Document:

bicx_ex101.htm

EXHIBIT 10.1
  
 BIOCORRX INC. 
  
 2018 EQUITY INCENTIVE PLAN
  
 I. Purpose; Eligibility.
  
 A. General Purpose. The name of this plan is the BioCorRx Inc. 2018 Equity Incentive Plan (the “Plan”). The purposes of the Plan are to (a) enable BioCorRx Inc., a Nevada corporation (the “Company”), to attract and retain the types of Employees, Consultants and Directors who will contribute to the Company’s long range success; (b) provide incentives that align the interests of Employees, Consultants and Directors with those of the shareholders of the Company; and (c) promote the success of the Company’s business.
  
 B. Eligible Award Recipients. The persons eligible to receive Awards are the Employees, Consultants and Directors of the Company and its Affiliates.
  
 C. Available Awards. Awards that may be granted under the Plan include: (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Restricted Stock and (d) Restricted Stock Units.
  
 II. Definitions. 
  
 “Affiliate” means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under common control with, the Company.
  
 “Applicable Laws” means the requirements related to or implicated by the administration of the Plan under applicable state corporate law, United States federal and state securities laws, the Code and the applicable laws of any foreign country or jurisdiction where Awards are granted under the Plan.
  
 “Award” means any right granted under the Plan, including an Incentive Stock Option, a Non-qualified Stock Option, a Restricted Stock Award or a Restricted Stock Unit Award.
  
 “Award Agreement” means a written agreement, contract, certificate or other instrument or document evidencing the terms and conditions of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically to any Participant. Each Award Agreement shall be subject to the terms and conditions of the Plan.
  
 “Board” means the Board of Directors of the Company, as constituted at any time.
  
 “Cause” means, unless the applicable Award Agreement provides otherwise: (1) with respect to any employee or Consultant, (A) continued failure by Participant to perform substantially Participant’s duties and responsibilities (other than a failure resulting from Disability) that is materially injurious to the Company and that remains uncorrected for 10 days after receipt of appropriate written notice from the Board; (B) reliable, written third-party documentary evidence of engagement in willful, reckless or grossly negligent misconduct that is materially injurious to Company or any of its affiliates, monetarily or otherwise; (C) except as provided by (D), the indictment of Participant with a crime involving moral turpitude or a felony, provided that if the criminal charge is dismissed with prejudice or if Participant is acquitted at trial or on appeal, Participant will be deemed to have been terminated without Cause; (D) the indictment of Participant for an act of criminal fraud, misappropriation or personal dishonesty, provided that if the criminal charge is subsequently dismissed with prejudice or the Participant is acquitted at trial or on appeal then the Participant will be deemed to have been terminated without Cause; or (E) a material breach by Participant of any provision of an applicable employment agreement that is materially injurious to the Company and that remains uncorrected for 10 days following written notice of such breach by the Company to Participant identifying the provision of the applicable employment agreement that the Company determined has been breached; and (2) with respect to a Director, a determination by a majority of the disinterested Board members that the Director has engaged in (A) malfeasance in office; (B) gross misconduct or neglect; (C) false or fraudulent misrepresentation inducing the Director’s appointment; (D) willful conversion of corporate funds; or (E) repeated failure to participate in Board meetings on a regular basis despite having received proper notice of the meetings in advance. The Board, in its absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant has been discharged for Cause.
  
  	 
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 “Change in Control” means the occurrence of any one or more of the following events (1) any Person becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 25% of the voting power of the then outstanding securities of the Company; provided that a Change of Control shall not be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of another corporation and in which the stockholders of the Company, immediately prior to the transaction, will beneficially own, immediately after the transaction, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the parent corporation would be entitled in the election of directors; (2) the consummation of (A) a merger or consolidation of the Company with another corporation where the stockholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would be entitled in the election of directors, (B) a sale or other disposition of all or substantially all of the assets of the Company, or (C) a liquidation or dissolution of the Company; or (3) Directors are elected such that a majority of the members of the Company’s Board shall have been members of the Board for less than two years, unless the election or nomination for election of each new director who was not a director at the beginning of such two-year period was approved by a vote of at least two-thirds of the Directors then still in office who were Directors at the beginning of such period.
  
 “Code” means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be deemed to include a reference to any regulations promulgated thereunder.
  
 “Committee” means a committee of one or more members of the Board appointed by the Board to administer the Plan in accordance with Section III(D).
  
 “Common Stock” means the common stock, $0.001 par value per share, of the Company.
  
 “Company” means BioCorRx Inc. a Nevada corporation, and any successor thereto.
  
 “Consultant” means any individual who is engaged by the Company or any Affiliate to render consulting or advisory services, whether or not compensated for such services.
  
 “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Consultant or Director, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s Continuous Service; provided further that if any Award is subject to Section 409A of the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. For example, a change in status from an Employee of the Company to a Director of an Affiliate will not constitute an interruption of Continuous Service. The Board or its delegate, in its sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal or family leave of absence.
  
 “Director” means a member of the Board.
  
 “Disability” means either (A) a Participant’s inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (B) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, a Participant’s receiving income replacement benefits for a period of not less than three months under an accident and health plan covering the Company’s employees. A Participant will be deemed permanently disabled if determined to be totally disabled by the Social Security Administration or if determined to be disabled in accordance with a disability insurance program that applies a definition of disability that complies with the requirements of this paragraph. 
  
 “Disqualifying Disposition” has the meaning set forth in Section XIV(I).
  
 “Effective Date” shall mean the date as of which this Plan is adopted by the Board.
  
  	 
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 “Employee” means any person, including an officer or Director, employed by the Company or an Affiliate; provided, that, for purposes of determining eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent or subsidiary corporation within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor thereto.
  
 “Fair Market Value” means, on a given date, (i) if there is a public market for the shares of Common Stock on such date, the closing price of the shares as reported on such date on the principal national securities exchange on which the shares are listed or, if no sales of shares have been reported on any national securities exchange, then the immediately preceding date on which sales of the shares have been so reported or quoted, and (ii) if there is no public market for the shares of Common Stock on such date, then the fair market value shall be determined by the Board in good faith after taking into consideration all factors which it deems appropriate, including, without limitation, Sections 409A and 422 of the Code.
  
 “Grant Date” means the date on which the Board adopts a resolution, or takes other appropriate action, expressly granting an Award to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution, then such date as is set forth in such resolution.
  
 “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.
  
 “Non-qualified Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.
  
 “Option” means an Incentive Stock Option or a Non-qualified Stock Option granted pursuant to the Plan.
  
 “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.
  
 “Option Exercise Price” means the price at which a share of Common Stock may be purchased upon the exercise of an Option.
  
 “Participant” means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Award.
  
 “Permitted Transferee” means: (a) a member of the Optionholder’s immediate family (child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships), any person sharing the Optionholder’s household (other than a tenant or employee), a trust in which these persons have more than 50% of the beneficial interest, a foundation in which these persons (or the Optionholder) control the management of assets, and any other entity in which these persons (or the Optionholder) own more than 50% of the voting interests; or (b) such other transferees as may be permitted by the Board in its sole discretion.
  
 “Person” means any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act).
  
 “Plan” means this BioCorRx Inc. 2018 Equity Incentive Plan, as amended and/or amended and restated from time to time.
  
 “Restricted Period” has the meaning set forth in Section VII.
  
 “Restricted Stock” means Common Stock, subject to certain specified restrictions (including, without limitation, a requirement that the Participant provide Continuous Service for a specified period of time) granted under Section VII of the Plan.
  
 “Restricted Stock Unit” means an unfunded and unsecured promise to deliver shares of Common Stock, cash, other securities or other property, subject to certain restrictions (including, without limitation, a requirement that the Participant provide Continuous Service for a specified period of time) granted under Section VII of the Plan.
  
  	 
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 “Ten Percent Shareholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of any of its Affiliates.
  
 III. Administration.
  
 A. Authority of Board. The Plan shall be administered by the Board or, in the Board’s sole discretion, by the Committee. Subject to the terms of the Plan, the Committee’s charter and Applicable Laws, and in addition to other express powers and authorization conferred by the Plan, the Committee shall have the authority: (1) to construe and interpret the Plan and apply its provisions; (2)to promulgate, amend, and rescind rules and regulations relating to the administration of the Plan; (3) to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan; (4) to delegate its authority to one or more officers of the Company; (5) to determine when Awards are to be granted under the Plan and the applicable Grant Date; (6) from time to time to select, subject to the limitations set forth in this Plan, those Participants to whom Awards shall be granted; (7) to determine the number of shares of Common Stock to be made subject to each Award; (8) to determine whether each Option is to be an Incentive Stock Option or a Non-qualified Stock Option; (9) to prescribe the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and vesting provisions, and to specify the provisions of the Award Agreement relating to such grant; (10) to amend any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding Award; provided, however, that if any such amendment impairs a Participant’s rights or increases a Participant’s obligations under his or her Award or creates or increases a Participant’s federal income tax liability with respect to an Award, such amendment shall also be subject to the Participant’s consent; (11) to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees under the Company’s employment policies; (12) to make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event that triggers anti-dilution adjustments; (13) to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; and (14) to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration of the Plan. 
  
 B. Acquisitions and Other Transactions. The Board may, from time to time, assume outstanding awards granted by another entity, whether in connection with an acquisition of such other entity or otherwise, by either (i) granting an Award under the Plan in replacement of or in substitution for the award assumed by the Company, or (ii) treating the assumed award as if it had been granted under the Plan if the terms of such assumed award could be applied to an Award granted under the Plan. Such assumed award shall be permissible if the holder of the assumed award would have been eligible to be granted an Award hereunder if the other entity had applied the rules of this Plan to such grant. The Board may also grant Awards under the Plan in settlement of or in substitution for outstanding awards or obligations to grant future awards in connection with the Company or an Affiliate acquiring another entity, an interest in another entity, or an additional interest in an Affiliate whether by merger, stock purchase, asset purchase or other form of transaction.
  
 C. Board Decisions Final. All decisions made by the Board pursuant to the provisions of the Plan shall be final and binding on the Company and the Participants, unless such decisions are determined by a court having jurisdiction to be arbitrary and capricious.
  
  	 
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 D. Delegation. The Board, may delegate administration of the Plan to a committee or committees of one or more members of the Board, and the term “Committee” shall apply to any person or persons to whom such authority has been delegated. Except as otherwise determined by the Board, the Committee shall consist solely of two or more Directors appointed to the Committee from time to time by the Board. The Committee shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board or the Committee shall thereafter be to the committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. The members of the Committee shall be appointed by and serve at the pleasure of the Board. From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee. The Committee shall act pursuant to a vote of the majority of its members or, in the case of a Committee comprised of only two members, the unanimous consent of its members, whether present or not, or by the written consent of the majority of its members and minutes shall be kept of all of its meetings and copies thereof shall be provided to the Board. Subject to the limitations prescribed by the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may determine to be advisable.
  
 E. Indemnification. In addition to such other rights of indemnification as they may have as Directors or members of the Committee, and to the extent allowed by Applicable Laws, the Board shall be indemnified by the Company against the reasonable expenses, including attorney’s fees, actually incurred in connection with any action, suit or proceeding or in connection with any appeal therein, to which the Committee may be party by reason of any action taken or failure to act under or in connection with the Plan or any Award granted under the Plan, and against all amounts paid by the Board in settlement thereof (provided, however, that the settlement has been approved by the Company, which approval shall not be unreasonably withheld) or paid by the Board in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that such Board did not act in good faith and in a manner which such person reasonably believed to be in the best interests of the Company, or in the case of a criminal proceeding, had no reason to believe that the conduct complained of was unlawful; provided, however, that within 60 days after institution of any such action, suit or proceeding, such Board shall, in writing, offer the Company the opportunity at its own expense to handle and defend such action, suit or proceeding. 
  
 IV. Shares Subject to the Plan. 
  
 A. Subject to adjustment in accordance with Section XI, a total of 45,000,000 shares of Common Stock shall be available for the grant of Awards under the Plan; provided that, no more than 45,000,000 shares of Common Stock may be granted as Incentive Stock Options. During the terms of the Awards, the Company shall keep available at all times the number of shares of Common Stock required to satisfy such Awards.
  
 B. Shares of Common Stock available for distribution under the Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares.
  
 C. Any shares of Common Stock subject to an Award that is canceled, forfeited or expires prior to exercise or realization, either in full or in part, shall again become available for issuance under the Plan. Notwithstanding anything to the contrary contained herein: shares subject to an Award under the Plan shall not again be made available for issuance or delivery under the Plan if such shares are (a) shares tendered in payment of an Option or (b) shares delivered or withheld by the Company to satisfy any tax withholding obligation.
  
 D. If the Board authorizes the assumption of awards pursuant to Section III(B) or Section XII(A) hereof, the assumption will reduce the number of shares available for issuance under the Plan in the same manner as if the assumed awards had been granted under the Plan.
  
 V. Eligibility. 
  
 A. Eligibility for Specific Awards. Incentive Stock Options may be granted to Employees only. Awards other than Incentive Stock Options may be granted to Employees, Consultants and Directors. 
  
 B. Ten Percent Shareholders. A Ten Percent Shareholder shall not be granted an Incentive Stock Option unless the Option Exercise Price is at least 110% of the Fair Market Value of the Common Stock at the Grant Date and the Option is not exercisable after the expiration of five years from the Grant Date. 
  
  	 
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 VI. Option Provisions. Each Option granted under the Plan shall be evidenced by an Award Agreement. Each Option so granted shall be subject to the conditions set forth in this Section VI, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement. All Options shall be separately designated Incentive Stock Options or Non-qualified Stock Options at the time of grant, and, if certificates are issued, a separate certificate or certificates will be issued for shares of Common Stock purchased on exercise of each type of Option. Notwithstanding the foregoing, the Company shall have no liability to any Participant or any other person if an Option designated as an Incentive Stock Option fails to qualify as such at any time or if an Option is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the terms of such Option do not satisfy the requirements of Section 409A of the Code. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions: 
  
 A. Term. Subject to the provisions of Section V(B) regarding Ten Percent Shareholders, no Incentive Stock Option shall be exercisable after the expiration of 10 years from the Grant Date. The term of a Non-qualified Stock Option granted under the Plan shall be determined by the Board; provided, however, no Non-qualified Stock Option shall be exercisable after the expiration of 10 years from the Grant Date.
  
 B. Exercise Price of an Incentive Stock Option. Subject to the provisions of Section V(B) regarding Ten Percent Shareholders, the Option Exercise Price of each Incentive Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock subject to the Option on the Grant Date. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an Option Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code.
  
 C. Exercise Price of a Non-qualified Stock Option. The Option Exercise Price of each Non-qualified Stock Option shall be not less than 100% of the Fair Market Value of the Common Stock subject to the Option on the Grant Date. 
  
 D. Method of Exercise. The Option Exercise Price shall be paid, to the extent permitted by Applicable Laws, either (a) in cash or by certified or bank check at the time the Option is exercised or (b) in the discretion of the Board, upon such terms as the Board shall approve: (i) by delivery to the Company of other shares of Common Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the Option Exercise Price (or portion thereof) due for the number of shares being acquired; (ii) by a “net exercise” procedure effected by withholding the minimum number of shares of Common Stock otherwise issuable in respect of an Option that are needed to pay the Option Exercise Price; (iii) by any combination of the foregoing methods; or (iv) in any other form of legal consideration that may be acceptable to the Board. Unless otherwise specifically provided in the Option, the Option Exercise Price that is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of Common Stock that have been held for more than six months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). 
  
 E. Transferability of an Incentive Stock Option. An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 
  
  	 
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 F. Transferability of a Non-qualified Stock Option. A Non-qualified Stock Option may, in the sole discretion of the Board, be transferable to a Permitted Transferee, upon written approval by the Board to the extent provided in the Award Agreement. If the Non-qualified Stock Option does not provide for transferability, then the Non-qualified Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 
  
 G. Vesting of Options. Each Option may, but need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. No Option may be exercised for a fraction of a share of Common Stock. The Board may, but shall not be required to, provide for an acceleration of vesting and exercisability in the terms of any Award Agreement upon the occurrence of a specified event.
  
 H. Termination of Continuous Service. Unless otherwise provided in an Award Agreement or in an employment agreement the terms of which have been approved by the Board, in the event an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination) but only within such period of time ending on the earlier of (a) the date three months following the termination of the Optionholder’s Continuous Service or (b) the expiration of the term of the Option as set forth in the Award Agreement; provided that, if the termination of Continuous Service is by the Company for Cause, all outstanding Options (whether or not vested) shall immediately terminate and cease to be exercisable. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Award Agreement, the Option shall terminate. 
  
 I. Disability of Optionholder. Unless otherwise provided in an Award Agreement, in the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of (a) the date 12 months following such termination or (b) the expiration of the term of the Option as set forth in the Award Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein or in the Award Agreement, the Option shall terminate.
  
 J. Death of Optionholder. Unless otherwise provided in an Award Agreement, in the event an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder’s death, but only within the period ending on the earlier of (a) the date 12 months following the date of death or (b) the expiration of the term of such Option as set forth in the Award Agreement. If, after the Optionholder’s death, the Option is not exercised within the time specified herein or in the Award Agreement, the Option shall terminate.
  
 K. Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and its Affiliates) exceeds $100,000, the Options or portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Non-qualified Stock Options. 
  
 VII. Restricted Awards. A Restricted Award is an Award of actual shares of Common Stock (”Restricted Stock”) or an Award of hypothetical Common Stock Units (”Restricted Stock Units”) having a value equal to the Fair Market Value of an identical number of shares of Common Stock. Restricted Awards may, but need not, provide that such Restricted Award may not be sold, assigned, transferred or otherwise disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation or for any other purpose for such period (the “Restricted Period”) as the Board shall determine. Each Restricted Award granted under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the conditions set forth in this Section VII, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable Award Agreement.
  
  	 
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 A. Restricted Stock. Each Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Board determines that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending the release of the applicable restrictions, the Board may require the Participant to additionally execute and deliver to the Company (A) an escrow agreement satisfactory to the Board, if applicable and (B) the appropriate blank stock power with respect to the Restricted Stock covered by such agreement. If a Participant fails to execute an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and stock power, the Award shall be null and void. Subject to the restrictions set forth in the Award, the Participant generally shall have the rights and privileges of a shareholder as to such Restricted Stock, including the right to vote such Restricted Stock and the right to receive dividends.
  
 B. Restricted Stock Units. The terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No shares of Common Stock shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside funds for the payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder. To the extent provided in an Award Agreement, the holder of Restricted Stock Units shall be entitled to be credited with dividend equivalent payments (upon the payment by the Company of dividends on shares of Common Stock) either in cash or, at the sole discretion of the Board, in shares of Common Stock having a Fair Market Value equal to the amount of such dividends (and interest may, at the sole discretion of the Board, be credited on the amount of cash dividend equivalents at a rate and subject to such terms as provided by the Board), which accumulated dividend equivalents (and interest thereon, if applicable) shall be payable to the Participant upon the release of restrictions on such Restricted Stock Units, and if such Restricted Stock Units are forfeited, the Participant shall have no right to such dividend equivalent payments.
  
 C. Restrictions.
  
 1. Restrictions on Restricted Stock. Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement is used, the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the applicable Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company, and all rights of the Participant to such shares and as a shareholder with respect to such shares shall terminate without further obligation on the part of the Company. 
  
 2. Restrictions on Restricted Stock Units. Restricted Stock Units awarded to a Participant shall be subject to (A) forfeiture until the expiration of the Restricted Period and satisfaction of any applicable performance goals during such period, to the extent provided in the applicable Award Agreement, and to the extent such Restricted Stock Units are forfeited, all rights of the Participant to such Restricted Stock Units shall terminate without further obligation on the part of the Company and (B) such other terms and conditions as may be set forth in the applicable Award Agreement. 
  
 3. Board Discretion to Remove Restrictions. The Board shall have the authority to remove any or all of the restrictions on the Restricted Stock or Restricted Stock Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances arising after the Grant Date, such action is appropriate. 
  
  	 
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 D. Restricted Period. The Restricted Period shall commence on the Grant Date and end at the time or times set forth on a schedule established by the Board in the applicable Award Agreement; provided, however, that notwithstanding any such vesting dates, the Board may in its sole discretion accelerate the vesting of any Restricted Award at any time and for any reason. The Board may, but shall not be required to, provide for an acceleration of vesting in the terms of any Award Agreement upon the occurrence of a specified event.
  
 E. Delivery of Restricted Stock and Settlement of Restricted Stock Units. Upon the expiration of the Restricted Period with respect to any shares of Restricted Stock, the restrictions set forth in Section VII(A) and the applicable Award Agreement shall be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow arrangement is used, upon such expiration, the Company shall deliver to the Participant, or his or her beneficiary, without charge, the stock certificate evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the Restricted Period has expired (to the nearest full share) and any dividends credited to the Participant’s account with respect to such Restricted Stock and the interest thereon, if any. Upon the expiration of the Restricted Period with respect to any outstanding Restricted Stock Units, the Company shall deliver to the Participant, or his or her beneficiary, without charge, one share of Common Stock for each outstanding Restricted Stock Unit and any dividend equivalent payments credited to the Participant’s account with respect to such Restricted Stock Units and the interest thereon, if any; provided, however, that if explicitly provided in the Award Agreement, the Board may, in its sole discretion, elect to pay part cash or part cash and part Common Stock in lieu of delivering only shares of Common Stock for vested Restricted Stock Units. If a cash payment is made in lieu of delivering shares of Common Stock, the amount of such payment shall be equal to the Fair Market Value of the Common Stock as of the date on which the Restricted Period lapsed. 
  
 No Restricted Award may be granted or settled for a fraction of a share of Common Stock.
  
 VIII. Securities Law Compliance.
  
 A. Securities Registration. No Awards shall be granted under the Plan and no shares of Common Stock shall be issued and delivered upon the exercise of Options granted under the Plan unless and until the Company and/or the Participant have complied with all applicable federal and state registration, listing and/or qualification requirements and all other requirements of law or of any regulatory agencies having jurisdiction.
  
 B. Representations; Legends. The Board may, as a condition to the grant of any Award or the exercise of any Option under the Plan, require a Participant to (i) represent in writing that the shares of Common Stock received in connection with such Award are being acquired for investment and not with a view to distribution and (ii) make such other representations and warranties as are deemed appropriate by counsel to the Company. Each certificate representing shares of Common Stock acquired under the Plan shall bear a legend in such form as the Company deems appropriate.
  
 IX. Use of Proceeds from Stock. Proceeds from the sale of Common Stock pursuant to Awards, or upon exercise thereof, shall constitute general funds of the Company.
  
 X. Miscellaneous.
  
 A. Acceleration of Exercisability and Vesting. The Board shall have the power to accelerate the time at which an Award may first be exercised or the time during which an Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time at which it may first be exercised or the time during which it will vest.
  
  	 
	9
	 
 
	 

  
 B. Shareholder Rights. Except as provided in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to an Award unless and until such Participant has satisfied all requirements for exercise or settlement of the Award pursuant to its terms and no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions of other rights for which the record date is prior to the date such Common Stock certificate is issued, except as provided in Section XI hereof.
  
 C. No Employment or Other Service Rights. Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the right of the Company or an Affiliate to terminate (a) the employment of an Employee with or without notice and with or without Cause or (b) the service of a Director pursuant to the By-laws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be. 
  
 D. Transfer; Approved Leave of Absence. For purposes of the Plan, no termination of employment by an Employee shall be deemed to result from either (a) a transfer of employment to the Company from an Affiliate or from the Company to an Affiliate, or from one Affiliate to another, or (b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the Employee’s right to reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Board otherwise so provides in writing, in either case, except to the extent inconsistent with Section 409A of the Code if the applicable Award is subject thereto.
  
 E. Withholding Obligations. To the extent provided by the terms of an Award Agreement and subject to the discretion of the Board, the Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under an Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock under the Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered shares of Common Stock of the Company. 
  
 XI. Adjustments Upon Changes in Stock. In the event of changes in the outstanding Common Stock or in the capital structure of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the Grant Date of any Award, Awards granted under the Plan and any Award Agreements, the exercise price of Options and the maximum number of shares of Common Stock subject to Awards stated in Section IV will be equitably adjusted or substituted, as to the number, price or kind of a share of Common Stock or other consideration subject to such Awards to the extent necessary to preserve the economic intent of such Award. In the case of adjustments made pursuant to this Section XI, unless the Board specifically determines that such adjustment is in the best interests of the Company or its Affiliates, the Board shall, in the case of Incentive Stock Options, ensure that any adjustments under this Section XI will not constitute a modification, extension or renewal of the Incentive Stock Options within the meaning of Section 424(h)(3) of the Code and in the case of Non-qualified Stock Options, ensure that any adjustments under this Section XI will not constitute a modification of such Non-qualified Stock Options within the meaning of Section 409A of the Code. 
  
  	 
	10
	 
 
	 

  
 XII. Effect of Change in Control. 
  
 A. Unless otherwise provided in an Award Agreement or an employment agreement entered into by the Company and a Participant, in the event of a Change in Control, the Board may, but shall not be obligated to: (1) accelerate, vest or cause the restrictions to lapse with respect to all or any portion of any Award; (2) cancel Awards and cause to be paid to the holders of vested Awards the value of such Awards, if any, as determined by the Board, in its sole discretion, it being understood that in the case of any Option with an Option Exercise Price that equals or exceeds the price paid for a share of Common Stock in connection with the Change in Control, the board may cancel the Option without the payment of consideration therefor; (3) provide for the issuance of substitute Awards or the assumption or replacement of such Awards; or (4) provide written notice to Participants that for a period of at least ten days prior to the Change in Control, such Awards shall be exercisable, to the extent applicable, as to all shares of Common Stock subject thereto and upon the occurrence of the Change in Control, any Awards not so exercised shall terminate and be of no further force and effect.
  
 B. The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to all or substantially all of the assets and business of the Company and its Affiliates, taken as a whole.
  
 XIII. Amendment of the Plan and Awards.
  
 A. Amendment of the Plan. The Board at any time, and from time to time, may amend or terminate the Plan. However, except as provided in Section XI relating to adjustments upon changes in Common Stock and Section VIII(C), no amendment shall be effective unless approved by the shareholders of the Company to the extent shareholder approval is necessary to satisfy any Applicable Laws. At the time of such amendment, the Board shall determine, upon advice from counsel, whether such amendment will be contingent on shareholder approval.
  
 B. Shareholder Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for shareholder approval.
  
 C. Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees, Consultants and Directors with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options or to the nonqualified deferred compensation provisions of Section 409A of the Code and/or to bring the Plan and/or Awards granted under it into compliance therewith.
  
 D. No Impairment of Rights. Rights under any Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.
  
 E. Amendment of Awards. The Board at any time, and from time to time, may amend the terms of any one or more Awards; provided, however, that the Board may not affect any amendment which would otherwise constitute an impairment of the rights under any Award unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.
  
 XIV. General Provisions.
  
 A. Clawback; Forfeiture. Notwithstanding anything to the contrary contained herein, the Board may, in its sole discretion, provide in an Award Agreement or otherwise that the Board may cancel such Award if the Participant has engaged in or engages in activity giving rise to a termination for Cause and require the Participant to forfeit any gain realized on the vesting, exercise or settlement of any Award and repay the gain to the Company. Without limiting the foregoing, all Awards shall be subject to reduction, cancellation, forfeiture or recoupment to the extent necessary to comply with Applicable Laws.
  
  	 
	11
	 
 
	 

  
 B. Sub-plans. The Board may from time to time establish sub-plans under the Plan for purposes of satisfying blue sky, securities, tax or other laws of various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain such limitations and other terms and conditions as the Board determines are necessary or desirable. All sub-plans shall be deemed a part of the Plan, but each sub-plan shall apply only to the Participants in the jurisdiction for which the sub-plan was designed.
  
 C. Unfunded Plan. The Plan shall be unfunded. Neither the Company, the Board nor the Committee shall be required to establish any special or separate fund or to segregate any assets to assure the performance of its obligations under the Plan.
  
 D. Recapitalizations. Each Award Agreement shall contain provisions required to reflect the provisions of Section XI.
  
 E. Delivery. Upon exercise of a right granted under this Plan, the Company shall issue Common Stock or pay any amounts due within a reasonable period of time thereafter. Subject to any statutory or regulatory obligations the Company may otherwise have, for purposes of this Plan, 30 days shall be considered a reasonable period of time.
  
 F. No Fractional Shares. No fractional shares of Common Stock shall be issued or delivered pursuant to the Plan. The Board shall determine whether cash, additional Awards or other securities or property shall be issued or paid in lieu of fractional shares of Common Stock or whether any fractional shares should be rounded, forfeited or otherwise eliminated.
  
 G. Other Provisions. The Award Agreements authorized under the Plan may contain such other provisions not inconsistent with this Plan, including, without limitation, restrictions upon the exercise of the Awards, as the Board may deem advisable.
  
 H. Section 409A. The Plan is intended to comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the “short-term deferral period” as defined in Section 409A of the Code shall not be treated as deferred compensation unless Applicable Laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Participant’s termination of Continuous Service shall instead be paid on the first payroll date after the six-month anniversary of the Participant’s separation from service (or the Participant’s death, if earlier). Notwithstanding the foregoing, neither the Company nor the Board shall have any obligation to take any action to prevent the assessment of any additional tax or penalty on any Participant under Section 409A of the Code and neither the Company nor the Board will have any liability to any Participant for such tax or penalty.
  
 I. Disqualifying Dispositions. Any Participant who shall make a “disposition” (as defined in Section 424 of the Code) of all or any portion of shares of Common Stock acquired upon exercise of an Incentive Stock Option within two years from the Grant Date of such Incentive Stock Option or within one year after the issuance of the shares of Common Stock acquired upon exercise of such Incentive Stock Option (a “Disqualifying Disposition”) shall be required to immediately advise the Company in writing as to the occurrence of the sale and the price realized upon the sale of such shares of Common Stock. 
  
  	 
	12
	 
 
	 

  
 J. Beneficiary Designation. Each Participant under the Plan may from time to time name any beneficiary or beneficiaries by whom any right under the Plan is to be exercised in case of such Participant’s death. Each designation will revoke all prior designations by the same Participant, shall be in a form reasonably prescribed by the Board and shall be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. 
  
 K. Expenses. The costs of administering the Plan shall be paid by the Company. 
  
 L. Severability. If any of the provisions of the Plan or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole or in part, such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions shall not be affected thereby. 
  
 M. Plan Headings. The headings in the Plan are for purposes of convenience only and are not intended to define or limit the construction of the provisions hereof. 
  
 N. Non-Uniform Treatment. The Board’s determinations under the Plan need not be uniform and may be made by it selectively among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Board shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements.
  
 XV. Termination or Suspension of the Plan. The Plan shall terminate automatically on May 15, 2028. No Award shall be granted pursuant to the Plan after such date, but Awards theretofore granted may extend beyond that date. The Board may suspend or terminate the Plan at any earlier date pursuant to Section XIII(A) hereof. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated.
  
 XVI. Choice of Law. The law of the State of Nevada shall govern all questions concerning the construction, validity and interpretation of this Plan, without regard to such state’s conflict of law rules.
  
 As adopted by the Board of Directors of BioCorRx Inc. on May 15, 2018.
  
  
  	 13Exhibit 4.2

 

 

 

THE ROYAL BANK OF SCOTLAND GROUP PLC

 

as Company

 

and

 

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

 

as Trustee

 

 

 

FIRST SUPPLEMENTAL INDENTURE

 

dated as of May 18, 2018

 

to the

 

AMENDED AND RESTATED INDENTURE

 

dated as of December 13, 2017

 

$1,750,000,000 4.892% Fixed Rate/Floating
Rate Notes due 2029

 

     

     

    

This FIRST SUPPLEMENTAL INDENTURE, dated
as of May 18, 2018, among THE ROYAL BANK OF SCOTLAND GROUP PLC, a corporation incorporated in Scotland with registered number SC045551,
as issuer (the “Company”) and THE BANK OF NEW YORK MELLON, acting through its London Branch, a banking corporation
duly organized and existing under the laws of the State of New York, as trustee (the “Trustee”) having its Corporate
Trust Office at One Canada Square, London E14 5AL.

 

WITNESSETH:

 

WHEREAS, the Company and the Trustee have
executed and delivered an amended and restated Indenture dated as of December 13, 2017 (the “Base Indenture”)
to provide for the issuance of the Company’s Senior Debt Securities from time to time;

 

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

 

WHEREAS, the Company desires to issue, as
a single series of Senior Debt Securities under the Base Indenture, $1,750,000,000 4.892% Fixed Rate/Floating Rate Notes due 2029
(the “Senior Notes”) to be issued pursuant to this First Supplemental Indenture dated as of May 18, 2018 (the
“First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”);

 

WHEREAS, this First Supplemental Indenture
shall amend and supplement the Base Indenture except where this First Supplemental Indenture only applies to the Senior Notes;
to the extent that the terms of the Base Indenture are inconsistent with the provisions of this First Supplemental Indenture, the
terms of this First Supplemental Indenture shall govern;

 

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

 

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

 

    	2

     

    

WHEREAS, the Company has requested that
the Trustee execute and deliver this First Supplemental Indenture, and whereas all actions required by it to be taken in order
to make this First 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 First Supplemental Indenture has been duly authorized in all respects; and

 

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 First Supplemental Indenture:

 

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

 

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

 

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

 

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

 

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

 

Article
2

THE SENIOR DEBT SECURITIES

 

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

 

(a)       The
title of the Senior Notes shall be the “4.892% Fixed Rate/Floating Rate Notes due 2029”;

 

(b)       The
aggregate principal amount of the Senior Notes that may be authenticated and delivered under the Indenture shall not initially
exceed $1,750,000,000 (except as otherwise provided in the Indenture);

 

    	3

     

    

(c)       Principal
on the Senior Notes shall be payable on May 18, 2029 (the “Maturity Date”), unless earlier redeemed in accordance
with the provisions set forth in Article 11 of the Indenture;

 

(d)       The
Senior Notes shall be issued in global registered form on or about May 18, 2018;

 

(e)       From
(and including) May 18, 2018, to (but excluding) May 18, 2028 (such period, the “Fixed Rate Period”), interest
on the Senior Notes will be payable at a rate of 4.892% per annum (the “Fixed Interest Rate”). During the Fixed
Rate Period, interest on the Senior Notes will be payable semi-annually in arrear on May 18 and November 18 of each year, beginning
on November 18, 2018 (each, a “Fixed Rate Period Interest Payment Date”) to (and including) May 18, 2028.

 

From (and including) May 18, 2028,
to (but excluding) the Maturity Date (such period, the “Floating Rate Period”), the interest rate on the Senior
Notes will be equal to the three-month U.S. dollar LIBOR, as determined by the Calculation Agent on the applicable Interest Determination
Date, plus 1.754% per annum (the “Floating Interest Rate”), accruing from May 18, 2028, to (but excluding) the
Maturity Date. During the Floating Rate Period, interest on the Senior Notes will be payable quarterly in arrear on August 18,
2028, November 18, 2028, February 18, 2029 and May 18, 2029, beginning on August 18, 2028, to and (including) the Maturity Date
(each, a “Floating Rate Period Interest Payment Date” and, together with each Fixed Rate Period Interest Payment
Date, each an “Interest Payment Date”) and will be reset quarterly on May 18, 2028, August 18, 2028, November
18, 2028 and February 18, 2029, beginning on May 18, 2028 (each an “Interest Reset Date”).

 

During the Fixed Rate Period:

 

(i)       Interest
will be calculated on the basis of twelve 30-day months or, in the case of an incomplete month, the actual number of days elapsed,
in each case assuming a 360-day year; and

 

(ii)       If
any scheduled interest payment date is not a business day, such interest payment date will be postponed to the next day that is
a business day, but interest on that payment will not accrue during the period from and after the scheduled interest payment date.

 

During the Floating Rate Period:

 

(i)       Interest
will be calculated on the basis of the actual number of days in each interest period, assuming a 360-day year. An interest

 

    	4

     

    

period will be the period beginning
on (and including) a Floating Rate Period Interest Payment Date and ending on (but excluding) the next succeeding Floating Rate
Period Interest Payment Date; provided that the first floating rate interest period will begin May 18, 2028 and will
end on (but exclude) the first Floating Rate Period Interest Payment Date.

 

(ii)       If
any scheduled Interest Reset Date or Floating Rate Period Interest Payment Date (other than the Maturity Date) is not a business
day, such Reset Date or Floating Rate Period Interest Payment Date will be postponed to the next day that is a business day;
provided that if that business day falls in the next succeeding calendar month, such Interest Reset Date or Floating Rate
Period Interest Payment Date will be the immediately preceding business day. If any such Floating Rate Period Interest Payment
Date (other than the Maturity Date) is postponed or brought forward as described above, the payment of interest due on such postponed
or brought forward Floating Rate Period Interest Payment Date will include interest accrued to but excluding such postponed or
brought forward Floating Rate Period Interest Payment Date;

 

(f)       The
regular record dates for the Senior Notes will be the 15th calendar day preceding each Interest Payment Date, whether or not a
business day;

 

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

 

(h)       The
form of the Senior Notes shall be evidenced by one or more global notes in registered form substantially in the form of Exhibit
A attached to this First Supplemental Indenture and made a part thereof.

 

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

 

(j)       The
Senior Notes shall not be redeemable except as provided in Article 11 of the Base Indenture as amended by ‎Section 3.07 and
‎Section 3.08 of this First Supplemental Indenture. The Senior Notes shall not be redeemable at the option of the Holders at
any time. In connection with any redemption of Senior Notes pursuant to Section 11.08 of the Base Indenture, the date referenced
therein shall be May 18, 2018.

 

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

 

    	5

     

    

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

 

(m)       The
principal amount of, and any accrued interest on, the Senior Notes shall be payable upon the declaration of acceleration thereof
pursuant to Section 5.02 of the Base Indenture, as amended by ‎Section 3.04 of this First Supplemental Indenture;

 

(n)       Additional
Amounts shall only be payable on the Senior Notes pursuant to Section 10.04 of the Base Indenture;

 

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

 

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

 

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

 

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

 

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

 

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

 

(u)       The
Calculation Agent for the Senior Notes is The Royal Bank of Scotland plc or its successor appointed by the Company, pursuant to
a calculation agent agreement expected to be entered into on May 18, 2018;

 

(v)       Subject
to ‎Section 2.01(w) below, LIBOR shall be determined by the Calculation Agent in accordance with the following provisions:

 

		i.	With respect to any Interest Determination Date, LIBOR will be the rate (expressed as a percentage per annum) for deposits
in U.S. dollars having a maturity of three months commencing on the related Interest Reset Date that appears on Reuters Page LIBOR01
as of 11:00 a.m., London time, on that Interest Determination Date. If no such rate appears, then LIBOR, in respect of that Interest
Determination Date,

 

    	6

     

    

will be determined in accordance
with the provisions described in (ii) below.

 

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

 

All percentages resulting from any calculation
of any interest rate on the Senior Notes will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point,
with five one-millionths of a percentage point rounded upward, and all dollar amounts would be rounded to the nearest cent, with
one-half cent being rounded upward;

 

(w)       Notwithstanding
the provisions described above under ‎Section 2.01(v) above, if the Company (in consultation with the Calculation Agent to
the extent practicable) determines that LIBOR has ceased to be published on Reuters Page LIBOR01 as a result of LIBOR ceasing to
be calculated or administered, then the following provisions will apply:

 

    	7

     

    

(i)       the
Company will use reasonable endeavors to appoint an Independent Adviser to determine a Successor Rate or, alternatively, if the
Independent Adviser determines that there is no Successor Rate, an Alternative Reference Rate, no later than 5 business days prior
to an Interest Determination Date (the “IA Determination Cut-off Date”), for purposes of determining the rate
of interest for a Floating Rate Interest Period;

 

(ii)       if
the Company is unable to appoint an Independent Adviser, or the Independent Adviser appointed by the Company fails to determine
a Successor Rate or an Alternative Reference Rate prior to the IA Determination Cut-off Date, then the Company (in consultation
with the Calculation Agent to the extent practicable and acting in good faith) may determine a Successor Rate, or if the Company
determines that there is no Successor Rate, an Alternative Reference Rate, for purposes of determining the rate of interest for
a Floating Rate Interest Period; provided, however, that if the Company is unable or unwilling to determine a Successor
Rate or an Alternative Reference Rate prior to an Interest Determination Date in accordance with this sub-paragraph (ii), the rate
of interest will be equal to the rate of interest in effect with respect to the immediately preceding Interest Determination Date,
or, in the case of the initial Interest Determination Date, the rate of interest will be equal to the Fixed Interest Rate.

 

If a Successor Rate or Alternative
Reference Rate is determined in accordance with the preceding provisions, such Successor Rate or Alternative Reference Rate shall
be substituted for LIBOR for all future Floating Rate Interest Periods.

 

If the Independent Adviser (in
consultation with the Company) or the Company, as applicable, determines that an Adjustment Spread is required to be applied to
the Successor Rate or the Alternative Reference Rate, as applicable, and determines the quantum of, or a formula or methodology
for determining, such Adjustment Spread, then such Adjustment Spread shall be applied to the Successor Rate or the Alternative
Reference Rate, as applicable. If the Independent Adviser is, or the Company is, as the case may be, unable to determine the quantum
of, or a formula or methodology for determining, such Adjustment Spread, then such Successor Rate or Alternative Reference Rate,
as applicable, will apply without an Adjustment Spread.

 

If the Independent Adviser or
the Company, as the case may be, determines a Successor Rate or Alternative Reference Rate or, in each case, any Adjustment Spread,
in accordance with the above provisions, the Independent

 

    	8

     

    

Adviser or the Company may also,
following consultation with the Calculation Agent to the extent practicable, specify changes to the Successor Rate or Alternative
Reference Rate, as applicable, or, in each case, the Adjustment Spread, as well as the day count fraction, business day convention,
the definition of business day, the Interest Determination Date or the Floating Rate Period Interest Payment Date, and related
provisions and definitions. All such changes can be made in order to follow market practice in relation to the Successor Rate or
Alternative Reference Rate and such changes shall apply to the Senior Notes for all future Floating Rate Interest Periods. Upon
receipt of satisfactory documentation, the Trustee shall, at our direction and expense, effect such amendments as may be required
in order to give effect to this ‎Section 2.01(w) pursuant to a supplemental indenture or an amendment to the Indenture, or
issuances and authentication of new global or definitive notes in respect of the Senior Notes, and the Trustee shall not be liable
to any party for any consequences thereof, save as provided in the Indenture and the Senior Notes. No Holder consent will be solicited
or required in connection with effecting the Successor Rate or Alternative Reference Rate or related changes, including for the
execution of any documents, amendments to the Indenture or Senior Notes or other steps by the Company, the Trustee, the Calculation
Agent or the principal paying agent (if required). The Company will, promptly following the determination of any Successor Rate,
Alternative Reference Rate or Adjustment Spread, give notice thereof and of any changes to the terms of the Senior Notes to the
Trustee, the Calculation Agent, the principal paying agent and the Holders, in accordance with Section 1.05 and Section 1.06 of
the Base Indenture. By its acquisition of Senior Notes, each Holder and Beneficial Owner of the Senior Notes and each subsequent
Holder and Beneficial Owner acknowledges, accepts, agrees to be bound by, and consents to, the Independent Adviser or the Company’s,
as applicable, determination of the Successor Rate, Alternative Reference Rate or Adjustment Spread, as applicable, any changes
in connection therewith as contemplated by this provision, and to any amendment or alteration of the terms of the Senior Notes,
including an amendment of the amount of interest due on the Senior Notes, as may be required in order to give effect to this ‎Section
2.01(w). The Trustee shall be entitled to rely on this deemed consent in connection with any supplemental indenture or amendment
which may be necessary to effect the Successor Rate or Alternative Reference Rate.

 

By its acquisition of Senior
Notes, each Holder of Senior Notes waives any and all claims against the Trustee, the Calculation Agent and the principal paying
agent for, agrees not to initiate a suit against the Trustee, the Calculation Agent and the principal paying agent in respect of,
and agrees that neither the Trustee, the Calculation Agent or the principal paying agent will be liable for, any action that the
Trustee, the Calculation Agent or the paying agent, as the case may be, takes, or abstains from taking, in each case in accordance
with this

 

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‎Section 2.01(w). By its
acquisition of Senior Notes, each Holder of Senior Notes agrees that neither the Trustee, the Calculation Agent or the principal
paying agent will have any obligation to determine any Successor Rate, Alternative Reference Rate or Adjustment Spread (including
any adjustments thereto), including in the event of any failure by us to determine any Successor Rate, Alternative Reference Rate
or Adjustment Spread.

 

An Independent Adviser appointed
pursuant to this section shall act in good faith and (in the absence of bad faith, gross negligence or willful misconduct) shall
have no liability whatsoever to the Company, the Trustee, the Calculation Agent or any Holder or Beneficial Owner for any determination
made by it or for any advice given to the Company in connection with any determination made by the Company, pursuant to this ‎Section
2.01(w).

 

No Successor Rate or Alternative
Reference Rate will be adopted pursuant to this ‎Section 2.01(w), nor will any other amendment to the terms of the Senior Notes
be made, if and to the extent that, in the Company’s determination, the same could reasonably be expected to prejudice the
qualification of the Senior Notes as the Company’s and/or the Regulatory Group’s (A) own funds and eligible liabilities
and/or (B) loss absorbing capacity instruments.

 

(x)       The
Events of Default on the Senior Notes are as set forth in Section 5.01 of the Base Indenture as amended by ‎Section 3.03 of
this First Supplemental Indenture; and

 

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

 

Article
3

AMENDMENTS TO THE BASE INDENTURE

 

Section 3.01.Addition of Definitions.
With respect to the Senior Notes only, Section 1.01 of the Base Indenture is amended to include the following

 

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definitions (which shall be deemed
to arise in Section 1.01 in their proper alphabetical order):

 

“Adjustment
Spread” means a spread (which may be positive or negative) or formula or methodology for calculating a spread, which
the Independent Adviser (in consultation with the Company) or the Company, as applicable, determines is required to be applied
to the Successor Rate or the Alternative Reference Rate, as applicable, as a result of the replacement of LIBOR with the Successor
Rate or the Alternative Reference Rate, as applicable, and is the spread, formula or methodology which:

 

(i)       in
the case of a Successor Rate, is recommended in relation to the replacement of LIBOR with the Successor Rate by any Relevant Nominating
Body;

 

(ii)       in
the case of a Successor Rate for which no such recommendation has been made or in the case of an Alternative Reference Rate, the
Independent Adviser (in consultation with the Company) or the Company, as applicable, determines is recognized or acknowledged
as being in customary market usage for the purposes of determining floating rates of interest in respect of securities denominated
in U.S. dollars, where such rate has been replaced by the Successor Rate or the Alternative Reference Rate, as applicable; or

 

(iii)       if
no such customary market usage is recognized or acknowledged, the Independent Adviser in its discretion (in consultation with the
Company), or the Company in its discretion, as applicable, determines (acting in good faith) to be appropriate.

 

“Alternative
Reference Rate” means the reference rate (and related alternative screen page or source, if available) that the Independent
Adviser or the Company (as applicable) determines has replaced LIBOR in customary market usage for the purposes of determining
floating rates of interest in respect of securities denominated in U.S. dollars, or, if the Independent Adviser or the Company
(as applicable) determines that there is no such rate, such other rate as the Independent Adviser or the Company (as applicable)
determines, each as in our own discretion acting in good faith, is most comparable to LIBOR.

 

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“Beneficial
Owners” shall mean (a) if the Senior Debt Securities are in global form, the beneficial owners of the Senior Debt Securities
(and any interest therein) and (b) if the Senior Debt Securities are held in definitive form, the Holders in whose names the Senior
Debt Securities are registered in the Senior Debt Security Register and any beneficial owners holding an interest in such Senior
Debt Securities held in definitive form.

 

“business
day” means any day, other than Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorised or required by law or regulation to close in the City of New York or in the City of London.

 

“Calculation
Agent” shall mean National Westminster Bank Plc or its successor appointed by the Company, pursuant to a calculation
agent agreement expected to be entered into on May 18, 2018.

 

“Default”
has the meaning set forth in Section 5.03.

 

“Event
of Default” has the meaning set forth in Section 5.01.

 

“First
Supplemental Indenture” means this first supplemental indenture under the Amended and Restated Indenture, dated as of
May 18, 2018, among the Company and the Trustee.

 

“Fixed
Rate Period” has the meaning set forth in Section 2.01 of the First Supplemental Indenture.

 

“Floating
Rate Interest Period” means during the Floating Rate Period, the period beginning on (and including) a Floating Rate
Period Interest Payment Date and ending on (but excluding) the next succeeding Floating Rate Period Interest Payment Date;
provided that the first floating rate interest period will begin on May 18, 2028 and will end on (but exclude) the first
Floating Rate Period Interest Payment Date.

 

“Floating
Rate Period Interest Payment Date” has the meaning set forth in Section 2.01 of the First Supplemental Indenture.

 

“Independent
Adviser” means an independent financial institution of international repute or other independent financial

 

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adviser experienced
in the international capital markets, in each case appointed by the Company at its own expense.

 

“Interest
Determination Date” has the meaning set forth in Section 2.01 of the First Supplemental Indenture.

 

“Interest
Payment Date” has the meaning set forth in Section 2.01 of the First Supplemental Indenture.

 

“Issue
Date” means May 18, 2018.

 

“LIBOR”
has the meaning set forth in Section 2.01 of the First Supplemental Indenture.

 

“Loss
Absorption Disqualification Event” shall be deemed to have occurred if:

 

(i)       at
the time that any Loss Absorption Regulation becomes effective, and as a result of such Loss Absorption Regulation becoming so
effective, in each case with respect to the Company and/or the Regulatory Group, on or after the issue date of the Senior Notes,
the Senior Notes are or, in the Company’s opinion or in the opinion of the PRA are likely to be fully or partially excluded
from the Company’s and/or the Regulatory Group’s minimum requirements for (A) own funds and eligible liabilities and/or
(B) loss absorbing capacity instruments; or

 

(ii)       as
a result of any amendment to, or change in, any Loss Absorption Regulation, or any change in the application or official interpretation
of any Loss Absorption Regulation, in any such case becoming effective on or after the issue date of the Senior Notes, the Senior
Notes are or, in the Company’s opinion or in the opinion of the PRA are likely to be, fully or partially excluded from the
Company’s and/or the Regulatory Group’s minimum requirements for (A) own funds and eligible liabilities and/or (B)
loss absorbing capacity instruments,

 

in each case as
such minimum requirements are applicable to the Company and/or the Regulatory Group and determined in accordance with, and pursuant
to, the relevant Loss Absorption Regulations; provided that in the case of (i) and (ii) above, a Loss Absorption Disqualification
Event shall not occur where the exclusion of the Senior Notes from the relevant minimum requirement(s) is due to the remaining
maturity of the Senior Notes

 

    	13

     

    

being less than any
period prescribed by any applicable eligibility criteria for such minimum requirements under the relevant Loss Absorption Regulations
effective with respect to the Company and/or the Regulatory Group on the issue date of the Senior Notes.

 

“Loss
Absorption Regulations” means, at any time, the laws, regulations, requirements, guidelines, rules, standards and policies
relating to minimum requirements for own funds and eligible liabilities and/or loss absorbing capacity instruments of the United
Kingdom, the PRA, the United Kingdom resolution authority, the Financial Stability Board and/or of the European Parliament or of
the Council of the European Union then in effect in the United Kingdom including, without limitation to the generality of the foregoing,
any delegated or implementing acts (such as regulatory technical standards) adopted by the European Commission and any regulations,
requirements, guidelines, rules, standards and policies relating to minimum requirements for own funds and eligible liabilities
and/or loss absorbing capacity instruments adopted by the PRA (whether or not such regulations, requirements, guidelines, rules,
standards or policies are applied generally or specifically to the Company or to the Regulatory Group).

 

“Maturity
Date” has the meaning set forth in Section 2.01 of the First Supplemental Indenture.

 

“PRA”
means the UK Prudential Regulation Authority and/or such other governmental authority in the United Kingdom having primary supervisory
authority with respect to the Company’s business.

 

“Regulatory
Group” means the Company, the Company’s subsidiary undertakings, participations, participating interests and any
subsidiary undertakings, participations or participating interests held (directly or indirectly) by any of the Company’s
subsidiary undertakings from time to time and any other undertakings from time to time consolidated with the Company for regulatory
purposes, in each case in accordance with the rules and guidance of the PRA then in effect.

 

“Relevant
Nominating Body” means, in respect of a reference rate:

 

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(i)       the
central bank, reserve bank, monetary authority or any similar institution for the currency to which such reference rate relates,
or any other central bank or other supervisory authority which is responsible for supervising the administrator of such reference
rate; or

 

(ii)       any
working group or committee sponsored by, chaired or co-chaired by or constituted at the request of (a) the central bank, reserve
bank, monetary authority or any similar institution for the currency to which such reference rate relates, (b) any central bank
or other supervisory authority which is responsible for supervising the administrator of such reference rate, (c) a group of the
aforementioned central banks or other supervisory authorities, (d) the International Swaps and Derivatives Association, Inc. or
any part thereof, or (e) the Financial Stability Board or any part thereof.

 

“Reuters
Page LIBOR01” means the display that appears on Reuters Page LIBOR01 or any page as may replace such page on such service
(or any successor service) for the purpose of displaying LIBOR of major banks for U.S. dollars.

 

“Senior
Creditors” means creditors of the Company whose claims are admitted to proof in the winding up, liquidation, administration
or other insolvency procedure of the Company and who are unsubordinated creditors of the Company.

 

“Senior
Notes” has the meaning set forth in the recitals to the First Supplemental Indenture.

 

“Successor
Rate” means the reference rate (and related alternative screen page or source, if available) that the Independent Adviser
or the Company (as applicable) determines is a successor to or replacement of LIBOR which is recommended by any Relevant Nominating
Body.

 

Section 3.02.Satisfaction and Discharge.
With respect to the Senior Notes only, Section 4.01 of the Base Indenture is amended and restated in its entirety and shall read
as follows:

 

Section 4.01.Satisfaction
and Discharge of Amended and Restated Indenture. This Amended and Restated Indenture shall upon Company Request cease to be
of further effect with respect to the Senior Debt Securities (except as to any surviving rights of registration of transfer

 

    	15

     

    

or exchange of the Senior Debt
Securities herein expressly provided for), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Amended and Restated Indenture with respect to the Senior Debt Securities when:

 

		(a)	all Senior Debt Securities theretofore authenticated and delivered (other than (A) Senior Debt Securities which have been destroyed,
lost or stolen and which have been replaced or paid as provided in Section 3.06 and (B) Senior Debt
Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust, as provided in Section 10.03) have been delivered
to the Trustee for cancellation;

 

		(b)	the Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to the Senior Debt 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 this Amended and Restated Indenture with respect to
the Senior Debt Securities have been complied with.

 

Notwithstanding any satisfaction
and discharge of this Amended and Restated Indenture, the obligations of the Company to the Trustee under Section 6.07, the obligations
of the Trustee to any Authenticating Agent under Section 6.14 and the last paragraph of Section 10.03, shall survive such satisfaction
and discharge, including any termination under any bankruptcy law.

 

Section 3.03.Events of Default.
With respect to the Senior Notes only, Section 5.01 of the Base Indenture is amended and restated in its entirety and shall read
as follows:

 

Section 5.01.Events of
Default. “Event of Default”, wherever used herein with respect to the Senior Debt Securities, means the
making of an order by a court of competent jurisdiction which is not successfully appealed within 30 days of the making of such
order, or valid adoption by the shareholders of the Company of an effective resolution, for the winding-up of the Company (other
than under or in connection with a scheme of amalgamation or reconstruction not involving a bankruptcy or insolvency). The exercise
of any U.K. bail-in power by the relevant U.K.

 

    	16

     

    

resolution authority shall not
constitute a default or an Event of Default under this Section 5.01 or a Default under Section 5.03.

 

Section 3.04.Acceleration of Maturity;
Rescission and Annulment. With respect to the Senior Notes only, Section 5.02 of the Base Indenture is amended by adding the
following at the end of the section:

 

If the Senior Debt Securities
become due and payable and the Company fails to pay such amounts (or any damages awarded for breach of any obligations in respect
of the Senior Debt Securities or this Amended and Restated Indenture) forthwith upon demand, notwithstanding the continuing right
of any Holder to receive payment of the principal of and interest on the Senior Debt Securities, or to institute suit for the enforcement
of any such payment, each as provided for under Section 316(b) (Directions and Waivers by Bondholders; Prohibition of Impairment
of Holders’ Right to Repayment) of the Trust Indenture Act, the Trustee, in its own name and as trustee of an express
trust, may institute proceedings for the winding up of the Company, and/or prove in a winding up of the Company for all such due
and payable amounts (including any damages awarded for breach of any obligations in respect of the Senior Debt Securities or this
Amended and Restated Indenture) but no other remedy shall be available to the Trustee or the Holders.

 

Section 3.05.Defaults; Collection
of Indebtedness and Suits for Enforcement by Trustee. With respect to the Senior Notes only, Section 5.03 of the Base Indenture
is amended and restated in its entirety and shall read as follows:

 

Section 5.03.Defaults;
Collection of Indebtedness and Suits for Enforcement by Trustee. “Default” wherever used herein with respect
to the Senior Debt Securities of a particular series, means any one of the following events (subject as provided below, whatever
the reason for such Default and whether it shall be voluntary or involuntary or be effected by operation of law pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

		(a)	the Company fails to pay any installment of interest in respect of the Senior Debt Securities of such series on or before the
relevant Interest Payment Date and such failure continues for 14 days; or

 

		(b)	the Company fails to pay all or any part of the principal amount of the Senior Debt Securities of such series when it otherwise
becomes due and payable, whether upon redemption or otherwise, and such failure continues for 7 days.

 

    	17

     

    

If a Default occurs and is continuing,
the Trustee may commence a proceeding for the winding up of the Company, provided that the Trustee may not declare the principal
amount of any Outstanding Senior Debt Securities of any series to be due and payable.

 

Subject to applicable law, the Trustee
(acting on behalf of the Holders) and the Holders of the Senior Debt Securities by their acceptance thereof will be deemed to have
waived to the fullest extent permitted by law any right of set-off, counterclaim or combination of accounts with respect to the
Senior Debt Securities, the First Supplemental Indenture or this Amended and Restated Indenture (or between the Company’s
obligations under or in respect of any Senior Debt Security and any liability owed by a Holder to the Company) that they (or the
Trustee acting on their behalf) might otherwise have against the Company, whether before or during any winding-up, liquidation
or administration of the Company. Notwithstanding the above, if any of such rights and claims of any such Holder (or the Trustee
acting on behalf of such Holders) against the Company are discharged by set-off, such Holder (or the Trustee acting on behalf of
such Holders) will immediately pay an amount equal to the amount of such discharge to the Company or, in the event of any winding-up,
liquidation or administration of the Company, the liquidator or administrator (or other relevant insolvency official), as the case
may be, to be held on trust for the Senior Creditors and until such time as payment is made will hold a sum equal to such amount
on trust for the Senior Creditors and accordingly such discharge shall be deemed not to have taken place.

 

Notwithstanding the foregoing and
any other provisions, a failure to make any payment on the Senior Debt Securities of any series shall not be a Default if it is
withheld or refused, upon independent counsel’s advice delivered to the Trustee, in order to comply with any applicable fiscal
or other law or regulation or order of any court of competent jurisdiction, provided, however, that the Trustee may require the
Company to take any action which, upon independent counsel’s advice delivered to the Trustee, is appropriate and reasonable
in the circumstances (including proceedings for a court declaration), in which case the Company shall immediately take and expeditiously
proceed with the action and shall be bound by any final resolution resulting therefrom. If any such action results in a determination
that the relevant payment can be made without violating any applicable law, regulation or order then the payment shall become due
and payable on the expiration of the applicable 14-day or seven-day period after the Trustee gives written notice to the Company
informing it of such determination.

 

    	18

     

    

Upon the occurrence of any Event
of Default or Default, the Company shall give prompt written notice to the Trustee. Except as otherwise provided in this Article
5, the Trustee may proceed to protect and enforce its rights and the rights of the Holders of the Senior Debt Securities whether
in connection with any breach by the Company of its obligations under the Senior Debt Securities, this Amended and Restated Indenture
or otherwise, including by judicial proceedings, provided that the Company shall not, as a result of any such action by the Trustee,
be required to pay any amount representing or measured by reference to principal or interest on the Senior Debt Securities of any
series prior to any date on which the principal of, or any interest on, the Senior Debt Securities of any such series would have
otherwise been payable.

 

No recourse for the payment of the
principal of (or premium, if any) or interest, if any, on any Senior Debt Security, or for any claim based thereon and no recourse
under or upon any obligation, covenant or agreement of the Company in this Amended and Restated Indenture, or in any Senior Debt
Security, or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder,
officer or director, past, present or future, of the Company or of any successor corporation of the Company, either directly or
through the Company or any successor corporation whether by virtue of any constitution, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise; it being expressly understood that to the extent lawful all such liability is hereby
expressly waived and released as a condition of, and as a consideration for, the execution of this Amended and Restated Indenture
and the issue of the Senior Debt Securities.

 

No remedy against the Company, other
than as referred to in Article 5 of this Amended and Restated Indenture, shall be available to the Trustee or the Holders of the
Senior Debt Securities whether for the recovery of amounts owing in respect of such Senior Debt Securities or under this Amended
and Restated Indenture or in respect of any breach by the Company of its obligations under this Amended and Restated Indenture
or in respect of the Senior Debt Securities, except that the Trustee and the Holders shall have such rights and powers as they
are entitled to have under the Trust Indenture Act, including the Trustee’s prior lien on any amounts collected following
a Default or Event of Default for payment of the Trustee’s fees and expenses, and provided that any payments on the Senior
Debt Securities are subject to the subordination provisions set forth in this Amended and Restated Indenture.

 

    	19

     

    

Notwithstanding any contrary provisions,
nothing shall impair the right of a Holder, absent the Holder’s consent, to sue for any payments due but unpaid with respect
to the Senior Debt Securities.

 

Section 3.06.With respect to the Senior
Notes only, Sections 5.07(a), 5.07(b), 5.11, 5.13, 6.02, 6.03(i), 8.03(c) of the Base Indenture shall be amended to add the words
“or Default” after each appearance of the words “Event of Default”.

 

Section 3.07.Optional Redemption
Due to Changes in Tax Treatment. With respect to the Senior Notes only, Section 11.08 of the Base Indenture is amended to replace
in the first paragraph (i) the word “Unless” with the words “Subject to Sections 11.04 and 11.11 and unless”
and (ii) the words “on any Interest Payment Date,” with “at any time during the Fixed Rate Period and thereafter
only on a Floating Rate Period Interest Payment Date”.

 

Section 3.08.Redemption of Senior
Debt Securities. With respect to the Senior Notes only, Article 11 of the Base Indenture is amended to amend and restate Section
11.04 and to add a Section 11.09, Section 11.10 and Section 11.11, each of which shall read as follows:

 

Section 11.04. Notice of
Redemption. Unless otherwise provided as contemplated by Section 3.01 with respect to any series of Senior Debt Securities,
notice of redemption shall be given (i) not less than 5 business days nor more than 60 calendar days prior to the Redemption Date
to each Holder of Senior Debt Securities to be redeemed and (ii) to Trustee at least 5 business days prior to such date, unless
a shorter notice period shall be satisfactory to the Trustee in the manner and to the extent provided in Section 1.06.

 

Any redemption notice will state:

 

		a)	the Redemption Date;

 

		b)	the Redemption Price;

 

c)
    that, and subject to what conditions, the Redemption Price will become due and payable on the Redemption Date and that payments
will cease to accrue on such date;

 

d)
    the place or places at which each Holder may obtain payment of the Redemption Price; and

 

    	20

     

    

e)
    the CUSIP, Common Code and/or ISIN number or numbers, if any, with respect to such series of Senior Debt Securities.

 

Notice of redemption of Senior
Debt Securities to be redeemed at the selection of the Company shall be given by the Company or, at the Company’s Request,
by the Trustee in the name and at the expense of the Company.

 

Section
11.09.Optional Redemption. Subject to Section 11.11, the Company may, at the Company’s option and in its
sole discretion, redeem the Senior Debt Securities, in whole but not in part, on May 18, 2028 (the “Optional
Redemption Date”), at a Redemption Price equal to 100% of the principal amount of the Senior Debt Securities of any
series together with any accrued but unpaid interest to, but excluding, the Redemption Date.

 

Section 11.10. Loss Absorption
Disqualification Event Redemption. Subject to Sections 11.04 and 11.11, the Company may, at the Company’s option and
in its sole discretion, redeem the Senior Debt Securities, in whole but not in part, at any time during the Fixed Rate Period and
thereafter only on a Floating Rate Period Interest Payment Date, at a Redemption Price equal to 100% of the principal amount of
the Senior Debt Securities of any series together with any accrued but unpaid interest to, but excluding, the Redemption Date,
if the Company determines that a Loss Absorption Disqualification Event has occurred and is continuing.

 

Before the publication of any notice
of redemption pursuant to a Loss Absorption Disqualification Event, the Company shall deliver to the Trustee a certificate signed
by two authorised signatories of the Company stating that, in such signatories’ belief, the condition for redemption has
occurred and is continuing as at the date of the certificate, and the Trustee is entitled to conclusively rely on and shall accept
such certificate as sufficient evidence of such occurrence, in which event it shall be conclusive and binding on the Holders.

 

Section 11.11. Conditions
to Redemption and Repurchase. Notwithstanding any other provision, the Company may only redeem the Senior Debt Securities of
any series prior to the relevant Maturity Date (as provided for in Section 11.08, Section 11.09 and Section 11.10) or repurchase
the Senior Debt Securities of any series (and give notice thereof to the Holders of such series of Senior Debt Securities in the
case of redemption) if the Company has obtained the prior consent of the PRA, to the extent such consent is at the relevant time
and in the relevant

 

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circumstances required (if at
all) by the Loss Absorption Regulations or applicable laws or regulations in effect in the United Kingdom.

 

Article
4

MISCELLANEOUS

 

Section 4.01.Effect of Supplemental
Indenture. Upon the execution and delivery of this First Supplemental Indenture by the Company and the Trustee, and the delivery
of the documents referred to in ‎Section 4.02 herein, the Base Indenture shall be amended and supplemented in accordance herewith,
and this First Supplemental Indenture shall form a part of the Base Indenture for all purposes in respect of the Senior Notes.

 

Section 4.02.Other Documents to
Be Given to the Trustee. As specified in Section 9.03 of the Base Indenture and subject to the provisions of Section 6.03 of
the Base Indenture, the Trustee shall be entitled to receive an Officer’s Certificate and an Opinion of Counsel stating the
recitals contained in Section 1.02 of the Base Indenture, and in the case of such Opinion of Counsel, that this First Supplemental
Indenture is authorized or permitted by the Base Indenture, conforms to the requirements of the Trust Indenture Act, and (subject
to Section 1.03 of the Base Indenture) constitutes valid and binding obligations of the Company enforceable in accordance with
their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts
of reasonableness and equitable principles of general applicability and may be subject to possible judicial or regulatory actions
giving effect to governmental actions or foreign laws affecting creditors’ rights, as conclusive evidence that this First
Supplemental Indenture complies with the applicable provisions of the Base Indenture.

 

Section 4.03.Confirmation of Indenture.
The Base Indenture and this First Supplemental Indenture with respect to the Senior Notes, is in all respects ratified and confirmed,
including without limitation Section 6.07 and Article 12 of the Base Indenture, and the Base Indenture, this First Supplemental
Indenture and all indentures supplemental thereto shall, in respect of the Senior Notes, be read, taken and construed as one and
the same instrument. This First Supplemental Indenture constitutes an integral part of the Base Indenture with respect to the Senior
Notes. In the event of a conflict between the terms and conditions of the Base Indenture and the terms and conditions of this First
Supplemental Indenture, the terms and conditions of this First Supplemental Indenture shall prevail with respect to the Senior
Notes.

 

Section 4.04.Concerning the Trustee.
The Trustee does not make any representations as to the validity or sufficiency of this First Supplemental

 

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Indenture. The recitals and statements
herein are deemed to be those of the Company and not the Trustee. In entering into this First Supplemental Indenture, the Trustee
shall be entitled to the benefit of every provision of the Base Indenture relating to the conduct of or affecting the liability
of or affording protection to the Trustee.

 

Section 4.05.Governing Law.
This First Supplemental Indenture and the Senior Notes shall be governed by and construed in accordance with the laws of the State
of New York, irrespective of conflicts of laws principles, except as stated in Section 1.12 of the Base Indenture, and except that
the authorization and execution by the Company of this First Supplemental Indenture and the Senior Notes shall be governed by (in
addition to the laws of the State of New York relevant to execution) the respective jurisdictions of the Company and the Trustee,
as the case may be.

 

Section 4.06.Reparability.
In case any provision contained in this First Supplemental Indenture 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 4.07.Counterparts.
This First Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts
shall together constitute but one and the same instrument.

 

[Signature Page Follows]

 

    	23

     

    

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

 

	 	THE ROYAL BANK OF SCOTLAND GROUP PLC, as the Company
	 	 
	 	By:	/s/ Robert Begbie
	 	 	Name:	Robert Begbie
	 	 	Title:	Treasurer

 

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

 

	 

[Signature Page to First Supplemental
Indenture]

 

    	24

     

    

EXHIBIT A

 

FORM OF SENIOR NOTES

 

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

 

CUSIP No. 780097 BG5

ISIN No. US780097BG51

 

THE ROYAL BANK OF SCOTLAND GROUP plc

 

4.892%
Fixed rate/floating rate Notes due 2029

 

	No. [●]	$[●]

 

THE ROYAL BANK OF SCOTLAND GROUP plc (herein
called the “Company,” which term includes any successor person under the Indenture (as defined on the reverse
hereof)), for value received, hereby promises to pay to CEDE & CO., or registered assignees, the principal sum of $[●]
([●] million dollars) on May 18, 2029 (the “Maturity Date”), or on such earlier date as the principal
hereof may become due in accordance with the terms hereof and to pay interest thereon:

 

(1) from (and including) May 18, 2018 (the
“Issue Date”), to (but excluding) May 18, 2028 (such period, the “Fixed Rate Period”), semi-annually
in arrear on May 18 and November 18 of each year, beginning on November 18, 2018, to (and including) May 18, 2028 (each, a “Fixed
Rate Period Interest Payment Date”), at a rate of 4.892% per annum (the “Fixed Interest Rate”); and

 

(2) from (and including) May 18, 2028 to
(but excluding) the Maturity Date (such period, the “Floating Rate Period”), quarterly in arrear on August 18,
2028, November 18, 2028, February 18, 2029 and May 18, 2029, beginning on August 18, 2028, to (and including) the Maturity Date
(each, a “Floating Rate Period Interest Payment Date”

 

    
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and, together with each Fixed Rate Period
Interest Payment Date, each an “Interest Payment Date”), equal to the three-month U.S. dollar London interbank
offered rate (“LIBOR”), as determined by the Calculation Agent on the applicable Interest Determination Date,
plus 1.754% per annum, accruing from May 18, 2028, to (but excluding) the Maturity Date (the “Floating Interest Rate”)
and which interest rate will be reset quarterly on May 18, 2028, August 18, 2028, November 18, 2028 and February 18, 2029, beginning
on May 18, 2028 (each an “Interest Reset Date”).

 

“Interest Determination Date”
means the second London banking day preceding each applicable Interest Reset Date.

 

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

 

Subject to the provisions below, LIBOR shall
be determined by the Calculation Agent in accordance with the following provisions:

 

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

 

		ii.	With respect to an Interest Determination Date on which no rate appears on Reuters Page LIBOR01 (as defined below), the calculation
agent will request the principal London offices of each of four major reference banks in the London interbank market, as selected
and identified by the Company, to provide its offered quotation (expressed as a percentage per annum) for deposits in U.S. dollars
for the period of three months, commencing on the related Interest Reset Date, to prime banks in the London interbank market at
approximately 11:00 a.m., London time, on that Interest Determination Date and in a principal amount that is representative for
a single transaction in U.S. dollars in that market at that time. If at least two quotations are provided, then LIBOR on that Interest
Determination Date will be the arithmetic mean of those quotations. If fewer than two quotations are provided, then LIBOR on the
Interest Determination Date will be the arithmetic mean of the rates quoted at approximately 11:00 a.m., in the City of New York,
on the Interest Determination Date by three major banks in the City of New York, as selected and identified by the Company, for
loans in U.S. dollars to leading European banks, for a period of three months, commencing on the related Interest Reset Date, and
in a principal amount that is representative for a single transaction

 

    
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in U.S. dollars in that market
at that time. If at least two such rates are so provided, LIBOR on the Interest Determination Date will be the arithmetic mean
of such rates. If fewer than two such rates are so provided, LIBOR on the Interest Determination Date will be LIBOR in effect with
respect to the immediately preceding Interest Determination Date or, in the case of the initial Interest Determination Date, such
rate as may be determined by such alternate method as reasonably selected by the Calculation Agent.

 

“Reuters Page LIBOR01”
means the display that appears on Reuters Page LIBOR01 or any page as may replace such page on such service (or any successor service)
for the purpose of displaying LIBOR of major banks for U.S. dollars.

 

All percentages resulting from any calculation
of any interest rate on this Senior Note will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point,
with five one-millionths of a percentage point rounded upward, and all dollar amounts would be rounded to the nearest cent, with
one-half cent being rounded upward.

 

Notwithstanding the provisions relating
to the determination of LIBOR described above, if the Company (in consultation with the Calculation Agent to the extent practicable)
determines that LIBOR has ceased to be published on Reuters Page LIBOR01 as a result of LIBOR ceasing to be calculated or administered,
then the following provisions will apply:

 

		(1)	the Company will use reasonable endeavors to appoint an Independent Adviser to determine a Successor Rate or, alternatively,
if the Independent Adviser determines that there is no Successor Rate, an Alternative Reference Rate, no later than 5 business
days prior to an Interest Determination Date (the “IA Determination Cut-off Date”), for purposes of determining
the rate of interest for the Floating Rate Interest Period;

 

		(2)	if the Company is unable to appoint an Independent Adviser, or the Independent Adviser appointed by the Company fails to determine
a Successor Rate or an Alternative Reference Rate prior to the IA Determination Cut-off Date, then the Company (in consultation
with the Calculation Agent to the extent practicable and acting in good faith) may determine a Successor Rate, or if the Company
determines that there is no Successor Rate, an Alternative Reference Rate, for purposes of determining the rate of interest for
a Floating Rate Interest Period; provided, however, that if the Company is unable or unwilling to determine a Successor
Rate or an Alternative Reference Rate prior to an Interest Determination Date in accordance with this sub-paragraph (2), the rate
of interest will be equal to the rate of interest in effect with respect to the immediately preceding Interest Determination Date,
or, in the case of the initial Interest Determination Date, the rate of interest will be equal to the Fixed Interest Rate.

 

    
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If a Successor Rate or Alternative Reference
Rate is determined in accordance with the preceding provisions, such Successor Rate or Alternative Reference Rate shall be substituted
for LIBOR for all future Floating Rate Interest Periods.

 

If the Independent Adviser (in consultation
with the Company) or the Company, as applicable, determines that an Adjustment Spread is required to be applied to the Successor
Rate or the Alternative Reference Rate, as applicable, and determines the quantum of, or a formula or methodology for determining,
such Adjustment Spread, then such Adjustment Spread shall be applied to the Successor Rate or the Alternative Reference Rate, as
applicable. If the Independent Adviser is, or the Company is, as the case may be, unable to determine the quantum of, or a formula
or methodology for determining, such Adjustment Spread, then such Successor Rate or Alternative Reference Rate, as applicable,
will apply without an Adjustment Spread.

 

If the Independent Adviser or the Company,
as the case may be, determines a Successor Rate or Alternative Reference Rate or, in each case, any Adjustment Spread, in accordance
with the above provisions, the Independent Adviser or the Company may also, following consultation with the Calculation Agent to
the extent practicable, specify changes to the Successor Rate or Alternative Reference Rate, as applicable, or, in each case, the
Adjustment Spread, as well as the day count fraction, business day convention, the definition of business day, the Interest Determination
Date or the Floating Rate Period Interest Payment Date, and related provisions and definitions. All such changes can be made in
order to follow market practice in relation to the Successor Rate or Alternative Reference Rate and such changes shall apply for
all future Floating Rate Interest Periods. Upon receipt of satisfactory documentation, the Trustee shall, at our direction and
expense, effect such amendments as may be required in order to give effect to this provision pursuant to a supplemental indenture
or an amendment to the Indenture, or issuances and authentication of new global or definitive notes in respect of this Senior Notes,
and the Trustee shall not be liable to any party for any consequences thereof, save as provided in the Indenture and this Senior
Note. No Holder consent will be solicited or required in connection with effecting the Successor Rate or Alternative Reference
Rate or related changes, including for the execution of any documents, amendments to the Indenture or this Senior Note or other
steps by the Company, the Trustee, the Calculation Agent or the principal paying agent (if required). The Company will, promptly
following the determination of any Successor Rate, Alternative Reference Rate or Adjustment Spread, give notice thereof and of
any changes to the terms of this Senior Note to the Trustee, the Calculation Agent, the principal paying agent and the Holders,
in accordance with Section 1.05 and Section 1.06 of the Base Indenture. By its acquisition of this Senior Note, each Holder and
Beneficial Owner of this Senior Note and each subsequent Holder and Beneficial Owner acknowledges, accepts, agrees to be bound
by, and consents to, the Independent Adviser or the Company’s, as applicable, determination of the Successor Rate, Alternative
Reference Rate or Adjustment Spread, as applicable, any changes in connection therewith as contemplated by this provision, and
to any amendment or alteration of the terms of the Senior Note, including an amendment of the amount of

 

    
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interest due on the Senior Note, as may
be required in order to give effect to this provision. The Trustee shall be entitled to rely on this deemed consent in connection
with any supplemental indenture or amendment which may be necessary to effect the Successor Rate or Alternative Reference Rate.

 

By its acquisition of this Senior Note,
each Holder of this Senior Note waives any and all claims against the Trustee, the Calculation Agent and the principal paying agent
for, agrees not to initiate a suit against the Trustee, the Calculation Agent and the principal paying agent in respect of, and
agrees that neither the Trustee, the Calculation Agent or the principal paying agent will be liable for, any action that the Trustee,
the Calculation Agent or the paying agent, as the case may be, takes, or abstains from taking, in each case in accordance with
this provision. By its acquisition of this Senior Note, each Holder of this Senior Note agrees that neither the Trustee, the Calculation
Agent or the principal paying agent will have any obligation to determine any Successor Rate, Alternative Reference Rate or Adjustment
Spread (including any adjustments thereto), including in the event of any failure by us to determine any Successor Rate, Alternative
Reference Rate or Adjustment Spread.

 

An Independent Adviser appointed pursuant
to the above provisions shall act in good faith and (in the absence of bad faith, gross negligence or willful misconduct) shall
have no liability whatsoever to the Company, the Trustee, the Calculation Agent or any Holder or Beneficial Owner for any determination
made by it or for any advice given to the Company in connection with any determination made by the Company, pursuant to the above
provisions.

 

No Successor Rate or Alternative Reference
Rate will be adopted pursuant to the above provisions, nor will any other amendment to the terms of this Senior Note be made, if
and to the extent that, in the Company’s determination, the same could reasonably be expected to prejudice the qualification
of this Senior Note as the Company’s and/or the Regulatory Group’s (A) own funds and eligible liabilities and/or (B)
loss absorbing capacity instruments.

 

“Adjustment Spread”
means a spread (which may be positive or negative) or formula or methodology for calculating a spread, which the Independent Adviser
(in consultation with the Company) or the Company, as applicable, determines is required to be applied to the Successor Rate or
the Alternative Reference Rate, as applicable, as a result of the replacement of LIBOR with the Successor Rate or the Alternative
Reference Rate, as applicable, and is the spread, formula or methodology which:

 

		(i)	in the case of a Successor Rate, is recommended in relation to the replacement of LIBOR with the Successor Rate by any Relevant
Nominating Body; or

 

    
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		(ii)	in the case of a Successor Rate for which no such recommendation has been made or in the case of an Alternative Reference Rate,
the Independent Adviser (in consultation with the Company) or the Company, as applicable, determines is recognized or acknowledged
as being in customary market usage for the purposes of determining floating rates of interest in respect of securities denominated
in U.S. dollars, where such rate has been replaced by the Successor Rate or the Alternative Reference Rate, as applicable; or

 

		(iii)	if no such customary market usage is recognized or acknowledged, the Independent Adviser in its discretion (in consultation
with the Company), or the Company in its discretion, as applicable, determines (acting in good faith) to be appropriate.

 

“Alternative Reference Rate”
means the reference rate (and related alternative screen page or source, if available) that the Independent Adviser or the Company
(as applicable) determines has replaced LIBOR in customary market usage for the purposes of determining floating rates of interest
in respect of securities denominated in U.S. dollars, or, if the Independent Adviser or the Company (as applicable) determines
that there is no such rate, such other rate as the Independent Adviser or the Company (as applicable) determines, each as in our
own discretion acting in good faith, is most comparable to LIBOR.

 

“Floating Rate Interest Period”
means during the Floating Rate Period, the period beginning on (and including) a Floating Rate Period Interest Payment Date and
ending on (but excluding) the next succeeding Floating Rate Period Interest Payment Date; provided that the first floating
rate interest period will begin on May 18, 2028 and will end on (but exclude) the first Floating Rate Period Interest Payment Date.

 

“Independent Adviser”
means an independent financial institution of international repute or other independent financial adviser experienced in the international
capital markets, in each case appointed by the Company at its own expense.

 

“Relevant Nominating
Body” means, in respect of a reference rate:

 

		(i)	the central bank, reserve bank, monetary authority or any similar institution for the currency to which such reference rate
relates, or any other central bank or other supervisory authority which is responsible for supervising the administrator of such
reference rate; or

 

		(ii)	any working group or committee sponsored by, chaired or co-chaired by or constituted at the request of (a) the central bank,
reserve bank, monetary authority or any similar institution for the currency to which such reference

 

    
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rate relates, (b) any central bank or other supervisory
authority which is responsible for supervising the administrator of such reference rate, (c) a group of the aforementioned central
banks or other supervisory authorities, (d) the International Swaps and Derivatives Association, Inc. or any part thereof, or (e)
the Financial Stability Board or any part thereof.

 

“Successor Rate” means
the reference rate (and related alternative screen page or source, if available) that the Independent Adviser or the Company (as
applicable) determines is a successor to or replacement of LIBOR which is recommended by any Relevant Nominating Body.

 

During the Fixed Rate Period:

 

(i)       Interest
will be calculated on the basis of twelve 30-day months or, in the case of an incomplete month, the actual number of days elapsed,
in each case assuming a 360-day year; and

 

(ii)       If
any scheduled interest payment date is not a business day, such interest payment date will be postponed to the next day that is
a business day, but interest on that payment will not accrue during the period from and after the scheduled interest payment date.

 

During the Floating Rate Period:

 

(i)       Interest
will be calculated on the basis of the actual number of days in each interest period, assuming a 360-day year. An interest period
will be the period beginning on (and including) a Floating Rate Period Interest Payment Date and ending on (but excluding) the
next succeeding Floating Rate Period Interest Payment Date; provided that the first floating rate interest period will
begin on May 18, 2028 and will end on (but exclude) the first Floating Rate Period Interest Payment Date.

 

(ii)       If
any scheduled Interest Reset Date or Floating Rate Period Interest Payment Date (other than the Maturity Date) is not a business
day, such Interest Reset Date or Floating Rate Period Interest Payment Date will be postponed to the next day that is a business
day; provided that if that business day falls in the next succeeding calendar month, such Interest Reset Date or Floating
Rate Period Interest Payment Date will be the immediately preceding business day. If any such Floating Rate Period Interest Payment
Date (other than the Maturity Date) is postponed or brought forward as described above, the payment of interest due on such postponed
or brought forward Floating Rate Period Interest Payment Date will include interest accrued to but excluding such postponed or
brought forward Floating Rate Period Interest Payment Date.

 

    
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The regular record dates for this Senior
Note will be the 15th calendar day preceding each Interest Payment Date, whether or not a business day.

 

If (i) the Company fails to pay any installment
of interest in respect of this Senior Note on or before the relevant Interest Payment Date and such failure continues for 14 days,
or (ii) the Company fails to pay all or any part of the principal amount of this Senior Note when it otherwise becomes due and
payable, whether upon redemption or otherwise, and such failure continues for 7 days (each of (i) and (ii), a “Default”),
the Trustee may commence a proceeding for the winding up of the Company, provided that the Trustee may not declare the principal
amount of any Outstanding Senior Notes to be due and payable.

 

Payment of the principal amount of, and
any interest on, this Senior Note will be made in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts. Such payment shall be made to the Holder including through a Paying Agent
of the Company outside the United Kingdom for collection by the Holder.

 

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

 

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

 

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

 

Notwithstanding any other term of any Senior
Notes, the Indenture, or any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial
Owner, by its acquisition of this Senior Note, each Holder (including each Beneficial Owner) of this Senior Note 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, this Senior
Note; (ii) the conversion of all, or a

 

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

 

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

 

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

 

Dated: May 18, 2018

 

	Executed by 

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

	 

     

     

    

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: May 18, 2018

 

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

 

	 

     

     

    

[Reverse of Note]

 

This
note is one of a duly authorized issue of securities of the Company (herein called the “Senior Notes”) issued
and to be issued in one or more series under an amended and restated Indenture dated as of December 13, 2017 (the “Amended
and Restated Indenture”), as amended and supplemented in respect of the Senior Notes by the First Supplemental Indenture
dated as of May 18, 2018 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”),
in each case among the Company, as issuer, and The Bank of New York Mellon,
acting through its London Branch as trustee (herein called the “Trustee,” which term includes any successor
trustee under the Indenture). Reference is hereby made to the Indenture and all indentures supplemental thereto for a statement
of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of
the Senior Notes and of the terms upon which the Senior Notes are, and are to be, authenticated and delivered.

 

This Senior Note is one of the series designated
on the face hereof, initially limited in aggregate principal amount to $1,750,000,000.

 

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

 

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

 

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

 

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

 

     

     

    

payable immediately, in the manner, with
the effect and subject to the conditions provided in the Indenture.

 

Except as otherwise provided in Article
5 of the Indenture, the Trustee may proceed to protect and enforce its rights and the rights of the Holders of the Senior Notes
whether in connection with any breach by the Company of its obligations under the Senior Notes, the Indenture or otherwise, including
by judicial proceedings, provided that the Company shall not, as a result of any such action by the Trustee, be required to pay
any amount representing or measured by reference to principal or interest on the Senior Notes prior to any date on which the principal
of, or any interest on, the Senior Notes would have otherwise been payable.

 

If a Default occurs and is continuing, the
Trustee may commence a proceeding for the winding up of the Company, provided that the Trustee may not declare the principal amount
of any Outstanding Senior Notes to be due and payable.

 

Notwithstanding any other provisions of
the Indenture, failure to make any payment on the Senior Notes shall not be a Default if it is withheld or refused, upon independent
counsel’s advice delivered to the Trustee, in order to comply with any applicable fiscal or other law or regulation or order
of any court of competent jurisdiction, provided, however, that the Trustee may require the Company to take any action which, upon
independent counsel’s advice delivered to the Trustee, is appropriate and reasonable in the circumstances (including proceedings
for a court declaration), in which case the Company shall immediately take and expeditiously proceed with the action and shall
be bound by any final resolution resulting therefrom. If any such action results in a determination that the relevant payment can
be made without violating any applicable law, regulation or order then the payment shall become due and payable on the expiration
of the applicable 14-day or seven-day period after the Trustee gives written notice to the Company informing it of such determination.

 

Subject to applicable law, the Trustee (acting
on behalf of the Holders) and the Holders of the Senior Notes by their acceptance thereof will be deemed to have waived to the
fullest extent permitted by law any right of set-off, counterclaim or combination of accounts with respect to the Senior Notes,
the First Supplemental Indenture or the Amended and Restated Indenture (or between the Company’s obligations under or in
respect of the Senior Notes and any liability owed by a Holder to the Company) that they (or the Trustee acting on their behalf)
might otherwise have against the Company, whether before or during any winding-up, liquidation or administration of the Company.
Notwithstanding the above, if any of such rights and claims of any such Holder (or the Trustee acting on behalf of such Holders)
against the Company are discharged by set-off, such Holder (or the Trustee acting on behalf of such Holders) will immediately pay
an amount equal to the amount of such discharge to the Company or, in the event of any winding-up, liquidation or administration
of the Company, the liquidator or administrator (or other relevant insolvency official), as the case may be, to be held on trust
for the Senior Creditors and until such time as payment is made will hold a sum equal to such

 

    
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amount on trust for the Senior Creditors
and accordingly such discharge shall be deemed not to have taken place.

 

No remedy against the Company, other than
as referred to in Article 5 of the Indenture, shall be available to the Trustee or the Holders of the Senior Notes whether for
the recovery of amounts owing in respect of such Senior Notes or under the Indenture or in respect of any breach by the Company
of its obligations under the Indenture or in respect of the Senior Notes, except that the Trustee and the Holders shall have such
rights and powers as they are entitled to have under the Trust Indenture Act, including the Trustee’s prior lien on any amounts
collected following a Default or Event of Default for payment of the Trustee’s fees and expenses, and provided that any payments
on the Senior Notes are subject to the subordination provisions set forth in the Indenture.

 

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

 

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

 

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

 

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

 

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

 

    
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Amount on presenting (where presentation
is required) the Senior Note for payment at the close of such 30 day period,

 

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

 

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

 

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

 

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

 

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

 

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

 

Whenever in the Indenture there is mentioned,
in the context of Senior Notes, the payment of the principal, premium, if any, or interest on, or in respect of, any Senior Notes,
such mention shall be deemed to include mention of the payment of Additional Amounts provided for herein to the extent that, in
such context, Additional Amounts are, were or would be payable in respect thereof pursuant to the provisions of the foregoing

 

    
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paragraph and as if express mention of the
payment of Additional Amounts (if applicable) were made in any provisions hereof where such express mention is not made.

 

The Company will have the option to redeem
Senior Notes of this series, in whole but not in part, on not less than 5 business days nor more than 60 calendar days’ notice,
at any time during the Fixed Rate Period and thereafter only on a Floating Rate Period Interest Payment Date, at a Redemption Price
equal to 100% of the principal amount, together with accrued but unpaid interest, if any, in respect of the Senior Notes to the
date fixed for redemption, if, at any time, the Company shall determine that as a result of a change in or amendment to the laws
or regulations of the U.K. Taxing Jurisdiction (including any treaty to which a U.K. Taxing Jurisdiction is a party), or any change
in the official application or interpretation of such laws or regulations (including a decision of any court or tribunal) which
change or amendment becomes effective on or after May 18, 2018:

 

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

 

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

 

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

 

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

 

The Company may, at the Company’s
option and in its sole discretion, redeem Senior Notes of this series, in whole but not in part, on May 18, 2028, at a Redemption
Price equal to 100% of the principal amount of the Senior Notes of this series together with any accrued but unpaid interest to,
but excluding, the Redemption Date.

 

The Company may, at the Company’s
option and in its sole discretion, redeem Senior Notes of this series, in whole but not in part, at any time during the Fixed Rate

 

    
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Period and thereafter only on a Floating Rate
Period Interest Payment Date, at a Redemption Price equal to 100% of the principal amount of the Senior Notes of this series together
with any accrued but unpaid interest to, but excluding, the Redemption Date, if the Company determines that a Loss Absorption Disqualification
Event has occurred and is continuing. Before the publication of any notice of redemption pursuant to a Loss Absorption Disqualification
Event, the Company shall deliver to the Trustee a certificate signed by two authorised signatories of the Company stating that,
in such signatories’ belief, the condition for redemption has occurred and is continuing as at the date of the certificate,
and the Trustee is entitled to conclusively rely on and shall accept such certificate as sufficient evidence of such occurrence,
in which event it shall be conclusive and binding on the Holders.

 

Notwithstanding any other provision, the
Company may only redeem Senior Notes of this series prior to their Maturity Date or repurchase Senior Notes (and give notice thereof
to the Holders of this series of Senior Notes in the case of redemption) if the Company has obtained the prior consent of the PRA,
to the extent such consent is at the relevant time and in the relevant circumstances required (if at all) by the Loss Absorption
Regulations or applicable laws or regulations in effect in the United Kingdom.

 

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

 

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

 

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

 

No reference herein to the Indenture and
no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and

 

    
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unconditional, to pay, if and when due and payable, the principal
of, and interest on, this Senior Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

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

 

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

 

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

 

    
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for a temporary period) or pursuant to which any right in a
contract governing such obligations may be deemed to have been exercised, “relevant U.K. resolution authority”
means any authority with the ability to exercise a U.K. bail-in power.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(ii)       authorized,
directed and requested DTC and any direct participant in DTC or other intermediary through which it holds such Senior Notes to
take

 

    
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any and all necessary action, if
required, to implement the exercise of any U.K. bail-in power with respect to the Senior Notes as it may be imposed, without any
further action or direction on the part of such Holder or Beneficial Owner.

 

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

 

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

 

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

 

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

 

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

 

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

 

    
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