Document:

Exhibit 10.1

 

AMESITE INC.

 

CONSULTING AGREEMENT

 

This Consulting Agreement
(“Agreement”) is entered into as of the date set forth on the signature page hereto by and between Amesite Inc.
(the “Company”) and the individual or entity named in the signature page hereto (“Consultant”).
The Company desires to retain Consultant as an independent contractor to perform consulting services for the Company, and Consultant
is willing to perform such services, on the terms described below. In consideration of the mutual promises contained herein, the
parties agree as follows:

 

1. Services
and Compensation. Consultant agrees to perform for the Company the services described in Exhibit A (the “Services”),
and the Company agrees to pay Consultant the compensation described in Exhibit A in exchange for Consultant’s
performance of the Services.

 

2. Confidentiality.

 

A. Definition.
“Confidential Information” means any non-public information that relates to the actual or anticipated business
or research and development of the Company, including, but not limited to, the Company’s technical data and trade secrets.
Specifically, Confidential Information includes, but is not limited to, research, product plans and other non-public information
regarding Company’s products, services, and markets, customer lists and customers (including, but not limited to, those customers
of the Company on whom Consultant may call or with whom Consultant may become acquainted during the term of this Agreement), software,
developments, inventions, processes, formulas, technology, designs, drawing, engineering, hardware configuration information, marketing,
finances or other business information; provided, however, Confidential Information does not include information that (i) is
known to Consultant at the time of disclosure to Consultant by the Company as evidenced by written records of Consultant, (ii) has
become publicly known and made generally available through no wrongful act of Consultant or (iii) has been rightfully received
by Consultant from a third party who is authorized to make such disclosure.

 

B. Nonuse
and Nondisclosure. Consultant will not, during or subsequent to the term of this Agreement, (i) use the Confidential Information
for any purpose whatsoever other than the performance of the Services on behalf of the Company or (ii) disclose the Confidential
Information to any third party. Consultant agrees that all Confidential Information will remain the sole property of the Company.
Consultant also agrees to take all reasonable precautions to prevent any unauthorized disclosure of such Confidential Information.
Without the Company’s prior written approval, not to be unreasonably withheld, Consultant will not directly or indirectly
disclose to anyone the existence of this Agreement or the fact that Consultant has this arrangement with the Company.

 

C. Former
Client or Employer Confidential Information. Consultant agrees that Consultant will not, during the term of this Agreement,
improperly use or disclose any proprietary information or trade secrets of any former or current employer or client of Consultant
or other person or entity with which Consultant has an agreement or duty to keep in confidence such information acquired by Consultant,
if any. Consultant also agrees that Consultant will not bring onto the Company’s premises any unpublished document, trade
secrets, or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer,
person or entity.

 

D. Third
Party Confidential Information. Consultant acknowledges that the Company has received and in the future may receive from third
parties confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of
such information and to use it only for certain limited purposes. Consultant agrees that, during the term of this Agreement and
thereafter, Consultant owes the Company and such third parties a duty to hold all such confidential or proprietary information
in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying
out the Services for the Company consistent with the Company’s agreement with such third party.

 

    

     

    

 

E. Return
of Materials. Upon the termination of this Agreement, or upon Company’s earlier request, Consultant will deliver to the
Company all of the Company’s property, including but not limited to all electronically stored information and passwords to
access such property, or Confidential Information that Consultant may have in Consultant’s possession or control.

 

F. Immunity
From Liability for Certain Confidential Disclosures. Consultant acknowledges, agrees, and understands that (i) nothing in this
Agreement prohibits Consultant from reporting to any governmental authority or attorney information concerning suspected violations
of law or regulation, provided that Consultant does so consistent with 18 U.S.C. 1833, and (ii) Consultant may disclose trade
secret information to a government official or to an attorney and use it in certain court proceedings without fear of prosecution
or liability, provided that Consultant does so consistent with 18 U.S.C. 1833.

 

3. Ownership.

 

A. Assignment.
Consultant agrees that all copyrightable material, notes, records, drawings, designs, inventions, improvements, developments, discoveries
and trade secrets conceived, discovered, developed or reduced to practice by Consultant during the term of this Agreement, solely
or in collaboration with others, that relate in any manner to any Services to be performed by Consultant under this Agreement (collectively,
“Inventions”), are the sole property of the Company. All Inventions that Consultant conceives, reduces to practice,
develops or has developed (in whole or in part, either alone or jointly with others) shall be the sole property of the Company
and its assigns to the maximum extent permitted by law (and to the fullest extent permitted by law shall be deemed “works
made for hire”). Consultant also agrees to irrevocably assign (or cause to be irrevocably assigned) and hereby irrevocably
assigns to the Company all right, title and interest in all Inventions and any copyrights, patents, trademarks, trade secrets,
mask work rights, moral rights and intellectual property and other rights (“Intellectual Property Rights”) relating
to all Inventions.

 

B. Further
Assurances. Consultant shall take all steps that may be necessary to assist Company, or its designee, at the Company’s
expense, in every proper way to complete the transfer of and secure the Company’s rights in the Inventions and Intellectual
Property Rights in any and all countries, including by making the disclosure to the Company of all pertinent information and data
with respect to all Inventions, and executing all applications, specifications, oaths, assignments and all other instruments that
the Company may deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Company, its
successors, assigns and nominees the sole and exclusive right, title and interest in and to all Inventions, and any Intellectual
Property Rights relating to all Inventions. Consultant also agrees that Consultant’s obligation to execute or cause to be
executed any such instrument or papers shall continue after the termination of this Agreement.

 

C. Pre-Existing
Materials. Subject to Section 3A, Consultant agrees that if, in the course of performing the Services, Consultant
incorporates into any Invention developed under this Agreement any pre-existing invention, improvement, development, concept, discovery
or other proprietary information owned by Consultant or in which Consultant has an interest, (i) Consultant will inform Company,
in writing before incorporating such invention, improvement, development, concept, discovery or other proprietary information into
any Invention, and (ii) the Company is hereby granted a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license
to make, have made, modify, use and sell such item as part of or in connection with such Invention. Consultant will not incorporate
any invention, improvement, development, concept, discovery or other proprietary information owned by any third party into any
Invention without Company’s prior written permission.

 

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D. Attorney-in-Fact.
Consultant agrees that, if the Company is unable because of Consultant’s unavailability, dissolution, mental or physical
incapacity, or for any other reason, to secure Consultant’s signature for the purpose of applying for or pursuing any application
for any United States or foreign patents or mask work or copyright registrations covering the Inventions assigned to the Company
in Section 3A, then Consultant hereby irrevocably designates and appoints the Company and its duly authorized officers
and agents as Consultant’s agent and attorney-in-fact, to act for and on Consultant’s behalf to execute and file any
such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyright and
mask work registrations with the same legal force and effect as if executed by Consultant.

 

4. Conflicting
Obligations.

 

A. Conflicts.
Consultant certifies that Consultant has no outstanding agreement or obligation that is in conflict with any of the provisions
of this Agreement or that would preclude Consultant from complying with the provisions of this Agreement. Consultant will not enter
into any such conflicting agreement during the term of this Agreement. Consultant’s violation of this Section 4A
will be considered a material breach under Section 6B.

 

B. Substantially
Similar Designs. In view of Consultant’s access to the Company’s trade secrets and proprietary know-how, Consultant
agrees that Consultant will not, without Company’s prior written approval, design identical or substantially similar designs
as those developed under this Agreement for any third party during the term of this Agreement and for a period of 12 months after
the termination of this Agreement. Consultant acknowledges that the obligations in this Section 4 are ancillary to
Consultant’s nondisclosure obligations under Section 2.

 

5. Reports.
Consultant also agrees that Consultant will, from time to time during the term of this Agreement or any extension thereof, keep
the Company advised as to Consultant’s progress in performing the Services under this Agreement. Consultant further agrees
that Consultant will, as requested by the Company, prepare written reports with respect to such progress. The Company and Consultant
agree that the time required to prepare such written reports will be considered time devoted to the performance of the Services.

 

6. Term
and Termination.

 

A. Term.
The term of this Agreement will begin on the date of this Agreement and will continue until the earlier of (i) final completion
of the Services or (ii) termination as provided in Section 6B.

 

B. Termination.
Either party may terminate this Agreement upon 21 days’ prior written notice of such termination pursuant to Section 11F
of this Agreement. In addition, the Company may terminate this Agreement immediately and without prior notice if Consultant refuses
to or is unable to perform the Services or is in breach of any material provision of this Agreement. Company may terminate this
Agreement with immediate effectiveness if the background check for Consultant is not satisfactory.

 

C. Survival.
Upon termination of this Agreement, all rights and duties of the Company and Consultant toward each other shall cease except:

 

(i) The
Company will pay, within 30 days after the effective date of termination, all amounts owing to Consultant for Services completed
and accepted by the Company prior to the termination date and related expenses, if any, submitted in accordance with the Company’s
policies and in accordance with the provisions of Section 1 of this Agreement; and

 

(ii) Section 2
(Confidentiality), Section 3 (Ownership), Section 4 (Conflicting Obligations), Section 7 (Independent
Contractor; Benefits), Section 8 (Indemnification), Section 9 (Nonsolicitation) and Section 10
(Arbitration and Equitable Relief) will survive termination of this Agreement.

 

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7. Independent
Contractor; Benefits.

 

A. Independent
Contractor. It is the express intention of the Company and Consultant that Consultant perform the Services as an independent
contractor to the Company. Consultant represents that Consultant has the qualifications and ability to perform the Services in
a professional manner, without the advice, control, or supervision of Company. Consultant shall be solely responsible for the professional
performance of the Services, and shall receive no direction or control from Company. Consultant shall have sole discretion and
control of Consultant’s services and the manner in which performed. Nothing in this Agreement shall in any way be construed
to constitute Consultant as an agent, employee or representative of the Company, except that Consultant is authorized to represent
the Company with outside financial service providers in order to perform the Services, and as otherwise authorized by the CEO.
Without limiting the generality of the foregoing, Consultant is not authorized to bind the Company to any liability or obligation
or to represent that Consultant has any such authority except as described in the foregoing sentence. Consultant agrees to furnish
(or reimburse the Company for) all tools and materials necessary to accomplish this Agreement and shall incur all expenses associated
with performance, except as expressly provided in Exhibit A. Consultant acknowledges and agrees that Consultant is
obligated to report as income all compensation received by Consultant pursuant to this Agreement. Consultant agrees to and acknowledges
the obligation to pay all self-employment and other taxes on such income.

 

B. Benefits.
The Company and Consultant agree that Consultant will receive no Company-sponsored benefits from the Company. If Consultant is
reclassified by a state or federal agency or court as Company’s employee, Consultant will become a reclassified employee
and will receive no benefits from the Company, except those mandated by state or federal law, even if by the terms of the Company’s
benefit plans or programs of the Company in effect at the time of such reclassification, Consultant would otherwise be eligible
for such benefits.

 

8. Indemnification.
Consultant agrees to indemnify and hold harmless the Company and its directors, officers and employees from and against all taxes,
losses, damages, liabilities, costs and expenses, including attorneys’ fees and other legal expenses, arising directly or
indirectly from or in connection with (A) any grossly negligent, reckless or intentionally wrongful act of Consultant or Consultant’s
assistants, employees or agents, (B)  any breach by the Consultant or Consultant’s assistants, employees or agents
of any of the covenants contained in this Agreement, (C) any knowing, willful or reckless failure of Consultant to perform the
Services in accordance with all applicable laws, rules and regulations, or (D) any violation or claimed violation of a third
party’s rights resulting in whole or in part from the Company’s use of the work product of Consultant under this Agreement.

 

Indemnification
of Consultant by Company. At all times during the term of Consultant’s service the Company will maintain a policy of executive
liability and corporate securities liability insurance that extends coverage to appointed officers including Consultant. Company
shall indemnify, defend, and hold harmless Consultant for any claim or liability arising out of the performance of Consultant’s
Services, except those that arise from Consultant’s willful misconduct or gross negligence, to the fullest extent, and subject
to the limitations, of the General Corporation Law of the State of Delaware. This provision survives termination or expiration
of this Agreement, with Company continuing to indemnify Consultant.

 

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Limitation of Consultant
Liability. Company agrees to limit any and all liability or claim for damages, cost of defense, or expense it seeks against Consultant
to a sum not to exceed the cash compensation actually realized by Consultant under this Agreement, arising from any breach, error,
omission or negligence by Consultant in the course of performing services under the Agreement. Notwithstanding anything else herein,
in no event will Consultant be responsible for lost profits, lost revenues, or consequential, incidental or special damages. This
provision survives termination or expiration of this Agreement, with Company continuing to limit liability.

 

9. Nonsolicitation.
From the date of this Agreement until 12 months after the termination of this Agreement (the “Restricted Period”),
Consultant will not, without the Company’s prior written consent, directly or indirectly, solicit or encourage any employee
or contractor of the Company or its affiliates to terminate employment with, or cease providing services to, the Company or its
affiliates. During the Restricted Period, Consultant will not, whether for Consultant’s own account or for the account of
any other person, firm, corporation or other business organization, intentionally interfere with any person who is or during the
period of Consultant’s engagement by the Company was a partner, supplier, customer or client of the Company or its affiliates.

 

10. Arbitration
and Equitable Relief.

 

A. Arbitration.
In consideration of Consultant’s rights under this Agreement, the Company’s
promise to arbitrate disputes under this Agreement, and the receipt of compensation paid to Consultant by the Company, at present
and in the future, Consultant HEREBY WAIVES CONSULTANT’S RIGHT TO A TRIAL BEFORE A JUDGE OR JURY AND agrees that any and
all controversies, claims, or disputes with anyone (including the Company and any employee, officer, director, shareholder or benefit
plan of the Company in its capacity as such or otherwise), whether brought on an individual, group, or class basis, arising out
of, relating to, or resulting from Consultant’s performance of the Services under this Agreement or the termination of this
Agreement, including any breach of this Agreement, shall be subject to binding arbitration under the Rules of the AMERICAN Arbitration
ASSOCIATION. 

 

B. Procedure.
Consultant agrees that any arbitration will be administered by the American Arbitration
Association (“AAA”), and that the neutral arbitrator will be selected in a manner consistent with AAA’s
National Rules for the Resolution of Employment Disputes. Consultant agrees that the arbitrator shall have the power to decide
any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication, motions to dismiss
and demurrers, and motions for class certification, prior to any arbitration hearing. Consultant also agrees that the arbitrator
shall have the power to award any remedies available under applicable law, and that the arbitrator shall award attorneys’
fees and costs to the prevailing party except as prohibited by law. Consultant understands that the Company will pay for any administrative
or hearing fees charged by the arbitrator or AAA, except that Consultant shall pay the first $125.00 of any filing fees associated
with any arbitration Consultant initiates. Consultant agrees that the arbitrator shall administer and conduct any arbitration in
a manner consistent with the Rules and that to the extent that the AAA’s National Rules for the Resolution of Employment
Disputes conflict with the Rules, the Rules shall take precedence. Consultant agrees that the decision of the arbitrator shall
be in writing.

 

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C. Remedy.
Except as provided by the Rules, LAW, and this Agreement, arbitration shall be the sole,
exclusive and final remedy for any dispute between the Company and Consultant. Accordingly, except as provided for by the Rules,
LAW, and this Agreement, neither the Company nor Consultant will be permitted to pursue court action regarding claims that are
subject to arbitration. Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful
Company policy, and the arbitrator shall not order or require the Company to adopt a policy not otherwise required by law.

 

D. Availability
of Injunctive Relief. CONSULTANT agreeS that EITHER THE COMPANY or consultant may petition
a court for provisional relief, including injunctive relief, as permitted by the Rules, including, but not limited to, where either
THE COMPANY or consultant alleges or claims a violation of this Agreement between Consultant and the Company or any other agreement
regarding trade secrets, confidential information, OR nonsolicitation. CONSULTANT understandS that any breach or threatened breach
of such an agreement (INCLUDING THIS AGREEMENT) will cause irreparable injury and that money damages will not provide an adequate
remedy therefor, and both CONSULTANT AND THE COMPANY hereby consent to the issuance of an injunction. 

 

E. Administrative
Relief. Consultant understands that this Agreement does not prohibit Consultant from
pursuing an administrative claim with a local, state or federal administrative body such as the Department of Fair Employment and
Housing, the Equal Employment Opportunity Commission or the workers’ compensation board. This Agreement does, however, preclude
Consultant from pursuing court action regarding any such claim.

 

11. Miscellaneous.

 

A. Voluntary
Nature of Agreement. Consultant acknowledges and agrees that Consultant is executing this Agreement voluntarily and without
any duress or undue influence by the Company or anyone else. Consultant further acknowledges and agrees that Consultant has carefully
read this Agreement and that Consultant has asked any questions needed for Consultant to understand the terms, consequences and
binding effect of this Agreement and fully understands it, including that Consultant is waiving the right to a jury trial.
Finally, Consultant agrees that Consultant has been provided an opportunity to seek the advice of an attorney of its choice before
signing this Agreement.

 

B. Governing
Law. This Agreement shall be governed by the laws of Michigan without regard to Michigan’s conflicts of law rules.

 

C. Assignability.
Except as otherwise provided in this Agreement, Consultant may not sell, assign or delegate any rights or obligations under this
Agreement.

 

D. Entire
Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter of this Agreement
and supersedes all prior written and oral agreements between the parties regarding the subject matter of this Agreement. For avoidance
of doubt, this Agreement covers all prior consulting services provided by Consultant to the Company.

 

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E. Headings.
Headings are used in this Agreement for reference only and shall not be considered when interpreting this Agreement.

 

F. Notices.
Any notice or other communication required or permitted by this Agreement to be given to a party shall be in writing and shall
be deemed given or delivered (i) when delivered personally or by commercial messenger or courier service, (ii) three business days
after mailing if mailed by U.S. registered or certified mail (return receipt requested), or (iii) when sent by facsimile or e-mail
if sent during normal business hours and on the next business day if sent after normal business hours, in each case with confirmation
of transmission by the transmitting equipment, to the party at the party’s contact information written below or at such other
address as the party may have previously specified by like notice.

 

		(i)	If to the Company, to:

 

Amesite Inc.

205 E. Washington St.,
Suite B

Ann Arbor, MI 48104

Attention: Chief
Executive Officer

 

(ii) If to
Consultant, to the address for notice on the signature page to this Agreement or, if no such address is provided, to the last
address of Consultant provided by Consultant to the Company.

 

G. Attorneys’
Fees. In any arbitration or court action at law or equity that is brought by one of the parties to this Agreement to enforce
or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees, in addition
to any other relief to which that party may be entitled.

 

H. Severability.
If any provision of this Agreement is found to be illegal or unenforceable, then it shall be severed, and the other provisions
shall remain effective and enforceable to the greatest extent permitted by law.

 

I. Signatures.
This Agreement may be signed in two counterparts, each of which shall be deemed an original, with the same force and effectiveness
as though executed in a single document. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic
signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart
so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

[Signature pages follow]

 

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IN WITNESS WHEREOF,
the parties hereto have executed this Consulting Agreement as of November 8, 2018.

 

	CONSULTANT	 	AMESITE INC.
	 	 	 	 	 
	Richard D. DiBartolomeo, CPA	 	 	 
	 	 	 	 	 
	Sign:	      	 	Sign:	 
	 	 	 	 	 
	Name:	 	 	Name:	Ann Marie Sastry
	 	 	 	 	 
	Title:	 	 	Title:	Chair, President and CEO

 

Address for Notice:

 

6471 Shoreline Drive

 

 

Troy, MI 48085

 

 

E-mail:  rickdibart@yahoo.com

 

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EXHIBIT A

 

Services and Compensation

 

1. Contact.
Consultant’s principal Company contact shall be Ann Marie Sastry, CEO.

 

2. Services.
The Services shall include, but shall not be limited to, the services normally provided by a Chief Financial Officer (“CFO”),
and including Rick DiBartolomeo serving as CFO of Company commencing upon a date in November, 2018 mutually confirmed in writing
by Consultant and Company’s CEO. Consultant is responsible for directing the fiscal functions of the Company in accordance
with generally accepted accounting principles issued by the Financial Accounting Standards Board, the Securities and Exchange Commission,
and other regulatory and advisory organizations and in accordance with financial management techniques and practices appropriate
within the industry. Consultant will also be responsible for directing the filings of 10-K, 10-Q, 8-K, and Forms 3, 4, and 5, among
others, and coordinating activities with the Audit Committee and Board Members. All Services shall be performed by Consultant unless
otherwise agreed with CEO. The Company shall provide Consultant with access to information, employees, systems as reasonably necessary
to enable performance of the Services.

 

Other Functions of the
Consultant include:

 

1. Process
implementation for financial management, to include:

 

- treasury plan (ladder of
cd’s or other safe investment vehicle); 

 

- proper function of the finance
team (internal staff, outside accountants, audit team)

 

- 100% on time finance meetings and
adherence to internal controls, reviewed weekly

 

2. 100%
on time closing of fully reviewed monthly financials

 

3. Completion
of audit no later than August 1 in each FY (subject to suitable staffing by auditors.)

 

4. Cap
table monitoring / management with inputs from Legal, reporting on pool and issuances into weekly financial meetings, and oversight
of IR information including web-based information as developed by a third-party consultant

 

5. Plan,
develop, organize, implement, direct and evaluate the Company’s fiscal function and performance.

 

6. Evaluate
and advise on the impact of long range planning, introduction of new programs/strategies and regulatory action.

 

7. Develop
credibility for the finance group by providing timely and accurate analysis of budgets, financial reports and financial trends
in order to assist the CEO/President, the Board and other senior executives in performing their responsibilities.

 

8. Enhance
and/or develop, implement and enforce policies and procedures of the organization by way of systems that will improve the overall
operation and effectiveness of the corporation.

 

9. Provide
technical financial advice and knowledge to others within the financial discipline.

 

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10. Optimize
the handling of bank and deposit relationships and initiate appropriate strategies to enhance cash position.

 

11. Develop
a reliable cash flow projection process and reporting mechanism that includes minimum cash threshold to meet operating needs.

 

12. Be
an advisor from the financial perspective on any contracts into which the Company may enter.

 

13. Responsible
for supervision of controller and all employees or consultants in the accounting and finance department.

 

3. Compensation.

 

A. The
Company will pay Consultant a monthly retainer of $5000.00 per month in performance of his services

 

B. The
Company will reimburse Consultant for all reasonable expenses incurred by Consultant in performing the Services pursuant to this
Agreement, if Consultant receives written consent from an authorized agent of the Company prior to incurring such expenses and
submits receipts for such expenses to the Company in accordance with Company policy.

 

C. By
the tenth day of each month, Consultant shall submit to the Company a written invoice for Services and expenses for the previous
month, and such statement shall be subject to the approval of the contact person listed above or other designated agent of the
Company. Payment terms are Net 15 days.

 

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This Exhibit A is accepted and agreed
as of November , 2018.

 

	CONSULTANT	 	AMESITE INC.
	 	 	 	 	 
	Richard D. DiBartolomeo	 	 	 
	 	 	 	 	 
	Sign:	      	 	Sign:	 
	 	 	 	 	 
	Name:	 	 	Name:	Ann Marie Sastry
	 	 	 	 	 
	Title:	 	 	Title:	Chair, President and CEO

 

Address for Notice (if different than agreement):

 

 

 

 

 

 

E-mail:

 

    11Exhibit 4.9

 

THIRD SUPPLEMENTAL INDENTURE

 

THIRD SUPPLEMENTAL INDENTURE, dated as of November 15, 2018 (this “Supplemental Indenture”), by and between SANTANDER UK GROUP HOLDINGS PLC, a public limited company incorporated in England and Wales (the “Issuer”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association incorporated in the United States, as trustee (the “Trustee”), having its Corporate Trust Office at 150 East 42nd Street, 40th Floor, New York, NY 10017.

 

W I T N E S S E T H:

 

WHEREAS, the Issuer and the Trustee have executed and delivered an Amended and Restated Indenture dated as of April 18, 2017 (as supplemented and amended by a first supplemental indenture entered into between the Issuer and the Trustee on November 3, 2017, the “Base Indenture” and, together with this Supplemental Indenture, the “Indenture”);

 

WHEREAS, Section 9.01(d) of the Base Indenture provides that the Issuer and the Trustee may enter into a supplemental indenture to add to, change or eliminate any of the provisions of the Base Indenture, or any supplemental indenture, provided that any such change or elimination shall become effective only when there is no Senior Debt Security Outstanding of any series created prior to the execution of such supplemental indenture effecting such change or elimination which is entitled to the benefit of such provision, and adversely affected by such addition, change or elimination;

 

WHEREAS, Section 9.01(f) of the Base Indenture provides that the Issuer 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 or 3.01 of the Base Indenture;

 

WHEREAS, the Issuer desires to issue $1,000,000,000 4.796% Fixed Rate/Floating Rate Notes due November 15, 2024 (such series of Senior Debt Securities, the “Notes”) pursuant to the Base Indenture (as supplemented and amended by this Supplemental Indenture);

 

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

 

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

 

ARTICLE 1
 DEFINITIONS

 

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

 

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

 

(b)                                 all other terms used herein that are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein;

 

 

(c)                                  the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular;

 

(d)                                 the section headings herein are for convenience only and shall not affect the construction of this Supplemental Indenture; and

 

(e)                                  the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

 

Section 1.02.                Supplemental Definitions. The following definitions shall apply to the Notes only:

 

(a)                                 “Accrued Interest Factor” has the meaning set forth in clause (e)(2) of Section 2.01 of this Supplemental Indenture.

 

(b)                                 “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 Issuer) or, only if the Independent Adviser fails to make any such determination, the Issuer, determines is required to be applied to the Alternative Base Rate, as a result of the replacement of LIBOR with the Alternative Base Rate, and is the spread, formula or methodology which:

 

(A) has been formally recommended, or formally provided as an option for parties to elect to adopt, by the Bank of England (or any committee thereof or other body appointed or endorsed thereby for such purpose) in relation to the replacement of LIBOR with the Alternative Base Rate;

 

(B) the Independent Adviser (in consultation with the Issuer) or, failing which, the Issuer, 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 Alternative Base Rate; or

 

(C) if no such customary market usage is recognized or acknowledged, the Independent Adviser in its discretion (in consultation with the Issuer), or, failing which, the Issuer in its discretion, determines (acting in good faith) to be appropriate.

 

(c)                                  “Alternative Base Rate” means the rate that the Independent Adviser or, failing which, the Issuer determines has replaced LIBOR in customary market usage for determining floating interest rates in respect of bonds denominated in U.S. dollars or, if the Independent Adviser or, failing which, the Issuer (in consultation with the Calculation Agent and acting in good faith and a commercially reasonable manner) determines that there is no such rate, such other rate as the Independent Adviser or, failing which, the Issuer (in consultation with the Calculation Agent and acting in good faith and a commercially reasonable manner) determines in its or the Issuer’s sole discretion is most comparable to LIBOR. If the Alternative Base Rate is determined, such Alternative Base Rate will be the Alternative Base Rate for the remaining interest periods (subject to the subsequent operation of sub-paragraph (3) of the definition of LIBOR below).

 

(d)                                 “Alternative Screen Page” means the alternative screen page, information service or source on which the Alternative Base Rate appears (or such other screen page, information service or source as may replace the alternative screen page, information service or source, in each case,

 

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as may be nominated by the person providing or sponsoring the information appearing on such screen page, information service or source for purposes of displaying comparable rates).

 

(e)                                  “Base Indenture” has the meaning set forth in the recitals to this Supplemental Indenture.

 

(f)                                   “Business Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in the City of New York or London, England are authorized or required by law, regulation or executive order to close.

 

(g)                                  “Calculation Agent” means Wells Fargo Bank, National Association, or its successor appointed by the Issuer.

 

(h)                                 “Capital Rules” means at any time the regulations, requirements, guidelines and policies relating to capital resources requirements or capital adequacy then in effect and applicable to the Group (including, without limitation, any regulations, requirements, guidelines and policies of the Regulator as may from time to time be applicable to the Group).

 

(i)                                     “Fixed Rate Period” means from (and including) the Issue Date to (but excluding) November 15, 2023.

 

(j)                                    “Fixed Rate Interest Payment Date” has the meaning set forth in clause (d) of Section 2.01 of this Supplemental Indenture.

 

(k)                                 “Floating Rate Interest Payment Date” has the meaning set forth in clause (e)(1) of Section 2.01 of this Supplemental Indenture.

 

(l)                                     “Floating Rate Period” means from (and including) November 15, 2023 to (but excluding) the Maturity Date.

 

(m)                             “Group” means the Issuer and each other entity which is part of the UK prudential consolidation group (as that term, or its successor, is used in the Capital Rules) of which the Issuer is part from time to time.

 

(n)                                 “Indenture” has the meaning set forth in the recitals to this Supplemental Indenture.

 

(o)                                 “Independent Adviser” means an independent financial institution of international repute or other independent adviser experienced in the international capital markets, in each case appointed by the Issuer at the Issuer’s own expense.

 

(p)                                 “Initial Floating Interest Rate” has the meaning set forth in clause (e)(1) of Section 2.01 of this Supplemental Indenture.

 

(q)                                 “Interest Determination Date” means the second London Banking Day preceding the applicable Interest Reset Date.

 

(r)                                    “Interest Payment Date” has the meaning set forth in clause (e)(1) of Section 2.01 of this Supplemental Indenture.

 

(s)                                   “Interest Reset Date” has the meaning set forth in clause (e)(3) of Section 2.01 of this Supplemental Indenture.

 

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(t)                                    “Issue Date” has the meaning set forth in clause (c) of Section 2.01 of this Supplemental Indenture.

 

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

 

(v)                                 “LIBOR” shall mean, as of any Interest Determination Date:

 

(1)         the offered quotation to leading banks in the London interbank market for three-month U.S. dollar deposits (i) as defined by (A) the ICE Benchmark Administration (“IBAM”), (B) its successor in such capacity, or (C) such other person assuming the responsibility of IBAM or its successor in calculating the London Inter-Bank Offered Rate in the event IBAM or its successor no longer do so, and (ii) as calculated by their appointed Calculation Agent and published, as such rate appears on either the Reuters Monitor Money Rates Service page LIBOR01 (or a successor page on such service) or, if such rate  is not available, on such other information system that provides such information, in each case as of 11:00 a.m., London time, on such Interest Determination Date;

 

(2)         if no such rate is so published on such Interest Determination Date due to a temporary disruption in service or the market, then the rate for such Interest Determination Date shall be the arithmetic mean (rounded to five decimal places, with 0.000005 being rounded upwards) of the rates for three-month U.S. dollar deposits quoted to the Calculation Agent by each of four major reference banks in the London interbank market (which may include affiliates of the underwriters), as selected by the Issuer, as of 11:00 a.m., London time, on such Interest Determination Date:

 

·                  if at least two such rates are so provided, LIBOR on the Interest Determination Date will be the arithmetic mean of such rates; or

 

·                  if fewer than two such rates are so provided, LIBOR on the Interest Determination Date will be LIBOR as determined for or otherwise applicable during the last preceding interest period.

 

(3)         Notwithstanding clause (2) above, with respect to an Interest Determination Date on which no rate appears on the relevant screen page, if the Issuer (in consultation with the Calculation Agent) determines that LIBOR has ceased to be published on the relevant screen page as a result of LIBOR ceasing to be calculated or administered for publication thereon or that it is unlawful for either the Calculation Agent or the Issuer to determine or use the London Inter-Bank Offered Rate, the Issuer will use reasonable efforts to appoint an Independent Adviser to determine (in consultation with the Issuer) the Alternative Base Rate and the Alternative Screen Page by no later than five business days prior to the Interest Determination Date relating to the next succeeding interest period (the “interest determination cut-off date”) for the purpose of determining the rate of interest applicable to the Notes for all future interest periods (subject to the subsequent operation of this paragraph (3)). If the Issuer is unable to appoint an Independent Adviser, or if the Independent Adviser fails to determine the Alternative Base Rate and the Alternative Screen Page prior to the interest determination cut-off date, the Issuer will determine the Alternative Base Rate and the Alternative Screen Page for such interest period; provided that if the Issuer does not determine the Alternative Base Rate and the Alternative Screen Page prior to the Interest Determination Date for such interest period, the interest rate for such interest period will be equal to the  interest rate in effect for the immediately preceding interest period.

 

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(w)                               “London Banking Day” means any day on which dealings in U.S. dollars are transacted in the London interbank market.

 

(x)                                 “Loss Absorption Disqualification Event” means:

 

(1)         at the time that any Loss Absorption Regulation becomes effective after the date of issuance of a given series of Senior Debt Securities, and as a result of such Loss Absorption Regulation becoming so effective, in each case with respect to the Issuer and/or the Group, such Senior Debt Securities are not or will not be eligible to qualify in full towards the Issuer’s and/or the Group’s minimum requirements for (A) own funds and eligible liabilities and/or (B) loss absorbing capacity instruments; or

 

(2)         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 date of issuance of a given series of Senior Debt Securities, such Senior Debt Securities are or will be fully or partially excluded from the Issuer’s and/or the 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 Issuer of such Senior Debt Securities and/or the Group and determined in accordance with, and pursuant to, the relevant Loss Absorption Regulations; provided that a Loss Absorption Disqualification Event shall not occur where the exclusion of such Senior Debt Securities from the relevant minimum requirement(s) is due to the remaining maturity of such Senior Debt Securities 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 Issuer and/or the Group on the date of issuance of such Senior Debt Securities.

 

(y)                                 “Loss Absorption Disqualification Event Call Option” means the Issuer’s option, subject to the satisfaction of the Regulatory Redemption Conditions, to redeem in whole, but not in part, any series of Senior Debt Securities at any time at a redemption price equal to 100% of the principal amount, together with accrued but unpaid interest, if any, in respect of such series of Senior Debt Securities to (but excluding) the Loss Absorption Disqualification Redemption Date, upon the occurrence of a Loss Absorption Disqualification Event which is continuing.

 

(z)                                  “Loss Absorption Disqualification Redemption Date” means the date fixed for redemption pursuant to an exercise by the Issuer of the Loss Absorption Disqualification Event Call Option.

 

(aa)                          “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 which are applicable to the United Kingdom 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 and/or the United Kingdom resolution authority from time to time (whether or not such regulations, requirements, guidelines, rules, standards or policies are applied generally or specifically to the Issuer or to the Group).

 

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(bb)                          “Maturity Date” has the meaning set forth in clause (c) of Section 2.01 of this Supplemental Indenture.

 

(cc)                            “Notes” has the meaning set forth in the recitals to this Supplemental Indenture.

 

(dd)                          “PRA” means the Prudential Regulation Authority of the United Kingdom.

 

(ee)                            “Regular Record Date” means the fifteenth calendar day, whether or not a Business Day, that precedes the relevant Fixed Rate Interest Payment Date or Floating Rate Interest Payment Date, as applicable.

 

(ff)                              “Regulator” means the PRA or such successor or other authority having primary responsibility for the prudential supervision of the Issuer and the Group.

 

(gg)                            “Regulatory Approval” means, at any time, such approval, consent or prior permission by, or notification required within prescribed periods to, the Regulator, or such waiver of the then prevailing Loss Absorption Regulations from the Regulator, as is required under the then prevailing Loss Absorption Regulations at such time.

 

(hh)                          “Regulatory Preconditions” means if, at the time of a redemption or purchase, the prevailing Loss Absorption Regulations permit the redemption or purchase after compliance with any pre-conditions, the Issuer has complied with such pre-conditions.

 

(ii)                                  “Regulatory Redemption Conditions” means (1) the Issuer has obtained Regulatory Approval and (2) the Issuer is in compliance with the Regulatory Preconditions.

 

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

 

ARTICLE 2

THE NOTES

 

Section 2.01.                          The following terms relating to the Notes are hereby established:

 

(a)                                 The title of the Notes shall be “4.796% Fixed Rate/Floating Rate Notes due 2024”;

 

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

 

(c)                                  The Notes shall be issued on November 15, 2018 (the “Issue Date”) and the principal on the Notes shall be payable on November 15, 2024 (the “Maturity Date”);

 

(d)                                 During the Fixed Rate Period, interest on the Notes shall be payable semi-annually at a rate of 4.796% per annum. Interest will be payable in arrears on May 15 and November 15 of each year, beginning on May 15, 2019 (each, a “Fixed Rate Interest Payment Date”), and ending on November 15, 2023, to the person in whose name the Notes are registered at the close of business on the Regular Record Date. Interest on the Notes will be calculated as contemplated by Section 3.10 of the Base Indenture.  If any Fixed Rate Interest Payment Date or Redemption Date, as the case may be, would fall on a day that is not a Business Day, then the Fixed Rate Interest Payment Date or Redemption Date, as 

 

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the case may be, will be postponed to the next succeeding Business Day, but no additional interest shall accrue and be paid unless the Issuer fails to make payment on such next succeeding Business Day;

 

(e)                                  During the Floating Rate Period:

 

(1)                                 Interest on the Notes shall be payable quarterly at a rate equal to LIBOR plus 1.570% per annum. Interest will be payable quarterly in arrears on February 15, 2024, May 15, 2024, August 15, 2024 and on the Maturity Date, (each, a “Floating Rate Interest Payment Date” and, together with each Fixed Rate Interest Payment Date, an “Interest Payment Date”), to the person in whose name the Notes are registered at the close of business on the Regular Record Date. Interest on the Notes will initially bear interest from and including November 15, 2023, to, but excluding, February 15, 2024, at a rate per year equal to LIBOR plus 1.570% per annum (the “Initial Floating Interest Rate”) as determined by the Calculation Agent. If any Floating Rate Interest Payment Date (other than the Maturity Date or Redemption Date) would fall on a day that is not a Business Day, the Floating Rate Interest Payment Date will be postponed to the next succeeding Business Day and interest thereon will continue to accrue to, but excluding, such succeeding Business Day, except that if that Business Day falls in the next succeeding calendar month, the Floating Rate Interest Payment Date will be the immediately preceding Business Day and interest shall accrue to, but excluding, such preceding Business Day. If the Maturity Date or Redemption Date would fall on a day that is not a Business Day, the payment of interest and principal will be made on the next succeeding Business Day, but no additional interest shall accrue and be paid unless the Issuer fails to make payment on such next succeeding Business Day;

 

(2)                                 The amount of interest accrued on the Notes to each Floating Rate Interest Payment Date will be calculated by multiplying the principal amount of the Notes by an Accrued Interest Factor. The “Accrued Interest Factor” will be equal to the sum of the interest factors calculated for each day in the period for which interest is being paid. The interest factor for each day is equal to the interest rate applicable to that day divided by 360. The interest rate in effect on any Interest Reset Date  (as defined in sub-clause (3) below) will be the applicable rate as reset on that date. The interest rate applicable to any other day is the interest rate from the immediately preceding Interest Reset Date, or, if none, the initial interest rate of the Notes; and

 

(3)                                 The interest rate on the Notes shall be reset quarterly on February 15, 2024, May 15, 2024 and August 15, 2024 (each, an “Interest Reset Date”); provided that the interest rate in effect from and including November 15, 2023 to, but excluding, the first Interest Reset Date, will be the initial interest rate of the Notes;

 

(f)                                   If the Independent Adviser (in consultation with the Issuer) or, only if the Independent Adviser fails to make any such determination, the Issuer, determines that an Adjustment Spread is required to be applied to the Alternative Base Rate and determines the quantum of, or a formula or methodology for determining, such Adjustment Spread, then such Adjustment Spread shall be applied to the Alternative Base Rate. If the Independent Adviser is, or, failing which, the Issuer is, as the case may be, unable to determine the quantum of, or a formula or methodology for determining, such Adjustment Spread, then such Alternative Base Rate will apply without an Adjustment Spread.

 

(g)                                  If the Independent Adviser or, failing which, the Issuer determines the Alternative Base Rate or any Adjustment Spread, the Independent Adviser or, failing which, the Issuer may also, following consultation with the Calculation Agent, make changes to the Alternative Base Rate 

 

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or the Adjustment Spread, as well as the day count fraction, the business day convention, the definition of business day, the remaining Interest Determination Dates and any method for obtaining the substitute or successor base rate if the Alternative Base Rate or the Alternative Screen Page is unavailable on the relevant Floating Rate Interest Determination Date or otherwise, in each case in order to follow market practice, as well as any other changes that the Issuer, following consultation with the Independent Adviser (if appointed), determines in good faith are reasonably necessary to ensure the proper operation of the Alternative Base Rate, as well as the comparability of the interest rate determined by reference to the Alternative Base Rate to the interest rate determined by reference to LIBOR (the “Floating Rate Calculation Changes”). Any Floating Rate Calculation Changes will apply to the Notes for all future interest rate periods (subject to the subsequent operation of sub-paragraph (3) of the definition of LIBOR in Section 1.01(v) above).

 

(h)                                 The Issuer will promptly give notice of the determination of the Alternative Base Rate, any Adjustment Spread, the Alternative Screen Page and any Floating Rate Calculation Changes to the Trustee, the Paying Agent, the Calculation Agent and the Holders; provided that failure to provide such notice will have no impact on the effectiveness of, or otherwise invalidate, any such determination.

 

(i)                                     No premium, upon redemption or otherwise, shall be payable by the Issuer on the Notes;

 

(j)                                    Principal of, and any interest on, the Notes shall be paid to the Holder through the Trustee, having offices in New York, New York;

 

(k)                                 The Notes shall not be redeemable except as provided in (i) Section 11.08 of the Base Indenture (as amended hereby), (ii) Section 11.09 of the Base Indenture (as amended hereby) and (iii) in Section 11.10 of the Base Indenture (as amended hereby), or on the Maturity Date. The Notes shall not be redeemable at the option of the Holders at any time;

 

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

 

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

 

(n)                                 The Notes shall be denominated in U.S. dollars;

 

(o)                                 The payment of principal of, and interest on, the Notes shall be payable only in the coin or currency in which the Notes are denominated which, pursuant to clause (k) above, shall be U.S. dollars;

 

(p)                                 The Notes will be subject to, and each Holder (including each holder of a beneficial interest in the Notes) acknowledges, accepts, agrees and consents that the Notes will be subject to, the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority. Each Holder of Notes 

 

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(including each holder of a beneficial interest in the Notes) acknowledges, accepts, agrees to be bound by and consents to (i) the effect of the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority and (ii) the variation, if necessary, of the terms of the Notes to give effect to the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority, pursuant to Article Twelve of the Base Indenture;

 

(q)                                 By its acquisition of the Notes, each Holder (including each holder of a beneficial interest in the notes) (i) will acknowledge, accept, consent and agree to be bound by the Independent Adviser’s or the Issuer’s determination of the Alternative Base Rate, the Alternative Screen Page, any Adjustment Spread and any Floating Rate Calculation Changes, including as may occur without any prior notice from the Issuer and without the need for the Issuer to obtain any further consent from such Holder, (ii) will waive any and all claims, in law and/or in equity, against the Trustee, the Paying Agent and the Calculation Agent for, agree not to initiate a suit against the Trustee, the Paying Agent and the Calculation Agent in respect of, and agree that none of the Trustee, the Paying Agent or the Calculation Agent will be liable for, the determination of or the failure to determine any Alternative Base Rate, the Alternative Screen Page, any Adjustment Spread or any Floating Rate Calculation Changes and any losses suffered in connection therewith and (iii) will agree that none of the Trustee, the Paying Agent or the Calculation Agent will have any obligation to determine any Alternative Base Rate, the Alternative Screen Page, any Adjustment Spread or any Floating Rate Calculation Changes (including any adjustments thereto), including in the event of any failure by the Issuer to determine any Alternative Base Rate, the Alternative Screen Page, any Adjustment Spread and any Floating Rate Calculation Changes.

 

(r)                                    The 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 DTC;

 

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

 

(t)                                    The form of the Notes shall be evidenced by one or more Global Securities in registered form substantially in the form of Exhibit A to this Supplemental Indenture.

 

ARTICLE 3
 AMENDMENTS TO THE BASE INDENTURE APPLICABLE TO THE NOTES ONLY

 

Section 3.01.                Article Five of the Base Indenture is amended by amending and restating Sections 5.01, 5.02, 5.03 and 5.07 in their entirety, which shall read as follows:

 

Section 5.01 Events of Default.  “Event of Default”, wherever used herein with respect to Senior Debt Securities of a particular series, means:

 

(a)                                 the making or entry of any order by an English court which is not successfully appealed within 30 days after the date such order was made or entered for the winding up of the Issuer; or

 

(b)                                 the valid adoption by the shareholders of the Issuer of any effective resolution for the winding up of the Issuer;

 

in either case, other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency.

 

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Section 5.02. Acceleration of Maturity; Rescission and Annulment. If an Event of Default with respect to Senior Debt Securities of any series at the time Outstanding occurs and is continuing (except in any such case for a solvent winding-up solely for the purpose of a merger, reconstruction or amalgamation of the Issuer, the terms of which reorganization, reconstruction or amalgamation (i) have previously been approved in writing by a majority of Holders and (ii) do not provide that the Senior Debt Securities shall thereby become redeemable or repayable in accordance with the terms of the Senior Debt Securities), then in every such case the Trustee may, or if so requested by the Holders of not less than 25% in principal amount of the Outstanding Senior Debt Securities of that series, shall declare the principal amount (or, in the case of Original Issue Discount Securities, the accreted face amount) together with accrued interest, if any, of all the Senior Debt Securities of that series to be due and payable immediately, by a notice in writing to the Issuer (and to the Trustee if given by the Holder or Holders), and upon any such declaration such principal amount (or specified amount) shall become immediately due and payable.

 

At any time after such a declaration of acceleration with respect to Senior Debt Securities of any series has been made but before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holder or Holders of a majority in aggregate principal amount of the Outstanding Senior Debt Securities of such series, by written notice to the Issuer and the Trustee, may rescind or annul such declaration of acceleration and its consequences, but only if the Issuer has paid to or deposited with the Trustee a sum sufficient to pay:

 

(i)                                     the principal of any Senior Debt Securities of such series which have become due otherwise than by such declaration of acceleration and any due and payable interest, and overdue interest, if any, thereon at the rate or rates prescribed therefor in such Senior Debt Securities, and

 

(ii)                                  all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section 5.03. Defaults; Collection of Indebtedness and Suits for Enforcement by Trustee.

 

Unless otherwise provided and contemplated pursuant to Section 3.01 with respect to the Senior Debt Securities of any series, “Default”, wherever used herein, means any one of the following events (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 Issuer fails to pay any interest upon any Senior Debt Security and such default continues for 14 days; or

 

(b)                                 the Issuer fails to pay the principal of any Senior Debt Security of any series at its Maturity Date and such failure is continued for 14 days.

 

If a Default occurs, the Trustee may, to enforce the obligations of the Issuer, institute proceedings in England (but not elsewhere) for the winding up of the Issuer, provided that the Trustee may not, upon the occurrence of a Default, unless an Event of Default has occurred and is continuing, accelerate the Maturity of any principal, interest or other amount in respect of any of the Outstanding Senior Debt Securities.

 

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Notwithstanding the foregoing, failure to make any payment in respect of the Senior Debt Securities shall not be a Default in respect of such Senior Debt Securities if such payment is withheld or refused (i) in order to comply with any fiscal or other law or regulation or with the order of any court of competent jurisdiction, in each case applicable to such payment or (ii) in case of doubt as to the validity or applicability of any such law, regulation or order, in accordance with advice given with respect to validity or applicability of such law, regulation or order at any time during said period of 14 days by independent legal advisers acceptable to the Trustee, provided, however, that the Trustee may by notice to the Issuer require the Issuer to take such action (including but not limited to proceedings for a declaration by a court of competent jurisdiction) as the Trustee may be advised in an opinion of counsel, upon which opinion the Trustee may conclusively rely, is appropriate and reasonable in the circumstances to resolve such doubt, in which case the Issuer shall forthwith take and expeditiously proceed with such action and shall be bound by any final resolution of the doubt resulting therefrom. If any such resolution determines that the relevant payment can be made without violating any applicable law, regulation or order then the provisions of the preceding sentence shall cease to have effect and the payment shall become due and payable on the expiration of 14 days after the Trustee gives written notice to the Issuer informing it of such resolution.

 

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 in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Issuer in this Senior Debt Securities 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 Issuer, either directly or through the Issuer or any successor corporation of the Issuer, 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 Senior Debt Securities Indenture and the issue of the Senior Debt Securities of a series.

 

Section 5.07. Limitation on Suits. No Holder of any Senior Debt Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Senior Debt Securities Indenture or Senior Debt Securities of any series, or for the appointment of an administrator, receiver or trustee, or for any other remedy hereunder or thereunder, unless:

 

(a)                                 such Holder has previously given written notice to the Trustee of a continuing Event of Default or Default with respect to Senior Debt Securities of the same series specifying such Event of Default or Default and stating that such notice is a “Notice of Default” hereunder;

 

(b)                                 the Holders of not less than 25% in aggregate principal amount of the Outstanding Senior Debt Securities of such series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default or Default in its own name, as Trustee hereunder;

 

(c)                                  such Holders have offered to the Trustee reasonable indemnity or security satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request;

 

(d)                                 the Trustee for 60 days after its receipt of such notice, request and offer of indemnity or security has failed to institute any such proceeding; and

 

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(e)                                  no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the Outstanding Senior Debt Securities of such series;

 

it being understood and intended that no one or more Holders of Senior Debt Securities of a particular series shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Senior Debt Securities Indenture or the Senior Debt Securities of such series to affect, disturb or prejudice the rights of any other such Holders or holders, or to obtain or to seek to obtain priority or preference over any other such Holders or holders or to enforce any right under this Senior Debt Securities Indenture or the Senior Debt Securities of such series, except in the manner herein provided and for the equal and ratable benefit of all Holders of Senior Debt Securities of such series.

 

Section 3.02.                Article Five of the Base Indenture is hereby further amended by inserting the following words at the end of the first paragraph of Section 5.04:

 

“In no event shall the Issuer, by virtue of the taking of any action described in this Section 5.04, be obliged to pay any sum or sums (in cash or otherwise) sooner than the same would otherwise have been payable by it. No remedy against the Issuer, other than as provided in Section 5.02, 5.03, this Section 5.04 or Section 5.08, shall be available to the Trustee or to the Holders of any Senior Debt Securities of any series, whether for the recovery of amounts due in respect of such Senior Debt Securities or for any breach of any other obligations of the Issuer under such Senior Debt Securities or under the Senior Debt Securities Indenture, as amended from time to time.”

 

Section 3.03.                Article 11 of the Base Indenture is hereby amended as follows:

 

(a)                                 Section 11.08 of the Base Indenture is hereby amended and restated in its entirety, as follows:

 

Section 11.08.  Optional Redemption Due to Changes in Tax Treatment.   Unless otherwise provided in the Senior Debt Securities of any series and subject to the satisfaction of the Regulatory Redemption Conditions, the Issuer will have the option to redeem the Senior Debt Securities of any series in whole as contemplated by Section 3.01 with respect to any series of Senior Debt Securities on not less than 30 nor more than 60 days’ notice, on any Interest Payment Date, at a redemption price equal to 100% of the principal amount, together with accrued but unpaid interest, if any, in respect of such series of Senior Debt Securities to the date fixed for redemption (or, in the case of Original Issue Discount Securities, the accreted face amount thereof, together with accrued interest, if any), if, at any time, the Issuer shall determine that as a result of a change in or amendment to the laws or regulations of the Taxing Jurisdiction (including any treaty to which such Taxing Jurisdiction is a party) or any change in the official application or interpretation of such laws or regulations (including a decision of any court or tribunal) which change or amendment becomes effective on or after a date included in the terms of such series of Senior Debt Securities pursuant to Section 3.01:

 

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

 

(b) any payment of Interest on an Interest Payment Date in respect of the Senior Debt Securities has been treated as a “distribution”, or the payment of interest on the next Interest Payment Date in respect of any of the Senior Debt Securities would be treated as a “distribution,” 

 

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in each case 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 an Interest Payment Date the Issuer was not entitled, or on the next Interest Payment Date the Issuer 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 Issuer would be materially reduced).

 

In any case where the Issuer shall determine that as a result of any change in the official application or interpretation of any laws or regulations it is entitled to redeem the Senior Debt Securities of any series, the Issuer 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 Issuer) in a form reasonably 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 Issuer is entitled to exercise its right of redemption.

 

(b)                                 Sections 11.09, 11.10 and 11.11 are hereby added at the end of Article 11 of the Base Indenture as follows:

 

Section 11.09. Optional Redemption upon a Loss Absorption Disqualification Event. If a Loss Absorption Disqualification Event has occurred and is continuing, the Issuer may exercise the Loss Absorption Disqualification Event Call Option, having given not less than 30 nor more than 60 days’ notice to the Trustee, the Paying Agent, the Holders and the Registrar (which notice shall be irrevocable and shall specify the Loss Absorption Disqualification Redemption Date). Upon the expiry of such notice the Issuer shall be bound to redeem such Senior Debt Securities accordingly.

 

In any case where the Issuer shall determine that as a result of the occurrence of a Loss Absorption Disqualification Event it is entitled to exercise the Loss Absorption Disqualification Event Call Option in respect of any series of Senior Debt Securities, the Issuer shall be required to deliver to the Trustee an Officer’s Certificate stating that the relevant requirement or circumstance referred to in this Section 11.09 applies.

 

Section 11.10. Issuer’s Optional Redemption. The Issuer will have the option, subject to the satisfaction of the Regulatory Redemption Conditions, to redeem the Senior Debt Securities, in whole, but not in part, on November 15, 2023, at a redemption price equal to 100% of the principal amount of the Senior Debt Securities, plus accrued and unpaid interest thereon to, but excluding, the Redemption Date, on not less than 30 nor more than 60 days’ notice.

 

Section 11.10. Redemption Subject to Regulatory Approval. Notwithstanding any provision or statement to the contrary in this Senior Debt Securities Indenture or the Senior Debt Securities, if required pursuant to any Loss Absorption Regulation, the Issuer may only redeem or repurchase any Senior Debt Securities prior to the Maturity Date if it has obtained Regulatory Approval.

 

ARTICLE 4
 MISCELLANEOUS

 

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

 

Except as hereby expressly amended with respect to the Notes only, the Base Indenture is in all respects ratified and confirmed and all the terms, provisions and conditions thereof shall be and remain in 

 

13

 

full force and effect. This Supplemental Indenture shall be deemed an integral part of the Base Indenture in the manner and to the extent herein and therein provided.

 

Section 4.02.                Responsibility for Recitals, Etc.  The recitals herein shall be taken as the statements of the Issuer, and the Trustee assumes no responsibility for the correctness thereof. The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture.

 

Section 4.03.                Priority.  This Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. The provisions of this Supplemental Indenture shall, with respect to the Notes and subject to the terms hereof, supersede the provisions of the Base Indenture to the extent the Base Indenture is inconsistent herewith.

 

Section 4.04.                Governing Law.  This Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York, except that the authorization and execution of this Supplemental Indenture shall be governed (in addition to the laws of the State of New York relevant to execution) by the respective jurisdictions of the Issuer and the Trustee, as the case may be.

 

Section 4.05.                          Counterparts.  This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture and signature pages for all purposes.

 

Section 4.06.                Entire Agreement.  This Supplemental Indenture constitutes the entire agreement of the parties hereto with respect to the amendments to the Base Indenture set forth herein.

 

[Remainder of page intentionally left blank]

 

14

 

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the day and year first above written.

 

	
 
    	
SANTANDER UK GROUP HOLDINGS PLC
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ J Wainwright
    
	
 
    	
 
    	
Name:
    	
J Wainwright
    
	
 
    	
 
    	
Title:
    	
Authorised Signatory
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stefan Victory
    
	
 
    	
 
    	
Name:
    	
Stefan Victory
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

15

 

EXHIBIT A

 

FORM OF 4.796% FIXED RATE/FLOATING RATE NOTE

 

This Senior Debt Security is in global form within the meaning of the Senior Debt Securities Indenture hereinafter referred to and is registered in the name of The Depository Trust Company, a New York corporation (“DTC”), or a nominee of DTC, which may be treated by the Issuer, the Trustee and any agent thereof as owner and holder of this Senior Debt Security for all purposes.

 

Notwithstanding any other term of the Senior Debt Securities represented by this Global Security or the Senior Debt Securities Indenture (as defined herein) or any other agreements, arrangements or understandings between the Issuer and any Holder (including for these purposes each holder of a beneficial interest in the Senior Debt Securities), by its acquisition of the Senior Debt Securities, each Holder of the Senior Debt Securities acknowledges, accepts, agrees to be bound by and consents to: (a) the effect of the exercise of any UK Bail-in Power (as defined herein) by the Relevant UK Resolution Authority (as defined herein), whether or not imposed with prior notice, that may include and result in:  (i) the reduction of all, or a portion, of the Amounts Due (as defined herein); (ii) the conversion of all, or a portion, of the Amounts Due on the Senior Debt Securities into the Issuer’s or another Person’s shares, other securities or other obligations (and the issue to or conferral on the Holder of the Senior Debt Securities of such shares, other securities or other obligations) including by means of an amendment, modification or variation of the terms of the Senior Debt Securities; (iii) the cancellation of the Senior Debt Securities; and/or (iv) the amendment or alteration of the maturity of the Senior Debt Securities or the amount of interest payable on the Senior Debt Securities, or the date on which the interest becomes payable, including by suspending payment for a temporary period; and (b) the variation, if necessary, of the terms of the Senior Debt Securities Indenture or the Senior Debt Securities to give effect to the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority.

 

Unless this certificate is presented by an authorized representative of DTC to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

Unless and until it is exchanged in whole or in part for Senior Debt Securities in definitive form in the limited circumstances referred to in the Senior Debt Securities Indenture, this Global Security may not be transferred except as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or another nominee of DTC or by DTC or any such nominee to a successor depositary or a nominee of such successor depositary.

 

A-1

 

	
Registered   No. [   ]
    	
 
    	
Principal Amount: $[   ]
    
	
CUSIP: 80281L AJ4
    	
 
    	
 
    
	
ISIN: US80281LAJ44
    	
 
    	
 
    

 

SANTANDER UK GROUP HOLDINGS PLC

 

4.796% Fixed Rate / Floating Rate Notes due 2024  

 

Santander UK Group Holdings plc, a public limited company incorporated in England and Wales (hereinafter called the “Issuer,” which term shall include any successor entity under the Senior Debt Securities Indenture), for value received, hereby promises to pay to Cede & Co., as nominee for DTC, or registered assigns, upon presentation, the principal sum of [   ] DOLLARS ($[   ]) on November 15, 2024 (the “Maturity Date”).

 

The Issuer hereby promises to pay interest thereon: (1) from November 15, 2018 or from the most recent interest payment date to which interest has been paid or duly provided for, to, but excluding, November 15, 2023 (the “Fixed Rate Period”), semi-annually in arrears on May 15 and November 15 in each year (each, a “Fixed Rate Interest Payment Date”), commencing on May 15, 2019 at the rate of 4.796% per annum; and (2) from November 15, 2023, to, but excluding, the Maturity Date (the “Floating Rate Period”), quarterly in arrears on February 15, 2024, May 15, 2024, August 15, 2024, and the Maturity Date (each, a “Floating Rate Interest Payment Date” and, together with each Fixed Rate Interest Payment Date, an “Interest Payment Date”) at an initial interest rate of LIBOR (as defined on the reverse hereof) plus 1.570% per annum and thereafter at an interest rate that will be reset quarterly on February 15, 2024, May 15, 2024, and August 15, 2024 (each, an “Interest Reset Date”), equal to LIBOR plus 1.570% per annum, until the entire principal hereof is paid or made available for payment.

 

The interest so payable, and punctually paid or duly provided for on any Interest Payment Date will, as provided in the Senior Debt Securities Indenture, be paid to the Person in whose name this Senior Debt Security is registered at the close of business on the Regular Record Date for such interest, which shall be the fifteenth calendar day (whether or not a Business Day) preceding the related Interest Payment Date.  Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date, and may either be paid to the Person in whose name this Senior Debt Security is registered at the close of business on a Special Record Date for the payment of Defaulted Interest to be fixed by the Issuer, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Senior Debt Securities may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Senior Debt Securities Indenture.

 

Payment of the principal of and interest on and any Additional Amounts in respect of this Global Security will be paid to DTC for the purpose of permitting DTC to credit the principal and interest received by it in respect of this Global Security to the accounts of the beneficial owners thereof; provided, however, that if this Senior Debt Security is not a Global Security, payment of the principal of, interest on and Additional Amounts, if any, in respect of this Senior Debt Security will be made at the office or agency of the Trustee in The City of New York, or elsewhere as provided in the Senior Debt Securities Indenture, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; and provided, further, that at the option of the Issuer payment of interest may be made by (a) check mailed to the address of the Person entitled thereto as such address shall appear in the Register or (b) transfer to an account of the Person entitled thereto located inside the United States.

 

During the Fixed Rate Period, if a Fixed Rate Interest Payment Date or a Redemption Date, as the case may be, would fall on a day that is not a Business Day, then the Interest Payment Date, or Redemption Date, as the case may be, will be postponed to the next succeeding Business Day, but no

 

A-2

 

additional interest shall be paid unless the Issuer fails to make payment on such next succeeding Business Day.

 

During the Floating Rate Period, if any Floating Rate Interest Payment Date (other than the Maturity Date or Redemption Date) would fall on a day that is not a Business Day, then the Interest Payment Date, will be postponed to the next succeeding Business Day and interest thereon will continue to accrue to but excluding such succeeding Business Day, except that if that Business Day falls in the next succeeding calendar month, the Interest Payment Date will be the immediately preceding Business Day and interest thereon will accrue to but excluding such preceding Business Day.  If the Maturity Date or Redemption Date would fall on a day that is not a Business Day, then the payment of interest and principal will be made on the next succeeding but no additional interest shall be paid unless the Issuer fails to make payment on such next succeeding Business Day. If any Interest Reset Date would fall on a day that is not a Business Day, the Interest Reset Date will be postponed to the next succeeding Business Day, except that if that Business Day falls in the next succeeding calendar month, the Interest Reset Date will be the immediately preceding Business Day.

 

All amounts of principal, and premium, if any, and interest, on the Senior Debt Securities will be paid by the Issuer 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 (“Taxes”) now or hereafter imposed, levied, collected, withheld or assessed by or on behalf of the country in which the Issuer is organized or any political subdivision or authority thereof or therein having the power to tax (the “Taxing Jurisdiction”), unless such deduction or withholding is required by fiscal or other laws, regulations and directives.  For the purposes of this Senior Debt Security, the phrase “fiscal or other laws, regulations and directives” shall include any obligation of the Issuer to withhold or deduct from a payment pursuant to an agreement described in Section 1471(b) of the Internal Revenue Code of 1986, as amended (the “Code”) or otherwise imposed pursuant to Sections 1471 through 1474 of the Code, any regulations thereunder or official interpretations thereof or any law implementing an intergovernmental approach thereto (collectively, “FATCA”).  If deduction or withholding of any such Taxes shall at any time be required by the Taxing Jurisdiction, the Issuer will pay such additional amounts of, or in respect of, the principal amount of, premium, if any, and interest, on the Senior Debt Securities (“Additional Amounts”) as may be necessary in order that the net amounts paid to the Holders of the Senior Debt Securities, after such deduction or withholding, shall equal the respective amounts of principal, premium, if any, and interest, which would have been payable in respect of the Senior Debt Securities had no such deduction or withholding been required; provided, however, that the foregoing will not apply to any such Tax which would not have been payable or due but for the fact that:

 

(i)            the Holder or the beneficial owner of this Senior Debt Security is a domiciliary, national or resident of, or engaging in business or maintaining a permanent establishment or physically present in, the Taxing Jurisdiction or otherwise has some connection with the Taxing Jurisdiction other than the holding or ownership of this Senior Debt Security, or the collection of any payment of (or in respect of) principal of, premium, if any, or interest, on this Senior Debt Security;

 

(ii)           except in the case of a winding-up of the Issuer in the United Kingdom, this Senior Debt Security is presented (where presentation is required) for payment in the United Kingdom;

 

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

 

(iv)          the Holder or the beneficial owner of this Senior Debt Security or the beneficial owner of any payment of (or in respect of) principal of, premium, if any, or interest on, this Senior Debt Security failed to comply with a request of the Issuer or its liquidator or other authorized person addressed to the Holder (x) to provide information concerning the nationality, residence or identity of

 

A-3

 

the Holder or such beneficial owner or (y) to make any declaration or other similar claim to satisfy any information requirement, which in the case of (x) or (y), is required or imposed by a statute, treaty, regulation or administrative practice of the Taxing Jurisdiction as a precondition to exemption from all or part of such tax, assessment or other governmental charge; or

 

(v)           any combination of sub-clauses (i) through (iv) above;

 

nor shall Additional Amounts be paid with respect to the principal of, premium, if any, and interest on, the Senior Debt Securities to any holder who is a fiduciary or partnership or settlor with respect to such fiduciary or a member of such partnership other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of any Taxing Jurisdiction to be included in the income for tax purposes of a beneficiary or partner or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner who would not have been entitled to such Additional Amounts, had it been the holder.  For the avoidance of doubt, all payments in respect of the Senior Debt Securities will be made subject to any withholding or deduction required pursuant to any fiscal or other laws, regulations and directives, including FATCA, and the Issuer shall not be required to pay Additional Amounts with respect to the principal of, interest and any other payments on, the Senior Debt Securities on account of any such deduction or withholding required pursuant to FATCA.

 

Whenever in this Senior Debt Security there is mentioned, in any context, the payment of the principal of (and premium, if any) or interest, on, or in respect of, the Senior Debt Securities 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 hereof 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.

 

A “Business Day” is any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in the City of New York or London, England are authorized or required by law, regulation or executive order to close.

 

Additional provisions of this Senior Debt Security are set forth following the signature page hereof, which 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 or on behalf of the Trustee referred to on the reverse hereof by manual signature, this Senior Debt Security shall not be entitled to any benefit under the Senior Debt Securities Indenture or be valid or obligatory for any purpose.

 

[The remainder of this page has been left blank intentionally]

 

A-4

 

IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed this [  ] day of November 2018.

 

	
 
    	
SANTANDER UK GROUP HOLDINGS PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated:

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 

 

	
By:
    	
 
    	
 
    
	
 
    	
Authorized Signatory
    	
 
    

 

A-5

 

4.796% Notes due 2024

 

This Senior Debt Security is one or all of a duly authorized issue of securities of the Issuer (herein called the “Senior Debt Securities”), initially limited in aggregate principal amount to $1,000,000,000 issued and to be issued in one or more series under an Amended and Restated Indenture, dated as of April 18, 2017, as supplemented and amended by the First Supplemental Indenture dated as of November 3, 2017 (as supplemented and amended, the “Original Senior Debt Securities Indenture”), between the Issuer and Wells Fargo Bank, National Association, as trustee in respect of the Senior Debt Securities (herein called the “Trustee,” which term includes any successor trustee in respect of the Senior Debt Securities under the Senior Debt Securities Indenture), as further supplemented and amended by the Third Supplemental Indenture, dated as of November 15, 2018 (the “Third Supplemental Indenture” and, together with the Original Senior Debt Securities Indenture, the “Senior Debt Securities Indenture”) to which Senior Debt Securities Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Issuer, the Trustee and the Holders of the Senior Debt Securities and of the terms upon which the Senior Debt Securities are, and are to be, authenticated and delivered.  This Senior Debt Security is one or all of the series designated as the “4.796% Notes due 2024.” All terms used in this Senior Debt Security that are defined in the Senior Debt Securities Indenture and not otherwise defined herein shall have the meanings assigned to them in the Senior Debt Securities Indenture.

 

During the Floating Rate Period, the calculation agent, who shall be Wells Fargo Bank, National Association, or its successor appointed by the Issuer, will determine the initial interest rate by reference to LIBOR on the second London Banking Day preceding November 15, 2023 and the interest rate for each succeeding Interest Reset Date by reference to LIBOR on the second London Banking Day preceding the applicable Interest Reset Date (each, an “Interest Determination Date”).  Promptly upon such determination, the calculation agent will notify the Issuer and the Trustee (if the calculation agent is not the same entity as the Trustee) of the new interest rate.  Upon the request of a holder of this Senior Debt Security, the calculation agent will provide the interest rate then in effect and, if determined, the interest rate that will become effective on the next Interest Reset Date.

 

A “London Banking Day” means any day on which dealings in U.S. Dollars are transacted in the London interbank market.

 

“LIBOR” means, as of any Interest Determination Date:

 

(1) the offered quotation to leading banks in the London interbank market for three-month U.S. dollar deposits (i) as defined by (A) the ICE Benchmark Administration (“IBAM”), (B) its successor in such capacity, or (C) such other person assuming the responsibility of IBAM or its successor in calculating the London Inter-Bank Offered Rate in the event IBAM or its successor no longer do so, and (ii) as calculated by their appointed calculation agent and published, as such rate appears on either the Reuters Monitor Money Rates Service page LIBOR01 (or a successor page on such service) or, if such rate is not available, on such other information system that provides such information, in each case as of 11:00 a.m., London time, on such Interest Determination Date;

 

(2) if no such rate is so published on such Interest Determination Date due to a temporary disruption in service or the market, then the rate for such Interest Determination Date shall be the arithmetic mean (rounded to five decimal places, with 0.000005 being rounded upwards) of the rates for three-month U.S. dollar deposits quoted to the calculation agent by each of four major reference banks in the London interbank market (which may include affiliates of the underwriters), as selected by the Issuer, as of 11:00 a.m., London time, on such Interest Determination Date:

 

·                  if at least two such rates are so provided, LIBOR on the Interest Determination Date will be the arithmetic mean of such rates; or

 

A-6

 

·                  if fewer than two such rates are so provided, LIBOR on the Interest Determination Date will be LIBOR as determined for or otherwise applicable during the last preceding interest period.

 

(3) Notwithstanding clause (2) above, with respect to an Interest Determination Date on which no rate appears on the relevant screen page, if the Issuer (in consultation with the calculation agent) determines that LIBOR has ceased to be published on the relevant screen page as a result of LIBOR ceasing to be calculated or administered for publication thereon or that it is unlawful for either the calculation agent or the Issuer to determine or use the London Inter-Bank Offered Rate, the Issuer will use reasonable efforts to appoint an Independent Adviser to determine (in consultation with the Issuer) the Alternative Base Rate and the Alternative Screen Page by no later than five business days prior to the Interest Determination Date relating to the next succeeding interest period (the “interest determination cut-off date”) for the purpose of determining the rate of interest applicable to the Senior Debt Securities for all future interest periods (subject to the subsequent operation of this paragraph (3)). If the Issuer is unable to appoint an Independent Adviser, or if the Independent Adviser fails to determine the Alternative Base Rate and the Alternative Screen Page prior to the interest determination cut-off date, the Issuer will determine the Alternative Base Rate and the Alternative Screen Page for such interest period; provided that if the Issuer does not determine the Alternative Base Rate and the Alternative Screen Page prior to the Interest Determination Date for such interest period, the interest rate for such interest period will be equal to the  interest rate in effect for the immediately preceding interest period.

 

“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 Issuer) or, only if the Independent Adviser fails to make any such determination, the Issuer, determines is required to be applied to the Alternative Base Rate, as a result of the replacement of LIBOR with the Alternative Base Rate, and is the spread, formula or methodology which:

 

(A)                               has been formally recommended, or formally provided as an option for parties to elect to adopt, by the Bank of England (or any committee thereof or other body appointed or endorsed thereby for such purpose) in relation to the replacement of LIBOR with the Alternative Base Rate;

 

(B)                               the Independent Adviser (in consultation with the Issuer) or, failing which, the Issuer, 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 Alternative Base Rate; or

 

(C)                               if no such customary market usage is recognized or acknowledged, the Independent Adviser in its discretion (in consultation with the Issuer), or, failing which, the Issuer in its discretion, determines (acting in good faith) to be appropriate.

 

“Alternative Base Rate” means the rate that the Independent Adviser or, failing which, the Issuer determines has replaced LIBOR in customary market usage for determining floating interest rates in respect of bonds denominated in U.S. dollars or, if the Independent Adviser or, failing which, the Issuer (in consultation with the calculation agent and acting in good faith and a commercially reasonable manner) determines that there is no such rate, such other rate as the Independent Adviser or, failing which, the Issuer (in consultation with the calculation agent and acting in good faith and a commercially reasonable manner) determines in its or the Issuer’s sole discretion is most comparable to LIBOR. If the Alternative Base Rate is determined, such Alternative Base Rate will be the Alternative Base Rate for the remaining interest periods (subject to the subsequent operation of paragraph (3) above).

 

A-7

 

“Alternative Screen Page” means the alternative screen page, information service or source on which the Alternative Base Rate appears (or such other screen page, information service or source as may replace the alternative screen page, information service or source, in each case, as may be nominated by the person providing or sponsoring the information appearing on such screen page, information service or source for purposes of displaying comparable rates).

 

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

 

If the Independent Adviser (in consultation with the Issuer) or, only if the Independent Adviser fails to make any such determination, the Issuer, determines that an Adjustment Spread is required to be applied to the Alternative Base Rate and determines the quantum of, or a formula or methodology for determining, such Adjustment Spread, then such Adjustment Spread shall be applied to the Alternative Base Rate. If the Independent Adviser is, or, failing which, the Issuer is, as the case may be, unable to determine the quantum of, or a formula or methodology for determining, such Adjustment Spread, then such Alternative Base Rate will apply without an Adjustment Spread.

 

If the Independent Adviser or, failing which, the Issuer determines the Alternative Base Rate or any Adjustment Spread, the Independent Adviser or, failing which, the Issuer may also, following consultation with the calculation agent, make changes to the Alternative Base Rate or the Adjustment Spread, as well as the day count fraction, the business day convention, the definition of business day, the remaining Interest Determination Dates and any method for obtaining the substitute or successor base rate if the Alternative Base Rate or the Alternative Screen Page is unavailable on the relevant Floating Rate Interest Determination Date or otherwise, in each case in order to follow market practice, as well as any other changes that the Issuer, following consultation with the Independent Adviser (if appointed), determines in good faith are reasonably necessary to ensure the proper operation of the Alternative Base Rate, as well as the comparability of the interest rate determined by reference to the Alternative Base Rate to the interest rate determined by reference to LIBOR (the “Floating Rate Calculation Changes”). Any Floating Rate Calculation Changes will apply to the Senior Debt Securities for all future interest rate periods (subject to the subsequent operation of paragraph (3) above).

 

The Issuer will promptly give notice of the determination of the Alternative Base Rate, any Adjustment Spread, the Alternative Screen Page and any Floating Rate Calculation Changes to the Trustee, the Paying Agent, the calculation agent and the Holders; provided that failure to provide such notice will have no impact on the effectiveness of, or otherwise invalidate, any such determination.

 

By its acquisition of the Senior Debt Securities, each Holder (including each holder of a beneficial interest in the Senior Debt Securities) (i) will acknowledge, accept, consent and agree to be bound by the Independent Adviser’s or the Issuer’s determination of the Alternative Base Rate, the Alternative Screen Page, any Adjustment Spread and any Floating Rate Calculation Changes, including as may occur without any prior notice from the Issuer and without the need for the Issuer to obtain any further consent from such Holder, (ii) will waive any and all claims, in law and/or in equity, against the Trustee, the Paying Agent and the calculation agent for, agree not to initiate a suit against the Trustee, the Paying Agent and the calculation agent in respect of, and agree that none of the Trustee, the Paying Agent or the calculation agent will be liable for, the determination of or the failure to determine any Alternative Base Rate, the Alternative Screen Page, any Adjustment Spread or any Floating Rate Calculation Changes and any losses suffered in connection therewith and (iii) will agree that none of the Trustee, the Paying Agent or the calculation agent will have any obligation to determine any Alternative Base Rate, the Alternative Screen Page, any Adjustment Spread or any Floating Rate Calculation Changes (including any adjustments thereto), including in the event of any failure by the Issuer to determine any Alternative Base Rate, the Alternative Screen Page, any Adjustment Spread and any Floating Rate Calculation Changes.

 

A-8

 

During the Floating Rate Period, the amount of interest accrued on this Senior Debt Security to each Interest Payment Date will be calculated by multiplying the principal amount of this Senior Debt Security by an accrued interest factor.  The accrued interest factor will be equal to the sum of the interest factors calculated for each day in the period for which interest is being paid.  The interest factor for each day is equal to the interest rate applicable to that day divided by 360.  The interest rate in effect on any Interest Reset Date will be the applicable rate as reset on that date.  The interest rate applicable to any other day is the interest rate from the immediately preceding Interest Reset Date, or, if none, the initial interest rate of the Senior Debt Securities.

 

Subject to the provisions of the Senior Debt Securities Indenture and the satisfaction of the Regulatory Redemption Conditions (as defined below), the Issuer may redeem the Senior Debt Securities, at its option, in whole, but not in part, on November 15, 2023 at a Redemption Price equal to 100% of the principal amount of the Senior Debt Securities, plus accrued and unpaid interest thereon to, but excluding, the Redemption Date.

 

As provided in and subject to the provisions of the Senior Debt Securities Indenture, subject to the satisfaction of the Regulatory Redemption Conditions the Issuer will also have the option to redeem the Senior Debt Securities in whole on any Interest Payment Date, at a Redemption Price equal to 100% of the principal amount, together with accrued but unpaid interest, if any, in respect of the Senior Debt Securities to the date fixed for redemption (or, in the case of Original Issue Discount Securities, the accreted face amount thereof, together with accrued interest, if any), if, at any time, the Issuer shall determine (such view being confirmed by a written legal opinion of independent United Kingdom counsel of recognized standing as set forth in the Senior Debt Securities Indenture) that as a result of a change in or amendment to the laws or regulations of the Taxing Jurisdiction (including any treaty to which such Taxing Jurisdiction is a party) (as defined below),  any change in the official application or interpretation of such laws or regulations (including a decision of any court or tribunal) which change or amendment becomes effective on or after a date included in the terms of such Senior Debt Securities:

 

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

 

(b)                                 any payment of Interest on an Interest Payment Date in respect of the Senior Debt Securities has been treated as a “distribution,” or the payment of interest on the next Interest Payment Date in respect of any of the Senior Debt Securities would be treated as a “distribution,” in each case 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 an Interest Payment Date the Issuer was not entitled, or on the next Interest Payment Date the Issuer 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 Issuer would be materially reduced).

 

As provided in and subject to the provisions of the Senior Debt Securities Indenture, if a Loss Absorption Disqualification Event has occurred and is continuing, the Issuer may exercise the Loss Absorption Disqualification Event Call Option, having given not less than 30 nor more than 60 days’ notice to the Trustee, the Paying Agent, the Holders and the Registrar (which notice shall be irrevocable and shall specify the Loss Absorption Disqualification Redemption Date). Upon the expiry of such notice the Issuer shall be bound to redeem the Senior Debt Securities accordingly.

 

In any case where the Issuer shall determine that as a result of the occurrence of a Loss Absorption Disqualification Event it is entitled to exercise the Loss Absorption Disqualification Event Call Option in respect of the Senior Debt Securities, the Issuer shall be required to deliver to the

 

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Trustee an Officer’s Certificate stating that the relevant requirement or circumstance referred to herein applies.

 

For the purposes of the Senior Debt Securities:

 

“Capital Rules” means at any time the regulations, requirements, guidelines and policies relating to capital resources requirements or capital adequacy then in effect and applicable to the Group (including, without limitation, any regulations, requirements, guidelines and policies of the Regulator as may from time to time be applicable to the Group).

 

“Group” means the Issuer and each other entity which is part of the UK prudential consolidation group (as that term, or its successor, is used in the Capital Rules) of which the Issuer is part from time to time.

 

“Loss Absorption Disqualification Event” means:

 

(i)                                     at the time that any Loss Absorption Regulation becomes effective after the date of issuance of the Senior Debt Securities, and as a result of such Loss Absorption Regulation becoming so effective, in each case with respect to the Issuer and/or the Group, the Senior Debt Securities are not or will not be eligible to qualify in full towards the Issuer’s and/or the 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 date of issuance of the Senior Debt Securities, such Senior Debt Securities are or will be fully or partially excluded from the Issuer’s and/or the 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 Issuer of such Senior Debt Securities and/or the Group and determined in accordance with, and pursuant to, the relevant Loss Absorption Regulations; provided that a Loss Absorption Disqualification Event shall not occur where the exclusion of the Senior Debt Securities from the relevant minimum requirement(s) is due to the remaining maturity of the Senior Debt Securities 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 Issuer and/or the Group on the date of issuance of the Senior Debt Securities.

 

“Loss Absorption Disqualification Event Call Option” means the Issuer’s option, subject to the satisfaction of the Regulatory Redemption Conditions, to redeem in whole, but not in part, the Senior Debt Securities at any time at a redemption price equal to 100% of the principal amount, together with accrued but unpaid interest, if any, in respect of the Senior Debt Securities to (but excluding) the Loss Absorption Disqualification Redemption Date, upon the occurrence of a Loss Absorption Disqualification Event which is continuing.

 

“Loss Absorption Disqualification Redemption Date” means the date fixed for redemption pursuant to an exercise by the Issuer of the Loss Absorption Disqualification Event Call Option.

 

“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

 

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including, without limitation to the generality of the foregoing, any delegated or implementing acts (such as regulatory technical standards) adopted by the European Commission which are applicable to the United Kingdom 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 and/or the United Kingdom resolution authority from time to time (whether or not such regulations, requirements, guidelines, rules, standards or policies are applied generally or specifically to the Issuer or to the Group).

 

“PRA” means the Prudential Regulation Authority of the United Kingdom.

 

“Regulator” means the PRA or such successor or other authority having primary responsibility for the prudential supervision of the Issuer and the Group.

 

“Regulatory Approval” means, at any time, such approval, consent or prior permission by, or notification required within prescribed periods to, the Regulator, or such waiver of the then prevailing Loss Absorption Regulations from the Regulator, as is required under the then prevailing Loss Absorption Regulations at such time.

 

“Regulatory Preconditions” means if, at the time of a redemption or purchase, the prevailing Loss Absorption Regulations permit the redemption or purchase after compliance with any pre-conditions, the Issuer has complied with such pre-conditions.

 

“Regulatory Redemption Conditions” means: (a) the Issuer has obtained Regulatory Approval; and (b) the Issuer is in compliance with the Regulatory Preconditions.

 

Notwithstanding  any other term of the Senior Debt Securities represented by this Global Securities or the Senior Debt Securities Indenture, if required pursuant to any Loss Absorption Regulation the Issuer may only redeem or repurchase the notes prior to the Maturity Date if it has obtained Regulatory Approval.

 

In the event of a redemption as described in the paragraphs above, unless otherwise specified notice of such redemption to the Holders of the Senior Debt Securities of any series to be redeemed in whole but not in part at the option of the Issuer shall be given by mailing notice of such redemption by first class mail, postage prepaid, at least 30 days and not more than 60 days prior to the date fixed for redemption to such Holders of the Senior Debt Securities of such series at their last addresses as they shall appear upon the Register of the Issuer.

 

The Senior Debt Securities Indenture contains provisions for satisfaction and discharge of the Senior Debt Securities Indenture applicable to the Issuer upon compliance by the Issuer with certain conditions set forth in the Senior Debt Securities Indenture, which provisions apply to this Senior Debt Security.

 

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

 

As provided in and subject to the provisions of the Senior Debt Securities Indenture, if an Event of Default occurs and is continuing with respect to a series of Senior Debt Securities (except in any such case for a solvent winding-up solely for the purpose of a merger, reconstruction or amalgamation of us, the terms of which reorganization, reconstruction or amalgamation (i) have previously been approved in writing by a majority of Holders and (ii) do not provide that the Senior Debt Securities shall thereby become redeemable or repayable in accordance with the terms of the Senior Debt Securities), the Trustee may, and if so requested by the Holders of not less than 25% in principal amount of the outstanding Senior Debt Securities of such series will, declare the principal

 

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amount (or, in the case of original issue discount securities, the accreted face amount) together with accrued interest, if any, with respect to the Senior Debt Securities of such series due and payable immediately, by a notice in writing to the Issuer (and to the Trustee if given by the Holder or Holders), and upon any such declaration such principal amount (or specified amount) shall become immediately due and payable. The Holder of this Senior Debt Security shall not have the right to institute any proceeding with respect to the Senior Debt Securities Indenture or for the appointment of an administrator, receiver or trustee or for any other remedy thereunder, unless such Holder has previously given written notice to the Trustee of a continuing Event of Default or Default with respect to such Senior Debt Security specifying such Event of Default or Default and stating that such notice is a “Notice of Default” under the Senior Debt Securities Indenture; the Holders of not less than 25% in aggregate principal amount of such Senior Debt Security shall have made written request to the Trustee to institute proceedings in respect of such Event of Default or Default in its own name, as Trustee hereunder; such Holders have offered to the Trustee reasonable indemnity or security satisfactory to it against the costs, expenses and liabilities to be incurred in compliance with such request; the Trustee for 60 days after its receipt of such notice, request and offer of indemnity or security has failed to institute any such proceeding; and no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of such Senior Debt Security; it being understood and intended that no one or more Holders of this series shall have any right in any manner whatsoever by virtue of, or by availing of, any provision of the Senior Debt Securities Indenture or the Senior Debt Securities to affect, disturb or prejudice the rights of any other such Holders or holders, or to obtain or to seek to obtain priority or preference over any other such Holders or holders or to enforce any right under the Senior Debt Securities Indenture, except in the manner herein provided and for the equal and ratable benefit of all Holders of this series. The foregoing shall not apply to any suit instituted by the Holder of this Senior Debt Security for the enforcement of any payment of principal hereof or interest hereon on or after the respective due dates expressed herein.

 

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

 

No reference herein to the Senior Debt Securities Indenture and no provision of this Senior Debt Security or of the Senior Debt Securities Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Senior Debt Security at the times, place and rate, and in the coin or currency, herein prescribed.

 

The Issuer may, from time to time, without the consent of the Holders of the Senior Debt Securities, issue additional Senior Debt Securities of this series having the same ranking and same interest rate, stated maturity, redemption terms and other terms, except for the price to the public and issue date and first Interest Payment Date, as this Senior Debt Security; provided however that such additional Senior Debt Securities shall be issued under a separate CUSIP, Common Code and/or ISIN number unless the additional Senior Debt Securities are issued pursuant to a “qualified reopening” of the original series, are otherwise treated as part of the same “issue” of debt instruments as the original series, or the original series was issued with no more than a de minimis amount of original issue discount and the additional Senior Debt Securities are issued with no more than a de minimis amount

 

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of original issue discount, in each case for U.S. federal income tax purposes.  Any such additional Senior Debt Securities, together with this Senior Debt Security, will constitute a single series of Senior Debt Securities under the Senior Debt Securities Indenture.

 

As provided in the Senior Debt Securities Indenture and subject to certain limitations therein set forth, the transfer of this Senior Debt Security is registrable in the Register, upon surrender of this Senior Debt Security for registration of transfer at the office or agency of the Issuer in any place of payment where the principal of and interest on this Senior Debt Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Registrar duly executed by the registered Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Senior Debt Securities of this series, of authorized denominations containing identical terms and provisions, of a like aggregate principal amount, will be issued to the designated transferee or transferees.

 

The Senior Debt Securities of this series are issuable only in registered form without coupons in denominations of $200,000 and integral multiples of $1,000 in excess thereof. As provided in the Senior Debt Securities Indenture and subject to certain limitations set forth therein, Senior Debt Securities of this series are exchangeable for a like aggregate principal amount of Senior Debt Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same.

 

No service charge shall be made for any such registration of transfer or exchange, but, subject to certain exceptions set forth in the Senior Debt Securities Indenture, the Issuer may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

Prior to due presentment of this Senior Debt Security for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the Person in whose name this Senior Debt Security is registered as the owner hereof for all purposes, whether or not this Senior Debt Security be overdue, and none of the Issuer, the Trustee or any such agent shall be affected by notice to the contrary.

 

The obligations of the Issuer under the Senior Debt Securities Indenture and this Senior Debt Security and all documents delivered in the name of the Issuer in connection herewith and therewith do not and shall not constitute personal obligations of the directors, officers, employees, agents or shareholders of the Issuer or any of them, and shall not involve any claim against or personal liability on the part of any of them, and all persons including the Trustee shall look solely to the assets of the Issuer for the payment of any claim thereunder or for the performance thereof and shall not seek recourse against such directors, officers, employees, agents or shareholders of the Issuer or any of them or any of their personal assets for such satisfaction.  The performance of the obligations of the Issuer under the Senior Debt Securities Indenture and this Senior Debt Security and all documents delivered in the name of the Issuer in connection therewith shall not be deemed a waiver of any rights or powers of the Issuer or its directors or shareholders under the Issuer’s Memorandum and Articles of Association.

 

Notwithstanding any other term of the Senior Debt Securities or the Senior Debt Securities Indenture or any other agreements, arrangements or understandings between the Issuer and any Holder of the Senior Debt Securities (including for these purposes each holder of a beneficial interest in the Senior Debt Securities), by its acquisition of the Senior Debt Securities, each Holder of the Senior Debt Securities acknowledges, accepts, agrees to be bound by and consents to:

 

(a) the effect of the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority, whether or not imposed with prior notice, that may include and result in:  (i) the reduction of all, or a portion, of the Amounts Due; (ii) the conversion of all, or a portion, of the Amounts Due on the Senior Debt Securities into the Issuer’s or another Person’s shares, other securities or other obligations (and the issue to or conferral on the Holder of the Senior Debt Securities of such shares,

 

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other securities or other obligations) including by means of an amendment, modification or variation of the terms of the Senior Debt Securities; (iii) the cancellation of the Senior Debt Securities; and/or (iv) the amendment or alteration of the maturity of the Senior Debt Securities or the amount of interest payable on the Senior Debt Securities, or the date on which the interest becomes payable, including by suspending payment for a temporary period; and

 

(b) the variation, if necessary, of the terms of the Senior Debt Securities Indenture or the Senior Debt Securities to give effect to the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority.

 

No Amounts Due on the Senior Debt Securities will become due and payable or be paid after the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority if and to the extent such Amounts Due have been reduced, converted, cancelled, amended or altered as a result of such exercise.

 

Notwithstanding any other provision of the Senior Debt Securities Indenture or the Senior Debt Securities, neither a reduction or cancellation, in part or in full, of the Amounts Due, the conversion thereof into another security or obligation of the Issuer or another Person, as a result of the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Issuer, nor the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Senior Debt Securities will be an Event of Default.

 

By its acquisition of the Senior Debt Securities, each Holder of the Senior Debt Securities (which for these purposes includes each holder of a beneficial interest in the Senior Debt Securities):

 

(i) to the extent permitted by the Trust Indenture Act, waives any and all claims, in law and/or in equity, against the Trustee for, agrees not to initiate a suit against the Trustee in respect of, and agrees that the Trustee will not be liable for, any action that the Trustee takes, or abstains from taking, in either case in accordance with the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Senior Debt Securities;

 

(ii) acknowledges and agrees that neither a cancellation or deemed cancellation of the principal or interest (in each case, in whole or in part), nor the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Senior Debt Securities will give rise to a default for purposes of Section 315(b) (Notice of Default) and Section 315(c) (Duties of the Trustee in Case of Default) of the Trust Indenture Act; and

 

(iii) acknowledges and agrees that, upon the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority:

 

(A) the Trustee shall not be required to take any further directions from the Holders of the Senior Debt Securities with respect to any portion of the Senior Debt Securities that are written-down, converted to equity and/or cancelled under Section 5.12 of the Senior Debt Securities Indenture, and

 

(B) the Senior Debt Securities Indenture shall not impose any duties upon the Trustee whatsoever with respect to the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority.

 

Notwithstanding clauses (i)-(iii) above, if, following the completion of the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority, the Senior Debt Securities remain Outstanding (for example, if the exercise of the UK Bail-in Power results in only a partial write-down of the principal of the Senior Debt Securities), then the Trustee’s duties under the Senior Debt Securities Indenture shall remain applicable with respect to such Senior Debt Securities following such completion to the extent the Issuer and the Trustee shall agree pursuant to a supplemental indenture or an amendment to the Senior Debt Securities Indenture; provided, however, that,

 

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notwithstanding the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority, so long as the Senior Debt Securities remain Outstanding, there will at all times be a Trustee for the Senior Debt Securities in accordance with, Section 6.09 of the Senior Debt Securities Indenture, and the resignation and/or removal of the Trustee and the appointment of a successor Trustee will continue to be governed by Sections 6.10 and 6.11 of the Senior Debt Securities Indenture, respectively, including to the extent no additional supplemental indenture or amendment is agreed upon in the event the Senior Debt Securities remain Outstanding following the completion of the exercise of the UK Bail-in Power.

 

Upon the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Senior Debt Securities, the Issuer will provide a written notice to DTC as soon as practicable regarding such exercise of the UK Bail-in Power for the purposes of notifying the Holders of such occurrence. The Issuer will also deliver a copy of such notice to the Trustee for information purposes. Each Holder of the Senior Debt Securities (including for these purposes each holder of a beneficial interest in the Senior Debt Securities) shall be deemed to have authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it holds the Senior Debt Securities to take any and all necessary action, if required, to implement the exercise of the UK Bail-in Power with respect to the Senior Debt Securities as it may be imposed, without any further action or direction on the part of such Holder or the Trustee.

 

“UK Bail-in Power” means any write-down, conversion, transfer, modification, or suspension power existing from time to time under, and exercised in compliance with, any laws, regulations, rules or requirements in effect in the United Kingdom, relating to the transposition of Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms as amended from time to time (“BRRD”), including but not limited to the UK Banking Act 2009, as the same may be amended from time to time, including by the Financial Services (Banking Reform) Act 2013, and the instruments, rules and standards created thereunder, pursuant to which: (i) any obligation of a Regulated Entity (or other affiliate of such Regulated Entity) can be reduced, cancelled, modified, or converted into shares, other securities, or other obligations of such Regulated Entity or any other Person (or suspended for a temporary period); and (ii) any right in a contract governing an obligation of a Regulated Entity may be deemed to have been exercised.

 

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

 

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

 

“Amounts Due” means the principal amount of, and accrued but unpaid interest, including any Additional Amounts due on, the debt securities. References to principal and interest will include payments of principal and interest that have become due and payable but which have not been paid, prior to the exercise of any UK bail-in power by the Relevant UK Resolution Authority.

 

The Senior Debt Securities Indenture and the Senior Debt Securities, including this Senior Debt Security, shall be governed by and construed in accordance with the law of the State of New York.

 

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

 

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ASSIGNMENT FORM

 

FOR VALUE RECEIVED, the undersigned hereby
 sells, assigns and transfers unto

 

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

 

 

 

(Please Print or Typewrite Name and Address, including Zip Code, of Assignee)

 

 

the within Security of the company and                          hereby does irrevocably constitute and appoint

 

 

attorney to transfer said Security on the books of the within-named company with full power of substitution in the premises.

 

 

	
Dated
    	
 
    
	
 
    
	
 
    
	
Signature
    	
 
    
			

 

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

 

 

	
Signature Guaranteed:
    	
 
    

 

NOTICE: Signature(s) must be guaranteed by an “eligible guarantor institution” that is a member or participant in a “signature guarantee program” (e.g., the Securities Transfer Agents Medallion Program, the Stock Exchange Medallion Program and the New York Stock Exchange Medallion Program).

 

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