Document:

Exhibit 4.2

 

 

 

SANTANDER ISSUANCES, S.A. UNIPERSONAL

 

as Issuer

 

BANCO SANTANDER, S.A.

 

as Guarantor

 

TO

 

THE BANK OF NEW YORK MELLON,

acting through its London Branch

 

as Trustee

 

 

 

 

 

 

 

FORM OF INDENTURE

 

Subordinated Debt Securities

 

 

 

 

 

    	 

    	 

    

 

BANCO
SANTANDER, S.A.

 

Reconciliation
and tie between Trust Indenture Act of 1939, as amended by the Trust Indenture Reform Act of 1990, and the Subordinated Debt Securities
Indenture, dated as of [Ÿ].

 

	Trust
Indenture Act Section
	Subordinated
Debt Securities Indenture Section

	§310	(a)(1)	‎6.10
	 	(a)(2)	‎6.10
	 	(a)(3)	Not Applicable
	 	(a)(4)	Not Applicable
	 	(b)	‎6.09‎,
    ‎6.11
	§311	(a)	‎6.14
	 	(b)	‎6.14
	§312	(a)	‎7.01, ‎7.02(a)
	 	(b)	‎7.02(b)
	 	(c)	‎7.02(c)
	§313	(a)	‎7.03(a)
	 	(b)	‎7.03(a)
	 	(c)	‎1.06, ‎7.03(a)
	 	(d)	‎7.03(b)
	§ 314	(a)	‎7.04, ‎10.06
	 	(b)	Not Applicable
	 	(c)(1)	‎1.02
	 	(c)(2)	‎1.02
	 	(c)(3)	Not Applicable
	 	(d)	Not Applicable
	 	(e)	‎1.02
	 	(f)	Not Applicable
	§315	(a)	‎6.01
	 	(b)	‎6.03, ‎7.03(a)
	 	(c)	‎6.01
	 	(d)	‎6.01
	 	(d)(1)	‎6.01
	 	(d)(2)	‎6.01
	 	(d)(3)	‎6.01
	 	(e)	‎5.14
	§316	(a)(1)(A)	‎5.12
	 	(a)(l)(B)	‎5.13
	 	(a)(2)	Not Applicable
	 	(a)(last sentence)	‎1.01
	 	(b)	‎5.08
	§317	(a)(1)	‎5.03
	 	(a)(2)	‎5.04
	 	(b)	‎10.03
	§318	(a)	‎1.08

 

    	 

    	 

    

 

 

NOTE: This
reconciliation and tie shall not, for any purpose, be deemed to be a part of the Subordinated Debt Securities Indenture.

 

 

 

    	 

    	 

    

 

 

TABLE
OF CONTENTS

 __________________

 

Page

 

	Article
    1 
Definitions and Other Provisions of General Application
	Section
    1.01.  Definitions	2
	Section
    1.02.  Compliance Certificates and Opinions	12
	Section
    1.03.  Form of Documents Delivered to Trustee	12
	Section
    1.04.  Acts of Holders	13
	Section
    1.05.  Notices, Etc. to Trustee, Company or Guarantor	14
	Section
    1.06.  Notice to Holders; Waiver	15
	Section
    1.07.  Language of Notices, Etc	16
	Section
    1.08.  Conflict with Trust Indenture Act	16
	Section
    1.09.  Effect of Headings and Table of Contents	16
	Section
    1.10.  Successors and Assigns	16
	Section
    1.11.  Separability Clause	16
	Section
    1.12.  Benefits of Subordinated Debt Securities Indenture	16
	Section
    1.13.  Governing Law	16
	Section
    1.14.  Business   Days and Legal Holidays	17
	Section
    1.15.  Appointment of Agent for Service	17
	Section
    1.16.  Calculation Agent	18
	Section
    1.17.  Waiver of Jury Trial	18
	Section
    1.18.  Judgment Currency	18
	Article
    2 
Subordinated Debt Security Forms
	Section
    2.01.  Forms Generally	19
	Section
    2.02.  Form of Guarantee	19
	Section
    2.03.  Form of Trustee’s Certificate of Authentication	21
	Article
    3 
The Subordinated Debt Securities
	Section
    3.01.  Amount Unlimited, Issuable in Series	22
	Section
    3.02.  Denominations	24
	Section
    3.03.  Execution, Authentication, Delivery and Dating	25
	Section
    3.04.  Temporary Subordinated Debt Securities	26
	Section
    3.05.  Registration, Registration of Transfer and Exchange	27
	Section
    3.06.  Mutilated, Destroyed, Lost and Stolen Subordinated Debt Securities	30
	Section
    3.07.  Payment; Interest Rights Preserved	31
	Section
    3.08.  Persons Deemed Owners	33
	Section
    3.09.  Cancellation	34
	Section
    3.10.  Computation of Interest	34
	Section
    3.11.  CUSIP Numbers	35
	Section
    3.12.  Additional Subordinated Debt Securities	35

 

    i 

     

    

 

	Section
    3.13.  Correction of Minor Defects in or Amendment of Subordinated Debt Securities	35
	Section
    3.14.  Payments Subject to Fiscal Laws	35
	Article
    4 
Satisfaction and Discharge
	Section
    4.01.  Satisfaction and Discharge of Subordinated Debt Securities Indenture	36
	Section
    4.02.  Defeasance and Covenant Defeasance	37
	Section
    4.03.  Application of Trust Money	41
	Section
    4.04.  Repayment to Company	42
	Article
    5 
Remedies
	Section
    5.01.  Events of Default	42
	Section
    5.02.  Enforcement of Remedies	43
	Section
    5.03.  Collection of Indebtedness and Suits for Enforcement by the Trustee	43
	Section
    5.04.  Trustee May File Proofs of Claim	45
	Section
    5.05.  Trustee May Enforce Claims Without Possession of Subordinated Debt Securities	45
	Section
    5.06.  Application of Money Collected	46
	Section
    5.07.  Limitation on Suits	46
	Section
    5.08.  Unconditional Right of Holders to Receive Principal, Premium and Interest, if any, and Additional Amounts	47
	Section
    5.09.  Restoration of Rights and Remedies	47
	Section
    5.10.  Rights and Remedies Cumulative	48
	Section
    5.11.  Delay or Omission Not Waiver	48
	Section
    5.12.  Control by Holders	48
	Section
    5.13.  Waiver of Past Defaults	48
	Section
    5.14.  Undertaking for Costs	49
	Article
    6 
The Trustee
	Section
    6.01.  Certain Duties and Responsibilities	49
	Section
    6.02.  Spanish Tax Procedures and Obligations of the Trustee	50
	Section
    6.03.  Notice of Defaults	51
	Section
    6.04.  Certain Rights of Trustee	51
	Section
    6.05.  Not Responsible for Recitals or Issuance of Subordinated Debt Securities	53
	Section
    6.06.  May Hold Subordinated Debt Securities	54
	Section
    6.07.  Money Held in Trust	54
	Section
    6.08.  Compensation and Reimbursement	54
	Section
    6.09.  Disqualification; Conflicting Interests	55
	Section
    6.10.  Corporate Trustee Required; Eligibility	55
	Section
    6.11.  Resignation and Removal; Appointment of Successor	56

 

    ii 

     

    

 

	Section
    6.12.  Acceptance of Appointment by Successor	58
	Section
    6.13.  Merger, Conversion, Consolidation or Succession to Business	59
	Section
    6.14.  Preferential Collection of Claims	59
	Section
    6.15.  Appointment of Authenticating Agent	59
	Section
    6.16.  Appointment of Additional Trustees	 
	Section
    6.17  Tax Withholding	 
	Article
    7 
Holders Lists and Reports by Trustee and Company
	Section
    7.01.  The Company or the Guarantor to Furnish Trustee Names and Addresses of Holders	62
	Section
    7.02.  Preservation of Information; Communication to Holders	62
	Section
    7.03.  Reports by Trustee	62
	Section
    7.04.  Reports by the Company and the Guarantor	63
	Article
    8 
Consolidation, Merger, Conveyance or Transfer
	Section
    8.01.  Company or Guarantor May Consolidate, Etc., Only on Certain Terms	64
	Section
    8.02.  Successor Corporation Substituted	65
	Section
    8.03.  Assumption of Obligations	65
	Article
    9 
Supplemental Indentures
	Section
    9.01.  Supplemental Indentures without Consent of Holders	67
	Section
    9.02.  Supplemental Indentures with Consent of Holders	68
	Section
    9.03.  Execution of Supplemental Indentures	69
	Section
    9.04.  Effect of Supplemental Indentures	69
	Section
    9.05.  Conformity with Trust Indenture Act	70
	Section
    9.06.  Reference in Subordinated Debt Securities to Supplemental Indentures	70
	Article
    10 
Covenants
	Section
    10.01.  Payment of Principal, Premium, and Interest	70
	Section
    10.02.  Maintenance of Office or Agency	70
	Section
    10.03.  Money for Payments to be Held in Trust	71
	Section
    10.04.  Additional Amounts	72
	Section
    10.05.  Corporate Existence	75
	Section
    10.06.  Statement as to Compliance	75
	Section
    10.07.  Original Issue Document	75
	Article
    11 
Redemption of Subordinated Debt Securities
	Section
    11.01.  Applicability of Article	76

 

    iii 

     

    

 

	Section
    11.02.  Election to Redeem; Notice to Trustee	76
	Section
    11.03.  Selection by Trustee of Subordinated Debt Securities to Be Redeemed	76
	Section
    11.04.  Notice of Redemption	77
	Section
    11.05.  Deposit of Redemption Price	77
	Section
    11.06.  Subordinated Debt Securities Payable on Redemption Date	78
	Section
    11.07.  Subordinated Debt Securities Redeemed in Part	78
	Section
    11.08.  Optional Redemption Due to Changes in Tax Treatment	78
	Section
    11.09.  Optional Redemption For Capital Disqualification Event	79
	Section
    11.10.  Optional Early Redemption (Call)	80
	Article
    12 
Subordination of Subordinated Debt Securities
	Section
    12.01.  Subordinated Debt Securities Subordinate to Claims of Senior Creditors	80
	Section
    12.02.  Status of the Subordinated Debt Securities	81
	Section
    12.03.  Provisions Solely to Define Relative Rights	81
	Section
    12.04.  Trustee to Effectuate Subordination	82
	Section
    12.05.  Trustee Not Fiduciary for Senior Creditors	82
	Section
    12.06.  Rights of Trustee as Senior Creditor; Preservation of Trustee’s Rights	82
	Section
    12.07.  Article Applicable to Paying Agents	82
	Article
13 
Guarantee
	Section
    13.01.  The Guarantee	83
	Section
    13.02.  Subordination of the Guarantee	83
	Section
    13.03.  Guarantee Unconditional, Etc	84
	Section
    13.04.  Reinstatement	85
	Section
    13.05.  Subrogation	85
	Section
    13.06.  Assumption By Guarantor	85
	Article
    14 
Spanish Bail-in and Resolution Actions
	Section
    14.01.  Agreement with Respect to Spanish Bail-in Power	86
	Section
    14.02.  Agreement with Respect to the Exercise of Resolution Tools	88

 

    iv 

     

    
 

SUBORDINATED
DEBT SECURITIES INDENTURE, dated as of [●], among SANTANDER ISSUANCES, S.A. UNIPERSONAL, a sociedad anónima incorporated
under the laws of the Kingdom of Spain (the “Company”), having its principal executive office located at Ciudad
Grupo Santander, Avenida de Cantabria s/n, 28660 Boadilla del Monte, Madrid, Spain, BANCO SANTANDER, S.A., a sociedad anónima
incorporated under the laws of the Kingdom of Spain (the “Guarantor”), having its principal executive office
located at Ciudad Grupo Santander, Avenida de Cantabria s/n, 28660 Boadilla del Monte, Madrid, Spain, and THE BANK OF NEW YORK
MELLON, acting through its London Branch, a banking corporation duly organized and existing under the laws of the State of New
York as Trustee (the “Trustee”), having its Corporate Trust Office at One Canada Square, London, E14 5AL, United
Kingdom.

 

RECITALS
OF THE COMPANY

 

The Company
has duly authorized the execution and delivery of this Subordinated Debt Securities Indenture to provide for the issuance from
time to time of its Subordinated Debt Securities (the “Subordinated Debt Securities”), to be issued in one
or more series, represented by one or more Global Securities in registered form, or represented by definitive Subordinated Debt
Securities in registered form, the amount and terms of each such series to be determined as hereinafter provided.

 

All things
necessary to make this Subordinated Debt Securities Indenture a valid and binding agreement of the Company, in accordance with
its terms, have been done.

 

All things
necessary to make the Guarantees, when executed by the Guarantor and endorsed on the Subordinated Debt Securities issued under
this Subordinated Debt Securities Indenture, and authenticated and delivered hereunder, the valid obligations of the Guarantor,
and to make this Subordinated Debt Securities Indenture a valid agreement of the Guarantor, in accordance with their and its terms,
have been done.

 

This Subordinated
Debt Securities Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended, and the rules and regulations
of the Securities and Exchange Commission promulgated thereunder that are required to be part of this Subordinated Debt Securities
Indenture and, to the extent applicable, shall be governed by such provisions.

 

NOW, THEREFORE,
THIS SUBORDINATED DEBT SECURITIES INDENTURE WITNESSETH:

 

For and in
consideration of the premises and the purchase of the Subordinated Debt Securities by the Holders (as defined herein) thereof,
it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of Subordinated Debt Securities of
any series as follows:

 

    1 

     

    

 

Article
1

Definitions and Other Provisions of General Application

 

Section 1.01.     
Definitions. For all purposes of this Subordinated Debt Securities Indenture, except as otherwise expressly provided
or unless the context otherwise requires:

 

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

 

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

 

(3)            all
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles”
with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted
in the Kingdom of Spain at the date of such computation and as applied by the Company;

 

(4)            the
words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Subordinated

 

Debt Securities
Indenture as a whole and not to any particular Article, Section or other subdivision;

 

(5)            any
reference to an “Article” or a “Section” refers to an Article or Section of this Subordinated
Debt Securities Indenture; and

 

(6)            the
word “or” is always used inclusively (for example, the phrase “A or B” means “A or B or both”,
not “either A or B but not both”).

 

Certain terms
used principally in certain Articles hereof are defined in those Articles.

 

“Act”,
when used with respect to any Holder, has the meaning set forth in ‎Section
1.04.

 

“Additional
Amounts” has the meaning set forth in ‎Section 10.04.

 

“Additional
Subordinated Debt Securities” has the meaning set forth in ‎Section
3.12.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition, “control” when used with respect
to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by

 

    2 

     

    

 

contract
or otherwise; and the terms “controlling” and “controlled” have meanings correlative to
the foregoing.

 

“Agents”
means the agents appointed in accordance with this Subordinated Debt Securities Indenture or applicable supplemental indenture;

 

“Agent
Member” means a member of, or participant in, any Depositary.

 

“Amounts
Due” means the principal amount of, premium, if any, together with any accrued but unpaid interest, and Additional
Amounts, if any, due on the Subordinated Debt Securities of any series. References to such amounts will include amounts that
have become due and payable, but which have not been paid, prior to the exercise of the Spanish Bail-in Power by the relevant
resolution authority.

 

“Applicable
Banking Regulations” means at any time the laws, regulations, requirements, guidelines and policies relating to capital
adequacy applicable to the Guarantor and/or the Group including, without limitation to the generality of the foregoing, those
regulations, requirements, guidelines and policies relating to capital adequacy then in effect of the Regulator (whether or not
such requirements, guidelines or policies have the force of law and whether or not they are applied generally or specifically
to Banco Santander and/or the Group).

 

“Authenticating
Agent” means any Person authorized by the Trustee to act on behalf of the Trustee to authenticate Subordinated Debt
Securities.

 

“Authorized
Newspaper” means a newspaper, in an official language of the place of publication or in the English language, customarily
published on each day that is a Business Day in the place of publication, whether or not published on days that are Legal Holidays
in the place of publication, and of general circulation in each place in connection with which the term is used or in the financial
community of each such place. Where successive publications are required to be made in Authorized Newspapers, the successive publications
may be made in the same or in different newspapers in the same city meeting the foregoing requirements and in each case on any
day that is a Business Day in the place of publication.

 

“Board
of Directors” means either the board of directors of the Company or Guarantor, as the case may be, or any committee
or Person duly authorized to act generally or in any particular respect for the Company or Guarantor hereunder.

 

“Board
Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary or any Person duly
authorized by the Company or the Guarantor, as the case may be, to have been duly adopted by the relevant Board of Directors
or an authorized committee thereof and to be in full force and effect on the date of such certification and delivered to
the Trustee.

 

“BRRD”
means Directive 2014/59/EU establishing a framework for the recovery and
resolution of credit institutions and investment firms, as amended or superseded from time to time.

 

    3 

     

    

 

“Business
Day” means, unless otherwise provided in the form of Subordinated Debt Securities for any particular series pursuant
to the provisions of this Subordinated Debt Securities Indenture, any day, other than Saturday or Sunday, that is neither a Legal
Holiday nor a day on which banking institutions are authorized or required by law, regulation or executive order to close in the
City of New York, London, Madrid or any other place or places where the principal of, or any premium or interest on, or any Additional
Amounts with respect to the Subordinated Debt Securities of that series are payable.

 

“Calculation
Agent” means the Trustee or such other person authorized by the Company as the party responsible for calculating the
rate(s) of interest and interest amount(s) and/or such other amount(s) from time to time in relation to any series of Subordinated
Debt Securities.

 

“Commission”
means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any
time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.

 

“Company”
means the Person named as the “Company” in the first paragraph of this instrument until a successor Person shall have
become such pursuant to the applicable provisions of this Subordinated Debt Securities Indenture, and thereafter “Company”
shall mean such successor Person.

 

“Company
Request” and “Company Order” mean, respectively, a written request or order, as the case may be,
signed in the name of the Company by any member of the Board of Directors or any officer or representative of the Company empowered
to do so by Board Resolution, and delivered to the Trustee.

 

“Conversion
Event” means the cessation of use of (i) a Foreign Currency both by the government of the country which issued such
currency and for the settlement of transactions by a central bank or other public institutions of or within the international
banking community, or (ii) the euro both within the European monetary system and for the settlement of transactions by public
institutions of or within the European Union.

 

“Corporate Trust Office”
means the office of the Trustee at which its corporate trust business in London, England, is principally administered, which office
as of the date hereof is located at One Canada Square, London E14 5AL (Attention: Corporate Trust Administration, facsimile:  +44
20 7964 2536) or, if a different Trustee is appointed for a particular series of Subordinated Debt Securities, the address set
forth in the supplemental indenture naming the Trustee for that particular series of Subordinated Debt Securities.

 

The term
“corporation” includes corporations, associations, companies, partnerships and business trusts.

 

    4 

     

    

 

“CRR”
means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on the prudential requirements
for credit institutions and investment firms and amending Regulation (EU) No. 648/2012 or such other regulation as may come into
effect in place thereof.

 

“Default
Interest” has the meaning set forth in ‎Section
3.07.

 

“Depositary”
means, with respect to any series of Subordinated Debt Securities, a clearing agency that is designated to act as Depositary for
the Global Securities evidencing all or part of such Subordinated Debt Securities as contemplated by ‎Section
3.05.

 

“dollar”
or “$” or any similar reference means the coin or currency of the United States of America as at the time of
payment is legal tender for the payment of public and private debts.

 

“DTC”
means The Depository Trust Company or its nominee or its or their successor.

 

“Early
Redemption Amount (Call)” has the meaning set forth in Section 11.10.

 

“Early
Redemption Amount (Capital Disqualification Event)” has the meaning set forth in Section 11.09.

 

“Early
Redemption Amount (Tax)” has the meaning set forth in Section 11.08.

 

“EUR”,
“euro” or “€” means the currency of the member states of the European Union (“EU”)
that, from time to time, have adopted the single currency in accordance with the treaty establishing the European Community, as
amended from time to time.

 

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

 

“Exchange
Act” means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated
by the Commission thereunder.

 

“Foreign
Currency” means the euro or any currency issued by the government of any country (or a group of countries or participating
member states) other than the United States which as at the time of payment is legal tender for the payment of public and private
debts.

 

“Foreign
Government Securities” means with respect to Subordinated Debt Securities of any series that are denominated in a Foreign
Currency, non-callable (i) direct obligations of the participating member state or government that issued such Foreign Currency
for the payment of which obligations its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised
by and acting as an agency or instrumentality of such participating member state or government, the payment of which obligations
is unconditionally guaranteed as a full faith and credit obligation of such participating member state or government. For the
avoidance of doubt, for all purposes hereof, euro shall be deemed to have been issued by each participating member state from
time to time.

 

“Global
Security” means one or more global certificates evidencing all or part of a series of Subordinated Debt Securities,
authenticated and delivered to or on behalf of the Holder and registered in the name of the Holder or its nominee.

 

    5 

     

    

 

“Group”
means Banco Santander, S.A. and its consolidated subsidiaries.

 

“Guarantees”
means the guarantees to be entered into by the Guarantor with respect to the Subordinated Debt Securities as set forth in ‎Section
13.01 endorsed on a Subordinated Debt Security authenticated and delivered pursuant to this Subordinated Debt Securities
Indenture, set forth in ‎‎Section 2.02.

 

“Guarantor”
means Banco Santander, S.A., until a successor Person shall have become such pursuant to the applicable provisions of the Subordinated
Debt Securities Indenture, and thereafter “Guarantor” shall mean such successor Person.

 

“Guarantor
Request” and “Guarantor Order” mean, respectively, a written request or order, as the case may be,
signed in the name of the Guarantor by any member of the Board of Directors or any officer or representative of the Guarantor
empowered to do so by Board Resolution, and delivered to the Trustee.

 

“Holder”
means a Person in whose name a Subordinated Debt Security in global or definitive form is registered in the Subordinated Debt
Security Register.

 

“Independent
Public Accountants” means accountants or a firm of accountants that, with respect to the Company, Guarantor and any
other obligor under the Subordinated Debt Securities, are independent public accountants within the meaning of the Securities
Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder, who may be the independent public
accountants regularly retained by the Company or Guarantor or who may be other independent public accountants.

 

“Interest
Payment Date”, when used with respect to any Subordinated Debt Security, means the Stated Maturity of any installment
of interest on such Subordinated Debt Security.

 

“Law
11/2015” means Law 11/2015, of June 18, for the recovery and resolution of credit institutions and investment
firms (Ley 11/2015, de 18 de junio, de recuperacion y resolucion de entidades de credito y empresas de servicios de inversion),
as amended from time to time.

 

“Legal
Holiday”, with respect to any Place of Payment or other location, means a Saturday, a Sunday or a day on which banking
institutions in such Place of Payment or other location are not authorized or obligated to be open.

 

“Losses”
means any and all claims, losses, liabilities, damages, costs, expenses and judgments (including legal fees and expenses) sustained
by the Company or the Trustee.

 

“Maturity”,
when used with respect to any Subordinated Debt Security, means the date, if any, on which the principal or any installment of
principal of such Subordinated Debt Security becomes due and payable as therein or herein provided, whether by call for redemption,
repurchase, declaration of acceleration or otherwise.

 

    6 

     

    

 

“Officer’s Certificate”
means a certificate signed by any member of the Board of Directors, the Secretary or the Deputy Secretary of the Board of Directors,
a Vice President or any officer or any other Person duly authorized by the Company or the Guarantor, that complies with the requirements
of Section 314(e) of the Trust Indenture Act and is delivered to the Trustee.

 

“Opinion
of Counsel” means a written opinion of legal advisors, who may be an employee of or legal advisors for the Company or
the Guarantor or other legal advisors who shall be reasonably acceptable to the Trustee and that, if required by the Trust Indenture
Act, complies therewith.

 

“Original
Issue Discount Security” means any Subordinated Debt Security which provides for an amount less than the principal amount
to be due and payable upon a declaration of the Maturity thereof.

 

“Outstanding”,
when used with respect to Subordinated Debt Securities or any series of Subordinated Debt Securities means (except as otherwise
specified pursuant to ‎Section 3.01), as of the date of determination,
all Subordinated Debt Securities or all Subordinated Debt Securities of such series, as the case may be, theretofore authenticated
and delivered under this Subordinated Debt Securities Indenture, except:

 

(i)             Subordinated
Debt Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;

 

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

 

(iii)           any
such Subordinated Debt Security with respect to which the Company has effected defeasance pursuant to the terms hereof, except
to the extent provided in ‎Section 4.02; and

 

(iv)           Subordinated
Debt Securities which have been paid pursuant to ‎Section
11.06 or in exchange for or in lieu of which other Subordinated Debt Securities have been authenticated and delivered pursuant
to this Subordinated Debt Securities Indenture, other than any such Subordinated Debt Securities in respect of which there shall
have been presented to the Trustee proof satisfactory to it that such Subordinated Debt Securities are held by a bona fide purchaser
in whose hands such Subordinated Debt Securities are valid obligations of the Company;

 

    7 

     

    

 

provided, however,
that in determining whether the Holders of the requisite principal amount of the Outstanding Subordinated Debt Securities of any
series have given any request, demand, authorization, direction, notice, consent or waiver hereunder, (i) the principal amount
of a Subordinated Debt Security denominated in a Foreign Currency shall be the Dollar equivalent, determined on the date of original
issuance of such Subordinated Debt Security, of the principal amount of such Subordinated Debt Security; and (ii) Subordinated
Debt Securities beneficially owned by the Company, the Guarantor or any other obligor upon the Subordinated Debt Securities or
any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding except that, in determining
whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Subordinated Debt Securities for which a Responsible Officer of the Trustee has received an Officer’s Certificate
stating that such Subordinated Debt Securities are so beneficially owned shall be so disregarded; provided, further, however,
that Subordinated Debt Securities so beneficially owned which have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Subordinated
Debt Securities and that the pledgee is not the Company, the Guarantor or any other obligor upon the Subordinated Debt Securities
or any Affiliate of the Company, the Guarantor or of such other obligor.

 

“Paying Agent”
means any Person (which may include the Company or the Guarantor) authorized by the Company to pay the principal of, or any
premium or interest on, or any Additional Amounts with respect to, any Subordinated Debt Securities on behalf of the Company.
Except as otherwise specified as contemplated by ‎‎Section
3.01 hereof, The Bank of New York Mellon, acting through its London Branch will act as Principal Paying Agent in respect of
the Subordinated Debt Securities of any series.

 

“Payment
Statement” means the statement to be delivered to the Company or Guarantor by the Trustee, substantially in the form
set forth in Exhibit I to Appendix I, pursuant to ‎Section
6.02.

 

“Person”
means any individual, company, corporation, firm, partnership, joint venture, association, organization, state or agency of a
state or other entity, whether or not having separate legal personality.

 

“Place of Payment”,
when used with respect to the Subordinated Debt Securities of any series, means the place or places where the principal of, or
any premium or interest on, or any Additional Amounts with respect to the Subordinated Debt Securities of that series are payable
as specified pursuant to ‎‎Section 3.01 or,
if not so specified, as specified in ‎‎Section 10.02.

 

“Predecessor
Security” of any particular Subordinated Debt Security means every previous Subordinated Debt Security evidencing all
or a portion of the same debt as that evidenced by such particular Subordinated Debt Security; and, for the purposes of this definition,
any Subordinated Debt Security authenticated and delivered under ‎Section
3.06 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Subordinated Debt

 

    8 

     

    

 

Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Subordinated Debt Security.

 

“Redemption
Date”, when used with respect to any Subordinated Debt Security to be redeemed, means the date fixed for such redemption
by or pursuant to this Subordinated Debt Securities Indenture.

 

“Redemption
Price”, when used with respect to any Subordinated Debt Security to be redeemed, means the price at which it is to be
redeemed pursuant to this Subordinated Debt Securities Indenture, which shall include the Early Redemption Amount (Tax), Early
Redemption Amount (Call) or Early Redemption Amount (Capital Disqualification Event), as applicable.

 

“Regular
Record Date” for the interest payable on any Interest Payment Date on Subordinated Debt Securities of any series means
the date specified for the purpose pursuant to ‎Section 3.01.

 

“regulated
entity” means any entity to which Law 11/2015 applies as provided under article 1.2 of Law 11/2015, as amended from
time to time, which includes, certain credit institutions, investment firms, and certain of their parent or holding companies.

 

“Regulator”
means the European Central Bank or such other or successor authority exercising primary bank supervisory authority, in each case
with respect to prudential matters in relation to the Guarantor and/or the Group;

 

“relevant
resolution authority”  means the Spanish Fund for the Orderly Restructuring of Banks, the European Single
Resolution Mechanism, as the case may be, according to Law 11/2015, and any other entity with the authority to exercise
the Spanish Bail-in Power from time to time.

 

“Responsible
Officer”, when used with respect to the Trustee, means any officer of the Trustee assigned to or working in the corporate
trust department (or any successor unit) of the Trustee located at the Corporate Trust Office of the Trustee, who shall have direct
responsibility for the administration of this Subordinated Debt Securities Indenture and, for the purposes of ‎Section
6.01(c)(ii), shall also include any other officer of the Trustee to whom any corporate trust matter is referred because of such
officer’s knowledge of and familiarity with the particular subject.

 

“Senior
Creditors” means creditors of the Company whose claims are non-subordinated obligations of the Company, any Senior Subordinated
Obligations (as defined below) and any claim on the Company, which becomes subordinated as a consequence of article 92.1o
of the Spanish Insolvency Law.

 

“Senior
Subordinated Obligations” means any subordinated obligations of the Company which by law and/or their terms, and to
the extent permitted by Spanish law (including contractually subordinated obligations of principal related to instruments not
qualifying as Tier 2 Capital or Tier 1 Capital of Banco Santander), rank senior to the Subordinated Debt Securities of
any series.

 

    9 

     

    

 

“Spanish
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 Kingdom of Spain,
relating to (i) the transposition of BRRD, including but not limited to Law 11/2015, and up to 31 December 2015 (inclusive),
Law 9/2012, of 14 November, on restructuring and resolution of credit institutions, (ii) the SRM Regulation and (iii) the
instruments, rules and standards created thereunder, pursuant to which 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).

 

“Spanish
Insolvency Law” means Law 22/2003 (Ley Concursal) of 9 July 2003 regulating insolvency proceedings in Spain, or an equivalent
legal provision which replaces it in the future.

 

“Special Record Date”,
when used for the payment of any Default Interest on Subordinated Debt Securities of any series, means the date specified by the
Company for the purpose pursuant to ‎‎Section 3.07.

 

“SRM
Regulation” means Regulation (EU) No. 806/2014 of the European Parliament and of the Council of 15 July 2014,
establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in
the framework of the Single Resolution Mechanism and the Single Resolution Fund and amending Regulation (EU) No. 1093/2010,
as amended or superseded from time to time.

 

“Stated Maturity”,
when used with respect to any Subordinated Debt Security or any installment of principal thereof or interest thereon, means the
date or dates, if any, specified in, or determined in accordance with the terms of, such Subordinated Debt Security, including
as the same may be modified pursuant to the Spanish Bail-in Power set forth in Article 13, as the fixed date or dates on which
the principal of such Subordinated Debt Security or such installment of principal or interest (and Additional Amounts, if any)
is due and payable.

 

“Subordinated
Debt Securities”, has the meaning set forth in the recitals of the Company herein and more particularly means any series
of Subordinated Debt Securities issued, authenticated and delivered under this Subordinated Debt Securities Indenture.

 

“Subordinated
Debt Securities Indenture” means this instrument as originally executed or as it may from time to time be supplemented
or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall include
the terms and forms of particular series of Subordinated Debt Securities established pursuant to ‎Section
3.01.

 

    10 

     

    

 

“Subordinated
Debt Security” means one of the Subordinated Debt Securities.

 

“Subordinated
Debt Security Register” and “Subordinated Debt Security Registrar” have the respective meanings specified
in ‎Section 3.05.

 

“Subsidiary”
means any entity over which the Company or the Guarantor may have, directly or indirectly, control in accordance with Applicable
Banking Regulations;

 

“Tier
1 Capital” means at any time, with respect to the Guarantor or the Group, as the case may be, the Tier 1 capital of
the Guarantor or the Group, respectively, as calculated by the Guarantor in accordance with Chapters 1, 2 and 3 (Tier 1 Capital,
Common Equity Tier 1 Capital and Additional Tier 1 capital) of Title I (Elements of own funds) of Part Two (Own Funds) of the
CRR and/or Applicable Banking Regulations at such time, including any applicable transitional, phasing in or similar provisions;

 

“Tier
2 Capital” means at any time, with respect to the Company or the Group, as the case may be, the Tier 2 capital of the
Company or the Group, respectively, as calculated by the Company in accordance with Chapter 4 (Tier 2 capital) of Title I (Elements
of own funds) of Part Two (Own Funds) of the CRR and/or Applicable Banking Regulations at such time, including any applicable
transitional, phasing in or similar provisions.

 

“Trustee”
means the Person named as the “Trustee” in the first paragraph of this instrument until a successor trustee
shall have become such pursuant to the applicable provisions of this Subordinated Debt Securities Indenture, and thereafter “Trustee”
shall mean the Person who is then the Trustee hereunder, or, if a different Trustee is appointed for a particular series of Subordinated
Debt Securities, the Trustee named in the relevant indenture supplemental hereto as the Trustee for that particular series of
Subordinated Debt Securities and if at any time there is more than one such Person, “Trustee” shall mean and
include each such Person; and “Trustee” as used with respect to the Subordinated Debt Securities of any series
shall mean the Trustee with respect to the Subordinated Debt Securities of such series.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended, as in effect at the date as of which this instrument
was executed, except as provided in ‎Section 9.05.

 

“United
States” and “U.S.” mean the United States of America and, except in the case of ‎Section
6.10 and ‎6.15, its territories and possessions.

 

“U.S.
Government Obligations” means securities that are non-callable and nonredeemable at the option of the issuer and that
are (i) direct obligations of the United States for which its full faith and credit are pledged and/or (ii) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the United States, the payment of which is unconditionally
guaranteed as a full faith and credit obligation of the United States, and shall also include a depository receipt issued by a
bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended), which

 

    11 

     

    

 

may
include the Trustee, as custodian with respect to any such U.S. Government Obligation or a specific payment of principal of or
interest on any such U.S. Government Obligation held by such custodian for the account of the holder of such depository receipt,
provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the
specific payment of principal of or interest on or other amount with respect to the U.S. Government Obligation evidenced by such
depository receipt.

 

Section 1.02.     
Compliance Certificates and Opinions. Unless otherwise expressly provided for in this Subordinated Debt Securities
Indenture, upon any application or request by the Company or the Guarantor to the Trustee to take any action under any provision
of this Subordinated Debt Securities Indenture, the Company or the Guarantor shall furnish to the Trustee an Officer’s Certificate
stating that all conditions precedent, if any, provided for in this Subordinated Debt Securities Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the opinion of the legal advisor rendering such opinion
all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as
to which the furnishing of such documents is specifically required by any provision of this Subordinated Debt Securities Indenture
relating to such particular application or request, no additional certificate or opinion need be furnished.

 

Every certificate
or opinion with respect to compliance with a condition or covenant provided for in this Subordinated Debt Securities Indenture
(other than ‎Section 10.06) shall include:

 

(a)            
a statement that each Person signing such certificate or opinion has read such covenant or condition and the definitions
herein relating thereto;

 

(b)            
a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;

 

(c)            
a statement that, in the opinion of each such Person, he has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(d)            
a statement as to whether, in the opinion of each such Person, such condition or covenant has been complied with.

 

Section 1.03.     
Form of Documents Delivered to Trustee. In any case where several matters are required to be certified by, or covered
by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of,
only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or
give an opinion as to such matters in one or several documents.

 

    12 

     

    

 

Any certificate
or opinion of an officer of the Company or the Guarantor may be based, insofar as it relates to legal matters, upon a certificate
or opinion of, or representations by, legal advisors, unless such officer knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion or
representations are based are erroneous. Any such certificate or opinion of, or representations by, legal advisors may be based,
insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the
Company or the Guarantor, as the case may be, stating that the information with respect to such factual matters is in the possession
of the Company or the Guarantor, as the case may be, unless such legal advisors know, or in the exercise of reasonable care should
know, that the certificate or opinion or representation with respect to such matters is erroneous.

 

Where any
Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or
other instruments under this Subordinated Debt Securities Indenture, they may, but need not, be consolidated and form one instrument.

 

Section 1.04.     
Acts of Holders. (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided
by this Subordinated Debt Securities Indenture to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except
as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to
the Trustee and, when it is hereby expressly required, to the Company or the Guarantor or to both of them. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act”
of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any
such agent shall be sufficient for any purpose of this Subordinated Debt Securities Indenture and (subject to ‎Section
6.01) conclusive in favor of the Trustee and the Company and the Guarantor, if made in the manner provided in this Section.

 

(b)            
The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a
witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of
deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. When such
execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the
Person executing the same, may also be proved in any other manner which the Trustee deems sufficient.

 

(c)            
The ownership of Subordinated Debt Securities shall be proved by the Subordinated Debt Security Register.

 

(d)            
Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Subordinated Debt
Security shall bind every future Holder

 

    13 

     

    

 

of
the same Subordinated Debt Security and the Holder of every Subordinated Debt Security issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee,
any Subordinated Debt Security Registrar, any Paying Agent, any Authenticating Agent, the Company or the Guarantor in reliance
thereon, whether or not notation of such action is made upon such Subordinated Debt Security or such other Subordinated Debt Security.

 

(e)            
If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or
other Act, the Company may, at its option, by or pursuant to a Board Resolution or an Officer’s Certificate, fix in advance
a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent,
waiver or other Act, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only the Holders
of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders
of the requisite proportion of Outstanding Subordinated Debt Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Subordinated Debt
Securities shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders
on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Subordinated
Debt Securities Indenture not later than six months after the record date.

 

Section 1.05.     
Notices, Etc. to Trustee, Company or Guarantor. Any request, demand, authorization, direction, notice, consent,
waiver or Act of Holders or other document provided or permitted by this Subordinated Debt Securities Indenture to be made upon,
given or furnished to, or filed with,

 

(a)            
the Trustee by any Holder or by the Company or the Guarantor shall be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if made, given, furnished or filed in writing (which may be via facsimile or email delivery of a copy
of such document) to the Trustee at its Corporate Trust Office, and the Trustee agrees to accept and act upon facsimile transmission
or email delivery of written instructions pursuant to this Subordinated Debt Securities Indenture, provided, however, that (x)
the party providing such written instructions, subsequent to such transmission of written instructions, shall provide the originally
executed instructions or directions to the Trustee in a timely manner, and (y) such originally executed instructions or directions
shall be signed by an authorized representative of the party providing such instructions or directions; or

 

(b)            
the Company or the Guarantor by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if in writing and mailed, first-class air mail postage prepaid, to the Company or the Guarantor, to
the address of its principal office specified in the first paragraph of this Subordinated Debt Securities Indenture or at any
other address previously furnished in writing to the Trustee by the Company or the Guarantor.

 

    14 

     

    

 

The Trustee
agrees to accept and act upon instructions or directions pursuant to this Subordinated Debt Securities Indenture sent by unsecured
e-mail, portable document format (PDF), facsimile transmission or other similar unsecured electronic methods, provided, however,
that the Trustee shall have received from the Company an incumbency certificate listing persons designated to give such instructions
or directions and containing the titles and specimen signatures of such designated persons, which such incumbency certificate
shall be amended and replaced whenever a person is to be added or deleted from the listing, and provided further that the Trustee
shall have no obligation or responsibility to confirm or verify that the instruction or direction was in fact sent by, or on behalf
of, a person so designated to give instructions or directions. If the Company elects to give the Trustee e-mail or facsimile instructions
(or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee's
understanding of such instructions shall be deemed controlling. The Trustee shall not be liable for any losses, costs or expenses
arising directly or indirectly from the Trustee's reliance upon and compliance with such instructions notwithstanding a conflict
or inconsistency between such instructions and a subsequent written instruction. The Company agrees to assume all risks arising
out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the
risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.

 

Section 1.06.     
Notice to Holders; Waiver. When this Subordinated Debt Securities Indenture provides for notice to Holders of any
event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if given in writing and mailed, first-class
postage prepaid, to each Holder of a Subordinated Debt Security affected by such event in the manner and to the extent provided
in Section 313(c) of the Trust Indenture Act with respect to reports pursuant to ‎Section 7.03(a).

 

For so long
as the Subordinated Debt Securities of any series are represented by Global Securities, the Company will deliver a copy of all
notices with respect to such series to the Holder (if the address of such Holder is known to the Company).

 

When notice
to Holders of Subordinated Debt Securities is given by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Where this Subordinated
Debt Securities Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders
shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance
upon such waiver. In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable
to give such notice by mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

 

    15 

     

    

 

Section 1.07.     
Language of Notices, Etc. Any notice under this Subordinated Debt Securities Indenture shall be in the English language,
except that, if the Company so elects, any published notice may be in an official language of the country of publication.

 

Section 1.08.     
Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision
hereof which is required to be included in this Subordinated Debt Securities Indenture by any of the provisions of the Trust Indenture
Act, such required provision of the Trust Indenture Act shall control. If at any future time any provision required to be included
herein by the Trust Indenture Act as in force at the date as of which this Subordinated Debt Securities Indenture was executed
or any limitation imposed by the Trust Indenture Act at such date on any provision otherwise included herein would not be so required
or imposed (in whole or in part) if this Subordinated Debt Securities Indenture were executed at such future time, the Company,
the Guarantor and the Trustee may enter into one or more indentures supplemental hereto pursuant to ‎Section 9.01 to
change or eliminate (in whole or in part) such provision or limitation of this Subordinated Debt Securities Indenture in conformity
with the requirements of the Trust Indenture Act as then in force, except that (subject to ‎Article 9) no provision
or limitation required to be included herein by Sections 310(a)(1) and (a)(2), 315(a), (c), (d)(l), (d)(2), (d)(3) and (e), 316(a)(1)(A),
(a)(l)(B), (a)(2), (a) (last sentence) and (b) of the Trust Indenture Act as in force at the date as of which this Subordinated
Debt Securities Indenture was executed may be so changed or eliminated.

 

Section 1.09.     
Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.

 

Section 1.10.     
Successors and Assigns. All covenants and agreements in this Subordinated Debt Securities Indenture by the Company
or the Guarantor shall bind their respective successors and assigns, whether so expressed or not.

 

Section 1.11.     
Separability Clause. In case any provision in this Subordinated Debt Securities Indenture or in the Subordinated
Debt Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby.

 

Section
1.12.      Benefits of
Subordinated Debt Securities Indenture. Nothing in this Subordinated Debt Securities Indenture, in the Subordinated Debt
Securities or the Guarantees, express or implied, shall give to any Person, other than the parties hereto and any
Subordinated Debt Securities Registrars or any Paying Agent or Calculation Agent with respect to any Subordinated Debt
Securities and their successors hereunder, and the Holders of Subordinated Debt Securities, any benefit or any legal or
equitable right, remedy or claim under this Subordinated Debt Securities Indenture.

 

Section 1.13.     
Governing Law. This Subordinated Debt Securities Indenture, the Subordinated Debt Securities and the Guarantees
shall be governed by and construed in accordance with the laws of the State of New York (without giving effect to the choice of
law provisions), 

 

    16 

     

    

 

except
for ‎Section 12.01 and Section ‎13.02, which shall be governed by and construed in accordance with the
laws of Spain, and except that the authorization and execution of this Subordinated Debt Securities Indenture, the
Subordinated Debt Securities and the Guarantees shall be governed by (in addition to the laws of the State of New York
relevant to execution) the respective jurisdictions of organization of the Company, the Guarantor and the Trustee, as the
case may be.

 

Section 1.14.     
Business Days and Legal Holidays. The terms of the Subordinated Debt Securities shall provide that, in any case
where any Interest Payment Date, Redemption Date, Maturity or Stated Maturity, of a Subordinated Debt Security shall not be a
Business Day at any Place of Payment, then (notwithstanding any other provision of this Subordinated Debt Securities Indenture
or the Subordinated Debt Securities other than a provision in the Subordinated Debt Securities that specifically states that such
provision shall apply in lieu of this Section) payments of interest, if any (and premium, if any) or principal and the exchange
of the Subordinated Debt Security need not be made at such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment (or such other Business Day as shall be provided in such Subordinated Debt Security) with
the same force and effect as if made on such Interest Payment Date, Redemption Date, Maturity or Stated Maturity, provided that
no interest shall accrue on such payment for the period from and after such Interest Payment Date, Redemption Date, Maturity or
Stated Maturity, as the case may be.

 

Section 1.15.     
Appointment of Agent for Service. Each of the Company and the Guarantor has designated and appointed Banco Santander,
S.A., New York Branch, 45 E. 53rd Street, New York, New York 10022, as its authorized agent (the “Authorized
Agent”), upon which process may be served in any suit or proceeding in any Federal or State court
in the Borough of Manhattan, The City of New York arising out of or relating to the Subordinated Debt Securities or this Subordinated
Debt Securities Indenture, but for that purpose only, and agrees that service of process upon said Authorized Agent shall be deemed
in every respect effective service of process upon it in any such suit or proceeding in any Federal or State court in the Borough
of Manhattan, The City of New York, New York. Such appointment shall be irrevocable so long as any of the Subordinated Debt Securities
remain Outstanding until the appointment of a successor by the Company or the Guarantor and such successor’s acceptance
of such appointment. Upon such acceptance, the Company or the Guarantor shall notify the Trustee of the name and address of such
successor. Each of the Company and the Guarantor further agrees to take any and all action, including the execution and filing
of any and all such documents and instruments, as may be necessary to continue such designation and appointment of said Authorized
Agent in full force and effect so long as any of the Subordinated Debt Securities shall be Outstanding. The Trustee shall not
be obligated and shall have no responsibility with respect to any failure by the Company or the Guarantor to take any such action.
Each of the Company and the Guarantor hereby irrevocably submits (for the purposes of any such suit or proceeding) to the non-exclusive
jurisdiction of any such court in which any such suit or proceeding is so instituted, and waives, to the extent it may effectively
do so, any objection it may have now or hereafter to the laying of the venue of any such suit or proceeding. To the extent that
the Company may be entitled, in any jurisdiction in which judicial proceedings may

 

    17 

     

    

 

at
any time be commenced with respect to or arising out of this Subordinated Debt Securities Indenture to claim for itself or its
revenues, assets or properties immunity (whether by reason of sovereign immunity or otherwise) from suit, from the jurisdiction
of any court (including, but not limited to, any court of the United States of America or the State of New York) or from any legal
process with respect to itself or its property, from attachment prior to judgment, from set-off, from execution of a judgment,
from the grant of injunctive relief, whether prior to or after judgment, or from any other legal process (including, without limitation,
in relation to enforcement of any arbitration award), and to the extent that in any such jurisdiction there may be attributed
such an immunity (whether or not claimed), the Company hereby irrevocably agrees not to claim and hereby irrevocably waives such
immunity and consents to the grant of any such relief.

 

Section 1.16.     
Calculation Agent. If the Company appoints a Calculation Agent pursuant to ‎Section 3.01 with respect
to any series of Subordinated Debt Securities, any determination of the interest rate on, or other amounts in relation to, such
series of Subordinated Debt Securities in accordance with the terms of such series of Subordinated Debt Securities by such Calculation
Agent shall (in the absence of manifest error, bad faith or willful misconduct) be binding on the Company, the Guarantor, the
Trustee and all Holders and (in the absence of manifest error, bad faith or willful misconduct) no liability to the Holders shall
attach to the Calculation Agent in connection with the exercise or non-exercise by it of its powers, duties and discretions.

 

Section 1.17.     
Waiver of Jury Trial. EACH OF THE PARTIES HERETO, AND EACH HOLDER OF A SUBORDINATED DEBT SECURITY BY ITS ACCEPTANCE
THEREOF, HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUBORDINATED DEBT SECURITIES INDENTURE, THE SUBORDINATED DEBT SECURITIES OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 1.18.     
Judgment Currency. Any payment on account of an amount that is payable in U.S. dollars (the “Required Currency”)
which is made to or for the account of any Holder or the Trustee in lawful currency of any other jurisdiction (the “Judgment
Currency”), whether as a result of any judgment or order or the enforcement thereof or the liquidation of the Company
shall constitute a discharge of the Company obligation under this Subordinated Debt Securities Indenture and the Subordinated
Debt Securities only to the extent of the amount of the Required Currency with such Holder or the Trustee, as the case may be,
could purchase in the London foreign exchange markets with the amount of the Judgment Currency in accordance with normal banking
procedures at the rate of exchange prevailing on the first Business Day following receipt of the payment in the Judgment Currency.
If the amount of the Required Currency that could be so purchased is less than the amount of the Required Currency originally
due to such Holder or the Trustee, as the case may be, the Company shall indemnify and hold harmless the Holder or the Trustee,
as the case may be, from and against all loss or damage arising out of, or as a result of, such deficiency. This indemnity shall
constitute an obligation separate and independent from the other obligations contained in this

 

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Subordinated
Debt Securities Indenture or the Subordinated Debt Securities, shall give rise to a separate and independent cause of action,
shall apply irrespective of any indulgence granted by any Holder or the Trustee from time to time and shall continue in full force
and effect notwithstanding any judgment or order for a liquidated sum in respect of an amount due hereunder or under any judgment
or order.

 

Article
2

Subordinated Debt Security Forms

 

Section 2.01.     
Forms Generally. The Subordinated Debt Securities of each series shall be issuable in registered form and in such
forms as shall be established by or pursuant to a Board Resolution of the Company, an Officer’s Certificate, or in one or
more indentures supplemental hereto, pursuant to ‎Section 3.01, in each case with such insertions, omissions, substitutions
and other variations as are required or permitted by this Subordinated Debt Securities Indenture, and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon as may be required to comply with any applicable
law or rule or regulation made pursuant thereto or with the rules of any securities exchange or Depositary therefor, or as may,
consistently herewith, be determined by the officers executing such Subordinated Debt Securities, all as evidenced by any such
execution.

 

The Trustee’s
certificates of authentication shall be in substantially the form set forth in Section 2.03 or Section 6.15.

 

The Guarantee
by the Guarantor to be endorsed on the Subordinated Debt Securities of each series shall be substantially in the form set forth
in this Article, or as shall be established by or pursuant to a Board Resolution or Officer’s Certificate of the Guarantor,
or in one of more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Subordinated Debt Securities Indenture, and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be determined
by the officer or officers executing such Guarantees, as evidenced by the officer’s or officers’ execution (whether
by facsimile or otherwise) of the Guarantees.

 

The definitive
Subordinated Debt Securities and Guarantees shall be printed, lithographed or engraved or produced by any combination of these
methods or may be produced in any other manner permitted by the rules of any securities exchange on which the Subordinated Debt
Securities may be listed, all as determined by the officers executing such Subordinated Debt Securities and Guarantees, as evidenced
by their execution thereof.

 

Section 2.02.     
Form of Guarantee. The Guarantee shall be in substantially the following form:

 

GUARANTEE
OF BANCO SANTANDER, S.A.

 

    19 

     

    

 

This Guarantee
is made on ____,____ by BANCO SANTANDER, S.A. (herein called the “Guarantor,” which term includes any successor
person under the Indenture (as defined on the reverse hereof)) in favor of the Holder of the Subordinated Debt Security upon which
this Guarantee is endorsed (“this Security”). This Guarantee is issued subject to the provisions of the Indenture
dated [*], 2015 among Santander Issuances, S.A. Unipersonal, the Guarantor and The Bank of New York Mellon, as Trustee, as supplemented
from time to time (the “Indenture”), and each Holder of this Security, by accepting the same, agrees to and
shall be bound by such provisions.

 

(a) Guarantee

 

The Guarantor
hereby fully, unconditionally and irrevocably guarantees (the “Guarantee”) to each Holder of this Security
and to the Trustee on behalf of each such Holder the due and punctual payment of the principal of, any premium and interest on,
and any Additional Amounts with respect to the Security and the due and punctual payment of the sinking fund payments (if any)
provided for pursuant to the terms of this Security and any and all amounts of whatever nature which may become payable under
any of the foregoing or under the Indenture (including but not limited to, the fees, expenses and indemnities of the Trustee),
including as may be modified pursuant to the exercise of the Bail-in Power under ‎Article
14 of the Indenture, and as and when the same shall become due and payable, whether at maturity, by acceleration, redemption,
repayment or otherwise, in accordance with the terms of this Security and of the Indenture, the Guarantor will pay to such Holder,
or to the Trustee for the account of such Holder, on demand the amount payable by the Company to such Holder. In case of the failure
of the Company punctually to pay any such principal, premium, interest, Additional Amounts or sinking fund payment and any and
all amounts under the Indenture, (including but not limited to, the fees, expenses and indemnities of the Trustee) the Guarantor
hereby agrees to pay, or cause any such payment to be made, punctually when and as the same shall become due and payable, whether
at maturity, upon acceleration, redemption, repayment or otherwise, and as if such payment were made by the Company in accordance
with the terms of such Subordinated Note and of the Indenture.

 

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

 

IN WITNESS
WHEREOF, the Guarantor has caused this Guarantee to be duly executed.

 

Dated:

 

	BANCO SANTANDER, S.A.
	 
	 
	By:	 	 
	 	Name:	
	 	Title:	Authorized Signatory
	 	 	 

	 

 

 

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	 	Name:	
	 	Title:	Authorized Signatory

 

 

Section 2.03.     
Form of Trustee’s Certificate of Authentication. The Trustee’s certificate of authentication shall be
in substantially the following form:

 

CERTIFICATE
OF AUTHENTICATION

 

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

 

	Date:	 

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

 

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Article
3

The Subordinated Debt Securities

 

Section 3.01.     
Amount Unlimited, Issuable in Series. The aggregate principal amount of Subordinated Debt Securities which may be
authenticated and delivered under this Subordinated Debt Securities Indenture is unlimited. The Subordinated Debt Securities may
be issued in one or more series.

 

There shall be established by or pursuant to a Board Resolution
of the Company, or established by an Officer’s Certificate, or established in one or more indentures supplemental hereto,
prior to the initial issuance of Subordinated Debt Securities of any series,

 

(a)            
the title of the Subordinated Debt Securities of the series (which shall distinguish the Subordinated Debt Securities of
the series from all other Subordinated Debt Securities);

 

(b)            
the price or prices (expressed as a percentage of the principal amount thereof) at which the Subordinated Debt Securities
of the series shall be issued;

 

(c)            
any limit upon the aggregate principal amount of the Subordinated Debt Securities of the series which may be authenticated
and delivered under this Subordinated Debt Securities Indenture (except for Subordinated Debt Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Subordinated Debt Securities of the series pursuant
to ‎Section 3.04, ‎3.05, ‎3.06, ‎9.06 or 11.07 and except for any Subordinated Debt
Securities which, pursuant to ‎Section 3.03 are deemed never to have been authenticated and delivered hereunder);

 

(d)           
the date or dates, if any, on which the principal of (and premium, if any, on) the Subordinated Debt Securities of the
series is payable;

 

(e)            
the rate or rates, if any, at which the Subordinated Debt Securities of the series shall accrue interest or the manner
of calculation of such rate or rates, if any, the date or dates from which such interest shall accrue, the Interest Payment Dates
on which such interest shall be payable or the manner of determination of such Interest Payment Dates, if other than as specified
in Section 3.07 and the Regular Record Date for the interest payable on any Interest Payment Date and any dates required to be
established pursuant to ‎Section 7.01;

 

(f)            
whether any premium, upon redemption or otherwise, shall be payable by the Company on Subordinated Debt Securities of the
series, and whether such premium shall be redeemable at the option of the Company or the Holder;

 

(g)           
the place or places where the principal of (and premium, if any) and any interest on Subordinated Debt Securities of the
series shall be payable, and the Paying Agent or Paying Agents who shall be authorized to pay principal of (and premium, if

 

    22 

     

    

 

any)
and interest on Subordinated Debt Securities of such series, at least one of such Paying Agents having offices or agencies in
the Borough of Manhattan, The City of New York;

 

(h)           
other than with respect to any redemption of the Subordinated Debt Securities pursuant to ‎Section 11.08, whether
or not such series of Subordinated Debt Securities are to be redeemable, in whole or in part, at the Company’s option and,
if so redeemable, the period or periods within which, the price or prices at which and the terms and conditions upon which, Subordinated
Debt Securities of the series may be redeemed, including the date referred to in ‎Section 11.08;

 

(i)            
the obligation, if any, of the Company to redeem or purchase Subordinated Debt Securities of the series pursuant to any
sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or
prices at which, and the terms and conditions upon which Subordinated Debt Securities of the series shall be redeemed or purchased,
in whole or in part, pursuant to such obligation;

 

(j)        
     if other than denominations of $1,000 and any multiple thereof, the denominations in which
Subordinated Debt Securities of the series in each applicable form shall be issuable;

 

(k)            
if other than the full principal amount thereof, the portion, or the manner of calculation of such portion, of the principal
amount of Subordinated Debt Securities of the series which shall be payable upon a declaration of acceleration or acceleration
of the Maturity thereof pursuant to ‎Section 5.02, upon redemption of Subordinated Debt Securities of any series which
are redeemable before their Stated Maturity, or which the Trustee shall be entitled to file and prove a claim pursuant to ‎Section
5.04;

 

(l)        
     if Additional Amounts, pursuant to ‎Section 10.04, will not be payable;

 

(m)           
if other than Dollars, provisions, if any, for the Subordinated Debt Securities of the series to be denominated, and payments
thereon to be made, in Foreign Currencies and specifying the Place of Payment and the manner of payment thereon and any other
terms with respect thereto;

 

(n)            
if other than the coin or currency in which the Subordinated Debt Securities of that series are denominated, the coin or
currency in which payment of the principal of (and premium, if any) or interest, if any, on the Subordinated Debt Securities of
such series shall be payable;

 

(o)            
if the principal of (and premium, if any) or interest, if any, on the Subordinated Debt Securities of such series are to
be payable, at the election of the Company or a Holder thereof, in a coin or currency other than that in which the Subordinated
Debt Securities are denominated, the period or periods within which, and the terms and conditions upon which, such election may
be made;

 

    23 

     

    

 

(p)            
whether the Subordinated Debt Securities of the series shall be issued in whole or in part in the form of one or more Global
Securities and the initial Holder with respect to such Global Security or Subordinated Debt Securities;

 

(q)            
if the Subordinated Debt Securities of such series are to be issuable in definitive form (whether upon original issue or
upon exchange of a temporary Subordinated Debt Security of such series or otherwise) only upon receipt of certain certificates
or other documents or satisfaction of other conditions, then the form and terms of such certificates, documents or conditions;

 

(r)            
if the amounts of payments of principal of (and premium, if any) or interest, if any, on the Subordinated Debt Securities
of the series may be determined with reference to an index or are otherwise not fixed on the original issue date thereof, the
manner in which such amounts shall be determined and the Calculation Agent, if any, who shall be appointed and authorized to calculate
such amounts;

 

(s)            
any other Events of Default or covenants with respect to the Subordinated Debt Securities of such series;

 

(t)            
if other than as provided in ‎Article 12, the subordination terms with respect to the Subordinated Debt Securities
of the series;

 

(u)            
the forms of Subordinated Debt Securities of the series;

 

(v)            
any other terms of the series (which terms shall not be inconsistent with the provisions of this Subordinated Debt Securities
Indenture, except as permitted by ‎Section 9.01(d)); and

 

(w)           
the Trustee for such series of Subordinated Debt Securities who shall also be named in an indenture supplemental hereto
for a particular series of Subordinated Debt Securities if the Trustee for such series is not the Trustee named in the first paragraph
of this Subordinated Debt Securities Indenture.

 

All Subordinated
Debt Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided
in or pursuant to such action or in any such Officer’s Certificate or indenture supplemental hereto.

 

If the forms
of Subordinated Debt Securities of any series, or any of the terms thereof, are established by action taken pursuant to a Board
Resolution, a copy of the Board Resolution in respect thereof shall be delivered to the Trustee at or prior to the delivery of
the Company Order pursuant to ‎Section 3.03 for the authentication
and delivery of such Subordinated Debt Securities.

 

Section 3.02.     
Denominations. The Subordinated Debt Securities of each series shall be issuable in such denominations as shall
be specified as contemplated by ‎Section 3.01. In the absence of any such specification with respect to Subordinated
Debt Securities of any series, the Subordinated Debt Securities of each series shall be issuable

 

    24 

     

    

 

in
denominations of $1,000 each and any integral multiple thereof. Unless otherwise specified in accordance with ‎Section
3.01, any Global Security issued and delivered to the Holder shall be issued in the form of units with each $1,000 principal amount
of such Global Security constituting one unit.

 

Section 3.03.     
Execution, Authentication, Delivery and Dating. The Subordinated Debt Securities shall be executed on behalf of
the Company by any one of the representatives of the Company authorized to do so by Board Resolution or by any member of the Board
of Directors. The signature of any of these authorized representatives on the Subordinated Debt Securities may be manual or facsimile.
Subordinated Debt Securities bearing the manual or facsimile signatures of individuals who were at any time the proper officer
of the Company shall bind the Company, notwithstanding that such individual has ceased to hold such office prior to the authentication
and delivery of such Subordinated Debt Securities.

 

At any time
and from time to time after the execution and delivery of this Subordinated Debt Securities Indenture, the Company may deliver
Subordinated Debt Securities of any series executed by the Company having endorsed thereon the Guarantee by the Guarantor to the
Trustee for authentication, together with a Company Order for the authentication and delivery of such Subordinated Debt Securities,
and the Trustee in accordance with the Company Order shall authenticate and deliver such Subordinated Debt Securities. In authenticating
such Subordinated Debt Securities and accepting the additional responsibilities under this Subordinated Debt Securities Indenture
in relation to such Subordinated Debt Securities the Trustee shall be entitled to receive, and (subject to ‎Section
6.01) shall be fully protected in relying upon an Opinion of Counsel stating that the form and terms thereof have been established
in conformity with the provisions of this Subordinated Debt Securities Indenture.

 

If all the
Subordinated Debt Securities of any series are not to be issued at one time, it shall not be necessary to deliver an Opinion of
Counsel and an Officer’s Certificate at the time of issuance of each Subordinated Debt Security, but such opinion and certificate,
with appropriate modifications, shall be delivered at or before the time of issuance of the first Subordinated Debt Security of
such series. After any such first delivery, any separate request by the Company that the Trustee authenticate Subordinated Debt
Securities of such series for original issue will be deemed to be a certification by the Company that all conditions precedent
provided for in the Subordinated Debt Securities Indenture relating to authentication and delivery of such Subordinated Debt Securities
continue to have been complied with.

 

The Trustee
shall not be required to authenticate such Subordinated Debt Securities if the issue of such Subordinated Debt Securities pursuant
to this Subordinated Debt Securities Indenture will affect the Trustee’s own rights, duties or immunities under the Subordinated
Debt Securities and this Subordinated Debt Securities Indenture or otherwise in a manner which is not reasonably acceptable to
the Trustee.

 

Each Subordinated
Debt Security shall be dated the date of its authentication.

 

    25 

     

    

 

No Subordinated
Debt Security appertaining thereto shall be entitled to any benefit under this Subordinated Debt Securities Indenture or be valid
or obligatory for any purpose unless there appears on such Subordinated Debt Security a certificate of authentication substantially
in the form provided for herein executed by or on behalf of the Trustee by manual signature, and such certificate upon any Subordinated
Debt Security shall be conclusive evidence, and the only evidence, that such Subordinated Debt Security has been duly authenticated
and delivered hereunder and that such Subordinated Debt Security is entitled to the benefits of this Subordinated Debt Securities
Indenture. Notwithstanding the foregoing, if any Subordinated Debt Security shall have been authenticated and delivered hereunder
but never issued and sold by the Company, and the Company shall deliver such Subordinated Debt Security to the Trustee for cancellation
as provided in ‎Section 3.09, for all purposes of this Subordinated
Debt Securities Indenture, such Subordinated Debt Security shall be deemed never to have been authenticated and delivered hereunder
and shall never be entitled to the benefit of this Subordinated Debt Securities Indenture.

 

Section 3.04.     
Temporary Subordinated Debt Securities. Pending the preparation of definitive Subordinated Debt Securities of any
series, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Subordinated Debt
Securities, having endorsed thereon the Guarantee by the Guarantor, substantially of the tenor of the definitive Subordinated
Debt Securities in lieu of which they are issued, and, if applicable, having endorsed thereon Guarantees duly executed by the
Guarantor substantially of the tenor of the definitive Guarantees, which Subordinated Debt Securities may be printed, lithographed,
typewritten, photocopied or otherwise produced. Temporary Subordinated Debt Securities shall be issuable as Subordinated Debt
Securities in registered form in any authorized denomination, and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Subordinated Debt Securities may determine, all as evidenced by such execution.

 

If temporary
Subordinated Debt Securities of any series are issued, the Company will cause, if so required by the terms of such temporary Subordinated
Debt Securities, definitive Subordinated Debt Securities of such series to be prepared without unreasonable delay. After the preparation
of definitive Subordinated Debt Securities of such series, the temporary Subordinated Debt Securities of such series shall be
exchangeable for definitive Subordinated Debt Securities of such series containing identical terms and provisions upon surrender
of the temporary Subordinated Debt Securities of such series at the office or agency of the Company in a Place of Payment for
that series, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Subordinated Debt Securities
of any series the Company shall execute, the Guarantor shall endorse the Guarantee on, and the Trustee shall authenticate and
deliver in exchange therefor, a like aggregate principal amount of definitive Subordinated Debt Securities of the same series
of authorized denominations containing identical terms and provisions. Until so exchanged, unless otherwise provided therein or
in a supplemental indenture relating thereto, the temporary Subordinated Debt Securities of any series shall in all respects be
entitled to the same benefits (but shall be subject to all the limitations of rights) under this Subordinated Debt Securities
Indenture as definitive Subordinated Debt Securities of such series.

 

    26 

     

    

 

Section 3.05.     
Registration, Registration of Transfer and Exchange. (a) Global Securities. This ‎Section 3.05(a)
shall apply to Global Securities unless otherwise specified, as contemplated by ‎Section 3.01.

 

Except as
otherwise specified as contemplated by ‎Section 3.01 hereof,
the Subordinated Debt Securities shall be initially issued and represented by one or more Global Securities in registered form
which shall be authenticated as contemplated by this Subordinated Debt Securities Indenture.

 

Each Global
Security authenticated under this Subordinated Debt Securities Indenture shall be registered in the name of the Depositary designated
for such Global Security or a nominee thereof and delivered to such Depositary or a nominee thereof or custodian therefor, and
each such Global Security shall constitute a single Subordinated Debt Security for all purposes of this Subordinated Debt Securities
Indenture. Except as otherwise specified as contemplated by ‎Section
3.01 hereof, each Global Security authenticated under this Subordinated Debt Securities Indenture shall be initially registered
in the name of DTC or its nominee only.

 

Unless the
Global Security is presented by an authorized representative of the Holder to the Company or its agent for registration of transfer,
exchange or payment, and any certificate issued is registered in the name of a nominee of the Holder and any payment is made to
such nominee, any transfer, pledge or other use of the Global Security for value or otherwise shall be wrongful since the registered
owner of such Global Security, the nominee of the Holder, has an interest in such Global Security.

 

Except as
otherwise specified as contemplated by ‎Section 3.01 hereof,
any Global Security shall be exchangeable for definitive Subordinated Debt Securities only as provided in this paragraph. A Global
Security shall be exchangeable pursuant to this Section only (i) if the relevant Depositary notifies the Trustee that it is unwilling
or unable to continue to act as Depositary and a successor depositary is not appointed by the Trustee within 120 days of such
notification, (ii) if, in the event of a winding-up of the Company, the Company fails to make a payment on the Subordinated Debt
Securities when due, or (iii) at any time if the Company at its option and in its sole discretion determines that the Global Securities
of a particular series should be exchanged for definitive Subordinated Debt Securities of that series. Any Global Security that
is exchangeable pursuant to the preceding sentence shall be exchangeable for, unless otherwise specified or contemplated by ‎Section
3.01, definitive Subordinated Debt Securities bearing interest (if any) at the same rate or pursuant to the same formula, having
the same date of issuance, the same date or dates from which such interest shall accrue, the same Interest Payment Dates on which
such interest shall be payable or the manner of determination of such Interest Payment Dates, redemption provisions, if any, specified
currency and other terms and of differing denominations aggregating a like amount as the Global Security so exchangeable. Definitive
Subordinated Debt Securities shall be registered in the names of the owners of the beneficial interests in such Global Securities
as such names are from time to time provided by the Holder to the Trustee.

 

    27 

     

    

 

Any Global
Security that is exchangeable pursuant to the preceding paragraph, unless otherwise specified as contemplated by ‎Section
3.01, shall be exchangeable for Subordinated Debt Securities issuable in authorized denominations of a like aggregate principal
amount and tenor.

 

No Global
Security may be transferred except as a whole by the Holder to a nominee of the Holder or by the Holder or any such nominee to
a successor of the Holder or a nominee of such successor. Except as provided above, owners solely of beneficial interests in a
Global Security shall not be entitled to receive physical delivery of Subordinated Debt Securities in definitive form and will
not be considered the holders thereof for any purpose under this Subordinated Debt Securities Indenture.

 

In the event
that a Global Security is surrendered for redemption in part pursuant to ‎Section
11.07, the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Global Security, without
service charge, a new Global Security in a denomination equal to and in exchange for the unredeemed or unexchanged portion of
the principal of the Global Security so surrendered.

 

The Agent
Members and any other beneficial owners shall have no rights under this Subordinated Debt Securities Indenture with respect to
any Global Security held on their behalf by a Holder, and such Holder may be treated by the Company, the Guarantor, the Trustee,
and any agent of the Company, the Guarantor or the Trustee as the owner of such Global Security for all purposes whatsoever. Notwithstanding
the foregoing, nothing herein shall (i) prevent the Company, the Guarantor, the Trustee, or any agent of the Company, the Guarantor
or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by a Holder or (ii) impair,
as between any such Holder or other clearance service and its Agent Members and Holders, the operation of customary practices
governing the exercise of the rights of a holder of any security, including without limitation the granting of proxies or other
authorization of participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other
action which a Holder is entitled to give or take under this Subordinated Debt Securities Indenture.

 

In connection
with any exchange of interests in a Global Security for definitive Subordinated Debt Securities of another authorized form, as
provided in this Section 3.05, then without unnecessary delay but in any event not later than the earliest date on which
such interests may be so exchanged, the Company shall deliver to the Trustee definitive Subordinated Debt Securities in aggregate
principal amount equal to the principal amount of such Global Security or the portion to be exchanged executed by the Company.
On or after the earliest date on which such interests may be so exchanged, such Global Security shall be surrendered by the Holder
to the Trustee, as the Company’s agent for such purpose, to be exchanged, in whole or from time to time in part, for definitive
Subordinated Debt Securities without charge (in which case the Company or Trustee may require payment of any taxes or governmental
charges arising) and the Trustee shall authenticate and deliver, in exchange for each portion of such Global Security, an equal
aggregate principal amount of definitive Subordinated Debt Securities of authorized denominations as the portion of such Global
Security to be exchanged. Any

 

    28 

     

    

 

Global
Security that is exchangeable pursuant to this ‎Section 3.05
shall be exchangeable for Subordinated Debt Securities issuable in the denominations specified as contemplated by ‎Section
3.01 and registered in such names as the Holder of such Global Security shall direct. If a definitive Subordinated Debt Security
is issued in exchange for any portion of a Global Security after the close of business at the office or agency where such exchange
occurs on any record date and before the opening of business at such office or agency on the relevant Interest Payment Date, interest
will not be payable on such Interest Payment Date in respect of such definitive Subordinated Debt Security, but will be payable
on such Interest Payment Date only to the Person to whom payments of interest in respect of such portion of such Global Security
are payable.

 

A Depositary
may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent
Members, to take any action which a holder is entitled to take under this Subordinated Debt Securities Indenture with respect
to the Subordinated Debt Securities.

 

(b)            
Except as otherwise specified pursuant to ‎Section 3.01, Subordinated Debt Securities of any series may only
be exchanged for a like aggregate principal amount of Subordinated Debt Securities of such series of other authorized denominations
containing identical terms and provisions. Subordinated Debt Securities to be exchanged shall be surrendered at an office or agency
of the Company designated pursuant to ‎Section 10.02 for such purpose, and the Company shall execute, and the Guarantor
shall endorse the Guarantee thereon, and the Trustee shall authenticate and deliver, in exchange therefor the Subordinated Debt
Security or Subordinated Debt Securities of the same series which the Holder making the exchange shall be entitled to receive.

 

Except as
otherwise specified pursuant to ‎Section 3.01, the Company
shall cause to be kept in the principal corporate trust office of the Trustee a register (the register maintained in such office
and in any other office or agency of the Company in a Place of Payment being herein sometimes collectively referred to as the
“Subordinated Debt Security Register”) in which, subject to such reasonable regulations as it may prescribe,
the Company shall provide for the registration of Subordinated Debt Securities and of transfers of such Subordinated Debt Securities.
Except as otherwise specified pursuant to Section 3.01, the Trustee is hereby appointed “Subordinated Debt Security Registrar”
for the purpose of registering Subordinated Debt Securities and transfers of Subordinated Debt Securities as herein provided.

 

Subordinated
Debt Securities shall be transferable only on the Subordinated Debt Security Register. Upon surrender for registration of transfer
of any Subordinated Debt Security of any series, together with the form of transfer endorsed on it, duly completed and executed
at an office or agency of the Company designated pursuant to ‎Section
10.02 for such purpose, the Company shall execute, and the Guarantor shall endorse the Guarantee thereon, and the Trustee shall
authenticate and deliver to the address specified in the form of transfer, within three Business Days, in the name of the designated
transferee or transferees, one or more new Subordinated Debt Securities of the same series of any authorized denominations containing
identical terms and provisions, of a like aggregate principal amount. If only part of a Subordinated Debt Security is

 

    29 

     

    

 

transferred,
a new Subordinated Debt Security of an aggregate principal amount equal to the amount not being transferred shall be executed
by the Company (and the Guarantee shall be endorsed thereon by the Guarantor), and authenticated and delivered by the Trustee
to the transferor, in the name of the transferor, within three Business Days after the Trustee acting as Paying Agent pursuant
to ‎Section 10.02 receives the Subordinated Debt Security.
The new Subordinated Debt Security will be delivered to the transferor by uninsured post at the risk of the transferor to the
address of the transferor appearing in the Subordinated Debt Security Register. A new Subordinated Debt Security of an aggregate
principal amount equal to the amount being transferred shall be delivered by the Trustee to the transferee, in the name of the
transferee, within three Business Days after the Trustee acting as Paying Agent pursuant to Section 10.02 receives the Subordinated
Debt Security. The new Subordinated Debt Security will be delivered to the transferee by uninsured post at the risk of the transferee
to the address of the transferee specified in the form of transfer.

 

All Subordinated
Debt Securities with a Guarantee endorsed thereon issued upon any registration of transfer or exchange of Subordinated Debt Securities
shall be the valid obligations of the Company, and the Guarantor, respectively evidencing the same debt, and entitled to the same
benefits under this Subordinated Debt Securities Indenture, as the Subordinated Debt Securities surrendered upon such registration
of transfer or exchange.

 

Every Subordinated
Debt Security presented or surrendered for registration of transfer or for exchange shall (if so required by the Company or the
Trustee) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Subordinated
Debt Security Registrar duly executed, by the Holder thereof or his attorney duly authorized in writing.

 

No
service charge shall be made for any registration of transfer or exchange of Subordinated Debt Securities, but the Company
may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with
any registration of transfer or exchange of Subordinated Debt Securities, other than exchanges pursuant to ‎Section
3.04, ‎Section 9.06 or Section ‎11.07
not involving any transfer.

 

The Company
shall not be required (i) to issue, register the transfer of or exchange any Subordinated Debt Security of any series during a
period beginning at the opening of business 15 days before the day of the giving of a notice of redemption of Subordinated Debt
Securities of such series selected for redemption under ‎Section
11.03 and ending at the close of business on the day of the giving of such notice, or (ii) to register the transfer of or exchange
any Subordinated Debt Security so selected for redemption in whole or in part, except the unredeemed portion of any Subordinated
Debt Securities being redeemed in part.

 

Section 3.06.     
Mutilated, Destroyed, Lost and Stolen Subordinated Debt Securities. If any mutilated Subordinated Debt Security
(including any Global Security) is surrendered to the Trustee, the Company may execute (and the Guarantee shall be endorsed thereon
by the Guarantor) and the Trustee shall, in the case of a Subordinated Debt Security, authenticate and deliver in exchange therefor
a new Subordinated Debt

 

    30 

     

    

 

Security
of the same series containing identical terms and provisions and of like amount, and bearing a number not contemporaneously outstanding.

 

If there
shall be delivered to the Company, the Guarantor and to the Trustee (i) evidence to their satisfaction of the destruction,
loss or theft of any Subordinated Debt Security (including any Global Security) and (ii) such security or indemnity as may be
required by them to save each of them and any agent of any of them harmless, then, in the absence of notice to the Company, the
Guarantor or the Trustee that such Subordinated Debt Security has been acquired by a bona fide purchaser, the Company shall execute
(and the Guarantee shall be endorsed thereon by the Guarantor) and upon the Company’s request the Trustee shall authenticate
and deliver in lieu of any such destroyed, lost or stolen Subordinated Debt Security a new Subordinated Debt Security of the same
series containing identical terms and provisions and of like amount, and bearing a number not contemporaneously outstanding.

 

In case any
such mutilated, destroyed, lost or stolen Subordinated Debt Security has become or is about to become due and payable, the Company
in its discretion may, instead of issuing a new Subordinated Debt Security, pay such Subordinated Debt Security.

 

Upon the
issuance of any new Subordinated Debt Security under this Section, the Company may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith.

 

Every new
Subordinated Debt Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Subordinated
Debt Security shall constitute an original additional contractual obligation of the Company and the Guarantor, whether or not
the destroyed, lost or stolen Subordinated Debt Security shall be at any time enforceable by anyone, and shall be entitled to
all the benefits of this Subordinated Debt Securities Indenture equally and proportionately with any and all other Subordinated
Debt Securities of that series duly issued hereunder.

 

The provisions
of this Section, as amended or supplemented pursuant to this Subordinated Debt Securities Indenture, are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Subordinated Debt Securities.

 

Section 3.07.     
Payment; Interest Rights and Rights to Additional Amounts Preserved. Except as otherwise provided as contemplated
by ‎Section 3.01 with respect to any series of Subordinated Debt Securities, interest, if any, and any Additional Amounts
on any Subordinated Debt Securities which is payable, and is paid or duly provided for, on any Interest Payment Date shall be
paid to the Holder (including through a Paying Agent of the Company designated pursuant to ‎Section 3.01 for collection
by the Holder) at the close of business on the Regular Record Date.

 

    31 

     

    

 

In the case
of Subordinated Debt Securities where payment is to be made in Dollars, payment at any Paying Agent’s office outside The
City of New York will be made in Dollars by check drawn on, or, at the request of the Holder, by transfer to a Dollar account
maintained by the payee with, a bank in The City of New York.

 

In the case
of Subordinated Debt Securities where payment is to be made in a Foreign Currency, payment will be made as established pursuant
to ‎Section 3.01.

 

Any interest
on and any Additional Amounts with respect to any Subordinated Debt Security of any series which is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date is herein called “Default Interest”. Default Interest
on any Subordinated Debt Security of any series shall forthwith cease to be payable to the Holder on the relevant Regular Record
Date by virtue then of having been such Holder, and such Default Interest may be paid by the Company, at its election, in each
case, as provided in clause (a) or (b) below:

 

(a)            The
Company may elect to make payment of any Default Interest to the Persons in whose names the Subordinated Debt Securities of such
series (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment
of such Default Interest, which shall be fixed in the following manner.  The Company shall notify the Trustee in writing
of the amount of Default Interest proposed to be paid on each Subordinated Debt Security of such series and the date of the proposed
payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed
to be paid in respect of such Default Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such
Default Interest as in this clause provided.  Thereupon the Company shall fix a Special Record Date for the payment
of such Default Interest in respect of such Subordinated Debt Securities of such series which shall be not more than 15 days and
not less than 10 days prior to the date of the proposed payment and not less than 10 days after it delivers to the Trustee notice
of the proposed payment.  The Company shall promptly notify the Trustee of such Special Record Date and, in the name
and at the expense of the Company, the Trustee shall cause notice of the proposed payment of such Default Interest and the Special
Record Date therefor to be given in the manner and to the extent provided in ‎Section
1.06, not less than 10 days prior to such Special Record Date.  The Trustee shall, at the instruction of the Company,
in the name and at the expense of the Company, cause a similar notice to be published in an Authorized Newspaper of general circulation
in the Borough of Manhattan, The City of New York, but such publication shall be not be a condition precedent to the establishment
of such Special Record Date. Notice of the proposed payment of such Default Interest on the Subordinated Debt Securities of such
series and the Special Record Date therefor having been so given, such Default Interest on the Subordinated Debt Securities of
such series shall be paid in the case of Subordinated Debt Securities to the Persons in whose names such Subordinated Debt Securities
(or their respective Predecessor Securities) are registered in the Subordinated Debt Security Register at the close of business
on the Special Record Date, and such Default Interest shall no longer be payable pursuant to the following clause (b); or

 

    32 

     

    

 

(b)            The
Company may make payment of any Default Interest on the Subordinated Debt Securities of any series to the Persons in whose names
the Subordinated Debt Securities are registered in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Subordinated Debt Securities may be listed, and upon such notice as may be required by such exchange, if,
after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall
be deemed practicable by the Trustee.

 

Subject to
the foregoing provisions of this Section, each Subordinated Debt Security delivered under this Subordinated Debt Securities Indenture
upon registration of transfer of or in exchange for or in lieu of any other Subordinated Debt Security shall carry the rights
to interest accrued and unpaid, and to accrue, which were carried by such other Subordinated Debt Security.

 

Section 3.08.     
Persons Deemed Owners. Prior to due presentment of a Subordinated Debt Security for registration of transfer, the
Company, the Guarantor, the Trustee and any agent of the Company, the Guarantor or the Trustee may treat the Person in whose name
such Subordinated Debt Security is registered as the owner of such Subordinated Debt Security for the purpose of receiving payment
of principal of (and premium, if any) and interest, if any, on and any Additional Amounts with respect to such Subordinated Debt
Security and for all other purposes whatsoever, whether or not such Subordinated Debt Security be overdue, and neither the Company,
the Guarantor, the Trustee nor any agent of the Company, the Guarantor or the Trustee shall be affected by notice to the contrary.
The aggregate principal amount of the Subordinated Debt Securities of any series shall be reflected on the books and records of
the Subordinated Debt Security Registrar.

 

None
of the Company, the Guarantor, the Trustee, the Paying Agent or the Subordinated Debt Security Registrar shall have
any responsibility or obligation to any beneficial owner in a Global Security, an Agent Member or other Person with respect
to the accuracy of the records of the Depositary or its nominee or of any Agent Member, with respect to any ownership
interest in the Subordinated Debt Securities or with respect to the delivery to any Agent Member, beneficial owner or other
Person (other than the Depositary) of any notice (including any notice of redemption) or the payment of any amount, under or
with respect to such Subordinated Debt Securities. All notices and communications to be given to the Holders and all payments
to be made to Holders under the Subordinated Debt Securities and this Subordinated Debt Securities Indenture shall be given
or made only to or upon the order of the registered holders (which shall be the Depositary or its nominee in the case of
the Global Security). The rights of beneficial owners in the Global Security shall be exercised only through the
Depositary subject to the applicable procedures. The Company, the Guarantor, the Trustee, the Paying Agent and the
Subordinated Debt Security Registrar shall be entitled to rely and shall be fully protected in relying upon information
furnished by the Depositary with respect to its members, participants and any beneficial owners. The Company, the Trustee, the Paying Agent and the Subordinated Debt Security Registrar shall be entitled to deal with the Depositary, and
any nominee thereof, that is the registered holder of any Global Security for all purposes of this Subordinated Debt
Securities Indenture relating to such Global Security (including the payment of principal, premium, if any, and interest and
additional amounts, if any, and

 
 

    33 

     

    

 

the
giving of instructions or directions by or to the owner or holder of a beneficial ownership interest in such Global Security)
as the sole holder of such Global Security and shall have no obligations to the beneficial owners thereof. None of the Company,
the Guarantor, the Trustee, the Paying Agent or the Subordinated Debt Security Registrar shall have any responsibility or liability
for any acts or omissions of the Depositary with respect to such Global Security, for the records of any such Depositary, including
records in respect of beneficial ownership interests in respect of any such Global Security, for any transactions between the
Depositary and any Agent Member or between or among the Depositary, any such Agent Member and/or any holder or owner of a beneficial
interest in such Global Security, or for any transfers of beneficial interests in any such Global Security.
  

Notwithstanding
the foregoing, with respect to any Global Security, nothing herein shall prevent the Company, the Guarantor, the Trustee, or
any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization
furnished by any Depositary (or its nominee), as a Holder, with respect to such Global Security or shall impair, as between
such Depositary and owners of beneficial interests in such Global Security, the operation of customary practices governing
the exercise of the rights of such Depositary (or its nominee) as Holder of such Global Security.

 

Each
Holder and beneficial owner that acquires its Subordinated Debt Security in the secondary market shall be deemed to
acknowledge and agree to be bound by and consent to the same provisions specified in this Subordinated Debt Securities
Indenture and the Subordinated Debt Securities to the same extent as the Holders and beneficial owners of the Subordinated
Debt Securities that acquire the Subordinated Debt Securities upon their initial issuance, including, without limitation,
with respect to the acknowledgement and agreement to be bound by and consent to the terms of the Subordinated Debt
Securities, including in relation to the Spanish Bail-in Power.

 

Section 3.09.     
Cancellation. All Subordinated Debt Securities surrendered for payment, redemption, registration of transfer or
exchange shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled
by it. The Company or the Guarantor may at any time deliver to the Trustee for cancellation any Subordinated Debt Securities previously
authenticated and delivered hereunder and all Subordinated Debt Securities so delivered shall be promptly cancelled by the Trustee.
No Subordinated Debt Securities shall be authenticated in lieu of or in exchange for any Subordinated Debt Securities cancelled
as provided in this Section, except as expressly permitted by the provisions of the Subordinated Debt Securities of any series
or pursuant to the provisions of this Subordinated Debt Securities Indenture. The Trustee shall deliver to the Company all cancelled
Subordinated Debt Securities held by the Trustee.

 

Section 3.10.     
Computation of Interest. Except as otherwise specified pursuant to ‎Section 3.01 for Subordinated Debt
Securities of any series, payments of interest on the Subordinated Debt Securities of each series shall be computed on the basis
of a 360- day year of twelve 30-day months.

 

    34 

     

    

 

Section 3.11.     
CUSIP Numbers. The Company in issuing any series of the Subordinated Debt Securities may use “CUSIP”,
“ISIN” and/or “Common Code” and/or other similar numbers (if then generally in use) or any
successor to such numbers and thereafter with respect to such series, the Trustee shall use “CUSIP”, “ISIN”
and/or “Common Code” and/or other similar numbers or successor numbers in notices of redemption as a convenience
to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either
as printed on the Subordinated Debt Securities or as contained in any notice of a redemption and that reliance may be placed only
on the other identification numbers printed on the Subordinated Debt Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the “CUSIP”,
“ISIN” and/or “Common Code” and/or other similar numbers or successor numbers.

 

Section 3.12.     
Additional Subordinated Debt Securities. The Company may, from time to time, without the consent of the Holders
of the Subordinated Debt Securities of any series, issue additional Subordinated Debt Securities (“Additional Subordinated
Debt Securities”) of one or more of the series of Subordinated Debt Securities issued under this Subordinated Debt Securities
Indenture, guaranteed by the Guarantor, having the same ranking and same interest rate, Maturity, redemption terms and other terms,
except for the price to the public, original interest accrual date, issue date and first Interest Payment Date, as the Subordinated
Debt Securities; provided, however, that such Additional Subordinated Debt Securities will not have the same CUSIP, ISIN
or other identifying number as the outstanding Subordinated Debt Securities of such series unless the Additional Subordinated
Debt Securities are fungible with the Subordinated Debt Securities for U.S. federal income tax purposes. Any such Additional Subordinated
Debt Securities, together with the Subordinated Debt Securities of the applicable series, will constitute a single series of Subordinated
Debt Securities under this Subordinated Debt Securities Indenture and shall be included in the definition of “Subordinated
Debt Securities” in this Subordinated Debt Securities Indenture where the context requires.

 

Section 3.13.     
Correction of Minor Defects in or Amendment of Subordinated Debt Securities. If, after issuance of any Subordinated
Debt Security (including any Global Security), the Company, the Guarantor or the Trustee shall become aware of any ambiguity,
defect or inconsistency in any term of a Subordinated Debt Security or Global Security, as the case may be, or, with respect to
any Subordinated Debt Security (including any Global Security) issued on or after the date hereof, the Company, the Guarantor
and the Trustee agree to amend such Subordinated Debt Security as contemplated by ‎Section 9.01(l), the parties hereto
shall provide for the execution, authentication, delivery and dating of one or more replacement Subordinated Debt Securities or
Global Securities, as the case may be, pursuant to ‎Section 3.03 hereto.

 

Section 3.14.     
Payments Subject to Fiscal Laws. All payments in respect of the Subordinated Debt Securities will be subject in
all cases to any fiscal or other laws and regulations applicable thereto in the place of payment (including FATCA, any regulations
or agreements thereunder, any official interpretation thereof, any intergovernmental agreements with respect thereto, or any law
implementing an intergovernmental

 

    35 

     

    

 

agreement
or any regulations or official interpretations relating thereto), but without prejudice to the provisions of ‎Section
10.04.

 

Article
4

Satisfaction and Discharge

 

Section 4.01.     
Satisfaction and Discharge of Subordinated Debt Securities Indenture. This Subordinated Debt Securities Indenture
shall upon Company Request, cease to be of further effect with respect to Subordinated Debt Securities of any series (except as
to any surviving rights of registration of transfer or exchange of Subordinated Debt Securities of such series herein expressly
provided for), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Subordinated Debt Securities Indenture with respect to the Subordinated Debt Securities of such series when:

 

(a)          
either

 

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

 

(ii)           
all such Subordinated Debt Securities not theretofore delivered to the Trustee for cancellation:

 

(A)           
have become due and payable or will become due and payable at their Stated Maturity within one year, or

 

(B)           
are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice
of redemption by the Trustee in the name, and at the expense, of the Company,

 

and the Company or
the Guarantor has deposited or caused to be deposited with the Trustee, as trust funds in trust for the purpose, an amount in
cash, or U.S. Government Obligations (with respect to Subordinated Debt Securities denominated in Dollars) or Foreign Government
Securities (with respect to Subordinated Debt Securities denominated in the same Foreign Currency) maturing, in the case of (A)
and (B) above, as to principal and interest, if any, in such amounts and at such times as will ensure the availability of cash
sufficient without reinvestment, as confirmed by a letter from an internationally recognized firm of independent public accountants
(which shall not be subject to the requirements of Section 1.02) in the form of an agreed-upon procedures letter in

 

    36 

     

    

 

its then customary
form, to pay, satisfy and discharge all claims with respect to such Subordinated Debt Securities not theretofore delivered to
the Trustee for cancellation, in the case of (A) and (B) above, for principal (and premium, if any) and accrued interest, if any,
to the date of such deposit (in the case of Subordinated Debt Securities which have become due and payable) or to the Redemption
Date, as the case may be;

 

(b)            
the Company or the Guarantor has paid or caused to be paid all other sums payable hereunder by the Company with respect
to the Subordinated Debt Securities of such series; and

 

(c)            
the Company or the Guarantor has delivered to the Trustee an Officer’s Certificate, and an Opinion of Counsel, each
stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Subordinated Debt
Securities Indenture with respect to the Subordinated Debt Securities of such series have been complied with.

 

In addition,
upon the exercise of a Spanish Bail-in Power with respect to a series of Subordinated Debt Securities which results in the cancellation,
or the conversion into other securities, of all the principal amount of, and interest on such Subordinated Debt Securities or
such Subordinated Debt Securities otherwise ceasing to be outstanding, the Subordinated Debt Securities Indenture shall be satisfied
and discharged as to such series.

 

Notwithstanding
any satisfaction and discharge of this Subordinated Debt Securities Indenture, the obligations of the Company and the Guarantor
to the Trustee under ‎Section 6.08, the obligations of the
Trustee to any Authenticating Agent under ‎Section 6.15 and,
if cash, U.S. Government Obligations and/or Foreign Government Securities shall have been deposited with the Trustee pursuant
to subclause ‎4.01(a)(ii) of clause ‎4.01(a)
of this Section, the obligations of the Trustee under ‎Section
4.02 and the last paragraph of ‎Section 10.03 shall survive
such satisfaction and discharge, including any termination under any bankruptcy law.

 

Section 4.02.     
Defeasance and Covenant Defeasance. (a) If, pursuant to Section 3.01, provision is made for either or both of (i)
defeasance of the Subordinated Debt Securities of or within a series under subsection (b) of this Section 4.02 or (ii) covenant
defeasance of the Subordinated Debt Securities of or within a series under subsection (c) of this Section 4.02, then such provisions,
together with the other provisions of this Section 4.02 (with such modifications thereto as may be specified pursuant to Section
3.01 with respect to any Subordinated Debt Securities), shall be applicable to such Subordinated Debt Securities, and the Company
or the Guarantor may at its option by Company Order, at any time, with respect to such Subordinated Debt Securities, and the Guarantees
thereof, elect to have Section 4.02(b) (if applicable) or Section 4.02(c) (if applicable) be applied to such Outstanding Subordinated
Debt Securities upon compliance with the conditions set forth below in this Section 4.02.

 

(b)            
Upon the Company’s or the Guarantor’s exercise of the above option applicable to this Section 4.02(b) with
respect to any Subordinated Debt Securities of or

 

    37 

     

    

 

within
a series and the Guarantees thereof, the Company shall be deemed to have been discharged from its obligations with respect to
such Outstanding Subordinated Securities and the Guarantor shall be deemed to have been discharged from its obligations with
respect to the related Guarantees, on the date the conditions set forth in subsection (d) of this Section 4.02 are satisfied
(hereinafter, “defeasance”). For this purpose, such defeasance means that the Company shall be deemed to have
paid and discharged the entire indebtedness represented by such Outstanding Subordinated Debt Securities and the Guarantor
shall be deemed to have satisfied all of its obligations under this Subordinated Debt Securities Indenture and with respect
to the Guarantees relating to such Subordinated Debt Securities, and such Subordinated Debt Securities shall thereafter be
deemed to be “Outstanding” only for the purposes of subsection (e) of this Section 4.02 and the other Sections of
this Subordinated Debt Securities Indenture referred to in clauses (i) and (ii) below, and each of the Company and the
Guarantor shall be deemed to have satisfied all of its other obligations under such Subordinated Debt Securities, the
Guarantees thereof and this Subordinated Debt Securities Indenture insofar as such Subordinated Debt Securities and the
Guarantees thereof are concerned (and the Trustee, at the expense of the Company and the Guarantor, shall execute proper
instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged
hereunder: (i) the rights of Holders of such Outstanding Subordinated Debt Securities to receive, solely from the trust fund
described in subsection (d) of this Section 4.02 and as more fully set forth in such Section, payments in respect of the
principal of (and premium, if any) and interest, if any, and Additional Amounts on such Subordinated Debt Securities when
such payments are due, (ii) the Company’s and the Guarantor’s obligations with respect to such Subordinated Debt
Securities under Section 3.05, Section 3.06, Section 10.02 and Section 10.03 and with respect to the payment of
Additional Amounts, if any, on such Subordinated Debt Securities as contemplated by Section 10.04, (iii) the rights, powers,
trusts, duties and immunities of the Trustee hereunder and (iv) this Section 4.02. The Company or the Guarantor may exercise
its option under this Section 4.02(b) notwithstanding the prior exercise of its option under subsection (c) of this Section
4.02 with respect to such Subordinated Debt Securities.

 

(c)            
Upon the Company’s or the Guarantor’s exercise of the above option applicable to this Section 4.02(c) with
respect to any Subordinated Debt Securities of or within a series, the Company and the Guarantor shall be released from, if specified
pursuant to Section 3.01, their obligations under any other covenant, with respect to such Outstanding Subordinated Debt Securities
and the Guarantees thereof on and after the date the conditions set forth in subsection (d) of this Section 4.02 are satisfied
(hereinafter, “covenant defeasance”), and such Subordinated Debt Securities shall thereafter be deemed to be not “Outstanding”
for the purposes of any direction, waiver, consent or declaration (and the consequences of any thereof) in connection with such
other covenant, but shall continue to be deemed “Outstanding” for all other purposes hereunder. For this purpose,
such covenant defeasance means that, with respect to such Outstanding Subordinated Debt Securities, the Company and the Guarantor
may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such Section
or such other covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such Section or such
other covenant or by reason of reference in any such Section or such other covenant to any other provision

 

    38 

     

    

 

herein
or in any other document and such omission to comply shall not constitute a default or an Event of Default, but, except as specified
above, the remainder of this Subordinated Debt Securities Indenture and such Subordinated Debt Securities and the Guarantee thereof
shall be unaffected thereby.

 

(d)            
The following shall be the conditions to application of subsection (b) or (c) of this Section 4.02 to any Outstanding Subordinated
Debt Securities of or within a series:

 

(i)           
The Company or the Guarantor shall irrevocably have deposited or caused to be deposited with the Trustee (or another trustee
satisfying the requirements of Section 6.11 who shall agree to comply with the provisions of this Section 4.02 applicable to it)
as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of such Subordinated Debt Securities, (A) an amount in Dollars or in such Foreign Currency
in which such Subordinated Debt Securities are then specified as payable at Stated Maturity, or (B) U.S. Government Obligations
applicable to such Subordinated Debt Securities (determined on the basis of the Currency in which such Subordinated Debt Securities
are then specified as payable at Stated Maturity) which through the scheduled payment of principal and interest in respect thereof
in accordance with their terms will provide, not later than one day before the due date of any payment of principal of (and premium,
if any) and interest, if any, on such Subordinated Debt Securities, money in an amount, or (C) a combination thereof, in any case,
in an amount, sufficient, without consideration of any reinvestment of such principal and interest, in the opinion of an internationally
recognized firm of Independent Public Accountants expressed in a written certification thereof delivered to the Trustee, to pay
and discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge, (y) the principal
of (and premium, if any) and interest, if any, on such outstanding Subordinated Debt Securities on the Stated Maturity of such
principal or installment of principal or interest and Additional Amounts and (z) any mandatory sinking fund payments or analogous
payments applicable to such Outstanding Subordinated Debt Securities on the day on which such payments are due and payable in
accordance with the terms of this Subordinated Debt Securities Indenture and of such Subordinated Debt Securities.

 

(ii)          
Such defeasance or covenant defeasance shall not result in a breach or violation of, or constitute a default under, this
Subordinated Debt Securities Indenture or any other material agreement or instrument to which the Company or the Guarantor is
a party or by which it is bound.

 

(iii)         
No Event of Default or event which with notice or lapse of time or both would become an Event of Default with respect to
such Subordinated Debt Securities shall have occurred and be continuing on the date of the establishment of such trust and, with
respect to legal defeasance only, at any time during the period ending on the 91st day after the date of such deposit (it being
understood

 

    39 

     

    

 

that
this condition shall not be deemed satisfied until the expiration of such period).

 

(iv)         
In the case of an election under subsection (b) of this Section 4.02, the Company or the Guarantor shall have delivered
to the Trustee an opinion of counsel of recognized standing stating that (A) the Company has received from the Internal Revenue
Service a letter ruling, or there has been published by the Internal Revenue Service a Revenue Ruling, or (B) since the date of
execution of this Subordinated Debt Securities Indenture, there has been a change in the applicable U.S. federal income tax law,
in either case to the effect that, and based thereon such opinion shall confirm that, the beneficial owners of such Outstanding
Subordinated Debt Securities will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such
legal defeasance and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if such legal defeasance had not occurred.

 

(v)          
In the case of an election under subsection (c) of this Section 4.02, the Company or the Guarantor shall have delivered
to the Trustee an opinion of counsel of recognized standing to the effect that the beneficial owners of such Outstanding Subordinated
Debt Securities will not recognize income, gain or loss for U.S. federal income tax purposes as a result of such covenant defeasance
and will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been
the case if such covenant defeasance had not occurred.

 

(vi)         
Such defeasance or covenant defeasance shall not cause the Trustee to have a conflicting interest within the meaning of
the Trust Indenture Act (assuming all relevant Securities are in default within the meaning of such Act).

 

(vii)        
Such defeasance or covenant defeasance shall not result in the trust arising from such deposit constituting an investment
company within the meaning of the Investment Company Act of 1940, as amended, and rules and regulations adopted by the Commission
thereunder, unless such trust shall be registered under such Act or exempt from registration thereunder.

 

(viii)       
The Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating
that all conditions precedent to the defeasance or covenant defeasance under subsection (b) or (c) of this Section 4.02 (as the
case may be) have been complied with.

 

(ix)          
Notwithstanding any other provisions of this Section 4.02(d), such defeasance or covenant defeasance shall be effected
in compliance with any additional or substitute terms, conditions or limitations which may be imposed on the Company in connection
therewith pursuant to Section 3.01.

 

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(e)            
Subject to the provisions of the last paragraph of Section 10.03, all money and U.S. Government Obligations (or other property
as may be provided pursuant to Section 3.01) (including the proceeds thereof) deposited with the Trustee (or other qualifying
trustee, collectively for purposes of this Section 4.02(e), the “Trustee”) pursuant to subsection (d) of Section 4.02
in respect of any Outstanding Subordinated Debt Securities of any series shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Subordinated Debt Securities and this Subordinated Debt Securities Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Holders of such Subordinated Debt Securities of all sums due and to become due thereon in respect of principal (and premium,
if any) and interest and Additional Amounts, if any, but such money need not be segregated from other funds except to the extent
required by law.

 

(f)            
Unless otherwise specified with respect to any Subordinated Debt Security pursuant to Section 3.01, if, after a deposit
referred to in Section 4.02(d)(i) has been made, (i) the Holder of a Subordinated Debt Security in respect of which such deposit
was made is entitled to, and does, elect pursuant to Section 3.01 or the terms of such Subordinated Debt Security to receive payment
in a Currency other than that in which the deposit pursuant to Section 4.02(d)(i) has been made in respect of such Subordinated
Debt Security, or (ii) a Conversion Event occurs in respect of the Foreign Currency in which the deposit pursuant to Section 4.02(d)(i)
has been made, the indebtedness represented by such Subordinated Security and the Guarantee thereof shall be deemed to have been,
and will be, fully discharged and satisfied through the payment of the principal of (and premium, if any), interest, if any, and
Additional Amounts, if any, on such Subordinated Debt Security as the same becomes due out of the proceeds yielded by converting
(from time to time as specified below in the case of any such election) the amount or other property deposited in respect of such
Subordinated Debt Security into the Currency in which such Subordinated Debt Security becomes payable as a result of such election
or Conversion Event based on the applicable market exchange rate for such Currency in effect on the second Business Day prior
to each payment date, except, with respect to a Conversion Event, for such Foreign Currency in effect at the time of the Conversion
Event.

 

(g)            
Anything in this Section 4.02 to the contrary notwithstanding, the Trustee shall deliver or pay to the Company or the Guarantor
from time to time upon Company Request any money or U.S. Government Obligations (or other property and any proceeds therefrom)
held by it as provided in subsection (d) of this Section 4.02 which, in the opinion of an internationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof
which would then be required to be deposited to effect a defeasance or covenant defeasance, as applicable, in accordance with
this Section 4.02.

 

Section 4.03.     
Application of Trust Money. Subject to the provisions of the last paragraph of ‎Section 10.03, all cash,
U.S. Government Obligations and Foreign Government Securities deposited with the Trustee pursuant to ‎Section 4.01
shall be held in trust and such cash and the proceeds from such U.S. Government Obligations and/or

 

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Foreign
Government Securities shall be applied by it, in accordance with the provisions of the Subordinated Debt Securities of such series,
and this Subordinated Debt Securities Indenture, to the payment, either directly or through any Paying Agent (including the Company
or Guarantor acting as Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium,
if any) and interest for the payment of which such cash, U.S. Government Obligations and/or Foreign Government Securities have
been deposited with the Trustee.

 

Section 4.04.     
Repayment to Company. The Trustee, the Calculation Agent and any Paying Agent promptly shall pay to the Company
upon Company Request any excess money, U.S. Government Obligations and/or Foreign Government Securities held by them at any time
with respect to any series of Subordinated Debt Securities.

 

Section 4.05.     
Reinstatement. If the Trustee or any Paying Agent is unable to apply any money or U.S. Government Obligations in
accordance with this ‎Article 4 by reason of any legal proceeding or by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such application, the obligations of the Company and
the Guarantor under this Subordinated Debt Securities Indenture, the Subordinated Debt Securities and the Guarantees shall be
revived and reinstated as though no deposit had occurred pursuant to this ‎‎‎Article 4 until such time as the
Trustee or such Paying Agent is permitted to apply all such money or U.S. Government Obligations in accordance with this ‎Article
4; provided, however, that, if the Company or the Guarantor has made any payment of principal of or interest on any Subordinated
Debt Securities because of the reinstatement of its obligations, the Company and the Guarantor shall be subrogated to the rights
of the Holders of such Subordinated Debt Securities to receive such payment from the money or U.S. Government Obligations held
by the Trustee or such Paying Agent.

 

Article
5

Remedies

 

Section 5.01.     
Events of Default. (a) Except as otherwise provided pursuant to Section 3.01, if any of the following events occurs
and is continuing with respect to the Subordinated Debt Securities of any series it shall constitute an “Event of Default”:

 

(i)            Non-payment:
default is made in the payment of any interest or principal due in respect of the Subordinated Debt Securities of that series
or any of them and such default continues for a period of seven days (or such other period as may be specified pursuant to
Section 3.01).

 

(ii)          
Winding up: any order is made by any competent court or resolution passed for the winding up or dissolution of the
Company or the Guarantor (except in any such case for the purpose of reconstruction or a merger or amalgamation which has been
previously approved by the holders of at least a majority of the outstanding principal amount of the subordinated debt securities
of that series or a merger with another institution in this case even without being

 

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approved
by Holders of the Subordinated Debt Securities of such series, provided that any entity that survives or is created as a result
of such merger is given a rating by an internationally recognized rating agency at least equal to the then current rating of the
Company or the Guarantor, as the case may be, at the time of such merger).

 

(b)            
Neither a reduction or cancellation, in part or in full of the Amounts Due on, the conversion thereof into another security
or obligation of the Company, the Guarantor or another person, as a result of the exercise of the Spanish Bail-in Power by the
relevant resolution authority with respect to the Guarantor, nor the exercise of the Spanish Bail-in Power by the relevant resolution
authority with respect to the Subordinated Debt Securities of any series will be an Event of Default.

 

(c)            
No exercise of a resolution tool by the relevant resolution authority or any action in compliance therewith shall constitute
an Event of Default.

 

Section 5.02.     
Enforcement of Remedies. (a) If an Event of Default occurs as set forth in paragraph (a)(i) of Section 5.01, then
the Trustee or the Holders of at least 25% in outstanding principal amount of the Subordinated Debt Securities of that series
may institute proceedings for the winding up or dissolution of the Company or the Guarantor but may take no further action in
respect of such default.

 

(b)            
If an Event of Default occurs as set forth in paragraph (a)(ii) of Section 5.01, then the Trustee or the Holders of at
least 25% in outstanding principal amount of the Subordinated Debt Securities of that series may declare such Subordinated Debt
Securities of such series immediately due and payable whereupon the Subordinated Debt Securities of such series shall, when permitted
by applicable Spanish insolvency law, become immediately due and payable at their Early Termination Amount together with all interest
(if any) accrued thereon.

 

(c)             Without
prejudice to paragraphs (a)(i) and (a)(ii) of Section 5.01, the Trustee or the holders of at least 25% in outstanding
principal amount of the Subordinated Debt Securities of any series may at their discretion and without further notice,
institute such proceedings against the Company or the Guarantor as they may think fit to enforce any obligation, condition or
provision binding on the Company or the Guarantor under the Subordinated Debt Securities of such series, provided that,
except as provided in Section 5.01(a)(ii) winding-up above, neither the Company nor the Guarantor shall as a consequence of such
proceedings be obliged to pay any sum or sums representing or measured by reference to principal or interest in respect of
the Subordinated Debt Securities of such series sooner than the same would otherwise have been payable by it or
any damages.

 

Section 5.03.     
Collection of Indebtedness and Suits for Enforcement by the Trustee. (a) If an Event of Default with respect to
the Subordinated Debt Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect
and enforce its rights and the rights of the Holders of the Subordinated Debt Securities of such series by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement
of

 

    43 

     

    

 

any
covenant or agreement in this Subordinated Debt Securities Indenture or in aid of the exercise of any power granted herein, or
to enforce any other proper remedy, including the institution of proceedings in Spain (but not elsewhere) for the winding-up of
the Company or the Guarantor, provided that, except as provided in (ii) of Section 5.02 above, neither the Company nor the Guarantor
shall as a consequence of such proceedings be obliged to pay any sum or sums representing or measured by reference to principal
or interest in respect of the Subordinated Debt Securities of such series sooner than the same would otherwise have been payable
by it or any damages.

 

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

 

Notwithstanding
the foregoing, failure to make any payment in respect of a series of Subordinated Debt Securities, including under the Guarantee
thereon, shall not be an Event of Default in respect of such Subordinated Debt Securities or Guarantee, as applicable, if such
payment is withheld or refused and the Company or the Guarantor, as applicable, deliver an Opinion of Counsel concluding that
such sums were not paid in order to comply with any fiscal or other law or regulation or with the order of any court of competent
jurisdiction, provided, however, that the Trustee may by notice to the Company or the Guarantor, as applicable, require the Company
or the Guarantor, as the case may be, 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 Company or the Guarantor, as
applicable, 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 action results in a determination 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 or seven days after the Trustee gives written notice to the Company
or the Guarantor, as applicable, informing it of such resolution.

 

No recourse
for the payment of the principal of (or premium, if any) or interest, if any, on any Subordinated Debt Security, or for any claim
based thereon on the Guarantee endorsed thereon or otherwise in respect thereof or of the Guarantee and no recourse under or upon
any obligation, covenant or agreement of the Company or the Guarantor in this Subordinated Debt Securities Indenture, or in any
Subordinated Debt Security, in the Guarantee endorsed thereon, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder (other than the Guarantor under the terms of the Guarantee), officer or director,
past, present or future, of the Company or any Guarantor of any successor corporation of either the Company, either directly or
through the Company or the Guarantor or any successor corporation of either,

 

    44 

     

    

 

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 Subordinated Debt Securities Indenture and the issue of the Subordinated Debt Securities
of a series, and the endorsement of the Guarantee thereon.

 

Section 5.04.     
Trustee May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition, winding-up or other judicial proceeding relative to the Company or the Guarantor
or any other obligor upon the Subordinated Debt Securities of any series or Guarantee or to the property of the Company or the
Guarantor or such other obligor or their creditors (other than under or in connection with a scheme of amalgamation or reconstruction
not involving bankruptcy or insolvency), the Trustee (irrespective of whether the principal of the Subordinated Debt Securities
of such series shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the
Trustee shall have made any demand on the Company or the Guarantor for the payment of overdue principal (and premium, if any)
or interest, if any) and Additional Amounts shall be entitled and empowered, by intervention in such proceeding or otherwise,
to take any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders and the Trustee allowed
in any such proceeding; provided that the Company or the Guarantor, as the case may be, shall not, as a result of the bringing
of such proceedings, be obliged to pay any sum representing or measured by reference to principal, premium or interest on the
Subordinated Debt Securities sooner than the same would otherwise have been payable by it. In particular, the Trustee shall be
authorized to collect and receive any moneys and other property payable or deliverable on any such claims and to distribute the
same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder of a Subordinated Debt Security to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to such Holders or holders, to first pay to the Trustee
any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel,
and any other amounts due to the Trustee under ‎Section 6.08.

 

Subject to
‎Article 8 and ‎Section
9.02, nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder of any Subordinated Debt Security any plan of reorganization, arrangement, adjustment, or composition affecting
any Subordinated Debt Securities or the rights of any Holder of any Subordinated Debt Security or to authorize the Trustee to
vote in respect of the claim of any such Holder in any such proceeding.

 

The provisions
of this ‎Section 5.04 are subject to the provisions of ‎Article
12.

 

Section 5.05.     
Trustee May Enforce Claims Without Possession of Subordinated Debt Securities. All rights of action and claims under
this Subordinated Debt Securities Indenture or the Subordinated Debt Securities may be prosecuted and enforced by the

 

    45 

     

    

 

Trustee
without the possession of any of the Subordinated Debt Securities or the production thereof in any proceeding relating thereto,
and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery
of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel (subject, with regard to the Company, to the provisions of ‎Article
12, and with regard to the Guarantor, to the provisions of ‎Section
13.02) be for the ratable benefit of the Holders of the Subordinated Debt Securities in respect of which such judgment has been
recovered.Section 5.06.      Application
of Money Collected. Any money collected by the Trustee pursuant to this Article or, after an Event of Default, any money or
other property distributable in respect of the Company’s obligations under this Subordinated Debt Securities Indenture,
in respect of any series of Subordinated Debt Securities shall, subject to the provisions of ‎Section
5.03 in relation to waiver and set-off, ‎Article 12 in relation
to subordination and ‎Section 13.02 in relation to subordination
of the Guarantee, be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution
of such money on account of principal (and premium, if any) or interest, if any, and Additional Amounts upon presentation of such
Subordinated Debt Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully
paid:

 

FIRST:
To the payment of all amounts applicable to such series of Subordinated Debt Securities due and owing to the Trustee (including
any predecessor Trustee) under ‎Section 6.08;

 

SECOND:
Subject to Section 12.01, to the payment of the amounts then due and unpaid for principal of (and premium, if any) and interest,
if any, and Additional Amounts on such series of Subordinated Debt Securities in respect of which or for the benefit of which
such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on
such Subordinated Debt Securities for principal (and premium, if any) and interest, if any, respectively; and

 

THIRD:
To the payment of the balance, if any, to the Company, the Guarantor or any other Person or Persons legally entitled thereto.

 

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

 

(a)            
such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to Subordinated
Debt Securities of the same series specifying such Event of 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 Subordinated Debt Securities of such
series shall have made written request

 

    46 

     

    

 

to
the Trustee to institute proceedings in accordance with ‎5.02 to ‎5.05 hereof in respect of such Event of
Default in its own name, as Trustee hereunder;

 

(c)             such
Holder of a Subordinated Debt Security has offered to the Trustee reasonable indemnity and/or security satisfactory to it
(as determined by the Trustee in its sole discretion) 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 has failed to institute any such
proceeding; and

 

(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 Subordinated Debt Securities of such series;

 

it being understood and intended
that no one or more Holders of Subordinated 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 Subordinated Debt Securities Indenture 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 Subordinated Debt Securities Indenture, except in the manner herein provided
and for the equal and ratable benefit of all Holders of Subordinated Debt Securities of such series.

 

Section 5.08.     
Unconditional Right of Holders to Receive Principal, Premium and Interest, if any, and Additional Amounts. Subject
to ‎Article 12 in relation to subordination of Subordinated
Debt Securities and ‎Section 13.02 in relation to subordination
of the Guarantee, and notwithstanding any other provision in this Subordinated Debt Securities Indenture, the Holder of any Subordinated
Debt Security shall have the right, which is absolute and unconditional, to receive payment of the principal of (and premium,
if any) and interest, if any, and Additional Amounts on such Subordinated Debt Security on the respective Stated Maturities as
expressed in such Subordinated Debt Security (or, in the case of redemption, on the Redemption Date) and to institute suit for
the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

Section 5.09.     
Restoration of Rights and Remedies. If the Trustee or any Holder of any Subordinated Debt Security has instituted
any proceeding to enforce any right or remedy under this Subordinated Debt Securities Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject
to any determination in such proceeding, the Company, the Guarantor, the Trustee and the Holders of Subordinated Debt Securities
shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders of Subordinated Debt Securities shall continue as though no such proceeding had been instituted.

 

    47 

     

    

 

Section 5.10.     
Rights and Remedies Cumulative. Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Subordinated Debt Securities in the last paragraph of ‎Section
3.06 and without prejudice to ‎Section 5.02, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders of Subordinated Debt Securities is intended to be exclusive
of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition
to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not, subject as aforesaid, prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

Section 5.11.     
Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Subordinated Debt Security
to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver
of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee
or to the Holders of Subordinated Debt Securities may be exercised from time to time, and as often as may be deemed expedient,
by the Trustee or by the Holders of Subordinated Debt Securities, as the case may be.

 

Section 5.12.     
Control by Holders. The Holders of a majority in aggregate principal amount of the Outstanding Subordinated Debt
Securities of any series shall have the right to direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee hereunder, or exercising any trust or power conferred on the Trustee hereunder with respect to the Subordinated
Debt Securities of such series, provided that

 

(a)            
such direction shall not be in conflict with any rule of law or with this Subordinated Debt Securities Indenture or with
the Subordinated Debt Securities of any series;

 

(b)            
the Trustee shall not determine that the action so directed would be unjustly prejudicial to the Holders of any Subordinated
Debt Securities of any series not taking part in such direction with respect to which the Trustee is acting as the Trustee; and

 

(c)            
the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.

 

Section 5.13.     
Waiver of Past Defaults. The Trustee may without prejudice to its rights in respect of any subsequent Event of Default
from time to time and at any time waive any Event of Default or authorize any proposed Event of Default by the Company or the
Guarantor, provided that in its opinion the interests of the Holders shall not be materially prejudiced thereby and, provided,
further, that the Trustee shall not exercise any powers conferred on it by this clause in contravention of any notice in writing
to the Company, the Guarantor and the Trustee made pursuant to ‎Section
5.02 hereof but so that no such notice shall affect any waiver or authorization previously given or made. The Holders of not less
than a majority in aggregate principal amount of the Outstanding

 

    48 

     

    

 

Subordinated
Debt Securities of any series may on behalf of the Holders of all the Subordinated Debt Securities of such series waive any past
Event of Default hereunder with respect to such series and its consequences, except an Event of Default

 

(a)            
in the payment of the principal of (or premium, if any) or interest, if any, and Additional Amounts on any Subordinated
Debt Security of such series, or

 

(b)            
in respect of a covenant or provision hereof which under ‎Article 9 cannot be modified or amended without the
consent of the Holder of each Outstanding Subordinated Debt Security of such series affected.

 

Upon any
such waiver, such Event of Default shall cease to exist, and any Event of Default with respect to any series arising therefrom
shall be deemed to have been cured and not to have occurred for every purpose of this Subordinated Debt Securities Indenture,
but no such waiver shall extend to any subsequent or other Event of Default or impair any right consequent thereon.

 

Section 5.14.     
Undertaking for Costs. All parties to this Subordinated Debt Securities Indenture agree, and each Holder of any
Subordinated Debt Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Subordinated Debt Securities Indenture, or in any suit against
the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant to such suit of an undertaking
to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any
suit instituted by any Holder or group of Holders holding in the aggregate more than 10% in principal amount of the Outstanding
Subordinated Debt Securities of any series, or to any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest, if any, on any Subordinated Debt Security on or after the respective Stated Maturities
expressed in such Subordinated Debt Security (or, in the case of redemption, on or after the Redemption Date).

 

Article
6

The Trustee

 

Section 6.01.     
Certain Duties and Responsibilities. (a) Except during the continuance of an Event of Default,

 

(i)           
the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Subordinated Debt
Securities Indenture, and no implied covenants or obligations shall be read into this Subordinated Debt Securities Indenture against
the Trustee; and

 

(ii)          
in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the

 

    49 

     

    

 

opinions
expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Subordinated
Debt Securities Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Subordinated Debt Securities Indenture (but need not confirm or investigate the accuracy of
mathematical calculations or other facts, statements, opinions or conclusions stated therein).

 

(b)            
In case an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested
in it by this Subordinated Debt Securities Indenture, and use the same degree of care and skill in their exercise, as a prudent
person would exercise or use under the circumstances in the conduct of his or her own affairs.

 

(c)            
No provision of this Subordinated Debt Securities Indenture shall be construed to relieve the Trustee from liability for
its own negligent action, its own negligent failure to act, or its own willful misconduct, except that

 

(i)           
this paragraph (c) shall not be construed to limit the effect of paragraphs (a) or (d) of this Section;

 

(ii)          
the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall
be proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(iii)         
the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders of a majority in principal amount of the Outstanding Subordinated Debt Securities of any series,
determined as provided herein, relating to the time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee, under this Subordinated Debt Securities Indenture with
respect to the Subordinated Debt Securities of such series.

 

(d)            
No provision of this Subordinated Debt Securities Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights
or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

 

(e)            
Whether or not therein expressly so provided, every provision of this Subordinated Debt Securities Indenture relating to
the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this ‎Section
6.01.

 

Section 6.02.     
Spanish Tax Procedures and Obligations of the Trustee. In connection with each payment made on any Payment Date
(as defined in Appendix 1 attached hereto) in respect of the issued Subordinated Debt Securities hereunder, the

 

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Trustee
or Paying Agent shall comply with the tax procedures set forth in Appendix 1 hereto. The Trustee or Paying Agent shall have no
duty or responsibility to comply with other Spanish tax obligations arising out of this Subordinated Debt Securities Indenture.
The Company or the Guarantor shall be responsible for the payment of any and all amounts due under the Subordinated Debt Securities.
Therefore, the Trustee or Paying Agent shall not be liable for any amounts owed to any person due to its failure to properly comply
with the tax procedures referred to in this ‎Section 6.02 and Appendix 1 hereto, except such as may result from the
negligence, willful misconduct or fraud of the Trustee or Paying Agent or any of its agents or employees. The Trustee or Paying
Agent may request and rely conclusively upon any instructions from the Company or the Guarantor in respect of any action necessary
or required to be taken by the Trustee or Paying Agent pursuant to this ‎Section 6.02 and Appendix 1 hereto; provided,
however, in no event shall the Trustee or Paying Agent be required to expend or risk its own funds in the performance of any of
its duties pursuant to this ‎Section 6.02 and Appendix 1 hereto, or be obligated to take any legal or other action
which might in its judgment involve or cause it to incur any expense or liability unless it shall have been furnished with acceptable
indemnification and security.

 

Section
6.03.      Notice of
Defaults. Within 90 days after the occurrence of any Event of Default hereunder with respect to Subordinated Debt
Securities of any series of which a Responsible Officer of the Trustee has received written notice of such Event of Default
the Trustee shall transmit in the manner and to the extent provided in ‎Section
1.06 to Holders of Subordinated Debt Securities of such series notice of such Event of Default hereunder of which  the
Trustee has received written notice, unless such Event of Default shall have been cured or waived; provided, however, that, the
Trustee shall be protected in withholding such notice if it determines in good faith that the withholding of such notice is
in the interest of the Holders of Subordinated Debt Securities of such series.

 

Section 6.04.     
Certain Rights of Trustee. Subject to the provisions of ‎Section
6.01:

 

(a)            
the Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution,
Officer’s Certificate, or any other certificate, statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, coupon or other evidence of indebtedness or other paper or document (whether in its original or
facsimile form) believed by it to be genuine and to have been signed or presented by the proper party or parties;

 

(b)            
any request or direction of the Company or the Guarantor mentioned herein shall be sufficiently evidenced by a Company
Request or Company Order or a Guarantor Request or Guarantor Order, as the case may be and any resolution of the Board of Directors
of the Company or the Guarantor may be sufficiently evidenced by a Board Resolution;

 

(c)            
whenever in the administration of this Subordinated Debt Securities Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence

 

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be
herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s Certificate and/or
an Opinion of Counsel;

 

(d)            
the Trustee may consult with counsel of its own selection and the advice of such counsel or any Opinion of Counsel shall
be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good
faith and in conclusive reliance thereon;

 

(e)             the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Subordinated
Debt Securities Indenture at the request or direction of any of the Holders pursuant to this Subordinated Debt Securities
Indenture, unless such Holders shall have offered to the Trustee reasonable security and/or indemnity satisfactory to it
against the costs, expenses and liabilities which might be incurred by it in compliance with such request or
direction;

 

(f)            
the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, coupon or other evidence
of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation,
it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney; at the sole
reasonable cost and expense of the Company and shall incur no liability or additional liability of any kind by reason of such
inquiry or investigation; provided that the Trustee shall not be entitled to such information which the Company is prevented from
disclosing as a matter of law or contract;

 

(g)           
the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or
through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent
or attorney appointed with due care by it hereunder;

 

(h)           
the Trustee shall not be liable for any action taken, suffered or omitted to be taken by it in good faith and believed
by it to be authorized or within the discretion or rights or powers conferred upon it by this Subordinated Debt Securities Indenture,
unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

 

(i)            
anything in this Subordinated Debt Securities Indenture notwithstanding, in no event shall the Trustee be liable for special,
indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to loss or profit), even
if the Trustee has been advised as to the likelihood of such loss or damage and regardless of whether the claim for loss or damage
is made in negligence or otherwise;

 

(j)            
the Trustee shall not be liable with respect to any Losses arising from action taken or omitted to be taken by it in good
faith in accordance with any instruction or communication received by email from any person reasonably believed by the Trustee
to be authorized by the Company or the Guarantor to send such instruction or

 

    52 

     

    

 

communication,
unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

 

(k)           
the Trustee shall not be deemed to have notice of any Event of Default unless a Responsible Officer of the Trustee has
received written notice of such an Event of Default at the Corporate Trust Office of the Trustee, and such notice references the
Subordinated Debt Securities and/or this Subordinated Debt Securities Indenture;

 

(l)            
the Trustee shall not be liable for any failure or delay in the performance of its obligations hereunder because of circumstances
beyond its control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, strikes,
work stoppages, civil or military disturbances, nuclear or natural catastrophes, fire, riot, embargo, loss or malfunctions of
utilities, communications or computer (software and hardware) services, government action, including any laws, ordinances, regulations,
governmental action or the like which delay, restrict or prohibit the providing of the services contemplated by this Subordinated
Debt Securities Indenture;

 

(m)          
the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right
to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent,
custodian and other Person employed to act hereunder; and

 

(n)           
the Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of
officers authorized at such time to take specified actions pursuant to this Subordinated Debt Securities Indenture, which certificate
may be signed by any person authorized to sign an Officer’s Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded.

 

Section
6.05.      Not Responsible for
Recitals or Issuance of Subordinated Debt Securities. The recitals contained herein and in the Subordinated Debt
Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company and
the Guarantor, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The
Trustee makes no representations as to the validity or sufficiency of this Subordinated Debt Securities Indenture or of
the Subordinated Debt Securities, except that the Trustee represents and warrants that it has duly authorized, executed and
delivered this Subordinated Debt Securities Indenture. Neither the Trustee nor any Authenticating Agent shall be accountable
for the use or application by the Company of Subordinated Debt Securities or the proceeds thereof. The Trustee shall not be
responsible to make any calculation with respect to any matter under this Subordinated Debt Securities Indenture other than
as specifically provided for herein. The Trustee shall have no duty to monitor or investigate the Company’s compliance
with or the breach of, or cause to be performed or observed, any representation, warranty, or covenant, or agreement of any
Person, other than the Trustee, made in this Subordinated Debt Securities Indenture. No provision of this Subordinated Debt
Securities Indenture shall be deemed to impose any duty or obligation on the Trustee to perform any act or acts, receive or
obtain any interest in property or exercise any interest in property, or exercise any right, power, duty or obligation
conferred or imposed on it in any

 

    53 

     

    

 

jurisdiction
in which it shall be illegal, taxation or other consequences that, in the sole determination of the Trustee, are adverse to the
Trustee, or in which the Trustee shall be unqualified or incompetent in accordance with applicable law, to perform any such act
or acts, to receive or obtain any such interest in property or to exercise any such right, power, duty or obligation.

 

Section 6.06.     
May Hold Subordinated Debt Securities. The Trustee, any Authenticating Agent, any Paying Agent, any Subordinated
Debt Security Registrar and any Calculation Agent or any other agent of the Company or the Guarantor, in its individual or any
other capacity, may become the owner or pledgee of Subordinated Debt Securities and, subject to ‎6.09
and ‎6.14, may otherwise deal with the Company or the Guarantor
with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Subordinated Debt Security Registrar,
Calculation Agent or such other agent.

 

Section 6.07.     
Money Held in Trust. Money held by the Trustee in trust hereunder need not be segregated from other funds except
to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except
as otherwise agreed with the Company.

 

Section 6.08.     
Compensation and Reimbursement.

 

Each of the
Company and the Guarantor each agree jointly and severally

 

(a)            
to pay to the Trustee from time to time compensation for all services rendered by it hereunder as agreed upon in writing
by the Company from time to time (which compensation shall not be limited by any provision of law in regard to the compensation
of a trustee of an express trust);

 

(b)            
except as otherwise expressly provided herein, to reimburse the Trustee for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision of this Subordinated Debt Securities Indenture (including
the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement
or advance as shall be determined by a court of competent jurisdiction to have been caused by its own negligence or bad faith;
and

 

(c)            
to indemnify the Trustee (which for purposes of this subparagraph Section 6.08(c) shall be deemed to include its directors,
officers, employees and agents) or any predecessor Trustee for, and to hold it harmless against, any and all loss, liability,
claim, damage or expense (including legal fees and expenses) and taxes (other than taxes based upon, measured by or determined
by the income of the Trustee) incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance
or administration of the trust or trusts hereunder including the costs and expenses of defending itself against any claim (whether
asserted by the Company, or any Holder or any other Person) or liability in connection with the exercise or performance of any
of its

 

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powers
or duties hereunder, or in connection enforcing the provisions of this Section, but excluding any tax liabilities of the Trustee
in respect of its net profits.

 

In
addition to, but without prejudice to its other rights under this Subordinated Debt Securities Indenture, when the Trustee
incurs expenses or renders services in connection with an Event of Default specified in Section 5.01, the fees, costs and
expenses (including the charges and expenses of its counsel) and the compensation for the services are intended to constitute
expenses of administration under any applicable federal or state bankruptcy, insolvency or other similar law.

 

The Trustee
shall notify the Company and the Guarantor in writing of the commencement of any action or claim in respect of which indemnification
may be sought promptly after a Responsible Officer of the Trustee becomes aware of such commencement (provided that the failure
to make such notification shall not affect the Trustee’s rights hereunder) and the Company shall be entitled to participate
in, and to the extent it shall wish, to assume the defense thereof, including the employment of counsel reasonably satisfactory
to the Trustee. If the Company and the Trustee are being represented by the same counsel and the Company has assumed the defense
of the claim, the Trustee shall not be authorized to settle a claim without the written consent of the Company, which consent
shall not be unreasonably withheld.

 

As security
for the performance of the obligations of the Company and the Guarantor under this Section, the Trustee shall have a senior lien
to which the Subordinated Debt Securities are hereby made subordinate, upon all property and funds held or collected by the Trustee
as such, except funds held in trust for the payment of principal of (or premium, if any) or interest, if any, on the Subordinated
Debt Securities.

 

“Trustee”
for purposes of this Section shall include any predecessor Trustee; provided, however, that the negligence, willful misconduct
or bad faith of any Trustee hereunder shall not affect the rights of any other Trustee hereunder.

 

The Trustee's
rights to payment of its fees, reimbursement and indemnity under, and its lien provided for in, this ‎Section
6.08 shall survive the payment in full of the Subordinated Debt Securities, the satisfaction and discharge of this Subordinated
Debt Securities Indenture, the resignation or removal of the Trustee, the termination for any reason of this Subordinated Debt
Securities Indenture and the exercise of the Spanish Bail-in Power and the other relevant resolution tools by the relevant resolution
authority.

 

Section 6.09.     
Disqualification; Conflicting Interests. If the Trustee has or shall acquire a conflicting interest within the meaning
of Section 310(b) of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in
the manner provided by, and subject to the provisions of, Section 310(b) of the Trust Indenture Act and this Subordinated Debt
Securities Indenture.

 

Section 6.10.     
Corporate Trustee Required; Eligibility. There shall at all times be a Trustee hereunder with respect to each series
which shall be a Person organized and doing business under the laws of the United States, any State thereof or the District of

 

    55 

     

    

 

Columbia,
authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by Federal or State or District of Columbia authority and having a corporate trust office
or agency in the Borough of Manhattan, The City of New York, New York. If such Person publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section,
the combined capital and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions
of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this ‎Article
6.

 

Section 6.11.     
Resignation and Removal; Appointment of Successor. (a) No resignation or removal of the Trustee and no appointment
of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee
in accordance with the applicable requirements of ‎Section 6.12.

 

(b)            
The Trustee may resign at any time with respect to the Subordinated Debt Securities of one or more series by giving written
notice thereof to the Company and the Guarantor. If the instrument of acceptance by a successor Trustee required by ‎Section
6.12 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Subordinated
Debt Securities of such series.

 

(c)            
The Trustee may be removed at any time with respect to the Subordinated Debt Securities of any series by Act of the Holders
of a majority in principal amount of the Outstanding Subordinated Debt Securities of such series delivered to the Trustee and
to the Company and the Guarantor. If the instrument of acceptance by a successor Trustee required by ‎Section 6.12
shall not have been delivered to the Trustee within 30 days after the giving of such notice of removal, the Trustee may petition
at the expense of the Company any court of competent jurisdiction for the appointment of a successor Trustee with respect to the
Subordinated Debt Securities of such series.

 

(d)            
If at any time:

 

(i)           
the Trustee shall fail to comply with ‎Section 6.09 after written request therefor by the Company or
the Guarantor or by any Holder who has been a bona fide Holder of a Subordinated Debt Security of the series as to which the Trustee
has a conflicting interest for at least six months, or

 

(ii)           
the Trustee shall cease to be eligible under ‎Section 6.10 and shall fail to resign after written request
therefor by the Company or the Guarantor or by any Holder who has been a bona fide Holder of a Subordinated Debt Security for
at least six months, or

 

    56 

     

    

 

(iii)           
the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee
or of its property shall be appointed or any public officer shall take charge, or control of the Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation, or

 

(iv)           
the Trustee shall fail to perform its obligations to the Company or the Guarantor under the Subordinated Debt Securities
Indenture in any material respect,

 

then,
in any such case, (A) the Company or the Guarantor by a Board Resolution may remove the Trustee with respect to any or all series
of Subordinated Debt Securities or (B) subject to ‎Section
5.14 (and except in the case of subparagraph 6.11(d)(iv) above), any Holder who has been a bona fide Holder of a Subordinated
Debt Security for at least six months (and, in the case of ‎Section
6.11(d)(i) above, who is a Holder of a Subordinated Debt Security of the series as to which the Trustee has a conflicting interest)
may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the
Trustee with respect to all Subordinated Debt Securities and the appointment of a successor Trustee or Trustees.

 

(e)            
If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee
for any cause, with respect to the Subordinated Debt Securities of one or more series, the Company and the Guarantor, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Subordinated Debt Securities of such series
(it being understood that any successor Trustee may be appointed with respect to the Subordinated Debt Securities of one or more
or all of such series and at any time there shall be only one Trustee with respect to the Subordinated Debt Securities of any
particular series), and shall comply with the applicable requirements of ‎Section 6.12. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Subordinated
Debt Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Subordinated
Debt Securities of such series delivered to the Company, the Guarantor and the retiring Trustee, the successor Trustee so appointed
shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of ‎Section
6.12, become the successor Trustee with respect to the Subordinated Debt Securities of such series and to that extent supersede
the successor Trustee appointed by the Company and the Guarantor. If no successor Trustee with respect to the Subordinated Debt
Securities of any series shall have been so appointed by the Company or the Holders of Subordinated Debt Securities of such series
and accepted appointment in the manner hereinafter required by ‎Section 6.12, any Holder who has been a bona fide Holder
of a Subordinated Debt Security of such series for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Subordinated Debt
Securities of such series.

 

(f)            
The Company shall give notice to Holders of each resignation and each removal of the Trustee with respect to the Subordinated
Debt Securities of any series and each appointment of a successor Trustee with respect to the Subordinated Debt Securities

 

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of
any series to the Holders in the manner and to the extent provided in ‎Section 1.06. Each notice shall include the
name of the successor Trustee with respect to the Subordinated Debt Securities of such series and the address of its Corporate
Trust Office.

 

Section 6.12.     
Acceptance of Appointment by Successor. (a) In case of the appointment hereunder of a successor Trustee with respect
to all Subordinated Debt Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the Company,
the Guarantor and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of
the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on request of the Company, the Guarantor or
the successor Trustee, such retiring Trustee shall, upon payment of its charges and subject to its lien provided for in Section
6.08, execute and deliver an instrument transferring to such successor Trustee, all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee
hereunder.

 

(b)            
In case of the appointment hereunder of a successor Trustee with respect to the Subordinated Debt Securities of one or
more (but not all) series, the Company, the Guarantor, the retiring Trustee and each successor Trustee with respect to the Subordinated
Debt Securities of such series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall
accept such appointment and which (i) shall contain such provisions as shall be necessary or desirable to transfer and confirm
to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the
Subordinated Debt Securities of such series to which the appointment of such successor Trustee relates, (ii) if the retiring Trustee
is not retiring with respect to all Subordinated Debt Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Subordinated Debt
Securities of such series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee,
and (iii) shall add to or change any of the provisions of this Subordinated Debt Securities Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance,
shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Subordinated Debt
Securities of such series to which the appointment of such successor Trustee relates; but, on request of the Company, the Guarantor
or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder with respect to the Subordinated Debt Securities of such series to which the

 

    58 

     

    

 

appointment
of such successor Trustee relates, subject to the lien provided for in Section 6.08.

 

(c)            
Upon request of any such successor Trustee, the Company and the Guarantor shall execute any and all instruments for more
fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph
(a) or (b) of this ‎Section 6.12, as the case may be.

 

(d)            
No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be
qualified and eligible under this ‎Article 6.

 

Section 6.13.     
Merger, Conversion, Consolidation or Succession to Business. Any Person into which the Trustee may be merged or
converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any Person succeeding to all or substantially all the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder, provided such Person shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Subordinated
Debt Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion
or consolidation to such authenticating Trustee may adopt such authentication and deliver the Subordinated Debt Securities so
authenticated with the same effect as if such successor Trustee had itself authenticated such Subordinated Debt Securities.

 

Section 6.14.     
Preferential Collection of Claims. If and when the Trustee shall be or become a creditor of the Company or the Guarantor
(or any other obligor upon the Subordinated Debt Securities of a series), the Trustee shall be subject to the provisions of the
Trust Indenture Act regarding the collection of claims against the Company or the Guarantor (or any such other obligor).

 

Section 6.15.     
Appointment of Authenticating Agent. The Trustee may at any time appoint an Authenticating Agent or Agents with
respect to one or more series of Subordinated Debt Securities which shall be authorized to act on behalf of the Trustee to authenticate
Subordinated Debt Securities of such series upon original issue, or issued upon exchange, registration of transfer or partial
redemption thereof or in lieu of destroyed, lost or stolen Subordinated Debt Securities, and Subordinated Debt Securities so authenticated
shall be entitled to the benefits of this Subordinated Debt Securities Indenture and shall be valid and obligatory for all purposes
as if authenticated by the Trustee hereunder. Wherever reference is made in this Subordinated Debt Securities Indenture to the
authentication and delivery of Subordinated Debt Securities by the Trustee or the Trustee’s certificate of authentication,
such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent and
a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall
be acceptable to the Company and the Guarantor and shall at all times be a corporation or national banking association organized
and doing business under the laws of the United States, any State thereof or the District of Columbia, authorized under such laws
to act as Authenticating Agent, having a combined

 

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capital
and surplus of not less than $50,000,000 and subject to supervision or examination by Federal or State or District of Columbia
authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating
Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this ‎Section
6.15, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section.

 

Any Person
into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any Person resulting from
any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any Person succeeding to the corporate
agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided such Person
shall be otherwise eligible under this ‎Section 6.15, without
the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

 

An Authenticating
Agent may resign at any time by giving written notice thereof to the Trustee, the Company and the Guarantor. The Trustee may at
any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent, the Company
and the Guarantor. Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this ‎Section
6.15, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and the Guarantor and
shall give notice to the Holders of Subordinated Debt Securities in the manner and to the extent provided in ‎Section
1.06. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights,
powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor
Authenticating Agent shall be appointed unless eligible under the provisions of this ‎Section
6.15.

 

The Company
and the Guarantor agree to pay to each Authenticating Agent from time to time reasonable compensation for its services under this
‎Section 6.15.

 

If an appointment
with respect to one or more series is made pursuant to this Section, the Subordinated Debt Securities of such series may have
endorsed thereon, in lieu of the Trustee’s certificate of authentication, an alternate certificate of authentication in
substantively the following form:

 

This is one
of the Subordinated Debt Securities referred to in the within-mentioned Subordinated Debt Securities Indenture.

 

	THE BANK OF NEW YORK MELLON, as Trustee
	 
	 
	By:	 
	 	as Authenticating Agent

	By:	 
	 	Authorized Signatory

    60 

     

    
 

Section
6.16.  Appointment of Additional Trustees. The Company and the Guarantor may appoint a Trustee for a particular
series of Subordinated Debt Securities other than the Trustee named in the first paragraph of this Subordinated Debt
Securities Indenture by executing and delivering an indenture supplemental hereto where such Trustee accepts such appointment
as contemplated by ‎Section 3.01(w) and Section 9.01(k)
(it being understood that at any time there shall be only one Trustee with respect to the Subordinated Debt Securities of any
particular series); provided that, at the time of such acceptance, such Trustee shall be qualified and eligible under this
Article 6. Upon such acceptance, such Trustee shall be vested with all the rights, powers, trusts and duties of a
Trustee under this Subordinated Debt Securities Indenture with respect to the Subordinated Debt Securities of such
series.

 

Section 6.17.  
Tax Withholding. Any amounts to be paid by the Company on the Subordinated Debt Securities shall be paid net of
any deduction or withholding imposed or required pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986,
as amended (the “Code”), any current or future regulations or official interpretations thereof, any agreement
entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant
to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code (or any law
implementing such an intergovernmental agreement) (a “FATCA Withholding Tax”), and the Company shall not be
required to pay Additional Amounts on account of any FATCA Withholding Tax.

 

Any Paying
Agent shall be entitled to make a deduction or withholding from any payment which it makes under the Subordinated Debt Securities
and the Subordinated Debt Securities Indenture for or on account of (i) any present or future taxes, duties or charges if and
to the extent so required by any applicable law and (ii) any FATCA Withholding Tax (together, “Applicable Law”).
In either case, the Paying Agent shall make any payment after a deduction or withholding has been made pursuant to Applicable
Law and shall report to the relevant authorities the amount so deducted or withheld. In all cases, the Paying Agent shall have
no obligation to gross up any payment made subject to any deduction or withholding pursuant to Applicable Law. In addition, amounts
deducted or withheld by the Paying Agent as described in this paragraph will be treated as paid to the Holder of the Subordinated
Debt Securities, and the Company will not pay Additional Amounts in respect of such deduction or withholding, except to the extent
required under ‎Section 10.04.

 

 

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Article
7

Holders Lists and Reports by Trustee and Company

 

Section 7.01.     
The Company or the Guarantor to Furnish Trustee Names and Addresses of Holders. The Company (or the Guarantor, if
applicable) with respect to any series of Subordinated Debt Securities, will furnish or cause to be furnished to the Trustee;

 

(a)            
not more than 15 days after each Regular Record Date (or after each of the dates to be specified for such purpose for non-interest
bearing Subordinated Debt Securities and Subordinated Debt Securities on which interest is paid less frequently than quarterly
as contemplated by ‎Section 3.01), a list, in such form as the Trustee may reasonably require, of the names and addresses
of the Holders of Subordinated Debt Securities as of such Regular Record Date or such specified date, and

 

(b)            
at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such
request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished.

 

The Company
need not furnish or cause to be furnished to the Trustee pursuant to this ‎Section
7.01 the names and addresses of Holders of Subordinated Debt Securities so long as the Trustee acts as Subordinated Debt Security
Registrar with respect to such series of Subordinated Debt Securities.

 

Section 7.02.     
Preservation of Information; Communication to Holders.

 

(a)            
The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders (i) contained
in the most recent list furnished to the Trustee as provided in ‎Section 7.01 and (ii) received by the Trustee in its
capacity as Paying Agent or Subordinated Debt Security Registrar (if so acting). The Trustee may dispose of any list furnished
to it as provided in ‎Section 7.01 upon receipt of a new list so furnished.

 

(b)            
The rights of the Holders of Subordinated Debt Securities of any series to communicate with other Holders with respect
to their rights under this Subordinated Debt Securities Indenture or under the Subordinated Debt Securities, and the corresponding
rights and privileges of the Trustee, shall be as provided by the Trust Indenture Act.

 

(c)            
Every Holder, by receiving and holding a Subordinated Debt Security, agrees with the Company, the Guarantor and the Trustee
that neither the Company, the Guarantor nor the Trustee nor any agent of any of them shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the Holders in accordance with ‎Section 7.02(b)
or otherwise made pursuant to the Trust Indenture Act.

 

Section 7.03.     
Reports by Trustee.

 

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(a)            
On or before May 15 in each year following the date hereof, so long as any Subordinated Debt Securities are Outstanding
hereunder, the Trustee shall transmit to Holders as provided in the Trust Indenture Act a brief report dated as of a date required
by and in compliance with the Trust Indenture Act.

 

(b)            
A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each securities
exchange upon which the Trustee has been notified that the Subordinated Debt Securities are listed, with the Commission and with
the Company and the Guarantor. The Company will notify the Trustee when Subordinated Debt Securities are listed on any securities
exchange.

 

Section 7.04.     
Reports by the Company and the Guarantor. The Company and the Guarantor shall:

 

(a)            
file with the Trustee, within 15 days after the Company or the Guarantor, as the case may be, is required to file the same
with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions
of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Company or the Guarantor
may be required to file with the Commission pursuant to ‎Article 13 or Section 15(d) of the Exchange Act; or, if the
Company or the Guarantor is not required to file information, documents or reports pursuant to either of such Sections, then it
shall file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission,
such of the supplementary and periodic information, documents and reports which may be required pursuant to ‎Article
13 of the Exchange Act in respect of a security listed and registered on a national securities exchange as may be prescribed from
time to time in such rules and regulations. Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein
or determinable from information contained therein, including the Company’s and the Guarantor’s, as applicable, compliance
with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate);

 

(b)            
file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the
Commission, such additional information, documents and reports with respect to compliance by the Company and the Guarantor, as
applicable, with the conditions and covenants of this Subordinated Debt Securities Indenture as may be required from time to time
by such rules and regulations. Delivery of such reports, information and documents to the Trustee is for informational purposes
only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company’s and the Guarantor’s, as applicable, compliance
with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate);
and

 

(c)            
transmit to Holders, in the manner and to the extent required by the Trust Indenture Act, within 30 days after the filing
thereof with the Trustee, such summaries of

 

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any
information, documents and reports required to be filed by the Company pursuant to paragraphs (a) and (b) of this Section as may
be required by rules and regulations prescribed from time to time by the Commission.

 

(d)            
The Trustee may conclusively presume that the Company is not subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act or otherwise is complying with such reporting requirements unless and until a Responsible Officer of the Trustee
receives at the Corporate Trust Office of the Trustee a written notification from the Company stating otherwise. The Trustee shall
have no duty to examine any information, reports or other documents filed by the Guarantor or the Company pursuant to Section
13 or 15(d) of the Exchange Act, and need make no determination as to whether they comply with the requirements of this Section
7.04, its sole duty in respect thereof being to place them in its files and make them available for inspection by any Holder upon
reasonable request during normal business hours.

 

Article
8

Consolidation, Merger, Conveyance or Transfer

 

Section 8.01.     
Company or Guarantor May Consolidate, Etc., Only on Certain Terms. The Company or the Guarantor may, without the
consent of Holders of any Subordinated Debt Securities of any series Outstanding under this Subordinated Debt Securities Indenture,
consolidate or amalgamate with or merge into any other corporation or convey or transfer or lease its properties and assets substantially
as an entirety to any Person, provided that:

 

(a)            
the corporation formed by or into which the Company or the Guarantor is consolidated, amalgamated or merged or the Person
which acquires by conveyance or transfer the properties and assets of the Company or the Guarantor substantially as an entirety
(i) shall be a company organized and existing under the laws of any part of the European Union, and (ii) shall expressly assume,
by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, in the case of
the Company, the due and punctual payment of the principal of (and premium, if any) and interest and Additional Amounts, if any,
on all the Subordinated Debt Securities in accordance with the provisions of such Subordinated Debt Securities and this Subordinated
Debt Securities Indenture and, in the case of the Guarantor, the guarantee provision in Article 13, and the performance of every
covenant of this Subordinated Debt Securities Indenture on the part of the Company or the Guarantor, as the case may be, to be
performed or observed;

 

(b)            
immediately after giving effect to such consolidation, amalgamation, merger, conveyance or transfer, no Event of Default
and no event which, after notice or lapse of time or both, would become an Event of Default, shall have occurred and be continuing;

 

(c)            
the Company or the Guarantor, as the case may be, shall have delivered to the Trustee an Officer’s Certificate and
an Opinion of Counsel, each stating that such consolidation, amalgamation, merger, conveyance or transfer and such supplemental

 

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indenture
comply with this Article and that all conditions precedent herein provided for relating to such transaction have been complied
with; and

 

(d)            
if the successor entity is not the Guarantor, the Guarantor shall, by amendment to the Subordinated Debt Securities Indenture,
unconditionally guarantee all of the obligations of such successor entity under the Subordinated Debt Securities of such series
and the Subordinated Debt Securities Indenture as so modified by such amendment.

 

Section 8.02.     
Successor Corporation Substituted. In the event of any merger, consolidation, sale, conveyance permitted by Section
8.01 and Section 5.01 above, Additional Amounts under the Subordinated Securities will thereafter be payable in respect of taxes
imposed by the acquiring corporation’s, or the resulting corporation’s, jurisdiction of incorporation or tax residence
(subject to exceptions equivalent to those that apply to the obligation to pay Additional Amounts pursuant to Section 10.04 or
the Guarantee, as the case may be, in respect of taxes imposed by the laws of the Kingdom of Spain) rather than taxes imposed
by the Kingdom of Spain. Additional Amounts with respect to payments of interest or principal due prior to the date of such merger,
consolidation, sale, conveyance or lease will be payable only in respect of taxes imposed by the Kingdom of Spain. The acquiring
or resulting corporation, as the case may be, will also be entitled to redeem the Subordinated Debt Securities in the circumstances
described in Section 11.08 with respect to any change or amendment to, or change in the application or official interpretation
of the laws or regulations of such jurisdiction, which change or amendment must occur subsequent to the date of any merger, consolidation,
sale, conveyance or lease permitted by Section 8.01 and Section 5.01 if the successor entity is not incorporated or tax resident
in the Kingdom of Spain. In the event of assumption of the Company’s or the Guarantor’s obligations in connection
with a merger, consolidation, sale or conveyance of substantially all of its assets, the Company or the Guarantor shall be released
from all obligations and covenants under this Subordinated Debt Securities Indenture or the Subordinated Debt Securities or the
Guarantee, as the case may be, and the successor corporation formed by such consolidation or amalgamation or into which the Company
or the Guarantor is merged or to which such conveyance or transfer is made shall succeed to and be substituted for, and may exercise
every right and power of, the Company or the Guarantor, as the case may be, under this Subordinated Debt Securities Indenture
with the same effect as if such successor corporation had been named as the Company or the Guarantor.

 

Section 8.03.     
Assumption of Obligations. Subject to the prior consent of the European Central Bank, if required, the Guarantor
or any wholly-owned subsidiary of the Guarantor may assume the obligations of the Company (a “successor entity”) under
the Subordinated Debt Securities of any series without the consent of the Holders of such series, provided that:

 

(a)            the
successor entity shall expressly assume such obligations by an amendment to the Subordinated Debt Securities Indenture, executed
by the Company and such successor entity, if applicable, and delivered to the Trustee, in form satisfactory to the Trustee, and,
if the successor entity is not the Guarantor, the Guarantor shall, by

 

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amendment
to the Subordinated Debt Securities Indenture, unconditionally guarantee (such guarantee shall be given on a basis
consistent with  Article Twelve hereof) all of the obligations of such successor entity under the Subordinated Debt
Securities of such series and the Subordinated Debt Securities Indenture as so modified by such amendment;

 

(b)            immediately
after giving effect to such assumption of obligations, no Event of Default and no event which, after notice or lapse of time or
both, would become an Event of Default, shall have occurred and be continuing; and

 

(c)            the
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such assumption
complies with this Article and that all conditions precedent herein provided for relating to such assumption have been complied
with.

 

Upon any
such assumption, the successor entity shall succeed to, and be substituted for, and may exercise every right and power of, the
Company under this Subordinated Debt Securities Indenture with respect to any such Subordinated Debt Securities with the same
effect as if such successor entity had been named as the Company in this Subordinated Debt Securities Indenture, and the Company
or any legal and valid successor corporation which shall theretofore have become such in the manner prescribed herein, shall be
released from all liability as obligor upon any such Subordinated Debt Securities except as described in the following paragraph.

 

Any Subordinated
Debt Securities so assumed, except if assumed by the Guarantor, will have the benefit of the Guarantee. In the event of any assumption,
Additional Amounts under the Subordinated Debt Securities will be payable in respect of taxes imposed by the assuming corporation’s
jurisdiction of incorporation or tax residence (subject to exceptions equivalent to those that apply to the obligation to pay
Additional Amounts pursuant to ‎Section 10.04 or the Guarantee,
as the case may be, in respect of taxes imposed by the laws of the Kingdom of Spain) on payments of interest or principal made
on or subsequent to the date of such assumption. Additional Amounts with respect to payments of interest or principal due prior
to the date of such assumption will be payable only in respect of taxes imposed by the Kingdom of Spain. The Guarantor or the
wholly-owned subsidiary thereof that assumes the obligations of the Company in such cases will also be entitled to redeem the
Securities in the circumstances described in ‎Section 11.08
with respect to any change or amendment to, or change in the application or official interpretation of the laws or regulations
of such jurisdiction, which change or amendment must occur subsequent to the date of any such assumption if the assuming entity
is not incorporated or tax resident in the Kingdom of Spain. In the event of any such assumption, all obligations of the Company
under the Securities shall immediately be discharged.

 

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Article
9

Supplemental Indentures

 

Section 9.01.     
Supplemental Indentures without Consent of Holders. Without the consent of any Holders, the Company and the Guarantor,
when authorized by a Board Resolution of the Company and Guarantor, as the case may be, and the Trustee, at any time and from
time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following
purposes:

 

(a)            
to evidence the succession of another corporation to the Company or the Guarantor and the assumption by any such successor
of the covenants of the Company or the Guarantor herein and in the Subordinated Debt Securities;

 

(b)            
to add to the covenants of the Company or the Guarantor for the benefit of the Holders of all or any series of Subordinated
Debt Securities (and, if such covenants are to be for the benefit of fewer than all series of Subordinated Debt Securities, stating
that such covenants are expressly being included solely for the benefit of such series) or to surrender any right or power herein
conferred upon the Company or the Guarantor;

 

(c)            
to add any additional Events of Default;

 

(d)            
to change or eliminate any of the provisions of the Subordinated Debt Securities Indenture, or any supplemental indenture,
provided that any such change or elimination shall become effective only when there is no outstanding Subordinated Debt Security
of any series created prior to the execution of such supplemental indenture that is entitled to the benefit of such provision
or as to which such supplemental indenture would apply;

 

(e)            
to secure the Subordinated Debt Securities;

 

(f)            
to establish the form or terms of Subordinated Debt Securities of any series as permitted by ‎Section 2.01 or
‎3.01;

 

(g)            
to change any Place of Payment, so long as the Place of Payment as required by ‎Section 3.01 is maintained in
The City of New York;

 

(h)            
to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other
provision herein or in any supplemental indenture;

 

(i)            
to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Subordinated
Debt Securities of one or more series and to add to or change any of the provisions of this Subordinated Debt Securities Indenture
as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant
to the requirements of ‎Section 6.12(b);

 

(j)            
to change or eliminate any provision of this Subordinated Debt Securities Indenture as permitted by ‎Section
1.08;

 

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(k)            
to name a Trustee for a particular series of Subordinated Debt Securities other than the Trustee named in the first paragraph
of this Subordinated Debt Securities Indenture and to provide for the appropriate changes related to such appointment for a particular
series of Subordinated Debt Securities; or

 

(l)            
with respect to any Subordinated Debt Security (including a Global Security) issued on or after the date hereof, to amend
any such Subordinated Debt Security to conform to the description of the terms of such Subordinated Debt Security in the prospectus,
prospectus supplement, product supplement, pricing supplement or any other similar offering document related to the offering of
such Subordinated Debt Security.

 

Section 9.02.     
Supplemental Indentures with Consent of Holders. With the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Subordinated Debt Securities of each series affected by such supplemental Subordinated
Debt Securities Indenture (voting as a class), by Act of said Holders delivered to the Company, the Guarantor and the Trustee,
the Company and the Guarantor, when authorized by a Board Resolution and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Subordinated Debt Securities Indenture or of modifying in any manner the rights of the Holders of Subordinated Debt Securities
of such series under this Subordinated Debt Securities Indenture; provided, however, that no such supplemental indenture may,
without the consent of the Holder of each Outstanding Subordinated Debt Security affected thereby,

 

(a)            
change the Stated Maturity, if any, of any principal amount or any interest amounts in respect of any such Subordinated
Debt Security, reduce the principal amount thereof or the rate of interest and Additional Amounts, if any, thereon, or any premium
payable upon the redemption thereof, or reduce the amount of principal of an Original Issue Discount Security that would be due
and payable upon an acceleration of the Maturity thereof pursuant to ‎Section 5.02, or change the obligation of the
Company (or its successor) to pay Additional Amounts pursuant to ‎Section 10.04 (except as contemplated by ‎Section
8.01(a) and permitted by ‎Section 9.01(a)) on the Subordinated Debt Securities, or the currency of payment of the principal
amount of, premium, if any, or interest on, any such Subordinated Debt Security, or change the Place of Payment, or impair the
right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof or the date any such payment
is otherwise due and payable (or, in the case of redemption, on or after the Redemption Date); or

 

(b)            
reduce the percentage in aggregate principal amount of the Outstanding Subordinated Debt Securities of any series, the
consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any
waiver (of compliance with certain provisions of this Subordinated Debt Securities Indenture or of certain defaults hereunder
and their consequences) provided for in this Subordinated Debt Securities Indenture; or

 

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(c)             modify
the subordination provisions of Article 12 or Section 13.02; or

 

(d)            modify any of the provisions of this Section 9.02
or ‎Section 5.13 except to increase any such percentage or to provide that certain other provisions of this
Subordinated Debt Securities Indenture cannot be modified or waived without the consent of the Holder of each Outstanding
Subordinated Debt Security affected thereby; provided, however, that this clause shall not be deemed to require the consent
of any Holder with respect to changes in the references to the “Trustee” and concomitant changes in this
Section, or the deletion of this proviso, in accordance with the requirements of Sections 6.12(b) and 9.01(j); or

 

(e)           
change in any manner adverse to the interests of the Holders of any Subordinated Debt Securities, the subordination provisions
of the Subordinated Debt Securities or the terms and conditions of the obligations of the Company or the Guarantor in respect
of the due and punctual payment of any amounts due and payable on the Subordinated Debt Securities.

 

It shall
not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof.

 

A supplemental
indenture which changes or eliminates any covenant or other provision of this Subordinated Debt Securities Indenture which has
expressly been included solely for the benefit of one or more particular series of Subordinated Debt Securities, or which modifies
the rights of the Holders of Subordinated Debt Securities of such series with respect to such covenant or other provision, shall
be deemed not to affect the rights under this Subordinated Debt Securities Indenture of the Holders of Subordinated Debt Securities
of any other series.

 

Section 9.03.     
Execution of Supplemental Indentures. In executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts created by this Subordinated Debt Securities Indenture,
the Trustee shall be entitled to receive, and (subject to ‎Section 6.01) shall be fully protected in relying upon,
an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Subordinated
Debt Securities Indenture and that such supplemental indenture constitutes a legal, valid and binding obligation of the Company
and Guarantor subject to customary exceptions. The Trustee may, but shall not be obliged to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under this Subordinated Debt Securities Indenture
or otherwise.

 

Section 9.04.     
Effect of Supplemental Indentures. Upon the execution of any supplemental indenture under this Article, this Subordinated
Debt Securities Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this
Subordinated Debt Securities Indenture for all purposes; and every Holder of Subordinated Debt Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby, except as otherwise expressed therein.

 

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Section 9.05.     
Conformity with Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall conform
to the requirements of the Trust Indenture Act as then in effect.

 

Section 9.06.     
Reference in Subordinated Debt Securities to Supplemental Indentures. Subordinated Debt Securities of any series
authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required
by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture.
If the Company shall so determine, new Subordinated Debt Securities of any series so modified as to conform, in the opinion of
the Trustee, the Company and the Guarantor, to any such supplemental indenture may be prepared and executed by the Company, the
Guarantees endorsed thereon may be executed by the Guarantor and such Subordinated Debt Securities may be authenticated and delivered
by the Trustee in exchange for Outstanding Subordinated Debt Securities of such series.

 

Article
10

Covenants

 

Section
10.01.  Payment of Principal, Premium,
and Interest. The Company covenants and agrees for the benefit of each series of Subordinated Debt Securities that it
will (subject to ‎Section 3.07 and to the subordination provisions in Article 12 and Section 13.02) duly and punctually
pay to the Holders the principal of (and premium, if any) and interest, if any, and Additional Amounts on the
Subordinated Debt Securities of that series in accordance with the terms of the Subordinated Debt Securities and this
Subordinated Debt Securities Indenture. Except as otherwise specified, as contemplated by ‎Section 3.01 hereof,
the Trustee shall act as Paying Agent with respect to any series of Subordinated Debt Securities.

 

Section 10.02. 
Maintenance of Office or Agency. The Company and the Guarantor will maintain in each Place of Payment for any series
of Subordinated Debt Securities an office or agency where Subordinated Debt Securities of that series may be presented or surrendered
for payment, where Subordinated Debt Securities of that series may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company or the Guarantor in respect of the Subordinated Debt Securities of that series
and this Subordinated Debt Securities Indenture may be served; provided, however, that at the option of the Company in the case
of definitive Subordinated Debt Securities of such series, payment of any interest thereon may be made by check mailed to the
address of the Person entitled herein as such address shall appear in the Subordinated Debt Security Register. With respect to
the Subordinated Debt Securities of any series, such office or agency in each Place of Payment shall be specified as contemplated
by ‎Section 3.01, and if not so specified, initially shall be 225 Liberty Street, New York, New York, 10286. Unless
otherwise specified pursuant to ‎Section 3.01, the Company and the Guarantor will maintain in the Borough of Manhattan,
The City of New York, an office or agency where notices and demands to or upon the Company or the Guarantor in respect of Subordinated
Debt Securities of any series and this Subordinated Debt Securities Indenture may be served. The Company and the

 

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Guarantor
will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at
any time the Company and the Guarantor shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee. The Company and the Guarantor hereby appoints the Trustee as its agent to receive all presentations, surrenders,
notices and demands.

 

The Company
and the Guarantor may also from time to time designate one or more other offices or agencies (in or outside the Borough of Manhattan,
The City of New York) where the Subordinated Debt Securities of one or more series may be presented or surrendered for any or
all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company and the Guarantor of any obligation to maintain an office or agency in each Place of Payment
(except as otherwise indicated in this Section) for Subordinated Debt Securities of any series for such purposes. The Company
and the Guarantor will give prompt written notice to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

 

Section 10.03. 
Money for Payments to be Held in Trust. If the Company or the Guarantor shall at any time act as Paying Agent with
respect to the Subordinated Debt Securities of any series, it will, on or before each due date for payment of the principal of
(and premium, if any) or interest, if any, if any, on any of the Subordinated Debt Securities of that series, segregate and hold
in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or interest,
if any, so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of its failure so to act.

 

Whenever
the Company and the Guarantor shall have one or more Paying Agents for any series of Subordinated Debt Securities, it will, prior
to each due date for payment of the principal of (and premium, if any) or interest, if any, on any Subordinated Debt Securities
of that series deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest, if any, so
becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and
(unless such Paying Agent is the Trustee) the Company or the Guarantor will promptly notify the Trustee of its action or its failure
so to act. Unless otherwise specified as contemplated by ‎Section
3.01, the Trustee shall be the Company’s and the Guarantor’s Paying Agent. The Company and the Guarantor will cause
each Paying Agent for any series of Subordinated Debt Securities other than the Trustee to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying
Agent will:

 

(a)            
hold all sums held by it for the payment of the principal of (and premium, if any) or interest, if any, on Subordinated
Debt Securities of that series in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such
Persons or otherwise disposed of as herein provided;

 

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(b)           
give the Trustee notice of any default by the Company (or the Guarantor or any other obligor upon the Subordinated Debt
Securities of that series) in the making of any payment, when due and payable, or principal of (and premium, if any) or interest,
if any, on Subordinated Debt Securities of that series; and

 

(c)            at
any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all
sums so held in trust by such Paying Agent.

 

The Company
may at the time, for the purpose of obtaining the satisfaction and discharge of this Subordinated Debt Securities Indenture or
for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company
or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the
Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee such Paying Agent shall be released from
all further liability with respect to such money.

 

Any money
deposited with the Trustee or any Paying Agent, or then held by the Company or the Guarantor, in trust for the payment of the
principal of (and premium, if any) or interest, if any, on any Subordinated Debt Security of any series and remaining unclaimed
for two years after such principal (and premium, if any) or interest, if any, have become due and payable shall be paid to the
Company or the Guarantor, as the case may be, on Company Request, or (if then held by the Company or the Guarantor) shall be discharged
from such trust; and the Holder of such Subordinated Debt Security shall thereafter, as an unsecured general creditor, look only
to the Company or the Guarantor for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company or the Guarantor as trustee thereof, shall thereupon cease; provided, however, that
the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to
be published at least once, in an Authorized Newspaper, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining
will be paid to the Company or the Guarantor, as the case may be.

 

Section 10.04. 
Additional Amounts. Unless otherwise specified pursuant to Section 3.01, all amounts payable (whether in respect
of principal, redemption amount, interest or otherwise) in respect of any series of Subordinated Debt Securities and the related
Guarantees will be made free and clear of and without withholding or deduction for or on account of any present or future taxes,
duties, assessments or governmental charges of whatever nature imposed or levied by or on behalf of the Kingdom of Spain or any
political subdivision thereof or any authority or agency therein or thereof having power to tax, unless the withholding or deduction
of such taxes, duties, assessments or governmental charges is required by law. In that event, the Company or the Guarantor, as
the case may be, shall pay such additional amounts (“Additional Amounts”) as will result in receipt by the Holders
of the Subordinated Debt Securities of the particular series of such amounts as would have been received by them had no such withholding
or deduction been required. 

 

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Neither the
Company nor the Guarantor shall be required to pay any Additional Amounts in respect of any series of Subordinated Debt Securities:

 

(i)            to,
or to a third party on behalf of, a Holder if the Holder or the beneficial owner of Subordinated Debt Securities is liable
for such taxes, duties, assessments or governmental charges in respect of such Subordinated Debt Securities by reason of his
having some connection with Spain other than the mere holding of a Subordinated Debt Security; or

 

(ii)           to,
or to a third party on behalf of, a Holder in respect of whose series of Subordinated Debt Securities the Company or the
Guarantor does not receive such information as may be required in order to comply with the applicable Spanish tax reporting
obligations, including but not limited to the receipt in a timely manner of a duly executed and completed certificate in
accordance with Law 10/2014 and Royal Decree 1065/2007, as amended, and any implementing legislation or regulation;
or

 

(iii)         
to, or to a third party on behalf of, a Holder of Subordinated Debt Securities of any series if the Holder or beneficial
owner failed to make any necessary claim or to comply with any certification, identification or
other requirements concerning the nationality, residence, identity or connection with the taxing jurisdiction of such Holder or
beneficial owner, if such claim or compliance is required by statute, treaty, regulation or administrative practice of Spain as
a condition to relief or exemption from such taxes;

 

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

 

(v)          
where the withholding or deduction is imposed pursuant to European Council Directive 2003/48/EC or any Directive amending,
supplementing or replacing such Directive or any law implementing or complying with, or introduced in order to conform to, such
Directive; or

 

(vi)         
presented for payment (where presentation is required) by or on behalf of a Holder who would have been able to avoid such
withholding or deduction by presenting the relevant Subordinated Debt Security to another paying agent in a Member State of the
European Union; or

 

(vii)        
to, or to a third party on behalf of, individuals resident for tax purposes in the Kingdom of Spain; or

 

(viii)       
to, or to a third party on behalf of, a Spanish-resident legal entity subject to Spanish corporation tax if the Spanish
tax authorities determine that the Subordinated Debt Securities of such series do not comply with exemption requirements specified
in the Reply to a Consultation of the Directorate General

 

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for
Taxation (Dirección General de Tributos) dated 27 July 2004 and require a withholding to be made; or

 

(ix)          
where the withholding or deduction is required pursuant to an agreement described in Section 1471(b) of the Code or otherwise
imposed pursuant to Sections 1471 through 1474 of the Code (“FATCA”), any regulations or agreements thereunder, any
official interpretations thereof, any intergovernmental agreements with respect thereto (including the intergovernmental agreement
between the United States and Spain on the implementation of FATCA), or any law implementing an intergovernmental agreement or
any regulations or official interpretations relating thereto; or

 

(x)           
in the case of any combination of items listed in (i) through (ix) above.

 

Additional
Amounts will also not be paid with respect to any payment to a Holder who is a fiduciary, a partnership, a limited liability company
or person other than the sole beneficial owner of that payment, to the extent that payment would be required by the laws of Spain
(or any political subdivision thereof) to be included in the income, for tax purposes, of a beneficiary or settlor with respect
to the fiduciary, a member of that partnership, an interest holder in that limited liability company or a beneficial owner who
would not have been entitled to the Additional Amounts had it been the Holder.

 

For the purposes
of (iv) above, the “Relevant Date” means, in respect of any payment, the date on which such payment first becomes
due and payable, but if the full amount of the moneys payable has not been received by the Trustee on or prior to such due date,
it means the first date on which, the full amount of such moneys having been so received and being available for payment to Holders
of Subordinated Debt Securities, notice to that effect shall have been duly given to the Holders of the relevant series of Subordinated
Debt Securities in accordance with Section 1.06.

 

Unless the
context otherwise requires, any reference in this Section 10.04 to “principal” shall include any premium payable,
or Redemption Amount and any other amounts in the nature of principal payable pursuant to the Subordinated Debt Securities Indenture
and “interest” shall include all amounts payable pursuant to Section 3.07 and any other amounts in the nature of interest
payable under the Subordinated Debt Securities Indenture.

 

As used in
this ‎Section 10.04, the term “Redemption Amount”
means, as appropriate, the Maturity Redemption Amount, Early Redemption Amount (Tax), Early Redemption Amount (Capital Disqualification
Event), Early Redemption Amount (Call) and Early Termination Amount or such other amount in the
nature of a redemption amount as may be specified in, or determined in accordance with the Section 3.01.

 

Unless the
context requires otherwise, any references in this Subordinated Debt Securities Indenture to payment of principal of or interest
on a Subordinated Debt

 

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Security
shall be deemed to include any Additional Amounts payable with respect thereto.

 

In the event
that any withholding or deduction for or on account of any taxes is required, at least 10 days prior to each date of payment of
principal of or interest on the relevant series of Subordinated Debt Securities, or, if later, promptly after the obligation to
withhold or deduct becomes known to the Company, the Company will furnish to the Trustee and the Paying Agent, if other than the
Trustee, an Officer’s Certificate specifying the amount required to be withheld or deducted on such payments to such Holders,
certifying that the Company shall pay such amounts required to be withheld to the appropriate taxing jurisdiction and certifying
to the fact that the Additional Amounts will be payable and the amounts so payable to each Holder, and that the Company will pay
to the Trustee or the Paying Agent the Additional Amounts required to be paid; provided that no such Officer’s Certificate
will be required prior to any date of payment of principal of or interest on such Subordinated Debt Securities if there has been
no change with respect to the matters set forth in a prior Officer’s Certificate. The Trustee and Paying Agent may rely
on the fact that any Officer’s Certificate contemplated by this paragraph has not been furnished as evidence of the fact
that no withholding or deduction for or on account of any taxes is required. The Company covenants to indemnify the Trustee and
Paying Agent for and to hold them harmless against any loss, liability or expense reasonably incurred without negligence or bad
faith on their part arising out of or in connection with actions taken or omitted by any of them in reliance on any such Officer’s
Certificate furnished pursuant to this paragraph or on the fact that any Officer’s Certificate contemplated by this paragraph
has not been furnished.

 

Section 10.05. 
Corporate Existence. Subject to ‎Article 8,
each of the Company and the Guarantor will do or cause to be done all things necessary to preserve and keep in full force and
effect its respective corporate existence, provided, however, that the foregoing shall not obligate the Company or the
Guarantor to preserve any such right or franchise if the Company or the Guarantor shall determine that the preservation thereof
is no longer desirable in the conduct of its business and that the loss thereof is not disadvantageous in any material respect
to any Holder.

 

Section 10.06. 
Statement as to Compliance. The Company and the Guarantor will deliver to the Trustee, within 120 days after the
end of each fiscal year, a certificate in compliance with Section 314(a)(4) of the Trust Indenture Act.

 

Section 10.07. 
Original Issue Document. The Company shall provide to the Trustee on a timely basis such information, if any, as
the Trustee requires to enable the Trustee to prepare and file any form required to be submitted by the Company with the Internal
Revenue Service and the Holders of the Subordinated Debt Securities relating to any original issue discount, including, without
limitation, Form 8821, Form 1099-OID or any successor forms.

 

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Article
11

Redemption of Subordinated Debt Securities

 

Section 11.01. 
Applicability of Article. Subordinated Debt Securities of any series shall be redeemable in accordance with their
terms and (except as otherwise specified pursuant to ‎Section
3.01 for Subordinated Debt Securities of any series) in accordance with this ‎Article
11. Subordinated Debt Securities of any series may not be redeemed except in accordance with provisions of applicable law. The Subordinated Debt Securities of any series may not be redeemed in whole or in part at the option of the Holder thereof.

 

Section 11.02. 
Election to Redeem; Notice to Trustee. The election of the Company to redeem any Subordinated Debt Securities shall
be evidenced by a Board Resolution. Unless otherwise provided as contemplated by ‎Section
3.01 with respect to any series of Subordinated Debt Securities, the Company shall, at least 30 days prior, but
not nor more than 60 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee of such Redemption Date, of the principal amount of Subordinated Debt Securities of such series
to be redeemed and, if applicable, the tenor of the Subordinated Debt Securities to be redeemed. In the case of any redemption
of Subordinated Debt Securities of any series prior to the expiration of any provision restricting such redemption provided in
the terms of such Subordinated Debt Securities or elsewhere in this Subordinated Debt Securities Indenture, the Company shall
furnish the Trustee with respect to such Subordinated Debt Securities with an Officer’s Certificate evidencing compliance
with or waiver of such provision.

 

Section 11.03. 
Selection by Trustee of Subordinated Debt Securities to Be Redeemed. Unless otherwise provided as contemplated by
‎Section 3.01 with respect to any series of Subordinated Debt
Securities, if fewer than all the Subordinated Debt Securities of any series are to be redeemed, the particular Subordinated Debt
Securities to be redeemed shall be selected not less than 30 days nor more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Subordinated Debt Securities of such series not previously called for redemption, pro rata, by lot or by
such method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of portions
(equal to the minimum authorized denomination for Subordinated Debt Securities of that series or any multiple thereof) of the
principal amount of Subordinated Debt Securities of such series of a denomination larger than the minimum authorized denomination
for Subordinated Debt Securities of that series.

 

The Trustee
shall promptly notify the Company in writing of the Subordinated Debt Securities selected for redemption and, in the case of any
Subordinated Debt Securities selected for partial redemption, the principal amount thereof to be redeemed.

 

For all purposes
of this Subordinated Debt Securities Indenture, unless the context otherwise requires, all provisions relating to the redemption
of Subordinated Debt

 

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Securities
shall relate in the case of any Subordinated Debt Securities redeemed or to be redeemed only in part, to the portion of the principal
amount of such Subordinated Debt Security which has been or is to be redeemed.

 

Section 11.04. 
Notice of Redemption. Unless otherwise provided as contemplated by Section 3.01 with respect to any series of Subordinated
Debt Securities, notice of redemption shall be given not less than 30 days nor more than 60 days prior to the
Redemption Date to each Holder of Subordinated Debt Securities to be redeemed in the manner and to the extent provided in ‎Section
1.06.

 

All notices
of redemption shall state:

 

(a)            
the series of Subordinated Debt Securities subject to redemption;

 

(b)            
the Redemption Date;

 

(c)            
the Redemption Price,

 

(d)            
if fewer than all the Outstanding Subordinated Debt Securities of any series are to be redeemed, the principal amount of
the Subordinated Debt Securities to be redeemed, (except in the case of a redemption pursuant to Section 11.08 or 11.09, which
must be a redemption in full)

 

(e)            
that on the Redemption Date the Redemption Price together with any accrued but unpaid interest will become due and payable
upon each such Subordinated Debt Security to be redeemed and, if applicable, that interest thereon will cease to accrue on or
after the said date,

 

(f)            
the place or places where such Subordinated Debt Securities are to be surrendered for payment of the Redemption Price,
and

 

(g)            
the CUSIP, Common Code and/or ISIN number or numbers, if any, with respect to such Subordinated Debt Securities.

 

Any notice
provided pursuant to this Section 11.04 shall be irrevocable, and the delivery thereof shall oblige the Company to make the redemption
therein specified (unless the Spanish Bail-in Power is exercised by the relevant resolution authority before the occurrence of
such redemption). 

 

Notice of
redemption of Subordinated Debt Securities to be redeemed at the selection of the Company shall be given by the Company or, at
the Company’s request, by the Trustee in the name and at the expense of the Company, and the Company shall deliver an Officer’s
Certificate requesting that the Trustee give such and setting forth the information to be stated in such notice no less than 10
Business Days prior to the date of the notice to Holders of Subordinated Debt Securities (unless a shorter notice shall be satisfactory
to the Trustee).

 

Section 11.05. 
Deposit of Redemption Price. On or prior to any Redemption Date, the Company or the Guarantor shall deposit with
the Trustee or with a Paying Agent (or, if the Company or the Guarantor is acting as Paying Agent, segregate and hold in trust
as provided in ‎Section 10.03) an amount of money sufficient
to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment

 

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Date)
accrued but unpaid interest on, all the Subordinated Debt Securities which are to be redeemed on that date.

 

Section 11.06. 
Subordinated Debt Securities Payable on Redemption Date. Notice of redemption having been given as aforesaid, the
Subordinated Debt Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein
specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest,
if any) such Subordinated Debt Securities shall cease to accrue interest. Upon surrender of any such Subordinated Debt Security
for redemption in accordance with said notice, such Subordinated Debt Security shall be paid by the Company or the Guarantor at
the Redemption Price, together with accrued but unpaid interest to the Redemption Date; provided, however, that with respect to
any Subordinated Debt Securities, unless otherwise specified as contemplated by ‎Section
3.01, a payment of interest which is payable on an Interest Payment Date which is the Redemption Date, shall be payable to the
Holders of such Subordinated Debt Securities, or one or more Predecessor Securities, registered as such at the close of business
on the relevant Regular or Special Record Date according to the terms of the Subordinated Debt Securities and the provisions of
‎Section 3.07. Subordinated Debt Securities in definitive
form shall be presented for redemption to the Paying Agent.

 

If any Subordinated
Debt Security called for redemption shall not be so paid upon surrender thereof for redemption, the Subordinated Debt Security
shall, until paid, continue to accrue interest from and after the Redemption Date in accordance with its terms and the provisions
of ‎Section 3.07.

 

Section 11.07. 
Subordinated Debt Securities Redeemed in Part. Any Subordinated Debt Security which is to be redeemed only in part
shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), and the Company shall execute, the Guarantor shall endorse the Guarantee on, and the Trustee
shall authenticate and deliver to the Holder of such Subordinated Debt Security without service charge, a new Subordinated Debt
Security or Subordinated Debt Securities of the same series of any authorized denomination as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the principal of the Subordinated Debt Security so surrendered.
If a Global Security is surrendered, the new Subordinated Debt Security will also be a Global Security.

 

Section 11.08. 
Optional Redemption Due to Changes in Tax Treatment. Unless otherwise provided as contemplated by ‎Section
3.01 with respect to any series of Subordinated Debt Securities, if, in relation to the Subordinated Debt Securities of any series,
(i) as a result of any change in the laws or regulations of Spain or of any political subdivision thereof or any authority or
agency therein or thereof having power to tax or in the interpretation or administration of any such laws or regulations which
becomes effective on or after the date of issue of the first issued Subordinated Debt Securities of

 

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such
series or any earlier date specified pursuant to Section 3.01, the Company or the Guarantor shall determine that (a)
the Company or the Guarantor, as the case may be, would be required to pay Additional Amounts pursuant to Section 10.04 or
(b) the Company would not be entitled to claim a deduction in computing tax liabilities in Spain in respect of any interest
to be paid on the next interest payment date on such series of Subordinated Debt Securities or the value of such deduction to
the Company would be materially reduced or (c) the applicable tax treatment of the Subordinated Debt Securities of such
series changes and (ii) such circumstances are evidenced by the delivery by the Company or the Guarantor, as the case may be,
to the trustee of a certificate signed by two directors of the Company or the Guarantor, as the case may be, stating that
such circumstances prevail and describing the facts leading thereto, an opinion of independent legal advisers of
recognized standing to the effect that such circumstances prevail and a copy of the Regulator’s consent to the
redemption, the Company may, at its option and having given no less than 30 nor more than 60 days’ notice (ending, in
the case of Subordinated Debt Securities which bear interest at a floating rate, on a day upon which interest is payable) to
the Holders of the Subordinated Debt Securities of such series in accordance with Section 11.04 (which notice shall be
irrevocable), redeem in whole, but not in part,  the outstanding Subordinated Debt Securities of such series (in accordance
with the requirements of Applicable Banking Regulations in force at the relevant time) at their early tax redemption amount
(the “Early Redemption Amount (Tax)”) (which shall be their principal amount or at such other Early Redemption
Amount (Tax) as may be specified in or determined pursuant to Section 3.01), together with accrued interest (if any)
thereon; provided, however, that (i) in the case of (a) above, no such notice of redemption may be given earlier than 90 days
(or, in the case of Subordinated Debt Securities which bear interest at a floating rate a number of days which is equal to
the aggregate of the number of days falling within the then current interest period applicable to the Subordinated Debt
Securities of such series plus 60 days) prior to the earliest date on which the Company or the Guarantor, as the case may be,
would be obliged to pay such Additional Amounts were a payment in respect of the Subordinated Debt Securities of such series
then due and (ii) redemption for taxation reasons pursuant to this Section 11.08 may only take place in accordance
with Applicable Banking Regulations in force at the relevant time and is subject to the prior consent of the Regulator
with respect to the Subordinated Debt Securities of such series.

 

Section 11.09. 
Optional Redemption For Capital Disqualification Event. Unless otherwise provided as contemplated by ‎Section
3.01 with respect to any series of Subordinated Debt Securities, if, in relation to the Subordinated Debt Securities of any series,
(i) there is a change in Spanish law, Applicable Banking Regulations or any change in the application or official interpretation
thereof that the Company or the Guarantor determines results or is likely to result in the entire outstanding aggregate principal
amount of Subordinated Debt Securities of such series ceasing to be included in, or counting towards, the Guarantor’s and/or
the Group’s Tier 2 Capital and (ii) such circumstances are evidenced by the delivery by the Company or the Guarantor, as
the case may be, to the trustee of a certificate signed by two directors of the Guarantor stating that the said circumstances
prevail and describing the facts leading thereto and a copy of the Regulator’s consent to the redemption, the Company may,
at its option and having given no less than 30 nor more than 60 days’ notice (ending, in the case of Subordinated

 

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Debt
Securities which bear interest at a floating rate, on a day upon which interest is payable) to the holders of the
subordinated debt securities of such series in accordance with Section 11.04 (which notice shall be irrevocable), redeem in
whole but not in part the outstanding Subordinated Debt Securities of such series in accordance with the requirements
of Applicable Banking Regulations in force at the relevant time) at their early capital disqualification event redemption
amount (the “Early Redemption Amount (Capital Disqualification Event)”) (which shall be their principal amount or
at such other Early Redemption Amount (Capital Disqualification Event) except as may be specified in or determined
pursuant to Section 3.01), together with accrued interest (if any) thereon; provided, however, that the Regulator consents
to redemption of the Subordinated Debt Securities of such series.

 

Redemption
for regulatory reasons is subject to the prior consent of the Regulator and may only take place in accordance with Applicable
Banking Regulations in force at the relevant time.

  

Section 11.10. 
Optional Early Redemption (Call). Unless otherwise provided as contemplated by ‎Section
3.01 with respect to any series of Subordinated Debt Securities, the Company may, upon the expiration of the appropriate notice
pursuant to Section 11.04, and subject, to the prior consent of the Regulator, redeem in whole (but not, except as otherwise specified
pursuant to Section 3.01, in part) the Subordinated Debt Securities of such series at their call early redemption amount (the
“Early Redemption Amount (Call)”) (which shall be their principal amount or such other Early Redemption Amount (Call)
as may be specified in or determined pursuant to Section 3.01), together with accrued interest (if any) thereon.

 

Redemption
at the option of the Company pursuant to this Section 11.10 is subject to the prior consent of the Regulator and may only take
place in accordance with Applicable Banking Regulations in force at the relevant time.

 

If the Subordinated
Debt Securities of any series are to be redeemed in part only on any date in accordance with this ‎Section
11.10, the Subordinated Debt Securities of such series shall be redeemed (so far as may be practicable) pro rata to their principal
amounts, or by lot or such other method as the Trustee deems fair and appropriate, subject always as aforesaid and provided always
that the amount redeemed in respect of the Subordinated Debt Securities of such series shall be equal to the minimum authorized
denomination thereof or an integral multiple thereof, subject always to compliance with all applicable laws and the requirements
of any clearing system on which the Subordinated Debt Securities of any such series may be cleared and of any listing authority,
stock exchange and/or quotation system on which the Subordinated Debt Securities of such series may be listed and/or quoted.

 

Section 11.11. 
Repurchase of Subordinated Debt Securities. Unless otherwise provided as contemplated by ‎Section
3.01 with respect to the any series of Subordinated Debt Securities, the Company, Guarantor and any of their respective subsidiaries
or any third party designated by any of them, may, in accordance with Applicable Banking Regulations, at any time repurchase Subordinated
Debt Securities of any series in the open market or otherwise and at any price.

  

Article
12

Subordination of Subordinated Debt Securities

 

Section 12.01. 
Subordinated Debt Securities Subordinate to Claims of Senior Creditors.  The Company, for itself, its successors
and assigns, covenants and agrees, and each Holder of the Subordinated Debt Securities of any series by his acceptance thereof,
likewise covenants and agrees, that the Subordinated Debt Securities of such series constitute direct, unconditional, subordinated
and unsecured obligations of the Company and, upon the insolvency of the Company (and unless they qualify as more subordinated
claims pursuant to the Spanish Insolvency Law or equivalent legal provisions which

 

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replace
them in the future, and subject to any applicable legal and statutory exceptions) rank, under Article 92.2 of the Spanish Insolvency
Law (or equivalent legal provisions which replace, substitute or amend it in the future) pari passu without preference
or priority among themselves and:

 

(i)           
senior to (1) those contractually subordinated obligations of principal related to instruments qualifying as Tier 1 Capital
of the Guarantor, (2) those subordinated obligations which qualify as subordinated claims pursuant to Articles 92.3 to 92.7 of
the Spanish Insolvency Law or equivalent legal provisions which replace them in the future and (3) any other subordinated obligations
which by law or their terms, and to the extent permitted by Spanish law, rank junior to the subordinated debt securities of such
series;

 

(ii)           
pari passu with all of the Company’s other contractually subordinated obligations of principal related to
instruments qualifying as Tier 2 Capital of the Guarantor; and

 

(iii)          junior to any non-subordinated obligations of the Company, any Senior Subordinated Obligations and any claim on the Company
that becomes subordinated as a consequence of article 92.1o of the Spanish Insolvency Law.

 

The provisions
of this ‎Article 12 shall apply only to rights or claims payable
under any Subordinated Debt Securities of any series and nothing herein shall affect or prejudice the payment of the costs, charges,
expenses, liabilities, indemnity or remuneration of the Trustee, the first lien rights of the Trustee under ‎Section
 6.08 hereof, or the rights and remedies of the Trustee in respect thereof.

 

The Company
agrees with respect to any series of Subordinated Debt Securities and each Holder of Subordinated Debt Securities of any series,
by his or her acquisition of a Subordinated Debt Security will be deemed to have agreed to the subordination as described in this
Section 12.01. Each such Holder will be deemed to have irrevocably waived his or her rights of priority which would otherwise
be accorded to him or her under the laws of Spain, to the extent necessary to effectuate the subordination provisions of the Subordinated
Debt Security. In addition, each holder of Subordinated Debt Securities of any series by his or her acquisition of such Subordinated
Debt Securities authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or appropriate
to effectuate the subordination of the such Subordinated Debt Securities as provided in this Subordinated Debt Securities Indenture
and appoints the Trustee his attorney-in-fact for any and all such purposes.

 

Section 12.02. 
Status of the Subordinated Debt Securities. The Subordinated Debt Securities of any series constitute direct, unconditional,
subordinated and unsecured obligations of the Company.

 

Section 12.03. 
Provisions Solely to Define Relative Rights. The provisions of this ‎Article
12 are and are intended solely for the purpose of defining the relative rights of the Holders of the Subordinated Debt Securities
of each series on the one hand and the

 

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Senior
Creditors on the other hand. Nothing contained in this Article or elsewhere in this Subordinated Debt Securities Indenture or
in such Subordinated Debt Securities is intended to or shall (a) impair, as among the Company and the Holders of the Subordinated
Debt Securities, the obligation of the Company or the Guarantor, which is absolute and unconditional, to pay to the holders of
such claims the principal of, premium, if any, and interest, if any, on such Subordinated Debt Securities as and when the same
shall become due and payable in accordance with their terms and the terms of the subordinated guarantee and this Subordinated
Debt Securities Indenture; or (b) affect the relative rights against the Company or the Guarantor of the Holders of such Subordinated
Debt Securities; or (c) prevent the Trustee or the Holder of any Subordinated Debt Securities of the series from exercising all
remedies otherwise permitted by applicable law upon default under this Subordinated Debt Securities Indenture, subject to the
rights, if any, under this Article of the Senior Creditors to receive cash, property or securities otherwise payable or deliverable
to the Trustee or such holder.

 

Section 12.04. 
Trustee to Effectuate Subordination. Each Holder of a Subordinated Debt Security by his acceptance thereof authorizes
and directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the subordination of
the Subordinated Debt Securities provided in this Article 12 and appoints the Trustee his attorney-in-fact for any and all such
purposes.

 

Section 12.05. 
Trustee Not Fiduciary for Senior Creditors. With respect to the Senior Creditors, the Trustee undertakes to perform
or to observe only such of its covenants and obligations as are specifically set forth in this Subordinated Debt Indenture, and
no implied covenants or obligations with respect to the Senior Creditors shall be read into this Subordinated Debt Indenture against
the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the Senior Creditors and shall not be liable to any
such holders if it shall  mistakenly pay over or distribute to Holders of Subordinated Debt Securities of the series or to the
Company or to any other Person cash, property or securities to which any Senior Creditors shall be entitled by virtue of this
Article or otherwise.

 

Section 12.06. 
Rights of Trustee as Senior Creditor; Preservation of Trustee’s Rights. The Trustee in its individual capacity
shall be entitled to all the rights set forth in this Article with respect to any claims of Senior Creditors which may at any
time be held by it, to the same extent as any other Senior Creditor, and nothing in this Subordinated Debt Securities Indenture
or the Trust Indenture Act shall deprive the Trustee of any of its rights as such holder.

 

Nothing in
this Article shall apply to claims of, or payments to, the Trustee under or pursuant to Section 5.06 and ‎Section
6.08.

 

Section 12.07. 
Article Applicable to Paying Agents. At all times when a Paying Agent other than the Trustee shall have been appointed
by the Company or the Guarantor and be then acting hereunder, the term “Trustee” as used in this Article shall
in such case (unless the context otherwise requires) be construed as extending to and including such

 

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Paying
Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named in this Article in addition
to or in place of the Trustee; provided, however, that ‎Section
12.06 shall not apply to the Company, the Guarantor or any Affiliate of the Company or the Guarantor if the Company or the Guarantor
or such Affiliate acts as Paying Agent.

 

Article
13

Guarantee

 

Section 13.01. 
The Guarantee. The Guarantor hereby unconditionally guarantees to each Holder of a Subordinated Debt Security the
due and punctual payment of the principal of, any premium and interest on, and any Additional Amounts with respect to such Subordinated
Debt Security and the due and punctual payment of the sinking fund payments (if any) provided for pursuant to the terms of such
Subordinated Debt Security and any and all amounts due under this Subordinated Debt Securities Indenture, including as may be
modified pursuant to exercise of the Bail-in Power under Article 14 of the Subordinated Debt Securities Indenture, and as and
when the same shall become due and payable, whether at maturity, by acceleration, redemption, repayment or otherwise, in accordance
with the terms of such Subordinated Debt Security and of this Subordinated Debt Securities Indenture. In case of the failure of
the Company to punctually pay any such principal, premium, interest, Additional Amounts or sinking fund payment and any and all
amounts due and owing under this Subordinated Debt Securities Indenture (including, but not limited to, the fees, expenses and
indemnities of the Trustee), the Guarantor hereby agrees to cause any such payment to be made punctually when and as the same
shall become due and payable, whether at maturity, upon acceleration, redemption, repayment or otherwise, and as if such payment
were made by the Company.

 

Section 13.02. 
Subordination of the Guarantee. The Company, for itself, its successors and assigns, covenants and agrees, and each
Holder of Securities by his acceptance thereof, likewise covenants and agrees, that the obligations of the Guarantor with respect
to any series of subordinated debt securities constitute direct, unconditional, subordinated and unsecured obligations of the
Guarantor which, upon the insolvency of the Guarantor (and unless they qualify as more subordinated claims pursuant to the Spanish
Insolvency Law or equivalent legal provision which replace them in the future, and subject to any applicable legal and statutory
exceptions) shall rank, under Article 92.2 of the Spanish Insolvency Law (or equivalent legal provisions which replace, substitute
or amend it in the future),

 

(i)            senior
to (1) contractually subordinated obligations of principal related to instruments qualifying as Tier 1 Capital of the
Guarantor, (2) those subordinated obligations which qualify as subordinated claims pursuant to Articles 92.3 to 92.7 of
the Spanish Insolvency Law or equivalent legal provisions which replace them in the future and  (3) any other subordinated obligations which by law or their
terms, and to the extent permitted by Spanish law, rank junior to the Guarantor’s obligations under the subordinated
guarantees;

 

    83 

     

    

 

(ii)           
pari passu with all other contractually subordinated obligations of principal related to instruments qualifying
as Tier 2 Capital of the Guarantor and any other subordinated obligations which by law and/or their terms, and to the extent permitted
by Spanish law, rank pari passu with the Guarantor’s obligations under the subordinated guarantee; and

 

(iii)          
junior to any non-subordinated obligations of the Guarantor, any other subordinated obligations which by law and/or their
terms, and to the extent permitted by Spanish law, rank senior to the Guarantor’s obligations under the subordinated guarantees
(including contractually subordinated obligations of principal related to instruments not qualifying as Tier 2 Capital or Tier
1 Capital of the Guarantor), and any claim on the Guarantor that becomes subordinated as a consequence of article 92.1o
of the Spanish Insolvency Law.

  

The Guarantor
agrees with respect to any series of Subordinated Debt Securities and each holder of Subordinated Debt Securities of any series,
by his or her acceptance of a Guarantee will be deemed to have agreed to the subordination of the Guarantee pursuant to this Section
13.02. Each such Holder will be deemed to have irrevocably waived his or her rights of priority which would otherwise be accorded
to him or her under the laws of Spain, to the extent necessary to effectuate the subordination provisions of the Guarantee. In
addition, each holder of Subordinated Debt Securities of any series by his or her acceptance thereof authorizes and directs the
Trustee on his or her behalf to take such action as may be necessary or appropriate to effectuate the subordination of the Guarantee
as provided in this Section 13.02 and appoints the Trustee his attorney-in-fact for any and all such purposes.

 

Section 13.03. 
Guarantee Unconditional, Etc. The obligations of the Guarantor under the Guarantee constitute direct, unconditional,
subordinated and unsecured obligations of the Guarantor.

 

The Guarantor
hereby agrees that its obligations hereunder shall be as principal and not merely as surety, and shall be absolute, irrevocable
and unconditional, irrespective of, and shall be unaffected by, any invalidity, irregularity or unenforceability of any Subordinated
Debt Security or this Subordinated Debt Securities Indenture, any failure to enforce the provisions of any Subordinated Debt Security
or this Subordinated Debt Securities Indenture, or any waiver, modification, consent or indulgence granted with respect thereto
by the Holder of such Subordinated Debt Security or the Trustee, the recovery of any judgment against the Company or any action
to enforce the same, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety or guarantor.
The Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of merger, insolvency
or bankruptcy of the Company, any right to require a proceeding first against the Company, protest or notice with respect to any
such Subordinated Debt Security or the indebtedness evidenced thereby and all demands whatsoever, and covenants that this Guarantee
will not be discharged except by payment in full of the principal of, any premium and interest on, and any additional amounts
and sinking fund payments required with respect to, the Subordinated Debt Securities and the complete performance of all other
obligations

 

    84 

     

    

 

contained
in the Subordinated Debt Securities. The Guarantor further agrees, to the fullest extent that it lawfully may do so, that, as
between the Guarantor, on the one hand, and the Holders and the Trustee, on the other hand, the maturity of the obligations guaranteed
hereby may be accelerated as provided in Section 5.02 hereof for the purposes of this Guarantee, notwithstanding any stay, injunction
or prohibition extant under any bankruptcy, insolvency, reorganization or other similar law of any jurisdiction preventing such
acceleration in respect of the obligations guaranteed hereby.

 

Section 13.04. 
Reinstatement. This Guarantee shall continue to be effective or be reinstated, as the case may be, if at any time
payment on any Subordinated Debt Security, in whole or in part, is rescinded or must otherwise be restored to the Company or the
Guarantor upon the bankruptcy, liquidation or reorganization of the Company or otherwise.

 

Section 13.05. 
Subrogation. The Guarantor shall be subrogated to all rights of the Holder of any Subordinated Debt Security against
the Company in respect of any amounts paid to such Holder by the Guarantor pursuant to the provisions of this Guarantee; provided,
however, that the Guarantor shall not be entitled to enforce, or to receive any payments arising out of or based upon, such right
of subrogation until the principal of, any premium and interest on, and any additional amounts and sinking fund payments required
with respect to, all Subordinated Debt Securities shall have been paid in full.

 

Section 13.06. 
Assumption By Guarantor. (a) The Guarantor may, without the consent of the Holders, assume all of the rights and
obligations of the Company hereunder with respect to a series of Subordinated Debt Securities and under the Subordinated Debt
Securities of such series if, after giving effect to such assumption, no Event of Default or event which with the giving of notice
or lapse of time, or both, would become an Event of Default, shall have occurred and be continuing. Upon such an assumption, the
Guarantor shall execute a supplemental indenture evidencing its assumption of all such rights and obligations of the Company and
the Company shall be released from its liabilities hereunder and under such Subordinated Debt Securities as obligor on the Subordinated
Debt Securities of such Series.

 

(b)            
The Guarantor shall assume all of the rights and obligations of the Company hereunder with respect to a series of Subordinated
Debt Securities and under the Subordinated Debt Securities of such series if, upon a default by the Company in the due and punctual
payment of the principal, sinking fund payment, if any, premium, if any, or interest on such Subordinated Debt Securities, the
Guarantor is prevented by any court order or judicial proceeding from fulfilling its obligations under ‎Section 13.01
with respect to such series of Subordinated Debt Securities. Such assumption shall result in the Subordinated Debt Securities
of such series becoming the direct obligations of the Guarantor and shall be effected without the consent of the Holders of the
Subordinated Debt Securities of any series. Upon such an assumption, the Guarantor shall execute a supplemental indenture evidencing
its assumption of all such rights and obligations of the Company, and the Company shall be released from its liabilities hereunder
and under

 

    85 

     

    

 

such
Subordinated Debt Securities as obligor on the Subordinated Debt Securities of such series.

 

Article
14

Spanish Bail-in and Resolution Actions

 

Section
14.01.  Agreement and Acknowledgement with Respect to
the Exercise of the Spanish Bail-in Power. (a) Notwithstanding any other term of the Subordinated Debt Securities of
any series or any other agreements, arrangements, or understandings between the Company and any Holder of the Subordinated
Debt Securities of any series, by its acquisition of the Subordinated Debt Securities of any series, each Holder (which, for
the purposes of this clause, includes each Holder of a beneficial interest in the Subordinated Debt Securities of any
series) acknowledges, accepts, consents to and agrees to be bound by:

 

(i)           
the effect of the exercise of the Spanish Bail-in Power by the relevant resolution authority which exercise may include
and result in any of the following, or some combination thereof:

 

(A)           
the reduction of all, or a portion, of the Amounts Due on the Subordinated Debt Securities of such series;

 

(B)            the
conversion of all, or a portion, of the Amounts Due on the Subordinated Debt Securities of such series into ordinary shares,
other securities or other obligations of the Company or the Guarantor or another person (and the issue to or conferral on the
Holder of the Subordinated Debt Securities of such series of such shares, securities or obligations), including by means of
an amendment, modification or variation of the terms of the Subordinated Debt Securities of such series;

 

(C)           
the cancellation of the Subordinated Debt Securities of such series;

 

(D)           
the amendment or alteration of the maturity of the Subordinated Debt Securities of such series or amendment of the amount
of interest payable on the Subordinated Debt Securities of such series, or the date on which the interest becomes payable, including
by suspending payment for a temporary period; and

 

(ii)           
the variation of the terms of the Subordinated Debt Securities of such series, if necessary, to give effect to the exercise
of the Spanish Bail-in Power by the relevant resolution authority.

 

(b)            
No repayment or payment of Amounts Due on the Subordinated Debt Securities of any series, will become due and payable
or be paid after the exercise of any Spanish Bail-in Power by the relevant resolution authority if and to the extent such amounts
have been reduced, converted, cancelled, amended or altered as a result of such exercise.

 

(c)             Neither
a reduction or cancellation, in part or in full of the Amounts Due on, the conversion thereof into another security or
obligation of the Company, the Guarantor or another person, as a result of the exercise of the Spanish Bail-in Power by
the relevant resolution authority with respect to the Company or the Guarantor, nor the exercise of the Spanish Bail-in Power
by the relevant resolution authority with respect to the Subordinated Debt Securities of any series will be an Event of
Default.

 

(d)            
Upon the exercise of the Spanish Bail-in Power by the relevant resolution authority with respect to the Subordinated Debt
Securities of any series, the Company or the Guarantor will provide a written notice to the holders of the Subordinated Debt Securities
of such series through DTC as soon as practicable regarding such exercise of the Spanish Bail-in Power. The Company or the Guarantor
will also deliver a copy of such notice to the Trustee for information purposes.

 

(e)            
By its acquisition of the Subordinated Debt Securities of any series, each Holder of the Subordinated Debt Securities of
such series, (which, for the purposes of this clause, includes each holder of a beneficial interest in the Subordinated Debt Securities
of such series), to the extent permitted by the Trust Indenture Act, will waive any and all claims, in law and/or in equity, against
the Trustee for, agree not to initiate a suit

 

    86 

     

    

 

against
the trustee in respect of, and agree 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 Spanish Bail-in Power by the relevant resolution authority with
respect to the Subordinated Debt Securities of such series.

 

(f)            
Additionally, by its acquisition of the Subordinated Debt Securities of any series, each holder of the Subordinated Debt
Securities of such series acknowledges and agrees that, upon the exercise of the Spanish Bail-in Power by the relevant resolution
authority:

 

(i)           
the Trustee will not be required to take any further directions from the Holders of the Subordinated Debt Securities of
such series with respect to any portion of the Subordinated Debt Securities of such series that are written-down, converted to
equity and/or cancelled under the Subordinated Debt Securities Indenture, which authorizes holders of a majority in aggregate
outstanding principal amount of the outstanding Subordinated Debt Securities of such series to direct certain actions relating
to the Subordinated Debt Securities of such series; and

 

(ii)           
the Subordinated Debt Securities Indenture will not impose any duties upon the trustee whatsoever with respect to the exercise
of the Spanish Bail-in Power by the relevant resolution authority;

 

provided, however, that notwithstanding
the exercise of the Spanish Bail-in Power by the relevant resolution authority, so long as the Subordinated Debt Securities of
any series remain outstanding, there will at all times be a Trustee for the Subordinated Debt Securities of such series in accordance
with the Subordinated 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 the Subordinated Debt Securities Indenture, including to the extent no additional supplemental
indenture or amendment is agreed upon in the event the Subordinated Debt Securities of such series remain outstanding following
the completion of the exercise of the Spanish Bail-in Power.

 

(g)            
By its acquisition of the Subordinated Debt Securities of any series, each Holder of the Subordinated Debt Securities of
such series 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 Spanish Bail-in Power by the relevant resolution authority with respect to the Subordinated
Debt Securities of such series 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.

  

    87 

     

    

 

(h)             By
purchasing the Subordinated Debt Securities of any series, each Holder (including each beneficial owner) of the Subordinated
Debt Securities of such series shall be deemed to have authorized, directed and requested DTC and any direct participant in
DTC or other intermediary through which it holds the Subordinated Debt Securities of such series to take any and all
necessary action, if required, to implement the exercise of the Spanish Bail-in Power with respect to the Subordinated Debt
Securities of such series as it may be imposed, without any further action or direction on the part of such
Holder.

 

Section
14.02.  Agreement and Acknowledgement with Respect to the Exercise of Resolution Tools. (a)Notwithstanding any other
term of the Subordinated Debt Securities of any series or any other agreements, arrangements, or understandings between the Company
and any Holder of the Subordinated Debt Securities of any series, by its acquisition of the Subordinated Debt Securities of any
series, each Holder (which, for the purposes of this clause, includes each holder of a beneficial interest in the securities of
any series) acknowledges, accepts, consents and agrees to be bound by the effect of the exercise of any resolution tools (including
but not limited to the sale of business tool, the bridge institution tool and the asset separation tool) by the relevant resolution
authority in compliance with, any laws, regulations, rules or requirements in effect in the Kingdom of Spain,relating to (i) the
transposition of BRRD, including but not limited to Law 11/2015, (ii) the SRM Regulation and (iii) the instruments, rules and standards
created thereunder.

 

(b)            
By its acquisition of the Subordinated Debt Securities of any series, each Holder of the Subordinated Debt Securities of
such series, (which, for the purposes of this clause, includes each holder of a beneficial interest in the Subordinated Debt Securities
of such series), to the extent permitted by the Trust Indenture Act, will waive any and all claims, in law and/or in equity, against
the Trustee for, agree not to initiate a suit against the Trustee in respect of, and agree 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 any
resolution power by the relevant resolution authority.

 

(c)            
Additionally, by its acquisition of the Subordinated Debt Securities of any series, each Holder of the Subordinated Debt
Securities of such series acknowledges and agrees that, upon the exercise of any resolution power by the relevant resolution authority
the Subordinated Debt Securities Indenture will not impose any duties upon the Trustee whatsoever with respect to the exercise
of any resolution tool by the relevant resolution authority (including no duty whatsoever to take any directions from the Holders
of the Subordinated Debt Securities of such series), provided, however, that notwithstanding the exercise of any resolution tool
by the relevant resolution authority, so long as the Subordinated Debt Securities of any series remain outstanding, there will
at all times be a Trustee for the Subordinated Debt Securities of such series in accordance with this Subordinated 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 the Subordinated Debt Securities Indenture, including to the extent no additional supplemental indenture or amendment is agreed
upon in the event the Subordinated Debt Securities of such series remain outstanding following the completion of the exercise
of the resolution tool.

 

    88 

     

    

 

(d)            
By its acquisition of the Subordinated Debt Securities of any series, each Holder (including each beneficial owner) of
the Subordinated Debt Securities of such series shall be deemed to have authorized, directed and requested DTC and any direct
participant in DTC or other intermediary through which it holds the Subordinated Debt Securities of such series to take any and
all necessary action, if required, to implement the exercise of any resolution tool with respect to the securities of such series
as it may be imposed, without any further action or direction on the part of such Holder.

 

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

 

[Signature
Page Follows]

 

    89 

     

    

 

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

 

	SANTANDER ISSUANCES, S.A. UNIPERSONAL
	 
	 
	By:	 
	 	Name:	
	 	Title:	

 

 

 

	BANCO SANTANDER, S.A.
	 
	 
	By:	 
	 	Name:	
	 	Title:	
	 	 	 

	By:	 
	 	Name:	
	 	Title:	
	 	 	 
	 	 	 

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

    90 

     

    

 

appendix
1: Procedures for Compliance with Spanish Tax Legislation

 

Information
Procedures and Certification Obligations of the Trustee or Paying Agent in respect of payments under the Subordinated Debt Securities

 

		1.	Delivery of the Payment
Information Certificate: In connection with each payment of income under the Subordinated Debt Securities, the Trustee or
Paying Agent shall deliver to the Company or the Guarantor by the close of business on the business day immediately preceding
the day on which such payment is made a duly completed an executed Payment Information Certificate substantially in the form set
forth in Exhibit I hereto (Form of Payment Information Certificate). Such form may be delivered initially by email, in
pdf form, or by fax, provided that the original is delivered by the end of the following month.

 

If
the Payment Information Certificate is delivered by the Trustee or Paying Agent in a timely manner to the Company or the Guarantor,
the relevant income payment will be made free and clear of Spanish withholding tax.

 

The
Trustee or Paying Agent shall have no duty or responsibility to comply with Spanish tax laws arising out of this Subordinated
Debt Securities Indenture, and may request and rely conclusively upon any instructions from the Company or the Guarantor in respect
of any action necessary or required to be taken by the Trustee or Paying Agent pursuant to this Appendix 1; provided, however,
that in no event shall the Trustee or Paying Agent be required to expend or risk its own funds in the performance of any
of its duties pursuant to this Appendix 1, or be obligated to take any legal or other action which might in its judgment involve
or cause it to incur any expense or liability unless it shall have been furnished with acceptable indemnification.

 

The
Company or Guarantor agrees to instruct the Trustee or Paying Agent in writing with respect to any certifications that may be
required under Spanish law, and the Trustee or Paying Agent acknowledges that this Appendix 1 shall constitute an instruction
in this regard, unless otherwise instructed in writing by the Company or the Guarantor.

 

		2.	Failure to deliver the
Payment Information Certificate: In the event that the Trustee or Paying Agent fails or for any reason is unable to deliver
a timely, duly completed Payment Information Certificate as described above to the Company or the Guarantor in respect of a payment
of income under the Subordinated Debt Securities, the Trustee or Paying Agent shall withhold Spanish income tax on behalf of the
Company or the Guarantor from the relevant payment at the then-applicable rate (currently 19.5%, and 19% as of January 1, 2016
onwards).

 

		3.	If, after the relevant
payment date but before the 10th day of the month immediately following the relevant payment date the Trustee or Paying Agent
provides the duly completed Payment Information Certificate to the Company or the Guarantor, then the Company or the Guarantor
shall instruct the Trustee or

 

    91 

     

    

 

Paying
Agent to immediately transfer the 19.5% (19% as of January 1, 2016 onwards) withheld in respect of the relevant payment
pursuant to paragraph 1 above by way of reimbursement of the amounts withheld on the relevant payment date and completion of
the corresponding income payment in respect of payments under the Subordinated Debt Securities.

 

		4.	If the Trustee or Paying
Agent fails or for any reason is unable to submit a duly completed and executed Payment Information Certificate to the Company
or the Guarantor by the 10th day of the month immediately following the relevant payment date, the Trustee or Paying Agent shall
immediately return (but in any event no later than the 10th day of the month immediately following the relevant payment date)
to the Company or Guarantor any remaining amount of the 19.5% (19% as of January 1, 2016 onwards) withheld in respect of the relevant
payment, and investors will have to apply directly to the Spanish tax authorities for any refund to which they may be entitled.

 

    92 

     

    

 

EXHIBIT I

 

Anexo
al Reglamento General de las actuaciones y los procedimientos de gestión e inspección tributaria y de desarrollo
de las normas comunes de los procedimientos de aplicación de los tributos, aprobado por Real Decreto 1065/2007

 

Modelo
de declaración a que se refieren los apartados 3, 4 y 5 del artículo 44 del Reglamento General de las actuaciones
y los procedimientos de gestión e inspección tributaria y de desarrollo de las normas comunes de los procedimientos
de aplicación de los tributos

 

Annex to
Royal Decree 1065/2007, of 27 July, approving the General Regulations of the tax inspection and management procedures and developing
the common rules of the procedures to apply taxes

 

Declaration
form referred to in paragraphs 3, 4 and 5 of Article 44 of the General Regulations of the tax inspection and management procedures
and developing the common rules of the procedures to apply taxes

 

Don (nombre),
con número de identificación fiscal (...)(1), en nombre y representación de (entidad
declarante), con número de identificación fiscal (....)(1) y domicilio en (...) en calidad
de (marcar la letra que proceda):

 

Mr. (name),
with tax identification number (...)(1), in the name and on behalf of (entity), with tax identification number (....)(1)
and address in (...) as (function - mark as applicable):

 

(a) Entidad
Gestora del Mercado de Deuda Pública en Anotaciones.

 

(a) Management
Entity of the Public Debt Market in book entry form.

 

(b) Entidad
que gestiona el sistema de compensación y liquidación de valores con sede en el extranjero.

 

(b) Entity
that manages the clearing and settlement system of securities resident in a foreign country.

 

(c) Otras
entidades que mantienen valores por cuenta de terceros en entidades de compensación y liquidación de valores domiciliadas
en territorio español.

 

(c) Other
entities that hold securities on behalf of third parties within clearing and settlement systems domiciled in the Spanish territory.

 

(d) Agente
de pagos designado por el emisor.

 

(d) Fiscal
Agent appointed by the issuer.

 

    93 

     

    

 

Formula
la siguiente declaración, de acuerdo con lo que consta en sus propios registros:

 

Makes the
following statement, according to its own records:

 

1. En
relación con los apartados 3 y 4 del artículo 44:

 

1. In relation
to paragraphs 3 and 4 of Article 44:

 

1.1 Identificación
de los valores...............................................................

 

1.1 Identification
of the securities............................................................

 

1.2 Fecha
de pago de los rendimientos (o de reembolso si son valores emitidos al descuento o segregados)

 

1.2 Income
payment date (or refund if the securities are issued at discount or are segregated)

 

1.3 Importe
total de los rendimientos (o importe total a reembolsar, en todo caso, si son valores emitidos al descuento o segregados)...................................

 

1.3 Total
amount of income (or total amount to be refunded, in any case, if the securities are issued at discount or are segregated)

 

1.4 Importe
de los rendimientos correspondiente a contribuyentes del Impuesto sobre la Renta de las Personas Físicas, excepto cupones
segregados y principales segregados en cuyo reembolso intervenga una Entidad Gestora.................................

 

1.4 Amount
of income corresponding to Personal Income Tax taxpayers, except segregated coupons and segregated principals for which reimbursement
an intermediary entity is involved..................

 

1.5 Importe
de los rendimientos que conforme al apartado 2 del artículo 44 debe abonarse por su importe íntegro (o importe total
a reembolsar si son valores emitidos al descuento o segregados).

 

1.5 Amount
of income which according to paragraph 2 of Article 44 must be paid gross (or total amount to be refunded if the securities are
issued at discount or are segregated).

 

2. En
relación con el apartado 5 del artículo 44.

 

2. In relation
to paragraph 5 of Article 44.

 

2.1 Identificación
de los valores...............................................................

 

2.1 Identification
of the securities..............................................................

 

    94 

     

    

 

2.2 Fecha
de pago de los rendimientos (o de reembolso si son valores emitidos al descuento o segregados) ............................................................

 

2.2 Income
payment date (or refund if the securities are issued at discount or are segregated) ............................................................

 

2.3 Importe
total de los rendimientos (o importe total a reembolsar si son valores emitidos al descuento o segregados.....................................................

 

2.3 Total
amount of income (or total amount to be refunded if the securities are issued at discount or are segregated)

 

2.4 Importe
correspondiente a la entidad que gestiona el sistema de compensación y liquidación de valores con sede en el extranjero
A.

 

2.4 Amount
corresponding to the entity that manages the clearing and settlement system of securities resident in a foreign country A.

 

2.5 Importe
correspondiente a la entidad que gestiona el sistema de compensación y liquidación de valores con sede en el extranjero
B.

 

2.5 Amount
corresponding to the entity that manages the clearing and settlement system of securities resident in a foreign country B.

 

2.6 Importe
correspondiente a la entidad que gestiona el sistema de compensación y liquidación de valores con sede en el extranjero
C.

 

2.6 Amount
corresponding to the entity that manages the clearing and settlement system of securities resident in a foreign country C.

 

Lo que
declaro en......................a .... de......................de ....

 

I declare
the above in.................. .... on the.... of................... ... of....

 

(1) En
caso de personas, físicas o jurídicas, no residentes sin establecimiento permanente se hará constar el número
o código de identificación que corresponda de conformidad con su país de residencia

 

(1) In
case of non-residents (individuals or corporations) without permanent establishment in Spain it shall be included the number or
identification code which corresponds according to their country of residence.

 

 

    95Exhibit 4.3

 

BANCO SANTANDER, S.A.

 

as Issuer

 

 

TO

 

 

THE BANK OF NEW YORK MELLON,

acting through its London Branch

as Trustee

 

 

FORM OF INDENTURE

 

 

 

Contingent Convertible Capital Securities

 

 

 

 

    	 

    	 

    

BANCO SANTANDER, S.A.

 

Reconciliation and tie between Trust Indenture
Act of 1939, as amended by the Trust Indenture Reform Act of 1990, and this Contingent Convertible Capital Securities Indenture,
dated as of [ ].

 

	
        Trust
Indenture

Act Section
	
        Contingent
Convertible Capital Securities

Indenture Section

	§310 (a)(1)	7.10
	(a)(2)	7.10
	(a)(3)	Not Applicable
	(a)(4)	Not Applicable
	(b)	7.09, 7.11
	§311(a)	7.14
	(b)	7.14
	§312(a)	8.01, 8.02(a)
	(b)	8.02(b)
	(c)	8.02(c)
	§313(a)	8.03(a)
	(b)	8.03(a)
	(c)	1.06, 8.03(a)
	(d)	8.03(b)
	§314(a)	8.04, 11.06
	(b)	Not Applicable
	(c)(1)	1.02
	(c)(2)	1.02
	(c)(3)	Not Applicable
	(d)	Not Applicable
	(e)	1.02
	(f)	Not Applicable
	§315(a)	7.01
	(b)	7.03, 8.03(a)
	 	8.03(a)
	(c)	7.01
	(d)	7.01
	(d)(1)	7.01
	(d)(2)	7.01
	(d)(3)	7.01
	(e)	6.15
	§316(a)(1)(A)	6.14
	(a)(l)(B)	6.16
	(a)(2)	Not Applicable
	(a)(last sentence)	1.01
	(b)	6.10
	§317(a)(1)	6.04
	(a)(2)	6.06
	(b)	11.03

    i 

     

    

	 	 

 

 

	
        Trust
Indenture

Act Section
	
        Contingent
Convertible Capital Securities

Indenture Section

	§318(a)	1.08

 

NOTE: This reconciliation and tie shall
not, for any purpose, be deemed to be a part of this Contingent Convertible Capital Securities Indenture.

 

    ii 

     

    

TABLE
OF CONTENTS

 

 

Page

 

	Article 1
	Definitions and Other Provisions of General Application
	 
	Section 1.01.  Definitions	1
	Section 1.02.  Compliance Certificates and Opinions	22
	Section 1.03.  Form of Documents Delivered to Trustee	22
	Section 1.04.  Acts of Holders	23
	Section 1.05.  Notices, Etc. to Trustee and Company	24
	Section 1.06.  Notice to Holders; Waiver	25
	Section 1.07.  Language of Notices, Etc	26
	Section 1.08.  Conflict with Trust Indenture Act	26
	Section 1.09.  Effect of Headings and Table of Contents	26
	Section 1.10.  Successors and Assigns	26
	Section 1.11.  Separability Clause	26
	Section 1.12.  Benefits of Contingent Convertible Capital Securities Indenture	26
	Section 1.13.  Governing Law	27
	Section 1.14.  Saturdays, Sundays and Legal Holidays	27
	Section 1.15.  Appointment of Agent for Service	27
	Section 1.16.  Calculation Agent	28
	Section 1.17.  Waiver of Jury Trial	28
	Section 1.18.  Judgment Currency	28
	 	 
	Article 2
	Contingent Convertible Capital Security Forms
	 
	Section 2.01.  Forms Generally	29
	Section 2.02.  Form of Trustee’s Certificate of Authentication	29
	 	 
	Article 3
	The Contingent Convertible Capital Securities
	 
	Section 3.01.  Amount Unlimited; Issuable in Series	29
	Section 3.02.  Denominations	32
	Section 3.03.  Execution, Authentication, Delivery and Dating	32
	Section 3.04.  Temporary Contingent Convertible Capital Securities	33
	Section 3.05.  Registration, Registration of Transfer and Exchange	34
	Section 3.06.  Mutilated, Destroyed, Lost and Stolen Contingent Convertible Capital Securities	38
	Section 3.07.  Distributions. Rights Preserved	39
	Section 3.08.  Distributions Discretionary	40
	Section 3.09.  Restrictions on Payments	40
	Section 3.10.  Agreement to Distribution Cancellation	41
	Section 3.11.  Notice of Distribution Cancellation	41
	Section 3.12.  Persons Deemed Owners	42

    iii 

     

    

	Section 3.13.  Cancellation	43
	Section 3.14.  Computation of Distributions	43
	Section 3.15.  Cusip Numbers	43
	Section 3.16.  Additional Contingent Convertible Capital Securities	44
	Section 3.17.  Correction of Minor Defects in or Amendment of Contingent Convertible Capital Securities	44
	Section 3.18.  Payments Subject to Fiscal Laws	45
	Section 3.19.  Undertakings	45
	 	 
	Article 4
	Conversion of the Contingent Convertible Capital Securities
	 
	Section 4.01.  Conversion upon Trigger Event	46
	Section 4.02.  Conversion Price	48
	Section 4.03.  Anti-Dilution Adjustment of Floor Price	48
	Section 4.04.  Conversion Procedures. Settlement Shares	61
	Section 4.05.  Agreement and Waiver with Respect to Trigger Conversion	63
	Section 4.06.  Settlement Procedures	63
	Section 4.07.  Failure to Deliver a Delivery Notice	66
	Section 4.08.  Delivery of ADSs	67
	 	 
	Article 5
	Satisfaction and Discharge
	 
	Section 5.01.  Satisfaction and Discharge of Contingent Convertible Capital Securities Indenture	67
	Section 5.02.  Application of Trust Money	68
	Section 5.03.  Repayment to Company	68
	Section 5.04.  Reinstatement	 
	 	 
	Article 6
	Remedies
	 
	Section 6.01.  Enforcement Events	69
	Section 6.02.  Liquidation Distribution	69
	Section 6.03.  Limitation of Remedies Upon an Enforcement Event	70
	Section 6.04.  No Other Remedies and Other Terms	70
	Section 6.05.  Agreement with Respect to Limitation of Remedies for Breach of a Performance Obligation	71
	Section 6.06.  Trustee May File Proofs of Claim	71
	Section 6.07.  Trustee May Enforce Claims Without Possession of Contingent Convertible Capital Securities	72
	Section 6.08.  Application of Money Collected	72
	Section 6.09.  Limitation on Suits	73
	Section 6.10.  Unconditional Right of Holders to Receive Liquidation Preference and Distributions	73
	Section 6.11.  Restoration of Rights and Remedies	74
	Section 6.12.  Rights and Remedies Cumulative	74

    iv 

     

    

	Section 6.13.  Delay or Omission Not Waiver	74
	Section 6.14.  Control by Holders	74
	Section 6.15.  Undertaking for Costs	75
	Section 6.16.  Waiver of Past Enforcement Events	75
	 	 
	Article 7
	The Trustee
	 
	Section 7.01.  Certain Duties and Responsibilities	76
	Section 7.02.  Spanish Tax Procedures and Obligations of the Trustee	77
	Section 7.03.  Notice of Enforcement Events	77
	Section 7.04.  Certain Rights of Trustee	78
	Section 7.05.  Not Responsible for Recitals or Issuance of Contingent Convertible Capital Securities	80
	Section 7.06.  May Hold Contingent Convertible Capital Securities	80
	Section 7.07.  Money Held in Trust	80
	Section 7.08.  Compensation and Reimbursement	81
	Section 7.09.  Disqualification; Conflicting Interests	82
	Section 7.10.  Corporate Trustee Required; Eligibility	82
	Section 7.11.  Resignation and Removal; Appointment of Successor	82
	Section 7.12.  Acceptance of Appointment by Successor	84
	Section 7.13.  Merger, Conversion, Consolidation or Succession to Business	85
	Section 7.14.  Preferential Collection of Claims	86
	Section 7.15.  Appointment of Authenticating Agent	86
	Section 7.16.  Appointment of Additional Trustees	87
	Section 7.17.  Tax Withholding	88
	 	 
	Article 8
	Holders Lists and Reports by Trustee and Company
	 
	Section 8.01.  Company to Furnish Trustee Names and Addresses of Holders	88
	Section 8.02.  Preservation of Information; Communication to Holders	89
	Section 8.03.  Reports by Trustee	89
	Section 8.04.  Reports by Company	90
	 	 
	Article 9
	Consolidation, Merger, Conveyance or Transfer
	 
	Section 9.01.  Company May Consolidate, Etc., Only on Certain Terms	91
	Section 9.02.  Successor Corporation Substituted	92
	Section 9.03.  Assumption of Obligations	92
	 	 
	Article 10
	Supplemental Indentures
	 
	Section 10.01.  Supplemental Indenture without Consent of Holders	93
	Section 10.02.  Supplemental Indentures with Consent of Holders	95
	Section 10.03.  Execution of Supplemental Indentures	96

    v 

     

    

	Section 10.04.  Effect of Supplemental Indentures	96
	Section 10.05.  Conformity with Trust Indenture Act	96
	Section 10.06.  Reference in Contingent Convertible Capital Securities to Supplemental Indentures	97
	 	 
	Article 11
	Covenants
	 
	Section 11.01.  Payment of Liquidation Preference and Distributions	97
	Section 11.02.  Maintenance of Office or Agency	97
	Section 11.03.  Money for Distributions to be Held in Trust	98
	Section 11.04.  Additional Amounts	99
	Section 11.05.  Corporate Existence	102
	Section 11.06.  Statement as to Compliance	102
	 	 
	Article 12
	Redemption and Repurchase of Contingent Convertible Capital Securities
	 
	Section 12.01.  Applicability of Article	102
	Section 12.02.  Election to Redeem; Notice to Trustee	102
	Section 12.03.  Selection by Trustee of Contingent Convertible Capital Securities to be Redeemed	103
	Section 12.04.  Redemption Procedures; Notice of Redemption	103
	Section 12.05.  Deposit of Redemption Price	104
	Section 12.06.  Contingent Convertible Capital Securities Payable on Redemption Date	105
	Section 12.07.  Contingent Convertible Capital Securities Redeemed In Part	105
	Section 12.08.  Optional Redemption Due To Changes In Tax Treatment	105
	Section 12.09.  Optional Redemption Due To Capital Event	105
	Section 12.10.  Repurchase of Contingent Convertible Capital Securities	106
	Section 12.11.  Preconditions to Redemption and Optional Repurchase	106
	Section 12.12.  Cancelled Distributions Not Payable Upon Redemption	106
	 	 
	Article 13
	Subordination of Contingent Convertible Capital Securities
	 
	Section 13.01.  Contingent Convertible Capital Securities Subordinate to Senior Claims	107
	Section 13.02.  Waiver of Right of Set-Off	107
	Section 13.03.  Provisions Solely to Define Relative Rights	108
	Section 13.04.  Trustee to Effectuate Subordination	108
	Section 13.05.  Trustee Not Fiduciary for Senior Creditors	108
	Section 13.06.  Rights of Trustee as Senior Creditor; Preservation of Trustee’s Rights	109
	Section 13.07.  Article Applicable to Paying Agents	109
	 	 

    vi 

     

    

	Article 14
	Spanish Bail-In and Resolution Actions
	 
	Section 14.01.  Agreement and Acknowledgment with Respect to the Exercise of the Spanish Bail-in Power	109
	Section 14.02.  Agreement and Acknowledgement with Respect to the Exercise of Resolution Tools	111

    vii 

     

    

 

CONTINGENT CONVERTIBLE CAPITAL SECURITIES
INDENTURE, dated as of [●] between BANCO SANTANDER, S.A., a sociedad anónima incorporated under the laws of
the Kingdom of Spain (the “Company” or “Banco Santander”), having its principal executive
office located at Ciudad Grupo Santander, Avenida de Cantabria s/n, 28660 Boadilla del Monte, Madrid, Spain, and THE BANK OF NEW
YORK MELLON, acting through its London Branch, a banking corporation duly organized and existing under the laws of the State of
New York as Trustee (the “Trustee”), having its Corporate Trust Office at One Canada Square, London, E14 5AL,
United Kingdom.

 

RECITALS OF THE COMPANY

 

The Company has duly authorized the execution
and delivery of this Contingent Convertible Capital Securities Indenture to provide for the issuance from time to time of its Contingent
Convertible Capital Securities (herein called the “Contingent Convertible Capital Securities”), to be
issued in one or more series, represented by one or more Global Securities in registered form, or represented by definitive Contingent
Convertible Capital Securities in registered form, the amount and terms of each such series to be determined as hereinafter provided.

 

All things necessary to make this Contingent
Convertible Capital Securities Indenture a valid and binding agreement of the Company, in accordance with its terms, have been
done.

 

This Contingent Convertible Capital Securities
Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Securities
and Exchange Commission promulgated thereunder that are required to be part of this Contingent Convertible Capital Securities Indenture
and, to the extent applicable, shall be governed by such provisions.

 

NOW, THEREFORE, THIS CONTINGENT CONVERTIBLE
CAPITAL SECURITIES INDENTURE WITNESSETH:

 

For and in consideration of
the premises and the purchase of the Contingent Convertible Capital Securities by the Holders (as defined herein) thereof, it is
mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of Contingent Convertible Capital
Securities, as follows:

 

Article
1

Definitions and Other Provisions of General Application

 

Section 1.01.Definitions. For
all purposes of this Contingent Convertible Capital Securities Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

 

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

 

     

     

    

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

 

(c)all
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles”
with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted
in the Kingdom of Spain at the date of such computation and as applied by the Company;

 

(d)the
words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Contingent Convertible Capital Securities Indenture as a whole and not to any particular Article, Section or other
subdivision;

 

(e)any
reference to an “Article” or a “Section” refers to an Article or Section of this Contingent
Convertible Capital Securities Indenture; and

 

(f)the
word “or” is always used inclusively (for example, the phrase “A or B” means “A or B or both”,
not “either A or B but not both”).

 

Certain terms, used principally in certain
Articles hereof are defined in those Articles.

 

References to any act or statute or any
provision of any act or statute shall be deemed also to refer to any statutory modification or re-enactment thereof or any statutory
instrument, order or regulation made in accordance therewith or under such modification or re-enactment.

 

“Accounting Currency”
means euro or such other primary currency used in the presentation of the Group’s accounts from time to time;

 

“Act”,
when used with respect to any Holder, has the meaning specified in ‎Section
1.04.

 

“Additional
Amounts” has the meaning set forth in ‎Section
11.04, of this Agreement.

 

“Additional
Contingent Convertible Capital Securities” has the meaning set forth in Section 3.16.

 

“ADR Deposit Agreement”
means the Deposit Agreement dated as of June 1, 1987, amended and restated as of July 11, 2000, amended and restated on June 16,
2008, and as may be further amended from time to time between the Company, JPMorgan Chase Bank, N.A. and the holders from time
to time of American Depositary Receipts issued thereunder.

 

“ADS Depositary” means
J.P. Morgan Chase & Co., as the depositary under the ADR Deposit Agreement or any successor ADS depositary;

 

“Affiliate” of any specified
Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with
such

 

    2 

     

    

specified Person. For the purposes of this
definition, “control” when used with respect to any specified Person means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

 

“Agents” means the agents
appointed in accordance with this Contingent Convertible Capital Securities Indenture or applicable supplemental indenture;

 

“Agent Member” means
a member of, or participant in, any Depositary.

 

“Amounts Due” means the
Liquidation Preference, together with any accrued but unpaid Distributions, and Additional Amounts, if any, due on the Contingent
Convertible Capital Securities of any series. References to such amounts will include amounts that have become due and payable,
but which have not been paid, prior to the exercise of the Spanish Bail-in Power by the relevant resolution authority.

 

“Applicable Banking Regulations”
means at any time the laws, regulations, requirements, guidelines and policies relating to capital adequacy applicable to the Company
and/or the Group including, without limitation to the generality of the foregoing, those regulations, requirements, guidelines
and policies relating to capital adequacy then in effect of the Regulator (whether or not such requirements, guidelines or policies
have the force of law and whether or not they are applied generally or specifically to Banco Santander and/or the Group).

 

“Authenticating Agent”
means any Person authorized by the Trustee to act on behalf of the Trustee to authenticate Contingent Convertible Capital Securities.

 

“Authorized Newspaper”
means a newspaper, in an official language of the place of publication or in the English language, customarily published on each
day that is a Business Day in the place of publication, whether or not published on days that are Legal Holidays in the place of
publication, and of general circulation in each place in connection with which the term is used or in the financial community of
each such place. Where successive publications are required to be made in Authorized Newspapers, the successive publications may
be made in the same or in different newspapers in the same city meeting the foregoing requirements and in each case on any day
that is a Business Day in the place of publication.

 

“Available Distributable Items”
means, in respect of the payment of a Distribution at any time, those profits and reserves (if any) of the Company which are available,
in accordance with applicable law and regulation at that time, for the payment of such Distribution.

 

“Board of Directors”
means either the board of directors of the Company or any committee or Person duly authorized to act generally or in any particular
respect for the Company hereunder.

 

    3 

     

    

“Board Resolution”
means a copy of a resolution certified by the Secretary or a Deputy Assistant Secretary or any Person duly authorized by the
Company to have been duly adopted by the relevant Board of Directors or an authorized committee thereof and to be in full
force and effect on the date of such certification and delivered to the Trustee.

 

“BRRD” means Directive
2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment
firms, as amended or superseded from time to time.

 

“Business Day” means,
unless otherwise provided in the form of Contingent Convertible Capital Securities for any particular series pursuant to the provisions
of this Contingent Convertible Capital Securities Indenture, any day, other than Saturday or Sunday, that is neither a Legal Holiday
nor a day on which banking institutions are authorized or required by law, regulation or executive order to close in the City of
New York, London, Madrid or any other place or places where the Liquidation Preference of, or any Distributions on, or any Additional
Amounts with respect to the Contingent Convertible Capital Securities of that series are payable.

 

“Calculation Agent” means
the Trustee or such other person authorized by the Company as the party responsible for calculating the Distributions and/or such
other amount(s) from time to time in relation to any series of Contingent Convertible Capital Securities.

 

“Capital Event” means
a change in Spanish law, Applicable Banking Regulations or any change in the application or official interpretation thereof that
the Company determines results or is likely to result in the entire outstanding aggregate Liquidation Preference of the Contingent
Convertible Capital Securities of the relevant series ceasing to be included in, or counting towards, the Group’s or the
Company’s Tier 1 Capital.

 

“Cash
Dividend” means (i) any Dividend which is to be paid or made in cash (in whatever currency), but other than falling within
paragraph ‎(b) of the
definition of “Spin-Off” and (ii) any Dividend determined to be a Cash Dividend pursuant to paragraph ‎(a)
of the definition of “Dividend”, but a Dividend falling within paragraph ‎(c)
or ‎(d) of the definition
of “Dividend” shall be treated as being a Non-Cash Dividend.

 

“CET1 Capital” means
at any time, the Common Equity Tier 1 capital of the Company or the Group, respectively, as calculated by the Company in accordance
with Chapter 2 (Common Equity Tier 1 Capital) of Title I (Elements of own funds) of Part Two (Own Funds) of the CRR and/or Applicable
Banking Regulations at such time, including any applicable transitional, phasing in or similar provisions.

 

“CET1 ratio” means, at
any time, with respect to the Company or the Group, as the case may be, the reported ratio (expressed as a percentage) of the aggregate
amount (in the Accounting Currency) of the CET1 Capital of the Company or the Group, respectively, at such time divided by the
Risk Weighted Assets Amount of the Company or the Group, respectively, at such time, all as calculated by the Company.

 

    4 

     

    

“Clearing System” means
DTC or any of the European Clearing Systems, as applicable.

 

“Clearing System Contingent Convertible
Capital Securities” means, for so long as any Contingent Convertible Capital Securities of a series is represented by
a global Contingent Convertible Capital Security held by or on behalf of a Clearing System, any particular Liquidation Preference
of such series of the Contingent Convertible Capital Securities shown in the records of a Clearing System as being held by a holder
of the Contingent Convertible Capital Securities of such series.

 

“CNMV” means the Spanish
Market Securities Commission (Comisión Nacional del Mercado de Valores).

 

“Commission” means the
United States Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any
time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under
the Trust Indenture Act, then the body performing such duties at such time.

  

“Common Shares” means
ordinary shares in the capital of the Company, each of which confers on the holder one vote at general meetings of the Company
and is credited as fully paid up.

 

“Company” means the Person
named as the “Company” in the first paragraph of this Contingent Convertible Capital Securities Indenture until
a successor Person shall have become such pursuant to the applicable provisions of this Contingent Convertible Capital Securities
Indenture, and thereafter “Company” shall mean such successor Person.

  

“Company Request” and
“Company Order” mean, respectively, a written request or order, as the case may be, signed in the name of the
Company by any member of the Board of Directors or any officer or representative of the Company empowered to do so by Board Resolution,
and delivered to the Trustee.

 

“Contingent Convertible Capital
Securities” has the meaning set forth in the recitals of the Company herein and more particularly means any series of
Contingent Convertible Capital Securities issued, authenticated and delivered under this Contingent Convertible Capital Securities
Indenture.

 

“Contingent
Convertible Capital Securities Indenture” means this instrument as originally executed or as it may from time to time
be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms and forms of particular series of Contingent Convertible Capital Securities established pursuant to
‎Section 3.01.

 

“Contingent Convertible Capital
Security” means one of the Contingent Convertible Capital Securities.

 

“Contingent
Convertible Capital Security Register” and “Contingent Convertible Capital Security Registrar” have
the respective meanings specified in ‎Section
3.05.

 

“Conversion Price” means,
in respect of the Trigger Event Notice Date, if the Common Shares are:

 

(a)then admitted to trading on a Relevant
Stock Exchange, the higher of:

 

(i)the Current Market Price of a Common
Share, translated into U.S. dollars at the Prevailing Rate;

 

(ii)the Floor Price; and

 

    5 

     

    

(iii)the nominal value of a Common Share,
in each case on the Trigger Event Notice Date, translated into U.S. dollars at the Prevailing Rate; or

 

(b)not then admitted to trading on a
Relevant Stock Exchange, the higher of (ii) and (iii) above;

 

For the avoidance of doubt, the translation
into U.S. dollars at the Prevailing Rate described above shall in no circumstances imply that any Common Share will be issued at
a price of less than its nominal value expressed in the Share Currency.

 

“Conversion
Settlement Date” means the date on which the relevant Common Shares are to be delivered on Trigger Conversion, which
shall be as soon as practicable and in any event not later than one month following (or such other period as Applicable Banking
Regulations may require) the Trigger Event Notice Date and notice of the expected Conversion Settlement Date and of the Conversion
Price shall be given to Holders of Contingent Convertible Capital Securities in accordance with ‎Section
1.06 not more than 10 Business Days following the Trigger Event Notice Date. 

 

“Conversion Shares”
means the number of Common Shares to be issued on Trigger Conversion in respect of each Contingent Convertible Capital Security
of any series to be converted.

 

“Contingent
Convertible Capital Securities Indenture” means this instrument as originally executed or as it may from time to time
be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms and forms of particular series of Contingent Convertible Capital Securities established pursuant to
‎Section 3.01.

 

“Conversion Event” means
the cessation of use of (i) a Foreign Currency both by the government of the country which issued such currency and for the settlement
of transactions by a central bank or other public institutions of or within the international

 

    6 

     

    

banking community, or (ii) the euro both within
the European monetary system and for the settlement of transactions by public institutions of or within the European Union.

 

“Corporate Trust Office”
means the office of the Trustee at which its corporate trust business in London, England is principally administered, which office
as of the date hereof is located at One Canada Square, London E14 5AL (Attention: Corporate Trust Administration, facsimile: +44
20 7964 2536) or, if a different Trustee is appointed for a particular series of Contingent Convertible Capital Securities, the
address set forth in the supplemental indenture naming the Trustee for that particular series of Contingent Convertible Capital
Securities.

 

The term “corporation”
includes corporations, associations, companies, partnerships and business trusts.

 

“CRD IV” means any or
any combination of the CRD IV Directive, the CRR, and any CRD IV Implementing Measures.

 

“CRD IV Directive” means
Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions
and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives
2006/48/EC and 2006/49/EC or such other directive as may come into effect in place thereof.

 

“CRD IV Implementing Measures”
means any regulatory capital rules implementing the CRD IV Directive or the CRR which may from time to time be introduced, including,
but not limited to, delegated or implementing acts (regulatory technical standards) adopted by the European Commission, national
laws and regulations, and regulations and guidelines issued by the Regulator, the European Banking Authority or any other relevant
authority, which are applicable to the Company (on a standalone basis) or the Group (on a consolidated basis).

 

“CRR” means Regulation
(EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on the prudential requirements for credit institutions
and investment firms and amending Regulation (EU) No. 648/2012 or such other regulation as may come into effect in place thereof.

 

“Current Market Price”
means, in respect of a Common Share at a particular date, the average of the daily Volume Weighted Average Price of a Common Share
on each of the 5 consecutive dealing days ending on the dealing day immediately preceding such date (the “Relevant Period”)
(rounded if necessary to the nearest cent with 0.5 cents being rounded upwards); provided that if at any time during the Relevant
Period the Volume Weighted Average Price shall have been based on a price ex-Dividend (or ex-any other entitlement) and during
some other part of that period the Volume Weighted

 

 

    7 

     

    

Average Price shall have been based on a price
cum-Dividend (or cum-any other entitlement), then:

 

(a)if the Common Shares to be issued
and delivered do not rank for the Dividend (or entitlement) in question, the Volume Weighted Average Price on the dates on which
the Common Shares shall have been based on a price cum-Dividend (or cum-any other entitlement) shall for the purposes of this definition
be deemed to be the amount thereof reduced by an amount equal to the Fair Market Value of any such Dividend or entitlement per
Common Share as at the date of the first public announcement relating to such Dividend or entitlement; or

 

(b)if the Common Shares to be issued
and delivered do rank for the Dividend (or entitlement) in question, the Volume Weighted Average Price on the dates on which the
Common Shares shall have been based on a price ex-Dividend (or ex-any other entitlement) shall for the purposes of this definition
be deemed to be the amount thereof increased by an amount equal to the Fair Market Value of any such Dividend or entitlement per
Common Share as at the date of the first public announcement relating to such Dividend or entitlement,

 

and provided further that:

 

(i)if on each of the dealing days in
the Relevant Period the Volume Weighted Average Price shall have been based on a price cum-Dividend (or cum-any other entitlement)
in respect of a Dividend (or other entitlement) which has been declared or announced but the Common Shares to be issued and delivered
do not rank for that Dividend (or other entitlement) the Volume Weighted Average Price on each of such dates shall for the purposes
of this definition be deemed to be the amount thereof reduced by an amount equal to the Fair Market Value of any such Dividend
or entitlement per Common Share as at the date of first public announcement relating to such Dividend or entitlement; and

 

(ii)if the Volume Weighted Average Price
of a Common Share is not available on one or more of the dealing days in the Relevant Period (disregarding for this purpose the
proviso to the definition of Volume Weighted Average Price), then the average of such Volume Weighted Average Prices which are
available in the Relevant Period shall be used (subject to a minimum of two such prices) and if only one, or no, such Volume Weighted
Average Price is available in the Relevant Period the Current Market Price shall be determined in good faith by an Independent
Financial Adviser.

 

In making any calculation or determination
of Current Market Price, such adjustments (if any) shall be made as an Independent Financial Adviser determines in good faith appropriate
to reflect any consolidation or sub-division of the Common Shares or any issue of Common Shares by way of capitalisation of profits
or reserves, or any like or similar event.

 

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

 

    8 

     

    

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

 

“Delivery Notice” means
a notice in the form for the time being currently available from the specified office of any Paying and Conversion Agent or in
such form as may be acceptable to DTC from time to time, which contains the relevant account and related details for the delivery
of any ADSs or Common Shares and all relevant certifications and/or representations as may be required by applicable law and regulations
(or is deemed to constitute the confirmation thereof), and which are required to be delivered in connection with a conversion of
the Contingent Convertible Capital Securities and the delivery of the ADSs or Common Shares.

 

“Depositary”
means, with respect to any series of Contingent Convertible Capital Securities, a clearing agency that is designated to act as
Depositary for the Global Securities evidencing all or part of such Contingent Convertible Capital Securities as contemplated by
‎‎Section 3.01.

 

“Distribution”
means the non-cumulative cash distribution in respect of the Contingent Convertible Capital Securities and a Distribution Period
determined in accordance with ‎Section
3.07.

 

“Distribution Payment Date”
shall have the meaning as determined pursuant to Section 3.01.

 

“Distribution Period”
means the period from and including one Distribution Payment Date (or, in the case of the first Distribution Period, the date of
issuance) to but excluding the next Distribution Payment Date.

 

“Distribution
Rate” means the rate at which the Contingent Convertible Capital Securities accrue Distributions in accordance with ‎Section
3.07.

 

“Dividend” means any
dividend or distribution to Shareholders in respect of the Common Shares (including a Spin-Off) whether of cash, assets or other
property (and for these purposes a distribution of assets includes without limitation an issue of Common Shares or other Securities
credited as fully or partly paid up by way of capitalisation of profits or reserves), and however described and whether payable
out of share premium account, profits, retained earnings or any other capital or revenue reserve or account, and including a distribution
or payment to Shareholders upon or in connection with a reduction of capital provided that:

 

(a)where:

 

(i)a Dividend in cash is announced which
is to be, or may at the election of a Shareholder or Shareholders be, satisfied by the issue or delivery of Common Shares or

 

    9 

     

    

other property or assets, or where a capitalisation
of profits or reserves is announced which is to be, or may at the election of a Shareholder or Shareholders be, satisfied by the
payment of cash, then the Dividend in question shall be treated as a Cash Dividend of an amount equal to the greater of (A) the
Fair Market Value of such cash amount and (B) the Current Market Price of such Common Shares as at the first date on which the
Common Shares are traded ex-the relevant Dividend on the Relevant Stock Exchange or, as the case may be, the record date or other
due date for establishment of entitlement in respect of the relevant capitalisation or, as the case may be, the Fair Market Value
of such other property or assets as at the date of the first public announcement of such Dividend or capitalisation or, in any
such case, if later, the date on which the number of Common Shares (or amount of such other property or assets, as the case may
be) which may be issued and delivered is determined; or

 

(ii)there shall be any issue of Common
Shares by way of capitalisation of profits or reserves (including any share premium account or capital redemption reserve) where
such issue is or is expressed to be in lieu of a Dividend (whether or not a Cash Dividend equivalent or amount is announced or
would otherwise be payable to Shareholders, whether at their election or otherwise), the Dividend in question shall be treated
as a Cash Dividend of an amount equal to the Current Market Price of such Common Shares as at the first date on which the Common
Shares are traded ex-the relevant Dividend on the Relevant Stock Exchange or, as the case may be, the record date or other due
date for establishment of entitlement in respect of the relevant capitalisation or, in any such case, if later, the date on which
the number of Common Shares to be issued and delivered is determined;

 

(b)any
issue of Common Shares falling within Section 4.03(a) and Section 4.03(b) shall be disregarded;

 

(c)a purchase or redemption or buy back
of share capital of the Company by or on behalf of the Company in accordance with any general authority for such purchases or buy
backs approved by a general meeting of Shareholders and otherwise in accordance with the limitations prescribed under the Spanish
Companies Act for dealings generally by a company in its own shares shall not constitute a Dividend and any other purchase or redemption
or buy back of share capital of the Company by or on behalf of the Company or any member of the Group shall not constitute a Dividend
unless, in the case of a purchase or redemption or buy back of Common Shares by or on behalf of the Company or any member of the
Group, the weighted average price per Common Share (before expenses) on any one day (a “Specified Share Day”) in respect
of such purchases or redemptions or buy backs (translated, if not in the Share Currency, into the Share Currency at the Prevailing
Rate on such day) exceeds by more than 5 per cent. the average of the daily Volume Weighted Average Price of a Common Share on
the 5 dealing days immediately preceding the Specified Share Day or, where an announcement (excluding, for the avoidance of doubt
for these purposes, any general authority for such purchases, redemptions or buy backs approved by a general meeting of Shareholders
or any notice convening such a meeting of Shareholders) has been made of the intention to purchase, redeem or buy back Common Shares
at some future date at a specified price or where a tender offer is made, on the 5 dealing days immediately preceding the date
of

 

    10 

     

    

such announcement or the date of first public
announcement of such tender offer (and regardless of whether or not a price per Common Share, a minimum price per Common Share
or a price range or a formula for the determination thereof is or is not announced at such time), as the case may be, in which
case such purchase, redemption or buy back shall be deemed to constitute a Dividend in the Share Currency in an amount equal to
the amount by which the aggregate price paid (before expenses) in respect of such Common Shares purchased, redeemed or bought back
by the Company or, as the case may be, any member of the Group (translated where appropriate into the Share Currency as provided
above) exceeds the product of (i) 105 per cent. of the daily Volume Weighted Average Price of a Common Share determined as aforesaid
and (ii) the number of Common Shares so purchased, redeemed or bought back;

 

(d)if the Company or any member of the
Group shall purchase, redeem or buy back any depositary or other receipts or certificates representing Common Shares, the provisions
of paragraph ((c)) above shall be applied in respect thereof in such manner and with such modifications (if any) as shall be determined
in good faith by an Independent Financial Adviser; and

 

(e)where a dividend or distribution
is paid or made to Shareholders pursuant to any plan implemented by the Company for the purpose of enabling Shareholders to elect,
or which may require Shareholders, to receive dividends or distributions in respect of the Common Shares held by them from a person
other than (or in addition to) the Company, such dividend or distribution shall for the purposes of these Contingent Convertible
Capital Securities of any series be treated as a dividend or distribution made or paid to Shareholders by the Company, and the
provisions of the Contingent Convertible Capital Securities and the Contingent Convertible Capital Securities Indenture, including
references to the Company paying or making a dividend, shall be construed accordingly.

 

“Dollar” or “$”
or any similar reference means the coin or currency of the United States of America which as at the time of payment is legal tender
for the payment of public and private debts.

 

“DTC” means The Depository
Trust Company or its nominee or its or their successor.

 

“equity share capital”
means, in relation to any entity, its issued share capital excluding any part of that capital which, in respect of dividends and
capital, does not carry any right to participate beyond a specific amount in a distribution;

 

“Enforcement
Event” shall have the meaning given in ‎Section
6.01.

 

“EUR”, “€”
and “euro” means currency of the member states of the European Union (“EU”) that, from time to time,
have adopted the single currency in accordance with the treaty establishing the European Community, as amended from time to time.

 

 

    11 

     

    

“European Clearing System”
means Euroclear Bank S.A./N.V. (“Euroclear Bank”), as operator of the Euroclear System (“Euroclear”)
and/or Clearstream Banking, société anonyme (“Clearstream Luxembourg”);

 

“Exchange Act” means
the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder.

 

“Existing Shareholders”
has the meaning given in the definition of “Newco Scheme”.

 

“Fair Market Value” means,
with respect to any property on any date, the fair market value of that property as determined by an Independent Financial Adviser
in good faith provided that (a) the Fair Market Value of a Cash Dividend shall be the amount of such Cash Dividend; (b) the Fair
Market Value of any other cash amount shall be the amount of such cash; (c) where Securities, Spin-Off Securities, options, warrants
or other rights are publicly traded on a stock exchange or securities market of adequate liquidity (as determined by an Independent
Financial Adviser in good faith), the Fair Market Value (i) of such Securities or Spin-Off Securities shall equal the arithmetic
mean of the daily Volume Weighted Average Prices of such Securities or Spin-Off Securities and (ii) of such options, warrants or
other rights shall equal the arithmetic mean of the daily closing prices of such options, warrants or other rights, in the case
of both (i) and (ii) above during the period of 5 dealing days on the relevant stock exchange or securities market commencing on
such date (or, if later, the first such dealing day such Securities, Spin-Off Securities, options, warrants or other rights are
publicly traded) or such shorter period as such Securities, Spin-Off Securities, options, warrants or other rights are publicly
traded; and (d) where Securities, Spin-Off Securities, options, warrants or other rights are not publicly traded on a stock exchange
or securities market of adequate liquidity (as aforesaid), the Fair Market Value of such Securities, Spin-Off Securities, options,
warrants or other rights shall be determined by an Independent Financial Adviser in good faith, on the basis of a commonly accepted
market valuation method and taking account of such factors as it considers appropriate, including the market price per Common Share,
the dividend yield of a Common Share, the volatility of such market price, prevailing interest rates and the terms of such Securities,
Spin-Off Securities, options, warrants or other rights, including as to the expiry date and exercise price (if any) thereof. Such
amounts shall, in the case of (a) above, be translated into the Share Currency (if such Cash Dividend is declared or paid or payable
in a currency other than the Share Currency) at the rate of exchange used to determine the amount payable to Shareholders who were
paid or are to be paid or are entitled to be paid the Cash Dividend in the Share Currency; and in any other case, shall be translated
into the Share Currency (if expressed in a currency other than the Share Currency) at the Prevailing Rate on that date. In addition,
in the case of (a) and (b) above, the Fair Market Value shall be determined on a gross basis and disregarding any withholding or
deduction required to be made for or on account of tax, and disregarding any associated tax credit;

 

“Final
Cancellation Date” shall have the meaning given in ‎Section
4.06.

 

    12 

     

    

“Floor Price” means the
price per Common Share determined pursuant to Section 3.01, subject to adjustment in accordance with Section 4.03.

 

“Foreign Currency” means
the euro or any currency issued by the government of any country (or a group of countries or participating member states) other
than the United States of America which as at the time of payment is legal tender for the payment of public and private debts.

 

“Foreign Government Securities”
means with respect to Contingent Convertible Capital Securities, if any, of any series that are denominated in a Foreign Currency,
non-callable (i) direct obligations of the participating member state or government that issued such Foreign Currency for the payment
of which obligations its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting
as an agency or instrumentality of such participating member state or government, the payment of which obligations is unconditionally
guaranteed as a full faith and credit obligation of such participating member state or government. For the avoidance of doubt,
for all purposes hereof, euro shall be deemed to have been issued by each participating member state from time to time.

 

“Further Contingent Convertible
Capital Securities” means any securities which are contingently convertible into Common Shares of the Company pursuant
to their terms in the event that the CET1 ratio of the Company or the Group is less than a specified percentage.

 

“Global Security” means
one or more global certificates evidencing all or part of a series of Contingent Convertible Capital Securities, authenticated
and delivered to or on behalf of the Holder and registered in the name of the Holder or its nominee.

 

“Group” means Banco Santander,
S.A. and its consolidated subsidiaries.

 

“Holder” means a Person
in whose name a Contingent Convertible Capital Security in global or definitive form is registered in the Contingent Convertible
Capital Security Register.

 

“Iberclear” means the
Spanish clearing and settlement system (Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación
de Valores, S.A., Sociedad Unipersonal).

 

“Independent Financial Adviser”
means an independent financial institution of international repute appointed by the Company at its own expense.

 

“Initial Margin” means
the per cent per annum determined in accordance with Section 3.01.

 

“Law 11/2015” means
Law 11/2015, of June 18, for the recovery and resolution of credit institutions and investment firms (Ley 11/2015, de 18 de
junio, de recuperacion y resolucion de entidades de credito y empresas de servicios de inversion), as amended from time to
time.

 

    13 

     

    

“Legal Holiday”, with
respect to any Place of Payment or other location, means a Saturday, a Sunday or a day on which banking institutions in such Place
of Payment or other location are not authorized or obligated to be open.

 

“Liquidation Distribution”
means the Liquidation Preference per Contingent Convertible Capital Security plus, if applicable, where not cancelled pursuant
to, or otherwise subject to the limitations on payment set out in Section 3.08 and ‎Section
3.09, an amount equal to accrued and unpaid Distributions for the then current Distribution Period to (but excluding) the date
of payment of the Liquidation Distribution.

 

“Liquidation Event” shall
have the meaning set forth in Section 6.01.

 

“Liquidation
Preference” shall have the meaning as determined pursuant to ‎Section
3.01.

 

“Maximum Distributable Amount”
means any maximum distributable amount required to be calculated in accordance with article 48 of Law 10/2014 and articles 73 and
74 of Royal Decree 84/2015, each interpreted in light of article 141 of the CRD IV Directive.

 

“Newco Scheme” means
a scheme of arrangement or analogous proceeding (“Scheme of Arrangement”) which effects the interposition of
a limited liability company (“Newco”) between the Shareholders of the Company immediately prior to the Scheme
of Arrangement (the “Existing Shareholders”) and the Company, provided that:

 

(a)only ordinary shares of Newco or
depositary or other receipts or certificates representing ordinary shares of Newco are issued to Existing Shareholders;

 

(b)immediately after completion of the
Scheme of Arrangement the only shareholders of Newco or, as the case may be, the only holders of depositary or other receipts or
certificates representing ordinary shares of Newco, are Existing Shareholders and the Voting Rights in respect of Newco are held
by Existing Shareholders in the same proportions as their respective holdings of such Voting Rights immediately prior to the Scheme
of Arrangement;

 

(c)immediately after completion of the
Scheme of Arrangement, Newco is (or one or more wholly-owned Subsidiaries of Newco are) the only ordinary shareholder (or shareholders)
of the Company;

 

(d)all Subsidiaries of the Company immediately
prior to the Scheme of Arrangement (other than Newco, if Newco is then a Subsidiary) are Subsidiaries of the Company (or of Newco)
immediately after completion of the Scheme of Arrangement; and

 

(e)immediately after completion of the
Scheme of Arrangement, the Company (or Newco) holds, directly or indirectly, the same percentage of the ordinary share capital
and equity share capital of those Subsidiaries as was held by the Company immediately prior to the Scheme of Arrangement.

 

    14 

     

    

“Non-Cash Dividend” means
any Dividend which is not a Cash Dividend, and shall include a Spin-Off.

 

“Officer’s Certificate”
means a certificate signed by any member of the Board of Directors, the Secretary or the Deputy Secretary of the Board of Directors,
a Vice President or any officer or any other Person duly authorized by the Company, that complies with the requirements of Section
314(e) of the Trust Indenture Act and is delivered to the Trustee.

 

“Opinion of Counsel”
means a written opinion of legal advisors, who may be an employee of or legal advisors for the Company or other legal advisors
who shall be reasonably acceptable to the Trustee and that, if required by the Trust Indenture Act, complies therewith.

 

“Outstanding”, when used
with respect to Contingent Convertible Capital Securities or any series of Contingent Convertible Capital Securities means, as
of the date of determination, all Contingent Convertible Capital Securities or all Contingent Convertible Capital Securities of
such series, as the case may be, theretofore authenticated and delivered under this Contingent Convertible Capital Securities Indenture,
except:

 

(i)Contingent Convertible
Capital Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;

 

(ii)Contingent
Convertible Capital Securities which have been paid pursuant to ‎Section
12.06 or in exchange for or in lieu of which other Contingent Convertible Capital Securities have been authenticated and delivered
pursuant to this Contingent Convertible Capital Securities Indenture, other than any such Contingent Convertible Capital Securities
in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Contingent Convertible Capital
Securities are held by a bona fide purchaser in whose hands such Contingent Convertible Capital Securities are valid obligations
of the Company;

 

provided, however, that in determining whether the Holders
of the requisite Liquidation Preference of the Outstanding Contingent Convertible Capital Securities of any series have given any
request, demand, authorization, direction, notice, consent or waiver hereunder, (i) the Liquidation Preference of a Contingent
Convertible Capital Security denominated in a Foreign Currency shall be the Dollar equivalent, determined on the date of original
issuance of such Contingent Convertible Capital Security, of the Liquidation Preference of such Contingent Convertible Capital
Security; and (ii) Contingent Convertible Capital Securities beneficially owned by the Company or any other obligor upon the Contingent
Convertible Capital Securities or any Affiliate of the Company or of

 

    15 

     

    

such other obligor shall be disregarded and deemed not to be
Outstanding except that, in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Contingent Convertible Capital Securities which a Responsible Officer of the Trustee
actually knows to be so beneficially owned shall be so disregarded; provided, further, however, that Contingent Convertible Capital
Securities so beneficially owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Contingent Convertible Capital Securities
and that the pledgee is not the Company or any other obligor upon the Contingent Convertible Capital Securities or any Affiliate
of the Company or of such other obligor.

 

“Parity Securities” means
any preferred securities (participaciones preferentes) issued under Law 13/1985 and/or RD-L 14/2013 and/or Law 10/2014,
such as the Contingent Convertible Capital Securities, and/or under the CRR from time to time by the Company or by any Subsidiary
and which are guaranteed by the Company or any preferential participations, preferential shares or preference shares (acciones
preferentes) ranking pari passu with any preferred securities (participaciones preferentes) issued from time
to time by the Company or by any Subsidiary and which are guaranteed by the Company or any other instrument issued or guaranteed
by the Company ranking pari passu with the Contingent Convertible Capital Securities.

 

“Paying and Conversion Agent”
means the Principal Paying Agent and any other paying and conversion agent appointed in accordance with the Contingent Convertible
Capital Securities Indenture or any supplemental indenture and includes any successors thereto appointed from time to time in accordance
with the Contingent Convertible Capital Securities Indenture or any supplemental indenture.

 

“Payment Business Day”
means (i) a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including
dealing in foreign exchange and foreign currency deposits) in New York City and London and (ii) in the case of Contingent Convertible
Capital Securities in definitive form only, a day on which commercial banks and foreign exchange markets settle payments and are
open for general business (including dealing in foreign exchange and foreign currency deposits) in the relevant place of presentation.

 

“Payment
Statement” means the statement to be delivered to the Company by the Trustee, substantially in the form set forth in
Exhibit I to Appendix 1, pursuant to ‎Section
7.02.

 

“Person” means any individual,
corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or
any agency or political subdivision thereof.

 

“Place of Payment”, when
used with respect to the Contingent Convertible Capital Securities of any series, means the place or places where the Liquidation
Preference and Distributions on the Contingent Convertible Capital Securities of that

 

    16 

     

    

series are payable
as specified pursuant to ‎Section
3.01 or, if not so specified, as specified in ‎Section
11.02.

 

“Predecessor
Security” of any particular Contingent Convertible Capital Security means every previous Contingent Convertible Capital
Security evidencing all or a portion of the same debt as that evidenced by such particular Contingent Convertible Capital Security;
and, for the purposes of this definition, any Contingent Convertible Capital Security authenticated and delivered under ‎Section
3.06 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Contingent Convertible Capital Security shall be deemed
to evidence the same debt as the mutilated, destroyed, lost or stolen Contingent Convertible Capital Security.

 

“Prevailing Rate” means,
in respect of any currencies on any day, the spot rate of exchange between the relevant currencies prevailing as at 12 noon (London
time) on that date as appearing on or derived from Reuters page ECB37 or, if not available, from any other Reference Page or, if
such a rate cannot be determined at such time, the rate prevailing as at 12 noon (London time) on the immediately preceding day
on which such rate can be so determined or, if such rate cannot be so determined by reference to the Reference Page, the rate determined
in such other manner as an Independent Financial Adviser in good faith shall prescribe.

 

“Principal Paying Agent”
means any Person (which may include the Company) authorized by the Company to pay the Liquidation Preference of, or Distributions
on, or any Additional Amounts with respect to, the contingent convertible capital securities of any series on behalf of the Company.
Except as otherwise specified as contemplated by ‎‎Section
3.01 hereof, The Bank of New York Mellon, acting through its London Branch will act as Principal Paying Agent in respect of the
Contingent Convertible Capital Securities of any series.

 

“Recognised Stock Exchange”
means a regulated regularly operating, recognised stock exchange or securities market in an OECD member state.

 

“Redemption Date”, when
used with respect to any Contingent Convertible Capital Security to be redeemed, means the date fixed for such redemption by or
pursuant to this Contingent Convertible Capital Securities Indenture.

 

“Redemption Price” means,
per Contingent Convertible Capital Security, the Liquidation Preference plus, if applicable, where not cancelled pursuant to, or
otherwise subject to the limitations on payment set out in Section 3.08 and ‎Section
3.09, an amount equal to accrued and unpaid Distributions for the then current Distribution Period to (but excluding) the date
fixed for redemption of the Contingent Convertible Capital Securities of the relevant series.

 

“Regular Record Date”
for the Distribution payable on any Distribution Date on registered Contingent Convertible Capital Securities of any series means
the date specified for the purpose pursuant to ‎Section 3.01.

 

“regulated entity” means
any entity to which Law 11/2015 applies as provided under article 1.2 of Law 11/2015, as amended from time to time, which includes,
certain credit institutions, investment firms, and certain of their parent or holding companies;

 

 

    17 

     

    

 

“Regulator” means the
European Central Bank or such other or successor authority exercising primary bank supervisory authority, in each case with respect
to prudential matters in relation to the Company and/or the Group;

 

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

  

“relevant resolution authority”
means the Spanish Fund for the Orderly Restructuring of Banks, the European Single Resolution Mechanism, as the case may be,
according to Law 11/2015, and any other entity with the authority to exercise the Spanish Bail-in Power from time to time.

 

“Relevant Stock Exchange”
means the Spanish Stock Exchanges or if at the relevant time the Common Shares are not at that time listed and admitted to trading
on the Spanish Stock Exchanges, the principal stock exchange or securities market on which the Common Shares are then listed, admitted
to trading or quoted or accepted for dealing.

 

“Responsible
Officer”, when used with respect to the Trustee, means any officer of the Trustee assigned to or working in the Corporate
Trust Administration unit (or any successor unit) of the Trustee located at the Corporate Trust Office of the Trustee, who shall
have direct responsibility for the administration of this Contingent Convertible Capital Securities Indenture and, for the purposes
of ‎Section 7.01(c)(ii),
shall also include any other officer of the Trustee to whom any corporate trust matter is referred because of such officer’s
knowledge of and familiarity with the particular subject.

 

“Risk Weighted Assets Amount”
means at any time, with respect to the Company or the Group, as the case may be, the aggregate amount (in the Accounting Currency)
of the risk weighted assets of the Company or the Group, respectively, calculated in accordance with Applicable Banking Regulations
at such time.

 

“Scheme of Arrangement”
has the meaning given in the definition of “Newco Scheme”.

 

“Securities” means any
securities including, without limitation, shares in the capital of the Company, or options, warrants or other rights to subscribe
for or purchase or acquire shares in the capital of the Company.

 

“Securities Act” means
the United States Securities Act of 1933, as amended.

 

“Selling Agent” shall
have the meaning set forth in Section 4.07.

  

“Settlement Shares Depository”
means a reputable independent financial institution, trust company or similar entity to be appointed by the Company on or prior
to any date when a function ascribed to the Settlement Shares Depository is required to be performed to perform such functions
and who will hold Common Shares in Iberclear or any of its participating entities in a designated trust or custody account for
the benefit of

 

    18 

     

    

the holders of the Contingent Convertible
Capital Securities of any series and otherwise on terms consistent with the terms of the Contingent Convertible Capital Securities
and the Contingent Convertible Capital Securities Indenture.

 

“Share Currency” means
euro or such other currency in which the Common Shares are quoted or dealt in on the Relevant Stock Exchange at the relevant time
or for the purposes of the relevant calculation or determination.

 

“Shareholders” means
the holders of Common Shares.

 

“Spanish 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 Kingdom of Spain,
relating to (i) the transposition of BRRD including but not limited to Law 11/2015, and up to 31 December 2015 (inclusive),
Law 9/2012, of 14 November, on restructuring and resolution of credit institutions, (ii) the SRM Regulation and (iii) the
instruments, rules and standards created thereunder, pursuant to which 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).

 

“Spanish Companies Act”
means the Royal Decree Legislative 1/2010, of 2 July 2010, approving the consolidated text of the Spanish Companies Act (Ley
de Sociedades de Capital).

 

“Spanish Insolvency Law”
means Law 22/2003 (Ley Concursal) of 9 July 2003 regulating insolvency proceedings in Spain, or an equivalent legal provision
which replaces it in the future.

 

“Spanish Stock Exchanges”
means the Madrid, Barcelona, Bilbao and Valencia stock exchanges and the Automated Quotation System -Continuous Market (Sistema
de Interconexión Bursátil -Mercado Continuo (SIBE)).

 

“Specified
Date” has the meanings given in clauses ‎(a)(iv),
‎ (a)(vi), ‎(a)(vii),
‎and (a)(viii) of ‎Section
4.03, as applicable.

 

“Spin-Off” means:

 

(a)a distribution of Spin-Off Securities
by the Company to Shareholders as a class; or

 

(b)any issue, transfer or delivery of
any property or assets (including cash or shares or other securities of or in or issued or allotted by any entity) by any entity
(other than the Company) to Shareholders as a class or, in the case of or in connection with a Newco Scheme, Existing Shareholders
as a class (but excluding the issue and allotment of ordinary shares (or depositary or other receipts or certificates representing
such ordinary shares) by Newco to Existing Shareholders as a class), pursuant in each case to any arrangements with the Company
or any member of the Group.

 

    19 

     

    

“Spin-Off Securities”
means equity share capital of an entity other than the Company or options, warrants or other rights to subscribe for or purchase
equity share capital of an entity other than the Company.

 

“SRM Regulation” means
Regulation (EU) No. 806/2014 of the European Parliament and of the Council of 15 July 2014, establishing
uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of
the Single Resolution Mechanism and the Single Resolution Fund and amending Regulation (EU) No. 1093/2010, as amended or superseded from time to time.

 

“Subsidiary” means any
entity over which the Company may have, directly or indirectly, control in accordance with Applicable Banking Regulations;

 

“Tax Event” in respect
of any series of Contingent Convertible Capital Securities, means that as a result of any change in the laws or regulations of
Spain or in either case of any political subdivision thereof or any authority or agency therein or thereof having power to tax
or in the interpretation or administration of any such laws or regulations which becomes effective on or after the date of issue
of the contingent convertible capital securities of such series the Company shall determine that (a) the Company would not be entitled
to claim a deduction in computing taxation liabilities in Spain in respect of any Distribution to be made on the next Distribution
Payment Date or the value of such deduction to the Company would be materially reduced, or (b) the Company would be required to
pay Additional Amounts pursuant to Section 11.04, or (c) the applicable tax treatment of the Contingent Convertible Capital Securities
of such series changes.

 

“Tier 1 Capital” means
at any time, with respect to the Company or the Group, as the case may be, the Tier 1 capital of the Company or the Group, respectively,
as calculated by the Company in accordance with Chapters 1, 2 and 3 (Tier 1 Capital, Common Equity Tier 1 Capital and Additional
Tier 1 capital) of Title I (Elements of own funds) of Part Two (Own Funds) of the CRR and/or Applicable Banking Regulations at
such time, including any applicable transitional, phasing in or similar provisions;

 

“Tier 2 Capital” means
at any time, with respect to the Company or the Group, as the case may be, the Tier 2 capital of the Company or the Group, respectively,
as calculated by the Company in accordance with Chapter 4 (Tier 2 capital) of Title I (Elements of own funds) of Part Two (Own
Funds) of the CRR and/or Applicable Banking Regulations at such time, including any applicable transitional, phasing in or similar
provisions.

 

“Trigger Conversion”
has the meaning given in Section 4.01.

 

“Trigger
Event” means if, at any time, as determined by the Company, the CET1 ratio of the Company or the Group calculated in
accordance with Applicable Banking Regulations is less than 5.125 per cent.

 

    20 

     

    

“Trigger
Event Notice” shall have the meaning given in ‎Section
4.04.

 

“Trigger Event Notice Date”
means the date on which a Trigger Event Notice is given.

 

“Trustee” means the Person
named as the “Trustee” in the first paragraph of this instrument until a successor trustee shall have become such pursuant
to the applicable provisions of this Contingent Convertible Capital Securities Indenture, and thereafter “Trustee”
shall mean the Person who is then the Trustee hereunder, or, if a different Trustee is appointed for a particular series of Contingent
Convertible Capital Securities, the Trustee named in the relevant indenture supplemental hereto as the Trustee for that particular
series of Contingent Convertible Capital Securities and if at any time there is more than one such Person, “Trustee”
shall mean and include each such Person; and “Trustee” as used with respect to the Contingent Convertible Capital Securities
of any series shall mean the Trustee with respect to the Contingent Convertible Capital Securities of such series.

 

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended, as in effect at the date as of which this instrument
was executed, except as provided in ‎Section
10.05.

 

“United
States” and “U.S.” mean the United States of America and, except in the case of Sections ‎7.10
and ‎7.15, its territories
and possessions.

 

“U.S.$” and “U.S.
dollars” means the lawful currency of the United States of America.

 

“U.S. Government Securities Business
Day” means any day except for a Saturday, Sunday or a day on which the Securities Industry and Financial Markets Association
recommends that the fixed income departments of its members be closed for the entire day for the purposes of trading in U.S. government
securities.

 

“Volume Weighted Average Price”
means, in respect of a Common Share, Security or, as the case may be, a Spin-Off Security on any dealing day, the order book volume-weighted
average price of a Common Share, Security or, as the case may be, a Spin-Off Security published by or derived (in the case of a
Common Share) from the Reference Page or (in the case of a Security (other than Common Shares) or Spin-Off Security) from the principal
stock exchange or securities market on which such Securities or Spin-Off Securities are then listed or quoted or dealt in, if any
or, in any such case, such other source as shall be determined in good faith to be appropriate by an Independent Financial Adviser
on such dealing day, provided that if on any such dealing day such price is not available or cannot otherwise be determined as
provided above, the Volume Weighted Average Price of a Common Share, Security or a Spin-Off Security, as the case may be, in respect
of such dealing day shall be the Volume Weighted Average Price, determined as provided above, on the immediately preceding dealing
day on which the same can be so determined or as an Independent Financial Adviser might otherwise determine in good faith to be
appropriate.

 

    21 

     

    

“Voting Rights” means
the right generally to vote at a general meeting of Shareholders of the Company (irrespective of whether or not, at the time, stock
of any other class or classes shall have, or might have, voting power by reason of the happening of any contingency).

 

Section 1.02.Compliance Certificates
and Opinions. Unless otherwise expressly provided for in this Contingent Convertible Capital Securities Indenture, upon any
application or request by the Company to the Trustee to take any action under any provision of this Contingent Convertible Capital
Securities Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent,
if any, provided for in this Contingent Convertible Capital Securities Indenture relating to the proposed action have been complied
with and an Opinion of Counsel stating that in the opinion of the legal advisor rendering such opinion all such conditions precedent,
if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such
documents is specifically required by any provision of this Contingent Convertible Capital Securities Indenture relating to such
particular application or request, no additional certificate or opinion need be furnished.

 

Every certificate
or opinion with respect to compliance with a condition or covenant provided for in this Contingent Convertible Capital Securities
Indenture (other than ‎Section
11.06) shall include:

 

(a)a
statement that each Person signing such certificate or opinion has read such covenant or condition and the definitions herein relating
thereto;

 

(b)a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;

 

(c)a
statement that, in the opinion of each such Person, he has made such examination or investigation as is necessary to enable him
to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(d)a
statement as to whether, in the opinion of each such Person, such condition or covenant has been complied with.

 

Section 1.03.Form of Documents Delivered
to Trustee. In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be
so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and
one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one
or several documents.

 

Any certificate or opinion of an officer
of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, legal
advisors, unless such officer knows, or in the exercise of reasonable care should know,

 

    22 

     

    

that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion or representations are based are erroneous. Any such certificate
or opinion of, or representations by, legal advisors may be based, insofar as it relates to factual matters, upon a certificate
or opinion of, or representations by, an officer or officers of the Company stating that the information with respect to such factual
matters is in the possession of the Company, unless such legal advisors know, or in the exercise of reasonable care should know,
that the certificate or opinion or representation with respect to such matters is erroneous.

 

Where any Person is required to make, give
or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Contingent
Convertible Capital Securities Indenture, they may, but need not, be consolidated and form one instrument.

 

Section 1.04.Acts of Holders.

 

(a)Any
request, demand, authorization, direction, notice, consent, waiver or other action provided by this Contingent Convertible Capital
Securities Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially
similar tenor signed by such Holders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and, when it is hereby
expressly required, to the Company. Such instrument or instruments (and the action embodied therein and evidenced thereby) are
herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments. Proof of execution
of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Contingent Convertible
Capital Securities Indenture and (subject to ‎Section
7.01) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section.

 

(b)The
fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying
that the individual signing such instrument or writing acknowledged to him the execution thereof. When such execution is by a signer
acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of
his authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the
same, may also be proved in any other manner which the Trustee deems sufficient.

 

(c)The
ownership of  Contingent Convertible Capital Securities shall be proved by the Contingent Convertible Capital Security
Register.

 

(d)Any
request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Contingent Convertible Capital
Security shall bind every future Holder of the same Contingent Convertible Capital Security and the Holder of every Contingent
Convertible Capital Security issued upon the registration of transfer

 

    23 

     

    

thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee, any Contingent Convertible Capital Security
Registrar, any Paying Agent, any Authenticating Agent or the Company in reliance thereon, whether or not notation of such action
is made upon such Contingent Convertible Capital Security or such other Contingent Convertible Capital Security.

 

(e)If
the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act,
the Company may, at its option, by or pursuant to a Board Resolution or an Officer’s Certificate, fix in advance a record
date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver
or other Act, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization,
direction, notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of record at
the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of Outstanding Contingent Convertible Capital Securities have authorized or agreed or consented to such request,
demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Contingent Convertible
Capital Securities shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders
on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Contingent Convertible
Capital Securities Indenture not later than six months after the record date.

 

Section 1.05.Notices, Etc. to Trustee
and Company. Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided
or permitted by this Contingent Convertible Capital Securities Indenture to be made upon, given or furnished to, or filed with,

 

(a)the
Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided)
if made, given, furnished or filed in writing (which may be via facsimile or email delivery of a copy of such document) to the
Trustee at its Corporate Trust Office, and the Trustee agrees to accept and act upon facsimile transmission or email delivery of
written instructions pursuant to this Contingent Convertible Capital Securities Indenture, provided, however, that (x) the party
providing such written instructions, subsequent to such transmission of written instructions, shall provide the originally executed
instructions or directions to the Trustee in a timely manner, and (y) such originally executed instructions or directions shall
be signed by an authorized representative of the party providing such instructions or directions; or

 

(b)the
Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided)
if in writing and mailed, first-class air mail postage prepaid, to the Company, to the address of its principal office specified
in the first paragraph of this Contingent Convertible Capital Securities Indenture or at any other another address previously furnished
in writing to the Trustee by the Company.

 

    24 

     

    

The Trustee agrees to accept and act upon
instructions or directions pursuant to this Contingent Convertible Capital Securities Indenture sent by unsecured e-mail, portable
document format (PDF), facsimile transmission or other similar unsecured electronic methods, provided, however, that the Trustee
shall have received from the Company an incumbency certificate listing persons designated to give such instructions or directions
and containing the titles and specimen signatures of such designated persons, which such incumbency certificate shall be amended
and replaced whenever a person is to be added or deleted from the listing, and provided further that the Trustee shall have no
obligation or responsibility to confirm or verify that the instruction or direction was in fact sent by, or on behalf of, a person
so designated to give instructions or directions. If the Company elects to give the Trustee e-mail or facsimile instructions (or
instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee's
understanding of such instructions shall be deemed controlling. The Trustee shall not be liable for any losses, costs or expenses
arising directly or indirectly from the Trustee's reliance upon and compliance with such instructions notwithstanding a conflict
or inconsistency between such instructions and a subsequent written instruction. The Company agrees to assume all risks arising
out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the
risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.

 

Section 1.06.Notice
to Holders; Waiver. When this Contingent Convertible Capital Securities Indenture provides for notice to Holders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly provided), if given in writing and mailed, first-class
postage prepaid, to each Holder of a Contingent Convertible Capital Security affected by such event in the manner and to the extent
provided in Section 313(c) of the Trust Indenture Act with respect to reports pursuant to ‎Section
8.03(a).

 

For so long as the Contingent Convertible
Capital Securities of any series are represented by Global Securities, the Company will deliver a copy of all notices with respect
to such series to the Holder (if the address of such Holder is known to the Company).

 

When notice to Holders of Contingent Convertible
Capital Securities is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other Holders. Where this Contingent Convertible Capital Securities
Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be
filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon
such waiver. In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable
to give such notice by mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

 

    25 

     

    

Section 1.07.Language of Notices,
Etc. Any notice under this Contingent Convertible Capital Securities Indenture shall be in the English language, except that,
if the Company so elects, any published notice may be in an official language of the country of publication.

 

Section 1.08.Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof
which is required to be included in this Contingent Convertible Capital Securities Indenture by any of the provisions of the Trust
Indenture Act, such required provision of the Trust Indenture Act shall control. If at any future time any provision required
to be included herein by the Trust Indenture Act as in force at the date as of which this Contingent Convertible Capital Securities
Indenture was executed or any limitation imposed by the Trust Indenture Act at such date on any provision otherwise included herein
would not be so required or imposed (in whole or in part) if this Contingent Convertible Capital Securities Indenture were executed
at such future time, the Company and the Trustee may enter into one or more indentures supplemental hereto pursuant to ‎Section
10.01 to change or eliminate (in whole or in part) such provision or limitation of this Contingent Convertible Capital Securities
Indenture in conformity with the requirements of the Trust Indenture Act as then in force, except that (subject to ‎Article
10) no provision or limitation required to be included herein by Sections 310(a)(1) and (a)(2), 315(a), (c), (d)(l), (d)(2), (d)(3)
and (e), 316(a)(1)(A), (a)(l)(B), (a)(2), (a) (last sentence) and (b) of the Trust Indenture Act as in force at the date as of
which this Contingent Convertible Capital Securities Indenture was executed may be so changed or eliminated.

 

Section 1.09.Effect of Headings and
Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only and shall not
affect the construction hereof.

 

Section 1.10.Successors and Assigns.
All covenants and agreements in this Contingent Convertible Capital Securities Indenture by the Company shall bind its successors
and assigns, whether so expressed or not.

 

Section 1.11.Separability Clause.
In case any provision in this Contingent Convertible Capital Securities Indenture or in the Contingent Convertible Capital Securities
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

 

Section 1.12.Benefits of Contingent
Convertible Capital Securities Indenture. Nothing in this Contingent Convertible Capital Securities Indenture or in the Contingent
Convertible Capital Securities, express or implied, shall give to any Person, other than the parties hereto and any Contingent
Convertible Capital Securities Registrars or Paying Agent or Calculation Agent with respect to any Contingent Convertible Capital
Securities and their successors hereunder, and the Holders of Contingent Convertible Capital Securities, any benefit or any legal
or equitable right, remedy or claim under this Contingent Convertible Capital Securities Indenture.

 

    26 

     

    

Section 1.13.Governing
Law. This Contingent Convertible Capital Securities Indenture and the Contingent Convertible Capital Securities shall be governed
by and construed in accordance with the laws of the State of New York, except for ‎Section
13.01, which shall be governed by and construed in accordance with the laws of the Kingdom of Spain, and except that the authorization
and execution of this Contingent Convertible Capital Securities Indenture, the Contingent Convertible Capital Securities shall
be governed by (in addition to the laws of the State of New York relevant to execution) the respective jurisdictions of organization
of the Company and the Trustee, as the case may be. 

 

Section 1.14.Business Days and Legal
Holidays. The terms of the Contingent Convertible Capital Securities shall provide that, in any case where any Distribution
Date or Redemption Date of a Contingent Convertible Capital Security shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Contingent Convertible Capital Securities Indenture or the Contingent Convertible
Capital Securities other than a provision in the Contingent Convertible Capital Securities that specifically states that such provision
shall apply in lieu of this Section) payments of Distributions, if any, (and premium, if any) or Liquidation Preference and the
exchange of the Contingent Convertible Capital Security need not be made at such Place of Payment on such date, but may be made
on the next succeeding Business Day at such Place of Payment (or such other Business Day as shall be provided in such Contingent
Convertible Capital Security) with the same force and effect as if made on such Distribution Date or Redemption Date, provided
that no Distribution shall accrue for the period from and after such Distribution Date or Redemption Date, as the case may be.

 

Section 1.15. Appointment
of Agent for Service. The Company has designated and appointed Banco Santander, S.A., New York Branch, 45 E. 53rd
Street, New York, New York 10022, as its authorized agent (the “Authorized Agent”), as its authorized agent upon which
process may be served in any suit or proceeding in any Federal or State court in the Borough of Manhattan, The City of New York
arising out of or relating to the Contingent Convertible Capital Securities or this Contingent Convertible Capital Securities
Indenture, but for that purpose only, and agrees that service of process upon said Authorized Agent shall be deemed in every respect
effective service of process upon it in any such suit or proceeding in any Federal or State court in the Borough of Manhattan,
The City of New York, New York. Such appointment shall be irrevocable so long as any of the Contingent Convertible Capital Securities
remain Outstanding until the appointment of a successor by the Company and such successor’s acceptance of such

 

    27 

     

    

appointment.
Upon such acceptance, the Company shall notify the Trustee of the name and address of such successor. The Company further agrees
to take any and all action, including the execution and filing of any and all such documents and instruments, as may be necessary
to continue such designation and appointment of said Authorized Agent in full force and effect so long as any of the Contingent
Convertible Capital Securities shall be Outstanding. The Trustee shall not be obligated and shall have no responsibility with
respect to any failure by the Company to take any such action. The Company hereby irrevocably submits (for the purposes of any
such suit or proceeding) to the non-exclusive jurisdiction of any such court in which any such suit or proceeding is so instituted,
and waives, to the extent it may effectively do so, any right to trial by jury and any objection it may have now or hereafter
to the laying of the venue of any such suit or proceeding. To the extent that the Company may be entitled, in any jurisdiction
in which judicial proceedings may at any time be commenced with respect to or arising out of this Contingent Convertible Capital
Securities Indenture to claim for itself or its revenues, assets or properties immunity (whether by reason of sovereign immunity
or otherwise) from suit, from the jurisdiction of any court (including, but not limited to, any court of the United States of
America or the State of New York) or from any legal process with respect to itself or its property, from attachment prior to judgment,
from set-off, from execution of a judgment, from the grant of injunctive relief, whether prior to or after judgment, or from any
other legal process (including, without limitation, in relation to enforcement of any arbitration award), and to the extent that
in any such jurisdiction there may be attributed such an immunity (whether or not claimed), the Company hereby irrevocably agrees
not to claim and hereby irrevocably waives such immunity and consents to the grant of any such relief.

 

Section
1.16.Calculation Agent. If the Company appoints a Calculation Agent pursuant to ‎Section
3.01 with respect to any series of Contingent Convertible Capital Securities, any determination of the Distribution Rate on,
or other amounts in relation to, such series of Contingent Convertible Capital Securities in accordance with the terms of
such series of Contingent Convertible Capital Securities by such Calculation Agent shall (in the absence of manifest error,
bad faith or willful misconduct) be binding on the Company, the Trustee and all Holders and (in the absence of manifest
error, bad faith or willful misconduct) no liability to the Holders shall attach to the Calculation Agent in connection with
the exercise or non-exercise by it of its powers, duties and discretions.

 

Section 1.17.Waiver of Jury Trial.
EACH OF THE PARTIES HERETO, AND EACH HOLDER OF A CONTINGENT CONVERTIBLE CAPITAL SECURITY BY ITS ACCEPTANCE THEREOF, HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS CONTINGENT CONVERTIBLE CAPITAL SECURITIES INDENTURE, THE CONTINGENT CONVERTIBLE CAPITAL SECURITIES OR THE
TRANSACTION CONTEMPLATED HEREBY.

 

Section 1.18.Judgment Currency. Any
payment on account of an amount that is payable in U.S. dollars (the “Required Currency”) which is made to or for the
account of any Holder or the Trustee in lawful currency of any other jurisdiction (the “Judgment Currency”), whether
as a result of any judgment or order or the enforcement thereof or the liquidation of the Company shall constitute a discharge
of the Company obligation under this Contingent Convertible Capital Securities Indenture and the Contingent Convertible Capital
Securities only to the extent of the amount of the Required Currency with such Holder or the Trustee, as the case may be, could
purchase in the London foreign exchange markets with the amount of the Judgment Currency in accordance with normal banking procedures
at the rate of exchange prevailing on the first Business Day following receipt of the payment in the Judgment Currency. If the
amount of the Required Currency that could be so purchased is less than the amount of the Required Currency originally due to such
Holder or the Trustee, as the case may be, the Company shall indemnify and hold harmless the Holder or the Trustee, as the case
may be, from and against all loss or damage arising out of, or as a result of, such deficiency. This indemnity shall constitute
an obligation separate and independent from the other obligations contained in this Contingent Convertible Capital Securities Indenture
or the Contingent Convertible Capital Securities, shall give rise to a separate and independent cause of action, shall apply irrespective
of any indulgence granted by any Holder or the Trustee from time to time and shall continue in full force and effect notwithstanding
any judgment or order for a liquidated sum in respect of an amount due hereunder or under any judgment or order.

 

    28 

     

    

Article
2

Contingent Convertible Capital Security Forms

 

Section 2.01.Forms
Generally. The Contingent Convertible Capital Securities of each series shall be issuable in registered form and in such forms
as shall be established by or pursuant to a Board Resolution, an Officer’s Certificate, or in one or more indentures supplemental
hereto, pursuant to ‎‎Section 3.01, in each case with such insertions, omissions, substitutions and other variations as
are required or permitted by this Contingent Convertible Capital Securities Indenture, and may have such letters, numbers or other
marks of identification and such legends or endorsements placed thereon as may be required to comply with any applicable law or
rule or regulation made pursuant thereto or with the rules of any securities exchange or Depositary therefor, or as may, consistently
herewith, be determined by the officers executing such Contingent Convertible Capital Securities, all as evidenced by any such
execution.

 

Section 2.02.Form of Trustee’s
Certificate of Authentication. The Trustee’s certificate of authentication shall be in substantially the following form:

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Contingent Convertible
Capital Securities of the series designated herein referred to in the within-mentioned Contingent Convertible Capital Securities
Indenture.

 

	 	Dated:	 
	 	 	 

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

 

Article
3

The Contingent Convertible Capital Securities

 

Section 3.01.Amount Unlimited; Issuable
in Series. The aggregate Liquidation Preference of Contingent Convertible Capital Securities which may be authenticated and
delivered under this Contingent Convertible Capital Securities Indenture is unlimited. The Contingent Convertible Capital Securities
may be issued in one or more series.

 

There shall be established by or pursuant
to a Board Resolution of the Company, or established by an Officer’s Certificate, or established in one or more indentures
supplemental hereto, prior to the initial issuance of Contingent Convertible Capital Securities of any series,

 

    29 

     

    

(a)the
title of the Contingent Convertible Capital Securities of the series (which shall distinguish the Contingent Convertible Capital
Securities of the series from all other Contingent Convertible Capital Securities);

 

(b)any
limit upon the aggregate Liquidation Preference of the Contingent Convertible Capital Securities of the series which may be authenticated
and delivered under this Contingent Convertible Capital Securities Indenture (except for Contingent Convertible Capital Securities
authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Contingent Convertible Capital
Securities of the series pursuant to ‎Section
3.04, ‎‎Section 3.05, ‎‎Section
3.06, ‎‎Section 10.06 or ‎‎Section
12.07) and except for any Contingent Convertible Capital Securities which, pursuant to ‎Section
3.03 are deemed never to have been authenticated and delivered hereunder);

 

(c)the
date or dates, if any, on which the Liquidation Preference of the Contingent Convertible Capital Securities of the series is payable;

 

(d)the
rate or rates, if any, at which Distributions on the Contingent Convertible Capital Securities of the series shall accrue or the
manner of calculation of such rate or rates, if any, the date or dates from which such Distributions shall accrue, the Distribution
Dates on which such Distributions shall be payable or the manner of determination of such Distribution Dates and the Regular Record
Date for the Distributions payable on any Distribution Date and any dates required to be established pursuant to ‎Section
8.01;

 

(e)whether
any premium, upon redemption or otherwise, shall be payable by the Company on Contingent Convertible Capital Securities of the
series, and whether such premium shall be redeemable at the option of the Company or the Holder;

 

(f)the
place or places where the Liquidation Preference of (and premium, if any) and any Distributions on Contingent Convertible Capital
Securities of the series shall be payable, and the paying agent, if other than the Principal Paying Agent, who shall be authorized
to pay Liquidation Preference of (and premium, if any) and any Distributions on Contingent Convertible Capital Securities of such
series, at least one such paying agent having an office or agency in the Borough of Manhattan, The City of New York;

 

(g)other
than with respect to any redemption of the Contingent Convertible Capital Securities pursuant to ‎Section
12.08, whether or not such series of Contingent Convertible Capital Securities are to be redeemable, in whole or in part, at the
Company’s option and, if so redeemable, the period or periods within which, the price or prices at which and the terms and
conditions upon which, Contingent Convertible Capital Securities of the series may be redeemed, including the date referred to
in ‎Section 12.08;

 

(h)the
obligation, if any, of the Company to redeem or purchase Contingent Convertible Capital Securities of the series pursuant to any
sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or
prices at which, and the terms and conditions upon which Contingent Convertible

 

    30 

     

    

Capital Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such obligation;

 

(i)the
denominations in which Contingent Convertible Capital Securities of the series in each applicable form shall be issuable and any
provisions relating to redenomination of any Contingent Convertible Capital Securities;

 

(j)if
Additional Amounts, pursuant to ‎Section 11.04,
will not be payable;

 

(k)if
other than Dollars, provisions, if any, for the Contingent Convertible Capital Securities of the series to be denominated, and
payments thereon to be made, in Foreign Currencies and specifying the Place of Payment and the manner of payment thereon and any
other terms with respect thereto;

 

(l)if
other than the coin or currency in which the Contingent Convertible Capital Securities of that series are denominated, the coin
or currency in which payment of the Liquidation Preference of and premium and Distributions on the Contingent Convertible Capital
Securities of such series shall be payable;

 

(m)if
the Liquidation Preference of and Distributions on the Contingent Convertible Capital Securities of such series are to be payable,
at the election of the Company or a Holder thereof, in a coin or currency other than that in which the Contingent Convertible Capital
Securities are denominated, the period or periods within which, and the terms and conditions upon which, such election may be made;

 

(n)whether
the Contingent Convertible Capital Securities of the series shall be issued in whole or in part in the form of one or more Global
Securities and the initial Holder with respect to such Global Security or Contingent Convertible Capital Securities;

 

(o)if
the Contingent Convertible Capital Securities of such series are to be issuable in definitive form (whether upon original issue
or upon exchange of a temporary Contingent Convertible Capital Security of such series or otherwise) only upon receipt of certain
certificates or other documents or satisfaction of other conditions, then the form and terms of such certificates, documents or
conditions;

 

(p)if
the amounts of payments of Liquidation Preference or Distributions on the Contingent Convertible Capital Securities of the series
may be determined with reference to an index or are otherwise not fixed on the original issue date thereof, the manner in which
such amounts shall be determined and the Calculation Agent, if any, who shall be appointed and authorized to calculate such amounts;

 

(q)the
forms of Contingent Convertible Capital Securities of the series appertaining thereto;

 

(r)any
other terms of the series (which terms shall not be inconsistent with the provisions of this Contingent Convertible Capital Securities
Indenture); and

 

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(s)the
Trustee for such series of Contingent Convertible Capital Securities who shall also be named in an indenture supplemental hereto
for a particular series of Contingent Convertible Capital Securities if the Trustee for such series is not the Trustee named in
the first paragraph of this Contingent Convertible Capital Securities Indenture

 

All Contingent Convertible Capital Securities
of any one series shall be substantially identical except as to denomination except as may otherwise be provided in or pursuant
to such action or in any such Officer’s Certificate  or indenture supplemental hereto.

 

If the forms of Contingent Convertible Capital
Securities of any series, or any of the terms thereof, are established by action taken pursuant to a Board Resolution of the Company,
a copy of the Board Resolution in respect thereof shall be delivered to the Trustee at or prior to the delivery of the Company
Order pursuant to, ‎Section 3.03 for the authentication and
delivery of such Contingent Convertible Capital Securities.

  

Section 3.02.Denominations.
The Contingent Convertible Capital Securities of each series shall be issuable in such denominations as shall be specified as contemplated
by ‎Section 3.01. 

 

Section 3.03.Execution, Authentication,
Delivery and Dating. The Contingent Convertible Capital Securities shall be executed on behalf of the Company by any one of
the representatives of the Company authorized to do so by Board Resolution or by any member of the Board of Directors. The signature
of any of these authorized representatives on the Contingent Convertible Capital Securities may be manual or facsimile. Contingent
Convertible Capital Securities bearing the manual or facsimile signatures of individuals who were at any time the proper officer
of the Company shall bind the Company, notwithstanding that such individual has ceased to hold such office prior to the authentication
and delivery of such Contingent Convertible Capital Securities.

 

At any time
and from time to time after the execution and delivery of this Contingent Convertible Capital Securities Indenture, the Company
may deliver Contingent Convertible Capital Securities of any series executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such Contingent Convertible Capital Securities, and the Trustee
in accordance with the Company Order shall authenticate and deliver such Contingent Convertible Capital Securities. In authenticating
such Contingent Convertible Capital Securities and accepting the additional responsibilities under this Contingent Convertible
Capital Securities Indenture in relation to such Contingent Convertible Capital Securities the Trustee shall be entitled to receive,
and (subject to ‎Section
7.01) shall be fully protected in relying upon, an Opinion of Counsel and an Officer’s Certificate stating that the form
and terms thereof have been established in conformity with the provisions of this Contingent Convertible Capital Securities Indenture.

 

The Trustee shall not be required to authenticate
such Contingent Convertible Capital Securities if the issue of such Contingent Convertible Capital Securities pursuant to this
Contingent Convertible Capital Securities Indenture will affect the Trustee’s own rights, duties or immunities under the
Contingent Convertible Capital Securities and this

 

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Contingent Convertible Capital Securities
Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

 

Each Contingent Convertible Capital Security
shall be dated the date of its authentication.

 

No Contingent
Convertible Capital Security shall be entitled to any benefit under this Contingent Convertible Capital Securities Indenture or
be valid or obligatory for any purpose unless there appears on such Contingent Convertible Capital Security a certificate of authentication
substantially in the form provided for herein executed by or on behalf of the Trustee by manual signature, and such certificate
upon any Contingent Convertible Capital Security shall be conclusive evidence, and the only evidence, that such Contingent Convertible
Capital Security has been duly authenticated and delivered hereunder and that such Contingent Convertible Capital Security is entitled
to the benefits of this Contingent Convertible Capital Securities Indenture. Notwithstanding the foregoing, if any Contingent Convertible
Capital Security shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company
shall deliver such Contingent Convertible Capital Security to the Trustee for cancellation as provided in ‎Section
3.13, for all purposes of this Contingent Convertible Capital Securities Indenture, such Contingent Convertible Capital Security
shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefit of this Contingent
Convertible Capital Securities Indenture.

 

Section 3.04.Temporary Contingent
Convertible Capital Securities. Pending the preparation of definitive Contingent Convertible Capital Securities of any series,
the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Contingent Convertible Capital
Securities substantially of the tenor of the definitive Contingent Convertible Capital Securities in lieu of which they are issued,
which Contingent Convertible Capital Securities may be printed, lithographed, typewritten, photocopied or otherwise produced. Temporary
Contingent Convertible Capital Securities may be issued as registered Contingent Convertible Capital Securities in any authorized
denomination, and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such
Contingent Convertible Capital Securities may determine, all as evidenced by such execution.

 

If temporary Contingent Convertible Capital
Securities of any series are issued, the Company will cause, if so required by the terms of such temporary Contingent Convertible
Capital Securities, definitive Contingent Convertible Capital Securities of such series to be prepared without unreasonable delay.
After the preparation of definitive Contingent Convertible Capital Securities of such series, the temporary Contingent Convertible
Capital Securities of such series shall be exchangeable for definitive Contingent Convertible Capital Securities of such series
containing identical terms and provisions upon surrender of the temporary Contingent Convertible Capital Securities of such series
at the office or agency of the Company in a Place of Payment for that series, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Contingent Convertible Capital Securities of any series the Company shall execute, and
the Trustee shall authenticate and deliver in exchange therefor, a like

 

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aggregate Liquidation Preference of definitive
Contingent Convertible Capital Securities of the same series of authorized denominations containing identical terms and provisions.
Until so exchanged, unless otherwise provided therein or in a supplemental indenture relating thereto, the temporary Contingent
Convertible Capital Securities of any series shall in all respects be entitled to the same benefits (but shall be subject to all
the limitations of rights) under this Contingent Convertible Capital Securities Indenture as definitive Contingent Convertible
Capital Securities of such series.

 

Section 3.05.Registration, Registration
of Transfer and Exchange.

 

(a)Global
Securities. This ‎Section 3.05(a) shall apply
to Global Securities unless otherwise specified, as contemplated by ‎Section
3.01.

 

Except
as otherwise specified as contemplated by ‎Section
3.01 hereof, the Contingent Convertible Capital Securities shall be initially issued and represented by one or more Global
Securities in registered form, which shall be authenticated as contemplated by this Contingent Convertible Capital
Securities Indenture.

 

Each Global Security authenticated under
this Contingent Convertible Capital Securities Indenture shall be registered in the name of the Depositary designated for such
Global Security or a nominee thereof and delivered to such Depositary or a nominee thereof or custodian therefor, and each such
Global Security shall constitute a single Contingent Convertible Capital Security for all purposes of this Contingent Convertible
Capital Securities Indenture. Except as otherwise specified as contemplated by ‎Section
3.01 hereof, each Global Security authenticated under this Contingent Convertible Capital Securities Indenture shall be initially
registered in the name of DTC or its nominee only.

 

Unless the Global Security is presented
by an authorized representative of the Holder to the Company or its agent for registration of transfer, exchange or payment, and
any certificate issued is registered in the name of a nominee of the Holder and any payment is made to such nominee, any transfer,
pledge or other use of the Global Security for value or otherwise shall be wrongful since the registered owner of such Global Security,
the nominee of the Holder, has an interest in such Global Security.

 

Except as
otherwise specified as contemplated by ‎Section
3.01 hereof, any Global Security shall be exchangeable for definitive Contingent Convertible Capital Securities only as provided
in this paragraph. A Global Security shall be exchangeable pursuant to this Section only (i) if the relevant Depositary notifies
the Company that it is unwilling or unable to continue to act as Depositary and a successor depositary is not appointed by the
Company within 120 days of such notification, (ii) if, in the event of a winding-up of the Company, the Company fails to make a
payment on the Contingent Convertible Capital Securities when due or (iii) at any time if the Company at its option and in its
sole discretion determines that the Global Securities of a particular series should be exchanged for definitive Contingent Convertible
Capital Securities of that series. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable
for, unless otherwise specified or contemplated by ‎Section
3.01, definitive Contingent Convertible Capital Securities bearing Distributions (if any) at the same rate or pursuant 

 

    34 

     

    

to the same formula, having the same
date of issuance, the same date or dates from which such Distributions shall accrue, the same Distribution Dates or manner of
determination of such Distribution Dates, redemption provisions, if any, specified currency and other terms and of differing
denominations aggregating a like amount as the Global Security so exchangeable. Definitive Contingent Convertible Capital
Securities shall be registered in the names of the owners of the beneficial interests in such Global Securities as such names
are from time to time provided by the Holder to the Trustee.

 

Any Global
Security that is exchangeable pursuant to the preceding paragraph, unless otherwise specified as contemplated by ‎Section
3.01, shall be exchangeable for Contingent Convertible Capital Securities issuable in authorized denominations of a like aggregate
Liquidation Preference and tenor.

 

No Global Security may be transferred except
as a whole by the Holder to a nominee of the Holder or by the Holder or any such nominee to a successor of the Holder or a nominee
of such successor. Except as provided above, owners solely of beneficial interests in a Global Security shall not be entitled to
receive physical delivery of Contingent Convertible Capital Securities in definitive form and will not be considered the holders
thereof for any purpose under this Contingent Convertible Capital Securities Indenture.

 

In the event
that a Global Security is surrendered for redemption in part pursuant to ‎Section
12.07, the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Global Security, without
service charge, a new Global Security in a denomination equal to and in exchange for the unredeemed portion of the Liquidation
Preference of the Global Security so surrendered.

 

The Agent Members and any beneficial owners
shall have no rights under this Contingent Convertible Capital Securities Indenture with respect to any Global Security held on
their behalf by a Holder, and such Holder may be treated by the Company, the Trustee, and any agent of the Company or the Trustee
as the owner of such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee, or any agent of the Company or the Trustee, from giving effect to any written certification, proxy or other
authorization furnished by a Holder or impair, as between any such Holder or other clearance service and its Agent Members and
Holders the operation of customary practices governing the exercise of the rights of a holder of any security, including without
limitation the granting of proxies or other authorization of participants to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action which a Holder is entitled to give or take under this Contingent Convertible Capital Securities
Indenture.

 

In connection
with any exchange of interests in a Global Security for definitive Contingent Convertible Capital Securities of another authorized
form, as provided in this Section 3.05‎(a),
then without unnecessary delay but in any event not later than the earliest date on which such interests may be so exchanged, the
Company shall deliver to the Trustee definitive Contingent Convertible Capital Securities in aggregate Liquidation Preference equal
to the Liquidation Preference of such Global Security or the 

 

    35 

     

    

portion to be
exchanged, executed by the Company. On or after the earliest date on which such interests may be so exchanged, such Global Security
shall be surrendered by the Holder to the Trustee, as the Company’s agent for such purpose, to be exchanged, in whole or
from time to time in part, for definitive Contingent Convertible Capital Securities without charge (in which case the Company or
Trustee may require payment of any taxes or governmental charges arising) and the Trustee shall authenticate and deliver, in exchange
for each portion of such Global Security, an equal aggregate Liquidation Preference of definitive Contingent Convertible Capital
Securities of authorized denominations as the portion of such Global Security to be exchanged. Any Global Security that is exchangeable
pursuant to this ‎Section
3.05 shall be exchangeable for Contingent Convertible Capital Securities issuable in the denominations specified as contemplated
by ‎Section 3.01 and registered
in such names as the Holder of such Global Security shall direct. If a definitive Contingent Convertible Capital Security is issued
in exchange for any portion of a Global Security after the close of business at the office or agency where such exchange occurs
on any record date and before the opening of business at such office or agency on the relevant Distribution Date, Distributions
will not be payable on such Distribution Date in respect of such definitive Contingent Convertible Capital Security, but will be
payable on such Distribution Date only to the Person to whom Distributions in respect of such portion of such Global Security are
payable.

 

A Depositary may grant proxies and otherwise
authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action which
a holder is entitled to take under this Contingent Convertible Capital Securities Indenture with respect to the Contingent Convertible
Capital Securities.

 

(b)Except
as otherwise specified pursuant to ‎Section
3.01, Contingent Convertible Capital Securities of any series may only be exchanged for a like aggregate Liquidation Preference
of Contingent Convertible Capital Securities of such series of other authorized denominations containing identical terms and provisions.
Contingent Convertible Capital Securities to be exchanged shall be surrendered
at an office or agency of the Company designated pursuant to ‎Section
11.02 for such purpose, and the Company shall execute, and the Trustee shall authenticate and deliver, in exchange therefor the
Contingent Convertible Capital Security or Contingent Convertible Capital Securities of the same series which the Holder making
the exchange shall be entitled to receive.

 

Except as
otherwise specified pursuant to ‎Section
3.01, the Company shall cause to be kept in the Corporate Trust Office of the Trustee a register (the register maintained in such
office and in any other office or agency of the Company in a Place of Payment being herein sometimes collectively referred to as
the “Contingent Convertible Capital Security Register” in which, subject to such reasonable regulations as it
may prescribe, the Company shall provide for the registration of Contingent Convertible Capital Securities and of transfers
of such Contingent Convertible Capital Securities. Except as otherwise specified pursuant to ‎Section
3.01, the Trustee is hereby appointed “Contingent Convertible Capital Security Registrar” for the purpose of
registering Contingent Convertible Capital Securities and transfers of Contingent Convertible Capital Securities as herein provided.

 

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Contingent
Convertible Capital Securities shall be transferable only on the Contingent Convertible Capital Security Register. Upon surrender
for registration of transfer of any Contingent Convertible Capital Security of any series, together with the form of transfer endorsed
on it, duly completed and executed at an office or agency of the Company designated pursuant to ‎Section
11.02 for such purpose, the Company shall execute, and the Trustee shall authenticate and deliver to the address specified in the
form of transfer, within three Business Days, in the name of the designated transferee or transferees, one or more new Contingent
Convertible Capital Securities of the same series of any authorized denominations containing identical terms and provisions, of
a like aggregate Liquidation Preference. If only part of a Contingent Convertible Capital Security is transferred, a new Contingent
Convertible Capital Security of an aggregate Liquidation Preference equal to the amount not being transferred shall be executed
by the Company, and authenticated and delivered by the Trustee to the transferor, in the name of the transferor, within three Business
Days of receiving the Contingent Convertible Capital Security. The new Contingent Convertible Capital Security will be delivered
to the transferor by uninsured post at the risk of the transferor to the address of the transferor appearing in the Contingent
Convertible Capital Security Register. The new Contingent Convertible Capital Security will be delivered to the transferor by uninsured
post at the risk of the transferor to the address of the transferor appearing in the Contingent Convertible Capital Security Register.
A new Contingent Convertible Capital Security of an aggregate Liquidation Preference equal to the amount being transferred
shall be delivered by the Trustee to the transferee, in the name of the transferee, within three Business Days after the Trustee
acting as Paying Agent pursuant to ‎Section
11.02 receives the Contingent Convertible Capital Security. The new Contingent Convertible Capital Security will be delivered to
the transferee by uninsured post at the risk of the transferee to the address of the transferee specified in the form of transfer.

 

All Contingent Convertible Capital Securities
issued upon any registration of transfer or exchange of Contingent Convertible Capital Securities shall be the valid obligations
of the Company, evidencing the same debt, and entitled to the same benefits under this Contingent Convertible Capital Securities
Indenture, as the Contingent Convertible Capital Securities surrendered upon such registration of transfer or exchange.

 

Every Contingent Convertible Capital Security
presented or surrendered for registration of transfer or for exchange shall (if so required by the Company or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Contingent Convertible
Capital Security Registrar duly executed, by the Holder thereof or his attorney duly authorized in writing.

 

No service
charge shall be made for any registration of transfer or exchange of Contingent Convertible Capital Securities, but the Company
may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Contingent Convertible Capital Securities, other than exchanges pursuant to ‎Section
3.04, ‎10.06 or ‎12.07
not involving any transfer.

 

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The Company
shall not be required (i) to issue, register the transfer of or exchange any Contingent Convertible Capital Security of any series
during a period beginning at the opening of business 15 days before the day of the giving of a notice of redemption of Contingent
Convertible Capital Securities of such series selected for redemption under ‎Section
12.03 and ending at the close of business on the day of the giving of such notice, or (ii) to register the transfer of or exchange
any Contingent Convertible Capital Security so selected for redemption in whole or in part, except the unredeemed portion of any
Contingent Convertible Capital Securities being redeemed in part.

 

Section 3.06.Mutilated, Destroyed,
Lost and Stolen Contingent Convertible Capital Securities. If any mutilated Contingent Convertible Capital Security (including
any Global Security) is surrendered to the Trustee, the Company may execute and the Trustee shall, in the case of a Contingent
Convertible Capital Security, authenticate and deliver, in exchange therefor a new Contingent Convertible Capital Security of the
same series containing identical terms and provisions and of like amount, and bearing a number not contemporaneously outstanding.

 

If there shall be delivered to the Company
and to the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Contingent Convertible Capital Security
(including any Global Security), and (ii) such security or indemnity as may be required by them to save each of them and any agent
of any of them harmless, then, in the absence of notice to the Company or the Trustee that such Contingent Convertible Capital
Security has been acquired by a bona fide purchaser, the Company shall execute and upon the Company’s request the Trustee
shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Contingent Convertible Capital Security, if any,
a new Contingent Convertible Capital Security of the same series containing identical terms and provisions and of like amount,
and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost
or stolen Contingent Convertible Capital Security has become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Contingent Convertible Capital Security pay such Contingent Convertible Capital Security.

 

Upon the issuance of any new Contingent
Convertible Capital Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith.

 

Every new Contingent Convertible Capital
Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Contingent Convertible Capital
Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen
Contingent Convertible Capital Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of
this Contingent Convertible Capital Securities Indenture equally and proportionately with any and all other Contingent Convertible
Capital Securities of that series duly issued hereunder.

 

    38 

     

    

The provisions of this Section, as amended
or supplemented pursuant to this Contingent Convertible Capital Securities Indenture, are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen
Contingent Convertible Capital Securities.

 

Section 3.07.Distributions. Rights
Preserved.

 

Except as otherwise provided in a supplemental
indenture:

 

(a)The
Company will make any payments of Distributions and Liquidation Preference on any particular series of Contingent Convertible Capital
Securities on the dates that are determined pursuant to ‎Section
3.01. 

 

(b)The
Contingent Convertible Capital Securities of any series will accrue non-cumulative cash distributions (“Distributions”)
as may be specified in, or determined in accordance with ‎Section
3.01.

 

(c)The
Company has no obligation to make Distributions with respect to any series of Contingent Convertible Capital Securities.

 

(d)Except
as otherwise provided as contemplated by ‎‎Section
3.01 with respect to any series of Contingent Convertible Capital Securities, Distributions, if any, on any Contingent Convertible
Capital Securities which are payable, and are paid or duly provided for, on any Distribution Payment Date shall be paid to the
Person in whose name that Contingent Convertible Capital Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such Distributions. 

 

(e)In
the case of Contingent Convertible Capital Securities where payment is to be made in Dollars, payment at the Principal Paying Agent’s
office outside The City of New York will be made in Dollars by check drawn on, or, at the request of the Holder, by transfer to
a Dollar account maintained by the payee with, a bank in The City of New York.

 

(f)In
the case of Contingent Convertible Capital Securities where payment is to be made in a Foreign Currency, payment will be made as
established pursuant to ‎‎Section 3.01.

 

(g)Subject
to the foregoing provisions of this ‎‎Section
3.07, each Contingent Convertible Capital Security delivered under this Contingent Convertible Capital Securities Indenture upon
registration of transfer of or in exchange for or in lieu of any other Contingent Convertible Capital Security shall carry the
rights to accrued and unpaid Distributions, if any, and to accrue Distributions, which were carried by such other Contingent Convertible
Capital Security.

 

    39 

     

    

Section 3.08.Distributions Discretionary.

 

(a)The
Company may elect, in its sole and absolute discretion, to cancel the payment of any Distribution in whole or in part at any time
that it deems necessary or desirable, and for any reason.

 

(b)Distributions
on the Contingent Convertible Capital Securities will be non-cumulative. Accordingly, if any Distribution (or part thereof) is
not paid in respect of the Contingent Convertible Capital Securities of any series as a result of any election of the Company to
cancel such Distribution pursuant this ‎Section
3.08 or the limitations on payment set out in this ‎Section
3.08 and ‎Section 3.09 then the right of the
Holders to receive the relevant Distribution (or part thereof) in respect of the relevant Distribution Period will be extinguished
and the Company will have no obligation to pay such Distribution (or part thereof) accrued for such Distribution Period or to pay
any interest thereon, whether or not Distributions on the Contingent Convertible Capital Securities of such series are paid in
respect of any future Distribution Period.

 

(c)No
such election to cancel the payment of any Distribution (or part thereof) pursuant to this ‎Section
3.08 or non-payment of any Distribution (or part thereof) as a result of the limitations on payment set out in ‎Section
3.09 will constitute an event of default, an Enforcement Event or the occurrence of any event related to the insolvency of the
Company or entitle holders to take any action to cause such Distribution to be paid or the liquidation, dissolution or winding-up
of the Company or in any way limit or restrict the Company from making any distribution or equivalent payment in connection with
any instrument ranking junior to the Contingent Convertible Capital Securities of such series (including, without limitation, any
CET1 Capital of the Company or the Group) or in respect of any other Parity Security or other Security.

 

Section 3.09.Restrictions on Payments.

 

(a)To
the extent that (i) the Company has insufficient Available Distributable Items to make Distributions on the Contingent Convertible
Capital Securities of such series scheduled for payment in the then current financial year and any equivalent payments scheduled
to be made in the then current financial year in respect of any other Parity Securities then outstanding, in each case excluding
any portion of such payments already accounted for in determining the Available Distributable Items, and/or (ii) the Regulator,
in accordance with Applicable Banking Regulations, requires the Company to cancel the relevant Distribution in whole or in part,
then the Company will, without prejudice to the right above to cancel at its discretion the payment of any such Distributions on
the Contingent Convertible Capital Securities of such series at any time, make partial or, as the case may be, no payment of the
relevant Distribution on the Contingent Convertible Capital Securities of such series.

 

(b)No
payment will be made on the Contingent Convertible Capital Securities of any series (whether by way of a repayment of the Liquidation
Preference, the payment of any Distribution or otherwise) if and to the extent that such payment would cause the

 

    40 

     

    

Maximum Distributable Amount (if any) then
applicable to the Company and/or the Group to be exceeded.

 

Section 3.10.Agreement to Distribution
Cancellation.

 

(a)By
acquiring contingent convertible capital securities, Holders and beneficial owners of the contingent convertible capital securities
acknowledge and agree that:

 

(i)Distributions are payable
solely at the Company’s discretion, and no amount of Distribution shall become or remain due and payable in respect of the
relevant Distribution Period to the extent that it has been cancelled by the Company at the Company’s sole discretion and/or
deemed cancelled as a result of our having insufficient Available Distributable Items or as a result of the Regulator requiring
the Company to cancel the Distributions or as a result of exceeding the Maximum Distributable Amount (if any) then applicable to
the Company and/or the Group; and

 

(ii) a
cancellation or deemed cancellation of Distributions (in each case, in whole or in part) in accordance with the terms of the Contingent
Convertible Capital Securities Indenture or applicable supplemental indenture and the Contingent Convertible Capital Securities
shall not constitute an Enforcement Event or other default under the terms of the Contingent Convertible Capital Securities or
the Capital Securities Indenture.

 

(b)Distributions
will only be due and payable on a Distribution Payment Date to the extent they are not cancelled or deemed cancelled previously
or thereafter in accordance with ‎Section
3.08, ‎Section 3.09, ‎Section
3.10, ‎Section 6.02 and ‎Section
4.01. Any Distributions cancelled or deemed cancelled (in each case, in whole or in part) in the circumstances described herein
shall not be due and shall not accumulate or be payable at any time thereafter, and holders of the contingent convertible capital
securities shall have no rights thereto or to receive any additional Distributions or compensation as a result of such cancellation
or deemed cancellation.

 

Section 3.11.Notice of Distribution
Cancellation. If practicable, the Company will provide notice of any cancellation or deemed cancellation of Distributions (in
each case, in whole or in part) to the holders of the Contingent Convertible Capital Securities through the relevant Clearing System
(or, if the Contingent Convertible Capital Securities are held in definitive form, to the holders of the Contingent Convertible
Capital Securities directly at their addresses shown on the register for the Contingent Convertible Capital Securities) and to
the Trustee directly on or prior to the relevant Distribution Payment Date. Failure to provide such notice will have no impact
on the effectiveness of, or otherwise invalidate, any such cancellation or deemed cancellation of Distributions (and accordingly,
such Distributions will not be due and payable), or give the holders of the Contingent Convertible Capital Securities any rights
as a result of such failure.

 

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Section 3.12.
Persons Deemed Owners. Prior to due presentment of a Contingent Convertible Capital Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Contingent Convertible
Capital Security is registered as the owner of such Contingent Convertible Capital Security for the purpose of receiving payment
of Liquidation Preference of and (subject to ‎Section 3.05 and ‎Section 3.07) any Distribution on such Contingent
Convertible Capital Security and for all other purposes whatsoever, whether or not such Contingent Convertible Capital Security
be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the
contrary. The aggregate Liquidation Preference of the Contingent Convertible Capital Securities of any series shall be reflected
on the books and records of the Contingent Convertible Capital Security Registrar.

 

None of the Company, the Trustee, the Paying
Agent or the Contingent Convertible Capital Security Registrar shall have any responsibility or obligation to any beneficial owner
in a Global Security, any Agent Member or any other Person with respect to the accuracy of the records of the Depositary or its
nominee or of any Agent Member, with respect to any ownership interest in the Contingent Convertible Capital Securities or with
respect to the delivery to any Agent Member, beneficial owner or other Person (other than the Depositary) of any notice (including
any notice of redemption) or the payment of any amount, under or with respect to such Contingent Convertible Capital Securities.
All notices and communications to be given to the Holders and all payments to be made to Holders under the Contingent Convertible
Capital Securities and this Contingent Convertible Capital Securities Indenture shall be given or made only to or upon the order
of the Holders (which shall be the Depositary or its nominee in the case of the Global Security). The rights of beneficial owners
in the Global Security shall be exercised only through the Depositary subject to the applicable procedures. The Company, the Trustee,
the Paying Agent and the Contingent Convertible Capital Security Registrar shall be entitled to rely and shall be fully protected
in relying upon information furnished by the Depositary with respect to its Agent Members and any beneficial owners. The Company,
the Trustee, the Paying Agent and the Contingent Convertible Capital Security Registrar shall be entitled to deal with the Depositary,
and any nominee thereof, that is the Holder of any Global Security for all purposes of this Contingent Convertible Capital Securities
Indenture relating to such Global Security (including the payment of Liquidation Preference and Distributions and Additional Amounts,
if any, and the giving of instructions or directions by or to the owner or holder of a beneficial ownership interest in such Global
Security) as the sole Holder and shall have no obligations to the beneficial owners thereof. None of the Company, the Trustee,
the Paying Agent or the Contingent Convertible Capital Security Registrar shall have any responsibility or liability for any acts
or omissions of the Depositary with respect to such Global Security, for the records of any such Depositary, including records
in respect of beneficial ownership interests in respect of any such Global Security, for any transactions between the Depositary
and any Agent Member or between or among the Depositary, any such Agent Member and/or any holder or owner of a beneficial interest
in such Global Security, or for any transfers of beneficial interests in any such Global Security.

 

Notwithstanding the foregoing, with respect
to any Global Security, nothing herein shall prevent the Company, the Trustee, or any agent of the Company or the Trustee from
giving effect to any written certification, proxy or other authorization furnished by any Depositary (or its nominee), as a Holder,
with respect to such Global Security or shall impair, as between such Depositary and owners of beneficial interests in such Global
Security, the operation of customary practices governing the exercise of the rights of such Depositary (or its nominee) as Holder
of such Global Security.

  

    42 

     

    

Each Holder and beneficial owner that acquires its Contingent
Convertible Capital Security in the secondary market shall be deemed to acknowledge and agree to be bound by and consent to the
same provisions specified in this Contingent Convertible Capital Securities Indenture and the Contingent Convertible Capital Securities
to the same extent as the Holders and beneficial owners of the Contingent Convertible Capital Securities that acquire the Contingent
Convertible Capital Securities upon their initial issuance, including, without limitation, with respect to the acknowledgement
and agreement to be bound by and consent to the terms of the Contingent Convertible Capital Securities, including, without limitation,
in relation to Distribution cancellation, the Trigger Conversion, the Spanish Bail-in Power and the limitations on remedies specified
in the Contingent Convertible Capital Security and Section 6.03.

 

Section 3.13.  Cancellation. All Contingent Convertible Capital Securities surrendered for payment,
redemption, registration of transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee and shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Contingent
Convertible Capital Securities previously authenticated and delivered hereunder, and all Contingent Convertible Capital Securities
so delivered shall be promptly cancelled by the Trustee. No Contingent Convertible Capital Securities shall be authenticated in
lieu of or in exchange for any Contingent Convertible Capital Securities cancelled as provided in this Section, except as expressly
permitted by the provisions of the Contingent Convertible Capital Securities of any series or pursuant to the provisions of this
Contingent Convertible Capital Securities Indenture. The Trustee shall deliver to the Company all cancelled Contingent Convertible
Capital Securities held by the Trustee.

 

Section 3.14.  Computation of Distributions. Except as otherwise specified pursuant to ‎Section
3.01 for Contingent Convertible Capital Securities of any series, Distributions on the Contingent Convertible Capital Securities
of each series shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Section 3.15.  Cusip Numbers. The Company in issuing Contingent Convertible Capital Securities may
use “CUSIP”, “ISIN” and/or “Common Code” and/or other similar numbers (if then generally in
use) or any successor to such numbers and thereafter with respect to such series, and, if so, the Trustee shall use “CUSIP”,
“ISIN” and/or “Common Code” and/or other similar numbers or successor numbers in notices of redemption
as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such
numbers either as printed on the Contingent Convertible Capital Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the Contingent Convertible Capital Securities, and any
such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee
of any change in the “CUSIP”, “ISIN” and/or “Common Code” and/or other similar numbers or successor
numbers.

 

 

    43 

     

    

Section 3.16.Additional Contingent
Convertible Capital Securities. (a) The Company may without the consent or sanction of the Holders of the Contingent Convertible
Capital Securities of any series: (i) take any action required to issue additional Parity Securities or authorize, create and issue
one or more other series of Parity Securities ranking equally with the Contingent Convertible Capital Securities of such series,
as to the participation in the profits and/or assets of the Company, without limit as to the amount; or (ii) take any action required
to authorize, create and issue one or more other classes or series of shares of the Company or securities mandatorily convertible
into Common Shares of the Company ranking junior to the Contingent Convertible Capital Securities, as to the participation in the
profits and/or assets of the Company.

 

(b)By
acquiring a Contingent Convertible Capital Securities, Holders of Contingent Convertible Capital Securities agree to renounce any
rights of seniority or preference that may be conferred upon it (if any) under applicable Spanish law over any Holder of such other
Parity Securities issued by the Company from time to time.

 

(c)The
Contingent Convertible Capital Securities do not grant the Holders of the Contingent Convertible Capital Securities of such series
pre-emption rights in respect of any possible future issues of Parity Securities or any other securities by the Company or any
Subsidiary.

 

(d)
The Company may, without the consent of the Holders of the Contingent Convertible Capital
Securities of any series, issue additional Contingent Convertible Capital Securities (“Additional Contingent Convertible
Capital Securities”) of one or more of the series of Contingent Convertible Capital Securities issued under this Contingent
Convertible Captial Securities Indenture having the same ranking and same Distribution Rate, redemption terms and other terms
as the Contingent Convertible Capital Securities of such series except for the price to the public, original Distribution accrual
date, issue date and first Distribution Payment Date, provided however that such Additional Contingent Convertible Capital Securities
will not have the same CUSIP, ISIN or other identifying number as the outstanding Contingent Convertible Capital Securities of
the relevant series unless the Additional Contingent Convertible Capital Securities are fungible with the outstanding Contingent
Convertible Capital Securities of the relevant series for U.S. federal income tax purposes. Any such Additional Contingent Convertible
Capital Securities, together with the Contingent Convertible Capital Securities of the relevant series, will constitute a single
series of Contingent Convertible Capital Securities under this Contingent Convertible Capital Securities Indenture. 

 

Section 3.17.Correction of Minor
Defects in or Amendment of Contingent Convertible Capital Securities. If, after issuance of any Contingent Convertible Capital
Security (including any Global Security), the Company or the Trustee shall become aware of any ambiguity, defect or inconsistency
in any term of a Contingent Convertible Capital Security or Global Security, as the case may be, or, with respect to any Contingent
Convertible Capital Security (including any Global Security) issued on or

 

    44 

     

    

after the date
hereof, the Company and the Trustee agree to amend such Contingent Convertible Capital Security as contemplated by ‎Section
10.01, the parties hereto shall provide for the execution, authentication, delivery and dating of one or more replacement Contingent
Convertible Capital Securities or Global Securities, as the case may be, pursuant to ‎Section
3.03 hereto.

 

Section 3.18.Payments
Subject to Fiscal Laws. All payments in respect of the Contingent Convertible Capital Securities will be subject in all cases
to any fiscal or other laws and regulations applicable thereto in the place of payment (including FATCA, any regulations or agreements
thereunder, any official interpretation thereof, any intergovernmental agreements with respect thereto, or any law implementing
an intergovernmental agreement or any regulations or official interpretations relating thereto), but without prejudice to the provisions
of ‎Section 11.04.

 

Section 3.19.Undertakings. So
long as any Contingent Convertible Capital Security remains outstanding, the Company shall, unless approved by a majority in aggregate
Liquidation Preference of such series:

 

(a)
not make any issue, grant or distribution or take or omit to take any other action if the effect thereof would be that, on Trigger
Conversion, Common Shares could not, under any applicable law then in effect, be legally issued as fully paid;

 

(b)if
any offer is made to all (or as nearly as may be practicable all) Shareholders (or all (or as nearly as may be practicable all)
such Shareholders other than the offeror and/or any associates of the offeror) to acquire all or a majority of the issued Common
Shares, or if a scheme is proposed with regard to such acquisition (other than a Newco Scheme), give notice of such offer or scheme
to the Holders at the same time as any notice thereof is sent to the Shareholders (or as soon as practicable thereafter) that details
concerning such offer or scheme may be obtained from the specified offices of the Paying and Conversion Agents and, where such
an offer or scheme has been recommended by the Board of Directors, or where such an offer has become or been declared unconditional
in all respects or such scheme has become effective, use all commercially reasonable endeavours to procure that a like offer or
scheme is extended to the holders of any Common Shares issued during the period of the offer or scheme arising out of the Trigger
Conversion;

 

(c)in
the event of a Newco Scheme, take (or shall procure that there is taken) all necessary action to ensure that such amendments are
made to the Contingent Convertible Capital Securities Indenture immediately after completion of the Scheme of Arrangement as are
necessary to ensure that the Contingent Convertible Capital Securities may be converted into or exchanged for ordinary shares in
Newco (or depositary or other receipts or certificates representing ordinary shares of Newco) mutatis mutandis in accordance
with and subject to the Contingent Convertible Capital Securities Indenture and the ordinary shares of Newco are:

 

(i)admitted to the Relevant
Stock Exchange; or

 

    45 

     

    

(ii)listed and/or admitted
to trading on another Recognised Stock Exchange, and the Holders of the Contingent Convertible Capital Securities of the relevant
series irrevocably authorise the Company to make such amendments to the Contingent Convertible Capital Securities Indenture without
the need for any further authorization from the holders of the Contingent Convertible Capital Securities of such series;

 

(d)issue,
allot and deliver Common Shares upon Trigger Conversion subject to and as provided in ‎Section
4.01 above;

 

(e)use
all reasonable endeavours to ensure that its issued and outstanding Common Shares and any Common Shares issued upon Trigger Conversion
will be admitted to listing and trading on the Relevant Stock Exchange or will be listed and/or admitted to trading on another
Recognised Stock Exchange;

 

(f)at
all times keep in force the relevant resolutions needed for issue, free from pre-emptive rights, sufficient authorized but unissued
Common Shares to enable Trigger Conversion of the Contingent Convertible Capital Securities, and all rights of subscription and
exchange for Common Shares, to be satisfied in full; and

 

(g)where
the provisions of ‎Section 4.01 require or
provide for a determination by an Independent Financial Adviser or a role to be performed by a Settlement Shares Depository or
a Paying and Conversion Agent, the Company shall use all reasonable endeavours promptly to appoint such persons for such purposes.

 

Article
4

Conversion of the Contingent Convertible Capital Securities

 

Section 4.01.Conversion upon Trigger
Event.

 

(a)If
the Trigger Event occurs at any time on or after the issue date of any series of Contingent Convertible Capital Securities, then
the Company will:

 

(i)not
declare or pay any Distribution on the Contingent Convertible Capital Securities of such series, including any accrued and unpaid
Distributions, which shall be cancelled by the Company in accordance with ‎Section
3.08 and Section 3.09; and

 

(ii)irrevocably and mandatorily
(and without any requirement for the consent or approval of the Holders of Contingent Convertible Capital Securities of such series)
convert all the Contingent Convertible Capital Securities of such series into Common Shares (the “Trigger Conversion”)
to be delivered on the relevant Conversion Settlement Date. If the Trigger Event occurs, the Contingent Convertible Capital Securities
of any series will be converted in whole and not in part.

 

(b)For
the purposes of determining whether the Trigger Event has occurred, the Company will (i) calculate the CET1 ratio based on information
(whether or not

 

    46 

     

    

published) available to management of the
Company, including information internally reported within the Company pursuant to its procedures for ensuring effective ongoing
monitoring of the capital ratios of the Company and the Group and (ii) calculate and publish the CET1 ratio on at least a quarterly
basis. The Company’s calculation shall be binding on the Trustee and the Holders of the relevant series of Contingent Convertible
Capital Securities.

 

(c)
Subject as provided in this ‎Section 4.01‎(c) with respect to fractions,
the number of Conversion Shares shall be determined by dividing the Liquidation Preference of such Contingent Convertible Capital
Security by the relevant Conversion Price in effect on the relevant Trigger Event Notice Date. Fractions of Common Shares will
not be issued on Trigger Conversion and no cash payment or other adjustment will be made in lieu thereof. Without prejudice to
the generality of the foregoing, if one or more Delivery Notices and the related Contingent Convertible Capital Securities are
received by or on behalf of the Paying and Conversion Agent such that the Conversion Shares or related ADSs to be delivered by
or on behalf of the Settlement Shares Depository are to be registered in the same name or delivered to the same Clearing Agency
participant account, the number of such Conversion Shares to be delivered in respect thereof shall be calculated on the basis
of the aggregate Liquidation Preference of such contingent convertible capital securities being so converted and rounded down
to the nearest whole number of Common Shares or related ADSs, as applicable.

 

(d)
 Upon
any Trigger Event of any series of Contingent Convertible Capital Securities, Holders shall have no claim against the Company
in respect of (i) any Liquidation Preference of such series of Contingent Convertible Capital Securities or (ii) any accrued
and unpaid Distributions cancelled or otherwise unpaid in respect of Contingent Convertible Capital Securities of such series
and the Contingent Convertible Capital Securities of such series shall cease to represent any right other than the right to
receive Common Shares, if elected, or ADSs from or on behalf of the Settlement Shares Depository.

 

(e)  On the Conversion Settlement Date, the Company shall deliver to the Settlement Shares
Depository such number of Common Shares as is required to satisfy in full the Company’s obligation to deliver Common Shares
in respect of the Trigger Conversion of the aggregate Liquidation Preference of Contingent Convertible Capital Securities of such
series outstanding on the Trigger Event Notice Date.

 

(f)The
obligation of the Company to issue and deliver Conversion Shares to a Holder of Contingent Convertible Capital Securities of any
series on the relevant Conversion Settlement Date shall be satisfied by the delivery of such Conversion Shares to the Settlement
Shares Depository on behalf of the relevant Holder. Receipt of the relevant Conversion Shares by the Settlement Shares Depository
shall discharge the Company’s obligations in respect of such Contingent Convertible Capital Securities.

 

(g)Holders
of any series of Contingent Convertible Capital Securities shall have recourse to the Company only for the issue and delivery of
the relevant Conversion

 

    47 

     

    

Shares to the
Settlement Shares Depository. After such delivery, Holders of any series of Contingent Convertible Capital Securities shall have
recourse to the Settlement Shares Depository only for the delivery to them of such Conversion Shares or related ADSs, in the circumstances
described in ‎Section 4.06.

 

Section 4.02.Conversion Price.

 

“Conversion Price” means, on
the Trigger Event Notice Date, if the Common Shares are:

 

(a)then
admitted to trading on a Relevant Stock Exchange, the higher of:

 

(i)the Current Market Price
of a Common Share;

 

(ii)the Floor Price; and

 

(iii)the nominal value of
a Common Share, in each case on the Trigger Event Notice Date; or

 

(b)not
then admitted to trading on a Relevant Stock Exchange, the higher of (ii) and (iii) above.

 

Section
4.03.Anti-Dilution Adjustment of the Floor Price. For the purposes of this ‎Section 4.03 only (a) references to the
“issue” of Common Shares or Common Shares being issued shall, if not otherwise expressly specified in this
Contingent Convertible Capital Securities Indenture, include the transfer and/or delivery of Common Shares, whether newly
issued and allotted or previously existing or held by or on behalf of the Company or any member of the Group, and (b) Common
Shares held by or on behalf of the Company or any member of the Group (and which, in the case of Section 4.03‎(a)(iv) and
Section 4.03‎(a)(vi), do not rank for the relevant right or other entitlement) shall not be considered as or treated as
in issue or issued or entitled to receive any Dividend, right or other entitlement.

 

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

 

(a)Upon
the happening of any of the events described below and unless otherwise provided in the relevant prospectus supplement, the Floor
Price of any series of Contingent Convertible Capital Securities shall be adjusted as follows:

 

    48 

     

    

 

(i)If and whenever there
shall be a consolidation, reclassification/redesignation or subdivision affecting the number of Common Shares, the Floor Price
shall be adjusted by multiplying the Floor Price in force immediately prior to such consolidation, reclassification/redesignation
or subdivision by the following fraction:

 

A

B

 

where:

 

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

 

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

 

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

 

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

 

A

B

 

where:

 

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

 

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

 

Such adjustment shall become effective on
the first day on which Common Shares are traded ex-rights on the relevant Stock Exchange.

 

    49 

     

    

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

 

A – B 

A – C

 

where:

 

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

 

		B	is the portion of the Fair Market Value of the aggregate Extraordinary Dividend attributable to one Common Share, with such
portion being determined by dividing the Fair Market Value of the aggregate Extraordinary Dividend by the number of Common Shares
entitled to receive the relevant Dividend; and

 

		C	is the amount (if any) by which the Reference Amount determined in respect of the Relevant Dividend exceeds an amount equal
to the aggregate of the Fair Market Values of any previous Cash Dividends per Common Share paid or made in such Relevant Year (where
C shall equal zero if such previous Cash Dividends per Common Share are equal to, or exceed, the Reference Amount in respect of
the Relevant Year). For the avoidance of doubt, “C” shall equal the Reference Amount determined in respect of the Relevant
Dividend where no previous Cash Dividends per Common Share have been paid or made in such Relevant Year.

 

Such adjustment shall become effective on
the Effective Date or, if later, the first date upon which the Fair Market Value of the relevant Extraordinary Dividend can be
determined.

 

“Effective
Date” means, in respect of this Section 4.03‎‎(a)(iii)‎(A),
the first date on which the Common Shares are traded ex-the relevant Cash Dividend on the Relevant Stock Exchange.

 

“Extraordinary Dividend” means
(i) any Cash Dividend which is expressly declared by the Company to be a capital distribution, extraordinary dividend, extraordinary
distribution, special dividend, special distribution or return of value to its shareholders or any analogous or similar term (including
any distribution made as a result of any capital reduction), in which case the Extraordinary Dividend shall be such Cash Dividend;
or (ii) any Cash Dividend (the “Relevant Dividend”) paid or made in a financial year of the Company (the “Relevant
Year”) if (A) the Fair Market Value of the Relevant Dividend per Common Share or (B) the sum of (I) the Fair Market Value
of the Relevant Dividend per Common Share and (II) an amount equal to the aggregate of the Fair Market Value or Fair Market Values
of any other Cash Dividend or Cash Dividends per Common Share paid or made in the Relevant Year (other than any Cash Dividend or

 

    50 

     

    

part thereof previously determined to be an
Extraordinary Dividend paid or made in such Relevant Year), exceeds the Reference Amount, and in that case the Extraordinary Dividend
shall be the amount by which the Reference Amount is so exceeded.

 

“Reference Amount” means an
amount per Ordinary Share that is consistent with the dividend policy of the Company as applied or to be applied for a period or
projected period of at least three years.

 

(B)If and whenever the Company
shall pay or make any Non-Cash Dividend to Shareholders, the Floor Price shall be adjusted by multiplying the Floor Price in force
immediately prior to the Effective Date by the following fraction:

 

A – B

   A

 

where:

 

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

 

		B	is the portion of the Fair Market Value of the aggregate Non-Cash Dividend attributable to one Common Share, with such portion
being determined by dividing the Fair Market Value of the aggregate Non-Cash Dividend by the number of Common Shares entitled to
receive the relevant Non-Cash Dividend (or, in the case of a purchase, redemption or buy back of Common Shares or any depositary
or other receipts or certificates representing Common Shares by or on behalf of the Company or any member of the Group, by the
number of Common Shares in issue immediately following such purchase, redemption or buy back, and treating as not being in issue
any Common Shares, or any Common Shares represented by depositary or other receipts or certificates, purchased, redeemed or bought
back).

 

Such adjustment shall become effective on
the Effective Date or, if later, the first date upon which the Fair Market Value of the relevant Non-Cash Dividend is capable of
being determined as provided herein.

 

“Effective
Date” means, in respect of this ‎Section
4.03‎(a)‎(iii)‎(B),
the first date on which the Common Shares are traded ex-the relevant Dividend on the Relevant Stock Exchange or, in the case of
a purchase, redemption or buy back of Common Shares or any depositary or other receipts or certificates representing Common Shares
by or on behalf of the Company or any member of the Group, the date on which such purchase, redemption or buy back is made (or,
in any such case if later, the first date upon which the Fair Market Value of the relevant Dividend is capable of being determined
as provided herein) or in the case of a Spin-Off, the first date on which the Common Shares are traded ex-the relevant Spin-Off
on the Relevant Stock Exchange.

    51 

     

    

 

(C)For
the purposes of the above, Fair Market Value shall (subject as provided in paragraph ‎(a)
of the definition of “Dividend” and in the definition of “Fair Market Value”) be determined as at the Effective
Date.

 

(D)In making any calculations
for the purposes of this Section 4.03(a)(iii), such adjustments (if any) shall be made as an Independent Financial Adviser may determine
in good faith to be appropriate to reflect (A) any consolidation or sub-division of any Common Shares or (B) the issue of Common
Shares by way of capitalisation of profits or reserves (or any like or similar event) or (C) any increase in the number of Common
Shares in issue in the Relevant Year in question.

 

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

 

A + B 

A + C

 

where:

 

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

 

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

 

		C	is the number of Common Shares to be issued or, as the case may be, the maximum number of Common Shares which may be issued
upon exercise of such options, warrants or rights calculated as at the date of issue of such options, warrants or rights or upon
conversion or exchange or exercise of rights of subscription or purchase or other rights of acquisition in respect

 

    52 

     

    

thereof at the initial conversion,
exchange, subscription, purchase or acquisition price or rate,

 

provided that
if at the first date on which the Common Shares are traded ex-rights, ex-options or ex-warrants on the Relevant Stock Exchange
(as used in this ‎Section
4.03‎(a)‎(iv),
the “Specified Date”) such number of Common Shares is to be determined by reference to the application of a formula
or other variable feature or the occurrence of any event at some subsequent time, then for the purposes of this ‎Section
4.03‎(a)‎(iv),
“C” shall be determined by the application of such formula or variable feature or as if the relevant event occurs or
had occurred as at the Specified Date and as if such conversion, exchange, subscription, purchase or acquisition had taken place
on the Specified Date.

 

Such adjustment shall become effective on
the Effective Date.

 

“Effective
Date” means, in respect of this ‎Section
4.03‎(a)‎(iv),
the first date on which the Common Shares are traded ex-rights, ex-options or ex-warrants on the Relevant Stock Exchange.

 

(v)If and whenever the Company
or any member of the Group or (at the direction or request or pursuant to any arrangements with the Company or any member of the
Group) any other company, person or entity shall issue any Securities (other than Common Shares or options, warrants or other rights
to subscribe for or purchase or otherwise acquire any Common Shares or Securities which by their terms carry (directly or indirectly)
rights of conversion into, or exchange or subscription for, or rights to otherwise acquire, Common Shares) to its shareholders
as a class by way of rights or grant to its shareholders as a class by way of rights any options, warrants or other rights to subscribe
for or purchase or otherwise acquire any Securities (other than Common Shares or options, warrants or other rights to subscribe
for or purchase or otherwise acquire Common Shares or Securities which by their term carry (directly or indirectly) rights of conversion
into, or exchange or subscription for, rights to otherwise acquire, Common Shares), the Floor Price shall be adjusted by multiplying
the Floor Price in force immediately prior to the Effective Date by the following fraction:

 

A – B 

   A

 

where:

 

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

 

		B	is the Fair Market Value on the Effective Date of the portion of the rights attributable to one Common Share.

 

    53 

     

    

Such adjustment shall become effective on
the Effective Date.

 

“Effective
Date” means, in respect of this ‎Section
4.03‎(a)‎(v),
the first date on which the Common Shares are traded ex-the relevant Securities or ex-rights, ex-option or ex-warrants on the Relevant
Stock Exchange.

 

(vi)If
and whenever the Company shall issue (otherwise than as mentioned in ‎Section
4.03‎(a)‎(iv)
above) wholly for cash or for no consideration any Common Shares (other than Common Shares issued on conversion of the any
series of Contingent Convertible Capital Securities or on the exercise of any rights of conversion into, or exchange or
subscription for or purchase of, or right to otherwise acquire Common Shares) or if and whenever the Company or any member of
the Group or (at the direction or request or pursuance to any arrangements with the Company or any member of the Group) any
other company, person or entity shall issue or grant (otherwise than as mentioned in Section 4.03(a)(iv) above) wholly for cash or
for no consideration any options, warrants or other rights to subscribe for or purchase or otherwise acquire any Common
Shares (other than the Contingent Convertible Capital Securities of any series, which for this purpose include any Further
Contingent Convertible Capital Securities), in each case at a price per Common Share which is less than 95 percent of the
Current Market Price per Common Share on the date of the first public announcement of the terms of such issue or grant, the
Floor Price shall be adjusted by multiplying the Floor Price in force immediately prior to the Effective Date by the
following fraction:

 

A + B 

A + C

 

where:

 

		A	is the number of Common Shares in issue immediately before the issue of such Common Shares or the grant of such options, warrants
or rights;

 

		B	is the number of Common Shares which the aggregate consideration (if any) receivable for the issue of such Common Shares or,
as the case may be, for the Common Shares to be issued or otherwise made available upon the exercise of any such options, warrants
or rights, would purchase at such Current Market Price per Common Share on the Effective Date; and

 

		C	is the number of Common Shares to be issued pursuant to such issue of such Common Shares or, as the case may be, the maximum
number of Common Shares which may be issued upon exercise of such options, warrants or rights calculated as at the date of issue
of such options, warrants or rights,

 

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provided that
if at the time of issue of such Common Shares or date of issue or grant of such options, warrants or rights (as used in this ‎Section
4.03‎(a)‎(vi),
the “Specified Date”), such number of Common Shares is to be determined by reference to the application of a formula
or other variable feature or the occurrence of any event at some subsequent time, then for the purposes of this ‎Section
4.03‎(a)‎(vi),
“C” shall be determined by the application of such formula or variable feature or as if the relevant event occurs or
had occurred as at the Specified Date and as if such conversion, exchange, subscription, purchase or acquisition had taken place
on the Specified Date.

 

Such adjustment shall become effective on
the Effective Date.

 

“Effective
Date” means, in respect of this ‎Section
4.03‎(a)‎(vi),
the date of issue of such Common Shares or, as the case may be, the grant of such options, warrants or rights.

 

(vii)If
and whenever the Company or any member of the Group or (at the direction or request of or pursuant to any arrangements with the
Company or any member of the Group) any other company, person or entity (otherwise than as mentioned in ‎Section
4.03‎(a)‎(iv),
‎Section 4.03‎(a)‎(v)
or ‎‎Section 4.03‎(a)‎(vi))
shall issue wholly for cash or for no consideration any Securities (other than Contingent Convertible Capital Securities of any
series) which by their terms of issue carry (directly or indirectly) rights of conversion into, or exchange or subscription for,
purchase of, or rights to otherwise acquire, Common Shares (or shall grant any such rights in respect of existing Securities so
issued) or Securities which by their terms might be reclassified/redesignated as Common Shares, and the consideration per Common
Share receivable upon conversion, exchange, subscription, purchase, acquisition or redesignation is less than 95 per cent of the
Current Market Price per Common Share on the date of the first public announcement of the terms of issue of such Securities (or
the terms of such grant), the Floor Price shall be adjusted by multiplying the Floor Price in force immediately prior to the Effective
Date by the following fraction:

 

A + B 

A + C

 

where:

 

		A	is the number of Common Shares in issue immediately before such issue or grant (but where the relevant Securities carry rights
of conversion into or rights of exchange or subscription for, purchase of, or rights to otherwise acquire Common Shares which have
been issued, purchased or acquired by the Company or any member of the Group (or at the direction or request or pursuant to any
arrangements with the Company or any member of the Group) for the purposes of or in connection with such issue, less the number
of such Common Shares so issued, purchased or acquired);

 

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		B	is the number of Common Shares which the aggregate consideration (if any) receivable for the Common Shares to be issued or
otherwise made available upon conversion or exchange or upon exercise of the right of subscription, purchase or acquisition attached
to such Securities or, as the case may be, for the Common Shares to be issued or to arise from any such reclassification/redesignation
would purchase at such Current Market Price per Common Share; and

 

		C	is the maximum number of Common Shares to be issued or otherwise made available upon conversion or exchange of such Securities
or upon the exercise of such right of subscription attached thereto at the initial conversion, exchange, subscription, purchase
or acquisition price or rate or, as the case may be, the maximum number of Common Shares which may be issued or arise from any
such reclassification/redesignation;

 

provided that
if at the time of issue of the relevant Securities or date of grant of such rights (as used in this ‎Section
4.03‎(a)‎(vii),
the “Specified Date”) such number of Common Shares is to be determined by reference to the application of a formula
or other variable feature or the occurrence of any event at some subsequent time (which may be when such Securities are converted
or exchanged or rights of subscription, purchase or acquisition are exercised or, as the case may be, such Securities are reclassified/redesignated
or at such other time as may be provided), then for the purposes of this ‎Section
4.03‎(a)‎(vii),
“C” shall be determined by the application of such formula or variable feature or as if the relevant event occurs or
had occurred as at the Specified Date and as if such conversion, exchange, subscription, purchase or acquisition or, as the case
may be, reclassification/redesignation had taken place on the Specified Date.

 

Such adjustment shall become effective on
the Effective Date.

 

“Effective
Date” means, in respect of this ‎Section
4.03‎(a)‎(vii),
the date of issue of such Securities or, as the case may be, the grant of such rights.

 

(viii)If
and whenever there shall be any modification of the rights of conversion, exchange, subscription, purchase or acquisition attaching
to any Securities (other than the Contingent Convertible Capital Securities of any series) pursuant to ‎Section
4.03‎(a)‎(vii)
above (other than in accordance with the terms (including terms as to adjustment) applicable to such Securities upon issue) so
that following such modification the consideration per Common Share receivable has been reduced and is less than 95 per cent of
the Current Market Price per Common Share on the date of the first public announcement of the proposals for such modification,
the Floor Price shall be adjusted by multiplying the Floor Price in force immediately prior to the Effective Date by the following
fraction:

 

A + B 

A + C

 

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where:

 

		A	is the number of Common Shares in issue immediately before such modification (but where the relevant Securities carry rights
of conversion into or rights of exchange or subscription for, or purchase or acquisition of, Common Shares which have been issued,
purchased or acquired by the Company or any member of the Group (or at the direction or request or pursuant to any arrangements
with the Company or any member of the Group) for the purposes of or in connection with such Securities, less the number of such
Common Shares so issued, purchased or acquired);

 

		B	is the number of Common Shares which the aggregate consideration (if any) receivable for the Common Shares to be issued or
otherwise made available upon conversion or exchange or upon exercise of the right of subscription, purchase or acquisition attached
to the Securities so modified would purchase at such Current Market Price per Common Share or, if lower, the existing conversion,
exchange, subscription, purchase or acquisition price or rate of such Securities; and

 

		C	is the maximum number of Common Shares which may be issued or otherwise made available upon conversion
or exchange of such Securities or upon the exercise of such rights of subscription, purchase or acquisition attached thereto at
the modified conversion, exchange, subscription, purchase or acquisition price or rate but giving credit in such manner as an Independent
Financial Adviser in good faith shall consider appropriate for any previous adjustment under this ‎Section
4.03‎(a)‎(viii)
or Section 4.03‎(a)‎(vii);

 

provided that if at the time of such modification
(as used in this Section 4.03(a)(viii), the “Specified Date”) such number of Common Shares is to be determined by reference
to the application of a formula or other variable feature or the occurrence of any event at some subsequent time (which may be
when such Securities are converted or exchanged or rights of subscription, purchase or acquisition are exercised or at such other
time as may be provided) then for the purposes of this Section 4.03(a)(viii), “C” shall be determined by the application
of such formula or variable feature or as if the relevant event occurs or had occurred as at the Specified Date and as if such
conversion, exchange, subscription, purchase or acquisition had taken place on the Specified Date.

 

Such adjustment shall become effective on
the Effective Date.

 

“Effective Date” means, in respect
of this Section 4.03(a)(viii), the date of modification of the rights of conversion, exchange, subscription, purchase or acquisition
attaching to such Securities.

 

(ix)If and whenever the Company
or any member of the Group or (at the direction or request of or pursuant to any arrangements with the Company or any member of
the Group) any other company, person or entity shall offer any

 

    57 

     

    

Securities in connection with which
its shareholders as a class are entitled to participate in arrangements whereby such Securities may be acquired by them (except
where the Floor Price falls to be adjusted under Section 4.03(a)(ii), Section 4.03(a)(iii), Section 4.03(a)(iv), Section 4.03(a)(v),
Section 4.03(a)(v) or Section 4.03(a)(x) (or would fall to be so adjusted if the relevant issue or grant was at less than 95 per
cent of the Current Market Price per Common Share on the relevant dealing day under Section 4.03(a)(v) above)) the Floor Price shall
be adjusted by multiplying the Floor Price in force immediately before the Effective Date by the following fraction:

 

A – B 

   A

 

where:

 

Ais the Current Market Price of one
Common Share on the Effective Date; and

 

Bis the Fair Market Value on the Effective
Date of the portion of the relevant offer attributable to one Common Share.

 

Such adjustment shall become effective on
the Effective Date.

 

“Effective Date” means, in respect
of this Section 4.03(a)(ix), the first date on which the Common Shares are traded ex-rights on the Relevant Stock Exchange.

 

(x)If the Company determines
that a reduction to the Floor Price should be made for whatever reason, the Floor Price will be reduced (either generally or for
a specified period as notified to holders of the contingent convertible capital securities of such relevant series) in such manner
and with effect from such date as Banco Santander shall determine and notify to the holders of the relevant series of contingent
convertible capital securities.

 

(b)Notwithstanding
Section 4.03(a):

 

(i)where the events or circumstances
giving rise to any adjustment of the Floor Price have already resulted or will result in an adjustment to the Floor Price or where
the events or circumstances giving rise to any adjustment arise by virtue of any other events or circumstances which have already
given or will give rise to an adjustment to the Floor Price or where more than one event which gives rise to an adjustment to the
Floor Price occurs within such a short period of time that, in the opinion of the Company, a modification to the operation of the
adjustment provisions is required to give the intended result, such modification shall be made to the operation of the adjustment
provisions as may be determined in good faith by an Independent
Financial Adviser to be in its opinion appropriate to give the intended result; and

 

    58 

     

    

 

(ii)such modification shall
be made as may be determined in good faith by an Independent Financial Adviser to be in its opinion appropriate (A) to ensure that
an adjustment to the Floor Price or the economic effect thereof shall not be taken into account more than once and (B) to ensure
that the economic effect of a Dividend is not taken into account more than once.

 

(c)For
the purpose of any calculation of the consideration receivable or price pursuant to Section 4.03(a)(iv), Section 4.03(a)(vi), Section
4.03(a)(vii) and Section 4.03(a)(viii) above, the following provisions shall apply:

 

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

 

(ii)(A) the aggregate consideration
receivable or price for Common Shares to be issued or otherwise made available upon the conversion or exchange of any Securities
shall be deemed to be the consideration or price received or receivable for any such Securities and (B) the aggregate consideration
receivable or price for Common Shares to be issued or otherwise made available upon the exercise of rights of subscription attached
to any Securities or upon the exercise of any options, warrants or rights shall be deemed to be that part (which may be the whole)
of the consideration or price received or receivable for such Securities or, as the case may be, for such options, warrants or
rights which are attributed by the Company to such rights of subscription or, as the case may be, such options, warrants or rights
or, if no part of such consideration or price is so attributed, the Fair Market Value of such rights of subscription or, as the
case may be, such options, warrants or rights as at the relevant Effective Date as referred to in Section 4.03(a)(iv), Section
4.03(a)(vi), Section 4.03(a)(vii) or Section 4.03(a)(viii) above, as the case may be, plus in the case of each of (A) and (B) above,
the additional minimum consideration receivable or price (if any) upon the conversion or exchange of such Securities, or upon the
exercise of such rights or subscription attached thereto or, as the case may be, upon exercise of such options, warrants or rights
and (C) the consideration receivable or price per Common Share upon the conversion or exchange of, or upon the exercise of such
rights of subscription attached to, such Securities or, as the case may be, upon the exercise of such options, warrants or rights
shall be the aggregate consideration or price referred to in (A) or (B) above (as the case may be) divided by the number of Common
Shares to be issued upon such conversion or exchange or exercise at the initial conversion, exchange or subscription price or rate;

 

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

 

(iv)in determining the consideration
or price pursuant to the above, no deduction shall be made for any commissions or fees (howsoever described) or

 

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any expenses paid or incurred for
any underwriting, placing or management of the issue of the relevant Common Shares or Securities or options, warrants or rights,
or otherwise in connection therewith; and

 

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

 

(d)
If the record date in respect of any consolidation, reclassification/ redesignation or sub-division
as is mentioned in Section 4.03(a)(i), or the record date or other due date for the establishment of entitlement for any such
issue, distribution, grant or offer (as the case may be) as is mentioned in Section 4.03(a)(ii), Section 4.03(a)(iii), Section
4.03(a)(iv), Section 4.03(a)(v) or Section 4.03(a)(ix), or the date of the first public announcement of the terms of any such
issue or grant as is mentioned in Section 4.03(a)(vi) and Section 4.03(a)(vii) above or of the terms of any such modification
as is mentioned in Section 4.03(a)(viii) above, shall be after the Trigger Event Notice Date in relation to the conversion of
any Contingent Convertible Capital Security of any series but before the date on which the resolution of issuance of the relevant
Common Shares is approved, then the Company shall procure the execution of the corresponding adjustment mechanism pursuant to
this ‎Section 4.03 so that there shall be issued and delivered to the Settlement Shares Depository, for onward delivery
to the holders of the relevant Contingent Convertible Capital Securities, in accordance with the instructions contained in the
Delivery Notices received by the Settlement Shares Depository, such number of Common Shares that could be required to be issued
and delivered on such conversion taking into account the relevant adjustment to the Floor Price pursuant to this ‎Section
4.03 and all references to the issue and/or delivery of Common Shares or Conversion Shares in this Contingent Convertible Capital
Securities Indenture shall be construed accordingly.

 

(e)If
any doubt shall arise as to whether an adjustment falls to be made to the Floor Price or as to the appropriate adjustment to the
Floor Price, and following consultation between the Company and an Independent Financial Adviser, a written determination of such
Independent Financial Adviser in respect thereof shall be conclusive and binding on all parties, save in the case of wilful default,
bad faith or manifest error.

 

(f)No
adjustment will be made to the Floor Price where Common Shares or other Securities (including rights, warrants and options) are
issued, offered, exercised, allotted, purchased, appropriated, modified or granted to, or for the benefit of, employees or former
employees (including directors holding or formerly holding executive or non-executive office or the personal service company of
any such person) or their spouses or relatives, in each case, of the Company or any of member of the Group or any associated company
or to a trustee or trustees or intermediary to be held for the benefit of any such person, in any such case pursuant to any share
or option or similar scheme.

 

    60 

     

    

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

 

(h)Notice
of any adjustments to the Floor Price shall be given by the Company to holders of the Contingent Convertible Capital Securities
of any series through the filing of a relevant event (hecho relevante) announcement with the CNMV and its publication in
accordance with the rules and regulations of any applicable stock exchange or other relevant authority and in accordance with ‎Section
1.06 promptly after the determination thereof.

 

Section 4.04.Conversion Procedures.
Settlement Shares.

 

(a)If
the Trigger Event occurs at any time on or after the issue date of any series of contingent convertible capital securities, then
the Company will notify the Regulator and holders of such series of contingent convertible capital securities immediately through
(i) the filing of a relevant event (hecho relevante) announcement with the CNMV and its publication in accordance with the rules
and regulations of any applicable stock exchange or other relevant authority and (ii) to the Regulator, Holders and Trustee in
accordance with ‎Section 1.06 (the “Trigger
Event Notice”).

 

(b)A
Trigger Event Notice shall be a written notice specifying the following information:

 

(i)that a Trigger Event has
occurred;

 

(ii)the
then-prevailing Conversion Price (which Conversion Price shall remain subject to any subsequent adjustment as set forth under ‎Section
4.03); 

 

(iii)the Conversion Settlement
Date;

 

(iv)the date on which the
Company expects DTC to suspend all clearance and settlement of transactions in the Securities in accordance with its rules and
procedures (the “Suspension Date”);

 

(v)the contact details of
the Settlement Shares Depository (if one has been appointed) and Paying and Conversion Agent and the procedures holders of the
contingent convertible capital securities must follow to obtain delivery of the Conversion Shares or related ADSs;

 

    61 

     

    

(vi)if the Company has been
unable to appoint a Settlement Shares Depository, such other arrangements for the issuance and/or delivery of the Conversion Shares
to the Holders of the Contingent Convertible Capital Securities of such series as it shall consider reasonable in the circumstances;

 

(vii)that the Contingent
Convertible Capital Securities shall remain in existence for the sole purpose of evidencing the holder’s right to receive
Common Shares or related ADSs from or on behalf of the Settlement Shares Depository.

 

(c)The
date on which the Trigger Event Notice shall be deemed to have been given shall be the date on which it is dispatched by the Company
to DTC.

 

(d)Upon
the Company’s determination that a Trigger Event has occurred, it shall immediately inform the Regulator and shall, prior
to giving a Trigger Event Notice, deliver to the Trustee a certificate stating that a Trigger Event has occurred, which the Trustee
shall accept without any further enquiry as sufficient evidence of such matters, in which event such certificate will be conclusive
and binding on the Trustee, the Holders and beneficial owners of the contingent convertible capital securities of such series.

 

(e)
Within two (2) Business Days after its receipt of the Trigger Event Notice, the Trustee shall
transmit the Trigger Event Notice to DTC and promptly following its receipt of the Trigger Event Notice, pursuant to DTC’s
procedures currently in effect, DTC will post the Trigger Event Notice to its Reorganization Inquiry for Participants System.

 

(f)  If
the Trigger Event occurs, the Contingent Convertible Capital Securities of any series will be converted in whole and not in part.

 

(g) Notwithstanding
anything set forth in this Contingent Convertible Capital Securities Indenture to the contrary, once the Company has delivered
a Trigger Event Notice following the occurrence of a Trigger Event, (i) subject to the right of holders of the Contingent Convertible
Capital Securities of the relevant series relating to a breach of the Performance Obligation in the event of a failure by the
Company to issue and deliver any Common Shares to the Settlement Shares Depository on the Conversion Settlement Date, the Contingent
Convertible Capital Securities Indenture shall impose no duties upon the Trustee whatsoever with regard to a Trigger Conversion
and the Holders of the Contingent Convertible Capital Securities of such series shall have no rights whatsoever under the Contingent
Convertible Capital Securities Indenture or the Contingent Convertible Capital Securities of such series to instruct the Trustee
to take any action whatsoever and (ii) as of the date of the Trigger Event Notice, except for any indemnity and/or security provided
by any holders of the Contingent Convertible Capital Securities of such series in such direction or related to such direction,
any direction previously given to the Trustee by any Holders of the Contingent Convertible Capital Securities of such series shall
cease automatically and shall be null and void and of no further effect.

 

    62 

     

    

 

 (h)
The Company’s obligations to indemnify the Trustee in accordance with the Contingent Convertible Capital Securities Indenture
shall survive any Trigger Conversion.

 

Section 4.05.
Agreement and Waiver with Respect to Trigger Conversion. The Contingent Convertible Capital Securities of any series are not convertible
into Common Shares at the option of Holders of Contingent Convertible Capital Securities of any series at any time and are not
redeemable in cash as a result of a Trigger Event. Notwithstanding any other provision herein, by its acquisition of the Contingent
Convertible Capital Securities of any series, each Holder and beneficial owner shall be deemed to have (i) agreed to all the terms
and conditions of the Contingent Convertible Capital Securities of such series, including, without limitation, those related to
(x) Trigger Conversion following a Trigger Event and (y) the appointment of the Settlement Shares Depository, the issuance of
the Settlement Shares to the Settlement Shares Depository (or to the relevant recipient in accordance with the terms of the Contingent
Convertible Capital Securities of such series), and acknowledged that such events in (x) and (y) may occur without any further
action on the part of the Holders or beneficial owner of the Contingent Convertible Capital Securities of such series or the Trustee,
(ii) agreed that effective upon, and following, the Trigger Conversion, no amount shall be due and payable to the Holders of the
Contingent Convertible Capital Securities of such series, and the Company’s liability to pay any such amounts (including
the Liquidation Preference of, or any Distribution in respect of, the Contingent Convertible Capital Securities of such series),
except as noted under ‎Section 4.06 with respect to certain stamp and similar taxes, shall be automatically released, and
the Holders shall not have the right to give a direction to the Trustee with respect to the Trigger Event and any related Trigger
Conversion, (iii) waived, to the extent permitted by the Trust Indenture Act, any claim against the Trustee arising out of its
acceptance of its trusteeship under, and the performance of its duties, powers and rights in respect of, the Contingent Convertible
Capital Securities Indenture and in connection with the Contingent Convertible Capital Securities of such series, including, without
limitation, claims related to or arising out of or in connection with a Trigger Event and/or any Trigger Conversion and (iv) authorized,
directed and requested DTC, the European Clearing Systems and any direct participant in DTC, the European Clearing Systems or
other intermediary through which it holds such Contingent Convertible Capital Securities to take any and all necessary action,
if required, to implement the Trigger Conversion without any further action or direction on the part of such Holder of the Contingent
Convertible Capital Securities of such series or the Trustee.

 

Section 4.06.Settlement
Procedures.

 

(a)Delivery
of the Common Shares, or, if the Holder elects, ADSs, to the Holders of the any series of Contingent Convertible Capital Securities
upon a Trigger Event shall be made in accordance with the procedures set forth in this ‎Section
4.06, which remain subject to change to reflect changes in clearing system practices.

 

(b)Holders
of any series of Contingent Convertible Capital Securities cleared and settled through DTC may elect to have their Common Shares
delivered in the form of

 

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Common Shares
or ADSs in accordance with the procedures set forth in this ‎Section
4.06. The obligation to deliver ADSs if a Holder elects to have its Common Shares delivered in such form will apply only if at
the time of any Trigger Conversion the Company continues to maintain an ADS depositary facility. 

 

(c)The
Trigger Event Notice shall specify the Suspension Date. On the Suspension Date, DTC shall suspend all clearance and settlement
of transactions in the relevant series of Contingent Convertible Capital Securities. As a result, Holders of the Contingent Convertible
Capital Securities of such series will not be able to settle any transfers of any Contingent Convertible Capital Securities of
such series following the Suspension Date, and any sale or other transfer of the Contingent Convertible Capital Securities of such
series that a Holder of the Contingent Convertible Capital Securities of such series may have initiated prior to the Suspension
Date that is scheduled to settle after the Suspension Date will be rejected by DTC and will not be settled through DTC. The Contingent
Convertible Capital Securities of such series may cease to be admitted to trading on any stock exchange on which the Contingent
Convertible Capital Securities of such series are then listed or admitted to trading after the Suspension Date.

 

(d)On
the Suspension Date, the Company shall deliver a notice in accordance with ‎Section
1.06 to the Trustee and to the Holders of the Contingent Convertible Capital Securities of the relevant series (a “Settlement
Request Notice”) requesting that holders and beneficial owners of the Contingent Convertible Capital Securities of such
series complete a notice to be delivered to the Paying and Conversion Agent, with a copy to the Trustee (a “Delivery
Notice”). The Settlement Request Notice shall specify (i) the date by which the Delivery Notice must be received by
the Paying and Conversion Agent (the “Notice Cut-off Date”) and (ii) the date on which the Contingent Convertible
Capital Securities of such series in relation to which no Delivery Notice has been received by the Paying and Conversion Agent
on or before the Notice Cut-off Date shall be cancelled, which will be no more than twelve Business Days after the Conversion
Settlement Date (the “Final Cancellation Date”), as set forth in ‎Section
4.07.

 

(e)In
order to obtain delivery of the relevant Common Shares, or, if the Holder elects, ADSs, a Holder or beneficial owner must deliver
its Contingent Convertible Capital Securities and Delivery Notice to the Paying and Conversion Agent (including, the delivery of
such Contingent Convertible Capital Securities and Delivery Notice to the Paying and Conversion Agent through DTC) on or before
the Notice Cut-off Date. If such delivery is made after the end of normal business hours at the specified office of the Paying
and Conversion Agent, such delivery shall be deemed for all purposes to have been made or given on the following Business Day.
The Delivery Notice shall contain: (i) the name of the Holder or beneficial owner of the applicable series of Contingent Convertible
Capital Securities; (ii) the aggregate Liquidation Preference held by such Holder or beneficial owner of such series of Contingent
Convertible Capital Securities on the date of such notice; (iii) the name in which the Common Shares or ADSs, as applicable, are
to be registered, if applicable (iv) whether Common Shares or ADSs are to be delivered to the Holder or beneficial owner of such
series of Contingent Convertible Capital Securities; (v) the details of the DTC, Iberclear or other clearing system account

 

    64 

     

    

(subject to the limitations set out below)
to which the ADSs or Common Shares are to be credited, details of the registered account in our ADS facility if direct registration
ADSs are to be issued, or, if the Common Shares are not a participating security in Iberclear or another clearing system, the address
to which the Common Shares should be delivered; and (vi) such other details as may be required by the Paying and Conversion Agent.

 

(f)The
Delivery Notice must be given and the Contingent Convertible Capital Securities Delivered in accordance with the applicable procedures
of DTC (which may include the notice being given to the Paying and Conversion Agent by electronic means) and in a form acceptable
to DTC and the Paying and Conversion Agent.

 

(g)Subject
to satisfaction of the requirements and limitations set forth in this ‎Section
4.06 and provided the Delivery Notice is delivered on or before the Notice Cut-off Date, the Paying and Conversion Agent shall
give instructions to the Settlement Shares Depository that the Settlement Shares Depository shall deliver the relevant Common Shares
(rounded down to the nearest whole number of Common Shares) to, or shall deposit such relevant Common Shares with the ADS Depositary
on behalf of, the Holder or beneficial owner of the relevant Contingent Convertible Capital Securities completing the relevant
Delivery Notice or its nominee in accordance with the instructions given in such Delivery Notice on the applicable Conversion Settlement
Date.

 

(h)Any
Delivery Notice shall be irrevocable. Failure properly to complete and deliver a Delivery Notice and deliver the relevant Contingent
Convertible Capital Securities may result in such Delivery Notice being treated as null and void and the Company shall be entitled
to procure the sale of any applicable Common Shares to which the relevant holder may be entitled in accordance with Section 4.06.
Any determination as to whether any Delivery Notice has been properly completed and delivered as provided in this ‎Section
4.06 shall be made by the Company in its sole discretion, acting in good faith, and shall, in the absence of manifest error, be
conclusive and binding on the relevant holders.

 

(i)A
Holder of the Contingent Convertible Capital Securities of any series or Selling Agent (as defined in ‎Section
4.07) must pay (in the case of the Selling Agent by means of deduction from the net proceeds of sale set forth in ‎Section
4.07) any taxes and capital, stamp, issue and registration and transfer taxes or duties arising on Trigger Conversion (other than
any taxes or capital, issue and registration and transfer taxes or stamp duties payable in Spain by the Company in respect of the
issue and delivery of the Common Shares in accordance with a Delivery Notice delivered pursuant to the Contingent Convertible Capital
Securities Indenture which shall be paid by the Company) and such holder or the Selling Agent (as the case may be) must pay (in
the case of the Selling Agent, by way of deduction from the net proceeds of sale as aforesaid) all, if any, taxes arising by reference
to any disposal or deemed disposal of a Contingent Convertible Capital Security or interest therein.

 

(j)If
the Company shall fail to pay any capital, stamp, issue, registration and transfer taxes and duties for which it is responsible
as provided above, the holder or Selling Agent, as the case may be, shall be entitled (but shall not be obliged) to tender

 

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and pay the same and the Company as a separate
and independent obligation, undertakes to reimburse and indemnify each holder or Selling Agent, as the case may be, in respect
of any payment thereof and any penalties payable in respect thereof.

 

(k)The
Common Shares issued on Trigger Conversion will be fully paid and will in all respects rank pari passu with the fully paid
Common Shares in issue on the Trigger Event Notice Date, except in any such case for any right excluded by mandatory provisions
of applicable law and except that such Common Shares will not rank for (or, as the case may be, the relevant holder shall not be
entitled to receive) any rights, dividends or payments the record date or other due date for the establishment of entitlement for
which falls prior to the date that the resolution of issuance of the relevant Common Shares is approved.

 

Section 4.07.Failure to Deliver a
Delivery Notice.

 

(a)If
a duly completed Delivery Notice and the relevant Contingent Convertible Capital Securities are not delivered to a Paying and Conversion
Agent as provided in the Contingent Convertible Capital Securities Indenture on or before the Notice Cut-off Date, then at any
time following the Notice Cut-off Date and prior to the 10th Business Day after the Conversion Settlement Date, the Company may
in its sole and absolute discretion (and the relevant Holders of such Contingent Convertible Capital Securities shall be deemed
to agree thereto), elect to appoint a person (the “Selling Agent”) to procure that all Common Shares held by the Settlement
Shares Depository in respect of which the applicable Contingent Convertible Capital Securities and completed Delivery Notice have
not been delivered on or before the Notice Cut-off Date as aforesaid shall be sold by or on behalf of the Selling Agent as soon
as reasonably practicable.

 

(b)
If the applicable Contingent Convertible Capital Securities and Delivery Notice are not delivered
to the Paying and Conversion Agent on or before the Notice Cut-off Date, the Settlement Shares Depository shall continue to hold
any Conversion Shares not sold by the Selling Agent until a Delivery Notice is so delivered or the Final Cancellation Date, whichever
is earlier. However, any Holder or beneficial owner of the Contingent Convertible Capital Securities delivering a Delivery Notice
after the Notice Cut-off Date will have to provide evidence of its entitlement to the relevant Common Shares, or if the holder
elects, ADSs satisfactory to the Settlement Shares Depository in its sole and absolute discretion in order to receive delivery
of such Common Shares or ADSs (if so elected to be deposited with the ADS Depositary on its behalf).

  

(c)Subject
to the deduction by or on behalf of the Selling Agent of any amount payable in respect of its liability to taxation and the payment
of any capital, stamp, issue, registration and/or transfer taxes and duties (if any) and any fees or costs incurred by or on behalf
of the Selling Agent in connection with the issue, allotment and sale thereof, and the conversion of any proceeds of such sale
into U.S. dollars, the net proceeds of such sale, converted into U.S. dollars at the Prevailing Rate on the Notice Cut-off Date,
if necessary, shall as soon as reasonably practicable be distributed rateably to the relevant Holders in such manner and at such
time as the Company shall determine and notify to

 

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the relevant
Holders. Such payment shall for all purposes discharge the obligations of the Company, the Settlement Shares Depository, the Paying
and Conversion Agent and the Selling Agent to such Holders in respect of the Trigger Conversion. The Company, the Settlement Shares
Depository and the Selling Agent shall have no liability in respect of the exercise or non-exercise of any discretion or power
pursuant to this ‎Section 4.07 or in respect
of any sale of any Common Shares, whether for the timing of any such sale or the price at or manner in which any such Common Shares
are sold or the inability to sell any such Common Shares.

 

(d)If
the Company does not appoint the Selling Agent by the 10th Business Day after the Conversion Settlement Date, or if any Common
Shares are not sold by the Selling Agent in accordance with this ‎Section
4.07, Common Shares for which a Delivery Notice has not been received will be cancelled on the Final Cancellation Date.

 

Section 4.08.Delivery of ADSs.
In respect of any Conversion Shares that Holders elect to receive in the form of ADSs as specified in the Delivery Notice, the
Settlement Shares Depository shall deposit with the custodian for the ADS Depositary the number of Conversion Shares to be issued
upon Trigger Conversion of the relevant series of Contingent Convertible Capital Securities, and the ADS Depositary shall issue
the corresponding number of ADSs to the DTC Participant account or registered ADS facility account specified by such Holders (per
the ADS-to-ordinary share ratio in effect on the Conversion Settlement Date). However, the issuance of the ADSs by the ADS Depositary
may be delayed until the depositary bank or the custodian receives confirmation that all required approvals have been given and
that the Conversion Shares have been duly transferred to the custodian and that all applicable depositary fees and payments have
been paid to the ADS Depositary.

 

Article
5

Satisfaction and Discharge

 

Section 5.01.Satisfaction and Discharge
of Contingent Convertible Capital Securities Indenture. This Contingent Convertible Capital Securities Indenture shall upon
Company Request cease to be of further effect with respect to the Contingent Convertible Capital Securities of any series (except
as to any surviving rights of registration of transfer of the Contingent Convertible Capital Securities herein expressly provided
for), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge
of the Contingent Convertible Capital Securities Indenture with respect to the Contingent Convertible Capital Securities of any
series when:

 

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

 

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(b)the
Company has paid or caused to be paid all other sums payable hereunder (including Accrued Distributions, if any) by the Company
with respect to the Contingent Convertible Capital Securities of such series; and

 

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

 

In addition, upon the exercise of a Spanish Bail-in Power with
respect to a series of Contingent Convertible Capital Securities which results in the cancellation, or the conversion into other
securities, of all the Liquidation Preference of, and Distributions on such Contingent Convertible Capital Securities or such Contingent
Convertible Capital Securities otherwise ceasing to be outstanding, the Contingent Convertible Capital Securities Indenture shall
be satisfied and discharged as to such series.

 

Notwithstanding any satisfaction
and discharge of the Contingent Convertible Capital Securities Indenture, the obligations of the Company to the Trustee under ‎Section
7.08 of this Contingent Convertible Capital Securities Indenture, the obligations of the Trustee to any Authenticating Agent under
‎Section 7.15 of this
Contingent Convertible Capital Securities Indenture and the obligations of the Trustee under ‎Section
5.02 of this Contingent Convertible Capital Securities Indenture and the last paragraph of ‎Section
11.03 of the Contingent Convertible Capital Securities Indenture shall survive such satisfaction and discharge.

 

Section 5.02.Application
of Trust Money. Subject to the provisions of the last paragraph of ‎Section
11.03, all cash deposited with the Trustee pursuant to ‎Section
5.01 shall be held in trust and such cash shall be applied by it, in accordance with the provisions of the Contingent Convertible
Capital Securities of such series and this Contingent Convertible Capital Securities Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the Liquidation Preference and accrued but unpaid Distributions, if any, for the payment of which such cash has been
deposited with the Trustee.

 

Section 5.03.Repayment to Company.
The Trustee, the Calculation Agent and any Paying Agent promptly shall pay to the Company upon Company Request any excess money
held by them at any time with respect to any series of Contingent Convertible Capital Securities.

 

Section 5.04.Reinstatement. If the Trustee or any Paying Agent is unable to apply any money or U.S. Government Obligations in accordance
with this ‎Article 5 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the obligations of the Company under this Contingent
Convertible Capital Securities Indenture, the Contingent Convertible Capital Securities shall be revived and reinstated as though
no deposit had occurred pursuant to this ‎Article 5 until such time as the Trustee or such Paying Agent is permitted
to apply all such money or U.S. Government Obligations in accordance with this ‎Article 5; provided, however, that,
if the Company has made any payment of Liquidation Preference of or Distributions on any Contingent Convertible Capital Securities
because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Contingent
Convertible Capital Securities to receive such payment from the money or U.S. Government Obligations held by the Trustee or such
Paying Agent.

 

 

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Article
6

Remedies

 

Section 6.01.Enforcement Events.

 

 (a) Each of the
following events is an “Enforcement Event” with respect to any series of Contingent Convertible Capital Securities:

 

(i)non-payment
of Redemption Price on such series when due as set forth in ‎Section 12.04;

 

(ii)
the breach of any term, obligation or condition binding on the Company under the Contingent Convertible Capital Securities of
such series (other than any of the Company’s payment obligations under or arising from the Contingent Convertible Capital
Securities of such series, including payment of any Liquidation Preference or Distributions, including any damages awarded for
breach of any obligations) (a “Performance Obligation”); or

 

(iii)the
occurrence of any voluntary or involuntary liquidation of the Company (a “Liquidation Event”) prior to the
occurrence of a Trigger Event.

 

(b)  Neither
the exercise of the Spanish Bail-in Power nor the exercise of any other resolution tool by the relevant resolution authority or
any action in compliance therewith shall constitute an Enforcement Event.

 

 Section
6.02.Liquidation Distribution. (a) Subject as provided in ‎Section
6.02‎(b) below, in the event of any Liquidation
Event, Holders of the Contingent Convertible Capital Securities of any series (unless previously converted into Common Shares
pursuant to ‎Section 4.01) shall be entitled
to receive out of the assets of the Company available for distribution to Holders of such series, the Liquidation Distribution.
Such entitlement will arise before any distribution of assets is made to Holders of Common Shares or any other instrument of the
Company ranking junior to the Contingent Convertible Capital Securities of such series.

 

(b)If,
before the occurrence of a Liquidation Event, the Trigger Event occurs but the relevant conversion of the Contingent Convertible
Capital Securities of such series into Common Shares pursuant to ‎Section
4.01 is still to take place, Holders of the Contingent convertible Capital Securities of such series will be entitled to receive
out of the relevant assets of the Company a monetary amount equal to that which holders of such Contingent Convertible Capital
Securities of such series would have received on any distribution of the assets of the Company if such conversion had taken place
immediately prior to such liquidation.

 

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(c)After
payment of the relevant entitlement in respect of a Contingent Convertible Capital Security as described in this ‎Section
6.02, such Contingent Convertible Capital Security will confer no further right or claim to any of the remaining assets of the
Company.

 

Section 6.03.Limitation of Remedies
Upon an Enforcement Event.

 

The sole remedies of the holders of the
Contingent Convertible Capital Securities of a series and the Trustee under the Contingent Convertible Capital Securities of such
series upon the occurrence of an Enforcement Event shall be:

 

(a)to
seek enforcement of the Company’s obligation to pay the Redemption Price of the securities of such series if not paid within
14 days of the date fixed for redemption (provided that the applicable conditions described under ‎Section
12.04 shall have been satisfied);

 

(b)to
seek enforcement of a Performance Obligation; and

 

(c)to
enforce the entitlement set forth in ‎Section
6.02. 

 

The foregoing shall not prevent the holders
of the Contingent Convertible Capital Securities of such series or the trustee from instituting proceedings for the bankruptcy
of Banco Santander.

 

Section 6.04.No Other Remedies and
Other Terms.

 

(a)Other
than the limited remedies specified in this ‎‎Article
6, and subject to paragraph ‎(c) below,
no remedy against the Company shall be available to the Trustee (acting on behalf of the Holders) or to the Holders of the
Contingent Convertible Capital Securities of any series, whether for the recovery of amounts owing in respect of such
Contingent Convertible Capital Securities Indenture, or in respect of any breach by the Company of any of the Company’s
obligations under or in respect of the terms of such Contingent Convertible Capital Securities in relation thereto; provided,
however, that the Company’s obligations to the Trustee under, and the Trustee’s lien provided for in ‎Section
7.08 of the Contingent Convertible Securities Indenture and the Trustee’s rights to have money collected applied first
to pay amounts due to it under such Section pursuant to ‎Section
6.08 of the Contingent Convertible Securities Indenture shall not be limited or impaired by this ‎Article
6 or otherwise and expressly survive any Enforcement Event and are not subject to the subordination provisions of
Section 13.01.

 

(b)Notwithstanding
the limitations on remedies specified in this ‎‎Article
6, (i) the Trustee shall have such powers as are required to be authorized to it under the Trust Indenture Act in respect of the
rights of the Holders under the provisions of the Contingent Convertible Capital Securities Indenture, and (ii) nothing shall impair
the right of a Holder of the Contingent Convertible Capital Securities under the Trust Indenture Act, absent such Holder’s
consent, to sue for any payment due but unpaid with respect to the Contingent Convertible Capital Securities as provided for in
‎Section 6.10; provided that, in the case
of (i) and (ii) above, any payments in respect of, or arising 

 

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from, the Contingent
Convertible Capital Securities, including any payments or amounts resulting or arising from the enforcement of any rights under
the Trust Indenture Act in respect of the Contingent Convertible Capital Securities, shall be subject to the subordination provisions
set forth in ‎‎Section 13.01.

 

(c)In
furtherance of Section 7.01‎ of the Contingent Convertible Capital Securities Indenture:

 

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

 

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

 

Section 6.05.Agreement with Respect
to Limitation of Remedies for Breach of a Performance Obligation. By its acquisition of the Contingent Convertible Capital
Securities of any series, each Holder and beneficial owner of the Contingent Convertible Capital Securities of such series acknowledges
and agrees that such Holder and beneficial owner will not seek, and will not direct the Trustee to seek, a claim for damages against
the Company in respect of a breach by the Company of a Performance Obligation and that the sole and exclusive remedy that such
Holder and the Trustee may seek under the Contingent Convertible Capital Securities of such series and the Contingent Convertible
Capital Securities Indenture for a breach by the Company of a Performance Obligation is specific performance.

 

Section 6.06.Trustee May File Proofs
of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition, winding-up or other judicial proceeding relative to the Company or any other obligor upon the Contingent Convertible
Capital Securities of any series or to the property of the Company or such other obligor or their creditors (other than under or
in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency), the Trustee (irrespective
of whether the Liquidation Preference of the Contingent Convertible Capital Securities of such series shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue Liquidation Preference or Distributions) shall be entitled and empowered, by intervention in such proceeding
or otherwise, to take any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders and the
Trustee allowed in any such proceeding; provided that the Company shall not, as a result of the bringing of such proceedings, be
obliged to pay any sum representing or measured by reference to Liquidation Preference or Distributions on the Contingent Convertible
Capital Securities sooner than the same would otherwise have been payable by it. In particular, the Trustee shall be authorized
to collect and receive any moneys and other property payable or

 

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deliverable
on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each Holder of a Contingent Convertible Capital Security
to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to
such Holders or holders, to first pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due to the Trustee under ‎Section
7.08.

 

Subject to
‎Article 9 and ‎Section
10.02, nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf
of any Holder of any Contingent Convertible Capital Security any plan of reorganization, arrangement, adjustment, or composition
affecting any Contingent Convertible Capital Securities or the rights of any Holder of any Contingent Convertible Capital Security
or to authorize the Trustee to vote in respect of the claim of any such Holder in any such proceeding.

 

The
provisions of this ‎Section
6.06 are subject to the provisions of ‎Section
13.01.

 

Section 6.07.  Trustee May Enforce Claims Without Possession of Contingent Convertible Capital Securities. All rights of action
and claims under this Contingent Convertible Capital Securities Indenture or the Contingent Convertible Capital Securities, if
any, may be prosecuted and enforced by the Trustee without the possession of any of the Contingent Convertible Capital Securities
or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought
in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel (subject, with regard to the Company,
to the provisions of Article 13) be for the ratable benefit of the Holders of the Contingent Convertible Capital Securities in
respect of which such judgment has been recovered.

 

Section
6.08.  Application of Money Collected. Any
money collected by the Trustee pursuant to this Article or, after an Enforcement Event, any money or other property
distributable in respect of the Company’s obligations under this Contingent Convertible Capital Securities Indenture,
in respect of any series of Contingent Convertible Capital Securities shall, subject to the provisions of Section 13.02 in
relation to waiver of   set-off and Section 13.01 in relation to the subordination of the Contingent Convertible Capital
Securities, be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of
such money on account of Liquidation Preference or Distributions upon presentation of such Contingent Convertible Capital
Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully
paid:

 

FIRST: To
the payment of all amounts applicable to such series of Contingent Convertible Capital Securities in respect of which or for the
benefit of which such money has been collected and due and owing to the Trustee (including any predecessor Trustee) under ‎Section
7.08;

 

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SECOND: To the payment of the amounts then
due and unpaid for Liquidation Preference of and Distributions on such series of Contingent Convertible Capital Securities in respect
of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according
to the amounts due and payable on such Contingent Convertible Capital Securities for Liquidation Preference and Distributions,
if any, respectively; and

 

THIRD: To the payment of the balance, if
any, to the Company.

 

Section 6.09.Limitation on Suits.
No Holder of any Contingent Convertible Capital Security of any series shall have any right to institute any proceeding, judicial
or otherwise, with respect to this Contingent Convertible Capital Securities Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless

 

(a)such
Holder has previously given written notice to the Trustee of a continuing Enforcement Event with respect to Contingent Convertible
Capital Securities of the same series specifying such Enforcement Event and stating that such notice is a “Notice of Enforcement
Event” hereunder;

 

(b)the
Holders of not less than 25% in aggregate Liquidation Preference of the Outstanding Contingent Convertible Capital Securities of
such series shall have made written request to the Trustee to institute proceedings in respect of such Enforcement Event in its
own name, as Trustee hereunder;

 

(c)such
Holder of a Contingent Convertible Capital Security has offered to the Trustee reasonable indemnity satisfactory to it (as determined
by the Trustee in its sole discretion) 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 has failed to institute any such proceeding;
and

 

(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 Liquidation Preference of the Outstanding Contingent Convertible Capital Securities of such series;

 

it being understood and intended that no one or more Holders
of Contingent Convertible Capital Securities of a particular series shall have any right in any manner whatever by virtue of, or
by availing of, any provision of this Contingent Convertible Capital Securities Indenture 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 Contingent Convertible Capital Securities Indenture, except in the manner herein provided and
for the equal and ratable benefit of all Holders of Contingent Convertible Capital Securities of such series.

 

Section 6.10.Unconditional Right
of Holders to Receive Liquidation Preference and Distributions. Notwithstanding any other provision in this Contingent Convertible
Capital Securities Indenture, and subject to Article 13 in relation to the subordination of

 

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the Contingent Convertible Capital Securities
of any series, the Holder of any Contingent Convertible Capital Security shall have the right, which is absolute and unconditional,
to receive payment of the Liquidation Preference of and any Distribution on such Contingent Convertible Capital Security when due
and payable in accordance with the provisions of the Contingent Convertible Capital Securities Indenture (including Article 3 and
Article 14 hereof) and as expressed in such Contingent Convertible Capital Security (or, in the case of redemption, on the Redemption
Date, as the case may be) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

 

Section 6.11.Restoration of Rights
and Remedies. If the Trustee or any Holder of any Contingent Convertible Capital Security has instituted any proceeding to
enforce any right or remedy under this Contingent Convertible Capital Securities Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject
to any determination in such proceeding, the Company, the Trustee and the Holders of Contingent Convertible Capital Securities
shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders of Contingent Convertible Capital Securities shall continue as though no such proceeding had been instituted.

 

Section 6.12.Rights
and Remedies Cumulative. Subject to the limitations on remedies provided for in this ‎Article
6, except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Contingent Convertible
Capital Securities in the last paragraph of ‎Section
3.06, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders of Contingent Convertible Capital Securities
is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion
or employment of any other appropriate right or remedy.

 

Section 6.13.Delay or Omission Not
Waiver. No delay or omission of the Trustee or of any Holder of any Contingent Convertible Capital Security to exercise any
right or remedy accruing upon any Enforcement Event shall impair any such right or remedy or constitute a waiver of any such Enforcement
Event or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders of Contingent
Convertible Capital Securities may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by
the Holders of Contingent Convertible Capital Securities.

 

Section 6.14.Control by Holders.
The Holders of a majority in aggregate Liquidation Preference of the Outstanding Contingent Convertible Capital Securities of any
series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power

 

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conferred on the Trustee with respect to the
Contingent Convertible Capital Securities of such series, provided that

 

(a)
such direction shall not be in conflict with any rule of law or with this Contingent Convertible Capital Securities Indenture or
with the Contingent Convertible Capital Securities of any series;

 

(b)the
Trustee shall not determine that the action so directed would be unjustly prejudicial to the Holders of any Contingent Convertible
Capital Securities of any series not taking part in such direction with respect to which the Trustee is acting as the Trustee;
and

 

(c)the
Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.

 

Section 6.15.Undertaking for Costs.
All parties to this Contingent Convertible Capital Securities Indenture agree, and each Holder of any Contingent Convertible Capital
Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or remedy under this Contingent Convertible Capital Securities Indenture, or in any suit against the
Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant to such suit of an undertaking
to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Holder or group of Holders holding in the aggregate more than 10% in Liquidation Preference of the Outstanding
Contingent Convertible Capital Securities of any series, or to any suit instituted by any Holder for the enforcement of the payment
of the Liquidation Preference of or Distributions on any Contingent Convertible Capital Security on or after the dates upon which
such Distributions become due and payable pursuant to the terms hereof or the terms expressed in such Contingent Convertible Capital
Security (or, in the case of redemption on or after the Redemption Date).

 

Section 6.16.Waiver
of Past Enforcement Events. (a) Holders of not less than a majority in aggregate Liquidation Preference of the Outstanding
Contingent Convertible Capital Securities may on behalf of the Holders of all of the Contingent Convertible Capital Securities
waive any past Enforcement Event that results from a breach by the Company of a Performance Obligation. Holders of a majority of
the aggregate Liquidation Preference of the Outstanding Contingent Convertible Capital Securities shall not be entitled to waive
(i) any past Enforcement Event that results from a Liquidation Event and (ii) any Enforcement Event in respect of a covenant or
provision hereof which under ‎Article 10 cannot
be modified or amended without the consent of the Holder of each Outstanding Contingent Convertible Capital Security of such series
affected.

 

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

 

Article
7

The Trustee

 

Section 7.01.Certain Duties and Responsibilities.

 

(a)Except
during the continuance of an Enforcement Event,

 

(i)the Trustee undertakes
to perform such duties and only such duties as are specifically set forth in this Contingent Convertible Capital Securities Indenture,
and no implied covenants or obligations shall be read into this Contingent Convertible Capital Securities Indenture against the
Trustee; and

 

(ii) in the absence of bad
faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Contingent Convertible
Capital Securities Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they
conform to the requirements of this Contingent Convertible Capital Securities Indenture (but need not confirm or investigate the
accuracy of mathematical calculations or other facts, statements, opinions or conclusions stated therein).

 

(b)In
case an Enforcement Event has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it
by this Contingent Convertible Capital Securities Indenture, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.

 

(c)No
provision of this Contingent Convertible Capital Securities Indenture shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that

 

(i)this Section 7.01(c) shall
not be construed to limit the effect of subsections (a) or (d) of this Section;

 

(ii)the Trustee shall not
be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was
negligent in ascertaining the pertinent facts; and

 

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(iii)the Trustee shall not
be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction
of the Holders of a majority in Liquidation Preference of the Outstanding Contingent Convertible Capital Securities of any series,
determined as provided herein, relating to the time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee, under this Contingent Convertible Capital Securities
Indenture with respect to the Contingent Convertible Capital Securities of such series;

  

(d)No
provision of this Contingent Convertible Capital Securities Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it; and

 

(e)Whether
or not therein expressly so provided, every provision of this Contingent Convertible Capital Securities Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section.

 

Section 7.02.Spanish
Tax Procedures and Obligations of the Trustee. In connection with each payment made on any Payment Date (as defined in Appendix
1 attached hereto) in respect of the issued Contingent Convertible Capital Securities hereunder, the Trustee or Paying Agent shall
comply with the tax procedures set forth in Appendix 1 hereto. The Trustee or Paying Agent shall have no duty or responsibility
to comply with other Spanish tax obligations arising out of this Contingent Convertible Capital Securities Indenture. The Company
shall be responsible for the payment of any and all amounts due under the Contingent Convertible Capital Securities. Therefore,
the Trustee or Paying Agent shall not be liable for any amounts owed to any person due to its failure to properly comply with the
tax procedures referred to in this ‎Section
7.02 and Appendix 1 hereto, except such as may result from the negligence, willful misconduct or fraud of the Trustee or Paying
Agent or any of its agents or employees. The Trustee or Paying Agent may request and rely conclusively upon any instructions from
the Company in respect of any action necessary or required to be taken by the Trustee or Paying Agent pursuant to this ‎Section
7.02 and Appendix 1 hereto; provided, however, in no event shall the Trustee or Paying Agent be required to expend or risk its
own funds in the performance of any of its duties pursuant to this ‎Section
7.02 and Appendix 1 hereto, or be obligated to take any legal or other action which might in its judgment involve or cause it to
incur any expense or liability unless it shall have been furnished with acceptable indemnification and security. 

 

Section 7.03.Notice
of Enforcement Events. Within 90 days after the occurrence of any Enforcement Event hereunder with respect to Contingent Convertible
Capital Securities of any series of which a Responsible Officer of the Trustee has received written notice the Trustee shall transmit
in the manner and to the extent provided in ‎Section 1.06 to Holders of Contingent Convertible Capital Securities of
such series notice of such Enforcement Event hereunder of which the Trustee has received written notice, unless such Enforcement
Event shall have been cured or waived; provided, however, that, the Trustee shall be protected in withholding such notice if it
determines in good faith that the withholding of such notice is in the interest of the Holders of Contingent Convertible Capital
Securities of such series.

 

 

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Section 7.04.Certain
Rights of Trustee. Subject to the provisions of ‎Section
7.01:

 

(a)the
Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any
resolution, Officer’s Certificate, or any other certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, coupon or other evidence of indebtedness or other paper or document
(whether in its original or facsimile form) believed by it to be genuine and to have been signed or presented by the proper
party or parties;

 

(b)any
request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order and
any resolution of the Board of Directors of the Company may be sufficiently evidenced by a Board Resolution;

 

(c)whenever
in the administration of this Contingent Convertible Capital Securities Indenture the Trustee shall deem it desirable that a matter
be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s Certificate and/or an Opinion
of Counsel;

 

(d)the
Trustee may consult with counsel of its own selection and the advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon;

 

(e)the
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Contingent Convertible Capital
Securities Indenture at the request or direction of any of the Holders pursuant to this Contingent Convertible Capital Securities
Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to it against the
costs, expenses and liabilities which might be incurred by it in compliance with such request or direction;

 

(f)the
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, coupon or other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled
to examine the books, records and premises of the Company, personally or by agent or attorney at the sole reasonable cost and expense
of the Company and shall incur no

 

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liability or additional liability of any kind
by reason of such inquiry or investigation; provided that the Trustee shall not be entitled to such information which the Company
is prevented from disclosing as a matter of law or contract;

 

(g)the
Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents
or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder;

 

(h)the
Trustee shall not be liable for any action taken, suffered or omitted to be taken by it in good faith and believed by it to be
authorized or within the discretion or rights or powers conferred upon it by this Contingent Convertible Capital Securities Indenture,
unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

 

(i)anything
in this Contingent Convertible Capital Securities Indenture notwithstanding, in no event shall the Trustee be liable for special,
indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to loss or profit), even if
the Trustee has been advised as to the likelihood of such loss or damage and regardless of whether the claim for loss or damage
is made in negligence or otherwise;

 

(j)the
Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed
by it to be authorized or within the discretion or rights or powers conferred upon it by this Contingent Convertible Capital Securities
Indenture, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;

 

(k)the
Trustee shall not be deemed to have notice of any Enforcement Event unless a Responsible Officer of the Trustee has received, at
the Corporate Trust Office of the Trustee, written notice of such an Enforcement Event and such notice references the Contingent
Convertible Capital Securities and/or this Contingent Convertible Capital Securities Indenture;

 

(l)the
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified,
are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other
Person employed to act hereunder;

 

(m)the
Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized
at such time to take specified actions pursuant to this Contingent Convertible Capital Securities Indenture, which certificate
may be signed by any person authorized to sign an Officer’s Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded; and

 

(n)the
Trustee shall not be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond
its control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, strikes,

 

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work stoppages, civil or military disturbances,
nuclear or natural catastrophes, fire, riot, embargo, loss or malfunctions of utilities, communications or computer (software and
hardware) services, government action, including any laws, ordinances, regulations, governmental action or the like which delay,
restrict or prohibit the providing of the services contemplated by this Contingent Convertible Capital Securities Indenture.

 

Section 7.05.Not Responsible for
Recitals or Issuance of Contingent Convertible Capital Securities. The recitals contained herein and in the Contingent Convertible
Capital Securities, except the Trustee’s certificates of authentication, shall be taken as the statements of the Company,
and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations
as to the validity or sufficiency of this Contingent Convertible Capital Securities Indenture or of the Contingent Convertible
Capital Securities, except that the Trustee represents and warrants that it has duly authorized, executed and delivered this Contingent
Convertible Capital Securities Indenture. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of Contingent Convertible Capital Securities or the proceeds thereof. The Trustee shall not be responsible
to make any calculation with respect to any matter under this Contingent Convertible Capital Securities Indenture other than as
specifically provided for herein. The Trustee shall have no duty to monitor or investigate the Company’s compliance with
or the breach of, or cause to be performed or observed, any representation, warranty, or covenant, or agreement of any Person,
other than the Trustee, made in this Contingent Convertible Capital Securities Indenture

 

No provision of this Contingent Convertible
Capital Securities Indenture shall be deemed to impose any duty or obligation on the Trustee to perform any act or acts, receive
or obtain any interest in property or exercise any interest in property, or exercise any right, power, duty or obligation conferred
or imposed on it in any jurisdiction in which it shall be illegal, taxation or other consequences that, in the sole determination
of the Trustee, are adverse to the Trustee, or in which the Trustee shall be unqualified or incompetent in accordance with applicable
law, to perform any such act or acts, to receive or obtain any such interest in property or to exercise any such right, power,
duty or obligation.

 

Section 7.06.May
Hold Contingent Convertible Capital Securities. The Trustee, any Authenticating Agent, any Paying Agent, any Contingent Convertible
Capital Security Registrar and any Calculation Agent or any other agent of the Company, in its individual or any other capacity,
may become the owner or pledgee of Contingent Convertible Capital Securities and, subject to ‎Section 7.11 and ‎Section
7.15, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying
Agent, Contingent Convertible Capital Security Registrar, Calculation Agent or such other agent.

 

Section 7.07.Money Held in Trust.
Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The
Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company.

 

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Section 7.08.Compensation and Reimbursement.
The Company agrees

 

(a)to
pay to the Trustee from time to time compensation for all services rendered by it hereunder as agreed upon in writing by the Company
from time to time (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of
an express trust);

 

(b)except
as otherwise expressly provided herein, to reimburse the Trustee for all reasonable expenses, disbursements and advances incurred
or made by the Trustee in accordance with any provision of this Contingent Convertible Capital Securities Indenture (including
the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement
or advance as shall be determined by a court of competent jurisdiction to have been caused by its own negligence or bad faith;
and

 

(c)to
indemnify the Trustee (which for purposes of this subsection (c) shall be deemed to include its directors, officers, employees
and agents) or any predecessor Trustee for, and to hold it harmless against, any and all loss, liability, claim, damage or expense
(including legal fees and expenses) and taxes (other than taxes based upon, measured by or determined by the income of the Trustee)
incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of
the trust or trusts hereunder including the costs and expenses of defending itself against any claim (whether asserted by the Company,
or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder,
or in connection with enforcing the provisions of this Section, but excluding any tax liabilities of the Trustee in respect of
its income.

 

In addition to, but without prejudice to
its other rights under this Contingent Convertible Capital Securities Indenture, when the Trustee incurs expenses or renders services
in connection with an Enforcement Event specified in ‎Section
6.01, the fees, costs and expenses (including the charges and expenses of its counsel) and the compensation for the services are
intended to constitute expenses of administration under any applicable federal or state bankruptcy, insolvency or other similar
law.

 

The Trustee shall notify the Company in
writing of the commencement of any action or claim in respect of which indemnification may be sought promptly after a Responsible
Officer of the Trustee becomes aware of such commencement (provided that the failure to make such notification shall not affect
the Trustee’s rights hereunder) and the Company shall be entitled to participate in, and to the extent it shall wish, to
assume the defense thereof, including the employment of counsel reasonably satisfactory to the Trustee. If the Company and the
Trustee are being represented by the same counsel and the Company has assumed the defense of the claim, the Trustee shall not be
authorized to settle a claim without the written consent of the Company, which consent shall not be unreasonably withheld.

 

As security for the performance of the obligations
of the Company under this Section, the Trustee shall have a senior lien to which the Contingent Convertible Capital

 

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Securities are hereby made subordinate, upon
all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of Liquidation Preference
or Distributions on the Contingent Convertible Capital Securities.

 

“Trustee” for purposes of this
Section shall include any predecessor Trustee; provided, however, that the negligence, willful misconduct or bad faith of any Trustee
hereunder shall not affect the rights of any other Trustee hereunder.

 

The Trustee's
rights to payment of its fees, reimbursement and indemnity under, and its lien provided for in, this ‎Section
7.08 shall survive the payment in full of the Contingent Convertible Capital Securities, the satisfaction and discharge of this
Contingent Convertible Capital Securities Indenture, the resignation or removal of the Trustee, the termination for any reason
of this Contingent Convertible Capital Securities Indenture and the exercise of the Spanish Bail-in Power and the other relevant
resolution tools by the relevant resolution authority.

 

Section 7.09.Disqualification; Conflicting
Interests. If the Trustee has or shall acquire a conflicting interest within the meaning of Section 310(b) of the Trust Indenture
Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the
provisions of, Section 310(b) of the Trust Indenture Act and this Contingent Convertible Capital Securities Indenture.

 

Section 7.10.Corporate
Trustee Required; Eligibility. There shall at all times be a Trustee hereunder with respect to each series which shall be a
Person organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia,
authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000, subject
to supervision or examination by Federal or State or District of Columbia authority and having a corporate trust office or agency
in the Borough of Manhattan, The City of New York, New York. If such Person publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital
and surplus of such Person shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in this ‎Article
7.

 

Section 7.11.Resignation and Removal;
Appointment of Successor.

 

(a)No
resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective
until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of ‎Section
7.12.

 

(b)The
Trustee may resign at any time with respect to the Contingent Convertible Capital Securities of one or more series by giving written
notice thereof to the Company. If the instrument of acceptance by a successor Trustee required by ‎Section

 

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7.12 shall not have been delivered to the
Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Contingent Convertible Capital Securities of such series.

 

(c)The
Trustee may be removed at any time with respect to the Contingent Convertible Capital Securities of any series by Act of the Holders
of a majority in Liquidation Preference of the Outstanding Contingent Convertible Capital Securities of such series delivered to
the Trustee and to the Company. If the instrument of acceptance by a successor Trustee required by ‎Section
7.12 shall not have been delivered to the Trustee within 30 days after the giving of such notice of removal, the Trustee may petition
at the expense of the Company any court of competent jurisdiction for the appointment of a successor Trustee with respect to the
Contingent Convertible Capital Securities of such series.

 

(d)If
at any time:

 

(i)the
Trustee shall fail to comply with ‎Section
7.09 after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Contingent Convertible
Capital Security of the series as to which the Trustee has a conflicting interest for at least six months, or

 

(ii)the
Trustee shall cease to be eligible under ‎Section
7.10 and shall fail to resign after written request therefor by the Company or by any Holder who has been a bona fide Holder of
a Contingent Convertible Capital Security for at least six months, or

 

(iii)the Trustee shall become
incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed
or any public officer shall take charge, or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, or

 

(iv)the
Trustee shall fail to perform its obligations to the Company under the Contingent Convertible Capital Securities Indenture in
any material respect, 

 

then, in any such case, (i) the Company by a Board Resolution may remove the Trustee with respect
to any or all series of Contingent Convertible Capital Securities or (ii) subject to ‎Section
6.15 (and except in the case of subparagraph (d)(iv) above), any Holder who has been a bona fide Holder of a Contingent Convertible
Capital Security for at least six months (and, in the case of ‎(i)
above, who is a Holder of a Contingent Convertible Capital Security of the series as to which the Trustee has a conflicting interest)
may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the
Trustee with respect to all Contingent Convertible Capital Securities and the appointment of a successor Trustee or Trustees.

 

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(e)If
the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any
cause, with respect to the Contingent Convertible Capital Securities of one or more series, the Company, by a Board Resolution,
shall promptly appoint a successor Trustee or Trustees with respect to the Contingent Convertible Capital Securities of such series
(it being understood that any successor Trustee may be appointed with respect to the Contingent Convertible Capital Securities
of one or more or all of such series and at any time there shall be only one Trustee with respect to the Contingent Convertible
Capital Securities of any particular series), and shall comply with the applicable requirements of ‎Section
7.12. If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Contingent Convertible Capital Securities of any series shall be appointed by Act of the Holders of a majority
in Liquidation Preference of the Outstanding Contingent Convertible Capital Securities of such series delivered to the Company
and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of ‎Section
7.12, become the successor Trustee with respect to the Contingent Convertible Capital Securities of such series and to that extent
supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Contingent Convertible Capital
Securities of any series shall have been so appointed by the Company or the Holders of Contingent Convertible Capital Securities
of such series and accepted appointment in the manner hereinafter required by ‎Section
7.12, any Holder who has been a bona fide Holder of a Contingent Convertible Capital Security of such series for at least six months
may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of
a successor Trustee with respect to the Contingent Convertible Capital Securities of such series.

 

(f)The
Company shall give notice to Holders of each resignation and each removal of the Trustee with respect to the Contingent Convertible
Capital Securities of any series and each appointment of a successor Trustee with respect to the Contingent Convertible Capital
Securities of any series to the Holders in the manner and to the extent provided in ‎Section
1.06. Each notice shall include the name of the successor Trustee with respect to the Contingent Convertible Capital Securities
of such series and the address of its Corporate Trust Office.

 

Section 7.12.Acceptance of Appointment
by Successor.

 

(a)In
case of the appointment hereunder of a successor Trustee with respect to all Contingent Convertible Capital Securities, every such
successor Trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the
retiring Trustee; but, on request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges
and subject to its lien provided for in ‎Section
7.08, execute and deliver an instrument transferring to such successor Trustee, all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and 

 

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deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

 

(b)In
case of the appointment hereunder of a successor Trustee with respect to the Contingent Convertible Capital Securities of one or
more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Contingent Convertible
Capital Securities of such series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall
accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm
to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the
Contingent Convertible Capital Securities of such series to which the appointment of such successor Trustee relates, (2) if the
retiring Trustee is not retiring with respect to all Contingent Convertible Capital Securities, shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Contingent Convertible Capital Securities of such series as to which the retiring Trustee is not retiring shall continue
to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Contingent Convertible Capital
Securities Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than
one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees
of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust
or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture
the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Contingent Convertible Capital Securities of such series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer
and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Contingent
Convertible Capital Securities of such series to which the appointment of such successor Trustee relates, subject to the lien provided
for in ‎Section 7.08.

 

(c)Upon
request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph ‎(a)
or ‎(b) of this Section, as the case may be.

 

(d)No
successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified
and eligible under this ‎Article 7.

 

Section 7.13.Merger, Conversion,
Consolidation or Succession to Business. Any Person into which the Trustee may be merged or converted or with which it may
be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or
any Person succeeding to all or substantially all the corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder,

 

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provided such Person shall be otherwise qualified
and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties
hereto. In case any Contingent Convertible Capital Securities shall have been authenticated, but not delivered, by the Trustee
then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Contingent Convertible Capital Securities so authenticated with the same effect as if such successor Trustee had
itself authenticated such Contingent Convertible Capital Securities.

 

Section 7.14.Preferential Collection
of Claims. If and when the Trustee shall be or become a creditor of the Company (or any other obligor upon the Contingent Convertible
Capital Securities of a series), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection
of claims against the Company (or any such other obligor).

 

Section 7.15.Appointment of Authenticating
Agent. The Trustee may at any time appoint an Authenticating Agent or Agents with respect to one or more series of Contingent
Convertible Capital Securities which shall be authorized to act on behalf of the Trustee to authenticate Contingent Convertible
Capital Securities of such series upon original issue, or issued upon exchange, registration of transfer or partial redemption
thereof or in lieu of destroyed, lost or stolen Contingent Convertible Capital Securities, and Contingent Convertible Capital Securities
so authenticated shall be entitled to the benefits of this Contingent Convertible Capital Securities Indenture and shall be valid
and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference is made in this Contingent Convertible
Capital Securities Indenture to the authentication and delivery of Contingent Convertible Capital Securities by the Trustee or
the Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating
Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be a corporation or national banking
association organized and doing business under the laws of the United States, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject
to supervision or examination by Federal or State or District of Columbia authority. If such Authenticating Agent publishes reports
of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital
and surplus as set forth in its most recent report of condition so published. If at any time an Authenticating Agent shall cease
to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner
and with the effect specified in this Section.

 

Any Person into which an Authenticating
Agent may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation
to which such Authenticating Agent shall be a party, or any Person succeeding to the corporate agency or corporate trust business
of an Authenticating Agent,

 

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shall continue to be an Authenticating Agent,
provided such Person shall be otherwise eligible under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.

 

An Authenticating
Agent may resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable
to the Company and shall give notice to the Holders of Contingent Convertible Capital Securities in the manner and to the extent
provided in ‎Section 1.06.
Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers
and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating
Agent shall be appointed unless eligible under the provisions of this Section.

 

The Company
agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this ‎Section
7.15.

 

If an appointment with respect to one or
more series is made pursuant to this Section, the Contingent Convertible Capital Securities of such series may have endorsed thereon,
in lieu of the Trustee’s certificate of authentication, an alternate certificate of authentication in substantively the following
form:

 

This is one of the Contingent Convertible
Capital Securities referred to in the within-mentioned Contingent Convertible Capital Securities Indenture.

 

	 	THE BANK OF NEW YORK MELLON, as Trustee
	 	 
	 	 
	 	By:	 
	 	 	as Authenticating Agent
	 	 	 

	 	 
	 	By:	 
	 	 	Authorized Signatory

 

Section 7.16.Appointment
of Additional Trustees. The Company may appoint a Trustee for a particular series of Contingent Convertible Capital Securities
other than the Trustee named in the first paragraph of this Contingent Convertible Capital Securities Indenture by executing and
delivering an indenture supplemental hereto where such Trustee accepts such appointment as contemplated by ‎Section
10.01(l) (it being understood that at any time there shall be only one Trustee with respect to the Contingent Convertible Capital
Securities of any particular series); provided that, at the time of such 

 

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acceptance, such Trustee shall be qualified
and eligible under this Article 6. Upon such acceptance, such Trustee shall be vested with all the rights, powers, trusts and duties
of a Trustee under this Contingent Convertible Capital Securities Indenture with respect to the Contingent Convertible Capital
Securities of such series.

 

Section 7.17.Tax Withholding.
Any amounts to be paid by the Company on the Contingent Convertible Capital Securities shall be paid net of any deduction or withholding
imposed or required pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”),
any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of
the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered
into in connection with the implementation of such Sections of the Code (or any law implementing such an intergovernmental agreement)
(a “FATCA Withholding Tax”), and the Company shall not be required to pay Additional Amounts on account of any
FATCA Withholding Tax.

 

Any Paying
Agent shall be entitled to make a deduction or withholding from any payment which it makes under the Contingent Convertible Capital
Securities and the Contingent Convertible Capital Securities Indenture for or on account of (i) any present or future taxes, duties
or charges if and to the extent so required by any applicable law and (ii) any FATCA Withholding Tax (together, “Applicable
Law”). In either case, the Paying Agent shall make any payment after a deduction or withholding has been made pursuant
to Applicable Law and shall report to the relevant authorities the amount so deducted or withheld. In all cases, the Paying Agent
shall have no obligation to gross up any payment made subject to any deduction or withholding pursuant to Applicable Law. In addition,
amounts deducted or withheld by the Paying Agent as described in this paragraph will be treated as paid to the Holder of the Contingent
Convertible Capital Securities, and the Company will not pay Additional Amounts in respect of such deduction or withholding, except
to the extent required under ‎Section 11.04.

 

Article
8

Holders Lists and Reports by Trustee and Company

 

Section 8.01.Company to Furnish Trustee
Names and Addresses of Holders. The Company, with respect to any series of Contingent Convertible Capital Securities, will
furnish or cause to be furnished to the Trustee

 

(a)not
more than 15 days after each Regular Record Date (or after each of the dates to be specified for such purpose for non- Distribution
bearing Contingent Convertible Capital Securities and Contingent Convertible Capital Securities on which Distribution Dates occur
less frequently than quarterly as contemplated by ‎Section
3.01), a list, in such form as the Trustee may reasonably require, of the names and addresses of the Holders of Contingent Convertible
Capital Securities as of such Regular Record Date or such specified date, and

 

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(b)at
such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a
list of similar form and content as of a date not more than 15 days prior to the time such list is furnished.

 

The Company
need not furnish or cause to be furnished to the Trustee pursuant to this ‎Section
8.01 the names and addresses of Holders of Contingent Convertible Capital Securities so long as the Trustee acts as Contingent
Convertible Capital Security Registrar with respect to such series of Contingent Convertible Capital Securities.

 

Section 8.02.Preservation of Information;
Communication to Holders.

 

(a)The
Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders (i) contained in
the most recent list furnished to the Trustee as provided in ‎Section
8.01 and (ii) received by the Trustee in its capacity as Paying Agent or Contingent Convertible Capital Security Registrar (if
so acting). The Trustee may dispose of any list furnished to it as provided in ‎Section
8.01 upon receipt of a new list so furnished.

 

(b)The
rights of the Holders of Contingent Convertible Capital Securities of any series to communicate with other Holders with respect
to their rights under this Contingent Convertible Capital Securities Indenture or under the Contingent Convertible Capital Securities,
and the corresponding rights and privileges of the Trustee, shall be as provided by the Trust Indenture Act.

 

(c)Every
Holder, by receiving and holding a Contingent Convertible Capital Security, agrees with the Company and the Trustee that neither
the Company nor the Trustee nor any agent of any of them shall be held accountable by reason of the disclosure of any such information
as to the names and addresses of the Holders in accordance with ‎Section
8.02(b) or otherwise made pursuant to the Trust Indenture Act.

 

Section 8.03.Reports by Trustee.

 

(a)On
or before May 15 in each year following the date hereof, so long as any Contingent Convertible Capital Securities are Outstanding
hereunder, the Trustee shall transmit to Holders as provided in the Trust Indenture Act a brief report dated as of a date required
by and in compliance with the Trust Indenture Act.

 

(b)A
copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each securities exchange
upon which the Trustee has been notified that the Contingent Convertible Capital Securities are listed, with the Commission and
with the Company. The Company will notify the Trustee when Contingent Convertible Capital Securities are listed on any securities
exchange.

 

 

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(c)The
Trustee may conclusively presume that the Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act or otherwise is complying with such reporting requirements unless and until a Responsible Officer of the Trustee receives at
the Corporate Trust Office of the Trustee a written notification from the Company stating otherwise. The Trustee shall have no
duty to examine any information, reports or other documents filed by the Company pursuant to Section 13 or 15(d) of the Exchange
Act, and need make no determination as to whether they comply with the requirements of this ‎‎Section
8.03, its sole duty in respect thereof being to place them in its files and make them available for inspection by any Holder upon
reasonable request during normal business hours.

 

Section 8.04.Reports by Company.

 

The Company shall:

 

(a)file
with the Trustee, within 15 days after the Company is required to file the same with the Commission, copies of the annual reports
and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Company may be required to file with the Commission pursuant to Section
13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents or reports pursuant
to either of such Sections, then it shall file with the Trustee and the Commission, in accordance with rules and regulations prescribed
from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required
pursuant to Section 13 of the Exchange Act in respect of a security listed and registered on a national securities exchange as
may be prescribed from time to time in such rules and regulations. Delivery of such reports, information and documents to the Trustee
is for informational purposes only and the Trustee’s receipt of such shall not constitute actual or constructive notice of
any information contained therein or determinable from information contained therein, including the Company’s compliance
with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate);

 

(b)file
with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such
additional information, documents and reports with respect to compliance by the Company with the conditions and covenants of this
Contingent Convertible Capital Securities Indenture as may be

 

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required from time to time by such rules and
regulations. Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s
receipt of such shall not constitute actual or constructive notice of any information contained therein or determinable from information
contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled
to rely exclusively on an Officer’s Certificate); and

 

(c)transmit
to Holders, in the manner and to the extent required by the Trust Indenture Act, within 30 days after the filing thereof with the
Trustee, such summaries of any information, documents and reports required to be filed by the Company pursuant to paragraphs ‎8.04(a)
and ‎8.04(b) of this Section as may be required
by rules and regulations prescribed from time to time by the Commission.

 

Article
9

Consolidation, Merger, Conveyance or Transfer

 

Section 9.01.Company May Consolidate,
Etc., Only on Certain Terms.

 

The Company may, without the
consent of Holders of any Contingent Convertible Capital Securities of any series Outstanding under this Contingent
Convertible Capital Securities Indenture, consolidate or amalgamate with or merge into any other corporation or convey or
transfer or lease its properties and assets substantially as an entirety to any Person, provided that:

 

(a)any successor corporation formed by any consolidation, amalgamation or merger, or any transferee or lessee
of the Company’s assets, (i) shall be a company organized and existing under the laws of any part of the European Union,
and (ii) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in the case of the
Company, in form satisfactory to the Trustee, the due and punctual payment of the Liquidation Preference and Distributions and
Additional Amounts, if any, on all the Contingent Convertible Capital Securities in accordance with the provisions of such Contingent
Convertible Capital Securities and this Contingent Convertible Capital Securities Indenture and the performance of every covenant
of this Capital Indenture on the part of the Company to be performed or observed;

  

(b)immediately
after giving effect to such consolidation, amalgamation, merger, conveyance or transfer, no Enforcement Event and no event which,
after notice or lapse of time or both, would become an Enforcement Event, shall have occurred and be continuing; and

 

(c)the
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation,
amalgamation, merger, conveyance or transfer and such supplemental indenture comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.

 

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Section 9.02.Successor Corporation
Substituted. In the event of any merger, consolidation, sale, conveyance permitted by Section 9.01 above, Additional Amounts
under the Contingent Convertible Capital Securities will thereafter be payable in respect of taxes imposed by the acquiring corporation’s,
or the resulting corporation’s, jurisdiction of incorporation or tax residence (subject to exceptions equivalent to those
that apply to the obligation to pay Additional Amounts pursuant to Section 11.04 in respect of taxes imposed by the laws of the
Kingdom of Spain) rather than taxes imposed by the Kingdom of Spain. Additional Amounts with respect to payments of Distributions
or Liquidation Preference due prior to the date of such merger, consolidation, sale, conveyance or lease will be payable only in
respect of taxes imposed by the Kingdom of Spain. The acquiring or resulting corporation, as the case may be, will also be entitled
to redeem the Contingent Convertible Capital Securities in the circumstances described in Section 12.08 with respect to any change
or amendment to, or change in the application or official interpretation of the laws or regulations of such jurisdiction, which
change or amendment must occur subsequent to the date of any merger, consolidation, sale or conveyance or lease permitted by Section
9.01 if the successor entity is not incorporated or tax resident in the Kingdom of Spain. In the event of assumption of the Company’s
obligations in connection with a merger, consolidation, sale or conveyance of substantially all of its assets, the Company shall
be released from all obligations and covenants under this Contingent Convertible Capital Securities Indenture or the Contingent
Convertible Capital Securities, as the case may be, and the successor corporation formed by such consolidation or amalgamation
or into which the Company is merged or to which such conveyance or transfer is made shall succeed to and be substituted for, and
may exercise every right and power of, the Company under this Contingent Convertible Capital Securities Indenture with the same
effect as if such successor corporation had been named as the Company.

 

Section 9.03.Assumption of Obligations.
Subject to the prior consent of the European Central Bank, if required, a holding company of the Company may assume the obligations
of the Company under the Contingent Convertible Capital Securities without the consent of the Holders of the Contingent Convertible
Capital Securities of such series, provided that:

 

(a)the
successor entity shall expressly assume such obligations by an amendment to the Contingent Convertible Capital Securities Indenture,
executed by the Company and such successor entity, if applicable, and delivered to the Trustee, in form satisfactory to the Trustee;

 

(b)immediately
after giving effect to such assumption of obligations, no Enforcement Event and no event which, after notice or lapse of time or
both, would become an Enforcement Event, shall have occurred and be continuing; and

 

(c)the
Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such assumption
complies with this Article and that all conditions precedent herein provided for relating to such assumption have been complied
with.

 

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Upon any such assumption, the successor
entity shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Contingent Convertible
Capital Securities Indenture with respect to any such Contingent Convertible Capital Securities with the same effect as if such
successor entity had been named as the Company in this Contingent Convertible Capital Securities Indenture, and the Company or
any legal and valid successor corporation which shall theretofore have become such in the manner prescribed herein, shall be released
from all liability as obligor upon any such Contingent Convertible Capital Securities except as described in the following paragraph.

 

In the event
of any assumption, Additional Amounts under the Contingent Convertible Capital Securities of such series will be payable in respect
of taxes imposed by the assuming corporation’s jurisdiction of incorporation or tax residence (subject to exceptions equivalent
to those that apply to the obligation to pay Additional Amounts pursuant to ‎Section
11.04 in respect of taxes imposed by the laws of the Kingdom of Spain) on payments of Distributions or Liquidation Preference made
on or subsequent to the date of such assumption. Additional Amounts with respect to payments of Distributions or Liquidation Preference
due prior to the date of such assumption will be payable only in respect of taxes imposed by the Kingdom of Spain. The assuming
corporation will also be entitled to redeem the Contingent Convertible Capital Securities of such series in the circumstances described
in ‎Section 12.08 with
respect to any change or amendment to, or change in the application or official interpretation of the laws or regulations of such
jurisdiction, which change or amendment must occur subsequent to the date of any such assumption if the assuming entity is not
incorporated or tax resident in the Kingdom of Spain. In the event of any such assumption, all obligations of the Company under
the Contingent Convertible Capital Securities of such series shall immediately be discharged.

 

Article
10

Supplemental Indentures

 

Section 10.01.Supplemental Indenture
without Consent of Holders. Without the consent of any Holders, the Company, when authorized by a Board Resolution, and the
Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to
the Trustee, for any of the following purposes:

 

(a)to
evidence the succession of another corporation to the Company and the assumption by any such successor of the covenants of the
Company herein and in the Contingent Convertible Capital Securities;

 

(b)to
add to the covenants of the Company for the benefit of the Holders of all or any series of Contingent Convertible Capital Securities
(and, if such covenants are to be for the benefit of fewer than all series of Contingent Convertible Capital Securities, stating
that such covenants are expressly being included solely for the benefit of such series) or to surrender any right or power herein
conferred upon the Company;

 

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(c)to
add any additional Enforcement Events;

 

(d)to
make changes to procedures relating to Trigger Conversion, delivery of the Common Shares, or ADSs, as applicable;

 

(e)to
change or eliminate any of the provisions of this Contingent Convertible Capital Securities Indenture, or any supplemental indenture,
provided that any such change or elimination shall become effective only when there is no outstanding Contingent Convertible Capital
Security of any series created prior to the execution of such supplemental indenture that is entitled to the benefit of such provision
or as to which such supplemental indenture would apply;

 

(f)to
secure the Contingent Convertible Capital Securities;

 

(g)to
establish the form or terms of Contingent Convertible Capital Securities of any series as permitted by Sections ‎2.01
or ‎3.01;

 

(h)to
change any Place of Payment, so long as the Place of Payment as required by ‎Section 3.01 is maintained in The City
of New York;

 

(i)to
cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision
herein or in any supplemental indenture;

 

(j)to
evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Contingent Convertible
Capital Securities of one or more series and to add to or change any of the provisions of this Contingent Convertible Capital
Securities Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than
one Trustee, pursuant to the requirements of ‎Section 7.12(b); 

 

(k)to
change or eliminate any provision of this Contingent Convertible Capital Securities Indenture as permitted by ‎Section
1.08

 

(l)to
name a Trustee for a particular series of Contingent Convertible Capital Securities other than the Trustee named in the first
paragraph of this Contingent Convertible Capital Securities Indenture and to provide for the appropriate changes related to such
appointment for a particular series of Contingent Convertible Capital Securities; 

 

(m)with
respect to any Contingent Convertible Capital Security (including a Global Security) issued on or after the date hereof, to amend
any such Contingent Convertible Capital Security to conform to the description of the terms of such Contingent Convertible Capital
Security in the prospectus, prospectus supplement, product supplement, pricing supplement or any other similar offering document
related to the offering of such Contingent Convertible Capital Security; or

  

(n)to
change or modify any provision of the Contingent Convertible Capital Securities Indenture as necessary to ensure that the Contingent
Convertible Capital Securities of any series shall be convertible into ordinary shares of Newco in the event of a Newco Scheme.

 

 

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Section 10.02.Supplemental Indentures
with Consent of Holders. With the consent of the Holders of not less than a majority in aggregate Liquidation Preference of
the Outstanding Contingent Convertible Capital Securities of each series affected by such supplemental Contingent Convertible Capital
Securities Indenture (voting as a class), by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized
by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions of this Contingent Convertible Capital Securities
Indenture or of modifying in any manner the rights of the Holders of Contingent Convertible Capital Securities of such series under
this Contingent Convertible Capital Securities Indenture; provided, however, that no such supplemental indenture may, without the
consent of the Holder of each Outstanding Contingent Convertible Capital Security affected thereby,

 

(a)change
the terms of any Contingent Convertible Capital Security to reduce the Liquidation Preference payable upon the redemption of, or
the Distributions payable on any Contingent Convertible Capital Security, or change the obligation of the Company (or its successor)
to pay Additional Amounts pursuant to ‎Section
11.04 (except as contemplated by ‎Section
9.01(a) and permitted by ‎Section 10.01(a))
on the Contingent Convertible Capital Securities, or the currency of payment of the Liquidation Preference or Distributions on
any such Contingent Convertible Capital Security, or change the Place of Payment, or impair the right to institute suit for the
enforcement of any such payment when due and payable on or with respect to any Contingent Convertible Capital Security, or modify
the calculation of and any adjustment to, the Conversion Price; or

 

(b)reduce
the percentage in aggregate Liquidation Preference of the Outstanding Contingent Convertible Capital Securities of any series,
the consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any
waiver (of compliance with certain provisions of this Contingent Convertible Capital Securities Indenture or of certain defaults
hereunder and their consequences) provided for in this Contingent Convertible Capital Securities Indenture, or

 

(c)modify
any of the provisions of this ‎Section 10.02
except to increase any such percentage or to provide that certain other provisions of this Contingent Convertible Capital Securities
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Contingent Convertible Capital Security
affected thereby; 

 

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provided,
however, that this subsection shall not be deemed to require the consent of any Holder with respect to changes in the
references to “the Trustee” and concomitant changes in this Section, or the deletion of this proviso, in
accordance with the requirements of Sections ‎7.12(b)
and Section ‎10.01(l), or

 

(d)change
in any manner adverse to the interests of the Holders of any Contingent Convertible Capital Securities the subordination provisions
of the Contingent Convertible Capital Securities or the terms and conditions of the obligations of the Company in respect of the
due and punctual payment of any amounts due and payable on the Contingent Convertible Capital Securities.

 

It shall not be necessary for any Act of
Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such Act shall approve the substance thereof.

 

A supplemental indenture which changes or
eliminates any covenant or other provision of this Contingent Convertible Capital Securities Indenture which has expressly been
included solely for the benefit of one or more particular series of Contingent Convertible Capital Securities, or which modifies
the rights of the Holders of Contingent Convertible Capital Securities of such series with respect to such covenant or other provision,
shall be deemed not to affect the rights under this Contingent Convertible Capital Securities Indenture of the Holders of Contingent
Convertible Capital Securities of any other series.

 

Section 10.03.Execution
of Supplemental Indentures. In executing, or accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modifications thereby of the trusts created by this Contingent Convertible Capital Securities Indenture,
the Trustee shall be entitled to receive, and (subject to ‎Section
7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Contingent Convertible Capital Securities Indenture and constitutes a legal, valid and binding
obligation of the Company, subject to customary exceptions. The Trustee may, but shall not be obliged to, enter into any such supplemental
indenture which affects the Trustee’s own rights, duties or immunities under this Contingent Convertible Capital Securities
Indenture or otherwise.

 

Section 10.04.Effect of Supplemental
Indentures. Upon the execution of any supplemental indenture under this Article, this Contingent Convertible Capital Securities
Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Contingent Convertible
Capital Securities Indenture for all purposes; and every Holder of Contingent Convertible Capital Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby, except as otherwise expressed therein.

 

Section 10.05.Conformity with Trust
Indenture Act. Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust
Indenture Act as then in effect.

 

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Section 10.06.Reference in Contingent
Convertible Capital Securities to Supplemental Indentures. Contingent Convertible Capital Securities of any series authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Contingent Convertible Capital Securities of any series so modified as to conform, in the opinion of the Trustee
and the Company, to any such supplemental indenture may be prepared and executed by the Company and such Contingent Convertible
Capital Securities may be authenticated and delivered by the Trustee in exchange for Outstanding Contingent Convertible Capital
Securities of such series.

 

Article
11

Covenants

 

Section 11.01.Payment of Liquidation Preference and Distributions.
The Company covenants and agrees for the benefit of each series of Contingent Convertible Capital Securities that it will duly
and punctually pay the Liquidation Preference of and Distributions on, if any (subject to the subordination provisions of Section
13.01 and Section 3.01) on the Contingent Convertible Capital Securities of that series when due and payable in accordance with
the terms of the Contingent Convertible Capital Securities and this Contingent Convertible Capital Securities Indenture. Except
as otherwise specified, as contemplated by ‎Section 3.01 hereof, the Trustee shall act as Principal Paying Agent with respect
to any series of Contingent Convertible Capital Securities.

 

Section 11.02.Maintenance
of Office or Agency. The Company will maintain in each Place of Payment for any series of Contingent Convertible Capital Securities
an office or agency where Contingent Convertible Capital Securities of that series may be presented or surrendered for payment,
where Contingent Convertible Capital Securities of that series may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company in respect of the Contingent Convertible Capital Securities of that series and
this Contingent Convertible Capital Securities Indenture may be served; provided, however, that at the option of the Company in
the case of definitive Contingent Convertible Capital Securities of such series, payment of any Distributions thereon may be made
by check mailed to the address of the Person entitled herein as such address shall appear in the Contingent Convertible Capital
Security Register. With respect to the Contingent Convertible Capital Securities of any series, such office or agency in each
Place of Payment shall be specified as contemplated by ‎Section 3.01, and if not so specified, initially shall be 225 Liberty
Street, New York, New York, 10286. Unless otherwise specified pursuant to ‎Section 3.01, the Company will maintain in the
Borough of Manhattan, The City of New York, an office or agency where notices and demands to or upon the Company in respect of
Contingent Convertible Capital Securities of any series and this Contingent Convertible Capital Securities Indenture may be served.
The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish 

 

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the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. The Company
hereby appoints the Trustee as its agent to receive all presentations, surrenders, notices and demands.

 

The Company may also from time to time designate
one or more other offices or agencies (in or outside the Borough of Manhattan, The City of New York) where the Contingent Convertible
Capital Securities of one or more series may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company
of any obligation to maintain an office or agency in each Place of Payment (except as otherwise indicated in this Section) for
Contingent Convertible Capital Securities of any series for such purposes. The Company will give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any such other office or agency.

 

Section 11.03.Money for Distributions
to be Held in Trust. If the Company shall at any time act as Paying Agent with respect to the Contingent Convertible Capital
Securities of any series, it will, on or before each due date, if any, for payment of the Liquidation Preference or Distributions
on any of the Contingent Convertible Capital Securities of that series, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the Liquidation Preference or Distributions so becoming due until such sums shall be paid
to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its failure so to act.

 

Whenever the
Company shall have one or more Paying Agents for any series of Contingent Convertible Capital Securities, it will, prior to any
due date for payment of the Liquidation Preference or Distributions on any Contingent Convertible Capital Securities of that series
deposit with a Paying Agent a sum sufficient to pay the Liquidation Preference or Distributions so becoming due, such sum to be
held in trust for the benefit of the Persons entitled to such Liquidation Preference or Distributions, and (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its action or its failure so to act. Unless otherwise specified
as contemplated by ‎Section
3.01, the Trustee shall be the Company’s Paying Agent. The Company will cause each Paying Agent for any series of Contingent
Convertible Capital Securities other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying
Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will:

 

(a)hold
all sums held by it for the payment of the Liquidation Preference or Distributions on Contingent Convertible Capital Securities
of that series in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise
disposed of as herein provided;

 

(b)give
the Trustee notice of any default by the Company (or any other obligor upon the Contingent Convertible Capital Securities of that
series) in the making of any

 

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payment, when due and payable, or Liquidation
Preference or Distributions on Contingent Convertible Capital Securities of that series; and

 

(c)at
any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all
sums so held in trust by such Paying Agent.

 

The Company may at the time, for the purpose
of obtaining the satisfaction and discharge of this Contingent Convertible Capital Securities Indenture or for any other purpose,
pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent,
such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee such Paying Agent shall be released from all further liability
with respect to such money.

 

Any money deposited with the Trustee or
any Paying Agent, or then held by the Company, in trust for the payment of the Liquidation Preference or Distributions on any Contingent
Convertible Capital Security of any series and remaining unclaimed for two years after such Liquidation Preference or Distributions
have become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged
from such trust; and the Holder of such Contingent Convertible Capital Security shall thereafter, as an unsecured general creditor,
look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published at least
once, in an Authorized Newspaper, notice that such money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be paid to
the Company.

 

Section 11.04.Additional Amounts.

 

(a)Unless
otherwise specified pursuant to Section 3.01, all payments of Distributions and other amounts payable in respect of Contingent
Convertible Capital Securities by the Company will be made free and clear of and without withholding or deduction for or on account
of any present or future taxes, duties, assessments or governmental charges (collectively “Taxes”) of whatever nature
imposed or levied by or on behalf of Spain or any political subdivision thereof or any authority or agency therein or thereof having
power to tax, unless the withholding or deduction of such taxes, duties, assessments or governmental charges is required by law.
In that event, the Company shall pay, in respect of any withholding or deduction imposed on payments of Distributions only (and
not Liquidation Preference), such additional amounts (“Additional Amounts”) as will result in Holders of any
series of outstanding Contingent Convertible Capital Securities receiving such amounts as they would have received had no such
withholding or deduction been required.

 

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(b)The
Company shall not be required to pay any Additional Amounts in relation to any payment in respect of any Contingent Convertible
Capital Security:

 

(i)to,
or to a third party on behalf of, a Holder if the Holder or the beneficial owner of Contingent Convertible Capital Securities
of any series is liable for such Taxes in respect of such Contingent Convertible Capital Security by reason of his having some
connection with Spain other than the mere holding of such Contingent Convertible Capital Security; or

 

(ii)to,
or to a third party on behalf of, a Holder in respect of whose Contingent Convertible Capital Securities the Company does not
receive such information as may be required in order to comply with the applicable Spanish tax reporting obligations (as amended
or restated from time to time), including but not limited to the receipt in a timely manner of a duly executed and completed certificate
in accordance with Law 10/2014 and Royal Decree 1065/2007, as amended, and any implementing legislation or regulation; or

 

(iii)to,
or to a third party on behalf of, a Holder if the Holder or the beneficial owner of Contingent Convertible Capital Securities
of any series failed to make any necessary claim or to comply with any certification, identification or other requirements concerning
the nationality, residence, identity or connection with the taxing jurisdiction of such Holder or beneficial owner, if such claim
or compliance is required by statute, treaty, regulation or administrative practice of the taxing jurisdiction of the Company
as a condition to relief or exemption from such taxes; or

 

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

 

(v)where
the withholding or deduction is imposed pursuant to European Council Directive 2003/48/EC or any Directive amending, supplementing
or replacing such Directive, or any law implementing or complying with, or introduced in order to conform to, such Directive;
or

 

(vi)presented
for payment (where presentation is required) by or on behalf of a Holder of a Contingent Convertible Capital Security who would
have been able to avoid such withholding or deduction by presenting the Contingent Convertible Capital Security to another paying
agent in a Member State of the European Union; or

 

(vii)to,
or to a third party on behalf of, individuals resident for tax purposes in the Kingdom of Spain; or

  

(viii)to, or to a third party
on behalf of, a Spanish-resident legal entity subject to Spanish corporation tax if the Spanish tax authorities determine that
the Contingent Convertible Capital Securities of any series do not comply with

 

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exemption requirements specified
in the Reply to a Consultation of the Directorate General for Taxation (Dirección General de Tributos) dated 27 July 2004
and require a withholding to be made; or

 

(ix)where the withholding
or deduction is required pursuant to an agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to Sections
1471 through 1474 of the Code (“FATCA”), any regulations or agreements thereunder, any official interpretations thereof,
any intergovernmental agreements with respect thereto (including the intergovernmental agreement between the United States and
Spain on the implementation of FATCA), or any law implementing an intergovernmental agreement or any regulations or official interpretations
relating thereto.

 

(c)In addition, Additional Amounts will not be payable with respect to any Taxes that are imposed in respect
of any combination of the items listed in (b)(i) through (b)(ix) set forth above.

  

(d)Additional
Amounts will also not be paid with respect to any payment to a Holder who is a fiduciary, a partnership, a limited liability company
or person other than the sole beneficial owner of that payment, to the extent that payment would be required by the laws of Spain
(or any political subdivision thereof) to be included in the income, for tax purposes, of a beneficiary or settlor with respect
to the fiduciary, a member of that partnership, an interest holder in that limited liability company or a beneficial owner who
would not have been entitled to the Additional Amounts had it been the Holder.

 

For the purposes
of this ‎Section 11.04:

 

“Relevant Date” means, in respect of any
payment, the date on which such payment first becomes due and payable, except that, if the full amount of the moneys payable has
not been duly received by the Principal Paying Agent on or prior to such due date, it means the date on which, the full amount
of such moneys having been so received and being available for payment to Holders, notice to that effect is duly given to the Holders
in accordance with Section 1.06.

 

In the event that any withholding or deduction for or on account
of any taxes by the Company is required, at least 10 days prior to each date of payment of Liquidation Preference of or Distributions
on the relevant series of Contingent Convertible Capital Securities, or, if later, promptly after the obligation to withhold or
deduct becomes known to the Company, the Company will furnish to the Trustee and the Paying Agent, if other than the Trustee, an
Officer’s Certificate specifying the amount required to be withheld or deducted on such payments to such Holders, certifying
that the Company shall pay such amounts required to be withheld to the appropriate taxing jurisdiction and certifying to the fact
that the Additional Amounts will be payable and the amounts so payable to each Holder, and that the Company will pay to the Trustee
or the Paying Agent the Additional Amounts required to be paid; provided that no such Officer’s Certificate will be required
prior to any date of payment of Liquidation Prefrence of or Distributions on such Contingent Convertible Capital Securities if
there has been no change with respect to the matters set forth in a prior Officer’s Certificate. The Trustee and Paying Agent
may rely on the fact that any Officer’s Certificate contemplated by this paragraph has not been furnished as evidence of
the fact that no withholding or deduction for or on account of any taxes is required. The Company covenants to indemnify the Trustee
and Paying Agent for and to hold them harmless against any loss, liability or expense reasonably incurred without negligence or
bad faith on their part arising out of or in connection with actions taken or omitted by any of them in reliance on any such Officer’s
Certificate furnished pursuant to this paragraph or on the fact that any Officer’s Certificate contemplated by this paragraph
has not been furnished.

 

 

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Except where the context requires otherwise,
any references in this Contingent Convertible Capital Securities Indenture to Distributions in respect of the Contingent Convertible
Capital Securities shall include any Additional Amounts payable with respect thereto.

 

Section 11.05.Corporate
Existence. Subject
to ‎Article 9, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect
its corporate existence, provided, however, that the foregoing shall not obligate the Company to preserve any such
right or franchise if the Company shall determine that the preservation thereof is no longer desirable in the conduct of its business
and that the loss thereof is not disadvantageous in any material respect to any Holder.

  

Section 11.06.Statement as to Compliance.
The Company will deliver to the Trustee, within 120 days after the end of each fiscal year, a certificate in compliance with Section
314(a)(4) of the Trust Indenture Act.

 

Article
12

Redemption and Repurchase of Contingent Convertible Capital Securities

 

Section 12.01.Applicability
of Article. Contingent Convertible Capital Securities of any series shall be redeemable in accordance with their terms and
(except as otherwise specified pursuant to ‎Section
3.01 for Contingent Convertible Capital Securities of any series) in accordance with this Article. Contingent Convertible Capital
Securities of any series may not be redeemed except in accordance with provisions of the Applicable Banking Regulations. The Contingent
Convertible Capital Securities of any series may not be redeemed in whole or in part at the option of the Holder thereof.

 

Section 12.02.Election
to Redeem; Notice to Trustee. The election of the Company to redeem any Contingent Convertible Capital Securities shall be
evidenced by a Board Resolution. Unless otherwise provided as contemplated by ‎Section 3.01 with respect to any series
of Contingent Convertible Capital Securities, the Company shall, at least 30 days prior, but not more than 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the Liquidation Preference of Contingent Convertible Capital Securities of such series to be redeemed.
In the case of any redemption of Contingent Convertible Capital Securities of any series prior to the expiration of any provision
restricting such redemption provided in the terms of such Contingent Convertible Capital Securities or elsewhere in this Contingent
Convertible Capital Securities Indenture, the Company shall furnish the Trustee with respect to such Contingent Convertible Capital
Securities with an Officer’s Certificate evidencing compliance with or waiver of such provision.

 

 

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Section 12.03.Selection by
Trustee of Contingent Convertible Capital Securities to be Redeemed. If less than all the Contingent Convertible Capital
Securities of any series are to be redeemed, the particular Contingent Convertible Capital Securities to be redeemed shall be
selected not less than 30 days nor more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Contingent Convertible Capital Securities of such series not previously called for redemption, pro rata, by lot or by such
method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of portions
(equal to the minimum authorized denomination for Contingent Convertible Capital Securities of that series or any multiple
thereof) of the Liquidation Preference of Contingent Convertible Capital Securities of such series of a denomination larger
than the minimum authorized denomination for Contingent Convertible Capital Securities of that series. Redemption in
accordance with regulations of the list authority, stock exchange and/or quotation system shall conform to the
prospectus.

 

The Trustee shall promptly notify the Company
in writing of the Contingent Convertible Capital Securities selected for redemption and, in the case of any Contingent Convertible
Capital Securities selected for partial redemption, the Liquidation Preference thereof to be redeemed.

 

For all purposes of this Contingent Convertible
Capital Securities Indenture, unless the context otherwise requires, all provisions relating to the redemption of Contingent Convertible
Capital Securities shall relate in the case of any Contingent Convertible Capital Securities redeemed or to be redeemed only in
part, to the portion of the Liquidation Preference of such Contingent Convertible Capital Security which has been or
is to be redeemed.

 

Section 12.04.Redemption Procedures;
Notice of Redemption.

 

(a)The
decision to redeem the Contingent Convertible Capital Securities must be irrevocably notified by the Company to Holders of the
Contingent Convertible Capital Securities of such series upon not less than 30 nor more than 60 days’ notice prior to the
relevant redemption date (i) through the filing of a relevant event (hecho relevante) announcement with the CNMV and its
publication in accordance with the rules and regulations of any applicable stock exchange or other relevant authority and (ii)
in accordance with Section 1.06, and to the trustee at least five (5) Business Days prior to such date, unless a shorter notice
period shall be satisfactory to the Trustee.

 

(b)Any
notice of redemption will state: the redemption date; that on the redemption date the Redemption Price will, subject to the satisfaction
of the conditions set forth in this Contingent Convertible Capital Securities Indenture become due and payable upon each Contingent
Convertible Capital Security being redeemed and that, subject to certain exceptions, Distributions will cease to accrue on or after
that date; the place or places where the Contingent Convertible Capital Securities are to be surrendered for payment of the redemption
price; and the CUSIP, Common Code and/or ISIN number

 

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or numbers, if any, with respect to the Contingent
Convertible Capital Securities being redeemed.

 

(c)If
the Company gives notice of redemption of the Contingent Convertible Capital Securities of any series, then by 12:00 noon (London
time) on the relevant redemption date, the Company will:

 

(i)irrevocably deposit with
the Principal Paying Agent funds sufficient to pay the Redemption Price; and

 

(ii)give the Principal Paying
Agent irrevocable instructions and authority to pay the Redemption Price to the Holders.

 

(d)If
the notice of redemption has been given on any series of Contingent Convertible Capital Securities, and the funds deposited and
instructions and authority to pay given as required above, then on the date of such deposit:

 

(i)Distributions on the Contingent
Convertible Capital Securities of such series shall cease to accrue;

 

(ii)such Contingent Convertible
Capital Securities of such series will no longer be considered outstanding; and

 

(iii)the Holders of Contingent
Convertible Capital Securities of such series will no longer have any rights as holders except the right to receive the Redemption
Price.

 

(e)If
in connection with any series of Contingent Convertible Capital Securities either the notice of redemption has been given and the
funds are not deposited as required on the date of such deposit or if the Company improperly withholds or refuses to pay the Redemption
Price of the Contingent Convertible Capital Securities of such series, Distributions will continue to accrue, subject as provided
in Section 3.08 and Section 3.09, at the rate specified from (and including) the redemption date to (but excluding) the date of
actual payment of the Redemption Price.

 

(f)The
Company may not give a notice of redemption pursuant to this ‎Section
12.04 if a Trigger Event Notice has been given. If a Trigger Event Notice is given after a notice of redemption shall have been
given by the Company but before the redemption has occurred, such notice of redemption shall automatically be revoked and be null
and void and the relevant redemption shall not be made.

 

Section 12.05.Deposit
of Redemption Price. On or prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent
(or, if the Company is acting as Paying Agent, segregate and hold in trust as provided in ‎Section
11.03) an amount of money sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be a Distribution
Date) accrued but unpaid Distributions on, all the Contingent Convertible Capital Securities which are to be redeemed on that date.

 

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Section 12.06.Contingent
Convertible Capital Securities Payable on Redemption Date. Notice of redemption having been given as set forth in ‎Section
12.04, the Contingent Convertible Capital Securities so to be redeemed shall, on the Redemption Date, become due and payable at
the Redemption Price therein specified, and from and after such date (unless the Company shall default in the payment of the Redemption
Price and Distributions, if any) such Contingent Convertible Capital Securities shall cease to accrue Distributions for the period
following the Redemption Date. Upon surrender of any such Contingent Convertible Capital Security for redemption in accordance
with ‎Section 12.04, such Contingent Convertible
Capital Security shall be paid by the Company at the Redemption Price, together with accrued but unpaid Distributions, if any, accumulated to the Redemption Date; provided, however, that unless otherwise specified as contemplated by
‎Section 3.01, a Distribution which is payable
on a Distribution Date which is the Redemption Date, shall be payable to the Holders of such Contingent Convertible Capital Securities,
or one or more Predecessor Securities, registered as such at the close of business on the relevant Regular Record Dates according
to the terms of the Contingent Convertible Capital Securities and the provisions of ‎Section
3.07. Contingent Convertible Capital Securities in definitive form shall be presented for redemption to the Paying Agent. 

 

If any Contingent
Convertible Capital Security called for redemption shall not be so paid upon surrender thereof for redemption, the Contingent Convertible
Capital Security shall, until paid, continue to accrue Distributions from and after the Redemption Date in accordance with its
terms and the provisions of ‎Section
3.07.

 

Section 12.07.Contingent Convertible
Capital Securities Redeemed In Part. Any Contingent Convertible Capital Security which is to be redeemed only in part shall
be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such
Contingent Convertible Capital Security without service charge, a new Contingent Convertible Capital Security or Contingent Convertible
Capital Securities of the same series of any authorized denomination as requested by such Holder, in Liquidation Preference equal
to and in exchange for the unredeemed portion of the Liquidation Preference of the Contingent Convertible Capital Security so surrendered.

 

Section 12.08.Optional Redemption Due To Changes In Tax Treatment.
Unless otherwise provided as contemplated by Section 3.01 with respect to the Contingent Convertible Capital Securities of any
series, if, on or after the date of issuance of any series of Contingent Convertible Capital Securities, (i) there is a Tax Event,
and (ii) such circumstances are evidenced by the delivery by the Company to the Trustee of a certificate signed by two directors
of the Company stating that the said circumstances prevail and describing the facts leading thereto and a copy of the Regulator’s
consent to the redemption, the Contingent Convertible Capital Securities of such series may be redeemed, in whole but not in part,
at the option of the Company, subject to the prior consent of the Regulator and otherwise in accordance with Applicable Banking
Regulations then in force, at any time, at the Redemption Price per Contingent Convertible Capital Security.

  

Section 12.09.Optional Redemption
Due To Capital Event. Unless otherwise provided as contemplated by Section 3.01 with respect to the Contingent Convertible

 

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Capital Securities of any series, if, on or
after the issue date of the Contingent Convertible Capital Securities of any series, (i) there is a Capital Event, and (ii) such
circumstances are evidenced by the delivery by the Company to the trustee of a certificate signed by two directors of the Company
stating that the said circumstances prevail and describing the facts leading thereto and a copy of the Regulator’s consent
to the redemption, the Contingent Convertible Capital Securities of such series may be redeemed, in whole but not in part, at the
option of the Company, subject to the prior consent of the Regulator and otherwise in accordance with Applicable Banking Regulations
then in force, at any time, at the Redemption Price.

 

Section 12.10.Repurchase of Contingent Convertible Capital Securities.
(a) Unless otherwise provided as contemplated by Section 3.01 with respect to the Contingent Convertible Capital Securities
of any series, the Company or any member of the Group, may repurchase or otherwise acquire any of the outstanding Contingent Convertible
Capital Securities of any series at any price in the open market or otherwise in accordance with Applicable Banking Regulations
in force at the relevant time, and subject to the consent of the Regulator.

  

(b)Notwithstanding
any other provision of Section 4.06 and subject to compliance with the provisions of the Spanish Companies Act and/or with any
Applicable Banking Regulations, the Company or any member of the Group may exercise such rights as it may from time to time enjoy
to purchase or redeem or buy back any shares of the Company (including Common Shares) or any depositary or other receipts or certificates
representing the same without the consent of the Holders.

 

Section 12.11.Optional Redemption.
Unless otherwise provided as contemplated by Section 3.01 with respect to the Contingent Convertible Capital Securities of
any series, the Contingent Convertible Capital Securities of any series may be redeemed by the Company in whole but not in part,
in accordance with Applicable Banking Regulations in force at the relevant time, and subject to the consent of the Regulator.

 

Section 12.12.Cancelled
Distributions Not Payable Upon Redemption. Any Distributions that have been cancelled or deemed cancelled pursuant to Sections
‎3.08 or ‎3.09 hereof shall not be payable if the Contingent Convertible Capital Securities are redeemed
pursuant to Sections ‎12.08, ‎12.09 or ‎12.10 hereof.

 

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Article
13

Subordination of Contingent Convertible Capital Securities

 

Section 13.01.Contingent
Convertible Capital Securities Subordinate to Senior Claims. (a) Unless previously converted into Common Shares pursuant
‎Section 4.01, the Contingent Convertible Capital Securities of any series are unsecured and subordinated obligations
of the Company and rank (i) senior to (A) those subordinated obligations which qualify as more subordinated claims pursuant to
Articles 92.3 to 92.7 of the Spanish Insolvency Law, or equivalent legal provisions which replace them in the future and (B) the
Common Shares or (C) any other instruments issued or guaranteed by the Company ranking junior to the Contingent Convertible Capital
Securities, (ii) pari passu with each other and with any Parity Securities and (iii) junior to (A) any other liabilities
of the Company including subordinated liabilities other than Parity Securities and (B) instruments issued or guaranteed by the
Company ranking senior to the Contingent Convertible Capital Securities of any series.

 

(b) The Company agrees with respect to any series of
Contingent Convertible Capital Securities and each holder of Contingent Convertible Capital Securities of any series, by his or
her acquisition of a Contingent Convertible Capital Security, will be deemed to have agreed to the subordination as described in
this Section 13.01. Each such holder will be deemed to have irrevocably waived his or her rights of priority which would otherwise
be accorded to him or her under the laws of Spain, to the extent necessary to effectuate the subordination provisions of the Contingent
Convertible Capital Security. In addition, each holder of Contingent Convertible Capital Securities of any series by his or her
acquisition of the securities authorizes and directs the applicable trustee on his or her behalf to take such action as may be
necessary or appropriate to effectuate the subordination of the relevant Contingent Convertible Capital Securities as provided
in the Contingent Convertible Capital Securities Indenture and as summarized herein and appoints the Trustee his attorney-in-fact
for any and all such purposes.

 

(c)The Company may not issue, or guarantee
the issue of, any Parity Securities or other instruments equivalent to Parity Securities ranking, either directly or through a
guarantee, senior to the Contingent Convertible Capital Securities of any series, unless the terms and conditions of the Contingent
Convertible Capital Securities of such series are amended so as to rank pari passu with any such issue of senior securities.

 

Section 13.02.Waiver of Right of
Set-Off. Subject to applicable law, neither any holder or beneficial owner of the Contingent Convertible Capital Securities
of any series nor the Trustee acting on behalf of the holders of the Contingent Convertible Capital Securities of such series may
exercise, claim or plead any right of set-off, compensation or retention in respect of any amount owed to it by the Company in
respect of, or arising under, or in connection with, the Contingent Convertible Capital Securities of such series or the Contingent
Convertible Capital Securities Indenture and each Holder and beneficial owner of the Contingent Convertible Capital Securities
of such series, by virtue of its holding of any Contingent Convertible Capital Securities of such series or any interest therein,
and the Trustee acting on behalf of the holders of the Contingent

 

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Convertible Capital Securities of such
series, shall be deemed to have waived all such rights of set-off, compensation or retention. If, notwithstanding the above,
any amounts due and payable to any holder or beneficial owner of a Contingent Convertible Capital Security of any series or
any Distributions thereon by the Company in respect of, or arising under, the Contingent Convertible Capital Securities of
such series are discharged by set-off, such holder or beneficial owner shall, subject to applicable law, immediately pay an
amount equal to the amount of such discharge to the Company (or, if a Liquidation Event shall have occurred, the liquidator
or administrator of the Company, as the case may be) and, until such time as payment is made, shall hold an amount equal to
such amount in trust (where possible) or otherwise for the Company (or the liquidator or administrator of the Company, as the
case may be) and, accordingly, any such discharge shall be deemed not to have taken place.

 

Section 13.03.Provisions Solely
to Define Relative Rights. The provisions of this Article 13 are and are intended solely for the purpose of defining the
relative rights of the Holders of the Contingent Convertible Capital Securities of each series on the one hand and the Senior
Creditors on the other hand. Nothing contained in this Article or elsewhere in this Contingent Convertible Capital Securities
Indenture or in such Contingent Convertible Capital Securities is intended to or shall (a) impair, as among the Company and
the Holders of the Contingent Convertible Capital Securities, the obligation of the Company, which is absolute and
unconditional, to pay to the holders of such claims the Liquidation Preference and Distributions on such
Contingent Convertible Capital Securities as and when the same shall become due and payable in accordance with their terms
and this Contingent Convertible Capital Securities Indenture; or (b) affect the relative rights against the Company of the
Holders of such Contingent Convertible Capital Securities; or (c) prevent the Trustee or the Holder of any Contingent
Convertible Capital Securities of the series from exercising all remedies otherwise permitted by applicable law upon default
under this Contingent Convertible Capital Securities Indenture, subject to the rights, if any, under this Article of the
Senior Creditors to receive cash, property or securities otherwise payable or deliverable to the Trustee or such holder.

 

Section 13.04.Trustee
to Effectuate Subordination. Each Holder of a Contingent Convertible Capital Security by his acceptance thereof authorizes
and directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the subordination of
the Contingent Convertible Capital Securities provided in this ‎Article 13 and appoints the Trustee his attorney-in-fact
for any and all such purposes.

 

Section 13.05.Trustee Not Fiduciary
for Senior Creditors. With respect to the Senior Creditors, the Trustee undertakes to perform or to observe only such of its
covenants and obligations as are specifically set forth in this Contingent Convertible Capital Securities Indenture, and no implied
covenants or obligations with respect to the Senior Creditors shall be read into this Contingent Convertible Capital Securities
Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the Senior Creditors and shall not
be liable to any such holders if it shall mistakenly pay over or distribute to Holders of Contingent Convertible Capital Securities
of the series or to the Company or to any other Person cash, property or securities to which any Senior Creditors shall be entitled
by virtue of this Article or otherwise.

 

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Section 13.06.Rights of Trustee as
Senior Creditor; Preservation of Trustee’s Rights. The Trustee in its individual or any other capacity shall be entitled
to all the rights set forth in this Article with respect to any claims of Senior Creditors which may at any time be held by it,
to the same extent as any other Senior Creditor, and nothing in this Contingent Convertible Capital Securities Indenture or the
Trust Indenture Act shall deprive the Trustee of any of its rights as such holder.

 

Nothing in
this Article shall apply to claims of, or payments to, the Trustee under or pursuant to ‎Section
6.08 and ‎Section 7.08.

 

Section 13.07.Article
Applicable to Paying Agents. At all times when a Paying Agent other than the Trustee shall have been appointed by the Company
and be then acting hereunder, the term “Trustee” as used in this Article shall in such case (unless the context
otherwise requires) be construed as extending to and including such Paying Agent within its meaning as fully for all intents and
purposes as if such Paying Agent were named in this Article in addition to or in place of the Trustee; provided, however,
that ‎Section 13.06 shall not apply to the
Company or any Affiliate of the Company if it or such Affiliate acts as Paying Agent.

 

Article
14

Spanish Bail-In and Resolution Actions

 

Section 14.01.Agreement and Acknowledgment
with Respect to the Exercise of the Spanish Bail-in Power. 

 

(a)Notwithstanding any other term of the Contingent Convertible Capital Securities of any series or any other
agreements, arrangements, or understandings between the Company and any Holder of the Contingent Convertible Capital Securities
of any series, by its acquisition of the Contingent Convertible Capital Securities of any series, each Holder (which, for the purposes
of this ‎Section 14.01, includes each Holder of a beneficial interest
in the Contingent Convertible Capital Securities of any series) acknowledges, accepts, consents to and agrees to be bound by:

  

(i)the effect of the exercise
of the Spanish Bail-in Power by the relevant resolution authority, which exercise may include and result in any of the following,
or some combination thereof:

 

(A)the reduction of all,
or a portion, of the Amounts Due on the Contingent Convertible Capital Securities of such series;

 

(B)the conversion of all,
or a portion, of the Amounts Due on the Contingent Convertible Capital Securities of such series into ordinary shares, other securities
or other obligations of the Company or another Person (and the issue to or conferral on the Holder of the Contingent Convertible
Capital Securities of such series of such shares, securities or obligations), including by means of an amendment, modification
or

 

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variation of the terms of the Contingent
Convertible Capital Securities of such series;

 

(C)the
cancellation of the Contingent Convertible Capital Securities of such series; 

 

(D)the
amendment or alteration of the Liquidation Preference of the Contingent Convertible Capital Securities of such series or amendment
of the amount of Distributions payable on the Contingent Convertible Capital Securities of such series, or the date on which the
Distributions become payable, including by suspending payment for a temporary period; and

 

(ii)the
variation of the terms of the Contingent Convertible Capital Securities of such series, if necessary, to give effect to the exercise
of the Spanish Bail-in Power by the relevant resolution authority.

 

(b)No
repayment or payment of Amounts Due on the Contingent Convertible Capital Securities of any series, will become due and payable
or be paid after the exercise of any Spanish Bail-in Power by the relevant resolution authority if and to the extent such amounts
have been reduced, converted, cancelled, amended or altered as a result of such exercise.

 

(c)Neither
a reduction or cancellation, in part or in full of the Amounts Due on, the conversion thereof into another security or obligation
of the Company or another person, as a result of the exercise of the Spanish Bail-in Power by the relevant resolution authority
with respect to the Company, nor the exercise of the Spanish Bail-in Power by the relevant resolution authority with respect to
the Contingent Convertible Capital Securities of any series will be an Enforcement Event.

 

(d)Upon
the exercise of the Spanish Bail-in Power by the relevant resolution authority with respect to the Contingent Convertible Capital
Securities of any series, the Company will provide a written notice to the holders of the Contingent Convertible Capital Securities
of such series through DTC as soon as practicable regarding such exercise of the Spanish Bail-in Power. The Company will also
deliver a copy of such notice to the Trustee for information purposes.

 

(e)By
its acquisition of the Contingent Convertible Capital Securities of any series, each Holder of the Contingent Convertible Capital
Securities of such series, (which, for the purposes of this Section 14.01, includes each holder of a beneficial interest in the
Contingent Convertible Capital Securities of such series), to the extent permitted by the Trust Indenture Act, will waive any
and all claims, in law and/or in equity, against the Trustee for, agree not to initiate a suit against the trustee in respect
of, and agree 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 Spanish Bail-in Power by the relevant resolution authority with respect to the Contingent
Convertible Capital Securities of such series.

 

(f)Additionally,
by its acquisition of the Contingent Convertible Capital Securities of any series, each Holder of the Contingent Convertible Capital
Securities of such series acknowledges and agrees that, upon the exercise of the Spanish Bail-in Power by the relevant resolution
authority:

 

(i)the Trustee will not be
required to take any further directions from the Holders of the Contingent Convertible Capital Securities of such series with respect
to any portion of the Contingent Convertible Capital Securities of such series that are written-down, converted to equity and/or
cancelled under the Contingent Convertible Capital Securities Indenture, which authorizes Holders of a majority in aggregate outstanding
Liquidation Preference of the outstanding Contingent Convertible Capital Securities of such series to direct certain actions relating
to the Contingent Convertible Capital Securities of such series; and

 

(ii)the Contingent Convertible
Capital Securities Indenture will not impose any duties upon the Trustee whatsoever with respect to the exercise of the Spanish
Bail-in Power by the relevant resolution authority.

 

provided, however, that notwithstanding
the exercise of the Spanish Bail-in Power by the relevant resolution authority, so long as the Contingent Convertible Capital
Securities of any series remain outstanding, there will at all times be a Trustee for this

 

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Contingent Convertible Capital Securities
of such series in accordance with the Contingent Convertible Capital Securities Indenture, and the resignation and/or removal of
the Trustee and the appointment of a successor Trustee will continue to be governed by the Contingent Convertible Capital Securities
Indenture, including to the extent no additional supplemental indenture or amendment is agreed upon in the event the Contingent
Convertible Capital Securities of such series remain outstanding following the completion of the exercise of the Spanish Bail-in
Power.

 

(g)By
its acquisition of the Contingent Convertible Capital Securities of any series, each holder of the Contingent Convertible Capital
Securities of such series acknowledges and agrees that neither a cancellation or deemed cancellation of the Liquidation Preference
or Distributions (in each case, in whole or in part), nor the exercise of the Spanish Bail-in Power by the relevant resolution
authority with respect to the Contingent Convertible Capital Securities of such series 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.

  

(h)By
purchasing the Contingent Convertible Capital Securities of any series, each Holder (including each beneficial owner) of the Contingent
Convertible Capital Securities of such series shall be deemed to have authorized, directed and requested DTC and any direct participant
in DTC or other intermediary through which it holds Contingent Convertible Capital Securities of such series to take any and all
necessary action, if required, to implement the exercise of the Spanish Bail-in Power with respect to the Contingent Convertible
Capital Securities of such series as it may be imposed, without any further action or direction on the part of such Holder.

 

Section 14.02.Agreement and Acknowledgement
with Respect to the Exercise of Resolution Tools.

 

(a)Notwithstanding
any other term of the Contingent Convertible Capital Securities of any series or any other agreements, arrangements, or
understandings between the Company and any Holder of the Contingent Convertible Capital Securities of any series, by its
acquisition of the Contingent Convertible Capital Securities of any series, each Holder (which, for the purposes of this
subsection, includes each holder of a beneficial interest in the Contingent Convertible Capital Securities of any
series) acknowledges, accepts, consents and agrees to be bound by the effect of the exercise of any resolution tools
(including but not limited to the sale of business tool, the bridge institution tool and the asset separation tool) by the
relevant resolution authority in compliance with, any laws, regulations, rules or requirements in effect in the Kingdom of
Spain, relating to (i) the transposition of BRRD, including but not limited to Law 11/2015, (ii) the SRM Regulation and
(iii) the instruments, rules and standards created thereunder.

  

(b)By
its acquisition of the Contingent Convertible Capital Securities of any series, each Holder of the Contingent Convertible Capital
Securities of such series, (which, for the purposes of this subsection, includes each holder of a beneficial interest in the Contingent
Convertible Capital Securities of such series), to the extent permitted by

 

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the Trust Indenture Act, will waive any and
all claims, in law and/or in equity, against the Trustee for,  agree not to initiate a suit against the Trustee in respect
of, and  agree 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 any resolution power by the relevant resolution authority.

 

(c)Additionally, by its acquisition of the Contingent Convertible Capital Securities of any series, each Holder of the Contingent
Convertible Capital Securities of such series acknowledges and agrees that, upon the exercise of any resolution power by the relevant
resolution authority the Contingent Convertible Capital Securities Indenture will not impose any duties upon the Trustee whatsoever
with respect to the exercise of any resolution tool by the relevant resolution authority (including no duty whatsoever to take
any directions from the Holders of the Contingent Convertible Capital Securities of such series), provided, however, that notwithstanding
the exercise of any resolution tool by the relevant resolution authority, so long as the Contingent Convertible Capital Securities
of any series remain outstanding, there will at all times be a Trustee for the Contingent Convertible Capital Securities of such
series in accordance with this Contingent Convertible Capital Securities Indenture, and the resignation and/or removal of the
Trustee and the appointment of a successor Trustee will continue to be governed by the Contingent Convertible Capital Securities
Indenture, including to the extent no additional supplemental indenture or amendment is agreed upon in the event the Contingent
Convertible Capital Securities of such series remain outstanding following the completion of the exercise of the resolution tool.

 

(d)By
its acquisition of the Contingent Convertible Capital Securities of any series, each Holder (including each beneficial owner) of
the Contingent Convertible Capital Securities of such series shall be deemed to have authorized, directed and requested DTC and
any direct participant in DTC or other intermediary through which it holds the Contingent Convertible Capital Securities of such
series to take any and all necessary action, if required, to implement the exercise of any resolution tool with respect to the
securities of such series as it may be imposed, without any further action or direction on the part of such Holder.

 

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

 

    112 

     

    

IN WITNESS WHEREOF, the Company and the
Trustee have caused this Contingent Convertible Capital Securities Indenture to be duly executed, all as of the day and year first
above written.

 

	 	BANCO SANTANDER, S.A.
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 	 

	 	THE BANK OF NEW YORK MELLON, LONDON BRANCH, AS TRUSTEE
	 	 
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

     

     

    

appendix
1: Procedures for Compliance with Spanish Tax Legislation

 

Information Procedures and Certification
Obligations of the Trustee or Paying Agent in respect of payments under the Contingent Convertible Capital Securities

 

		1.	Delivery of the Payment Information Certificate: In connection with each payment of income
under the Contingent Convertible Capital Securities, the Trustee or Paying Agent shall deliver to the Company by the close of business
on the business day immediately preceding the day on which such payment is made a duly completed an executed Payment Information
Certificate substantially in the form set forth in Exhibit I hereto (Form of Payment Information Certificate). Such form
may be delivered initially by email, in pdf form, or by fax, provided that the original is delivered by the end of the following
month.

 

If the Payment Information Certificate
is delivered by the Trustee or Paying Agent in a timely manner to the Company, the relevant income payment will be made free and
clear of Spanish withholding tax.

 

The Trustee or Paying Agent shall
have no duty or responsibility to comply with Spanish tax laws arising out of this Contingent Convertible Capital Securities Indenture,
and may request and rely conclusively upon any instructions from the Company in respect of any action necessary or required to
be taken by the Trustee or Paying Agent pursuant to this Appendix 1; provided, however, that in no event shall
the Trustee or Paying Agent be required to expend or risk its own funds in the performance of any of its duties pursuant to this
Appendix 1, or be obligated to take any legal or other action which might in its judgment involve or cause it to incur any expense
or liability unless it shall have been furnished with acceptable indemnification.

 

The Company agrees to instruct
the Trustee or Paying Agent in writing with respect to any certifications that may be required under Spanish law, and the Trustee
or Paying Agent acknowledges that this Appendix 1 shall constitute an instruction in this regard, unless otherwise instructed in
writing by the Company.

 

		2.	Failure to deliver the Payment Information Certificate: In the event that the Trustee or
Paying Agent fails or for any reason is unable to deliver a timely, duly completed Payment Information Certificate as described
above to the Company in respect of a payment of income under the Contingent Convertible Capital Securities, the Trustee or Paying
Agent shall withhold Spanish income tax on behalf of the Company from the relevant payment at the then-applicable rate (currently
19.5%, and 19% as of January 1, 2016 onwards).

 

		3.	If, after the relevant payment date but before the 10th day of the month immediately following
the relevant payment date the Trustee or Paying Agent provides the duly completed Payment Information Certificate to the Company,
then the Company shall instruct the Trustee or Paying Agent to immediately

 

     

     

    

transfer
the 19.5% (19% as of January 1, 2016 onwards) withheld in respect of the relevant payment pursuant to paragraph ‎0
above by way of reimbursement of the amounts withheld on the relevant payment date and completion of the corresponding income payment
in respect of payments under the Contingent Convertible Capital Securities.

 

		4.	If the Trustee or Paying Agent fails or for any reason is unable to submit a duly completed and
executed Payment Information Certificate to the Company by the 10th day of the month immediately following the relevant payment
date, the Trustee or Paying Agent shall immediately return (but in any event no later than the 10th day of the month immediately
following the relevant payment date) to the Company any remaining amount of the 19.5% (19% as of January 1, 2016 onwards) withheld
in respect of the relevant payment, and investors will have to apply directly to the Spanish tax authorities for any refund to
which they may be entitled.

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