Document:

EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 
 CITIZENS
FINANCIAL GROUP, INC. 
 Issuer 

and 
 THE BANK OF NEW YORK MELLON

 Trustee 
  

 
 NINTH
SUPPLEMENTAL INDENTURE 
 Dated as of December 3, 2015 

to 
 SUBORDINATED INDENTURE 

Dated as of September 28, 2012 

$750,000,000 Principal Amount 4.300% Subordinated Notes due 2025 

 TABLE OF CONTENTS 

 

					
	 	  	PAGE	 
	 ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	 	1	  
		
	 Section 101 Relation to Base Indenture.
	  	 	1	  
		
	 Section 102 Incorporation by Reference of Trust Indenture Act.
	  	 	2	  
		
	 Section 103 Trust Indenture Act to Control.
	  	 	2	  
		
	 Section 104 Definitions.
	  	 	2	  
		
	 ARTICLE II TERMS AND CONDITIONS OF THE SUBORDINATED NOTES
	  	 	4	  
		
	 Section 201 Form of Subordinated Notes.
	  	 	4	  
		
	 Section 202 Title and General Terms.
	  	 	4	  
		
	 Section 203 Redemption.
	  	 	6	  
		
	 Section 204 Reports and Other Information.
	  	 	7	  
		
	 Section 205 Transfer and Exchange.
	  	 	7	  
		
	 Section 206 Acceleration of Maturity.
	  	 	11	  
		
	 Section 207 Supplemental Indentures Without Consent of Holders.
	  	 	12	  
		
	 ARTICLE III MISCELLANEOUS
	  	 	12	  
		
	 Section 301 Effect of Headings.
	  	 	12	  
		
	 Section 302 Successors and Assigns.
	  	 	12	  
		
	 Section 303 Separability Clause.
	  	 	13	  
		
	 Section 304 Governing Law.
	  	 	13	  
		
	 Exhibit A
	  	 	A-1	  

  
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 CROSS-REFERENCE TABLE 

Reconciliation and tie showing the location in the Base Indenture, dated as of September 28, 2012, of the provisions inserted pursuant to
Sections 310 to 318(a), inclusive, of the Trust Indenture Act, unless otherwise indicated. This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Subordinated Indenture. 

 

					
	 Trust Indenture Act of 1939 Section
	  	 Indenture Section
	 
	 310  (a)(1)
	  	 	609	  
	         (a)(2)
	  	 	609	  
	         (a)(5)
	  	 	609	  
	         (b)
	  	 	608 and 610	  
	 312  (a)
	  	 	701	  
	 313  (a)
	  	 	703	  
	         (c)
	  	 	703	  
	 314  (a)
	  	 	1206	  
	         (c)(1)
	  	 	102	  
	         (c)(2)
	  	 	102	  
	         (e)
	  	 	102	  
	 315  (a)
	  	 	601	  
	         (b)
	  	 	602	  
	         (c)
	  	 	601	  
	         (d)
	  	 	601	  
	         (e)
	  	 	514	  
	 316  (a)(1)
	  	 	512	  
	         (b)
	  	 	507	  
	         (c)
	  	 	802	  
	 317  (a)
	  	 	503	  
	         (b)
	  	 	1203	  
	 318  (a)
	  	 	103	* 

  

	*	Refers to Section 103 of the Ninth Supplemental Indenture. 

  
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 NINTH SUPPLEMENTAL INDENTURE, dated as of December 3, 2015 (the “Ninth Supplemental
Indenture”), between Citizens Financial Group, Inc. (formerly RBS Citizens Financial Group, Inc.), a Delaware corporation (the “Company”), and The Bank of New York Mellon, a New York banking corporation, as Trustee
hereunder (the “Trustee”). 
 RECITALS OF THE COMPANY 

WHEREAS, the Company has heretofore executed and delivered to The Bank of New York Mellon, as trustee, a Subordinated Indenture, dated as of
September 28, 2012 (the “Base Indenture,” as the same may be amended or supplemented from time to time, including by this Ninth Supplemental Indenture, the “Subordinated Indenture”), providing for the issuance
from time to time of the Company’s subordinated debt securities (herein and therein called the “Subordinated Debt Securities”), to be issued in one or more series as provided in the Base Indenture; 

WHEREAS, Sections 201, 301 and 1101 of the Base Indenture permit the Company and the Trustee to enter into an indenture supplemental to the
Base Indenture to provide for the issuance of, and establish the form and terms of, additional series of Subordinated Debt Securities; 

WHEREAS, the Company has authorized the issuance of $750,000,000 in aggregate principal amount of its 4.300% Subordinated Notes due 2025 (the
“Subordinated Notes”); 
 WHEREAS, the Subordinated Notes will be established as a series of Subordinated Debt Securities
under the Subordinated Indenture; 
 WHEREAS, the Company has duly authorized the execution and delivery of this Ninth Supplemental
Indenture to establish the form and terms of the Subordinated Notes; and 
 WHEREAS, all things necessary have been done to make this Ninth
Supplemental Indenture a valid agreement of the Company, in accordance with its terms; 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 

For and in consideration of the premises and the purchase of the Subordinated Notes by the Holders thereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of the Subordinated Notes, as follows: 
 ARTICLE I 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 

Section 101 Relation to Base Indenture. 

This Ninth Supplemental Indenture constitutes a part of the Base Indenture (the provisions of which, as modified by this Ninth Supplemental
Indenture, shall apply to the Subordinated Notes) in respect of the Subordinated Notes but shall not modify, amend or otherwise affect the Base Indenture insofar as it relates to any other series of Subordinated Debt Securities or affects in any
manner the terms and conditions of the Subordinated Debt Securities of any other series. For the avoidance of doubt, the First through Seventh Supplemental Indentures to the Base Indenture shall not apply to the Subordinated Notes. 

 Section 102 Incorporation by Reference of Trust Indenture Act. 

The Subordinated Indenture is subject to the mandatory provisions of the Trust Indenture Act, which are incorporated by reference in and made
a part of the Subordinated Indenture. The following Trust Indenture Act terms have the following meanings: 
 “Indenture
Securities” shall mean the Subordinated Debt Securities. 
 “Indenture to Be Qualified” shall mean the
Subordinated Indenture. 
 “Indenture Trustee or Institutional Trustee” shall mean the Trustee. 

“Obligor” with reference to Indenture Securities shall mean the Company. 

All other terms in the Subordinated Indenture that are defined by the Trust Indenture Act, defined by it by reference to another statute or
defined by Commission rule have the meanings assigned to them by such definitions. 
 Section 103 Trust Indenture Act to Control.

 If any provision included in the Subordinated Indenture limits, qualifies or conflicts with another provision included in the
Subordinated Indenture which is required to be included in the Subordinated Indenture by the Trust Indenture Act, such required provision shall control. 

Section 104 Definitions. 

For all purposes of this Ninth Supplemental Indenture, the capitalized terms used herein that are defined in this Section 104 have the
respective meanings assigned hereto in this Section 104, and the capitalized terms used herein that are defined in the Base Indenture and not defined in this Section 104 have the respective meanings assigned thereto in the Base Indenture.
For all purposes of this Ninth Supplemental Indenture: 
 (1) the terms defined in this Article I have the meanings assigned
to them in this Article I, and include the plural as well as the singular; 
 (2) all accounting terms not otherwise defined
herein have the meanings assigned to them in accordance with U.S. GAAP, and, except as otherwise herein expressly provided, the term “U.S. GAAP” with respect to any computation required or permitted hereunder shall mean U.S. GAAP at
the date of such computation; and 
 (3) the words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Ninth Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision. 

“Additional Notes” shall have the meaning set forth in Section 202(j). 

  
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 “Applicable Procedures” means, with respect to any transfer or exchange of or
for beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange. 

“Base Indenture” has the meaning set forth in the recitals of the Company of this Ninth Supplemental Indenture. 

“Clearstream” means Clearstream Banking, Société Anonyme and its successors. 

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

“Definitive Note” means a certificated Subordinated Note registered in the name of the Holder thereof and issued in
accordance with Section 205 hereof, substantially in the form of Exhibit A, except that such Subordinated Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of Interests in the Global Note”
attached thereto. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear system, and its successors. 

“Global Note Legend” means the legend set forth in Section 205(f) hereof, which is required to be placed on all Global
Notes issued under the Subordinated Indenture. 
 “Global Notes” shall have the meaning set forth in Section 201(b). 

“Indirect Participant” means a Person who holds a beneficial interest in a Global Note through a Participant. 

“Issue Date” means December 3, 2015. 

“Participant” means, with respect to the Depositary, a Person who has an account with the Depositary (and, with respect to
DTC, shall include Euroclear and Clearstream). 
 “Person” means any individual, corporation, partnership, joint venture,
association, joint stock company, trust, estate, unincorporated organization or government or any agency or political subdivision thereof. 

“Redemption Price” has the meaning set forth in Section 203(b) of this Ninth Supplemental Indenture. 

“Securities Act” means the Securities Act of 1933, as amended, and unless context requires otherwise, the rules and
regulations of the Commission promulgated thereunder. 

  
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 “Ninth Supplemental Indenture” has the meaning set forth in the first paragraph
of this instrument. 
 “Subordinated Indenture” has the meaning set forth in the recitals of the Company of this Ninth
Supplemental Indenture. 
 “Subordinated Notes” has the meaning set forth in the recitals of the Company of this Ninth
Supplemental Indenture. 
 “Trustee” means the Person named as the “Trustee” in the first paragraph of
this instrument until a successor Person shall have become such pursuant to the applicable provisions of the Subordinated Indenture, and thereafter “Trustee” shall mean such successor Person. 

ARTICLE II 
 TERMS AND CONDITIONS
OF THE SUBORDINATED NOTES 
 Section 201 Form of Subordinated Notes. 

(a) General. The Subordinated Notes and the Trustee’s certificate of authentication shall be substantially in the form set forth
in Exhibit A, which is incorporated in and forms a part of the Subordinated Indenture, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Subordinated Indenture and may
have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be determined, consistent with the Subordinated Indenture, by the officers of the Company executing such Subordinated Notes, as
evidenced by their execution of such Subordinated Notes. 
 (b) Global Notes. The Subordinated Notes shall be issued initially in the
form of one or more permanent Global Securities (each, a “Global Note”). Global Notes shall be substantially in the form of Exhibit A, including the Global Note Legend thereon and the “Schedule of Exchanges of Interests
in the Global Note” attached thereto. Subordinated Notes issued in definitive form shall be substantially in the form of Exhibit A, but without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in
the Global Note” attached thereto. Each Global Note shall represent such of the Outstanding Subordinated Notes as shall be specified in the “Schedule of Exchanges of Interests in the Global Note” attached thereto and each shall
provide that it shall represent up to the aggregate principal amount of Subordinated Notes from time to time endorsed thereon and that the aggregate principal amount of Outstanding Subordinated Notes represented thereby may from time to time be
reduced or increased, as applicable, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Subordinated Notes represented thereby
shall be made by the Trustee, in accordance with instructions given by the Holder thereof as required by Section 205 hereof. 
 Section
202 Title and General Terms. 
 Pursuant to Sections 201 and 301 of the Base Indenture, there is hereby established a series of
Subordinated Debt Securities, the terms of which shall be as follows: 

  
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 (a) Designation. The Subordinated Notes shall be known and designated as the “4.300%
Subordinated Notes due 2025.” 
 (b) Aggregate Principal Amount. The aggregate principal amount of the Subordinated Notes that
may be authenticated and delivered under this Ninth Supplemental Indenture is limited to $750,000,000, as increased by the amount of any Additional Notes issued pursuant to Section 202(j) of this Ninth Supplemental Indenture, except for Subordinated
Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Subordinated Notes issued pursuant to Section 304, 305, 306, 1106 or 1307 of the Base Indenture or Article II of this Ninth
Supplemental Indenture. 
 (c) Maturity, Interest and Place of Payment. The Stated Maturity of the Subordinated Notes shall be
December 3, 2025, and the Subordinated Notes shall bear interest and have such other terms as are set forth in the form of Note attached as Exhibit A hereto. The Place of Payment with respect to the Subordinated Notes shall be The City
of New York. 
 (d) No Additional Amounts. In the event that any payment on the Subordinated Notes by the Company or any Paying Agent
is subject to withholding of United States federal income tax or other tax or assessment (as a result of a change in law or otherwise), neither the Company nor any Paying Agent shall pay additional amounts to the Holders of the Subordinated Notes.

 (e) No Sinking Fund or Redemption at Option of Holders. The Company shall have no obligation to redeem or purchase the
Subordinated Notes pursuant to any sinking fund or analogous provision, or at the option of a Holder thereof. The Subordinated Notes shall be redeemable at the election of the Company from time to time at the times and at the prices specified in
Section 203 of this Ninth Supplemental Indenture. 
 (f) Defeasance. 

(i) The Subordinated Notes shall be subject to the defeasance provisions of Article XIV of the Base Indenture beginning no
earlier than on the fifth anniversary of the Issue Date; provided that, with respect to the Subordinated Notes, Section 1402(b)(4) of the Base Indenture shall be replaced in its entirety with the following: 

“(4) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that beneficial owners of the Subordinated Debt
Securities of such series will not recognize income, gain or loss for Federal income tax purposes as a result of the Company’s exercise of its option under this Section and will be subject to Federal income tax on the same amounts and in the
same manner and at the same times as would have been the case if such option had not been exercised (which opinion, if the Company shall have exercised its option under Section 1402(b)(x) of the Base Indenture, shall be (A) accompanied by
and based upon a ruling to that effect received from or published by the Internal Revenue Service or (B) based upon a change in law after the date of this Ninth Supplemental Indenture); and” 

  
 5 

 (ii) Any defeasance of the Subordinated Notes pursuant to Article XIV of the Base
Indenture shall be subject to the Company obtaining the prior approval of the Federal Reserve and any additional requirements that the Federal Reserve may impose with respect to defeasance of the Subordinated Notes. Notwithstanding the foregoing,
if, due to a change in law, regulation or policy subsequent to the Issue Date, the Federal Reserve does not require that defeasance of instruments be subject to Federal Reserve approval in order for the instrument to be accorded Tier 2 Capital
treatment, then no such approval of the Federal Reserve will be required for such defeasance. 
 (g) Repurchases. The Company may
from time to time repurchase the Subordinated Notes in open market purchases or negotiated transactions without prior notice to Holders or beneficial owners of Subordinated Notes. Any such repurchases of the Subordinated Notes shall be subject to
the Company obtaining the prior approval of the Federal Reserve and any additional requirements that the Federal Reserve may impose with respect to the repurchase of the Subordinated Notes. Notwithstanding the foregoing, if, due to a change in law,
regulation or policy subsequent to the Issue Date, the Federal Reserve does not require that repurchases of instruments be subject to Federal Reserve approval in order for the instrument to be accorded Tier 2 Capital treatment, then no such approval
of the Federal Reserve will be required for such repurchases. 
 (h) Denominations. The Subordinated Notes shall be issuable only in
fully registered form and only in denominations of $2,000 and any integral multiples of $1,000 in excess thereof. 
 (i) Authentication
and Delivery. The Subordinated Notes shall be executed, authenticated, delivered and dated in accordance with Section 303 of the Base Indenture. 

(j) Additional Notes. The Company may, from time to time, without the consent of the Holders of the Subordinated Notes, reopen the
series constituting the Subordinated Notes and issue additional Subordinated Notes (the “Additional Notes”) having the same ranking and the same interest rate, maturity and other terms as the Subordinated Notes, except for the
public offering price, the issue date and, if applicable, the initial interest payment date and initial interest accrual date. Any such Additional Notes, together with the initial Subordinated Notes, shall constitute a single series of Subordinated
Debt Securities under the Base Indenture; provided that if the Additional Notes are not fungible for U.S. federal income tax and U.S. federal securities law purposes with the initial Subordinated Notes, the Additional Notes shall be issued
under a separate CUSIP number. 
 (k) Events of Default and Default. The only Events of Default and the only Defaults applicable to
the Subordinated Notes are as set forth in Article V of the Base Indenture. 
 Section 203 Redemption. 

The Subordinated Notes shall not be redeemable at the Company’s option except as set forth in this Section 203: 

  
 6 

 (a) Optional Redemption. The Company may, at its option, redeem the Subordinated Notes in
whole or in part at any time and from time to time on or after November 3, 2025. Any such redemption of the Subordinated Notes shall be subject to the Company obtaining the prior approval of the Federal Reserve and any additional requirements
that the Federal Reserve may impose with respect to the redemption of the Subordinated Notes. Notwithstanding the foregoing, if, due to a change in law, regulation or policy subsequent to the Issue Date, the Federal Reserve does not require that
redemption of instruments be subject to Federal Reserve approval in order for the instrument to be accorded Tier 2 Capital treatment, then no such approval of the Federal Reserve will be required for such redemption. 

(b) Redemption Price. In the case of any redemption of the Subordinated Notes, the “Redemption Price” shall be equal
to 100% of the Outstanding principal amount of the Subordinated Notes to be redeemed together with any accrued and unpaid interest to, but excluding, the Redemption Date. If the Redemption Price in respect of the Subordinated Notes is not paid on
the Redemption Date, interest on the outstanding principal amount of the Subordinated Notes will continue to accrue until the Redemption Price is actually paid or set aside for payment. 

(c) Redemption Procedures. Except as modified by this Section 203, any redemption of the Subordinated Notes under this
Section 203 is subject to the terms and conditions of Article XIII of the Base Indenture. 
 Section 204 Reports and Other
Information. 
 Section 1206 of the Base Indenture shall be replaced in its entirety with the following: 

“So long as Subordinated Notes remain Outstanding, the Company shall file with, or make available to, 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 that the Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange or pursuant to Section 314 of the Trust Indenture Act; provided that any document publicly available on the Commission’s Electronic Data Gathering, Analysis and Retrieval system shall satisfy the
requirements hereof if the Company provides the Trustee with written notice when any such document is filed with the Commission” 

Section 205 Transfer and Exchange. 

(a) Transfer and Exchange of Global Notes. Except as otherwise set forth in this Section 205, a Global Note may be transferred, in
whole and not in part, only to another nominee of the Depositary or to a successor thereto or a nominee of such successor thereto. A beneficial interest in a Global Note may not be exchanged for a Definitive Note of the same series unless
(i) the Depositary (1) notifies the Company that it is unwilling or unable to continue as Depositary for such Global Note or (2) has ceased to be a clearing agency registered under the Exchange Act, and, in either case, a successor
Depositary is not appointed by the Company within 90 days of such notice or becoming aware that the Depositary is no longer so 

  
 7 

 
registered, (ii) the Company, at its option, notifies the Trustee in writing that it elects to cause the issuance of Definitive Notes or (iii) upon the request of the Depositary if
there shall have occurred and be continuing an Event of Default with respect to the Subordinated Notes. Upon the occurrence of any of the preceding events in clause (i), (ii) or (iii) above, Definitive Notes delivered in exchange for any
Global Note of the same series or beneficial interests therein will be registered in the names, and issued in any approved denominations, requested by or on behalf of the Depositary (in accordance with its customary procedures). Global Notes also
may be exchanged or replaced, in whole or in part, as provided in Article III of the Base Indenture. Every Subordinated Note authenticated and delivered in exchange for, or in lieu of, a Global Note of the same series or any portion thereof,
pursuant to this Section 205 or Article III of the Base Indenture, shall be authenticated and delivered in the form of, and shall be, a Global Note, except for Definitive Notes issued subsequent to any of the preceding events in clause (i),
(ii) or (iii) above and pursuant to Section 204(c) hereof. A Global Note may not be exchanged for another Subordinated Note other than as provided in this (a)Section 205(a). 

(b) Transfers and Exchanges of Beneficial Interests in Global Notes. The transfer and exchange of beneficial interests in the Global
Notes shall be effected through the Depositary in accordance with the provisions of the Subordinated Indenture and the Applicable Procedures. In connection with all transfers and exchanges of beneficial interests, the transferor of such beneficial
interest must deliver to the Security Registrar either (1) (A) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause
to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged and (B) instructions given in accordance with the Applicable Procedures containing information regarding
the Participant account to be credited with such increase, or (2) (A) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to cause to
be issued a Definitive Note of the same series in an amount equal to the beneficial interest to be transferred or exchanged and (B) instructions given by the Depositary to the Security Registrar containing information regarding the Person in
whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in this subclause (2)(A); provided that in no event shall Definitive Notes be issued other than upon the occurrence of any of the events in
clauses (i), (ii) or (iii) of Section 205(a). Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in the Subordinated Indenture and the Subordinated Notes, the
Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 205(g) hereof. 
 (c) Transfer or
Exchange of Beneficial Interests for Definitive Notes. If any holder of a beneficial interest in a Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Definitive Note, then, upon the occurrence of any of the events in clauses (i), (ii) or (iii) of Section 205(a) hereof and satisfaction of the conditions set forth in Section 205(b)(ii) hereof,
the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 205(g) hereof, and the Company shall execute and the Trustee shall authenticate and mail to the Person designated
in the instructions a Definitive Note in the applicable principal amount. Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 205(c) shall be registered in such name or names and

  
 8 

 
in such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Security Registrar through instructions from or through the Depositary and the
Participant or Indirect Participant. The Trustee shall mail such Definitive Notes to the Persons in whose names such Subordinated Notes are so registered. 

(d) Transfer and Exchange of Definitive Notes for Beneficial Interests in Global Notes. A Holder of a Definitive Note may exchange such
Subordinated Note for a beneficial interest in a Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Global Note at any time. Upon receipt of a request for such an exchange
or transfer, the Trustee shall cancel the applicable Definitive Note and authenticate or, if already issued, increase or cause to be increased the aggregate principal amount of the applicable Global Note. If any such exchange or transfer from a
Definitive Note to a beneficial interest is effected at a time when the applicable Global Note has not yet been issued, the Company shall issue and, upon receipt of a Company Order for the authentication of one or more Global Notes in accordance
with Section 303 of the Base Indenture, the Trustee shall authenticate one or more Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so exchanged or transferred. 

(e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder of Definitive Notes and such Holder’s
compliance with the provisions of this Section 205(e), the Security Registrar shall register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to
the Security Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Security Registrar duly executed by such Holder or by its attorney, duly authorized in writing. 

(f) Legend. Each Global Note shall bear a legend in substantially the following form (with appropriate changes in the last sentence if
DTC is not the Depositary): 
 “THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE SUBORDINATED INDENTURE GOVERNING THIS SUBORDINATED NOTE)
OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 205(g) OF
THE NINTH SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 205(a) OF THE NINTH SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
SECTION 205(g) OF THE NINTH SUPPLEMENTAL INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SUBORDINATED NOTES IN
DEFINITIVE FORM, THIS SUBORDINATED NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A 

  
 9 

 
NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”)
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.” 
 (g) Cancellation and/or Adjustment of Global Notes. At such time as all
beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or cancelled in whole and not in part, each such Global Note shall be returned to or retained and
cancelled by the Trustee in accordance with Section 308 of the Base Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the
form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such
other Global Note shall be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase. 

(h) General Provisions Relating to Transfers and Exchanges. 

(i) To permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Global
Notes and Definitive Notes upon receipt of a Company Order for authentication thereof in accordance with Section 303 of the Base Indenture or at the Security Registrar’s request. 

(ii) The Company shall not be required (1) to issue, to register the transfer of or to exchange any Subordinated Notes
during a period beginning at the opening of business 15 days before the day of any selection of Subordinated Notes for redemption under Section 203 hereof and ending at the close of business on the day of selection or (2) to register the
transfer of or to exchange a Subordinated Note between a Record Date (as defined in the Subordinated Notes) with respect to such Subordinated Note and the next succeeding Interest Payment Date with respect to such Subordinated Note. 

(iii) Neither the Security Registrar nor the Company shall be required to register the transfer of or exchange any
Subordinated Note selected for redemption in whole or in part. 

  
 10 

 (iv) All Global Notes and Definitive Notes issued upon any registration of
transfer or exchange of Global Notes or Definitive Notes shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under the Subordinated Indenture, as the Global Notes or Definitive Notes surrendered
upon such registration of transfer or exchange. 
 (v) Prior to due presentment for the registration of a transfer of any
Subordinated Note, the Trustee, any Paying Agent and the Company may deem and treat the Person in whose name any Subordinated Note is registered as the absolute owner of such Subordinated Note for the purpose of receiving payment of principal of,
premium, if any, and interest on such Subordinated Notes and for all other purposes, and none of the Trustee, any Paying Agent or the Company shall be affected by notice to the contrary. 

(vi) Upon surrender for registration of transfer of any Subordinated Note at the office or agency of the Company designated
pursuant to Section 1202 of the Base Indenture, the Company shall execute, and the Trustee shall authenticate and mail, in the name of the designated transferee or transferees, one or more replacement Subordinated Notes of any authorized
denomination or denominations of a like aggregate principal amount. 
 (vii) At the option of the Holder, Subordinated Notes
may be exchanged for other Subordinated Notes of any authorized denomination or denominations of a like aggregate principal amount upon surrender of the Subordinated Notes to be exchanged at such office or agency. Whenever any Global Notes or
Definitive Notes are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and mail, the replacement Global Notes and Definitive Notes which the Holder making the exchange is entitled to in accordance with the
provisions of Section 303 of the Base Indenture. 
 (viii) All certifications, certificates and Opinions of Counsel
required to be submitted to the Security Registrar pursuant to this Section 205 to effect a registration of transfer or exchange may be submitted by facsimile or e-mail. 

(ix) Neither the Trustee nor any Paying Agent shall have any responsibility or liability for any actions taken or not taken by
the Depositary. 
 (x) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with
any restrictions on transfer imposed under the Subordinated Indenture or under applicable law with respect to any transfer of any interest in any Subordinated Note other than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly required by the terms of, the Subordinated Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof. 

Section 206 Acceleration of Maturity. 

  
 11 

 The first paragraph of Section 502 of the Base Indenture shall be replaced in its entirety
with the following: 
 “If an Event of Default with respect to Subordinated Debt Securities of any series at the time Outstanding
occurs, the principal of all outstanding Subordinated Debt Securities of such series, premium, if any, and any interest accrued thereon shall become due and payable immediately without any further action on the part of the Trustee or the Holders of
such series of Subordinated Debt Securities. Upon payment of such amounts, all obligations of the Company in respect of the payment of principal of and interest on the Subordinated Debt Securities of such series shall terminate.” 

Section 207 Supplemental Indentures Without Consent of Holders. 

Section 1101 of the Base Indenture is amended to: 

(i) Replace Section 1101(2) in its entirety with the following: 

“(2) to add to the covenants of the Company, 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 less than all such series, stating that such covenants are expressly being included solely for the benefit of such series), to surrender any right or power herein conferred upon the
Company, or to provide for guarantees of the Subordinated Notes; or” 
 (ii) Replace the period following “in any
material respect” in Section 1101(10) with “; or”; and 
 (iii) Add the following immediately after
Section 1101(10): 
 “(11) to change anything that does not materially adversely affect the interests of the
Holders of Outstanding Subordinated Debt Securities of any series; provided that solely with respect to this Section 1101(11), the Trustee shall be entitled to receive and may conclusively rely on an Officer’s Certificate from the
Company that any such modification, amendment or supplement does not materially adversely affect the interests of any Holder of Outstanding Subordinated Debt Securities of any series.” 

ARTICLE III 
 MISCELLANEOUS 

Section 301 Effect of Headings. 

The Article and Section headings herein are for convenience only and shall not affect the construction hereof. 

Section 302 Successors and Assigns. 

  
 12 

 All covenants and agreements in this Ninth Supplemental Indenture by the parties hereto shall
bind their respective successors and assigns and inure to the benefit of their permitted successors and assigns, whether so expressed or not. 

Section 303 Separability Clause. 

In case any provision in this Ninth Supplemental Indenture or in the Subordinated Notes 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 304
Governing Law. 
 This Ninth Supplemental Indenture and the Subordinated Notes shall be deemed to be contracts made and to be
performed entirely in the State of New York, and for all purposes shall be governed by and construed in accordance with the laws of said State without regard to the conflicts of law rules of said State. 

* * * * * 
 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. 

  
 13 

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

					
	CITIZENS FINANCIAL GROUP, INC.
		
	By:	 	 /s/ David Lindenauer

		 	Name:	 	David Lindenauer
		 	Title:	 	 EVP, Treasurer

	
	 THE BANK OF NEW YORK MELLON,
 as
Trustee

		
	By:	 	 /s/ Laurence J. O’Brien

		 	Name:	 	Laurence J. O’Brien
		 	Title:	 	 Vice President

 [Signature Page to the Ninth Supplemental Indenture] 

  
 14 

 EXHIBIT A 

CUSIP: 174610 AK1 
 ISIN: US174610AK19 

GLOBAL NOTE 

representing up to 

$[            ] 

4.300% Subordinated Notes due 2025 
  

			
	 No.
	 	[$            ]

 Citizens Financial Group, Inc., a Delaware corporation, promises to pay to ________ or registered assigns, the
principal sum [set forth on the Schedule of Exchanges of Interests in the Global Note attached hereto] [of _______ United States Dollars] on December 3, 2025. 

Interest Payment Dates: Beginning on June 3, 2016, June 3 and December 3 of each year 

Record Dates: May 19 and November 18 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE SUBORDINATED INDENTURE GOVERNING THIS SUBORDINATED NOTE) OR ITS NOMINEE IN
CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 205(g) OF THE NINTH
SUPPLEMENTAL INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 205(a) OF THE NINTH SUPPLEMENTAL INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
205(g) OF THE NINTH SUPPLEMENTAL INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SUBORDINATED NOTES IN
DEFINITIVE FORM, THIS SUBORDINATED NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”) TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 

  
 A-1 

 Additional provisions of this Subordinated Note are set forth on the other side of this
Subordinated Note. 

  
 C-2 

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

Dated: 
  

			
	CITIZENS FINANCIAL GROUP, INC.
		
	By:	 	 
	Name:	 	
	Title:	 	

  
 A-3 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Subordinated Notes referred to in the within-mentioned Subordinated Indenture: 

 

			
	 THE BANK OF NEW YORK MELLON,
 as
Trustee

		
	By:	 	 
	Name:	 	
	Title:	 	

 Dated: 

  
 A-4 

 [Back of Subordinated Note] 

4.300% Subordinated Notes due 2025 

Capitalized terms used herein shall have the meanings assigned to them in the Subordinated Indenture referred to below unless otherwise
indicated. 
 1. INTEREST. Citizens Financial Group, Inc. (formerly RBS Citizens Financial Group, Inc.), a Delaware corporation (the
“Company”), promises to pay interest on the principal amount of this Subordinated Note at a rate per annum of 4.300% from December 3, 2015 until maturity, computed on the basis of a 360-day year comprised of twelve 30-day months. The
Company will pay interest on this Subordinated Note (i) semi-annually in arrears on June 3 and December 3 of each year or, if any such day is not a Business Day, on the next succeeding Business Day (each, an “Interest Payment
Date”) to the Holder of record of this Subordinated Note on the immediately preceding May 19 and November 18 (each, a “Record Date”), in each case with respect to the next occurring Interest Payment Date. Interest on this
Subordinated Note will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from and including December 3, 2015; provided that the first Interest Payment Date shall be June 3, 2016.

 2. METHOD OF PAYMENT. The Company will pay interest on this Subordinated Note to the Person that is the registered Holder of this Subordinated
Note at the close of business on the Record Date (whether or not a Business Day) next preceding the Interest Payment Date, even if this Subordinated Note is cancelled after such Record Date and on or before such Interest Payment Date, except as
provided in Section 307 of the Base Indenture with respect to Defaulted Interest. The interest payment at maturity will be payable to the person to whom principal is payable. Payment of interest may be made by check mailed to the Holders at
their addresses set forth in the Security Register of Holders; provided that (a) all payments of principal, premium, if any, and interest on, Subordinated Notes represented by Global Notes registered in the name of or held by DTC or its
nominee will be made by wire transfer of immediately available funds to the accounts specified by the Holder or Holders thereof and (b) all payments of principal, premium, if any, and interest with respect to certificated Subordinated Notes
will be made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such effect designating
such account no later than 30 days immediately preceding the relevant due date for payment (or such other date as the Trustee may accept in its discretion). Such payment shall be in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts. 
 3. PAYING AGENT AND REGISTRAR. Initially, The Bank of New York Mellon,
the Trustee under the Subordinated Indenture, will act as Paying Agent and Security Registrar. The Company may change any Paying Agent or Security Registrar without notice to the Holders. The Company or any of its Subsidiaries may act in any such
capacity. 
 4. SUBORDINATED INDENTURE. The Company issued the Subordinated Notes under a Subordinated Indenture, dated as of September 28, 2012 (the
“Base Indenture”), as amended and supplemented by a Ninth Supplemental Indenture, dated as of December 3, 2015 (the “Ninth Supplemental Indenture,” and the Base Indenture as amended and by the Ninth Supplemental

  
 A-5 

 
Indenture, the “Subordinated Indenture”), each between the Company and the Trustee. This Subordinated Note is one of a duly authorized issue of Subordinated Debt Securities of the
Company designated as its “$750,000,000 4.300% Subordinated Notes due 2025”. To the extent any provision of this Subordinated Note conflicts with the express provisions of the Subordinated Indenture, the provisions of the Subordinated
Indenture shall govern and be controlling. 
 5. REDEMPTION. Except as described below, the Subordinated Notes shall not be redeemable at the Company’s
option: 
 (a) Optional Redemption. The Company may, at its option, redeem the Subordinated Notes in whole or in part at any time and
from time to time on or after November 3, 2025. 
 (b) Redemption Price. In the case of any redemption of the Subordinated
Notes, the redemption price shall be equal to 100% of the Outstanding principal amount of the Subordinated Notes to be redeemed together with any accrued and unpaid interest to, but excluding, the Redemption Date. If the Redemption Price in respect
of the Subordinated Notes is not paid on the Redemption Date, interest on the outstanding principal amount of the Subordinated Notes will continue to accrue until the Redemption Price is actually paid or set aside for payment. 

(c) Redemption Procedures. Except as modified by Section 203 of the Ninth Supplemental Indenture, any redemption of the
Subordinated Notes under Section 203 of the Ninth Supplemental Indenture is subject to the terms and conditions of Article XIII of the Base Indenture. 

6. MANDATORY REDEMPTION, SINKING FUND. The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the
Subordinated Notes. 
 7. DENOMINATIONS, TRANSFER, EXCHANGE. The Subordinated Notes are in registered form without coupons in denominations of $2,000 and
any integral multiples of $1,000 in excess thereof. The transfer of Subordinated Notes may be registered and Subordinated Notes may be exchanged as provided in the Subordinated Indenture. The Security Registrar and the Trustee may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Subordinated Indenture. The Company need not exchange or register the
transfer of any Subordinated Note or portion of a Subordinated Note selected for redemption. Also, the Company need not exchange of register the transfer of any Subordinated Notes for a period of 15 days before a selection of Subordinated Notes to
be redeemed. 
 8. PERSONS DEEMED OWNERS. The registered Holder of a Subordinated Note may be treated as its owner for all purposes. 

9. AMENDMENT, SUPPLEMENT AND WAIVER. The Subordinated Indenture or the Subordinated Notes may be amended or supplemented as provided in the Subordinated
Indenture. 

  
 A-6 

 10. DEFAULTS AND REMEDIES. The only Events of Default with respect to the Subordinated Notes are set forth in
Article V of the Base Indenture. If an Event of Default with respect to the Subordinated Notes occurs, the principal of all Outstanding Subordinated Notes, premium, if any, and any interest accrued thereon shall become due and payable immediately
without any further action on the part of the Trustee or the Holders. Holders may not enforce the Subordinated Indenture or the Subordinated Notes except as provided in the Subordinated Indenture. Subject to certain limitations, Holders of not less
than a majority in principal amount of the Outstanding Subordinated Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Subordinated Notes notice of any default under the Subordinated
Indenture (except a default relating to the payment of principal of, premium, if any, or interest on the Subordinated Notes) if it determines that withholding notice is in their interest. The Holders of not less than a majority in principal amount
of the Outstanding Subordinated Notes may on behalf of the Holders of all of the Subordinated Notes waive any past default or its consequences under the Subordinated Indenture, except a default in payment of the principal of, premium, if any, or
interest on, any of the Subordinated Notes. The Company is required to deliver to the Trustee annually a statement regarding compliance with the Subordinated Indenture, and the Company is required to give prompt written notice to the Trustee of any
insolvency, bankruptcy, receivership, conservatorship, reorganization, readjustment of debt, marshaling of assets and liabilities or similar proceedings or any liquidation, dissolution or winding-up or relating to the Company as a whole, whether
voluntary or involuntary, or of any default with respect to any Senior Indebtedness that would prevent the Trustee from making any payment in respect of the Subordinated Notes under Section 1501 of the Base Indenture. 

11. AUTHENTICATION. This Subordinated Note shall not be entitled to any benefit under the Subordinated Indenture or be valid or obligatory for any purpose
until authenticated by the manual signature of the Trustee. 
 12. GOVERNING LAW. THE SUBORDINATED INDENTURE AND THIS SUBORDINATED NOTE SHALL BE DEEMED TO
BE CONTRACTS MADE AND TO BE PERFORMED ENTIRELY IN THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE WITHOUT REGARD TO THE CONFLICTS OF LAW RULES OF SAID STATE. 

13. CUSIP NUMBERS AND ISIN. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers and ISINs to be printed on the Subordinated Notes and the Trustee may use CUSIP numbers and ISINs in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on
the Subordinated Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 

The Company will furnish to any Holder upon written request and without charge a copy of the Subordinated Indenture. Requests may be made to the Company at
the following address: 

  
 A-7 

 Citizens Financial Group, Inc. 

600 Washington Boulevard 

Stamford, CT 06901 
 Fax No.:
203-900-6758 
 Attention: Robin S. Elkowitz 

  
 A-8 

 ASSIGNMENT FORM 

To assign this Subordinated Note, fill in the form below: 

                          
                                         
                                         
                                         
                                         
                                         
                           

(Insert assignee’s legal name) 
  

                          
                                         
                                         
                                         
                                         
                                         
                           

(Insert assignee’s social security or tax I.D. no.) 
  

                          
                                         
                                         
                                         
                                         
                                         
                           
  

                          
                                         
                                         
                                         
                                         
                                         
                           
  

                          
                                         
                                         
                                         
                                         
                                         
                           
  

                          
                                         
                                         
                                         
                                         
                                         
                           

(Print or type assignee’s name, address and zip code) 

and irrevocably appoint __________________________________________________________ to transfer this Subordinated Note on the books of the Company. The agent
may substitute another to act for him. 
 Date: ______________________ 

 

			
	Your Signature:	 	 
	  
	 	(Please sign exactly as your name appears
		 	on the face of this Subordinated Note)

 Signature Guarantee*: _____________________________________________ 

* Participant in a recognized Signature Guarantee Medallion Program (or other signature 

guarantor acceptable to the Trustee). 

  
 A-9 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE* 

The initial outstanding principal amount of this Global Note is $[            ]. The following
exchanges of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global or Definitive Note for an interest in this Global Note, have been made: 

 

									
	 Date of

Exchange
	  	 Amount of

decrease in
 Principal

Amount of this
 Global Note
	  	 Amount of

increase in
 Principal

Amount of this
 Global Note
	  	 Principal

Amount of this
 Global Note

following such
decrease or

increase
	  	 Signature of

authorized
 officer of Trustee

or Custodian

  

 
  

*This schedule should be included only if the Subordinated Note is issued in global form. 

 

  
 A-10CONSULTING
AGREEMENT

 

THIS
AGREEMENT is made as of and effective the 16th Day of November, 2015.

 

BETWEEN:

 

PETROSONIC
ENERGY INC., a company incorporated under the laws of the State of Nevada and having an office at 914 Westwood
Blvd. Suite 545 Los Angeles, CA, 90024, USA (the “Company”)

 

AND:

 

ROCKREEF
ADVISORS, LLC., a company incorporated under the laws of the State of Delaware and having an office at 103 East
End Avenue, Shrewsbury, NJ 07702 (the “Consultant”)

 

WHEREAS:

 

	A.	The
    Company is a publicly owned/traded company whose common shares are listed on the “over-the-counter” market in
    the United States;
	 	 
	B.	The
    Company is engaged in the development and commercialization of enhanced sonic separation of materials, and related technologies,
    for application in the energy industry;
	 	 
	C.	The
    Consultant possesses certain management and industry expertise, knowledge and skill related to technology development and
    corporate development, which would be of a benefit to the Company;
	 	 
	D.	The
    Company wishes to engage the services of the Consultant to carry out and provide ongoing technical, business and advisory
    services to the Company, as further described herein to enable the Company to achieve its business objectives, subject to
    the terms and conditions set forth in this Agreement; and
	 	 
	E.	The
    Company and the Consultant have agreed to enter into this Agreement for the purpose of adhering to certain covenants.

 

NOW
THEREFORE in consideration of the terms and conditions herein contained, the parties covenant and agree as follows:

 

    	 	 	 

    	 	 - 2 -	 

    

 

Article
1

ENGAGEMENT

 

Engagement

 

1.1Subject
to the terms and conditions set out herein, the Company hereby engages the Consultant to carry out and provide ongoing, business
and advisory services to the Company as specifically provided on Schedule “A” hereto (the “Services”)
during the Term (as hereinafter defined) in connection with the ongoing business objectives of the Company and the Consultant
agrees to such engagement. The Company and the Consultant acknowledge and agree that Keith R. McGee, the President of the Consultant
(the “Principal”) will be the individual responsible for carrying out the Services on behalf of the Consultant.

 

Appointment
of Consultant as President and Chief Operating Officer

 

1.2The
parties intend that the Principal will act as an officer of the Company and hold the title of President and Chief Operating Officer.
Principal to agree to accept such appointment provided that;

 

	(a)	the
    Principal may resign as President and Chief Operating Officer at any time;
	 	 
	(b)	any
    actions of the Principal as President and Chief Operating Officer shall be considered to be Services provided by the Consultant;

 

Commitment

 

1.3The
Consultant shall during the Term, devote such time, skill, attention and ability to the business and affairs of the Company as
may be reasonably required to effectively perform the Services, it being understood that the Consultant is permitted to undertake
other mandates during the Term.

 

Standard
of Care

 

1.4The
Consultant shall at all times during the Term:

 

	(a)	have
    the skill, expertise and capabilities necessary to effectively perform the Services under this Agreement;
	 	 
	(b)	perform
    the Services hereunder in an effective, professional and business like manner; and
	 	 
	(c)	carry
    out the Services in compliance with applicable laws of the State of Delaware, and other applicable laws of which the Consultant
    is provided written notice from time to time by the Company.

 

    	 	 	 

    	 	 - 3 -	 

    

 

Responsibility
for Services

 

1.5The
Consultant shall report to and act at the direction of the Chief Executive Officer of the Company.

 

The
Consultant shall only have the duties and obligations to the Company that are expressly provided for herein, and no other duties
or obligations shall be implied.

 

Article
2

TERM

 

Term

 

2.1Subject
to the provisions on earlier termination of this Agreement contained herein, the term of this Agreement will be for a period of
two (2) years effective from November 15, 2015 (the “Effective Date”) and ending on the second anniversary
of the Effective Date (the “Term”).

 

Article
3

FEES

 

Consulting
Fee and Other Compensation

 

3.1The
following is a summary of the compensation to be paid by the Company to the Consultant for the Services:

 

	Options:	5,000,000
    shares (vesting as per Company plan);
	 	 
	Retainer:	The
Company will pay the Consultant fees of $6,000/month. Payment of the fees shall be made in respect of a month on the 15th
day of the applicable month.
	 	 
	 	The
    Company will also reimburse the Consultant for reasonable out of pocket expenses incurred by the Consultant in relation to
    the provision of the Services. Such expenses shall be approved beforehand by the CEO of the company. The Company agrees to
    make payment of reimbursement within three days upon receipt of supporting documentation in respect of expenses incurred
    and approved by the CEO of the company before hand.

 

    	 	 	 

    	 	 - 4 -	 

    

 

Article
4

RELATIONSHIP

 

Independent
Contractor

 

4.1The
Consultant shall perform the Services pursuant to this Agreement as an independent contractor, and nothing in this Agreement shall
be construed as creating an employment, agency, joint venture or partnership relationship between the parties. The Consultant
acknowledges that it is responsible for remitting its own taxes and any contributions required by law to be remitted and that
the Company shall have no responsibility in respect of any failure by the Consultant to properly remit such amounts when due and
the Consultant agrees to indemnify and save the Company harmless from and against any and all assessments, losses or penalties
actually incurred by the Company in this respect to taxation of fees.

 

Article
5

TERMINATION

 

Termination
For Material Breach

 

5.1Either
the Company or the Consultant (in this Article the “Non-Defaulting Party”) may terminate this Agreement at
any time upon written notice only if the other party, including in the case of the Consultant, the Principal, (in this Article
the “Defaulting Party”) commits a material breach of any of the terms and conditions of this Agreement and,
in the case of a material breach capable of remedy, fails to remedy the same within 10 days after receipt of a written notice
from the Non-Defaulting Party giving particulars of the breach and requiring it to be remedied.

 

Termination
For Other Reasons

 

5.2Either
the Company or the Consultant (being the Non-Defaulting Party) may also terminate this Agreement immediately upon the happening
of any of the following events:

 

	(a)	the
    other party, including in the case of the Consultant, the Principal, (being the Defaulting Party) commits an act of fraud,
    dishonesty, gross malfeasance or wilful neglect of duty which is reasonably likely to cause, directly or indirectly, material
    injury or damage to the Non-Defaulting Party or its reputation or goodwill or which resulted or was intended to result in
    direct or indirect gain to or personal enrichment of the Defaulting Party; provided, however, that such act shall not constitute
    cause unless:

 

	 	(i)	the
    Non-Defaulting Party gives the Defaulting Party written notice setting out with specificity the reasons why the Non-Defaulting
    Party reasonably believes the Defaulting Party’s conduct falls within the criteria set forth in this subsection 5.2(a);
	 	 	 
	 	(ii)	the
    Defaulting Party shall have been provided the opportunity, if such conduct is susceptible to cure, to cure the specific inappropriate
    conduct within 5 calendar days following the receipt of written notice from the Non-Defaulting Party;
	 	 	 
	 	(iii)	after
    such 5 day period, the Non-Defaulting Party reasonably determines that the act or conduct has not been cured; and
	 	 	 
	 	(iv)	the
    termination is evidenced by a written notice from the Non-Defaulting Party; or
	 	 	 
	 	(v)	the
    Defaulting Party as a judicial manager or receiver appointed of the whole or substantially the whole of its assets, becomes
    bankrupt or makes any arrangement, proposal or composition with its creditors, or a resolution is passed or an order is made
    for the winding up or liquidation of the Defaulting Party.

 

    	 	 	 

    	 	 - 5 -	 

    

 

Termination
by Company Due to Death or Disability

 

5.3The
Company may also terminate this Agreement immediately upon the happening of either of the following events:

 

	(a)	the
    death of the Principal;
	 	 
	(b)	in
    the event of illness, disease or mental or physical disability, the Principal becomes incapable of causing the Consultant
    to fulfill its duties under this Agreement for a period of three consecutive months or more; or
	 	 
	(c)	the
    Principal resigns as the President and Chief Operating Officer of the Company.

 

Termination
by Consultant and Company With Notice

 

5.4Both
the Consultant and Company may terminate this agreement on giving one month (1) prior notice in writing to each other of the effective
date of such termination, after the 4-month anniversary of the Effective Date.

 

No
Prejudice

 

5.5The
termination of this Agreement shall be without prejudice to any rights or obligations of any of the parties hereto which shall
have accrued prior to such termination and shall not destroy or diminish or affect any of the provisions of this Agreement which
expressly continue in force after such termination. For greater certainty, the Consultant shall be entitled to retain any shares
or options (referred to in section 3.1) which have vested as of the date of termination.

 

    	 	 	 

    	 	 - 6 -	 

    

 

Article
6

INDEMNIFICATION

 

Indemnification
of Consultant

 

6.1The
Company agrees to indemnify and hold harmless the Consultant and its directors, officers, employees and shareholders (including
the Principal) (collectively, the “Indemnified Parties”) against actual or threatened investigations, demands,
claims, actions, suits, proceedings, or any losses (other than consequential losses or loss of profit), damages, penalties, liabilities,
fines any and/or expenses (including any legal or other expenses reasonably incurred in responding to or defending any action,
claim or other proceeding in respect thereof) (collectively, the “Claims”) to which any of Indemnified Parties
may become subject, or which may be suffered or incurred by any of the Indemnified Parties, and directly or indirectly arising
as a result of the Consultant having been engaged pursuant to this Agreement (and for greater certainty, such indemnification
shall include any Claims to which the Principal of the Consultant may become subject, or which he may suffer or incur, as a consequence
of holding the office of President and Chief Operating Officer of the Company, and any actions of the Principal as President and
Chief Operating Officer shall be deemed to be Services provided by the Consultant pursuant to this Agreement); provided however
that this indemnity shall not extend to any Claims which any of the Indemnified Parties may become subject in connection with
any acts or omissions of the Consultant in breach of its respective duties, obligations and covenants under this Agreement or
resulting from the gross negligence, wilful misconduct, illegality or fraud of the Consultant.

 

The
indemnification of the Indemnified Parties shall survive the termination of this Agreement. The Company hereby appoints the Principal
as the trustee for the other Indemnified Parties of the covenants of indemnification of the Consultant provided in this Agreement
and the Principal accepts such appointment.

 

Limitations
of Liability

 

6.2Notwithstanding
anything contained herein: (a) any liability of the Consultant to the Company shall not exceed the amount of any fees paid to
the Consultant under this Agreement; (b) the Consultant shall have no liability to the Company for loss of profits, indirect or
consequential loss or damages or punitive damages; and (c) the obligations of the Consultant hereunder are the obligations of
the Consultant only, and the Principal and any other directors, officers, employees or shareholders of the Consultant from time
to time shall have no liability to the Company or otherwise under this Agreement.

 

    	 	 	 

    	 	 - 7 -	 

    

 

Article
7

GENERAL
PROVISIONS

 

Notices

 

7.1All
notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given
if delivered by hand, or sent by electronic communication and addressed as follows:

 

To
the Company:

 

Petrosonic
Energy Inc.

	 	Attention:
    Art Agolli	CEO

57
Valley Woods Way NW Calgary AB T3B6A5

e-mail:
art.agolli@gmail.com

 

To
the Consultant:

 

ROCKREEF
ADVISORS, LLC

 Attention: Keith McGee, President

103
East End Avenue, Shrewsbury NJ 07702

e-mail:
kmcgee@sustainablemc.com

 

or
to such other address, telecopier number or email address as may be given in writing by the parties and shall be deemed to have
been received, if delivered by hand, on the date of delivery and if telecopied to the telecopier numbers set out above, or sent
by email to the email addresses set out above, on the business day next following the date of transmission.

 

Entire
Agreement

 

7.2This
Agreement, together with the Indemnity Agreement (the “Indemnity Agreement”) between the Company and the Principal
dated the date hereof, represents the entire agreement between or involving the parties with respect to the subject matter hereof,
and cancels and supersedes any prior understandings and agreements between the parties with respect thereto. There are no representations,
warranties, terms, conditions, undertakings or collateral agreements, express, implied or statutory, between the parties other
than as expressly set forth herein.

 

No
Abrogation of Other Rights

 

7.3This
Agreement shall not operate to abrogate any other rights, in law or in equity, to which the Consultant or any other Indemnified
Parties may be entitled by operation of law or under any statute, by-law of the Company or agreement (including the Principal
as an Indemnified Party pursuant to the Indemnity Agreement), or otherwise.

 

    	 	 	 

    	 	 - 8 -	 

    

 

Time
of Essence

 

7.4Time
is hereby expressly made of the essence of this Agreement with respect to the performance by the parties of their respective obligations
under this Agreement.

 

Binding
Effect

 

7.5This
Agreement shall endure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators,
personal representatives, successors and permitted assigns.

 

Further
Assurances

 

7.6Each
of the parties hereto covenants and agrees to execute such further and other documents and instruments and do such further and
other things as may be reasonably required to implement and carry out the intent of this Agreement.

 

Assignment

 

7.7This
Agreement and the right and obligations hereunder may not be assigned in whole or in part by either the Company or the Consultant
without the prior written consent of the other.

 

Amendments

 

7.8No
amendment to this Agreement shall be valid unless it is evidenced by a signed agreement executed by all of the parties hereto.

 

Waiver

 

7.9Any
waiver by either party of a breach of provision herein shall not be construed as a waiver of any subsequent breach. Any waiver
of a breach of this Agreement must be in writing to be effective.

 

Governing
Law

 

7.10This
Agreement and all matters arising hereunder shall be governed by, construed and enforced in accordance with the laws of the Province
of Alberta, Canada.

 

7.11In
the event that any provision of this Agreement or any part thereof is found to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Currency

 

7.12All
sums of money to be paid or calculated pursuant to this Agreement shall be paid or calculated in the currency of the United States
- US Dollars - unless otherwise expressly stated.

 

    	 	 	 

    	 	 - 9 -	 

    

 

Captions
and Section Numbers

 

7.13The
headings and section references in this Agreement are for convenience of reference only and do not form a part of this Agreement
and are not intended to interpret, define or limit the scope, extent or intent of this Agreement or any provision thereof.

 

Counterparts

 

7.14This
Agreement may be executed as one article, and delivered by fax or PDF email attachment, and will be deemed to be an original in
digital form, and all of which will constitute one agreement, effective as of the reference date given above.

 

IN
WITNESS WHEREOF the parties hereto have executed this Agreement on the day and year first above written.

 

	PETROSONIC
    ENERGY INC.	 
	 	 
	Per:	 	 
	 	Authorized
    Signatory	 

 

	ROCKREEF
    ADVISORS, LLC
	 
	Per:	 	 
	 	Keith
    McGee

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