Owners, to deliver the Relevant Shares to the Settlement Share Depository upon Automatic Conversion.

 

“New
Conversion Condition Effective Date” means the date with effect from which the New Conversion Condition shall have been
satisfied.

 

“New
Conversion Price” means the amount determined by the Company in accordance with the following formula:

 

	NCP = ECP ×	VWAPRS 

    VWAPOS

 

where:

 

		NCP	is the New Conversion Price.

 

		ECP	is the Conversion Price in
                                         effect on the Dealing Day immediately prior to the New Conversion Condition Effective
                                         Date.

 

		VWAPRS	means the average of the
                                         Volume Weighted Average Price of the Relevant Shares (translated, if necessary, into
                                         U.S. dollars at the Prevailing Rate on the relevant Dealing Day) on each of the 10 Dealing
                                         Days ending on the Dealing Day prior to the date the Relevant Event shall have occurred
                                         (and where references in the definition of “Volume Weighted Average Price”
                                         to “Ordinary

 

    11 

     

    

Shares”
shall be construed as a reference to the Relevant Shares and in the definition of “Dealing Day”, references to the
“Relevant Stock Exchange” shall be to the primary Regulated Market on which the Relevant Shares are then listed, admitted
to trading or accepted for dealing).

 

		VWAPOS	is the average of the Volume
                                         Weighted Average Price of the Ordinary Shares (translated, if necessary, into U.S. dollars
                                         at the Prevailing Rate on the relevant Dealing Day) on each of the 10 Dealing Days ending
                                         on the Dealing Day prior to the date the Relevant Event shall have occurred.

 

“Newco
Scheme” means a scheme of arrangement or analogous proceeding (“Scheme of Arrangement”) which effects the
interposition of a limited liability company (“Newco”) between the Shareholders immediately prior to the Scheme of
Arrangement (the “Existing Shareholders”) and the Company; provided that (i) only ordinary shares or units or equivalent
of Newco or depositary or other receipts or certificates representing ordinary shares or units or equivalent of Newco are issued
to Existing Shareholders; (ii) immediately after completion of the Scheme of Arrangement the only holders of ordinary shares,
units or equivalent of Newco or, as the case may be, the only holders of depositary or other receipts or certificates representing
ordinary shares or units or equivalent of Newco, are Existing Shareholders holding in the same proportions as immediately prior
to completion of the Scheme of Arrangement (disregarding de minimis holdings by initial subscribers, if applicable); (iii)
immediately after completion of the Scheme of Arrangement, Newco is (or one or more wholly-owned Subsidiaries of Newco are) the
only shareholder of the Company; (iv) all Subsidiaries of the Company immediately prior to the Scheme of Arrangement (other than
Newco, if Newco is then a Subsidiary of the Company) are Subsidiaries of the Company (or of Newco) immediately after completion
of the Scheme of Arrangement; and (v) immediately after completion of the Scheme of Arrangement the Company (or Newco) holds,
directly or indirectly, the same percentage of the Ordinary Share Capital and Equity Share Capital of those Subsidiaries as was
held by the Company immediately prior to the Scheme of Arrangement.

 

“Non-payment
Event” has the meaning specified in ‎Section 4.02.

 

“Non-Qualifying
Relevant Event” means a Relevant Event that is not a Qualifying Relevant Event.

 

“Notice
Cut-off Date” means the date specified as such in the Settlement Request Notice.

 

“Notional
Preference Shares” has the meaning specified in ‎Section
5.01(c).

 

“Ordinary
Share Capital” has the meaning provided in Section 1119 of the U.K. Corporation Tax Act 2010.

 

    12 

     

    

“Other
Securities” means any securities including, without limitation, shares in the capital of the Company, or options, warrants
or other rights to subscribe for or purchase or acquire shares in the capital of the Company (and each an “Other Security”).

 

“outstanding”,
when used with respect to the Additional Tier 1 Securities means, as of the date of determination, all Securities theretofore
authenticated and delivered, except:

 

(i)       Securities
theretofore canceled by the Trustee or delivered to the Trustee for cancellation;

 

(ii)       Securities,
or portions thereof, for whose payment or redemption money, in the necessary amount, have been theretofore deposited with the
Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company
shall act as its own Paying Agent) for the Holders of the Additional Tier 1 Securities; provided, that, if the Additional
Tier 1 Securities are to be redeemed, notice of such redemption has been duly given pursuant to the Indenture or provision therefor
satisfactory to the Trustee has been made; and

 

(iii)       Securities
which have been paid pursuant to Section 11.06 of the Capital Securities Indenture or for which Settlement Shares have been delivered
to the Settlement Share Depository, in each case other than any such Securities in respect of which there shall have been presented
to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities
are valid obligations of the Company;

 

provided,
however, that in determining whether the Holders of the requisite principal amount of the outstanding Securities have given
any request, demand, authorization, direction, notice, consent or waiver hereunder, Securities beneficially owned by the Company
or any other obligor upon the Additional Tier 1 Securities or any Affiliate of the Company or of such other obligor shall be disregarded
and deemed not to be outstanding except that, in determining whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible Officer of the Trustee has received
an Officer’s Certificate stating that such Securities are so beneficially owned shall be so disregarded; provided, further,
however, that Securities so beneficially owned which have been pledged in good faith may be regarded as outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and
that the pledgee is not the Company or any other obligor upon the Additional Tier 1 Securities or any Affiliate of the Company
or of such other obligor.

 

“Parity
Securities” means (i) the most senior ranking class or classes of preference shares in the capital of the Company from
time to time and any other securities of the Company ranking, or expressed to rank, pari passu with the Additional Tier
1 Securities and/or such preference shares following a Winding-up or Administration Event occurring prior to a Trigger Event and/or
(ii) any securities issued

 

    13 

     

    

by any other member of the Group,
where the terms of the securities benefit from a guarantee or support agreement entered into by the Company which ranks or is
expressed to rank pari passu with the Additional Tier 1 Securities and/or such preference shares following a Winding-up
or Administration Event occurring prior to a Trigger Event.

 

“Performance
Obligation” has the meaning specified in ‎Section
4.03.

 

“Prevailing
Rate” means, in respect of any currencies on any day, the spot rate of exchange between the relevant currencies prevailing
as at or about 12 noon (London time) on that date as appearing on or derived from the Relevant Page or, if such a rate cannot
be determined at such time, the rate prevailing as at or about 12 noon (London time) on the immediately preceding day on which
such rate can be so determined or, if such rate cannot be so determined by reference to the Relevant Page, the rate determined
in such other manner as an Independent Adviser of international repute appointed by the Company shall in good faith prescribe.

 

“Prospectus”
means the prospectus on Form F-3 related to the offering and sale of the Additional Tier 1 Securities dated June 3, 2019, as supplemented.

 

“Prudential
Regulation Authority” or “PRA” means the Prudential Regulation Authority of the United Kingdom or
such other governmental authority in the United Kingdom (or if the Company becomes domiciled in a jurisdiction other than the
United Kingdom, such other jurisdiction) having primary responsibility for the prudential supervision of the Company.

 

“Qualifying
Relevant Event” means a Relevant Event where:

 

		(i)	the Acquirer is an Approved Entity;
                                         and

 

		(ii)	the New Conversion Condition
                                         is satisfied.

 

“Reference
Treasury Dealer” means each of up to five banks selected by the Company (following, where practicable, consultation
with the Calculation Agent), or the affiliates of such banks, which are (i) primary U.S. Treasury securities dealers, and their
respective successors, or (ii) market makers in pricing corporate bond issues denominated in U.S. dollars.

 

“Reference
Treasury Dealer Quotations” means with respect to each Reference Treasury Dealer and any Reset Date, the arithmetic
average, as determined by the Calculation Agent, of the bid and offered prices for the applicable Comparable Treasury Issue, expressed
in each case as a percentage of its principal amount, at 11:00 a.m. (New York City time), on the Reset Determination Date for
such Reset Date.

 

“Recognized
Stock Exchange” means a recognized stock exchange as defined in section 1005 of the U.K. Income Tax Act 2007 as the
same may be amended from time to time and any provision, statute or statutory instrument replacing the same from time to time.

 

    14 

     

    

“Record
Date” means, with respect to the payment of interest on the Additional Tier 1 Securities, the 5th calendar
day (whether or not a Business Day) preceding an Interest Payment Date.

 

“Regulated
Market” means an EEA Regulated Market or another regulated, regularly operating, recognized stock exchange or securities
market in an OECD member state (including, without limitation, the main market of the London Stock Exchange).

 

“Regulatory
Event” has the meaning specified in ‎Section 2.10.

 

“Relevant
Currency” means pounds sterling or, if at the relevant time or for the purposes of the relevant calculation or determination
there is a Relevant Stock Exchange but the London Stock Exchange is not the Relevant Stock Exchange (or is the Relevant Stock
Exchange but the Ordinary Shares or Relevant Shares are not quoted or dealt in thereon in pounds sterling), the currency in which
the Ordinary Shares or the Relevant Shares (as applicable) are quoted or dealt in on the Relevant Stock Exchange at such time.

 

A “Relevant
Event” shall occur if any person or persons acting in concert (as defined in the Takeover Code of the United Kingdom
Panel on Takeovers and Mergers) acquires control of the Company (other than as a result of a Newco Scheme).

 

“Relevant
Event Notice” has the meaning attributed to such term as set forth in ‎Section
3.02.

 

“Relevant
Page” means the relevant page on Bloomberg or such other information service provider that displays the relevant information.

 

“Relevant
Regulator” means the Prudential Regulation Authority or any successor or other authority having primary responsibility
for the prudential supervision of the Company and the Group.

 

“Relevant
Regulator Consent” means any necessary permission, following the giving of due notice, from the Relevant Regulator in
respect of redemption, payment, repayment, purchase, modification or substitution, as the case may be.

 

“Relevant
Shares” means Ordinary Share Capital of the Approved Entity that constitutes Equity Share Capital or the equivalent
(or depositary or other receipts representing the same) which (a) is listed and admitted to trading on a Regulated Market and
(b) is not share capital which, if the Additional Tier 1 Securities were to convert into such share capital in accordance with
the conditions of the Additional Tier 1 Securities, would cause a Relevant Tax Effect in circumstances where, if the Additional
Tier 1 Securities were instead to convert into Ordinary Shares, such conversion into Ordinary Shares would not cause a Relevant
Tax Effect.

 

“Relevant
Stock Exchange” means the London Stock Exchange or, if at the relevant time the Ordinary Shares are not at that time
listed and admitted to trading on the London Stock Exchange, the principal stock exchange or securities market on which the

 

    15 

     

    

Ordinary Shares are then listed,
admitted to trading or quoted or accepted for dealing (if any).

 

“Relevant
Tax Effect” means a circumstance, as at the Issue Date or at any time thereafter, that the Additional Tier 1 Securities
fall outside the definition of “hybrid capital instrument” in Section 475C of the Corporation Tax Act 2009.

 

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

 

“Reset
Determination Date” means the second Business Day immediately preceding the Reset Date.

 

“Reset
Date” means the First Call Date and every fifth anniversary thereafter.

 

“Risk
Weighted Assets” means, at any date, the aggregate amount, expressed in pounds sterling, of the risk weighted assets
of the Group as at such date, as calculated by the Company on a consolidated and fully loaded basis in accordance with the Applicable
Regulations applicable to the Group on such date (which calculation shall be binding on the Trustee and the Holders and Beneficial
Owners) and where the term “risk weighted assets” means the risk weighted assets or total risk exposure amount, as
calculated by the Company in accordance with the Applicable Regulations applicable to the Group as at such date.

 

“Senior
Creditors” means creditors of the Company (i) who are unsubordinated creditors, (ii) whose claims are, or are expressed
to be, subordinated to the claims of unsubordinated creditors of the Company but not further or otherwise, or (iii) whose claims
are, or are expressed to be, junior to the claims of other creditors of the Company (whether subordinated or unsubordinated, other
than those whose claims rank, or are expressed to rank, pari passu with, or junior to, the claims of Holders or Beneficial
Owners) in a Winding-up or Administration Event occurring prior to a Trigger Event.

 

“Settlement
Date” means:

 

(i)       with
respect to any Additional Tier 1 Security in relation to which a Settlement Notice is received by the Settlement Share Depository
on or before the Notice Cut-off Date where the Company has not elected that the Settlement Share Depository will carry out a Settlement
Shares Offer in accordance with ‎Section 2.17, the date that
is two (2) Business Days after the latest of (i) the Conversion Date, (ii) the date on which the Company announces that it will
not elect for the Settlement Share Depository to carry out a Settlement Shares Offer (or, if no such announcement is made, the
last date on which the Company is entitled to give a Settlement Shares Offer Notice), and (iii) the date on which the relevant
Settlement Notice has been received by the Settlement Share Depository;

 

(ii)       with
respect to any Additional Tier 1 Security in relation to which a Settlement Notice is received by the Settlement Share Depository
on or before the Notice Cut-off Date where the Company has elected that the Settlement Share Depository will

 

    16 

     

    

carry out a Settlement Shares
Offer in accordance with ‎Section 2.17, the date that is the
later of ‎(a) two (2) Business Days after the day on
which the Settlement Shares Offer Period expires or is terminated and ‎(b)
two (2) Business Days after the date on which such Settlement Notice has been so received by the Settlement Share Depository;
and

 

(iii)       with
respect to any Additional Tier 1 Security in relation to which a Settlement Notice is not so received by the Settlement Share
Depository on or before the Notice Cut-off Date, the date on which the Settlement Share Depository delivers the relevant Settlement
Shares, ADSs or Alternative Consideration, as applicable, to Holders or Beneficial Owners.

 

“Settlement
Notice” means a written notice (substantially in the form attached hereto as Exhibit F) to be delivered by a Holder
or Beneficial Owner (or custodian, broker, nominee or other representative thereof) to the Settlement Share Depository, with a
copy to the Trustee, on or before the Notice Cut-off Date containing the following information: (i) the name of the Holder or
Beneficial Owner (or custodian, broker, nominee or other representative thereof), (ii) the Tradable Amount of the book-entry interests
in the Additional Tier 1 Securities held by such Holder or Beneficial Owner (or custodian, broker, nominee or other representative
thereof) on the date of such notice, (iii) the name to be entered in the Company’s share register, (iv) whether Settlement
Shares are to be delivered to the Holder or Beneficial Owner or ADSs are to be deposited with the ADS Depository on behalf of
the Holder or Beneficial Owner into the Company’s ADS facility, (v) the details of the CREST or other clearing system account,
the details of the registered account in the Company’s ADS facility or, if the Settlement Shares are not a participating
security in CREST or another clearing system, the address to which the Settlement Shares (or the Settlement Share Component, if
any, of any Alternative Consideration) and/or cash (if not expected to be delivered through DTC) should be delivered and (vi)
such other details as may be required by the Settlement Share Depository.

 

“Settlement
Request Notice” means the written notice (substantially in the form attached hereto as Exhibit E) to be delivered by
the Company to the Trustee directly and to DTC as the Holder of the Global Securities (or, if the Additional Tier 1 Securities
are in definitive form, by the Company to the Trustee directly and to the Holders at their registered addresses as shown on the
Capital Securities Register) on the Suspension Date requesting that Holders and Beneficial Owners complete a Settlement Notice
and specifying (i) the Notice Cut-off Date and (ii) the Final Cancellation Date.

 

“Settlement
Share Component” means that portion, if any, of the Alternative Consideration consisting of Settlement Shares.

 

“Settlement
Share Depository” means a reputable financial institution, depository entity, trust company or similar entity (which
in each such case is wholly independent of the Company) to be appointed by the Company on or prior to any date when a function
ascribed to the Settlement Share Depository in the Indenture is required to be performed, to perform such functions and which
will be required to undertake, for the benefit of the Holders and Beneficial Owners, to hold the Settlement Shares (and the

 

    17 

     

    

Alternative Consideration, if
any) on behalf of such Holders and Beneficial Owners in one or more segregated accounts, unless otherwise required to be transferred
out of such accounts for the purposes of the Settlement Shares Offer, and otherwise on terms consistent with the Indenture.

 

“Settlement
Shares” means the Ordinary Shares credited as fully paid to be issued and delivered to the Settlement Share Depository
by the Company on the Conversion Date.

 

“Settlement
Shares Offer” has the meaning attributed to such term in ‎Section
2.17.

 

“Settlement
Shares Offer Notice” means the written notice (substantially in the form attached hereto as Exhibit D) to be delivered
by the Company to the Trustee directly and to DTC as the Holder of the Global Securities (or, if the Additional Tier 1 Securities
are definitive Securities, by the Company to the Trustee directly and to the Holders at their addresses shown on the Capital Security
Register) if the Company has elected that a Settlement Shares Offer be made specifying (i) the Settlement Shares Offer Period,
and (ii) the Suspension Date, as specified in the Conversion Trigger Notice.

 

“Settlement
Shares Offer Period” means the period of time for which the Settlement Shares Offer shall be made, which shall end no
later than forty (40) Business Days after the delivery of the Settlement Shares Offer Notice.

 

“Shareholders”
means the holders of Ordinary Shares.

 

“Solvency
Condition” has the meaning set forth in ‎Section
5.01 hereof.

 

“Subsidiary”
has the meaning provided in Section 1159 of the U.K. Companies Act 2006.

 

“Suspension
Date” means the date specified in the Conversion Trigger Notice or Settlement Shares Offer Notice as the date on which
DTC shall suspend all clearance and settlement of transactions in the Additional Tier 1 Securities in accordance with its rules
and procedures.

 

“Tax
Event” has the meaning specified in ‎Section 2.09.

 

“Tax
Law Change” has the meaning specified in ‎Section
2.09.

 

“Tier
1 Capital” has the meaning given to it by the Relevant Regulator from time to time.

 

“Tier
2 Capital” has the meaning given to it by the Relevant Regulator from time to time.

 

“Tradable
Amount” has the meaning specified in ‎Section 2.01(n)
hereof.

 

    18 

     

    

“Trigger
Event” shall occur as at any date if the CET1 Ratio is less than 7.00% on such date, as determined by the Company, the
Relevant Regulator or any agent appointed for such purpose by the Relevant Regulator.

 

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

 

“U.S.
Treasury Rate” means, with respect to any Reset Date from which such rate applies, the rate per annum equal to: (1)
the yield, under the heading which represents the average for the week immediately prior to the Reset Determination Date for such
Reset Date, appearing in the most recently published statistical release designated “H.15”, or any successor publication
that is published by the Board of Governors of the Federal Reserve System that establishes yields on actively traded U.S. Treasury
securities adjusted to constant maturity, under the caption “Treasury Constant Maturities”, for the maturity of five
years; or (2) if such release (or any successor release) is not published during the week immediately prior to the Reset Determination
Date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such Reset Date.

 

“Volume
Weighted Average Price” means, in respect of an Ordinary Share or Other Security on any Dealing Day, the order book
volume-weighted average price of an Ordinary Share or Other Security published by or derived (in the case of an Ordinary Share)
from the relevant Bloomberg page or (in the case of Other Securities (other than Ordinary Shares), options, warrants or other
rights) from the principal stock exchange or securities market on which such Other Securities, options, warrants or other rights
are then listed or quoted or dealt in, if any or, in any such case, such other source as shall be determined in good faith to
be appropriate by an Independent Adviser on such Dealing Day, provided that if on any such Dealing Day such price is not available
or cannot otherwise be determined as provided above, the Volume Weighted Average Price of an Ordinary Share, Other Security, option,
warrant or other right, as the case may be, in respect of such Dealing Day shall be the Volume Weighted Average Price, determined
as provided above, on the immediately preceding Dealing Day on which the same can be so

 

    19 

     

    

determined or determined as an
Independent Adviser might otherwise determine in good faith to be appropriate.

 

“Winding-up
or Administration Event” means:

 

(i) an order
is made, or an effective resolution is passed, for the winding-up of the Company (except in each such case, a solvent winding-up
solely for the purposes of a reorganization, reconstruction or amalgamation of the Company or the substitution in place of the
Company of a successor in the business of the Company, the terms of which (i) have previously been approved in writing by Holders
of not less than 2/3 (two thirds) in aggregate principal amount of the Additional Tier 1 Securities and (ii) do not provide that
the Additional Tier 1 Securities shall thereby become redeemable or repayable in accordance with their terms); or

 

(ii) the
appointment of an administrator of the Company and such administrator declares, or gives notice that it intends to declare and
distribute a dividend.

 

Section 1.02.     
Separability Clause. In case any provision in this Third Supplemental Indenture or the Additional Tier 1 Securities
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

Section 1.03.     
Benefits of Instrument. Nothing in this Third Supplemental Indenture, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy
or claim under the Indenture.

 

Section 1.04.     
Relation to Capital Securities Indenture. This Third Supplemental Indenture constitutes an integral part of the
Capital Securities Indenture. Notwithstanding any other provision of this Third Supplemental Indenture, all provisions of this
Third Supplemental Indenture are expressly and solely for the benefit of the Holders and Beneficial Owners of the Additional Tier
1 Securities and any such provisions shall not be deemed to apply to any other Securities issued under the Capital Securities
Indenture and shall not be deemed to amend, modify or supplement the Capital Securities Indenture for any purpose other than with
respect to the Additional Tier 1 Securities; provided that pursuant to and in accordance with Section 3.08 of the Capital Securities
Indenture, the duties of the Trustee under the Indenture shall extend only to the Holders of the Additional Tier 1 Securities.

 

Article
2

The Additional Tier 1 Securities

 

Section 2.01.     
Form, Title, Terms and Payments. The form of any Security that is designated as an Additional Tier 1 Security shall
be evidenced by one or more global notes in registered form (each, a “Global Note”) deposited with, or on behalf
of, DTC on 

 

    20 

     

    

the Issue Date. The Global Notes
shall be registered in the name of Cede & Co. and executed and delivered in substantially the form attached hereto as Exhibit
A. The terms of the Global Notes are hereby incorporated herein by reference and made a part hereof as if set forth herein in
full.

 

(a)           
There is hereby established a new series of Securities designated as the $500,000,000 Fixed Rate Reset Additional Tier
1 Perpetual Subordinated Contingent Convertible Securities (the “Additional Tier 1 Securities”).

 

(b)           
The Additional Tier 1 Securities shall be issued in denominations of $200,000 principal amount and integral multiples of
$1,000 in excess thereof.

 

(c)           
The Additional Tier 1 Securities shall be initially limited in aggregate principal amount to $500,000,000, which amount
shall be as set forth in a Company Order for the authentication and delivery of Securities pursuant to ‎Section 3.03
of the Capital Securities Indenture. The Company may from time to time, without the consent of the Holders of the Additional Tier
1 Securities, issue additional Additional Tier 1 Securities having the same ranking and same interest rate, interest cancellation
terms, redemption terms, Conversion Price and other terms as the Additional Tier 1 Securities described in this Third Supplemental
Indenture, except for the price to public and Issue Date. Any such additional Additional Tier 1 Securities subsequently issued
shall rank equally and ratably with the Additional Tier 1 Securities in all respects, so that such further Additional Tier 1 Securities
shall be consolidated and form a single series with the Additional Tier 1 Securities.

 

(d)           
The Additional Tier 1 Securities shall be perpetual Securities and shall have no Stated Maturity in respect of principal.

 

(e)           
The Additional Tier 1 Securities shall not have a sinking fund.

 

(f)            
Any proposed transfer of an interest in Additional Tier 1 Securities held in the form of a Global Note shall be effected
through the book-entry system maintained by DTC.

 

(g)           
The interest rate on the Additional Tier 1 Securities is set forth in ‎Section 2.02 hereof.

 

(h)           
All references to Foreign Government Securities and U.S. Government Obligations in the Capital Securities Indenture shall
be deleted in their entirety and be inapplicable to the Additional Tier 1 Securities, including but not limited to the definition
of outstanding in the Capital Securities Indenture and any references to such terms in Sections 4.01, 4.02 and 4.03 of the Capital
Securities Indenture.

 

(i)            
Payments in respect of the Additional Tier 1 Securities, including payments of principal and interest, shall be subject
to the conditions set forth under ‎Section 2.03, ‎Section 2.04 and ‎Section 2.14 hereof.

 

    21 

     

    

(j)            
The Additional Tier 1 Securities shall be subject to Automatic Conversion following the occurrence of a Trigger Event as
provided in ‎Section 2.16 hereof and shall be subject to the Enforcement Events as provided in ‎Article
4 hereof.

 

(k)           
The Company may redeem, vary or substitute the Additional Tier 1 Securities in accordance with ‎Section 2.11
hereof.

 

(l)            
Additional Amounts in respect of the Additional Tier 1 Securities shall be payable as set forth in Section 10.04 of the
Capital Securities Indenture, as supplemented by this Third Supplemental Indenture.

 

(m)            
The Company shall undertake reasonable efforts to list the Additional Tier 1 Securities on the Global Exchange Market of
Euronext Dublin (“Euronext Dublin”) within two months following the Issue Date. The Company shall endeavor
to maintain such listing as long as the Additional Tier 1 Securities remain outstanding.

 

(n)           
The denomination of each interest in a Global Note shall be the “Tradable Amount” of such book-entry interest.
Prior to the Automatic Conversion, the aggregate Tradable Amount of the interests in each Global Note shall equal such Global
Note’s outstanding principal amount. Following the Automatic Conversion, the principal amount of each Additional Tier 1
Security shall equal zero, but the Tradable Amount of the book-entry interests in each Additional Tier 1 Security shall remain
unchanged as a result of the Automatic Conversion.

 

Section 2.02.     
Interest.

 

(a)           
From (and including) the Issue Date to (but excluding) the First Call Date, the interest rate on the Additional Tier 1
Securities shall be 6.750% per annum. From (and including) each Reset Date to (but excluding) the next succeeding Reset Date,
the interest will accrue on the Additional Tier 1 Securities at a rate per annum calculated by the Calculation Agent on the relevant
Reset Determination Date as being equal to the sum of the applicable U.S. Treasury Rate and 4.815%, such sum being converted to
a quarterly rate in accordance with market convention (rounded to three decimal places, with 0.0005 rounded down). Subject to
Sections ‎2.03 and ‎2.04 and the last sentence of this paragraph below, interest, if any, shall be payable
in quarterly installments in arrears on each Interest Payment Date, provided that if such Interest Payment Date is not
a Business Day, the Interest Payment Date shall be postponed to the next Business Day, and no further interest or other payment
shall be owed or made in respect of such delay. If any scheduled redemption date is not a Business Day, payment of interest, if
any, and principal shall be postponed to the next Business Day, but interest on that payment will not accrue during the period
from and after any scheduled redemption date. If any Reset Date is not a Business Day, the Reset Date shall occur on the next
succeeding Business Day. Subject to Sections ‎2.03 and ‎2.04 below, interest on the Additional Tier 1 Securities,
if any, shall be computed by the Calculation Agent and payable in arrears and on the basis of a year of 360 days consisting of
twelve (12) months of thirty (30) days each and, in the case of an incomplete month, the actual number of days elapsed, from (and
including) the first day in such period to (but excluding) the last day in such period.

 

    22 

     

    

(b)           
If the U.S. Treasury Rate cannot be determined, for whatever reason, “U.S. Treasury Rate” shall mean the rate
in percentage per annum as notified by the Calculation Agent to the Company equal to the yield on U.S. Treasury securities having
a maturity of five years as set forth in the most recently published statistical release designated “H.15” under the
caption “Treasury Constant Maturities” (or any successor publication that is published weekly by the Board of Governors
of the Federal Reserve System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities” for the maturity of five years) at 5:00 p.m. (New York City time)
on the last available date preceding the Reset Determination Date on which such rate was set forth in such release (or any successor
release).

 

(c)           
In addition to any other restrictions on payments of principal and interest contained in this Third Supplemental Indenture,
no repayment of the principal amount of the Additional Tier 1 Securities or payment of interest on the Additional Tier 1 Securities
shall become due and payable after the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority unless, at
the time that such repayment or payment, respectively, is scheduled to become due, such repayment or payment would be permitted
to be made by the Company under the laws and regulations of the United Kingdom and the European Union applicable to the Company
or other members of the Group.

 

Section 2.03.     
Interest Payments Discretionary.

 

(a)           
Interest on the Additional Tier 1 Securities shall be due and payable only at the sole discretion of the Company, and the
Company shall have sole and absolute discretion at all times and for any reason to cancel (in whole or in part) any interest payment
that would otherwise be payable on any Interest Payment Date. If the Company elects not to make an interest payment in respect
of the Additional Tier 1 Securities on the relevant Interest Payment Date (or if the Company elects to make a payment of a portion,
but not all, of such interest payment), such non-payment shall evidence the Company’s exercise of its discretion to cancel
such interest payment (or the portion of such interest payment not paid), and accordingly such interest payment (or the portion
thereof not paid) shall not be or become due and payable. For the avoidance of doubt, if the Company provides notice to cancel
a portion, but not all, of an interest payment in respect of the Additional Tier 1 Securities, and the Company subsequently does
not make a payment of the remaining portion of such interest payment on the relevant Interest Payment Date, such non-payment shall
evidence the Company’s exercise of its discretion to cancel such remaining portion of such interest payment, and accordingly
such remaining portion of the interest payment shall also not be due and payable.

 

(b)           
Interest shall only be due and payable on an Interest Payment Date to the extent it is not canceled or deemed canceled
(in each case, in whole or in part) in accordance with the provisions set forth in Section 2.02(b), ‎Section 2.03(a),
‎Section 2.04, ‎Section 2.15(h) and ‎Section 5.01 hereof, respectively, and any interest canceled
or deemed canceled (in each case, in whole or in part) pursuant to such sections shall not be due and shall not accumulate or
be payable at any time thereafter, and Holders and Beneficial Owners of the Additional Tier 1 Securities shall have no 

 

    23 

     

    

rights thereto
or to receive any additional interest or compensation as a result of such cancellation or deemed cancellation.

 

(c)           
The Additional Tier 1 Securities shall cease to bear interest from, and including, the date of any redemption of the Additional
Tier 1 Securities as described under ‎Section 2.08, ‎Section 2.09 and ‎Section 2.10 unless payment
and performance of all amounts and obligations due by the Company in respect of the Additional Tier 1 Securities is not properly
and duly made, in which event interest shall continue to accrue on the Additional Tier 1 Securities until payment and performance
of all amounts and obligations has been properly and duly made (subject to the Company’s discretion to cancel all interest
payments).

 

Section 2.04.     
Restriction on Interest Payments.

 

(a)           
Without limitation on the provisions of ‎Section 2.03 and subject to the extent permitted in paragraph (b) below
in respect of partial interest payments in respect of the Additional Tier 1 Securities, the Company shall not make an interest
payment in respect of the Additional Tier 1 Securities on any Interest Payment Date (and such interest payment shall therefore
be deemed to have been canceled and thus shall not be due and payable on such Interest Payment Date) to the extent an amount of
Distributable Items on any scheduled Interest Payment Date is less than the sum of (i) all payments (other than redemption
payments) made or declared by the Company since the end of its last financial year and prior to such Interest Payment Date on
or in respect of any Parity Securities, the Additional Tier 1 Securities and any Junior Securities and (ii) all payments (other
than redemption payments) payable by the Company on such Interest Payment Date (x) on the Additional Tier 1 Securities and (y)
on or in respect of any Parity Securities or any Junior Securities, in the case of each of (i) and (ii), excluding any payments
already accounted for (by way of deduction) in determining the Distributable Items.

 

(b)           
For purposes of this Third Supplemental Indenture, any interest canceled pursuant to ‎Section 2.04(a) shall
be “deemed canceled” under the terms of the Additional Tier 1 Securities and the Indenture and shall not be due and
payable.

 

Section 2.05.     
Agreement to Interest Cancellation.

 

(a)           
By its acquisition of the Additional Tier 1 Securities, each Holder and each Beneficial Owner shall be deemed to have contracted
and agreed that:

 

(i)           
interest is payable solely at the discretion of the Company, and no amount of interest shall become due and payable in
respect of the relevant interest period to the extent that it has been (x) canceled (in whole or in part) by the Company at the
Company’s sole discretion and/or (y) deemed canceled (in whole or in part) pursuant to ‎Section 2.04(a);
and

 

(ii)           
a cancellation or deemed cancellation of interest (in each case, in whole or in part) in accordance with the terms of the
Indenture shall not constitute 

 

    24 

     

    

a default in payment
or otherwise under the terms of the Additional Tier 1 Securities or the Indenture.

 

(b)           
Interest on the Additional Tier 1 Securities shall only be due and payable on an Interest Payment Date to the extent it
is not canceled or deemed canceled under ‎Section 2.03, ‎Section 2.04, ‎Section 2.15(h) or ‎Section
5.01 hereof. Any interest canceled or deemed canceled (in each case, in whole or in part) in the circumstances described in ‎Section
2.03, ‎Section 2.04, ‎Section 2.15(h) or ‎Section 5.01 above shall not be due and shall not accumulate
or be payable at any time thereafter, and Holders and Beneficial Owners of the Additional Tier 1 Securities shall have no rights
thereto or to receive any additional interest or compensation as a result of such cancellation or deemed cancellation of interest
in respect of the Additional Tier 1 Securities.

 

Section 2.06.     
Notice of Interest Cancellation. Notwithstanding anything to the contrary in the Indenture (including Section 1.06
of the Capital Securities Indenture), if practicable, the Company shall provide notice of any cancellation or deemed cancellation
of interest (in each case, in whole or in part) to the Holders of the Additional Tier 1 Securities through DTC (or, if the Additional
Tier 1 Securities are in definitive form, to the Holders directly at their addresses shown in the Capital Securities Register)
and to the Trustee directly on or prior to the relevant Interest Payment Date. Failure to provide such notice shall have no impact
on the effectiveness of, or otherwise invalidate, any such cancellation or deemed cancellation of interest, or give the Holders
and Beneficial Owners of the Additional Tier 1 Securities any rights as a result of such failure.

 

Section 2.07.     
Payment of Principal, Interest and Other Amounts.

 

(a)           
Payments of principal of and interest, if any, on the Additional Tier 1 Securities shall be made in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and private debts and such payments
on Securities represented by a Global Note shall be made through one or more Paying Agents appointed under the Capital Securities
Indenture to DTC or its nominee, as the Holder of the Global Note. Initially, the Paying Agent and the Security Registrar for
the Additional Tier 1 Securities shall be The Bank of New York Mellon, London Branch, One Canada Square, London E14 5AL, United
Kingdom. The Company may change the Paying Agent without prior notice to the Holders of the Additional Tier 1 Securities, and
in such an event the Company may act as Paying Agent or Capital Securities Registrar.

 

(b)           
Payments of principal, interest and other amounts in respect of on the Additional Tier 1 Securities represented by a Global
Note shall be made by wire transfer of immediately available funds on the date such payment is scheduled to be paid. The Company
shall, on each date on which any payment in respect of the AT1 Securities becomes due, transfer to the Paying Agent such amount
as may be required for the purposes of such payment.

 

(c)           
Where any interest payment (or relevant portion thereof) is canceled in accordance with the provisions of this Third Supplemental
Indenture and the Additional 

 

    25 

     

    

Tier 1 Securities and the Paying
Agent has paid any interest payment (or relevant portion thereof) scheduled to be paid in accordance with the provisions of this
Third Supplemental Indenture and the Additional Tier 1 Securities prior to its receipt of notice of such cancellation of interest
in accordance with ‎Section 2.06 and subject to the Paying
Agent having first used all reasonable efforts to recover such payment from DTC or its nominee, as the Holder of the Global Note,
prior to onward payment of such amounts to the Holders or Beneficial Owners, the Company shall on demand reimburse the Paying
Agent in accordance with ‎Section 2.07(d) below.

 

(d)           
If the Paying Agent pays any amount due in respect of the Additional Tier 1 Securities in accordance with the provisions
of this Third Supplemental Indenture and the Additional Tier 1 Securities before receipt of the amount due under ‎Section
2.07(b), the Company shall on demand reimburse the Paying Agent for the relevant amount and pay interest to the Paying Agent on
such amount that is outstanding from the date on which it is paid out to the date of reimbursement at the rate per annum equal
to the cost to the Paying Agent of funding the amount paid out, as certified by the Paying Agent. Such interest shall be compounded
daily.

 

Section 2.08.     
 Optional Redemption. Subject to the limitations specified in ‎Section 2.12 and ‎Section 2.14
of this Third Supplemental Indenture, the Company may, at the Company’s option, redeem the Additional Tier 1 Securities,
in whole but not in part, on the First Call Date or on any Reset Date thereafter at a redemption price equal to 100% of the principal
amount, together with any accrued and unpaid interest on the Additional Tier 1 Securities, excluding any interest which has been
canceled or deemed to be canceled as described under Section 2.05 above then outstanding, together with any Accrued Interest to
(but excluding) the date fixed for redemption.

 

Section 2.09.     
Optional Tax Redemption.

 

(a)           
Subject to ‎Section 2.12 and ‎Section 2.14 of this Third Supplemental Indenture, the Company may,
at the Company’s option, redeem the Additional Tier 1 Securities, in whole but not in part, at a redemption price equal
to 100% of the principal amount of the Additional Tier 1 Securities then outstanding, together with any Accrued Interest to (but
excluding) the date fixed for redemption, if at any time:

 

(i)           
the Company determines that as a result of a change in, or amendment to, the laws or regulations of the United Kingdom,
or any political subdivision or authority therein or thereof, having the power to tax, including any treaty to which the United
Kingdom is a party, or any change in any generally published application or interpretation of such laws, including a decision
of any court or tribunal, or any change in the generally published application or interpretation of such laws by any relevant
tax authority or any generally published pronouncement by any tax authority, which change, amendment or pronouncement (x) (subject
to (y)) becomes effective on or after the Issue Date, or (y) in the case of a change in law, if such change is enacted by United
Kingdom Act of Parliament or implemented by statutory instrument, on or after the Issue Date (a “Tax Law Change”),
the Company has paid or will or would on the next 

 

    26 

     

    

payment date be required
to pay Additional Amounts to any Holder of the Additional Tier 1 Securities; and/or

 

(ii)           
a Tax Law Change would:

 

(A)           
result in the Company not being entitled to claim a deduction in respect of any payments (or its corresponding funding
costs are recognized in its financial statements) in respect of the Additional Tier 1 Securities in computing the Company’s
taxation liabilities or the amount or value of such deduction to the Company would be materially reduced;

 

(B)           
prevent the Additional Tier 1 Securities from being treated as loan relationships for United Kingdom tax purposes;

 

(C)           
as a result of the Additional Tier 1 Securities being in issue, result in the Company not being able to have losses or
deductions set against the profits or gains, or profits or gains offset by the losses or deductions, of companies with which it
is or would otherwise be so grouped for applicable United Kingdom tax purposes (whether under the group relief system current
as at the date of issue of the Additional Tier 1 Securities or any similar system or systems having like effect as may from time
to time exist);

 

(D)           
result in a United Kingdom tax liability, or the receipt of income or profit which would be subject to United Kingdom tax,
in respect of a write-down of the principal amount of the Additional Tier 1 Securities or the conversion of the Additional Tier
1 Securities into Settlement Shares (including, pursuant to the terms and conditions of the Additional Tier 1 Securities or as
a result of the exercise of any regulatory powers under the Banking Act 2009); or

 

(E)           
result in an Additional Tier 1 Security or any part thereof being treated as a derivative or an embedded derivative for
United Kingdom tax purposes,

 

(each such
change (or deemed change) in tax law or regulation or the official application or interpretation thereof, a “Tax Event”);
provided, however, in each case that the Company could not avoid the consequences of the Tax Event by taking measures
reasonably available to it.

 

(b)           
Prior to the giving of any such notice of redemption the Company shall deliver to the Trustee an Officer’s Certificate
stating that a Tax Event has occurred and setting out the details thereof. The Trustee shall be entitled to accept such Officer’s
Certificate without any further inquiry, in which event such Officer’s Certificate shall be conclusive and binding on the
Trustee, the Holders and the Beneficial Owners.

 

Section 2.10.     
Regulatory Event Redemption.

 

    27 

     

    

(a)           
Subject to ‎Section 2.12 and ‎Section 2.14 of this Third Supplemental Indenture, the Company may,
at the Company’s option, at any time redeem the Additional Tier 1 Securities, in whole but not in part, at a redemption
price equal to 100% of the principal amount of the Additional Tier 1 Securities then outstanding, together with any Accrued Interest
to (but excluding) the date fixed for redemption, if, at any time, the Company determines that as a result of a change (which
has occurred or which the Relevant Regulator considers to be sufficiently certain) to the regulatory classification of the Additional
Tier 1 Securities under the Applicable Regulations, in any such case becoming effective on or after the Issue Date, some or all
of the outstanding aggregate principal amount of the Additional Tier 1 Securities ceases to be included in, or count towards,
the Tier 1 Capital (howsoever defined in the Applicable Regulations) of the Group (a “Regulatory Event”).

 

(b)           
Prior to the giving of any such notice of redemption the Company shall deliver to the Trustee an Officer’s Certificate
stating that a Regulatory Event has occurred and setting out the details thereof. The Trustee is entitled to accept such Officer’s
Certificate without any further inquiry, in which event such Officer’s Certificate shall be conclusive and binding on the
Trustee, the Holders and the Beneficial Owners.

 

Section 2.11.     
Substitution or Variation. Upon the occurrence of a Tax Event or a Regulatory Event, the Company may, subject to
‎Section 2.12 and ‎Section 2.14, but without any requirement for the consent or approval of the Holders
of the Additional Tier 1 Securities, at any time (whether before, on or following the First Call Date) either substitute all (but
not some only) of the Additional Tier 1 Securities for, or vary the terms of the Additional Tier 1 Securities so that they remain
or, as appropriate, become, Compliant Securities, and the Trustee shall (subject to ‎Section 2.12 and ‎Section
2.14) agree to such substitution or variation. Upon the expiry of such notice, the Company shall either vary the terms of or substitute
the Additional Tier 1 Securities, as the case may be.

 

Prior to
the giving of any notice of substitution or variation, the Company must deliver to the Trustee an officer’s certificate
stating that a Regulatory Event or Tax Event, as the case may be, has occurred, setting out the details thereof, and stating that
the terms of the relevant Compliant Securities comply with the definition thereof. The Trustee shall be entitled to accept such
officer’s certificate without any further inquiry, in which event such officer’s certificate shall be conclusive and
binding on the Trustee and the Holders and Beneficial Owners of the Additional Tier 1 Securities.

 

Section 2.12.     
Notice of Redemption, Substitution or Variation

 

(a)           
Before the Company may redeem, substitute or vary the Additional Tier 1 Securities pursuant to Sections ‎2.08,
‎2.09, ‎2.10 or ‎2.11, the Company shall deliver to DTC as the Holder of the Global Securities
(or, if the Additional Tier 1 Securities are in definitive form, to the Holders at their addresses shown on the Capital Securities
Register) prior notice of not less than thirty (30) days, nor more than sixty (60) days to the Holders of the Additional Tier
1 Securities. The Company shall deliver written notice of such redemption, substitution or variation of the Additional Tier 1
Securities to the Trustee at least five (5) Business Days prior to the date on which the relevant notice of 

 

    28 

     

    

redemption, substitution or variation
is sent to Holders (unless a shorter notice period shall be satisfactory to the Trustee). Such notice shall specify the Company’s
election to redeem, substitute or vary the Additional Tier 1 Securities, as the case may be, and the date fixed for such redemption,
substitution or variation, as the case may be, and shall be irrevocable except in the limited circumstances described in paragraphs
‎(b), ‎(c),
‎(d), (e) or ‎(f)
below.

 

(b)           
If the Company has delivered a notice of redemption pursuant to clause ‎(a) of this ‎Section 2.12,
but the Solvency Condition is not satisfied immediately prior to, and immediately following, the date specified for redemption
in such notice, such redemption notice shall be automatically rescinded and shall be of no force and effect, and no payment in
respect of the redemption amount shall be due and payable.

 

(c)           
If the Company has delivered a notice of redemption pursuant to clause ‎(a) of this ‎Section 2.12,
but prior to the payment of the redemption amount with respect to such redemption a Conversion Trigger Notice has been delivered
pursuant to ‎Section 2.15(b), such notice of redemption shall be automatically rescinded and shall be of no force and
effect, no payment in respect of the redemption amount shall be due and payable.

 

(d)           
If the Company has delivered a notice of redemption pursuant to clause ‎(a) of this ‎Section 2.12,
but prior to the date of any such redemption the Company has not given notice to the Relevant Regulator and/or the Relevant Regulator
has not granted permission to the Company to redeem the relevant Additional Tier 1 Securities (in each case to the extent, and
in the manner, required by the relevant Applicable Regulations), such notice of redemption shall be automatically rescinded and
shall be of no force and effect and no payment in respect of any redemption amount, if applicable, shall be due and payable.

 

(e)           
If the Company has delivered a notice of redemption pursuant to clause ‎(a) of this ‎Section 2.12,
but in respect of any redemption proposed to be made prior to the fifth anniversary of the
Issue Date, if and to the extent then required under the Applicable Regulations (A) in the case of redemption following the occurrence
of a Tax Event, the Company has not demonstrated to the satisfaction of the Relevant Regulator that the relevant change or event
is material and was not reasonably foreseeable by the Company as at the Issue Date, or (B) in the case of redemption following
the occurrence of a Regulatory Event, the Company has not demonstrated to the satisfaction of the Relevant Regulator that the
relevant change was not reasonably foreseeable by the Company as at the Issue Date; such notice of redemption shall be
automatically rescinded and shall be of no force and effect and no payment in respect of any redemption amount, if applicable,
shall be due and payable.

 

(f)            
If the Company has delivered a notice of redemption pursuant to clause ‎(a) of this ‎Section 2.12,
but prior to the payment of the redemption amount with respect to such redemption the Company is not in compliance with any alternative
or additional pre-conditions set out in the relevant Applicable Regulations for the time being, such notice 

 

    29 

     

    

of redemption shall be automatically
rescinded and shall be of no force and effect, no payment in respect of the redemption amount shall be due and payable.

 

If any of
the events specified in paragraphs ‎(b), ‎(c), ‎(d), ‎(d) or ‎(f) above
occurs, the Company shall promptly deliver notice to DTC, as the Holder of the Global Securities (or, if the Additional Tier 1
Securities are definitive Securities, to the Holders at their addresses shown on the Capital Securities Register) and to the Trustee
directly, specifying the occurrence of the relevant event.

 

Any
notice of redemption shall state:

 

(i)           
the redemption date;

 

(ii)           
that on the redemption date the redemption price will, subject to the satisfaction of the conditions set forth in the Indenture,
become due and payable upon each Additional Tier 1 Security being redeemed and that, subject to certain exceptions, interest will
cease to accrue on or after that date;

 

(iii)           
the place or places where the Additional Tier 1 Securities are to be surrendered for payment of the redemption price; and

 

(iv)           
the CUSIP, Common Code and/or ISIN number or numbers, if any, with respect to the Additional Tier 1 Securities being redeemed.

 

In addition,
if the Company has elected to redeem, substitute or vary the Additional Tier 1 Securities and:

 

(i)           
(in the case of redemption only) the Solvency Condition is not (or, if payment were made, would not be) satisfied in respect
of the relevant payment on the date scheduled for redemption; or

 

(ii)           
(in any case) prior to the redemption, substitution or variation a Trigger Event occurs,

 

the relevant
notice of redemption, substitution or variation (as the case may be) shall be automatically rescinded and shall be of no force
and effect, no such redemption, substitution or variation shall occur and the Company shall give notice thereof to the Holders
and to the Trustee as soon as reasonably practicable (but failure to give such notice shall not constitute a default for any purpose
nor shall it affect the rescission of the original notice of redemption, substitution or variation (as the case may be)). Further,
no notice of redemption, substitution or variation shall be given following a determination that a Trigger Event has occurred.

 

Section 2.13.     
Canceled Interest Not Payable Upon Redemption. Any interest payments that have been canceled or deemed canceled
pursuant to Sections ‎2.03 or ‎2.04 hereof shall not be payable if the Additional Tier 1 Securities are
redeemed pursuant to Sections ‎2.08, ‎2.09 or ‎2.10 hereof.

 

    30 

     

    

Section 2.14.     
Condition to Redemption, Purchase, Substitution or Variation. Any redemption, purchase, substitution or variation,
other than a purchase in the ordinary course of business dealing in securities, of the Additional Tier 1 Securities by or on behalf
of the Company or its subsidiaries, is subject to

 

(i)           
the Company giving notice to the Relevant Regulator, and the Relevant Regulator granting permission to, the Company to
redeem, purchase, substitute or vary the terms of the relevant Additional Tier 1 Securities, as the case may be (in each case
to the extent, and in the manner, required by the relevant Applicable Regulations); 

 

(ii)           
in the case of any redemption or purchase, if and to the extent then required under the then-prevailing Applicable Regulations,
either: (A) the Company having replaced the Additional Tier 1 Securities with own funds instruments of equal or higher quality
at terms that are sustainable for the income capacity of the Company; or (B) the Company having demonstrated to the satisfaction
of the Relevant Regulator that the own funds and eligible liabilities of the Company would, following such redemption or purchase,
exceed its minimum capital requirements (including any capital buffer requirements) by a margin that the Relevant Regulator considers
necessary at such time; 

 

(iii)           
in respect of any redemption proposed to be made prior to the fifth anniversary of the Issue Date, if and to the extent
then required under the Applicable Regulations (A) in the case of redemption following the occurrence of a Tax Event, the Company
having demonstrated to the satisfaction of the Relevant Regulator that the relevant change or event is material and was not reasonably
foreseeable by the Company as at the Issue Date or (B) in the case of redemption following the occurrence of a Regulatory Event,
the Company having demonstrated to the satisfaction of the Relevant Regulator that the relevant change was not reasonably foreseeable
by the Company as at the Issue Date; 

 

(iv)           
in the case of any redemption or purchase, the satisfaction of the Solvency Condition both immediately prior to and immediately
following the redemption or purchase date; 

 

(v)           
a Trigger Event not having occurred; and 

 

(vi)           
in the case of any substitution or variation, such substitution or variation being effected in compliance with applicable
regulatory and legal requirements, including the U.S. Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”).

 

Subject to
applicable law in force at the relevant time, including the Applicable Regulations and U.S. federal securities law, the Company
or any of its subsidiaries may, directly or indirectly, purchase the Additional Tier 1 Securities at any price in the open market,
by tender or by private agreement. Any Additional Tier 1 Securities purchased beneficially by the Company for the account of the
Company and any of its subsidiaries

 

    31 

     

    

(other than in connection with
dealing in securities) will be treated as canceled and will no longer be issued and outstanding.

 

Any refusal
by the Relevant Regulator to give its permission as contemplated above shall not constitute a default for any purpose.

 

Notwithstanding
the above conditions, if, at the time of any redemption, purchase, substitution or variation, the then-prevailing Applicable Regulations
permit the redemption, purchase, substitution or variation only after compliance with one or more alternative or additional pre-conditions
to those set out above, the Company shall instead comply with such other and/or, as appropriate, additional pre-condition(s).

 

Section 2.15.     
Automatic Conversion upon Trigger Event.

 

(a)           
If a Trigger Event has occurred, then the Automatic Conversion shall occur on the Conversion Date and all of the Company’s
obligations under the Additional Tier 1 Securities shall be irrevocably and automatically released on the Conversion Date in consideration
of the Company’s issuance and delivery of the Settlement Shares to the Settlement Share Depository, and the principal amount
of the Additional Tier 1 Securities shall equal zero at all times thereafter (for the avoidance of doubt, the Tradable Amount
shall remain unchanged as a result of the Automatic Conversion). Under no circumstances shall such released obligations be reinstated.
If the Company has been unable to appoint a Settlement Share Depository, it shall effect, by means it deems reasonable in the
circumstances (including, without limitation, issuance of the Settlement Shares to another independent nominee or to the Holders
of the Additional Tier 1 Securities directly), the issuance and delivery of the Settlement Shares or of the Alternative Consideration,
as applicable, to the Holders of the Additional Tier 1 Securities, and such issuance and delivery shall be in consideration for
the irrevocable and automatic release of all of the Company’s obligations under the Additional Tier 1 Securities as if the
Settlement Shares had been issued and delivered to the Settlement Share Depository and, in which case, where the context so admits,
references in this Third Supplemental Indenture and the Additional Tier 1 Securities to the issue and delivery of Settlement Shares
to the Settlement Share Depository shall be construed accordingly and apply mutatis mutandis.

 

(b)           
The determination as to whether a Trigger Event has occurred shall be made by the Company, the Relevant Regulator or any
agent appointed for such purpose by the Relevant Regulator. Any such determination shall be binding on the Company, the Trustee
and the Holders and the Beneficial Owners of the Additional Tier 1 Securities. Upon its determination that a Trigger Event has
occurred, the Company shall ‎(a) immediately inform the Relevant Regulator of the occurrence of a Trigger Event, ‎(b)
prior to giving the Conversion Trigger Notice, deliver to the Trustee an Officer’s Certificate substantially in the form
attached hereto as Exhibit C, specifying that a Trigger Event has occurred, which the Trustee shall accept without any further
enquiry as sufficient evidence of such matters, in which event such certificate will be conclusive and binding on the Trustee
and the Holders and Beneficial Owners of the Additional Tier 1 Securities, and (c) deliver a Conversion Trigger Notice to the
Trustee directly and to 

 

    32 

     

    

DTC as the Holder of the Global
Securities within five (5) Business Days (or such shorter period as the Relevant Regulator may require) after the date on which
such determination is made.

 

(c)           
The date on which the Conversion Trigger Notice shall be deemed to have been given shall be the date on which it is delivered
by the Company to DTC (or, if the Additional Tier 1 Securities are held in definitive form, to the Holders and Beneficial Owners
directly).

 

(d)           
The Company shall request that DTC post the Conversion Trigger Notice on its Reorganization Inquiry for Participants System
pursuant to DTC’s procedures then in effect (or such other system as DTC uses for providing notices to holders of securities).

 

(e)           
The Settlement Shares to be issued and delivered shall be so issued and delivered on terms permitting a Settlement Shares
Offer and shall, except where the Company has been unable to appoint a Settlement Share Depository and/or as otherwise provided
herein and by the Additional Tier 1 Securities, initially be registered in the name of the Settlement Share Depository, which,
subject to a Settlement Shares Offer, shall hold such Settlement Shares on behalf of the Holders and Beneficial Owners of the
Additional Tier 1 Securities. By virtue of its holding of any Additional Tier 1 Securities, each Holder and Beneficial Owner shall
be deemed to have irrevocably directed the Company to issue and deliver the Settlement Shares corresponding to the conversion
of its holding of Additional Tier 1 Securities to the Settlement Share Depository (or to such other relevant recipient).

 

(f)            
The Settlement Share Depository (or the relevant recipient in accordance with the terms of the Additional Tier 1 Securities,
as applicable) shall hold the Settlement Shares (and the Alternative Consideration, if any) on behalf of the Holders and Beneficial
Owners of the Additional Tier 1 Securities. For so long as the Settlement Shares are held by the Settlement Share Depository,
each Holder and Beneficial Owner shall be entitled to direct the Settlement Share Depository or such other relevant recipient,
as applicable, to exercise on its behalf all rights of an ordinary Shareholder (including voting rights and rights to receive
dividends); provided, however, that Holders and Beneficial Owners shall not have any rights to sell or otherwise transfer such
Settlement Shares unless and until such time as the Settlement Shares have been delivered to the Holders or Beneficial Owners
in accordance with the procedures set forth under ‎Section 2.17 hereof.

 

(g)           
Provided that the Company issues and delivers the Settlement Shares to the Settlement Share Depository (or the relevant
recipient in accordance with the terms of the Additional Tier 1 Securities) in accordance with the terms of the Additional Tier
1 Securities, with effect from and on the Conversion Date, Holders and Beneficial Owners of the Additional Tier 1 Securities shall
have recourse only to the Settlement Share Depository (or to such other relevant recipient, as applicable) for the delivery to
them of Settlement Shares, ADSs or, if applicable, the Alternative Consideration to which such Holders and Beneficial Owners are
entitled. Subject to the occurrence of a Winding-up or Administration Event on or following a Trigger Event, if the Company fails
to issue and deliver the Settlement Shares upon Automatic Conversion to the Settlement Share 

 

    33 

     

    

Depository on the Conversion
Date, the only right of Holders and Beneficial Owners shall be to claim to have such Settlement Shares so issued and delivered.

 

(h)           
Effective upon, and following, the occurrence of the Automatic Conversion, provided that the Company issues and delivers
the Settlement Shares to the Settlement Share Depository (or the relevant recipient in accordance with the terms of the Additional
Tier 1 Securities) in accordance with the terms of the Additional Tier 1 Securities, Holders and Beneficial Owners shall not have
any rights against the Company with respect to repayment of the principal amount of the Additional Tier 1 Securities or payment
of interest or any other amount on or in respect of such Additional Tier 1 Securities, which liabilities of the Company shall
be automatically released, and accordingly the principal amount of the Additional Tier 1 Securities shall equal zero at all times
thereafter. Any interest in respect of an interest period ending on any Interest Payment Date falling between the date of a Trigger
Event and up to (and including) the Conversion Date shall be deemed to have been canceled pursuant to ‎Section 2.03
above upon the occurrence of such Trigger Event and shall not be due and payable.

 

(i)            
Notwithstanding any other provision herein, by its acquisition of the Additional Tier 1 Securities, each Holder and each
Beneficial Owner shall be deemed to have (i) agreed to all of the terms and conditions of the Additional Tier 1 Securities, including,
without limitation, to those related to (x) Automatic Conversion of its Additional Tier 1 Securities following a Trigger Event
and (y) the appointment of the Settlement Share Depository, the issuance of the Settlement Shares to the Settlement Share Depository
(or to the relevant recipient in accordance with the terms of this Third Supplemental Indenture or the Additional Tier 1 Securities)
and the potential sale of the Settlement Shares pursuant to a Settlement Shares Offer and acknowledged that such events in (x)
and (y) may occur without any further action on the part of such Holders or Beneficial Owners or the Trustee, (ii) agreed that
effective upon, and following, the occurrence of the Automatic Conversion, no amount shall be due and payable to the Holders or
the Beneficial Owners under the Additional Tier 1 Securities and the liability of the Company to pay any such amounts (including
the principal amount of, or any interest in respect of, the Additional Tier 1 Securities) shall be automatically released, and
the Holders and the Beneficial Owners shall not have the right to give any direction to the Trustee with respect to the Trigger
Event and any related Automatic Conversion, (iii) waived, to the extent permitted by the Trust Indenture Act, any claim against
the Trustee arising out of its acceptance of its trusteeship under, and the performance of its duties, powers and rights in respect
of, the Indenture and in connection with the Additional Tier 1 Securities, including, without limitation, claims related to or
arising out of or in connection with a Trigger Event and/or any Automatic Conversion, and (iv) authorized, directed and requested
DTC and/or any direct participant in DTC or other intermediary through which it holds such Additional Tier 1 Securities to take
any and all necessary action, if required, to implement the Automatic Conversion without any further action or direction on the
part of such Holder or Beneficial Owner or the Trustee.

 

(j)            
The procedures set forth in this ‎Section 2.15 are subject to change to reflect changes in DTC practices, and
the Company may make changes to the procedures set forth in this ‎Section 2.15 to the extent reasonably necessary,
in the opinion of the 

 

    34 

     

    

Company, to reflect such changes
in DTC practices. Any such changes shall be subject to the provisions of ‎Section
8.01.

 

(k)           
Notwithstanding anything to the contrary contained in the Indenture or the Additional Tier 1 Securities, once the Company
has delivered a Conversion Trigger Notice following the occurrence of a Trigger Event, (i) subject to the right of Holders and
Beneficial Owners pursuant to ‎Section 4.03 in the event of a failure by the Company to issue and deliver any Settlement
Shares to the Settlement Share Depository on the Conversion Date, the Indenture shall impose no duties upon the Trustee whatsoever
with regard to an Automatic Conversion upon a Trigger Event and the Holders and Beneficial Owners shall have no rights whatsoever
under the Indenture or the Additional Tier 1 Securities to instruct the Trustee to take any action whatsoever, and (ii) as of
the date of the Conversion Trigger Notice, except for any indemnity and/or security provided by any Holder or by any Beneficial
Owner in such direction or related to such direction, any direction previously given to the Trustee by any Holder or by any Beneficial
Owner shall cease automatically and shall be null and void and of no further effect; except in each case of ‎(i) and
‎(ii) of this ‎Section 2.15(k), with respect to any rights of Holders or Beneficial Owners with respect
to any payments under the Additional Tier 1 Securities that were unconditionally due and payable prior to the date of the Conversion
Trigger Notice or unless the Trustee is instructed in writing by the Company to act otherwise.

 

(l)            
All authority conferred or agreed to be conferred by each Holder and Beneficial Owner pursuant to this ‎Section
2.15, including the consents given by such Holder and Beneficial Owner, shall be binding upon the successors, assigns, heirs,
executors, administrators, trustees in bankruptcy and legal representatives of such Holder and Beneficial Owner.

 

(m)            
The Trustee shall not be liable with respect to (i) the calculation or accuracy of the CET1 Ratio in connection with the
occurrence of a Trigger Event and the timing of such Trigger Event, (ii) the failure of the Company to post or deliver the underlying
CET1 Ratio calculations of a Trigger Event to DTC, the Holders or the Beneficial Owners, (iii) any aspect of the Company’s
decision to deliver a Conversion Trigger Notice or the related Automatic Conversion, (iv) the adequacy of the disclosure of these
provisions in the Prospectus or any other offering material in respect of the Additional Tier 1 Securities or for the direct or
indirect consequences thereof or (v) any other requirement of the Company contained herein related to a Trigger Event or the Automatic
Conversion.

 

(n)           
Following the issuance and delivery of the Settlement Shares to the Settlement Share Depository (or to the relevant recipient
in accordance with the terms of the Additional Tier 1 Securities) on the Conversion Date, the Additional Tier 1 Securities shall
remain in existence until the applicable Cancellation Date for the sole purpose of evidencing the Holders’ and Beneficial
Owners’ right to receive Settlement Shares, ADSs or Alternative Consideration, as the case may be, from the Settlement Share
Depository (or such other relevant recipient, as applicable).

 

    35 

     

    

(o)           
The Holders and Beneficial Owners shall not at any time have the option to convert to the Additional Tier 1 Securities
into Settlement Shares.

 

(p)           
The occurrence of the Automatic Conversion shall not constitute an Enforcement Event.

 

Section 2.16.     
Settlement Shares.

 

(a)           
The number of Settlement Shares to be issued to the Settlement Share Depository on the Conversion Date will be determined
by dividing the (i) aggregate principal amount of the Additional Tier 1 Securities outstanding immediately prior to the Automatic
Conversion on the Conversion Date, by (ii) the Conversion Price prevailing on the Conversion Date. The number of Settlement Shares
to be delivered to each Holder shall be rounded down, if necessary, to the nearest whole number of Settlement Shares. Fractions
of Settlement Shares will not be delivered to the Settlement Share Depository following the Automatic Conversion and no cash payment
shall be made in lieu thereof. The number of Settlement Shares to be held by the Settlement Share Depository for the benefit of
each Holder shall be (i) the number of Settlement Shares thus calculated divided by (ii) the Tradable Amount of the book-entry
interests in the Additional Tier 1 Securities held by such Holder on the Conversion Date rounded down, if necessary, to the nearest
whole number of Settlement Shares.

 

(b)           
The Settlement Shares issued following the Automatic Conversion shall be fully paid and non-assessable and shall in all
respects rank pari passu with the fully paid Ordinary Shares of the Company in issue on the Conversion Date, except in
any such case for any right excluded by mandatory provisions of applicable law, and except that the Settlement Shares so issued
shall not rank for (or, as the case may be, the relevant Holder or Beneficial Owner shall not be entitled to receive) any rights,
the Record Date for entitlement to which falls prior to the Conversion Date.

 

(c)           
The procedures set forth in this ‎Section 2.16 are subject to change to reflect changes in DTC practices, and
the Company may make changes to the procedures set forth in this ‎Section 2.16 to the extent reasonably necessary,
in the opinion of the Company, to reflect such changes in DTC practices. Any such changes shall be subject to the provisions of
‎Section 8.01. 

 

Section 2.17.     
Settlement Shares Offer.

 

(a)           
Within ten (10) Business Days following the Conversion Date, the Company may, in its sole and absolute discretion, elect
that the Settlement Share Depository (or an agent on its behalf) make an offer of, in the Company’s sole and absolute discretion,
all or some of the Settlement Shares to, at the Company’s sole and absolute discretion, all or some of the Shareholders
upon Automatic Conversion, such offer to be at a cash price per Settlement Share that will be no less than the Conversion Price
(translated from U.S. dollars into pounds sterling at the then-prevailing rate as determined by the Company in its sole discretion),
subject as provided in this ‎Section 2.17 (the “Settlement Shares Offer”).

 

    36 

     

    

(b)           
The Company reserves the right, in its sole and absolute discretion, to elect that the Settlement Share Depository terminate
the Settlement Shares Offer at any time during the Settlement Shares Offer Period. If the Company makes such an election, it shall
provide at least three (3) Business Days’ notice to the Trustee directly and to DTC as the Holder of the Global Securities
(or, if the Additional Tier 1 Securities are definitive Securities, by the Company to the Trustee directly and to the Holders
at their addresses shown on the Capital Securities Register). The Settlement Share Depository may then, in its sole and absolute
discretion, take steps (including, without limitation, changing the Suspension Date) to deliver to Holders and Beneficial Owners
(or the custodian, nominee, broker or other representative thereof) of the Additional Tier 1 Securities the Settlement Shares
or ADSs at a time that is earlier than the time at which such Holders and Beneficial Owners (or the custodian, nominee, broker
or other representative thereof) would have otherwise received the Alternative Consideration, had the Settlement Shares Offer
been completed.

 

(c)           
Upon expiry of the Settlement Shares Offer Period, the Settlement Share Depository shall provide notice to the Holders
of the Additional Tier 1 Securities of the composition of the Alternative Consideration (and of the deductions to the Cash Component,
if any, of the Alternative Consideration (as set out in the definition of “Alternative Consideration” in ‎Section
1.01)) per $1,000 Tradable Amount of the Additional Tier 1 Securities. The Alternative Consideration will be held by the Settlement
Share Depository on behalf of the Holders and Beneficial Owners and will be delivered to Holders and Beneficial Owners pursuant
to the procedures set forth under ‎Section 2.18. 

 

(d)           
The Cash Component of any Alternative Consideration shall be payable by the Settlement Share Depository to the Holders
and Beneficial Owners (or the custodian, nominee, broker or other representative thereof) of the Additional Tier 1 Securities
whether or not the Solvency Condition is satisfied. 

 

(e)           
If the Company elects, in its sole and absolute discretion, that a Settlement Shares Offer be conducted by the Settlement
Share Depository, each Holder or Beneficial Owner, by its acquisition of the Additional Tier 1 Securities, shall be deemed to
have (i) irrevocably consented to any Settlement Shares Offer and, notwithstanding that such Settlement Shares are held by the
Settlement Share Depository on behalf of Holders and Beneficial Owners, to the Settlement Share Depository using the Settlement
Shares delivered to it to settle any Settlement Shares Offer, (ii) irrevocably consented to the transfer of the beneficial interest
it holds in the Settlement Shares delivered upon Automatic Conversion to the Settlement Share Depository or to one or more purchasers
identified by the Settlement Share Depository in connection with the Settlement Shares Offer, (iii) irrevocably agreed that the
Company and the Settlement Share Depository may take any and all actions necessary to conduct the Settlement Shares Offer in accordance
with the terms of the Additional Tier 1 Securities, (iv) irrevocably agreed that none of the Company, the Trustee or the Settlement
Share Depository shall, to the extent permitted by applicable law, incur any liability to the Holders or Beneficial Owners in
respect of the Settlement Shares Offer (except for the obligations of the Settlement Share Depository in respect of the Holders’
and Beneficial Owners’ entitlement to, and 

 

    37 

     

    

subsequent delivery of, any Alternative
Consideration) and (v) authorized, directed and required DTC and/or any direct participant in DTC or other intermediary through
which it holds the Additional Tier 1 Securities to take any and all necessary action to implement the Automatic Conversion (including,
without limitation, any Settlement Shares Offer).

 

Section 2.18.     
Settlement Procedure.

 

(a)           
Delivery of the Settlement Shares, ADSs or Alternative Consideration, as applicable, to the Holders and Beneficial Owners
of the Additional Tier 1 Securities shall be made in accordance with the procedures set forth in this ‎Section 2.18,
which remain subject to change to reflect changes in DTC practices.

 

(b)           
The Settlement Shares Offer Notice shall specify the Suspension Date, as specified in the Conversion Trigger Notice.

 

(c)           
On the Suspension Date, the Company shall deliver, to the Trustee directly and to DTC as the Holder of the Global Securities
(or, if the Additional Tier 1 Securities are in definitive form, to the Holders at their addresses shown on the Capital Securities
Register) a Settlement Request Notice, pursuant to which the Company shall request that Holders and Beneficial Owners complete
a Settlement Notice and shall specify the Notice Cut-off Date and the Final Cancellation Date.

 

(d)           
Holders and Beneficial Owners (or the custodian, nominee, broker or other representative thereof) shall not receive delivery
of the relevant Settlement Shares, ADSs or Alternative Consideration, as applicable, unless such Holders or Beneficial Owners
(or the custodian, nominee, broker or other representative thereof) deliver the Settlement Notice to the Settlement Share Depository
on or before the Notice Cut-off Date; provided that, if such delivery is made after the end of normal business hours at
the specified office of the Settlement Share Depository, such delivery shall be deemed for all purposes to have been made or given
on the following Business Day.

 

(e)           
If the Additional Tier 1 Securities are held through DTC, the Settlement Notice must be given in accordance with the standard
procedures of DTC (which may include, without limitation, delivery of the notice to the Settlement Share Depository by electronic
means) and in a form acceptable to DTC and the Settlement Share Depository. With respect to any Additional Tier 1 Securities held
in definitive form, the Settlement Notice must be delivered to the specified office of the Settlement Share Depository together
with the relevant Additional Tier 1 Security.

 

(f)            
Subject to satisfaction of the requirements and limitations set forth in this ‎Section 2.18 and provided that
the Settlement Notice and the relevant Additional Tier 1 Securities, if applicable, are delivered on or before the Notice Cut-off
Date, the Settlement Share Depository shall deliver the relevant Alternative Consideration or Settlement Shares (rounded down
to the nearest whole number of Settlement Shares) to, or shall deposit such relevant Settlement Shares with the ADS Depository
on behalf of, the relevant Holder or Beneficial Owner (or custodian, nominee, broker or other representative thereof) of the relevant
Additional Tier 1 Securities completing the 

 

    38 

     

    

relevant Settlement Notice or
its nominee in accordance with the instructions given in such Settlement Notice on the applicable Settlement Date.

 

(g)           
Each Settlement Notice shall be irrevocable. The Settlement Share Depository shall determine, in its sole and absolute
discretion, whether any Settlement Notice has been properly completed and delivered, and such determination shall be conclusive
and binding on the relevant Holder or Beneficial Owner. If any Holder or Beneficial Owner fails to properly complete and deliver
a Settlement Notice and the relevant Additional Tier 1 Securities, if applicable, the Settlement Share Depository shall be entitled
to treat such Settlement Notice as null and void.

 

(h)           
Neither the Company nor any member of the Group shall pay any taxes or capital, stamp, issue and registration or transfer
taxes or duties arising upon Automatic Conversion or that may arise or be paid as a consequence of the issue and delivery of Settlement
Shares to the Settlement Share Depository. A Holder or Beneficial Owner must pay any taxes and capital, stamp, issue and registration
and transfer taxes or duties arising upon Automatic Conversion in connection with the issue and delivery of the Settlement Shares
to the Settlement Share Depository and such Holder or Beneficial Owner must pay all, if any, such taxes or duties arising by reference
to any disposal or deemed disposal of such Holders or Beneficial Owner’s Additional Tier 1 Security or interest therein.
Any taxes and capital, stamp, issue and registration and transfer taxes or duties arising on delivery or transfer of Settlement
Shares to a purchaser in any Settlement Shares Offer shall be payable by the relevant purchaser of those Settlement Shares.

 

(i)            
The Settlement Shares (and the Settlement Share Component, if any, of any Alternative Consideration) and ADSs shall not
be available for delivery (i) to, or to a nominee for, Euroclear Bank S.A./N.V. or Clearstream Banking S.A. or any other person
providing a clearance service within the meaning of Section 96 of the U.K. Finance Act 1986 or (ii) to a person, or nominee or
agent for a person, whose business is or includes issuing depository receipts within the meaning of Section 93 of the U.K. Finance
Act 1986, in each case at any time prior to the “abolition day” as defined in Section 111(1) of the U.K. Finance Act
1990, or (iii) to the CREST account of such a person described in ‎(i) or ‎(ii).

 

(j)            
The Company may make changes to the procedures set forth in this ‎Section 2.18 to the extent such changes are
reasonably necessary, in the opinion of the Company, to effect the delivery of the Settlement Shares or ADSs, as applicable, to
the Holders and Beneficial Owners of the Additional Tier 1 Securities.

 

Section 2.19.     
Failure to Deliver a Settlement Notice. If any Holder or Beneficial Owner (or custodian, nominee, broker or other
representative thereof) fails to deliver a Settlement Notice and the relevant Additional Tier 1 Securities, if applicable, to
the Settlement Share Depository on or before the Notice Cut-off Date, the Settlement Share Depository shall continue to hold the
Settlement Shares or Alternative Consideration in respect of such Holder or Beneficial Owner, until a Settlement Notice (and the
relevant Additional Tier 1 Securities, if applicable) is so delivered; provided, however, that the 

 

    39 

     

    

relevant Additional
Tier 1 Securities shall be canceled on the Final Cancellation Date, and any Holder or Beneficial Owner (or custodian, nominee,
broker or other representative thereof) of Additional Tier 1 Securities delivering a Settlement Notice after the Notice Cut-off
Date shall be required provide evidence of its entitlement to the relevant Settlement Shares, ADSs or Alternative Consideration
satisfactory to the Settlement Share Depository in its sole and absolute discretion in order to receive delivery of such Settlement
Shares, Alternative Consideration or ADSs (to be deposited with the ADS Depository on its behalf). The Company shall have no liability
to any Holder or Beneficial Owner of the Additional Tier 1 Securities for any loss resulting from such Holder’s or Beneficial
Owner’s failure to receive any Alternative Consideration, Settlement Shares or ADSs, or from any delay in the receipt thereof,
in each case as a result of such Holder or Beneficial Owner (or custodian, nominee, broker or other representative thereof) failing
to duly submit a Settlement Notice and the relevant Additional Tier 1 Securities, if applicable, on a timely basis or at all.

 

Section 2.20.     
Delivery of ADSs. In respect of Settlement Shares for which Holders or Beneficial Owners elect to be converted into
ADSs as specified in the Settlement Notice, subject to the Company’s right to elect that a Settlement Shares Offer be made
in accordance with ‎Section 2.17(a), the Settlement Share Depository shall deposit with the ADS Depository, the number
of Settlement Shares to be issued upon Automatic Conversion of the Additional Tier 1 Securities, and the ADS Depository shall
issue the corresponding number of ADSs to such Holder or Beneficial Owner (per the ADS-to-Ordinary Share ratio in effect on the
Conversion Date). Once deposited, the ADS Depository shall be entitled to the economic rights of a holder or beneficial owner
of the Settlement Shares for the purposes of any dividend entitlement and otherwise on behalf of the ADS holders, and the Holder
or Beneficial Owner will become the record holder of the related ADSs for all purposes under the ADS Deposit Agreement. However,
the issuance of the ADSs by the ADS Depository may be delayed until the depositary bank or the custodian receives confirmation
that all required approvals have been given and that the Settlement Shares have been duly transferred to the custodian and that
all applicable depositary fees and payments have been paid to the ADS Depository.

 

Section 2.21.     
Agreement with Respect to Exercise of U.K. Bail-in Power.

 

(a)           
Notwithstanding any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial
Owner of the Additional Tier 1 Securities, by purchasing or acquiring the Additional Tier 1 Securities, each Holder (including
each Beneficial Owner) of the Additional Tier 1 Securities acknowledges, accepts, agrees to be bound by and consents to the exercise
of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority that may result in (i) the reduction or cancellation of all,
or a portion, of the principal amount of, or interest on, the Additional Tier 1 Securities; (ii) the conversion of all, or a portion,
of the principal amount of, or interest on, the Additional Tier 1 Securities into shares or other securities or other obligations
of the Company or another person; and/or (iii) the amendment or alteration of the maturity of the Additional Tier 1 Securities,
or amendment of the amount of interest due on the Additional Tier 1 Securities, or the dates on which interest becomes payable,
including by suspending payment for a temporary period; any U.K. Bail-in Power may be 

 

    40 

     

    

exercised by means of variation
of the terms of the Additional Tier 1 Securities solely to give effect to the exercise by the Relevant U.K. Resolution Authority
of such U.K. Bail-in Power. With respect to (i), (ii) and (iii) above, references to principal and interest shall include payments
of principal and interest that have become due and payable, but which have not been paid, prior to the exercise of any U.K. Bail-in
Power. Each Holder and each Beneficial Owner of the Additional Tier 1 Securities further acknowledges and agrees that the rights
of the Holders and/or Beneficial Owners under the Additional Tier 1 Securities are subject to, and will be varied, if necessary,
solely to give effect to, the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority.

 

(b)           
By its acquisition of the Additional Tier 1 Securities, each Holder and Beneficial Owner:

 

(i)           
acknowledges and agrees that no exercise of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority with respect
to the Additional Tier 1 Securities or cancellation or deemed cancellation of interest on the Additional Tier 1 Securities pursuant
to Sections ‎2.03 or ‎2.04 shall give rise to a default for purposes of Section 315(b) (Notice
of Default) and Section 315(c) (Duties of the Trustee in Case of Default) of the Trust Indenture Act;

 

(ii)           
to the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate
a suit against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes,
or abstains from taking, in either case in accordance with the exercise of the U.K. Bail-in Power by the Relevant U.K. Resolution
Authority with respect to the Additional Tier 1 Securities.

 

(iii)           
acknowledges and agrees that, (A) upon the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority,
the Trustee shall not be required to take any further directions from Holders or Beneficial Owners of the Additional Tier 1 Securities
under Section 5.12 of the Capital Securities Indenture and (B) the Indenture shall impose no duties upon the Trustee whatsoever
with respect to the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority. Notwithstanding the foregoing,
if, following the completion of the exercise of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority, the Additional
Tier 1 Securities remain outstanding (for example, if the exercise of the U.K. Bail-in Power results in only a partial write-down
of the principal of the Additional Tier 1 Securities) then the Trustee’s duties under the Indenture shall remain applicable
with respect to the Additional Tier 1 Securities following such completion to the extent that the Company and the Trustee agree
pursuant to a supplemental indenture, unless the Company and the Trustee agree that a supplemental indenture is not necessary.

 

(iv)           
shall be deemed to have (i) consented to the exercise of any U.K. Bail-in Power as it may be imposed without any prior
notice by the Relevant U.K. Resolution Authority of its decision to exercise such power with respect to the Additional Tier 1
Securities and (ii) authorized, directed and requested DTC 

 

    41 

     

    

and/or any direct
participant in DTC or other intermediary through which it holds such Additional Tier 1 Securities to take any and all necessary
action, if required, to implement the exercise of any U.K. Bail-in Power with respect to the Additional Tier 1 Securities as it
may be imposed, without any further action or direction on the part of such Holder and such Beneficial Owner or the Trustee.

 

(c)           
Each Holder or Beneficial Owner that acquires its Additional Tier 1 Securities in the secondary market shall be deemed
to acknowledge, agree to be bound by and consent to the same provisions specified in the Indenture to the same extent as the Holders
and Beneficial Owners of the Additional Tier 1 Securities that acquire the Additional Tier 1 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
Additional Tier 1 Securities, including in relation to interest cancellation, the Automatic Conversion, the U.K. Bail-in Power,
the Settlement Shares Offer, and the limitations on remedies specified in ‎Section 4.04 hereof.

 

(d)           
No repayment of principal following any proposed redemption of the Additional Tier 1 Securities or payment of interest
on the Additional Tier 1 Securities shall become due and payable after the exercise of any U.K. Bail-in Power by the Relevant
U.K. Resolution Authority unless, at the time that such repayment or payment, respectively is scheduled to become due, such repayment
or payment would be permitted to be made by the Company under the laws and regulations of the United Kingdom and the European
Union applicable to the Company or other members of the Group.

 

(e)           
Upon the exercise of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority with respect to the Additional Tier
1 Securities, the Company shall provide a written notice to DTC as soon as practicable regarding such exercise of the U.K. Bail-in
Power for purposes of notifying Holders and Beneficial Owners of such occurrence. The Company shall also deliver a copy of such
notice to the Trustee for information purposes only.

 

(f)            
The Company’s obligations to indemnify the Trustee in accordance with Section 6.07 of the Capital Securities Indenture
shall survive any exercise of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority with respect to the Additional
Tier 1 Securities and any Automatic Conversion hereunder.

 

(g)           
The exercise of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority with respect to the Additional Tier 1
Securities shall not constitute an Enforcement Event.

 

Article
3

Anti-Dilution

 

Section 3.01.     
Adjustment of Conversion Price. Upon the occurrence of any of the events described below, the Conversion Price shall
be adjusted as follows:

 

    42 

     

    

(a)           
If and whenever there shall be a consolidation, reclassification, redesignation or subdivision in relation to the Ordinary
Shares which alters the number of Ordinary Shares in issue, the Conversion Price shall be adjusted by multiplying the Conversion
Price in force immediately prior to such consolidation, reclassification, redesignation or subdivision by the following fraction:

 

	 	A

    B

 

		where:	

 

		A	is the aggregate number of Ordinary
                                         Shares in issue immediately before such consolidation, reclassification, redesignation
                                         or subdivision, as the case may be; and

 

		B	is the aggregate number of Ordinary
                                         Shares in issue immediately after, and as a result of, such consolidation, reclassification,
                                         redesignation or subdivision, as the case may be.

 

Such
adjustment shall become effective on the date the consolidation, reclassification, redesignation or subdivision, as the case may
be, takes effect.

 

(b)           
If and whenever the Company shall issue any Ordinary Shares to Shareholders as a class credited as fully paid by way of
capitalization of profits or reserves (including any share premium account or capital redemption reserve) other than (1) where
any such Ordinary Shares are or are to be issued instead of the whole or part of a Cash Dividend which the Shareholders would
or could otherwise have elected to receive, (2) where the Shareholders may elect to receive a Cash Dividend in lieu of such Ordinary
Shares or (3) where any such Ordinary Shares are or are expressed to be issued in lieu of a dividend (whether or not a Cash Dividend
equivalent or amount is announced or would otherwise be payable to the Shareholders, whether at their election or otherwise),
the Conversion Price shall be adjusted by multiplying the Conversion Price in force immediately prior to such issue by the following
fraction:

 

	 	A

    B

 

		where:	

 

		A	is the aggregate number of Ordinary
                                         Shares in issue immediately before such issue; and

 

		B	is the aggregate number of Ordinary
                                         Shares in issue immediately after such issue.

 

Such
adjustment shall become effective on the date of issue of such Ordinary Shares.

 

    43 

     

    

(c)           
If and whenever the Company shall pay any Extraordinary Dividend to its Shareholders, the Conversion Price shall be adjusted
by multiplying the Conversion Price in force immediately prior to the Effective Date by the following fraction:

 

	 	A – B

       A

 

		where:	

 

		A	is the Current Market Price of one
                                         Ordinary Share on the Effective Date; and

 

		B	is the portion of the aggregate Extraordinary
                                         Dividend attributable to one Ordinary Share, with such portion being determined by dividing
                                         the aggregate Extraordinary Dividend by the number of Ordinary Shares entitled to receive
                                         the relevant Extraordinary Dividend. If the Extraordinary Dividend shall be expressed
                                         in a currency other than the Relevant Currency, it shall be converted into the Relevant
                                         Currency at the Prevailing Rate on the relevant Effective Date.

 

Such
adjustment shall become effective on the Effective Date.

 

“Effective
Date” means, in respect of this ‎Section 3.01(c),
(A) the first date on which the Ordinary Shares are traded ex-the Extraordinary Dividend on the Relevant Stock Exchange, or (B)
if there is no Relevant Stock Exchange, the first date upon which the adjusted Conversion Price is capable of being determined
in accordance with this ‎Section 3.01(c).

 

(d)           
If and whenever the Company shall issue Ordinary Shares to its Shareholders as a class by way of rights or the Company
or any member of the Group or (at the direction or request or pursuant to arrangements with the Company or any member of the Group)
any other company, person or entity, shall issue or grant to Shareholders as a class by way of rights, any options, warrants or
other rights to subscribe for or purchase Ordinary Shares, or any Other Securities which by their terms of issue carry (directly
or indirectly) rights of conversion into, or exchange or subscription for, any Ordinary Shares (or shall grant any such rights
in respect of existing Other Securities so issued), in each case at a price per Ordinary Share which is less than 95% of the Current
Market Price per Ordinary Share on the Effective Date, the Conversion Price shall be adjusted by multiplying the Conversion Price
in force immediately prior to the Effective Date by the following fraction:

 

	 	A + B

    A + C

 

		where:	

 

		A	is the number of Ordinary Shares
                                         in issue on the Effective Date;

 

    44 

     

    

		B	is the number of Ordinary Shares
                                         which the aggregate consideration (if any) receivable for the Ordinary Shares issued
                                         by way of rights, or for the Other Securities issued by way of rights, or for the options
                                         or warrants or other rights issued by way of rights and for the total number of Ordinary
                                         Shares deliverable on the exercise thereof, would purchase at such Current Market Price
                                         per Ordinary Share on the Effective Date; and

 

		C	is the number of Ordinary Shares
                                         to be issued or, as the case may be, the maximum number of Ordinary Shares which may
                                         be issued upon exercise of such options, warrants or rights calculated as at the date
                                         of issue of such options, warrants or rights or upon conversion or exchange or exercise
                                         of rights of subscription or purchase in respect thereof at the initial conversion, exchange,
                                         subscription or purchase price or rate.

 

provided
that if, on the Effective Date, such number of Ordinary Shares is to be determined by reference to the application of a formula
or other variable feature or the occurrence of any event at some subsequent time, then for the purposes of this ‎Section
3.01(d), “C” shall be determined by the application of such formula or variable feature or as if the relevant event
occurs or had occurred as at the Effective Date and as if such conversion, exchange, subscription, purchase or acquisition had
taken place on the Specified Date.

 

Such adjustment
shall become effective on the Effective Date, which means, in respect of this ‎Section
3.01(d), (A) the first date on which the Ordinary Shares are traded ex-rights, ex-options or ex-warrants on the Relevant Stock
Exchange, or (B) if there is no Relevant Stock Exchange, the first date upon which the adjusted Conversion Price is capable of
being determined in accordance with this Section 3.01(d).

 

For the
purpose of any calculation of the consideration receivable or price pursuant to this ‎Section
3.01(d), the following provisions shall apply:

 

		(i)	the aggregate consideration receivable
                                         or price for Ordinary Shares issued for cash shall be the amount of such cash;

 

		(ii)	(x) the aggregate consideration
                                         receivable or price for Ordinary Shares to be issued or otherwise made available upon
                                         the conversion or exchange of any Other Securities shall be deemed to be the consideration
                                         or price received or receivable for any such Other Securities and (y) the aggregate consideration
                                         receivable or price for Ordinary Shares to be issued or otherwise made available upon
                                         the exercise of rights of subscription attached to any Other Securities or upon the exercise
                                         of any options, warrants or rights shall be deemed to be that part (which may be the
                                         whole) of the consideration or price received or receivable for such Other Securities
                                         or, as the case may be, for such options, warrants or rights which are attributed by
                                         the Company to such rights of subscription or, as

 

    45 

     

    

the
case may be, such options, warrants or rights or, if no part of such consideration or price is so attributed, the Fair Market
Value of such rights of subscription or, as the case may be, such options, warrants or rights as at the relevant Effective Date,
plus in the case of each of (x) and (y) above, the additional minimum consideration receivable or price (if any) upon the conversion
or exchange of such Other Securities, or upon the exercise of such rights or subscription attached thereto or, as the case may
be, upon exercise of such options, warrants or rights and (z) the consideration receivable or price per Ordinary Share upon the
conversion or exchange of, or upon the exercise of such rights of subscription attached to, such Other Securities or, as the case
may be, upon the exercise of such options, warrants or rights shall be the aggregate consideration or price referred to in (x)
or (y) above (as the case may be) divided by the number of Ordinary Shares to be issued upon such conversion or exchange or exercise
at the initial conversion, exchange or subscription price or rate;

 

		(iii)	if the consideration or price
                                         determined pursuant to (i) or (ii) above (or any component thereof) shall be expressed
                                         in a currency other than the Relevant Currency, it shall be converted into the Relevant
                                         Currency at the Prevailing Rate on the relevant Effective Date (in the case of (i) above)
                                         or the relevant date of first public announcement (in the case of (ii) above);

 

		(iv)	in determining the consideration
                                         or price pursuant to the above, no deduction shall be made for any commissions or fees
                                         (howsoever described) or any expenses paid or incurred for any underwriting, placing
                                         or management of the issue of the relevant Ordinary Shares or Other Securities or options,
                                         warrants or rights, or otherwise in connection therewith; and

 

		(v)	the consideration or price shall
                                         be determined as provided above on the basis of the consideration or price received,
                                         receivable, paid or payable, regardless of whether all or part thereof is received, receivable,
                                         paid or payable by or to the Company or another entity.

 

		(e)	Notwithstanding provisions
of Sections ‎3.01(a) – ‎(d) above:

 

(i)           
where the events or circumstances giving rise to any adjustment to the Conversion Price have resulted or will result in
an adjustment to the Conversion Price or where more than one event which gives rise to an adjustment to the Conversion Price occurs
within such a short period of time that, in the opinion of the Company, a modification to the adjustment provisions is required
to give the intended result, such modification shall be made as may be determined in good faith by an Independent Adviser to be
in its opinion appropriate, including to ensure that (i) an adjustment to the Conversion Price or the economic effect thereof
shall not be taken into account more than once, (ii) the economic effect of an Extraordinary Dividend is not taken into account
more than once, and (iii) to 

 

    46 

     

    

reflect a redenomination
of the issued Ordinary Shares for the time being into a new currency;

 

(ii)           
if any doubt shall arise as to whether an adjustment falls to be made to the Conversion Price or as to the appropriate
adjustment to the Conversion Price, the Company may at its discretion appoint an Independent Adviser and, and following consultation
between the Company and such Independent Adviser, a written opinion of such Independent Adviser in respect thereof shall be conclusive
and binding on the Company, the Holders and the Beneficial Owners, save in the case of manifest error;

 

(iii)           
no adjustment will be made to the Conversion Price where Ordinary Shares or Other Securities (including rights, warrants
and options) are issued, offered, exercised, allotted, purchased, appropriated, modified or granted to, or for the benefit of,
employees or former employees (including directors holding or formerly holding executive office or the personal service company
of any such person) or their spouses or relatives, in each case, of the Company or any of its Subsidiaries or any associated company
or to a trustee or trustees to be held for the benefit of any such person, in any such case pursuant to any share or option scheme;

 

(iv)           
on any adjustment, if the resultant Conversion Price has more decimal places than the initial Conversion Price, it shall
be rounded to the same number of decimal places as the initial Conversion Price. No adjustment shall be made to the Conversion
Price where such adjustment (rounded down if applicable) would be less than 1% of the Conversion Price then in effect. Any adjustment
not required to be made, and/or any amount by which the Conversion Price has been rounded down, shall be carried forward and taken
into account in any subsequent adjustment, and such subsequent adjustment shall be made on the basis that the adjustment not required
to be made had been made at the relevant time and/or, as the case may be, that the relevant rounding down had not been made;

 

(v)           
Notice of any adjustments to the Conversion Price shall be given by the Company to DTC as the Holder of the Global Securities
(or, if the Additional Tier 1 Securities are in definitive form, via the Trustee) promptly after the determination thereof;

 

(vi)           
any adjustment to the Conversion Price shall be subject to such Conversion Price not being less than the U.S. dollar equivalent
of the nominal amount of an Ordinary Share at such time (currently £0.10). The Company undertakes that it shall not take
any action, and shall procure that no action is taken, that would otherwise result in an adjustment to the Conversion Price to
below such nominal value then in effect; and

 

(vii)           
references to the Conversion Price and Ordinary Shares shall be deemed to include any New Conversion Price and any Relevant
Shares, such that 

 

    47 

     

    

any New Conversion
Price shall be subject to price adjustments upon the occurrence of the events of set forth in Sections ‎3.01(a)
– ‎(d) above, subject to any modifications as an Independent
Adviser shall determine to be appropriate.

 

Section 3.02.     
Qualifying Relevant Event.

 

(a)           
Within ten (10) days following the occurrence of a Relevant Event, the Company shall give notice thereof to the Holders
and Beneficial Owners of the Additional Tier 1 Securities by means of a “Relevant Event Notice”, with a copy to the
Trustee.

 

(b)           
The Relevant Event Notice shall specify:

 

		(1)	the identity of the Acquirer;

 

		(2)	whether the Relevant Event is
                                         a Qualifying Relevant Event or a Non-Qualifying Relevant Event; and

 

		(3)	in the case of a Qualifying Relevant
                                         Event, the New Conversion Price.

 

(c)           
If a Qualifying Relevant Event occurs, the Additional Tier 1 Securities shall, where the Conversion Date (if any) falls
on or after the New Conversion Condition Effective Date, be converted on such Conversion Date into, or exchangeable for, Relevant
Shares of the Approved Entity, mutatis mutandis as provided under ‎Section 2.15 above, at a Conversion Price
that shall be the New Conversion Price. Such conversion shall be effected by the delivery by the Company of such number of Settlement
Shares as set forth under ‎Section 2.15 above to, or to the order of, the Approved Entity. Such delivery shall irrevocably
discharge and satisfy all of the Company’s obligations under the Additional Tier 1 Securities, but shall be without prejudice
to the rights of the Trustee and the Holders and Beneficial Owners against the Approved Entity in connection with its undertaking
to deliver Relevant Shares as provided in the definition of “New Conversion Condition”. Such delivery shall be in
consideration of the Approved Entity irrevocably undertaking for the benefit of the Holders and Beneficial Owners to deliver the
Relevant Shares to the Settlement Share Depository. For the avoidance of doubt, the Company may elect that a Settlement Shares
Offer be made by the Settlement Share Depository in respect of the Relevant Shares.

 

(d)           
The New Conversion Price shall be subject to adjustments in the circumstances provided for under Sections ‎3.01(a)
– ‎3.01(d)‎(d) above (if necessary with such modifications as an Independent Adviser shall determine
to be appropriate), and the Company shall give notice to the Holders of the Additional Tier 1 Securities of the New Conversion
Price and of any such modifications and amendments thereafter.

 

(e)           
In the case of a Qualifying Relevant Event:

 

(i)           
the Company shall, on or prior to the New Conversion Condition Effective Date, enter into such agreements and arrangements
(including, without limitation, supplemental indentures to the Indenture and amendments and 

 

    48 

     

    

modifications
to the terms and conditions of the Additional Tier 1 Securities and the Indenture) as may be required to ensure that, with effect
from the New Conversion Condition Effective Date, the Additional Tier 1 Securities shall (following the occurrence of a Trigger
Event) be convertible into, or exchangeable for, Relevant Shares of the Approved Entity, mutatis mutandis in accordance
with, and subject to, the provisions of ‎Section 2.15 of this Third Supplemental Indenture (as may be supplemented
or amended), at the New Conversion Price;

 

(ii)           
the Company shall, where the Conversion Date falls on or after the New Conversion Condition Effective Date, procure the
issue and/or delivery of the relevant number of Relevant Shares mutatis mutandis in the manner provided under ‎Section
2.15 of this Third Supplemental Indenture (as may be supplemented or amended).

 

Section 3.03.     
No Change to the Terms of Additional Tier 1 Securities on Non-Qualifying Relevant Event. If a Non-Qualifying Relevant
Event occurs (including if the Acquirer is a Governmental Entity), there shall be no automatic adjustment to the terms of the
Additional Tier 1 Securities (whether in the manner provided for in Section 3.02 of this Third Supplemental Indenture in respect
of a Qualifying Relevant Event or at all) and references in this Third Supplemental Indenture to “Settlement Shares”
or “Ordinary Shares” will continue to refer to the ordinary shares of the Company.

 

Article
4

Enforcement Events and Remedies

 

With respect
to the Additional Tier 1 Securities only, ‎Section 5.01 of
the Capital Securities Indenture shall be amended and restated in its entirety as follows in ‎Section
4.01 hereof, ‎Section 5.02 of the Capital Securities Indenture
shall be amended and restated in its entirety as follows in ‎4.02
and ‎4.03 hereof, Section 5.03(a) of the Capital Securities
Indenture shall be amended and restated in its entirety as follows in ‎Section
4.04 hereof, Section 5.13 of the Capital Securities Indenture shall be amended and restated in its entirety as follows in ‎Section
4.05 hereof, and references in the Capital Securities Indenture to such Sections shall be to such Sections as amended and restated
in entirety by this Third Supplemental Indenture. Section 5.10 of the Capital Securities Indenture shall apply to the Additional
Tier 1 Securities subject to the limitations on remedies specified in this ‎Article
4.

 

Section 4.01.     
Winding-up or Administration Event. If a Winding-Up or Administration Event occurs prior to the occurrence of a
Trigger Event, subject to the subordination provisions of ‎ ‎Article 5, the principal amount of the Additional
Tier 1 Securities shall become immediately due and payable, without the need of any further action on the part of the Trustee,
the Holders or any other Person, including the declaration by the Trustee, the Holders or any other Person that the principal
amount of the Additional Tier 1 Securities has become immediately due and payable.

 

    49 

     

    

Section 4.02.     
Non-Payment Event. Subject to ‎Section 2.12, if the Company fails to pay any amount of principal in respect
of the Additional Tier 1 Securities and such non-payment is not remedied within a period of seven (7) calendar days or more after
the date on which such payment is due (a “Non-Payment Event”), the Trustee may, on behalf of the Holders and
Beneficial Owners, at its discretion, or shall at the direction of Holders of 25% of the aggregate principal amount of outstanding
Additional Tier 1 Securities, subject to any applicable laws, institute proceedings for the winding up of the Company. In the
event of a winding-up or liquidation of the Company (whether or not instituted by the Trustee) the Trustee may prove the claims
of the Holders, Beneficial Owners and the Trustee in the winding-up proceeding of the Company and/or claim in the liquidation
of the Company, such claims as are set out in ‎Section 5.01(c) and ‎Section 5.01(d). For the avoidance of
doubt, the Trustee may not declare the principal amount of any outstanding Additional Tier 1 Securities to be due and payable
and may not pursue any other legal remedy, including a judicial proceeding for the collection of the sums due and unpaid on the
Additional Tier 1 Securities.

 

Section 4.03.     
Limited Remedies for Breach of Performance Obligations. In the event of a breach of any term, obligation or condition
binding upon the Company under the Additional Tier 1 Securities or the Indenture (other than any payment obligation of the Company
under or arising from the Additional Tier 1 Securities or the Indenture, including payment of any principal or interest, including
any damages awarded for breach of any obligations) (such obligation, a “Performance Obligation”), the
Trustee may without further notice institute such proceedings against the Company as it may deem fit to enforce the Performance
Obligation, provided that the Company shall not by virtue of the institution of any such proceedings be obliged to pay
any sum or sums, in cash or otherwise (including any damages) earlier than the same would otherwise have been payable under the
Additional Tier 1 Securities or the Indenture. For the avoidance of doubt, the breach by the Company of any Performance Obligation
shall not confer upon the Trustee (acting on behalf of the Holders) and/or the Holders or Beneficial Owners of the Additional
Tier 1 Securities any claim for damages and, in the event of such a breach of a Performance Obligation, the sole and exclusive
remedy that the Trustee (acting on behalf of the Holders) and/or the Holders or Beneficial Owners of the Additional Tier 1 Securities
may seek under the Additional Tier 1 Securities and the Indenture is specific performance under the laws of the State of New York.
By its acquisition of the Additional Tier 1 Securities, each Holder and Beneficial Owner of the Additional Tier 1 Securities acknowledges
and agrees (i) that such Holder and Beneficial Owner shall not seek, and shall not direct the Trustee (acting on their behalf)
to seek, any claim for damages against the Company in respect of any breach by the Company of a Performance Obligation, and (ii)
that the sole and exclusive remedy that such Holder and Beneficial Owner and/or the Trustee (acting on their behalf) may seek
under the Additional Tier 1 Securities and the Indenture for a breach by the Company of a Performance Obligation is specific performance
under the laws of the State of New York.

 

Section 4.04.     
No Other Remedies and Other Terms.

 

(a)           
Other than the limited remedies specified in this ‎Article 4, and subject to paragraph ‎(c) below,
no remedy against the Company shall be available to the Trustee 

 

    50 

     

    

(acting on behalf of the Holders)
or the Holders and Beneficial Owners, whether for the recovery of amounts owing in respect of such Additional Tier 1 Securities
or under the Indenture, or in respect of any breach by the Company of any of the Company’s obligations under or in respect
of the terms of such Additional Tier 1 Securities or under the Indenture in relation thereto; provided, however,
that the Company’s obligations to the Trustee under, and the Trustee’s lien provided for in, Section 6.07 of the Capital
Securities Indenture and the Trustee’s rights to have money collected applied first to pay amounts due to it under such
Section pursuant to Section 5.06 of the Capital Securities Indenture shall not be limited or impaired by this Article 4 or otherwise
and expressly survive any Enforcement Event and are not subject to the subordination provisions of ‎Section
5.01 and the waiver of set-off provisions of ‎Section 5.02
of this Third Supplemental Indenture.

 

(b)           
For purposes of the Capital Securities Indenture, “Event of Default” shall mean an “Enforcement Event”
as defined in this Third Supplemental Indenture, except that the term “Event of Default” as used in Article 8 of the
Capital Securities Indenture shall mean “Winding-up or Administration Event.”

 

(c)           
Notwithstanding the limitations on remedies specified under this ‎Article 4, (1) the Trustee shall have such
powers as are required to be authorized to it under the Trust Indenture Act in respect of the rights of the Holders and Beneficial
Owners of the Additional Tier 1 Securities under the provisions of the Indenture, and (2) nothing shall impair the right of a
Holder or Beneficial Owner of the Additional Tier 1 Securities under the Trust Indenture Act, absent such Holder’s or Beneficial
Owner’s consent, to sue for any payment due but unpaid with respect to the Additional Tier 1 Securities; provided
that, in the case of (1) and (2) above, any payments in respect of, or arising from, the Additional Tier 1 Securities, including
any payments or amounts resulting or arising from the enforcement of any rights under the Trust Indenture Act in respect of the
Additional Tier 1 Securities, shall be subject to the subordination provisions set forth in ‎Section 5.01 and the waiver
of set-off provisions in ‎Section 5.02‎ of this Third Supplemental Indenture.

 

(d)           
In furtherance of Section 6.01 of the Capital Securities Indenture:

 

(i) For
purposes of Sections 315(a) and 315(c) of the Trust Indenture Act, the term “default” is hereby defined to mean an
Enforcement Event which has occurred and is continuing.

 

(ii)
Notwithstanding anything contained in the Capital Securities Indenture to the contrary, the duties and responsibilities of the
Trustee under this Indenture shall be subject to the protections, exculpations and limitations on liability afforded to an indenture
trustee under the provisions of the Trust Indenture Act.

 

Section 4.05.     
Waiver of Past Defaults.

 

(a)           
Holders of not less than a majority in aggregate principal amount of the outstanding Securities may on behalf of the Holders
of all of the Additional Tier 1 Securities waive any past Enforcement Event that results from a breach by the Company 

 

    51 

     

    

of a Performance Obligation.
Holders of a majority of the aggregate principal amount of the outstanding Additional Tier 1 Securities shall not be entitled
to waive any past default that results from a Winding-up or Administration Event or a Non-Payment Event.

 

(b)           
Upon the occurrence of any waiver permitted by paragraph ‎(a) above, such Enforcement Event shall cease to exist,
and any Enforcement Event with respect to any series arising therefrom shall be deemed to have been cured and not to have occurred
for every purpose of the Capital Securities Indenture, but no such waiver shall extend to any subsequent or other Enforcement
Event or impair any right consequent thereon.

 

Article
5

Subordination

 

Section 5.01.     
Subordination to Claims of Senior Creditors.

 

(a)           
With respect to the Additional Tier 1 Securities only, Section 12.01(a) of the Capital Securities Indenture shall be amended
and restated in its entirety as follows in this ‎Section 5.01. References in the Capital Securities Indenture to Section
12.01(a) thereof shall be to ‎Section 5.01 hereof. For the avoidance of doubt, no provision of Article 12 of the Capital
Securities Indenture other than Section 12.01(a) shall be amended by this Third Supplemental Indenture. 

 

(b)           
The Additional Tier 1 Securities shall constitute the Company’s direct, unsecured and subordinated obligations, ranking
equally without any preference among themselves. The rights and claims of the Holders and Beneficial Owners of the Additional
Tier 1 Securities in respect of or arising from the Additional Tier 1 Securities shall be subordinated to the claims of Senior
Creditors.

 

(c)           
If a Winding-up or Administration Event occurs prior to the date on which a Trigger Event occurs, there shall be payable
by the Company in respect of each Additional Tier 1 Security (in lieu of any other payment by the Company) such amount, if any,
as would have been payable to the Holder or Beneficial Owner if, throughout such Winding-up or Administration Event, such Holder
or Beneficial Owner were the holder of one of a class of preference shares in the capital of the Company (“Notional Preference
Shares”) having an equal right to a return of assets in the Winding-up or Administration Event to, and so ranking pari
passu with, the holders of the most senior class or classes of issued preference shares in the capital of the Company from
time to time (if any) and which have a preferential right to a return of assets in the Winding-up or Administration Event over,
and so rank ahead of, the holders of all other classes of issued shares for the time being in the capital of the Company but ranking
junior to the claims of Senior Creditors and on the assumption that the amount that such holder was entitled to receive in respect
of each Notional Preference Share is an amount equal to the principal amount of, the relevant Additional Tier 1 Security together
with, to the extent not otherwise included within the foregoing, any other amounts attributable to such Additional Tier 1 Security,
including any Accrued Interest thereon and any damages awarded for breach of any obligations in respect thereof, regardless of
whether the Solvency Condition is satisfied on the date upon which the same would otherwise be due 

 

    52 

     

    

and payable (and, in the case
of an administration, on the assumption that such shareholders were entitled to claim and recover in respect of their shares to
the same degree as in a winding up or liquidation).

 

(d)           
If a Winding-up or Administration Event occurs at any time on or following the date on which a Trigger Event occurs but
the Settlement Shares to be issued and delivered to the Settlement Share Depository on the Conversion Date have not been so delivered,
there shall be payable by the Company in respect of each Additional Tier 1 Security (in lieu of any other payment by the Company)
such amount, if any, as would have been payable to the Holder or Beneficial Owner of such Additional Tier 1 Security in a Winding-up
or Administration Event if the Conversion Date in respect of the Automatic Conversion had occurred immediately before the occurrence
of a Winding-up or Administration Event and, accordingly, as if such holder were, throughout such Winding-up or Administration
Event, the holder of such number of Ordinary Shares as it would have been entitled to receive upon Automatic Conversion (ignoring
for this purpose the Company’s right to make an election for a Settlement Shares Offer to be effected pursuant to ‎Section
2.17), regardless of whether the Solvency Condition is satisfied on such date (and, in the case of an administration, on the assumption
that shareholders were entitled to claim and recover in respect of their shares to the same degree as in a winding up or liquidation).

 

(e)           
Other than in the event of a Winding-up or Administration Event of the Company as described in paragraph ‎(c)
and ‎(d) above, or in relation to the Cash Component of any Alternative Consideration in any Settlement Shares Offer,
payments in respect of or arising under the Additional Tier 1 Securities (including any damages for breach of any obligations
thereunder) shall, in addition to the cancellation of any interest payment pursuant to ‎Section 2.03 or ‎2.04
hereof, be conditional (i) upon the Company’s being solvent at the time when the relevant payment is due to be made, and
(ii) in that no principal, interest or other amount payable shall be due and payable in respect of or arising from the Additional
Tier 1 Securities except to the extent that the Company could make such payment and still be solvent immediately thereafter (such
condition referred to herein as the “Solvency Condition”). For purposes of determining whether the Solvency
Condition is met, the Company shall be considered to be solvent at a particular point in time if (i) it is able to pay its debts
owed to Senior Creditors as they fall due and (ii) its Assets are at least equal to its Liabilities. An Officer’s Certificate
shall, unless there is manifest error, be treated and accepted by the Company, the Trustee, the Holders and the Beneficial Owners
as correct and sufficient evidence that the Solvency Condition is or is not satisfied. For the avoidance of doubt, if the Company
fails to make a payment because the Solvency Condition is not (or following such payment would not be) satisfied, that payment,
shall not be or become due and payable.

 

Section 5.02.     
No Set-Off. Subject to applicable law, no Holder of Additional Tier 1 Securities may exercise, claim or plead any
right of set-off, compensation or retention in respect of any amount owed to it by the Company arising under, or in respect of,
or in connection with, the Additional Tier 1 Securities and each Holder of Additional Tier 1 Securities shall, by virtue of its
holding of any Additional Tier 1 Securities, be deemed to have waived all such rights of set-off, compensation or retention.

 

    53 

     

    

Notwithstanding the previous
sentence, if any amount owing to any holder of any Additional Tier 1 Security by the Company in respect of, or arising under or
in connection with the Additional Tier 1 Securities is discharged by set-off, such holder shall, subject to applicable law, immediately
pay an amount equal to the amount of such discharge to the Company (or, in the event of its winding-up or administration, the
liquidator or, as appropriate, administrator of the Company) and, until such time as payment is made, shall hold an amount equal
to such amount in trust for the Company (or the liquidator or, as appropriate, administrator of the Company) and accordingly any
such discharge shall be deemed not to have taken place.

 

Article
6

Covenants

 

Section 6.01.     
Undertakings. While any Additional Tier 1 Security remains outstanding, the Company shall (if and to the extent
permitted by the Applicable Regulations from time to time and only to the extent that such undertaking would not cause a Regulatory
Event to occur), save with the approval of an extraordinary Shareholder resolution:

 

(a)           
not make any issue, grant or distribution or take or omit to take any other action if the effect thereof would be that,
upon Automatic Conversion of the Additional Tier 1 Securities, Ordinary Shares could not, under any applicable law then in effect,
be legally issued as fully paid;

 

(b)           
in the event of a Newco Scheme, take (or shall procure that there is taken) all necessary action to ensure that the Newco
Scheme is an Exempt Newco Scheme and that immediately after completion of the Scheme of Arrangement, any amendments to the Indenture
as may be necessary to ensure that the Additional Tier 1 Securities may be converted into, or exchanged for, ordinary shares or
units or the equivalent in Newco in accordance with the Indenture;

 

(c)           
use all reasonable endeavors to ensure that the Settlement Shares issued upon Automatic Conversion of the Additional Tier
1 Securities following a Trigger Event shall be admitted to listing and trading on the Relevant Stock Exchange;

 

(d)           
following the Automatic Conversion of the Additional Tier 1 Securities, take all reasonable actions as may be necessary
to ‎(a) register any additional ADSs, ‎(b) deposit a sufficient number of ADSs with the ADS Depository,
and (c) ensure that such ADSs shall continue to be listed on the New York Stock Exchange or, if the ADSs cease to be listed on
such exchange, to be admitted to trading on a national securities exchange in the United States;

 

(e)           
notwithstanding any Settlement Shares Offer, at all times keep available for issue, free from pre-emptive or other preferential
rights, sufficient Ordinary Shares to enable Automatic Conversion of the Additional Tier 1 Securities to be satisfied in full;

 

    54 

     

    

(f)            
in circumstances where the provisions of this Third Supplemental Indenture or the Additional Tier 1 Securities contemplate
the appointment of a Settlement Share Depository, the Company shall use all reasonable endeavors to promptly appoint such Settlement
Share Depository; and

 

(g)           
where the provisions of the Indenture require or provide for a determination by an Independent Adviser, the Company shall
use all reasonable endeavors promptly to appoint an Independent Adviser for such purpose.

 

Article
7

Satisfaction and Discharge

 

Section 7.01.     
Satisfaction and Discharge of Indenture. For purposes of the Additional Tier 1 Securities, ‎Section 4.01
of the Capital Securities Indenture shall be amended and restated in its entirety and shall read as follows:

 

This Indenture shall
upon Company Request, subject to ‎Section 4.04 of the Capital
Securities Indenture, cease to be of further effect with respect to the Additional Tier 1 Securities (except as to any surviving
rights of registration of transfer or exchange of the Securities herein expressly provided for), and the Trustee, at the expense
of the Company, shall execute proper instruments acknowledging satisfaction and discharge of the Indenture with respect to the
Additional Tier 1 Securities when:

 

(a)           
all Additional Tier 1 Securities theretofore authenticated and delivered (other than Securities which have been destroyed,
lost or stolen and which have been replaced or paid as provided in Section 3.06 of the Capital Securities Indenture) have been
delivered to the Trustee for cancellation;

 

(b)           
the Company has paid or caused to be paid all other sums payable hereunder (including Accrued Interest, if any) by the
Company with respect to the Additional Tier 1 Securities; and

 

(c)           
the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the satisfaction and discharge of the Indenture with respect to the Additional
Tier 1 Securities have been complied with.

 

(d)           
Notwithstanding any satisfaction and discharge of the Indenture, the obligations of the Company to the Trustee under Section
6.07 of the Capital Securities Indenture, the obligations of the Trustee to any Authenticating Agent under Section 6.15 of the
Capital Securities Indenture and the obligations of the Trustee under ‎Section 4.02 of the Capital Securities Indenture
and the last paragraph of Section 10.03 of the Capital Securities Indenture shall survive such satisfaction and discharge.

 

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Article
8

Supplemental Indentures

 

Section 8.01.     
Amendments or Supplements Without Consent of Holders. In addition to any permitted amendment or supplement to the
Capital Securities Indenture pursuant to ‎Section 9.01 of the Capital Securities Indenture, the Company and the Trustee
may amend or supplement the Indenture or the Additional Tier 1 Securities without notice to or the consent of any Holder of the
Additional Tier 1 Securities (i) to conform this Third Supplemental Indenture and the form or terms of the Additional Tier 1 Securities
to the section entitled “Description of the Additional Tier 1 Securities” as set forth in the Prospectus, (ii) to
reflect changes to the procedures set forth in ‎Section 2.15 or ‎Section 2.16 above, (iii) to ensure that
in the event of a Newco Scheme, the Additional Tier 1 Securities may be converted into, or exchanged for, ordinary shares or units
or the equivalent in accordance with ‎Section 6.01(b) and/or procure that Newco is substituted under the Additional
Tier 1 Securities as the issuer or (iv) pursuant to ‎Section 2.21(b)(iii).

 

Section 8.02.     
Amendments or Supplements With Consent of Holders. The Company and the Trustee may amend the Additional Tier 1 Securities
and the Indenture with respect to the Additional Tier 1 Securities as provided in ‎Section 9.02 of the Capital Securities
Indenture. Notwithstanding the foregoing provision and in addition to the provisions of ‎Section 9.02 of the Capital
Securities Indenture, without the consent of each Holder of an outstanding Additional Tier 1 Security affected thereby, no amendment
or waiver may make any change that adversely affects the conversion rights of any of the Additional Tier 1 Securities.

 

Section 8.03.     
Holders Approval of Amendments. The consent of the Holders is not necessary under the Indenture to approve the particular
form of any proposed amendment, supplement or waiver, but it will be sufficient if such consent approves the substance of such
proposed amendment, supplement or waiver. After an amendment, supplement or waiver becomes effective, the Company shall give to
the Holders affected by such amendment, supplement or waiver a notice in accordance with the Indenture briefly describing such
amendment, supplement or waiver. The Company shall mail supplemental indentures to Holders upon request. Any failure of the Company
to mail such notice, or any defect in such notice, will not, however, in any way impair or affect the validity of any such supplemental
indenture or waiver.

 

Section 8.04.     
Relevant Regulator Consent. No modification shall be effected to this Third Supplemental Indenture or in relation
to the Additional Tier 1 Securities, unless the Company has received any Relevant Regulator Consent as may be required under the
Applicable Regulations. The Trustee is entitled to request and rely on an Officer’s Certificate as to the satisfaction of
this condition precedent to any modification without further enquiry.

 

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Article
9

Additional Amounts

 

Section 9.01.     
Additional Amounts. For purposes of the Additional Tier 1 Securities, ‎Section 10.04 of the Capital Securities
Indenture shall be amended and restated in its entirety and shall read as follows:

 

Section
10.04.Additional Amounts.

 

Unless
otherwise specified in any Board Resolution establishing the terms of Capital Securities of a series in accordance with Section
3.01, all payments of principal and/or interest to Holders by or on behalf of the Company in respect of the Capital Securities
shall be made without withholding or deduction for or on account of any present or future tax, duty, assessment or governmental
charge of whatsoever nature imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom or any authority
thereof or therein having power to tax, unless such withholding or deduction is required by law. In that event, the Company shall
pay, to the extent it has sufficient Distributable Items, such additional amounts in respect of payments of interest (but not
in respect of payments of principal or any other amounts) (“Additional Amounts”) as will result (after such
withholding or deduction) in receipt by the Holders of the sums which would have been received (in the absence of such withholding
or deduction) by them in respect of their Capital Securities; except that no such Additional Amounts shall be payable with respect
to any Capital Security:

 

		(i)	held by or on behalf of any Holder
                                         who is liable to such tax, duty, assessment or governmental charge in respect of such
                                         Capital Security by reason of such Holder having some connection with the United Kingdom
                                         other than the mere holding of such Capital Security; or

 

		(ii)	to, or to a third party on behalf
                                         of, a Holder if such withholding or deduction may be avoided by complying with any statutory
                                         requirement or by making a declaration of non-residence or other similar claim for exemption
                                         to any authority of or in the United Kingdom; or

 

		(iii)	presented or surrendered for
                                         payment (where presentation or surrender is required) more than 30 days after the Relevant
                                         Date except to the extent that the Holder thereof would have been entitled to such Additional
                                         Amounts on presenting or surrendering the same for payment at the expiry of such period
                                         of 30 days; or

 

		(iv)	where the deduction or withholding
                                         is imposed by reason of Sections 1471-1474 of the U.S. Internal Revenue Code and the
                                         U.S. Treasury regulations thereunder or any agreement with the

 

    57 

     

    

U.S.
Internal Revenue Service in connection with these sections or regulations (“FATCA”), any intergovernmental
agreement between the United States and the United Kingdom or any other jurisdiction with respect to FATCA, or any law, regulation
or other official guidance enacted in any jurisdiction implementing, or relating to, FATCA or any intergovernmental agreement;
or

 

		(v)	any combination of the above items,

 

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

 

Save
as provided under this Section 10.04, payments under the Capital Securities will be subject in all cases to any other applicable
fiscal or other laws and regulations in the place of payment or other laws and regulations to which the Company or its Paying
Agents agree to be subject and the Company will not be liable for any taxes or duties of whatever nature imposed or levied by
such laws, regulations or agreements. No commission or expenses shall be charged to the Holders in respect of such payments.

 

In
the event that any withholding or deduction for or on account of any taxes is required, at least 10 days prior to each date of
payment of principal of or interest on the relevant series of Capital Securities, or any other period of time as agreed between
the Company and the Trustee and the Paying Agent, if other than the Trustee, the Company will furnish to the Trustee and the Paying
Agent, if other than the Trustee, an Officer’s Certificate specifying the amount required to be withheld or deducted on
such payments to such Holders, certifying that the Company shall pay such amounts required to be withheld to the appropriate Taxing
Jurisdiction and certifying to the fact that the Additional Amounts will be payable and the amounts so payable to each Holder,
and that the Company will pay to the Trustee or the Paying Agent the Additional Amounts required to be paid; provided that
no such Officer’s Certificate will be required prior to any date of payment of principal of or interest on such Capital
Securities if there has been no change with respect to the matters set forth in a prior Officer’s Certificate. The Trustee
and Paying Agent may rely on the fact that any Officer’s Certificate contemplated by this paragraph has not been furnished
as evidence of the fact that no withholding or deduction for or on account of any taxes is required.

 

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Article
10

Miscellaneous

 

Section 10.01. 
Effect of Supplemental Indenture. Upon the execution and delivery of this Third Supplemental Indenture by each of
the Company and the Trustee, the Capital Securities Indenture shall be supplemented and amended in accordance herewith, and this
Third Supplemental Indenture shall form a part of the Capital Securities Indenture for all purposes in respect of any Additional
Tier 1 Securities.

 

Section 10.02. 
Other Documents to Be Given to the Trustee. As specified in ‎Section 9.03 of the Capital Securities Indenture
and subject to the provisions of Section 6.03 of the Capital Securities Indenture, the Trustee shall be entitled to receive an
Officer’s Certificate stating the recitals contained in ‎Section 1.02 of the Capital Securities Indenture have
been complied with and an Opinion of Counsel stating that this Third Supplemental Indenture is permitted by the Capital Securities
Indenture, conforms to the requirements of the Trust Indenture Act, and (subject to ‎Section 1.03 of the Capital Securities
Indenture) constitutes valid and binding obligations of the Company enforceable in accordance with their terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable
principles of general applicability. The Trustee shall be entitled to rely on such Officer’s Certificate and Opinion of
Counsel as conclusive evidence that this Third Supplemental Indenture complies with the applicable provisions of the Capital Securities
Indenture.

 

Section 10.03. 
Notices to, and Consents Required from, the Relevant Regulator to Be Given to the Trustee. The Trustee shall be
entitled to receive, and shall be fully protected in relying upon without any investigation, a copy of all notifications provided
to, and prior consents required from, the Relevant Regulator pursuant to the Indenture.

 

Section 10.04. 
Survival. Anything herein to the contrary notwithstanding, for purposes of the Additional Tier 1 Securities, Section
6.08 of the Capital Securities Indenture is hereby amended in its entirety as follows: The Trustee’s right to payment of
its fees, reimbursement and indemnity under, and in its lien provided for in, Sections 5.06 and 6.07 of the Capital Securities
Indenture shall survive the payment in full of the Additional Tier 1 Securities, the satisfaction and discharge of the Indenture,
the Automatic Conversion upon a Trigger Event, the resignation or removal of the Trustee, the termination for any reason of the
Indenture and any exercise of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority with respect to the Additional
Tier 1 Securities.

 

Section 10.05. 
Confirmation of Indenture. The Capital Securities Indenture, as supplemented and amended by this Third Supplemental
Indenture, is in all respects ratified and confirmed, and the Capital Securities Indenture and this Third Supplemental Indenture
shall, in respect of any Additional Tier 1 Securities, be read, taken and construed as one and the same instrument. This Third
Supplemental Indenture constitutes an integral part of the Capital Securities Indenture with respect to the Additional Tier 1
Securities. In the event of a conflict between the terms and conditions of the Capital 

 

    59 

     

    

Securities Indenture and the
terms and conditions of this Third Supplemental Indenture, the terms and conditions of this Third Supplemental Indenture shall
prevail with respect to the Additional Tier 1 Securities.

 

Section 10.06. 
Concerning the Trustee. The Trustee does not make any representations as to the validity or sufficiency of this
Third Supplemental Indenture. The recitals and statements herein are deemed to be those of the Company and not the Trustee. In
entering into this Third Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the Capital
Securities Indenture relating to the conduct of or affecting the liability of or affording protection to the Trustee.

 

Section 10.07. 
Governing Law. This Third Supplemental Indenture and the Additional Tier 1 Securities shall be governed by and construed
in accordance with the laws of the State of New York, except that (i) ‎Section 5.01 of this Third Supplemental Indenture
(other than the Trustee’s own rights, duties or immunities thereunder) and ‎Section 5.02 shall be governed by
and construed in accordance with Scots law and (ii) the authorization and execution by the Company of this Third Supplemental
Indenture and the Additional Tier 1 Securities shall be governed by (in addition to the laws of the State of New York relevant
to execution) the jurisdiction of the Company.

 

Section 10.08. 
Counterparts. This Third Supplemental Indenture may be executed in any number of counterparts, each of which shall
be an original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this
Third Supplemental Indenture and of signature pages by facsimile or electronic format (i.e., “pdf” or “tif”)
transmission shall constitute effective execution and delivery of this Third Supplemental Indenture as to the parties hereto and
may be used in lieu of the original Third Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted
by facsimile or electronic format (i.e., “pdf” or “tif”) shall be deemed to be their original signatures
for all purposes.

 

[Signature
Pages Follow]

 

    60 

     

    

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

 

	LLOYDS BANKING GROUP PLC, as Company
	 
	 
	By:	/s/ Andrew Wood
	 	Name:Andrew Wood
	 	Title:Head of Capital Management

  

 

	THE BANK OF NEW YORK MELLON, acting through its London
    Branch, as Trustee
	 
	 
	By:	/s/ Marilyn Chau
	 	Name:Marilyn Chau
	 	Title:Vice President

  

 

[Signature
Page to Third Supplemental Indenture] 

     

     

    

EXHIBIT
A

 

FORM
OF GLOBAL NOTE

 

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

 

This Additional
Tier 1 Security is one of a duly authorized issue of securities of the Company (as defined below) (herein called the “Additional
Tier 1 Securities” and each, an “Additional Tier 1 Security”) issued and to be issued in one or more
series under and governed by the Capital Securities Indenture, dated as of March 6, 2014 (the “Capital Securities Indenture”),
as supplemented by the Third Supplemental Indenture, dated as of June 19, 2019 (the “Third Supplemental Indenture”
and, together with the Capital Securities Indenture, the “Indenture”). Capitalized terms used herein but not
otherwise defined shall have the meaning ascribed to them in the Third Supplemental Indenture.

 

The rights
of the Holder and Beneficial Owners of this Additional Tier 1 Security are, to the extent and in the manner set forth in ‎Section
5.01 of the Third Supplemental Indenture (which amends in its entirety Section 12.01(a) of the Capital Securities Indenture),
subordinated to the claims of other creditors of the Company, and this Additional Tier 1 Security is issued subject to the provisions
of that Section 5.01, and the Holder of this Additional Tier 1 Security, by accepting the same, agrees to, and shall be bound
by, such provisions. The provisions of ‎Section 5.01 (other
than the Trustee’s own rights, duties or immunities thereunder) and ‎Section
5.02 of the Third Supplemental Indenture are governed by, and shall be construed in accordance with, Scots law.

 

The rights
of the Holder of this Additional Tier 1 Security are subject to ‎Section
2.15 of the Third Supplemental Indenture. Effective upon, and following, the occurrence of the Automatic Conversion, provided
that the Company issues and delivers the Settlement Shares to the Settlement Share Depository (or the relevant recipient in accordance
with this Additional Tier 1 Security or the Third Supplemental Indenture), Holders and Beneficial Owners shall not have any rights
against the Company with respect to repayment of the principal amount of this Additional Tier 1 Security or payment of interest
or any other amount on or in respect of this Additional Tier 1 Security, which liabilities of the Company shall be irrevocably
and automatically released, and accordingly the principal amount of this Additional Tier 1 Security shall equal zero at all times
thereafter.

 

Notwithstanding
any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial Owner of this Additional
Tier 1 Security, by

 

    1 

     

    

purchasing or acquiring the Additional
Tier 1 Securities, each Holder (including each Beneficial Owner) of the Additional Tier 1 Securities acknowledges, accepts, agrees
to be bound by and consents to the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority that may result
in (i) the reduction or cancellation of all, or a portion, of the principal amount of, or interest on, the Additional Tier 1 Securities;
(ii) the conversion of all, or a portion, of the principal amount of, or interest on, the Additional Tier 1 Securities into shares
or other securities or other obligations of the Company or another person; and/or (iii) the amendment or alteration of the maturity
of the Additional Tier 1 Securities, or amendment of the amount of interest due on the Additional Tier 1 Securities, or the dates
on which interest becomes payable, including by suspending payment for a temporary period; any U.K. Bail-in Power may be exercised
by means of variation of the terms of the Additional Tier 1 Securities solely to give effect to the exercise by the Relevant U.K.
Resolution Authority of such U.K. Bail-in Power. With respect to (i), (ii) and (iii) above, references to principal and interest
shall include payments of principal and interest that have become due and payable, but which have not been paid, prior to the
exercise of any U.K. Bail-in Power. Each Holder and each Beneficial Owner of the Additional Tier 1 Securities further acknowledges
and agrees that the rights of the Holders and/or Beneficial Owners under the Additional Tier 1 Securities are subject to, and
will be varied, if necessary, solely to give effect to, the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution
Authority.

 

LLOYDS
BANKING GROUP PLC

$500,000,000 Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities

(Callable June 27, 2026 and Every Five Years Thereafter)

 

	No. 1	$500,000,000

 

CUSIP NO.
53944YAJ2

ISIN NO. US53944YAJ29

 

LLOYDS BANKING
GROUP PLC, a company incorporated in Scotland with registered number 095000 herein called the “Company”, which
term includes any successor Person under the Indenture hereinafter referred to, for value received, hereby promises to pay to
Cede & Co., or registered assigns, the principal sum of $500,000,000 (five hundred million U.S. dollars), if and to the extent
due, and to pay interest thereon, if any, in accordance with the terms hereof and the Indenture. The Additional Tier 1 Securities
shall have no fixed maturity or fixed redemption date. From (and including) the Issue Date to (but excluding) June 27, 2026 (the
“First Call Date”), the interest rate on the Additional Tier 1 Securities shall be 6.750% per annum. From and
including the First Call Date and each fifth anniversary date thereafter (each such date, a “Reset Date”),
to (but excluding) the next succeeding Reset Date, the interest will accrue on the Additional Tier 1 Securities at a rate per
annum calculated by the Calculation Agent on the Relevant Reset Determination Date as being equal to the sum of the applicable
U.S. Treasury Rate and 4.815% converted to a quarterly rate in accordance with market convention (rounded to three decimal places,
with 0.0005 rounded down). Subject to the provisions on the reverse of this Additional Tier 1 Security relating to cancellation
and

 

    2 

     

    

deemed cancellation of interest
and to ‎Section 2.03, ‎Section
2.04, ‎Section 2.15(h) and ‎Section
5.01 of the Third Supplemental Indenture and to the last sentence of this paragraph, interest, if any, shall be payable in quarterly
installments in arrears on March 27, June 27, September 27 and December 27 of each year (each, an “Interest Payment
Date”). The first date on which interest may be paid will be September 27, 2019 for the period commencing on (and including)
June 19, 2019 and ending (but excluding) September 27, 2019 (long first coupon).

 

“U.S.
Treasury Rate” means, with respect to any Reset Date from which such rate applies, the rate per annum equal to: (1)
the yield, under the heading which represents the average for the week immediately prior to the Reset Determination Date for such
Reset Date, appearing in the most recently published statistical release designated “H.15”, or any successor publication
that is published by the Board of Governors of the Federal Reserve System that establishes yields on actively traded U.S. Treasury
securities adjusted to constant maturity, under the caption “Treasury Constant Maturities”, for the maturity of five
years; or (2) if such release (or any successor release) is not published during the week immediately prior to the Reset Determination
Date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such Reset Date.

 

The U.S.
Treasury Rate shall be calculated by the Calculation Agent.

 

If the U.S.
Treasury Rate cannot be determined, for whatever reason, “U.S. Treasury Rate” shall mean the rate in percentage per
annum as notified by the Calculation Agent to the Company equal to the yield on U.S. Treasury securities having a maturity of
five years as set forth in the most recently published statistical release designated “H.15” under the caption “Treasury
Constant Maturities” (or any successor publication that is published weekly by the Board of Governors of the Federal Reserve
System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities” for the maturity of five years) at 5:00 p.m. (New York City time) on the last available
date preceding the Reset Determination Date on which such rate was set forth in such release (or any successor release).

 

“Comparable
Treasury Issue” means, with respect to any Reset Period, the U.S. Treasury security or securities selected by the Company
with a maturity date on or about the last day of such Reset Period and that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt securities denominated in U.S. dollars and
having a maturity of five years.

 

“Comparable
Treasury Price” means, with respect to any Reset Date, (i) the arithmetic average of the Reference Treasury Dealer Quotations
for such Reset Date (calculated on the Reset Determination Date for such Reset Date), after excluding the highest and lowest such
Reference Treasury Dealer Quotations, or (ii) if fewer than five such Reference Treasury Dealer Quotations are received, the arithmetic
average of all

 

    3 

     

    

such quotations, or (iii) if
fewer than two such Reference Treasury Dealer Quotations are received, then such Reference Treasury Dealer Quotation as quoted
in writing to the Calculation Agent by a Reference Treasury Dealer.

 

“Reference
Treasury Dealer” means each of up to five banks selected by the Company (following, where practicable, consultation
with the Calculation Agent), or the affiliates of such banks, which are (i) primary U.S. Treasury securities dealers, and their
respective successors, or (ii) market makers in pricing corporate bond issues denominated in U.S. dollars.

 

“Reference
Treasury Dealer Quotations” means with respect to each Reference Treasury Dealer and any Reset Date, the arithmetic
average, as determined by the Calculation Agent, of the bid and offered prices for the applicable Comparable Treasury Issue, expressed
in each case as a percentage of its principal amount, at 11:00 a.m. (New York City time), on the Reset Determination Date for
such Reset Date.

 

The interest,
if any, so payable, and paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to
the Person in whose name this Additional Tier 1 Security is registered at the close of business on the Record Date for such interest
which shall be the 5th calendar day preceding each Interest Payment Date, whether or not such day is a Business Day.

 

In addition
to any other restrictions on payments of principal and interest contained in this Third Supplemental Indenture, no repayment of
the principal amount of this Additional Tier 1 Security or payment of interest on this Additional Tier 1 Security shall become
due and payable after the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority unless, at the time that
such repayment or payment, respectively, is scheduled to become due, such repayment or payment would be permitted to be made by
the Company under the laws and regulations of the United Kingdom and the European Union applicable to the Company or other members
of the Group.

 

Interest
on the Additional Tier 1 Securities shall be due and payable only at the sole discretion of the Company, and the Company shall
have sole and absolute discretion at all times and for any reason to cancel (in whole or in part) any interest payment that would
otherwise be payable on any Interest Payment Date. If the Company elects not to make an interest payment in respect of the Additional
Tier 1 Securities on the relevant Interest Payment Date (or if the Company elects to make a payment of a portion, but not all,
of such interest payment), such non-payment shall evidence the Company’s exercise of its discretion to cancel such interest
payment (or the portion of such interest payment not paid), and accordingly such interest payment (or the portion thereof not
paid) shall not be or become due and payable.

 

Any interest
canceled or deemed canceled (in each case, in whole or in part) pursuant to this Additional Tier 1 Security shall not be due and
shall not accumulate or be payable at any time thereafter, and Holders and Beneficial Owners of the Additional Tier 1 Securities
shall have no right to or claim against the Company with respect to such interest amount. In addition, any such cancellation or
deemed cancellation shall not

 

    4 

     

    

constitute a default under this
Additional Tier 1 Security and Holders and Beneficial Owners of this Additional Tier 1 Security shall have no rights thereto or
to receive any additional interest or compensation as a result of such cancellation or deemed cancellation.

 

Without limitation
on the foregoing paragraph, the Company shall not make an interest payment in respect of the Additional Tier 1 Securities on any
Interest Payment Date (and such interest payment shall therefore be deemed to have been canceled and thus shall not be due and
payable on such Interest Payment Date) to the extent an amount of Distributable Items on any scheduled Interest Payment Date is
less than the sum of (a) all payments (other than redemption payments) made or declared by the Company since the end of
its last financial year and prior to such Interest Payment Date on or in respect of any Parity Securities, the Additional Tier
1 Securities and any Junior Securities and (b) all payments (other than redemption payments) payable by the Company on such Interest
Payment Date (i) on the Additional Tier 1 Securities and (ii) on or in respect of any Parity Securities or any Junior Securities,
in the case of each of (a) and (b), excluding any payments already accounted for (by way of deduction) in determining the Distributable
Items.

 

By its
acquisition of the Additional Tier 1 Securities, each Holder and each Beneficial Owner shall be deemed to have contracted and
agreed that (i) interest is payable solely at the discretion of the Company, and no amount of interest shall become due and
payable in respect of the relevant interest period to the extent that it has been (x) canceled (in whole or in part) by the
Company at the Company’s sole discretion and/or (y) deemed canceled (in whole or in part) pursuant to Section 2.04(a)
of the Third Supplemental Indenture, and (ii) a cancellation or deemed cancellation of interest (in each case, in whole or in
part) in accordance with the terms of the Indenture shall not constitute a default in payment or otherwise under the terms of
the Additional Tier 1 Securities or the Indenture.

 

Interest
on the Additional Tier 1 Securities shall only be due and payable on an Interest Payment Date to the extent it is not canceled
or deemed canceled under the terms of this Additional Tier 1 Security and ‎Section
2.03, ‎Section 2.04, ‎Section
2.15(h) and ‎Section 5.01 of the Third Supplemental Indenture.
Any interest canceled or deemed canceled (in each case, in whole or in part) in the circumstances described in this Additional
Tier 1 Security shall not be due and shall not accumulate or be payable at any time thereafter, and Holders and Beneficial Owners
of the Additional Tier 1 Securities shall have no rights thereto or to receive any additional interest or compensation as a result
of such cancellation or deemed cancellation of interest in respect of the Additional Tier 1 Securities.

 

Payments
of principal of and interest, if any, on the Additional Tier 1 Securities shall be made in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private debts and such payments shall be
made through one or more Paying Agents appointed under the Capital Securities Indenture to the Holder of this Additional Tier
1 Security. Initially, the Paying Agent and the Security Registrar for the Additional Tier 1 Securities shall be The Bank of New

 

    5 

     

    

York Mellon, London Branch, One
Canada Square, London E14 5AL, United Kingdom. The Company may change the Paying Agent without prior notice to the Holders of
the Additional Tier 1 Securities, and in such an event the Company may act as Paying Agent or Capital Securities Registrar. Payments
of principal, interest and other amounts in respect of on the Additional Tier 1 Securities shall be made by wire transfer of immediately
available funds; provided, however, that in the case of payments of principal, this Additional Tier 1 Security is
first surrendered to the Paying Agent.

 

This Additional
Tier 1 Security shall be governed by and construed in accordance with the laws of the State of New York, irrespective of conflicts
of laws principles, except as stated in Section 1.12 of the Capital Securities Indenture and in ‎Section
5.01 and ‎Section 5.02 of the of the Third Supplemental Indenture,
and except that the authorization and execution of this Additional Tier 1 Security shall be governed by (in addition to the laws
of the State of New York relevant to execution) the respective jurisdictions of the Company and the Trustee, as the case may be.

 

Reference
is hereby made to the further provisions of this Additional Tier 1 Security set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place.

 

All terms
used in this Additional Tier 1 Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture,
as defined herein.

 

THIS SECURITY
IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY
OF THE UNITED STATES OR THE UNITED KINGDOM.

 

Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof, directly or through an
Authenticating Agent, by manual signature of an authorized signatory, this Additional Tier 1 Security shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose.

 

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

 

Date:

 

	LLOYDS BANKING GROUP PLC
	 
	 
	By:	 
	 	Name:
	 	Title:

  

 

    6 

     

    

Trustee’s
Certificate of Authentication

 

This is one
of the Additional Tier 1 Securities of the series designated herein referred to in the Indenture.

 

Date:

 

	THE BANK OF NEW YORK MELLON, acting through its London
    Branch

    as Trustee
	 
	 
	By:	 
	 	Authorized Signatory

 

Signature
Page to Global Note

(Reverse of Security)

 

This Additional
Tier 1 Security is one of a duly authorized issue of securities of the Company (herein called the “Additional Tier 1
Securities” and each, an “Additional Tier 1 Security”) issued and to be issued in one or more series
under and governed by the Capital Securities Indenture, dated as of March 6, 2014 (herein called the “Capital Securities
Indenture”), between the Company and The Bank of New York Mellon, London Branch, as Trustee (herein called the “Trustee,”
which term includes any successor trustee under the Capital Securities Indenture), as supplemented and amended by the Third Supplemental
Indenture, dated as of June 19, 2019, (the “Third Supplemental Indenture” and, together with the Capital Securities
Indenture, the “Indenture”), and reference is hereby made to the Indenture, the terms of which are incorporated
herein by reference, for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Company, the Trustee, the Holders of the Additional Tier 1 Securities and of the terms upon which the Additional Tier 1 Securities
are, and are to be, authenticated and delivered. Insofar as the provisions of the Indenture may conflict with the provisions set
forth in this Additional Tier 1 Security, the former shall control for purposes of this Additional Tier 1 Security.

 

This Additional
Tier 1 Security is one of the series designated on the face hereof, limited to a principal amount of $500,000,000, which amount
may be increased at the option of the Company if in the future it determines that it may wish to sell additional Securities of
this series. References herein to “this series” mean the series designated on the face hereof.

 

All payments
of principal and/or interest and/or any other amounts to Holders by or on behalf of the Company in respect of the Additional Tier
1 Securities shall be made without withholding or deduction for or on account of any present or future tax, duty, assessment or
governmental charge of whatsoever nature imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom
or any authority thereof or therein having power to tax, unless such withholding or deduction is required by law. In that event,
the Company shall pay, to the extent it has sufficient Distributable Items, such

 

    7 

     

    

additional amounts in respect
of payments of interest (but not in respect of payments of principal or any other amounts) (“Additional Amounts”)
as will result (after such withholding or deduction) in receipt by the Holders of the sums of interest which would have been receivable
(in the absence of such withholding or deduction) by them in respect of their Additional Tier 1 Securities; except that no such
Additional Amounts shall be payable with respect to any Additional Tier 1 Security in accordance with Section 10.04 of the Capital
Securities Indenture.

 

Payments
under the Additional Tier 1 Securities will be subject in all cases to any applicable fiscal or other laws and regulations in
the place of payment or other laws and regulations to which the Company or its Paying Agents agree to be subject and the Company
will not, save as provided under Section 10.04 of the Capital Securities Indenture, be liable for any taxes or duties of whatever
nature imposed or levied by such laws, regulations or agreements. No commission or expenses shall be charged to the Holders in
respect of such payments.

 

Subject to
the limitations specified below, the Company may, at the Company’s option, redeem the Additional Tier 1 Securities, in whole
but not in part, on the First Call Date or on any Reset Date thereafter at a redemption price equal to 100% of the principal amount
of the Additional Tier 1 Securities then outstanding, together with any Accrued Interest, excluding any interest which has been
canceled or deemed to be canceled as described under ‎Section
2.05 of the Third Supplemental Indenture.

 

Subject to
the limitations specified below, the Company may, at the Company’s option, redeem the Additional Tier 1 Securities, in whole
but not in part at a redemption price equal to 100% of the principal amount of the Additional Tier 1 Securities then outstanding,
together with any Accrued Interest to (but excluding) the date fixed for redemption, if at any time the Company determines that
as a result of a change (which the Relevant Regulator considers to be sufficiently certain) to the regulatory classification of
the Additional Tier 1 Securities under the Applicable Regulations, in any such case becoming effective on or after the Issue Date,
some or all of the outstanding Additional Tier 1 Securities ceases to be included in, or count towards, the Tier 1 Capital (howsoever
defined in the Applicable Regulations) of the Group (a “Regulatory Event”).

 

Subject to
the limitations specified below, the Company may, at the Company’s option, redeem the Additional Tier 1 Securities, in whole
but not in part, at a redemption price equal to 100% of the principal amount of the Additional Tier 1 Securities then outstanding,
together with any Accrued Interest to (but excluding) the date fixed for redemption, if at any time the Company (i) determines
that as a result of a change in, or amendment to, the laws or regulations of the United Kingdom, or any political subdivision
or authority therein or thereof, having the power to tax, including any treaty to which the United Kingdom is a party, or any
change in any generally published application or interpretation of such laws, including a decision of any court or tribunal, or
any change in the generally published application or interpretation of such laws by any relevant tax authority or any generally
published pronouncement by any tax authority, which change, amendment or pronouncement (x) (subject to (y)) becomes effective
on or

 

    8 

     

    

after the Issue Date, or (y)
in the case of a change in law, if such change is enacted by United Kingdom Act of Parliament or implemented by statutory instrument,
on or after the Issue Date (a “Tax Law Change”), the Company has paid or will or would on the next payment
date be required to pay Additional Amounts to any Holder of the Additional Tier 1 Securities; and/or (ii) a Tax Law Change would
(a) result in the Company not being entitled to claim a deduction in respect of any payments (or its corresponding funding costs
are recognized in its financial statements) in respect of the Additional Tier 1 Securities in computing the Company’s taxation
liabilities or the amount or value of such deduction to the Company would be materially reduced, (b) prevent the Additional Tier
1 Securities from being treated as loan relationships for United Kingdom tax purposes, (c) as a result of the Additional Tier
1 Securities being in issue, result in the Company not being able to have losses or deductions set against the profits or gains,
or profits or gains offset by the losses or deductions, of companies with which it is or would otherwise be so grouped for applicable
United Kingdom tax purposes (whether under the group relief system current as at the date of issue of the Additional Tier 1 Securities
or any similar system or systems having like effect as may from time to time exist), (d) result in a United Kingdom tax liability,
or the receipt of income or profit which would be subject to United Kingdom tax, in respect of a write-down of the principal amount
of the Additional Tier 1 Securities or the conversion of the Additional Tier 1 Securities into Settlement Shares (including, pursuant
to the terms and conditions of the Additional Tier 1 Securities or as a result of the exercise of any regulatory powers under
the Banking Act 2009), or (e) result in an Additional Tier 1 Security or any part thereof being treated as a derivative or an
embedded derivative for United Kingdom tax purposes (each such change (or deemed change) in tax law or regulation or the official
application or interpretation thereof, a “Tax Event”); provided, however, in each case that the Company could
not avoid the consequences of the Tax Event by taking measures reasonably available to it.

 

Upon the
occurrence of a Tax Event or a Regulatory Event, the Company may, subject to ‎Section
2.12 and ‎Section 2.14 of the Third Supplemental Indenture,
but without any requirement for the consent or approval of the Holders of the Additional Tier 1 Securities, at any time (whether
before, on or following the First Call Date) either substitute all (but not some only) of the Additional Tier 1 Securities for,
or vary the terms of the Additional Tier 1 Securities so that they remain or, as appropriate, become, Compliant Securities, and
the Trustee shall (subject to ‎Section 2.12 and ‎Section
2.14 of the Third Supplemental Indenture) agree to such substitution or variation. Upon the expiry of such notice, the Company
shall either vary the terms of or substitute the Additional Tier 1 Securities, as the case may be.

 

Any interest
payments that have been canceled or deemed canceled pursuant to the terms of this Additional Tier 1 Security and the Indenture
shall not be payable if the Additional Tier 1 Securities are redeemed pursuant to any of the three preceding paragraphs.

 

Before the
Company may redeem, substitute or vary the Additional Tier 1 Securities pursuant to any of the preceding paragraphs relating to
the Company’s rights of redemption, substitution or variation, the Company shall deliver to DTC as the Holder

 

    9 

     

    

of the Global Securities (or,
if the Additional Tier 1 Securities are in definitive form, to the Holders at their addresses shown on the Capital Securities
Register) prior notice of not less than thirty (30) days, nor more than sixty (60) days to the Holders of the Additional Tier
1 Securities. The Company shall deliver written notice of such redemption, substitution or variation of the Additional Tier 1
Securities to the Trustee at least five (5) Business Days prior to the date on which the relevant notice of redemption, substitution
or variation is sent to Holders (unless a shorter notice period shall be satisfactory to the Trustee) and shall, except as otherwise
provided herein, be irrevocable.

 

Such notice
shall specify the Company’s election to redeem, substitute or vary the Additional Tier 1 Securities, as the case may be,
and the date fixed for such redemption, substitution or variation, as the case may be, and shall be irrevocable except in the
limited circumstances described below.

 

Any notice
of redemption shall state (i) the redemption date, (ii) that on the redemption date the redemption price will, subject to the
satisfaction of the conditions set forth in the Indenture, become due and payable upon each Additional Tier 1 Security being redeemed
and that, subject to certain exceptions, interest will cease to accrue on or after that date, (iii) the place or places where
the Additional Tier 1 Securities are to be surrendered for payment of the redemption price, and (iv) the CUSIP, Common Code and/or
ISIN number or numbers, if any, with respect to the Additional Tier 1 Securities being redeemed.

 

In addition,
if the Company has elected to redeem, substitute or vary the Additional Tier 1 Securities and:

 

(i)           
(in the case of redemption only) the Solvency Condition is not (or, if payment were made, would not be) satisfied in respect
of the relevant payment on the date scheduled for redemption; or

 

(ii)           
(in any case) prior to the redemption, substitution or variation a Trigger Event occurs,

 

the relevant
notice of redemption, substitution or variation (as the case may be) shall be automatically rescinded and shall be of no force
and effect, no such redemption, substitution or variation shall occur and the Company shall give notice thereof to the Holders
and to the Trustee as soon as reasonably practicable (but failure to give such notice shall not constitute a default for any purpose
nor shall it affect the rescission of the original notice of redemption, substitution or variation (as the case may be)). Further,
no notice of redemption, substitution or variation shall be given following a determination that a Trigger Event has occurred.

 

If the Company
has delivered a notice of redemption, but the Solvency Condition is not satisfied immediately prior to, and immediately following,
the date specified for redemption in such notice, such redemption notice shall be automatically rescinded and shall be of no force
and effect, and no payment in respect of the redemption amount shall be due and payable.

 

    10 

     

    

If the Company
has delivered a notice of redemption, but prior to the payment of the redemption amount with respect to such redemption a Conversion
Trigger Notice has been delivered, such redemption notice shall be automatically rescinded and shall be of no force and effect,
no payment in respect of the redemption amount shall be due and payable, and, pursuant to the terms of this Additional Tier 1
Security and the Indenture, the Automatic Conversion shall occur after such Trigger Event.

 

If the Company
has delivered a notice of redemption, but prior to the date of any such redemption the Company has not given notice to the Relevant
Regulator and/or the Relevant Regulator has not granted permission to the Company to redeem the relevant Additional Tier 1 Securities
(in each case to the extent, and in the manner, required by the relevant Applicable Regulations), such notice of redemption shall
be automatically rescinded and shall be of no force and effect and no payment in respect of any redemption amount, if applicable,
shall be due and payable.

 

If the Company
has delivered a notice of redemption but in respect of any redemption proposed to be made
prior to the fifth anniversary of the Issue Date, if and to the extent then required under the Applicable Regulations (A) in the
case of redemption following the occurrence of a Tax Event, the Company has not demonstrated to the satisfaction of the Relevant
Regulator that the relevant change or event is material and was not reasonably foreseeable by the Company as at the Issue Date,
or (B) in the case of redemption following the occurrence of a Regulatory Event, the Company has not demonstrated to the satisfaction
of the Relevant Regulator that the relevant change was not reasonably foreseeable by the Company as at the Issue Date; such
notice of redemption shall be automatically rescinded and shall be of no force and effect and no payment in respect of any redemption
amount, if applicable, shall be due and payable.

 

If the Company
has delivered a notice of redemption but prior to the payment of the redemption amount with respect to such redemption the Company
is not in compliance with any alternative or additional pre-conditions set out in the relevant Applicable Regulations for the
time being, such notice of redemption shall be automatically rescinded and shall be of no force and effect, no payment in respect
of the redemption amount shall be due and payable.

 

If any of
the events specified in each of the preceding five paragraphs occurs, the Company shall promptly deliver notice to DTC as the
Holder of the Global Securities (or, if the Additional Tier 1 Securities are definitive Securities, to the Holders at their addresses
shown on the Capital Securities Register) and to the Trustee directly, specifying the occurrence of the relevant event.

 

Prior to
the giving of any notice of redemption in connection with a Tax Event or a Regulatory Event, the Company shall deliver to the
Trustee an Officer’s Certificate stating that a Tax Event or a Regulatory Event, as applicable, has occurred and setting
out the details thereof. The Trustee is entitled to conclusively rely on and accept such Officer’s Certificate without any
duty whatsoever of further inquiry, in which event such Officer’s Certificate shall be conclusive and binding on the Trustee,
the Holders and the Beneficial Owners.

 

    11 

     

    

Any redemption,
purchase, substitution or variation, other than a purchase in the ordinary course of business dealing in securities, of the Additional
Tier 1 Securities by or on behalf of the Company or its subsidiaries, is subject to (i) the Company giving notice to the Relevant
Regulator, and the Relevant Regulator granting permission to, the Company to redeem, purchase, substitute or vary the terms of
the relevant Additional Tier 1 Securities, as the case may be (in each case to the extent, and in the manner, required by the
relevant Applicable Regulations); (ii) in the case of any redemption or purchase, if and to the extent then required under the
then-prevailing Applicable Regulations, either: (A) the Company having replaced the Additional Tier 1 Securities with own funds
instruments of equal or higher quality at terms that are sustainable for the income capacity of the Company; or (B) the Company
having demonstrated to the satisfaction of the Relevant Regulator that the own funds and eligible liabilities of the Company would,
following such redemption or purchase, exceed its minimum capital requirements (including any capital buffer requirements) by
a margin that the Relevant Regulator considers necessary at such time; (iii) in respect of any redemption proposed to be made
prior to the fifth anniversary of the Issue Date, if and to the extent then required under the Applicable Regulations (A) in the
case of redemption following the occurrence of a Tax Event, the Company having demonstrated to the satisfaction of the Relevant
Regulator that the relevant change or event is material and was not reasonably foreseeable by the Company as at the Issue Date
or (B) in the case of redemption following the occurrence of a Regulatory Event, the Company having demonstrated to the satisfaction
of the Relevant Regulator that the relevant change was not reasonably foreseeable by the Company as at the Issue Date; (iv) in
the case of any redemption or purchase, the satisfaction of the Solvency Condition both immediately prior to and immediately following
the redemption or purchase date; (v) a Trigger Event not having occurred; and (vi) in the case of any substitution or variation,
such substitution or variation being effected in compliance with applicable regulatory and legal requirements, including the U.S.
Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”). Subject to applicable law in force at
the relevant time, including the Applicable Regulations and U.S. federal securities law, the Company or any of its subsidiaries
may, directly or indirectly, purchase the Additional Tier 1 Securities at any price in the open market, by tender or by private
agreement. Any Additional Tier 1 Securities purchased beneficially by the Company for the account of the Company and any of its
subsidiaries (other than in connection with dealing in securities) will be treated as canceled and will no longer be issued and
outstanding.

 

If a Trigger
Event has occurred, then the Automatic Conversion shall occur on the Conversion Date and all of the Company’s obligations
under the Additional Tier 1 Securities shall be irrevocably and automatically released on the Conversion Date in consideration
of the Company’s issuance and delivery of the Settlement Shares to the Settlement Share Depository, and the principal amount
of the Additional Tier 1 Securities shall equal zero at all times thereafter (for the avoidance of doubt, the Tradable Amount
shall remain unchanged as a result of the Automatic Conversion). Under no circumstances shall such released obligations be reinstated.
If the Company has been unable to appoint a Settlement Share Depository, it shall effect, by means it deems reasonable in the
circumstances (including, without limitation, issuance of the Settlement Shares to another independent nominee or to the Holders
of the Additional Tier 1

 

    12 

     

    

Securities directly), the issuance
and delivery of the Settlement Shares or of the Alternative Consideration, as applicable, to the Holders of the Additional Tier
1 Securities, and such issuance and delivery shall be in consideration for the irrevocable and automatic release of all of the
Company’s obligations under the Additional Tier 1 Securities as if the Settlement Shares had been issued and delivered to
the Settlement Share Depository and, in which case, where the context so admits, references in the Third Supplemental Indenture
and in this Additional Tier 1 Security to the issue and delivery of Settlement Shares to the Settlement Share Depository shall
be construed accordingly and apply mutatis mutandis.

 

The procedures
set forth in this Additional Tier 1 Security and ‎Section
2.15 of the Third Supplemental Indenture are subject to change to reflect changes in DTC practices, and the Company may make changes
to the procedures set forth in ‎Section 2.15 of the Third
Supplemental Indenture to the extent reasonably necessary, in the opinion of the Company, to reflect such changes in DTC practices.
Any such changes shall be subject to the provisions of Section 8.01 of the Third Supplemental Indenture.

 

Notwithstanding
anything to the contrary contained in the Indenture or this Additional Tier 1 Security, once the Company has delivered a Conversion
Trigger Notice following the occurrence of a Trigger Event, (i) subject to the right of Holders and Beneficial Owners pursuant
to‎Section 4.03 in the event of a failure by the Company to
issue and deliver any Settlement Shares to the Settlement Share Depository on the Conversion Date, the Indenture shall impose
no duties upon the Trustee whatsoever with regard to an Automatic Conversion upon a Trigger Event and the Holders and Beneficial
Owners shall have no rights whatsoever under the Indenture or the Additional Tier 1 Securities to instruct the Trustee to take
any action whatsoever, and (ii) as of the date of the Conversion Trigger Notice, except for any indemnity and/or security provided
by any Holder or by any Beneficial Owner in such direction or related to such direction, any direction previously given to the
Trustee by any Holder or by any Beneficial Owner shall cease automatically and shall be null and void and of no further effect;
except in each case of (i) and (ii) of this paragraph, with respect to any rights of Holders or Beneficial Owners with respect
to any payments under the Additional Tier 1 Securities that were unconditionally due and payable prior to the date of the Conversion
Trigger Notice or unless the Trustee is instructed in writing by the Company to act otherwise.

 

All authority
conferred or agreed to be conferred by each Holder and Beneficial Owner pursuant to this Additional Tier 1 Security, including
the consents given by such Holder and Beneficial Owner, shall be binding upon the successors, assigns, heirs, executors, administrators,
trustees in bankruptcy and legal representatives of such Holder and Beneficial Owner.

 

The Trustee
shall not be liable with respect to (i) the calculation or accuracy of the CET1 Ratio in connection with the occurrence of a Trigger
Event and the timing of such Trigger Event, (ii) the failure of the Company to post or deliver the underlying CET1 Ratio calculations
of a Trigger Event to DTC, the Holders or the Beneficial Owners, (iii) any aspect of the Company’s decision to deliver a
Conversion Trigger

 

    13 

     

    

Notice or the related Automatic
Conversion, (iv) the adequacy of the disclosure of these provisions in the Prospectus or any other offering material in respect
of the Additional Tier 1 Securities or for the direct or indirect consequences thereof, or (v) any other requirement of the Company
contained herein related to a Trigger Event or the Automatic Conversion.

 

Following
the issuance and delivery of the Settlement Shares to the Settlement Share Depository (or to the relevant recipient in accordance
with the terms of the Additional Tier 1 Securities) on the Conversion Date, this Additional Tier 1 Security shall remain in existence
until the applicable Cancellation Date for the sole purpose of evidencing the Holders’ and Beneficial Owners’ right
to receive Settlement Shares, ADSs or Alternative Consideration, as the case may be, from the Settlement Share Depository (or
such other relevant recipient, as applicable).

 

The Holders
and Beneficial Owners shall not at any time have the option to convert the Additional Tier 1 Securities into Settlement Shares.

 

The occurrence
of the Automatic Conversion shall not constitute an Enforcement Event.

 

Notwithstanding
any other provision herein, by its acquisition of the Additional Tier 1 Securities, each Holder and each Beneficial Owner shall
be deemed to have (i) agreed to all of the terms and conditions of the Additional Tier 1 Securities, including, without limitation,
to those related to (x) Automatic Conversion of its Additional Tier 1 Securities following a Trigger Event and (y) the appointment
of the Settlement Share Depository, the issuance of the Settlement Shares to the Settlement Share Depository (or to the relevant
recipient in accordance with the terms of this Third Supplemental Indenture or the Additional Tier 1 Securities) and the potential
sale of the Settlement Shares pursuant to a Settlement Shares Offer and acknowledged that such events in (x) and (y) may occur
without any further action on the part of such Holders or Beneficial Owners or the Trustee, (ii) agreed that effective upon, and
following, the occurrence of the Automatic Conversion, no amount shall be due and payable to the Holders or the Beneficial Owners
under the Additional Tier 1 Securities and the liability of the Company to pay any such amounts (including the principal amount
of, or any interest in respect of, the Additional Tier 1 Securities) shall be automatically released, and the Holders and the
Beneficial Owners shall not have the right to give any direction to the Trustee with respect to the Trigger Event and any related
Automatic Conversion, (iii) waived, to the extent permitted by the Trust Indenture Act, any claim against the Trustee arising
out of its acceptance of its trusteeship under, and the performance of its duties, powers and rights in respect of, the Indenture
and in connection with the Additional Tier 1 Securities, including, without limitation, claims related to or arising out of or
in connection with a Trigger Event and/or any Automatic Conversion, and (iv) authorized, directed and requested DTC and/or any
direct participant in DTC or other intermediary through which it holds such Additional Tier 1 Securities to take any and all necessary
action, if required, to implement the Automatic Conversion without any further action or direction on the part of such Holder
or Beneficial Owner or the Trustee.

 

    14 

     

    

The Conversion
Price shall be subject to adjustment as provided in Article III of the Third Supplemental Indenture.

 

Within ten
(10) Business Days following the Conversion Date, the Company may, in its sole and absolute discretion, elect that the Settlement
Share Depository (or an agent on its behalf) make an offer of, in the Company’s sole and absolute discretion, all or some
of the Settlement Shares to, at the Company’s sole and absolute discretion, all or some of the Shareholders upon Automatic
Conversion, such offer to be at a cash price per Settlement Share that will be no less than the Conversion Price (translated from
U.S. dollars into pounds sterling at the then-prevailing rate as determined by the Company in its sole discretion), subject as
provided in ‎Section 2.17 of the Third Supplemental Indenture
(the “Settlement Shares Offer”).

 

If the Company
elects, in its sole and absolute discretion, that a Settlement Shares Offer be conducted by the Settlement Share Depository, each
Holder or Beneficial Owner, by its acquisition of the Additional Tier 1 Securities, shall be deemed to have: (i) irrevocably consented
to any Settlement Shares Offer and, notwithstanding that such Settlement Shares are held by the Settlement Share Depository on
behalf of Holders and Beneficial Owners, to the Settlement Share Depository using the Settlement Shares delivered to it to settle
any Settlement Shares Offer, (ii) irrevocably consented to the transfer of the beneficial interest it holds in the Settlement
Shares delivered upon Automatic Conversion to the Settlement Share Depository or to one or more purchasers identified by the Settlement
Share Depository in connection with the Settlement Shares Offer in accordance with the terms of the Additional Tier 1 Securities,
(iii) irrevocably agreed that the Company and the Settlement Share Depository may take any and all actions necessary to conduct
the Settlement Shares Offer in accordance with the terms of the Additional Tier 1 Securities, (iv) irrevocably agreed that none
of the Company, the Trustee or the Settlement Share Depository shall, to the extent permitted by applicable law, incur any liability
to the Holders or Beneficial Owners in respect of the Settlement Shares Offer (except for the obligations of the Settlement Share
Depository in respect of the Holders’ and Beneficial Owners’ entitlement to, and subsequent delivery of, any Alternative
Consideration) and (v) authorized, directed and required DTC and/or any direct participant in DTC or other intermediary through
which it holds the Additional Tier 1 Securities to take any and all necessary action to implement the Automatic Conversion (including,
without limitation, any Settlement Shares Offer).

 

Notwithstanding
any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial Owner of this Additional
Tier 1 Security, by purchasing or acquiring the Additional Tier 1 Securities, each Holder (including each Beneficial Owner) of
the Additional Tier 1 Securities acknowledges, accepts, agrees to be bound by and consents to the exercise of any U.K. Bail-in
Power by the Relevant U.K. Resolution Authority that may result in (i) the reduction or cancellation of all, or a portion, of
the principal amount of, or interest on, the Additional Tier 1 Securities; (ii) the conversion of all, or a portion, of the principal
amount of, or interest on, the Additional Tier 1 Securities into shares or other securities or other obligations of the Company
or another person; and/or (iii) the amendment or alteration of the maturity of the Additional Tier 1 Securities, or amendment
of the amount of interest due on the Additional Tier 1

 

    15 

     

    

Securities, or the dates on which
interest becomes payable, including by suspending payment for a temporary period; any U.K. Bail-in Power may be exercised by means
of variation of the terms of the Additional Tier 1 Securities solely to give effect to the exercise by the Relevant U.K. Resolution
Authority of such U.K. Bail-in Power. With respect to (i), (ii) and (iii) above, references to principal and interest shall include
payments of principal and interest that have become due and payable, but which have not been paid, prior to the exercise of any
U.K. Bail-in Power. Each Holder and each Beneficial Owner of the Additional Tier 1 Securities further acknowledges and agrees
that the rights of the Holders and/or Beneficial Owners under the Additional Tier 1 Securities are subject to, and will be varied,
if necessary, solely to give effect to, the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority.

 

By its acquisition
of the Additional Tier 1 Securities, each Holder and Beneficial Owner (i) acknowledges and agrees that no exercise of the U.K.
Bail-in Power by the Relevant U.K. Resolution Authority with respect to the Additional Tier 1 Securities or cancellation or deemed
cancellation of interest pursuant to the Third Supplemental Indenture and the terms of this Additional Tier 1 Security shall give
rise to a default for purposes of Section 315(b) (Notice of Default) and Section 315(c) (Duties of the Trustee in Case
of Default) of the Trust Indenture Act, (ii) to the extent permitted by the Trust Indenture Act, waives any and all claims
against the Trustee for, agrees not to initiate a suit against the Trustee in respect of, and agrees that the Trustee shall not
be liable for, any action that the Trustee takes, or abstains from taking, in either case in accordance with the exercise of the
U.K. Bail-in Power by the Relevant U.K. Resolution Authority with respect to the Additional Tier 1 Securities, (iii) acknowledges
and agrees that, (a) upon the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority, the Trustee shall
not be required to take any further directions from Holders or Beneficial Owners of the Additional Tier 1 Securities under Section
5.12 of the Capital Securities Indenture and (b) the Indenture shall impose no duties upon the Trustee whatsoever with respect
to the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority. Notwithstanding the foregoing in (iii), if,
following the completion of the exercise of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority, the Additional Tier
1 Securities remain outstanding (for example, if the exercise of the U.K. Bail-in Power results in only a partial write-down of
the principal of the Additional Tier 1 Securities) then the Trustee’s duties under the Indenture shall remain applicable
with respect to the Additional Tier 1 Securities following such completion to the extent that the Company and the Trustee agree
pursuant to a supplemental indenture, unless the Company and the Trustee agree that a supplemental indenture is not necessary,
and (iv) shall be deemed to have (a) consented to the exercise of any U.K. Bail-in Power as it may be imposed without any prior
notice by the Relevant U.K. Resolution Authority of its decision to exercise such power with respect to the Additional Tier 1
Securities and (b) authorized, directed and requested DTC and/or any direct participant in DTC or other intermediary through which
it holds such Additional Tier 1 Securities to take any and all necessary action, if required, to implement the exercise of any
U.K. Bail-in Power with respect to the Additional Tier 1 Securities as it may be imposed, without any further action or direction
on the part of such Holder and such Beneficial Owner or the Trustee.

 

    16 

     

    

Each Holder
or Beneficial Owner that acquires its Additional Tier 1 Securities in the secondary market shall be deemed to acknowledge and
agree to be bound by and consent to the same provisions specified in the Indenture to the same extent as the Holders and Beneficial
Owners of the Additional Tier 1 Securities that acquire the Additional Tier 1 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 Additional
Tier 1 Securities, including in relation to interest cancellation, the Automatic Conversion, the U.K. Bail-in Power, the Settlement
Shares Offer, and the limitations on remedies specified in this Additional Tier 1 Security and ‎Section
4.04 of the Third Supplemental Indenture.

 

No repayment
of principal following any proposed redemption of the Additional Tier 1 Securities or payment of interest on the Additional Tier
1 Securities shall become due and payable after the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority
unless, at the time that such repayment or payment, respectively is scheduled to become due, such repayment or payment would be
permitted to be made by the Company under the laws and regulations of the United Kingdom and the European Union applicable to
the Company or other members of the Group.

 

Upon the
exercise of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority with respect to the Additional Tier 1 Securities,
the Company shall provide a written notice to DTC as soon as practicable regarding such exercise of the U.K. Bail-in Power for
purposes of notifying Holders and Beneficial Owners of such occurrence. The Company shall also deliver a copy of such notice to
the Trustee for information purposes only.

 

The Company’s
obligations to indemnify the Trustee in accordance with Section 6.07 of the Capital Securities Indenture shall survive any exercise
of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority with respect to the Additional Tier 1 Securities and any Automatic
Conversion.

 

The exercise
of the U.K. Bail-in Power by the Relevant U.K. Resolution Authority with respect to the Additional Tier 1 Securities shall not
constitute an Enforcement Event.

 

A “Winding-up
or Administration Event” shall result if (i) an order is made, or an effective resolution is passed, for the winding-up
of the Company (except in each such case, a solvent winding-up solely for the purposes of a reorganization, reconstruction or
amalgamation of the Company or the substitution in place of the Company of a successor in the business of the Company, the terms
of which (i) have previously been approved in writing by Holders of not less than 2/3 (two thirds) in aggregate principal amount
of the Additional Tier 1 Securities and (ii) do not provide that the Additional Tier 1 Securities shall thereby become redeemable
or repayable in accordance with their terms); or (ii) an administrator of the Company is appointed and such administrator declares,
or gives notice that it intends to declare and distribute a dividend.

 

    17 

     

    

If a Winding-up
or Administration Event occurs prior to the occurrence of a Trigger Event, subject to the subordination provisions of Article
5 of the Third Supplemental Indenture, the principal amount of the Additional Tier 1 Securities shall become immediately due and
payable, without the need of any further action on the part of the Trustee, the Holders or any other Person, including the declaration
by the Trustee, the Holders or any other Person that the principal amount of the Additional Tier 1 Securities has become immediately
due and payable.

 

Subject to
‎Section 2.12 of the Third Supplemental Indenture, if the
Company fails to pay any amount of principal in respect of the Additional Tier 1 Securities and such non-payment is not remedied
within a period of seven (7) calendar days or more after the date on which such payment is due (a “Non-Payment Event”),
the Trustee may, on behalf of the Holders and Beneficial Owners, at its discretion, or shall at the direction of Holders of 25%
of the aggregate principal amount of outstanding Additional Tier 1 Securities, subject to any applicable laws, institute proceedings
for the winding up of the Company. In the event of a winding-up or liquidation of the Company (whether or not instituted by the
Trustee) the Trustee may prove the claims of the Holders, Beneficial Owners and the Trustee in the winding-up proceeding of the
Company and/or claim in the liquidation of the Company, such claims as are set out in ‎Section
5.01(c) and ‎Section 5.01(d) of the Third Supplemental Indenture.
For the avoidance of doubt, the Trustee may not declare the principal amount of any outstanding Additional Tier 1 Securities to
be due and payable and may not pursue any other legal remedy, including a judicial proceeding for the collection of the sums due
and unpaid on the Additional Tier 1 Securities.

 

In the event
of a breach of any term, obligation or condition binding upon the Company under the Additional Tier 1 Securities or the Indenture
(other than any payment obligation of the Company under or arising from the Additional Tier 1 Securities or the Indenture, including
payment of any principal or interest, including any damages awarded for breach of any obligations) (such obligation, a “Performance
Obligation”), the Trustee may without further notice institute such proceedings against the Company as it may deem fit
to enforce the Performance Obligation, provided that the Company shall not by virtue of the institution of any such proceedings
be obliged to pay any sum or sums, in cash or otherwise (including any damages) earlier than the same would otherwise have been
payable under the Additional Tier 1 Securities or the Indenture. For the avoidance of doubt, the breach by the Company of any
Performance Obligation shall not confer upon the Trustee (acting on behalf of the Holders) and/or the Holders or Beneficial Owners
of the Additional Tier 1 Securities any claim for damages and, in the event of such a breach of a Performance Obligation, the
sole and exclusive remedy that the Trustee (acting on behalf of the Holders) and/or the Holders or Beneficial Owners of the Additional
Tier 1 Securities may seek under the Additional Tier 1 Securities and the Indenture is specific performance under the laws of
the State of New York. By its acquisition of the Additional Tier 1 Securities, each Holder and Beneficial Owner of the Additional
Tier 1 Securities acknowledges and agrees (i) that such Holder and Beneficial Owner shall not seek, and shall not direct the Trustee
(acting on their behalf) to seek, any claim for damages against the Company in respect of any breach by the Company of a Performance
Obligation, and (ii) that the sole and exclusive remedy that such Holder and Beneficial Owner and/or the Trustee (acting on their
behalf) may seek under the

 

    18 

     

    

Additional Tier 1 Securities
and the Indenture for a breach by the Company of a Performance Obligation is specific performance under the laws of the State
of New York.

 

Other than
the limited remedies specified in this Additional Tier 1 Security and Article IV of the Third Supplemental Indenture, and subject
to the second paragraph below, no remedy against the Company shall be available to the Trustee (acting on behalf of the Holders)
or the Holders and Beneficial Owners, whether for the recovery of amounts owing in respect of such Additional Tier 1 Securities
or under the Indenture, or in respect of any breach by the Company of any of the Company’s obligations under or in respect
of the terms of such Additional Tier 1 Securities or under the Indenture in relation thereto; provided, however,
that the Company’s obligations to the Trustee under, and the Trustee’s lien provided for in, Section 6.07 of the Capital
Securities Indenture and the Trustee’s rights to have money collected applied first to pay amounts due to it under such
Section pursuant to Section 5.06 of the Capital Securities Indenture shall not be limited or impaired by Article IV of the Third
Supplemental Indenture or otherwise and expressly survive any Enforcement Event and are not subject to the subordination ‎provisions
of ‎‎Section 5.01 and the waiver of set-off provisions
of ‎‎Section 5.02 of the Third Supplemental Indenture.

 

For purposes
of the Capital Securities Indenture, “Event of Default” shall mean an “Enforcement Event” as defined in
this Third Supplemental Indenture, except that the term “Event of Default” as used in Article 8 of the Capital Securities
Indenture shall mean “Winding-up or Administration Event.”

 

Notwithstanding
the limitations on remedies specified in this Additional Tier 1 Security and under Article IV of the Third Supplemental Indenture,
(1) the Trustee shall have such powers as are required to be authorized to it under the Trust Indenture Act in respect of the
rights of the Holders and Beneficial Owners of the Additional Tier 1 Securities under the provisions of the Indenture, and (2)
nothing shall impair the right of a Holder or Beneficial Owner of the Additional Tier 1 Securities under the Trust Indenture Act,
absent such Holder’s or Beneficial Owner’s consent, to sue for any payment due but unpaid with respect to the Additional
Tier 1 Securities; provided that, in the case of (1) and (2) above, any payments in respect of, or arising from, the Additional
Tier 1 Securities, including any payments or amounts resulting or arising from the enforcement of any rights under the Trust Indenture
Act in respect of the Additional Tier 1 Securities, shall be subject to the subordination provisions set forth in ‎Section
5.01 and the waiver of set-off provisions of ‎‎Section
5.02 of the Third Supplemental Indenture.

 

In furtherance
of Section 6.01 of the Capital Securities Indenture:

 

(i)        For
purposes of Sections 315(a) and 315(c) of the Trust Indenture Act, the term “default” is hereby defined to mean an
Enforcement Event which has occurred and is continuing.

 

(ii)        Notwithstanding
anything contained in the Capital Securities Indenture to the contrary, the duties and responsibilities of the Trustee under this
Indenture shall be

 

    19 

     

    

subject to the protections, exculpations
and limitations on liability afforded to an indenture trustee under the provisions of the Trust Indenture Act.

 

With respect
to the Additional Tier 1 Securities only, Section 12.01(a) of the Capital Securities Indenture shall be amended and restated in
its entirety by Section 5.01 of the Third Supplemental Indenture. References in the Capital Securities Indenture to Section 12.01(a)
thereof shall be to ‎Section 5.01 of the Third Supplemental
Indenture. For the avoidance of doubt, no provision of Article 12 of the Capital Securities Indenture other than Section 12.01(a)
shall be amended by the Third Supplemental Indenture.

 

The Additional
Tier 1 Securities shall constitute the Company’s direct, unsecured and subordinated obligations, ranking equally without
any preference among themselves. The rights and claims of the Holders and Beneficial Owners of the Additional Tier 1 Securities
in respect of or arising from the Additional Tier 1 Securities shall be subordinated to the claims of Senior Creditors.

 

If a Winding-up
or Administration Event occurs prior to the date on which a Trigger Event occurs, there shall be payable by the Company in respect
of each Additional Tier 1 Security (in lieu of any other payment by the Company) such amount, if any, as would have been payable
to the Holder or Beneficial Owner if, throughout such Winding-up or Administration Event, such Holder or Beneficial Owner were
the holder of one of a class of preference shares in the capital of the Company (“Notional Preference Shares”)
having an equal right to a return of assets in the Winding-up or Administration Event to, and so ranking pari passu with,
the holders of the most senior class or classes of issued preference shares in the capital of the Company from time to time (if
any) and which have a preferential right to a return of assets in the Winding-up or Administration Event over, and so rank ahead
of, the holders of all other classes of issued shares for the time being in the capital of the Company but ranking junior to the
claims of Senior Creditors and on the assumption that the amount that such holder was entitled to receive in respect of each Notional
Preference Share is an amount equal to the principal amount of, the relevant Additional Tier 1 Security together with, to the
extent not otherwise included within the foregoing, any other amounts attributable to such Additional Tier 1 Security, including
any Accrued Interest thereon and any damages awarded for breach of any obligations in respect thereof, regardless of whether the
Solvency Condition is satisfied on the date upon which the same would otherwise be due and payable (and, in the case of an administration,
on the assumption that such shareholders were entitled to claim and recover in respect of their shares to the same degree as in
a winding up or liquidation).

 

If a Winding-up
or Administration Event occurs at any time on or following the date on which a Trigger Event occurs but the Settlement Shares
to be issued and delivered to the Settlement Share Depository on the Conversion Date have not been so delivered, there shall be
payable by the Company in respect of each Additional Tier 1 Security (in lieu of any other payment by the Company) such amount,
if any, as would have been payable to the Holder or Beneficial Owner of such Additional Tier 1 Security in a Winding-up or Administration
Event if the Conversion Date in respect of the Automatic Conversion had occurred immediately before the occurrence of a Winding-up

 

    20 

     

    

or Administration
Event and, accordingly, as if such holder were, throughout such Winding-up or Administration Event, the holder of such number
of Ordinary Shares as it would have been entitled to receive upon Automatic Conversion (ignoring for this purpose the Company’s
right to make an election for a Settlement Shares Offer to be effected pursuant to ‎Section
2.17 of the Third Supplemental Indenture), regardless of whether the Solvency Condition is satisfied on such date (and, in the
case of an administration, on the assumption that shareholders were entitled to claim and recover in respect of their shares to
the same degree as in a winding up or liquidation).

 

Other than
in the event of a Winding-up or Administration Event of the Company, or in relation to the Cash Component of any Alternative Consideration
in any Settlement Shares Offer, payments in respect of or arising under the Additional Tier 1 Securities (including any damages
for breach of any obligations thereunder) shall, in addition to the cancellation of any interest payment pursuant to the terms
of the Third Supplemental Indenture or this Additional Tier 1 Security, be conditional (i) upon the Company’s being solvent
at the time when the relevant payment is due to be made, and (ii) in that no principal, interest or other amount payable shall
be due and payable in respect of or arising from the Additional Tier 1 Securities except to the extent that the Company could
make such payment and still be solvent immediately thereafter (such condition referred to herein as the “Solvency Condition”).

 

For purposes
of determining whether the Solvency Condition is met, the Company shall be considered to be solvent at a particular point in time
if (i) it is able to pay its debts owed to Senior Creditors as they fall due and (ii) its Assets are at least equal to its Liabilities.

 

Subject to
applicable law, no Holder of Additional Tier 1 Securities may exercise, claim or plead any right of set-off, compensation or retention
in respect of any amount owed to it by the Company arising under, or in respect of, or in connection with, the Additional Tier
1 Securities and each Holder of Additional Tier 1 Securities shall, by virtue of its holding of any Additional Tier 1 Securities,
be deemed to have waived all such rights of set-off, compensation or retention. Notwithstanding the previous sentence, if any
amount owing to any holder of any Additional Tier 1 Security by the Company in respect of, or arising under or in connection with
the Additional Tier 1 Securities is discharged by set-off, such holder shall, subject to applicable law, immediately pay an amount
equal to the amount of such discharge to the Company (or, in the event of its winding-up or administration, the liquidator or,
as appropriate, administrator of the Company) and, until such time as payment is made, shall hold an amount equal to such amount
in trust for the Company (or the liquidator or, as appropriate, administrator of the Company) and accordingly any such discharge
shall be deemed not to have taken place.

 

The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Additional Tier 1 Securities of each series to be affected under the Indenture
at any time by the Company and the Trustee with the consent of the Holders of not less than 2/3 (two thirds) in aggregate majority
in principal amount of the Additional Tier 1 Securities then outstanding of each series to be affected.

 

    21 

     

    

Holders of
not less than a majority in aggregate principal amount of the outstanding Securities may on behalf of the Holders of all of the
Additional Tier 1 Securities waive any past Enforcement Event that results from a breach by the Company of a Performance Obligation.
Holders of a majority of the aggregate principal amount of the outstanding Additional Tier 1 Securities shall not be entitled
to waive any past default that results from a Winding-up or Administration Event or a Non-Payment Event.

 

As provided
in and subject to the provisions of the Indenture, the Holder of this Additional Tier 1 Security shall not have any right to institute
any proceeding, judicial or otherwise, with respect to the Indenture or for the appointment of a receiver or trustee or for any
other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Enforcement
Event with respect to the Additional Tier 1 Securities of this series specifying such Enforcement Event, the Holders of not less
than 25% in aggregate principal amount of the Additional Tier 1 Securities of this series then outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Enforcement Event as Trustee and offered to the Trustee indemnity
satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request, the Trustee for
60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding, and no direction
inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in
principal amount of the outstanding aggregate principal amount of Additional Tier 1 Securities of this series.

 

This Additional
Tier 1 Security, and any other Securities of this series and of like tenor, are issuable only in registered form without coupons
in initial denominations of $200,000 and increments of $1,000 thereafter. The denominations cannot be changed without the consent
of the Trustee. The denomination of each interest in this Additional Tier 1 Security shall be the “Tradable Amount”
of such book-entry interest. Prior to the Automatic Conversion, the aggregate Tradable Amount of the interests in this Additional
Tier 1 Security shall equal this Additional Tier 1 Security’s outstanding principal amount. Following the Automatic Conversion,
the principal amount of this Additional Tier 1 Security shall equal zero, but the Tradable Amount of the book-entry interests
in this Additional Tier 1 Security shall remain unchanged as a result of the Automatic Conversion.

 

Prior to
due presentment of this Additional Tier 1 Security for registration of transfer, the Company, the Trustee and any agent of the
Company or the Trustee may treat the Person in whose name this Additional Tier 1 Security is registered as the owner hereof for
all purposes, whether or not this Additional Tier 1 Security be overdue, and neither the Company, the Trustee nor any such agent
shall be affected by notice to the contrary.

 

This Additional Tier 1 Security
shall be governed by and construed in accordance with the laws of the State of New York, except as otherwise provided for (i)
pursuant to Section 1.12 of the Capital Securities Indenture and ‎Section
10.07 of the Third Supplemental Indenture, the subordination provisions referred to herein and in ‎Section
5.01 of the Third Supplemental Indenture (which amends in its entirety 

 

    22 

     

    

Section 12.01(a) of the Capital
Securities Indenture) and ‎Section 5.02 of the Third
Supplemental Indenture, which are governed by, and construed in accordance with, Scots law (other than the Trustee’s own
rights, duties or immunities under Article 12 of the Capital Securities Indenture, as amended by ‎Section
5.01 of the Third Supplemental Indenture, or otherwise), and (ii) the authorization and execution by the Company of this Additional
Tier 1 Security shall be governed by (in addition to the laws of the State of New York relevant to execution) the jurisdiction
of the Company.

 

    23 

     

    

Exhibit
B

 

Form
of Conversion Trigger Notice1

 

NOTICE
TO DTC AND FOR PUBLICATION

AS A NOTICE TO HOLDERS AND BENEFICIAL OWNERS

 

[Lloyds
Letterhead]

 

		To:	The Depository Trust Company

                                         55 Water Street, 25th Floor

                                         New York, NY 10041-0099

                                         Attn: Mandatory Reorganization Department

                                         Fax: +1 (212) 855-5488

                                         Email: mandatoryreorgannouncements@dtcc.com

 

	Cc:	The
Bank of New York Mellon

        One
Canada Square

        London
E14 5AL

        United
Kingdom

        Attn:
Corpsov 4 team

        Email:corpsov4@bnymellon.com

        Fax:
+44 (0)1202 689849
	The
Bank of New York Mellon

        240
Greenwich Street

        New
York, NY 10286

        United
States of America

        Attn:
        Corpsov 4 team

        Email:corpsov4@bnymellon.com

        Fax:
+44 (0)1202 689849

 

Re: Lloyds
Banking Group plc $500,000,000 Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities (CUSIP:
53944YAJ2, ISIN: US53944YAJ29) – Notice to DTC, Holders and Beneficial Owners of the Occurrence of a Trigger Event

 

This notice
is in relation to Lloyds Banking Group plc’s (the “Company”) $500,000,000 Fixed Rate Reset Additional
Tier 1 Perpetual Subordinated Contingent Convertible Securities (CUSIP: 53944YAJ2, ISIN: US53944YAJ29) issued on June 19, 2019
(the “Securities”) pursuant to the Base Capital Securities Indenture, dated March 6, 2014, between the Company
and The Bank of New York Mellon, London Branch, as Trustee (the “Trustee”), as supplemented by the Third Supplemental
Indenture, dated June 19, 2019, between the Company and the Trustee (together, the “Indenture”), and pursuant
to the prospectus dated June 3, 2019 as supplemented by the prospectus supplement dated June 12, 2019. Capitalized terms used
herein and not defined herein shall have the respective meanings ascribed to such terms in the Indenture.

 

The Company
hereby notifies The Depository Trust Company (“DTC”), the Holders and Beneficial Owners of the Additional Tier
1 Securities that a Trigger Event has occurred with respect to the Additional Tier 1 Securities. Such Trigger Event has

 

___________________ 

1
Note: Addresses to be reconfirmed prior to when notice is sent; subject to modification if Securities are in definitive form and
to changes in DTC (or successor clearing system) policies and procedures.

 

    24 

     

    

occurred because
the Group’s CET1 Ratio as of [date], as published by the Company was less than 7.00%.

 

Upon the
occurrence of the Trigger Event, the terms of the Additional Tier 1 Securities provide for the Automatic Conversion of the Additional
Tier 1 Securities on the Conversion Date, which is expected to be [date], at the Conversion Price. Upon the Automatic Conversion,
all of the Company’s obligations under the Additional Tier 1 Securities shall be irrevocably and automatically released
in consideration of the Company’s issuance and delivery of Settlement Shares to the Settlement Share Depository (or other
relevant recipient). However, the terms of the Additional Tier 1 Securities provide that the Additional Tier 1 Securities shall
remain in existence until the applicable Settlement Date for the sole purpose of evidencing a right to receive Settlement Shares,
ADSs or Alternative Consideration, as applicable, from the Settlement Share Depository.

 

Accordingly,
the Company hereby instructs DTC to indicate to all participants that payments of principal and interest are no longer payable
under the Additional Tier 1 Securities as of the Conversion Date and that the Additional Tier 1 Securities will have no further
entitlement to interest or principal as of such date by making a note to that effect in its systems.

 

The Company
further requests DTC to post this notice on its Reorganization Inquiry for Participants System (or such other system as DTC uses
for providing notices to holders of securities).

 

Should DTC,
any Holder or any Beneficial Owner of the Additional Tier 1 Securities have any inquiries, please contact either the Company at
[Telephone, Fax, Email] or [Name], the Settlement Share Depository, at [Telephone, Fax, Email] 2

 

 

__________________________ 

2
Insert contact details of any Settlement Share Depository, or, if LBG has been unable to appoint a Settlement Share Depository,
any other details required to set out the issuance and/or delivery procedures in respect of the Settlement Shares, ADSs or any
Alternative Consideration as to Holders and Beneficial Owners as LBG shall consider reasonable in the circumstances.

 

    25 

     

    

Exhibit
C

 

Form
of Trigger Event Officer’s Certificate

 

LLOYDS
BANKING GROUP PLC

 

Trigger
Event Officer’s Certificate

 

This Officer’s
Certificate is being delivered in relation to Lloyds Banking Group plc’s (the “Company”) $500,000,000
Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities (CUSIP: 53944YAJ2, ISIN: US53944YAJ29)
issued on June 19, 2019 (the “Securities”) pursuant to the Base Capital Securities Indenture, dated March 6,
2014, between the Company and The Bank of New York Mellon, London Branch, as Trustee (the “Trustee”), as amended
and supplemented by the Third Supplemental Indenture, dated June 19, 2019, between the Company and the Trustee (together, the
“Indenture”).

 

Capitalized
terms used herein and not defined herein shall have the respective meanings ascribed to such terms in the Indenture.

 

Pursuant
to ‎Section 1.02 of the Capital Securities Indenture and ‎‎Section
2.15(b) of the Third Supplemental Indenture, the undersigned, being authorized signatory of the Company and authorized by the
Company to give this certificate, hereby certifies as follows:

 

(a)           
I have read all of the covenants and conditions in the Indenture, setting forth certain provisions in respect of the occurrence
of a Trigger Event, including ‎‎Section 2.15(b) of the Third Supplemental Indenture, and the definitions relating thereto;

 

(b)           
[Include a brief statement as to the nature and scope of the examination or investigation upon which the statements
contained in such certificate are based][I have reviewed such other documents as I have deemed necessary as a basis for the
opinion hereinafter expressed];

 

(c)           
I have made such other examinations and investigations as I have deemed necessary to enable me to express an informed opinion
as to (i) whether or not such covenants and conditions have been complied with, and (ii) the matters set forth in ‎(d) below;
and

 

(d)           
In my opinion, such conditions (including all conditions precedent) and covenants have been complied with; and

 

(e)           
a Trigger Event has occurred with respect to the Additional Tier 1 Securities. Such Trigger Event has occurred because
the Group’s CET1 Ratio as of [date], as published by the Company, was less than 7.00%.

 

[Concurrently
with][Immediately following] the delivery of this Trigger Event Officer’s Certificate, the Company is delivering to The
Depository Trust Company

 

    26 

     

    

(“DTC”)
the Conversion Trigger Notice attached hereto as Exhibit A as a notice to DTC and for publication as a notice to Holders and Beneficial
Owners in the form set forth in Exhibit B to the Third Supplemental Indenture.

 

The Trustee
is entitled to conclusively rely on and accept this Trigger Event Officer’s Certificate without any duty whatsoever of further
inquiry as sufficient and conclusive evidence of the occurrence of a Trigger Event, and this Trigger Event Officer’s Certificate
shall be conclusive and binding on the Trustee, the Holders and the Beneficial Owners.

 

Dated: [●]

 

	 
	 	 
	 	Name:
	 	Title:

  

 

    27 

     

    

Exhibit
D

 

Form
of Settlement Shares Offer Notice3

 

NOTICE
TO DTC AND FOR PUBLICATION

AS A NOTICE TO HOLDERS AND BENEFICIAL OWNERS

 

[LBG
Letterhead]

 

	To:	The
Depository Trust Company

        55
Water Street, 25th Floor

        New
York, NY 10041-0099

        Attn:
Mandatory Reorganization Department

        Fax:
+1 (212) 855-5488

        Email:
        mandatoryreorgannouncements@dtcc.com

         
	

        

         

	Cc:	The
Bank of New York Mellon

        One
Canada Square

        London
E14 5AL 

        United
Kingdom

        Attn:
Corpsov 4 team

        Email:corpsov4@bnymellon.com

        Fax:
        +44 (0)1202 689849

         
	The
Bank of New York Mellon

        240
Greenwich Street

        New
York, NY 10286

        United
States of America

        Attn:
Corpsov 4 team

        Email:corpsov4@bnymellon.com

        Fax:
+44 (0)1202 689849

 

Re: Lloyds
Banking Group plc $500,000,000 Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities (CUSIP:
53944YAJ2, ISIN: US53944YAJ29) – Notice to DTC, Holders and Beneficial Owners –Election to Conduct a Settlement Shares
Offer

 

This notice
is in relation to Lloyds Banking Group plc’s (the “Company”) $500,000,000 Fixed Rate Reset Additional
Tier 1 Perpetual Subordinated Contingent Convertible Securities (CUSIP: 53944YAJ2, ISIN: US53944YAJ29) issued on June 19, 2019
(the “Securities”) pursuant to the Base Capital Securities Indenture, dated March 6, 2014, between the Company
and The Bank of New York Mellon, London Branch, as Trustee (the “Trustee”), as supplemented by the Third Supplemental
Indenture, dated June 19, 2019, between the Company and the Trustee (together, the “Indenture”), and pursuant
to the prospectus dated June 3, 2019, as supplemented by the prospectus supplement dated June 12, 2019 (the “Prospectus”).
Capitalized terms used herein and not defined herein shall have the respective meanings ascribed to such terms in the Indenture.

 

The Company
hereby notifies The Depository Trust Company (“DTC”), the Holders and the Beneficial Owners of the Additional
Tier 1 Securities that it has elected

 

__________________

3
Note: Addresses to be reconfirmed prior to when notice is sent; subject to modification if Securities are in definitive form and
to changes in DTC (or successor clearing system) policies and procedures.

 

    28 

     

    

that the Settlement
Share Depository conduct a Settlement Shares Offer. The Settlement Shares Offer Period will extend from the date of this notice
until [date]4.

 

[In addition,
the Company hereby notifies DTC, the Holders and the Beneficial Owners of the Additional Tier 1 Securities that the Suspension
Date shall be [date]5. Accordingly, the Company hereby instructs DTC to implement a “chill” on the
clearance and settlement of the Additional Tier 1 Securities on the Suspension Date. As described in the Prospectus, Holders and
Beneficial Owners will not be able to settle the transfer of any Additional Tier 1 Securities following the Suspension Date, and
any sale or other transfer of the Additional Tier 1 Securities that a Holder or Beneficial Owner may have initiated prior to the
commencement to the Suspension Date that is scheduled to settle after the Suspension Date will be rejected by DTC and will not
be settled within DTC.]6

 

The Company
further requests DTC to post this notice on its Reorganization Inquiry for Participants System (or such other system as DTC uses
for providing notices to holders of securities).

 

Should DTC,
any Holder or any Beneficial Owner of the Additional Tier 1 Securities have any inquiries, please contact either the Company at
[Telephone, Fax, Email] or [Name], the Settlement Share Depository, at [Telephone, Fax, Email]7

 

 

____________________ 

4
Note: Insert the date that the Settlement Shares Offer expires, which shall be no later than forty (40) business days after the
delivery of this Settlement Shares Offer Notice.

 

5
Note: Insert the Suspension Date, which is the date on which DTC shall suspend all clearance and settlement of the Additional
Tier 1 Securities.

 

6
Insert information concerning the Suspension Date if such information has not previously been included in the Conversion Trigger
Notice.

 

7
Insert contact details of any Settlement Share Depository, or, if LBG has been unable to appoint a Settlement Share Depository,
any other details required to set out the issuance and/or delivery procedures in respect of the Settlement Shares, ADSs or any
Alternative Consideration as to Holders and Beneficial Owners as LBG shall consider reasonable in the circumstances.

 

    29 

     

    

Exhibit
E

 

Form
of Settlement Request Notice8

 

NOTICE
TO DTC AND FOR PUBLICATION

AS A NOTICE TO HOLDERS AND BENEFICIAL OWNERS

 

[LBG
Letterhead]

 

	To:	The
        Depository Trust Company

        55
Water Street, 25th Floor 

        New
York, NY 10041-0099 

        Attn:
Mandatory Reorganization Department 

        Fax:
+1 (212) 855-5488 

        Email:
        mandatoryreorgannouncements@dtcc.com

         
	

        

         

	Cc:	The
Bank of New York Mellon

        One
Canada Square

        London
        E14 5AL

        

        United
Kingdom 

        Attn:
Corpsov 4 team 

        Email:corpsov4@bnymellon.com 

        Fax:
+44 (0)1202 689849 
	The
Bank of New York Mellon

        240
Greenwich Street 

        New
York, NY 10286 

        United
States of America 

        Attn:
        Corpsov 4 team

        

        Email:corpsov4@bnymellon.com 

        Fax:
+44 (0)1202 689849 

 

Re: Lloyds
Banking Group plc $500,000,000 Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities (CUSIP:
53944YAJ2, ISIN: US53944YAJ29) – Notice to DTC, Holders and Beneficial Owners –Election to Conduct a Settlement Shares
Offer

 

This notice
is in relation to Lloyds Banking Group plc’s (the “Company”) $500,000,000 Fixed Rate Reset Additional
Tier 1 Perpetual Subordinated Contingent Convertible Securities (CUSIP: 53944YAJ2, ISIN: US53944YAJ29) issued on June 19, 2019
(the “Securities”) pursuant to the Base Capital Securities Indenture, dated March 6, 2014, between the Company
and The Bank of New York Mellon, London Branch, as Trustee (the “Trustee”), as supplemented by the Third Supplemental
Indenture, dated June 19, 2019, between the Company and the Trustee (together, the “Indenture”), and pursuant
to the prospectus dated June 3, 2019, as supplemented by the prospectus supplement dated June 12, 2019 (the “Prospectus”).
Capitalized terms used herein and not defined herein shall have the respective meanings ascribed to such terms in the Indenture.

 

The Company
hereby requests that Holders and Beneficial Owners of the Additional Tier 1 Securities provide notice to [Name of Settlement
Share Depository (or 

 

 

_____________________________ 

8
Note: Addresses to be reconfirmed prior to when notice is sent; subject to modification if Securities are in definitive form and
to changes in DTC (or successor clearing system) policies and procedures.

 

    30 

     

    

other nominee)],
as [Settlement Share Depository]9, with a copy to the Trustee, in the form provided in Exhibit F to the Third
Supplemental Indenture before [date] (the “Notice Cut-off Date”).

 

If a Holder
or Beneficial Owner of the Additional Tier 1 Securities properly completes and delivers a Settlement Notice on or before the Notice
Cut-off Date, the Settlement Share Depository shall, in accordance with the terms of the Third Supplemental Indenture, deliver
to such Holder or Beneficial Owner the relevant Settlement Shares (rounded down to the nearest whole number of Settlement Shares),
ADSs or Alternative Consideration, as applicable, two (2) Business Days after the date on which the Settlement Notice is received
by the Settlement Share Depository .

 

If a Holder
or Beneficial Owner of the Additional Tier 1 Securities fails to properly complete and deliver a Settlement Notice before the
Notice Cut-off Date, the Settlement Share Depository shall continue to hold the relevant Settlement Shares or Alternative Consideration.
However, the relevant Securities shall be canceled on the Final Cancellation Date, which shall be [Date],10
and any Holder or Beneficial Owner delivering a Settlement Notice after the Notice Cut-off Date will have to provide evidence
of its entitlement to the relevant Settlement Shares, ADSs or Alternative Consideration, as applicable, satisfactory to the Settlement
Share Depository in its sole and absolute discretion in order to receive delivery of such Settlement Shares, ADSs or Alternative
Consideration.

 

The Company
further requests DTC to post this notice on its Reorganization Inquiry for Participants System (or such other system as DTC uses
for providing notices to holders of securities).

 

Should DTC,
any Holder or any Beneficial Owner of the Additional Tier 1 Securities have any inquiries, please contact either the Company at
[Telephone, Fax, Email] or [Name], the [Settlement Share Depository], at [Telephone, Fax, Email].

 

 

____________________ 

9
Note: If LBG has been unable to appoint a Settlement Share Depository, this should refer to the entity undertaking its functions.

 

10
Note: The Final Cancellation Date may be up to twelve (12) business days following the Notice Cut-off Date.

 

    31 

     

    

Exhibit
F

 

Form
of Settlement Notice11

NOTICE TO THE [SETTLEMENT SHARE DEPOSITORY AND] DTC

 

	To:	The
Depository Trust Company 

        55
Water Street, 25th Floor 

        New
York, NY 10041-0099 

        Attn:
Mandatory Reorganization Department 

        Fax:
+1 (212) 855-5488 

        Email:
        mandatoryreorgannouncements@dtcc.com

         
	

        

         

	Cc:	The
Bank of New York Mellon 

        One
Canada Square 

        London
        E14 5AL

        United
Kingdom

        Attn:
Corpsov 4 team 

        Email:corpsov4@bnymellon.com 

        Fax:
+44 (0)1202 689849 
	The
Bank of New York Mellon

        240
Greenwich Street 

        New
York, NY 10286 

        United
States of America 

        Attn:
Corpsov 4 team 

        Email:corpsov4@bnymellon.com 

        Fax:
+44 (0)1202 689849 

 

Re: Lloyds
Banking Group plc $500,000,000 Fixed Rate Reset Additional Tier 1 Perpetual Subordinated Contingent Convertible Securities (CUSIP:
53944YAJ2, ISIN: US53944YAJ29) – Notice to DTC, Holders and Beneficial Owners –Election to Conduct a Settlement Shares
Offer

 

This notice
is in relation to Lloyds Banking Group plc’s (the “Company”) $500,000,000 Fixed Rate Reset Additional
Tier 1 Perpetual Subordinated Contingent Convertible Securities (CUSIP: 53944YAJ2, ISIN: US53944YAJ29) issued on June 19, 2019
(the “Securities”) pursuant to the Base Capital Securities Indenture, dated March 6, 2014, between the Company
and The Bank of New York Mellon, London Branch, as Trustee (the “Trustee”), as supplemented by the Third Supplemental
Indenture, dated June 19, 2019, between the Company and the Trustee (together, the “Indenture”), and pursuant
to the prospectus dated June 3, 2019, as supplemented by the prospectus supplement dated June 12, 2019 (the “Prospectus”).
Capitalized terms used herein and not defined herein shall have the respective meanings ascribed to such terms in the Indenture.

 

____________________ 

11
Note: Addresses to be reconfirmed prior to when notice is sent; subject to modification if Securities are in definitive form and
to changes in DTC and CREST (or successor clearing system) policies and procedures.

 

    32 

     

    

INFORMATION
OF THE HOLDER OR BENEFICIAL OWNER FOR DELIVERY OF SETTLEMENT SHARES OR ALTERNATIVE CONSIDERATION

 

Surname/Company
Name:

 

First name:

 

Name to
be entered in the share register of Lloyds Banking Group plc:

 

Tradable
Amount of the Additional Tier 1 Securities held on the date hereof:

 

Securities
to be delivered:

 

□
Settlement Shares

 

CREST participant
ID:

 

CREST member
account (if applicable):

 

[Account
details of clearing system account]12

 

[Address
to which any Settlement Shares should be delivered]13

 

□
American Depositary Shares

 

Registered
account in the Company’s American Depositary Share facility: 

 

Cash account
details (if applicable):

 

YOU MUST
DELIVER THE SETTLEMENT NOTICE TO THE SETTLEMENT SHARE DEPOSITORY AND THE TRUSTEE VIA DTC BEFORE [DATE].

 

If you fail
to properly complete and deliver the Settlement Notice on or before the Notice Cut-off Date, the Settlement Share Depository shall
continue to hold your Settlement Shares or Alternative Consideration. However, your Additional Tier 1 Securities shall be canceled
on the Final Cancellation Date, which shall be [date],14 and you will have to provide evidence of your entitlement
to the relevant Settlement Shares, ADSs or Alternative Consideration, as applicable, satisfactory to the Settlement Share

 

__________________ 

12
Note: To be included if the Settlement Shares will be delivered through a clearing system account other than CREST.

 

13
Note: To be included if the Settlement Shares are not a participating security in CREST or any another clearing system.

 

14
Note: The Final Cancellation Date may be up to twelve (12) Business Days following the Notice Cut-off Date.

 

    33 

     

    

Depository
in its sole and absolute discretion in order to receive delivery of such Settlement Shares, ADSs or Alternative Consideration.

 

    34Exhibit 4.2

 

	
 
    	
PRINCIPAL AMOUNT

 $                                    
    

 

REGISTERED NO.: R-

 

CUSIP NO.: 756109AW4

ISIN NO.: US756109AW41

 

REALTY INCOME CORPORATION

3.250% NOTES DUE 2029

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING SET FORTH IN THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND, UNLESS AND UNTIL IT IS EXCHANGED FOR SECURITIES IN DEFINITIVE FORM AS AFORESAID, MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ITS NOMINEE TO A SUCCESSOR DEPOSITARY OR ITS NOMINEE.

 

UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”), 55 WATER STREET, NEW YORK, NEW YORK TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SUCH SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

Realty Income Corporation, a Maryland corporation (the “Company,” which term shall include any successor under the Indenture hereinafter referred to), for value received, hereby promises to pay to                     , or registered assigns, the principal sum of                                                        Dollars on June 15, 2029, and to pay interest thereon from and including June 19, 2019, or from and including the most recent date to which interest has been paid or duly provided for, semi-annually in arrears on June 15 and December 15 of each year (the “Interest Payment Dates”), commencing December 15, 2019, at the rate of 3.250% per annum, until the entire principal amount hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Note (as defined below) (or one or more Predecessor Securities) is registered in the Security Register applicable to the Notes at the close of business on June 1 or December 1 (the “Regular Record Dates”), as the case may be, immediately preceding the applicable Interest Payment Date regardless of whether the Regular Record Date is a Business Day. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date, and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes of this series not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. Interest will be computed on the basis of a 360-day year of twelve 30-day months. If any principal of or premium, if any, or interest on any of the Notes is not paid when due, then such overdue principal and, to the extent permitted by law, such overdue premium or interest, as the case may be, shall bear interest, until paid or until such payment is duly provided for, at the rate of 3.250% per annum.

 

Payments of principal, premium, if any, and interest in respect of this Note will be made by the Company in Dollars. If this Note is a Global Security, all payments of principal, premium, if any, and interest in respect of this Note will be made by the Company by wire transfer of immediately available funds to an account

 

 

maintained by the payee located in the United States. If this Note is not a Global Security (a “Certificated Note”), payments of interest on this Note may, at the Company’s option, be made by mailing a check to the address of the Person entitled thereto as such address appears in the Security Register for the Notes or by wire transfer to an account maintained by the payee located in the United States, all on the terms set forth in the Indenture; provided, however, that a Holder of $5 million or more in aggregate principal amount of Certificated Notes will be entitled to receive payments of interest due on any Interest Payment Date by wire transfer of immediately available funds to an account maintained by such Holder in the United States so long as such Holder has given appropriate wire transfer instructions to the Trustee or a Paying Agent for the Notes at least 15 calendar days prior to the applicable Interest Payment Date. Any such wire transfer instructions will remain in effect until revoked by such Holder or until such Person ceases to be a Holder of $5 million or more in aggregate principal amount of Certificated Notes.

 

Payments of principal of and premium, if any, and interest on Certificated Notes that are due and payable on the Final Maturity Date (as defined below), any Redemption Date or any other date on which principal of such Notes is due and payable will be made by wire transfer of immediately available funds to accounts maintained by the Holders thereof in the United States, so long as such Holders have given appropriate wire transfer instructions to the Trustee or a Paying Agent for the Notes, against surrender of such Notes to the Trustee or a Paying Agent for the Notes; provided that installments of interest on Certificated Notes that are due and payable on any Interest Payment Date falling on or prior to such Final Maturity Date, Redemption Date or other date on which principal of such Notes is payable will be paid in the manner described in the preceding paragraph to the Persons who were the Holders of such Notes (or one or more Predecessor Securities) registered as such at the close of business on the relevant Regular Record Dates according to their terms and the provisions of the Indenture.

 

This Note is one of a duly authorized issue of Securities of the Company (herein called the “Notes”), issued as a series of Securities under an indenture dated as of October 28, 1998 (herein called, together with all indentures supplemental thereto, the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A. (successor trustee to The Bank of New York), as trustee (the “Trustee,” which term includes any successor trustee under the Indenture with respect to the Notes), 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 Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is one of the duly authorized series designated as the “3.250% Notes due 2029.” All terms used in this Note which are defined in the Indenture and not defined herein shall have the meanings assigned to them in the Indenture.

 

Prior to March 15, 2029 (the “Par Call Date”), the Notes may be redeemed at any time in whole or from time to time in part at the option of the Company at a Redemption Price equal to the greater of:

 

(a) 100% of the principal amount of the Notes to be redeemed, and

 

(b) the sum of the present values of the remaining scheduled payments of principal of and interest on the Notes to be redeemed (exclusive of interest accrued to the applicable Redemption Date), assuming that the Notes matured and that accrued and unpaid interest on the Notes was payable on the Par Call Date, discounted to such Redemption Date on a semiannual basis, assuming a 360-day year consisting of twelve 30-day months, at the Treasury Rate plus 20 basis points,

 

plus, in the case of both clauses (a) and (b) above, accrued and unpaid interest on the principal amount of the Notes being redeemed to such Redemption Date.

 

On and after the Par Call Date, the Notes may be redeemed at any time in whole or from time to time in part at the option of the Company at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest on the principal amount of the Notes being redeemed to the applicable Redemption Date.

 

Notwithstanding the foregoing, installments of interest on Notes whose Stated Maturity is on or prior to a Redemption Date will be payable to the Holders of such Notes (or one or more Predecessor Securities) registered as such at the close of business on the relevant Regular Record Dates according to their terms and the provisions of the Indenture.

 

2

 

Notice of any redemption by the Company will be mailed at least 30 days but not more than 60 days before the applicable Redemption Date to each Holder of Notes to be redeemed.

 

The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of the Company on the Notes and (b) certain restrictive covenants and the related defaults and Events of Default applicable to the Company, in each case, upon compliance by the Company with certain conditions set forth in the Indenture, which provisions apply to this Note.

 

In addition to the covenants of the Company contained in the Indenture, the Company makes the following covenants with respect to, and for the benefit of the Holders of, the Notes:

 

Limitation on Incurrence of Total Debt. The Company will not, and will not permit any Subsidiary to, incur any Debt, other than Intercompany Debt, if, immediately after giving effect to the incurrence of such additional Debt and the application of the proceeds therefrom on a pro forma basis, the aggregate principal amount of all outstanding Debt of the Company and its Subsidiaries on a consolidated basis determined in accordance with GAAP is greater than 60% of the sum of (i) the Company’s Total Assets as of the end of the latest fiscal quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not required under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), with the Trustee) prior to the incurrence of such additional Debt and (ii) the increase, if any, in Total Assets from the end of such quarter including, without limitation, any increase in Total Assets caused by the application of the proceeds of such additional Debt (such increase together with the Company’s Total Assets are referred to as the “Adjusted Total Assets”).

 

Limitation on Incurrence of Secured Debt. The Company will not, and will not permit any Subsidiary to, incur any Secured Debt, other than Intercompany Debt, if, immediately after giving effect to the incurrence of such additional Secured Debt and the application of the proceeds therefrom on a pro forma basis, the aggregate principal amount of all outstanding Secured Debt of the Company and its Subsidiaries on a consolidated basis determined in accordance with GAAP is greater than 40% of the Company’s Adjusted Total Assets.

 

Debt Service Coverage. The Company will not, and will not permit any Subsidiary to, incur any Debt, other than Intercompany Debt, if the ratio of Consolidated Income Available for Debt Service to the Annual Debt Service Charge for the period consisting of the four consecutive fiscal quarters most recently ended prior to the date on which such additional Debt is to be incurred is less than 1.5 to 1.0, on a pro forma basis after giving effect to the incurrence of such Debt and the application of the proceeds therefrom, and calculated on the assumption that (i) such Debt and any other Debt incurred by the Company or any of its Subsidiaries since the first day of such four-quarter period and the application of the proceeds therefrom (including to refinance other Debt since the first day of such four-quarter period) had occurred on the first day of such period, (ii) the repayment or retirement of any other Debt of the Company or any of its Subsidiaries since the first day of such four-quarter period had occurred on the first day of such period (except that, in making such computation, the amount of Debt under any revolving credit facility, line of credit or similar facility shall be computed based upon the average daily balance of such Debt during such period), and (iii) in the case of any acquisition or disposition by the Company or any Subsidiary of any asset or group of assets since the first day of such four-quarter period, including, without limitation, by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition had occurred on the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation. If the Debt giving rise to the need to make the foregoing calculation or any other Debt incurred after the first day of the relevant four-quarter period bears interest at a floating rate then, for purposes of calculating the Annual Debt Service Charge, the interest rate on such Debt shall be computed on a pro forma basis as if the average interest rate which would have been in effect during the entire such four-quarter period had been the applicable rate for the entire such period.

 

Maintenance of Total Unencumbered Assets. The Company will maintain at all times Total Unencumbered Assets of not less than 150% of the aggregate outstanding principal amount of the Unsecured Debt of the Company and its Subsidiaries, computed on a consolidated basis in accordance with GAAP.

 

Certain Definitions. As used herein, the following terms have the meanings set forth below:

 

3

 

“Annual Debt Service Charge” as of any date means the amount which is expensed in any 12-month period for interest on Debt of the Company and its Subsidiaries.

 

“Comparable Treasury Issue” means, with respect to any Redemption Date for the Notes, the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed (assuming that the Notes matured on the Par Call Date) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes to be redeemed (assuming that the Notes matured on the Par Call Date).

 

“Comparable Treasury Price” means, with respect to any Redemption Date for the Notes:

 

(a)           if the Company obtains six or more Reference Treasury Dealer Quotations for such Redemption Date, the average of such Reference Treasury Dealer Quotations after excluding the highest and lowest such Reference Treasury Dealer Quotations, or

 

(b)           if the Company obtains fewer than six but more than one such Reference Treasury Dealer Quotations for such Redemption Date, the average of all such Reference Treasury Dealer Quotations, or

 

(c)         if the Company obtains only one such Reference Treasury Dealer Quotation for such Redemption Date, that Reference Treasury Dealer Quotation.

 

“Consolidated Income Available for Debt Service” for any period means Consolidated Net Income plus, without duplication, amounts which have been deducted in determining Consolidated Net Income during such period for (i) Consolidated Interest Expense, (ii) provisions for taxes of the Company and its Subsidiaries based on income, (iii) amortization (other than amortization of debt discount) and depreciation, (iv) provisions for losses from sales or joint ventures, (v) provisions for impairment losses, (vi) increases in deferred taxes and other non-cash charges, (vii) charges resulting from a change in accounting principles, and (viii) charges for early extinguishment of debt, and less, without duplication, amounts which have been added in determining Consolidated Net Income during such period for (a) provisions for gains from sales or joint ventures, and (b) decreases in deferred taxes and other non-cash items.

 

“Consolidated Interest Expense” for any period, and without duplication, means all interest (including the interest component of rentals on capitalized leases, letter of credit fees, commitment fees and other like financial charges) and all amortization of debt discount on all Debt (including, without limitation, payment-in-kind, zero coupon and other like securities) but excluding legal fees, title insurance charges, other out-of-pocket fees and expenses incurred in connection with the issuance of Debt and the amortization of any such debt issuance costs that are capitalized, all determined for the Company and its Subsidiaries on a consolidated basis in accordance with GAAP.

 

“Consolidated Net Income” for any period means the amount of consolidated net income (or loss) of the Company and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.

 

“Debt” means any indebtedness of the Company or any Subsidiary, whether or not contingent, in respect of (i) money borrowed or evidenced by bonds, notes, debentures or similar instruments, (ii) indebtedness secured by any mortgage, pledge, lien, charge, encumbrance, trust deed, deed of trust, deed to secure debt, security agreement or any security interest existing on property owned by the Company or any Subsidiary, (iii) letters of credit or amounts representing the balance deferred and unpaid of the purchase price of any property except any such balance that constitutes an accrued expense or trade payable or (iv) any lease of property by the Company or any Subsidiary as lessee that is reflected on the Company’s consolidated balance sheet as a capitalized lease in accordance with GAAP, in the case of items of indebtedness under (i) through (iii) above to the extent that any such items (other than letters of credit) would appear as liabilities on the Company’s consolidated balance sheet in accordance with GAAP, and

 

4

 

also includes, to the extent not otherwise included, any obligation of the Company or any Subsidiary to be liable for, or to pay, as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business), indebtedness of another Person (other than the Company or any Subsidiary) of the type referred to in (i), (ii), (iii) or (iv) above (it being understood that Debt shall be deemed to be incurred by the Company or any Subsidiary whenever the Company or such Subsidiary shall create, assume, guarantee or otherwise become liable in respect thereof).

 

“Executive Group” means, collectively, those individuals holding the offices of Chairman, Vice Chairman, Chief Executive Officer, President, Chief Operating Officer or any Vice President of the Company.

 

“Final Maturity Date” means June 15, 2029.

 

“Independent Investment Banker” means, with respect to any Redemption Date for the Notes, Citigroup Global Markets Inc. and its successors, BNY Mellon Capital Markets, LLC and its successors, Credit Suisse Securities (USA) LLC and its affiliates and successors, Goldman Sachs & Co. LLC and its successors, Mizuho Securities USA LLC and its successors, or U.S. Bancorp Investments, Inc. and its successors (whichever shall be appointed by the Company) or, if all such firms or the respective affiliates and successors, if any, to such firms, as the case may be, are unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company.

 

“Intercompany Debt” means indebtedness owed by the Company or any Subsidiary solely to the Company or any Subsidiary.

 

“New York Business Day” means any day, other than a Saturday or a Sunday, that is not a day on which banking institutions in The City of New York are authorized or required by law, regulation or executive order to close.

 

“Reference Treasury Dealer” means with respect to any Redemption Date for the Notes, (i) Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and Mizuho Securities USA LLC and their respective affiliates and successors (provided, however, that if any such firm or any such affiliate or successor, as the case may be, ceases to be a primary U.S. Government securities dealer in the United States (a “Primary Treasury Dealer”), the Company shall substitute therefor another Primary Treasury Dealer), (ii) one other Primary Treasury Dealer selected by BNY Mellon Capital Markets, LLC or its successor after consultation with the Company and (iii) one other Primary Treasury Dealer selected by U.S. Bancorp Investments, Inc. or its successor after consultation with the Company.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Notes, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third New York Business Day preceding such Redemption Date.

 

“Secured Debt” means Debt secured by any mortgage, lien, charge, encumbrance, trust deed, deed of trust, deed to secure debt, security agreement, pledge, conditional sale or other title retention agreement, capitalized lease, or other security interest or agreement granting or conveying security title to or a security interest in real property or other tangible assets.

 

“Subsidiary” means (i) any corporation, partnership, joint venture, limited liability company or other entity the majority of the shares, if any, of the non-voting capital stock or other equivalent ownership interests of which (except directors’ qualifying shares) are at the time directly or indirectly owned by the Company, and the majority of the shares of the voting capital stock or other equivalent ownership interests of which (except for directors’ qualifying shares) are at the time directly or indirectly owned by the Company, any other Subsidiary or Subsidiaries, and/or one or more individuals of the Executive Group (or,

 

5

 

in the event of death or disability of any of such individuals, his/her respective legal representative(s), or such individuals’ successors in office as an officer of the Company), and (ii) any other entity the accounts of which are consolidated with the accounts of the Company. The foregoing definition of “Subsidiary” shall only be applicable with respect to the covenants set forth above under the captions “Limitation on Incurrence of Total Debt,” “Limitation on Incurrence of Secured Debt,” “Debt Service Coverage,” and “Maintenance of Total Unencumbered Assets,” this definition, the other definitions set forth herein under this caption “Certain Definitions,” and, insofar as Section 801 of the Indenture is applicable to the Notes, the term “Subsidiary,” as that term is used in Section 801(2) of the Indenture, shall have the meaning set forth in this definition (instead of the meaning set forth in Section 101 of the Indenture).

 

“Treasury Rate” means, with respect to any Redemption Date for the Notes:

 

(a)           the yield, under the heading that represents the average for the immediately preceding week, appearing in, or available through, the most recently published statistical release designated “H.15” or any successor publication which is published at least weekly by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) (or, in each case, any companion online data resource published at least weekly by the Federal Reserve) and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Par Call Date, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Treasury Rate shall be interpolated or extrapolated from such yields on a straight-line basis, rounding to the nearest month), or

 

(b)           if such release (or any successor publication or release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.

 

For purposes of the immediately preceding sentence, information shall be deemed “published” by the Federal Reserve if it is made available to the public generally, whether in physical form, on the Federal Reserve’s website or by other means. The Treasury Rate shall be calculated by the Company on the third New York Business Day preceding the applicable Redemption Date.

 

“Total Assets” as of any date means the sum of (i) Undepreciated Real Estate Assets and (ii) all other assets of the Company and its Subsidiaries determined on a consolidated basis in accordance with GAAP (but excluding accounts receivable and intangibles).

 

“Total Unencumbered Assets” as of any date means Total Assets minus the value of any properties of the Company and its Subsidiaries that are encumbered by any mortgage, charge, pledge, lien, security interest, trust deed, deed of trust, deed to secure debt, security agreement, or other encumbrance of any kind (other than those relating to Intercompany Debt), including the value of any stock of any Subsidiary that is so encumbered, determined on a consolidated basis in accordance with GAAP; provided, however, that, in determining Total Unencumbered Assets as a percentage of outstanding Unsecured Debt for purposes of the covenant set forth above under “Maintenance of Total Unencumbered Assets,” all investments in any Person that is not consolidated with the Company for financial reporting purposes in accordance with GAAP shall be excluded from Total Unencumbered Assets to the extent that such investment would otherwise have been included. For purposes of this definition, the value of each property shall be equal to the purchase price or cost of each such property and the value of any stock subject to any encumbrance shall be determined by reference to the value of the properties owned by the issuer of such stock as aforesaid.

 

“Undepreciated Real Estate Assets” as of any date means the amount of real estate assets of the Company and its Subsidiaries on such date, before depreciation and amortization, determined on a consolidated basis in accordance with GAAP.

 

6

 

“Unsecured Debt” means Debt of the Company or any Subsidiary that is not Secured Debt.

 

If an Event of Default with respect to the Notes shall occur and be continuing, the principal of the Notes may be declared due and payable in the manner and with the effect provided in the Indenture.

 

As provided in and subject to the provisions of the Indenture, the Holder of this Note shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Notes, the Holders of not less than 25% in principal amount of the Notes at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee indemnity reasonably satisfactory to it and the Trustee shall not have received from the Holders of a majority in principal amount of the Notes at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Note for the enforcement of any payment of principal of, or premium, if any, or interest on, this Note on or after the respective due dates therefor.

 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of the Outstanding Notes. The Indenture also contains provisions permitting the Holders of not less than a majority in principal amount of the Notes at the time Outstanding, on behalf of the Holders of all Notes, to waive compliance by the Company with certain provisions of the Indenture. Furthermore, provisions in the Indenture permit the Holders of not less than a majority of the aggregate principal amount of the Outstanding Notes to waive, in certain circumstances, on behalf of all Holders of the Notes, certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note 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 Note.

 

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

 

As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Security Register, upon surrender of this Note for registration of transfer at the office or agency of the Company in any Place of Payment for the Notes, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar for the Notes duly executed by, the Holder hereof or his or her attorney duly authorized in writing, and thereupon one or more new Notes of authorized denominations and for the same aggregate principal amount will be issued to the designated transferee or transferees.

 

As provided in the Indenture and subject to certain limitations therein set forth, Notes of this series are exchangeable for a like aggregate principal amount of Notes of this series of different authorized denominations, as requested by the Holder surrendering the same.

 

The Notes of this series are issuable only in registered form, without interest coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

7

 

No recourse shall be had for the payment of the principal of, or premium, if any, or the interest on this Note, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any past, present or future stockholder, employee, officer or director, as such, of the Company or of any successor, either directly or through the Company or any successor, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released.

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes as a convenience to the Holders of the Notes. No representation is made as to the correctness or accuracy of such CUSIP numbers as printed on the Notes, and reliance may be placed only on the other identification numbers printed hereon.

 

Unless the certificate of authentication hereon has been executed by the Trustee by manual signature of one of its authorized signatories, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

The headings included in this Note are for convenience only and shall not affect the construction hereof.

 

 

 

[Signature page follows]

 

8

 

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

 

 

 

	
 
    	
 
    	
REALTY INCOME   CORPORATION
    
	
[SEAL]
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Sumit Roy 
    
	
 
    	
 
    	
 
    	
President and   Chief Operating Officer
    
	
 
    	
 
    	
 
    
	
Attest:
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Michael R.   Pfeiffer
    	
 
    	
 
    
	
 
    	
Executive   Vice President, Chief Administrative Officer, General Counsel and Secretary
    	
 
    	
 
    

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

	
THE BANK OF NEW   YORK MELLON TRUST COMPANY, N.A., as Trustee
    	
 
    
	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Authorized   Signatory
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:  
    	
 
    	
 
    
					

 

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED, the undersigned hereby

sells, assigns and transfers to

 

 

 

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

 

 

 

 

(Please Print or Typewrite Name and Address

including Zip Code of Assignee)

 

the within Note of REALTY INCOME CORPORATION, and hereby does irrevocably constitute and appoint

 

Attorney to transfer said Note on the books of the within-named Company with full power of substitution in the premises.

 

Dated:

 

NOTICE: The signature to this assignment must correspond with the name as it appears on the first page of the within Note in every particular, without alteration or enlargement or any change whatever.

 

	
Signature   Guaranty
    	
 
    	
 
    
	
 
    	
(Signature   must be guaranteed by a participant in a   signature guarantee medallion program)

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