Document:

Exhibit 10.1

 

 

 

May 7, 2019

 

VARIABLE TENOR ASR

Stoneridge, Inc.

39675 MacKenzie Drive

Suite 400

Novi, Michigan 48377

 

Re: Accelerated Share Repurchase 

 

Ladies and Gentlemen:

 

This master confirmation
(this “Master Confirmation”), dated as of May 7, 2019 is intended to set forth certain terms and provisions
of certain Transactions (each, a “Transaction”) that may be entered into from time to time between Citibank,
N.A. (“Citibank”), and Stoneridge, Inc. (“Counterparty”). This Master Confirmation, taken
alone, is neither a commitment by either party to enter into any Transaction nor evidence of a Transaction. The additional terms
of any particular Transaction shall be set forth in a Supplemental Confirmation substantially in the form of Annex A hereto
(a “Supplemental Confirmation”), which shall reference this Master Confirmation and supplement, form a part
of, and be subject to this Master Confirmation. This Master Confirmation and each Supplemental Confirmation together shall constitute
a “Confirmation” as referred to in the Agreement specified below.

 

The definitions and
provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”), as published
by the International Swaps and Derivatives Association, Inc., are incorporated into this Master Confirmation. This Master Confirmation
and each Supplemental Confirmation evidence a complete binding agreement between Counterparty and Citibank as to the subject matter
and terms of each Transaction to which this Master Confirmation and such Supplemental Confirmation relate and shall supersede all
prior or contemporaneous written or oral communications with respect thereto.

 

This Master Confirmation
and each Supplemental Confirmation supplement, form a part of, and are subject to an agreement in the form of the ISDA 2002 Master
Agreement (the “Agreement”), as if Citibank and Counterparty had executed the Agreement on the date of this
Master Confirmation (but without any Schedule except for (i) the election of New York law (without reference to its choice
of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law) as the governing law and US Dollars
(“USD”) as the Termination Currency, (ii) the replacement of the number “30” in the fifth line
of Section 5(a)(ii)(1) with the number “5”, (iii) the replacement of the number “15” in the 16th line of
Section 5(a)(vii) with the number “5” and (iv) the election that the “Cross Default” provisions of Section
5(a)(vi) shall apply to Counterparty, with a “Threshold Amount” of USD 50 million (provided that (a) the phrase
“or becoming capable at such time of being declared” shall be deleted from clause (1) of such Section 5(a)(vi) of the
Agreement and (b) the following sentence shall be added to the end thereof: “Notwithstanding the foregoing, a default under
subsection (2) hereof shall not constitute an Event of Default if (i) the default was caused solely by error or omission of an
administrative or operational nature; (ii) funds were available to enable the party to make the payment when due; and (iii) the
payment is made within two Local Business Days of such party’s receipt of written notice of its failure to pay.”)).

 

The Transactions shall
be the sole Transactions under the Agreement. If there exists any ISDA Master Agreement between Citibank and Counterparty or any
confirmation or other agreement between Citibank and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist
between Citibank and Counterparty, then notwithstanding anything to the contrary in such ISDA Master Agreement, such confirmation
or agreement or any other agreement to which Citibank and Counterparty are parties, the Transactions shall not be considered Transactions
under, or otherwise governed by, such existing or deemed ISDA Master Agreement.

 

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All provisions contained
or incorporated by reference in the Agreement shall govern this Master Confirmation and each Supplemental Confirmation except as
expressly modified herein or in such Supplemental Confirmation.

 

If, in relation to
any Transaction to which this Master Confirmation and a Supplemental Confirmation relate, there is any inconsistency between the
Agreement, this Master Confirmation, such Supplemental Confirmation and the Equity Definitions, the following will prevail for
purposes of such Transaction in the order of precedence indicated: (i) such Supplemental Confirmation; (ii) this Master Confirmation;
(iii) the Equity Definitions; and (iv) the Agreement.

 

1.            Each
Transaction constitutes a Share Forward Transaction for the purposes of the Equity Definitions. Set forth below are the terms and
conditions that, together with the terms and conditions set forth in the Supplemental Confirmation relating to any Transaction,
shall govern such Transaction.

 

General
Terms:

 

	Trade Date:	For each Transaction, as set forth in the related Supplemental Confirmation.
	 	 
	Buyer:	Counterparty
	 	 
	Seller:	Citibank
	 	 
	Shares:	The Counterparty’s common shares, without par value (Ticker: SRI)
	 	 
	Exchange:	New York Stock Exchange
	 	 
	Related Exchange(s):	All Exchanges
	 	 
	Prepayment:	Applicable
	 	 
	Prepayment Amount:	For each Transaction, as set forth in the related Supplemental Confirmation.
	 	 
	Prepayment Date:	For each Transaction, as set forth in the related Supplemental Confirmation.

 

 Valuation:

 

	Reference Price:	Subject to the provisions of “Pricing Disruption” below, for each Transaction, the amount equal to the arithmetic average of the Rule 10b-18 VWAPs for all Exchange Business Days in the Pricing Period; provided that in the event Calculation Agent determines that a Disrupted Day during the Pricing Period is a Disrupted Day only in part, Calculation Agent shall determine the Reference Price based on an appropriately weighted average instead of such arithmetic average with respect to such Disrupted Day.
	 	 
	Reference Price 	 
	Adjustment Amount:	For each Transaction, as set forth in the related Supplemental Confirmation.

 

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	Rule 10b-18 VWAP:	Subject to the provisions of “Pricing Disruption” below, for any Exchange Business Day, the volume-weighted average price at which the Shares trade as determined by the Calculation Agent based on the composite transactions for the principal U.S. securities exchange on which such Shares are then listed on such Exchange Business Day, excluding (i) trades that do not settle regular way, (ii) opening trades, as defined on Bloomberg using the function “SRI <Equity> QR” and identifying trades marked as “OP” or “MO” in the “Condition” column, as determined by the Calculation Agent, (iii) trades that occur in the last ten minutes before the scheduled close of trading on the Exchange on such Exchange Business Day and ten minutes before the scheduled close of the primary trading in the market where the trade is effected, and (iv) trades on such Exchange Business Day that do not satisfy the requirements of Rule 10b-18(b)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as determined in good faith by Calculation Agent.  Counterparty acknowledges that Calculation Agent may refer to the Bloomberg Page “SRI <Equity> AQR SEC” (or any successor thereto), in its judgment, for such Exchange Business Day to determine the Rule 10b-18 VWAP; provided that the first trade in the Shares during the regular trading session on the Exchange (even if such trade is reported on such Bloomberg Page) shall be excluded from the Rule 10b-18 VWAP for such Exchange Business Day.
	 	 
	Pricing Period:	For any Transaction, the period commencing on the Pricing Period Commencement Date and ending on the Pricing Period Termination Date, subject to extension as provided herein.
	 	 
	Pricing Period	 
	Commencement Date	For any Transaction, the first Scheduled Trading Day following the Trade Date.  
	 	 
	Pricing Period	 
	Termination Date:	For any Transaction, the earlier of (a) the Scheduled Termination Date, or (b) any Exchange Business Day occurring on or following the First Optional Termination Date that Citibank designates as the Pricing Period Termination Date by delivering notice to Counterparty prior to 11:59 p.m. New York City time on the second Exchange Business Day immediately following such designated Exchange Business Day.
	 	 
	First Optional	 
	Termination Date:	For each Transaction, as set forth in the related Supplemental Confirmation.  
	 	 
	Scheduled 	 
	Termination Date:	For each Transaction, as set forth in the related Supplemental Confirmation; provided that the Scheduled Termination Date may be postponed by Calculation Agent as provided in “Pricing Disruption” below.
	 	 
	Pricing Disruption:	The definition of “Market Disruption Event” contained in Section 6.3(a) of the Equity Definitions is hereby amended by:

 

	 	(i) deleting the words “at any time during the one-hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be” and inserting the words “at any time on any Scheduled Trading Day during the Pricing Period or the Settlement Period” after the word “material” in the third line thereof; and  

 

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	 	(ii) replacing the words “or (iii) an Early Closure” in the fifth line thereof with the words “, (iii) an Early Closure or (iv) a Regulatory Disruption”.
	 	 
	 	Notwithstanding anything to the contrary in the Equity Definitions, if a Disrupted Day occurs (i) in the Pricing Period, the Calculation Agent may, in its good faith and commercially reasonable discretion, postpone the Scheduled Termination Date, or (ii) in the Settlement Period, if any, the Calculation Agent may extend the Settlement Period.  The Calculation Agent may also determine that (i) such Disrupted Day is a Disrupted Day in full, in which case the Rule 10b-18 VWAP for such Disrupted Day shall not be included for purposes of determining the Reference Price or the Settlement Price, as the case may be, or (ii) such Disrupted Day is a Disrupted Day only in part, in which case the Rule 10b-18 VWAP for such Disrupted Day shall be determined by the Calculation Agent based on Rule 10b-18 eligible transactions in the Shares on such Disrupted Day effected before the relevant Market Disruption Event occurred and/or after the relevant Market Disruption Event ended (in each case, as determined by the Calculation Agent), and the weighting of the Rule 10b-18 VWAP for the relevant Exchange Business Days during the Pricing Period or the Settlement Period, as the case may be, shall be adjusted in a commercially reasonable manner by the Calculation Agent for purposes of determining the Reference Price or the Settlement Price, as the case may be, with such adjustments based on the duration of any Market Disruption Event and the volume, historical trading patterns, price and volatility of the Shares.  Any Exchange Business Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be an Exchange Business Day; if a closure of the Exchange prior to its normal close of trading on any Exchange Business Day is scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in full.  
	 	 
	 	If a Disrupted Day
    occurs during the Pricing Period or the Settlement Period for any Transaction, as the case may be, and each of the nine immediately
    following Scheduled Trading Days is a Disrupted Day (a “Disruption Event”), then the Calculation Agent,
    in its good faith and commercially reasonable discretion, may (x) deem such ninth Scheduled Trading Day to be an Exchange
    Business Day that is not a Disrupted Day and determine the Rule 10b-18 VWAP for such ninth Scheduled Trading Day using its
    good faith and commercially reasonable estimate of the value of the Shares on such ninth Scheduled Trading Day based on the
    volume, historical trading patterns, price and volatility of the Shares, (y) deem such Disruption Event (and each consecutive
    Disrupted Day thereafter) to be a Potential Adjustment Event and/or (z) deem such Disruption Event to be an Additional Termination
    Event in respect of such Transaction, with Counterparty as the sole Affected Party and such Transaction as the sole Affected
    Transaction.
	 	 
	Early Closure:	The definition of “Early Closure” contained in Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof.  

 

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	Regulatory Disruption:	In the event that Citibank reasonably concludes in good faith and upon the advice of counsel that it is appropriate with respect to any legal, regulatory or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Citibank), or due to any other Market Disruption Event, for it to refrain from, decrease or otherwise materially alter any market activity on any Scheduled Trading Day in order to establish, maintain or unwind commercially reasonable Hedge Positions during the Pricing Period or, if applicable, the Settlement Period, Citibank may by written notice to Counterparty elect to suspend the Pricing Period or Settlement Period for such day.  Citibank shall promptly notify Counterparty upon exercising its rights pursuant to this provision and shall subsequently notify Counterparty in writing on the day Citibank reasonably believes in good faith and upon the advice of counsel that it may resume its market activity.  Citibank shall not be required to communicate to Counterparty the reason for Citibank’s exercise of its rights pursuant to this provision if Citibank reasonably determines in good faith and upon the advice of counsel that disclosing such reason may result in a violation of any legal, regulatory, or self-regulatory requirements or related policies and procedures (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Citibank).

 

Settlement
Terms:

 

	Settlement Procedures:	For each Transaction, if the Number of Shares to be Delivered is positive, Physical Settlement shall be applicable; provided that Citibank does not, and shall not make the agreement or the representations set forth in Section 9.11 of the Equity Definitions related to the restrictions imposed by applicable securities laws with respect to any Shares delivered by Citibank to Counterparty under any Transaction.  If the Number of Shares to be Delivered is negative, then the Counterparty Settlement Provisions in Annex B shall apply to such Transaction.
	 	 
	Number of Shares to be
    Delivered:	For each Transaction, a number of Shares equal to (i)(a) the Prepayment Amount divided by (b) the Valuation Amount minus (ii) the Initial Share Number.
	 	 
	Valuation Amount:	For each Transaction, (i) the Reference Price minus (ii) the Reference Price Adjustment Amount. 
	 	 
	Excess Dividend Amount:	For the avoidance of doubt, all references to Excess Dividend Amount shall be deleted from Section 9.2(a)(ii) of the Equity Definitions.
	 	 
	Settlement Date:	For each Transaction, if the Number of Shares to be Delivered is positive, the date that is one Settlement Cycle immediately following the earlier of (a) the Scheduled Termination Date and (b) any date Citibank delivers notice of the Pricing Period Termination Date.
	 	 
	Settlement Currency:	USD

 

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Initial Shares:

 

	Initial Share Delivery:	For any Transaction, upon payment by Counterparty of the Prepayment Amount, Citibank or an affiliate of Citibank shall deliver to Counterparty a number of Shares equal to the Initial Share Number on the Initial Settlement Date for such Transaction, in accordance with Section 9.4 of the Equity Definitions, with such Initial Settlement Date deemed to be a “Settlement Date” for purposes of such Section 9.4.
	 	 
	Initial Settlement Date:	For each Transaction, as set forth in the related Supplemental Confirmation.
	 	 
	Initial Share Number:	For each Transaction, as set forth in the related Supplemental Confirmation.

 

Share
Adjustments:

 

	Method of Adjustment:	Calculation Agent Adjustment 
	 	 
	Potential Adjustment Event:	Notwithstanding anything to the contrary in Section 11.2(e) of the Equity Definitions, an Extraordinary Dividend shall not constitute a Potential Adjustment Event.
	 	 
	 	An additional Potential Adjustment Event shall occur if the Scheduled Termination Date for any Transaction is postponed pursuant to “Pricing Disruption” above, in which case the Calculation Agent may, in its commercially reasonable discretion, adjust any relevant terms of such Transaction as necessary to preserve as nearly as practicable the fair value of such Transaction to Citibank prior to such postponement.
	 	 
	Extraordinary Dividend:	Any dividend or distribution on the Shares (other than any dividend or distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions) the amount or value of which (as determined by the Calculation Agent) when aggregated with the amount or value (as determined by the Calculation Agent) of any and all previous Dividends with ex-dividend dates occurring in the same calendar quarter, differs from the Ordinary Dividend.
	 	 
	Ordinary Dividend:	For each Transaction, as set forth in the related Supplemental Confirmation. For the avoidance of doubt, in no event shall the terms of any Transactions be adjusted to account for the Ordinary Dividend on the Shares.
	 	 
	Early Ordinary Dividend Payment:	If an ex-dividend date for any dividend that is not an Extraordinary Dividend occurs during any calendar quarter occurring (in whole or in part) during the Relevant Period (as defined below) and is prior to the Scheduled Ex-Dividend Date for such calendar quarter, the Calculation Agent shall make such adjustment to the exercise, settlement, payment or any other terms of the relevant Transaction as the Calculation Agent determines appropriate to account for the economic effect attributable to the timing of such Dividend on such Transaction of such event.
	 	 
	Scheduled Ex-Dividend Dates:	For each Transaction for each calendar quarter, as set forth in the related Supplemental Confirmation.

 

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Extraordinary
Events:

 

	Consequences of Merger Events:	 
	 	 
	(a)      Share-for-Share:	Modified Calculation Agent Adjustment
	 	 
	(b)      Share-for-Other:	Modified Calculation Agent Adjustment
	 	 
	(c)      Share-for-Combined:	Modified Calculation Agent Adjustment
	 	 
	Tender Offer:	Applicable; provided that (i) Section 12.1(l) of the Equity Definitions shall be amended (x) by deleting the parenthetical in the fifth line thereof, (y) by replacing “that” in the fifth line thereof with “whether or not such announcement” and (z) by adding immediately after the words “Tender Offer” in the fifth line thereof “, and any publicly announced change or amendment to such an announcement (including the announcement of an abandonment of such intention)” and (ii) Section 12.3(d) of the Equity Definitions shall be amended by replacing the words “Tender Offer Date” with the words “Announcement Date.”
	 	 
	Consequences of Tender
    Offers:	 
	 	 
	(a)      Share-for-Share:	Modified Calculation Agent Adjustment
	 	 
	(b)      Share-for-Other:	Modified Calculation Agent Adjustment 
	 	 
	(c)      Share-for-Combined:	Modified Calculation Agent Adjustment
	 	 
	Nationalization, Insolvency or Delisting:	Cancellation and Payment; provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation system shall be deemed to be the Exchange.
	 	 
	Additional Disruption Events:	 
	 	 
	(a)      Change in Law:	Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended (i) by replacing the phrase “the interpretation” in the third line thereof with the phrase “, or public announcement of, the formal or informal interpretation”, (ii) by replacing the word “Shares” where it appears in clause (X) thereof with the words “Hedge Position”,  (iii) by immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging Party on the Trade Date” and (iv) by replacing the parenthetical beginning after the word “regulation” in the second line thereof the words “(including, for the avoidance of doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)”.

 

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	(b)      Failure to Deliver: 	Applicable
	 	 
	(c)      Insolvency Filing:	Applicable
	 	 
	(d)      Hedging Disruption:	Applicable
	 	 
	(e)      Increased Cost of Hedging:	Applicable
	 	 
	(f)      Loss of Stock Borrow:	Applicable
	 	 
	Maximum Stock Loan Rate:	200 basis points per annum
	 	 
	(g)      Increased
    Cost of  Stock Borrow:	Applicable
	 	 
	Initial Stock Loan Rate:	25 basis points per annum
	 	 
	Hedging Party:	For all applicable Extraordinary Events, Citibank.
	 	 
	Determining Party:	For all applicable Extraordinary Events, Citibank.
	 	 
	Additional Termination Event(s):	The declaration by the Issuer of any Extraordinary Dividend, the ex-dividend date for which occurs or is scheduled to occur during the Relevant Dividend Period, will constitute an Additional Termination Event, with Counterparty as the sole Affected Party and all Transactions hereunder as the Affected Transactions. Upon the occurrence of an Additional Termination Event triggered by any Extraordinary Dividend, the Payment Amount shall not take into account the economic effect of the triggering Extraordinary Dividend.
	 	 
	 	Notwithstanding anything to the contrary in Section 6 of the Agreement, if a Termination Price is specified in the Supplemental Confirmation for a Transaction, then an Additional Termination Event with Counterparty as the sole Affected Party and such Transaction as the sole Affected Transaction will automatically occur without any notice or action by Citibank or Counterparty if the price of the Shares on the Exchange at any time falls below such Termination Price, and the Exchange Business Day on which such event occurs will be the “Early Termination Date” for purposes of the Agreement. 
	 	 
	Relevant Dividend Period:	The period from and including the first day of the Pricing Period to and including the Relevant Dividend Period End Date.
	 	 
	Relevant Dividend Period End Date:	If the Number of Shares to be Delivered is negative, the last day of the Settlement Period; otherwise, the Pricing Period Termination Date.

 

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	Non-Reliance/Agreements and	 
	Acknowledgments Regarding	 
	Hedging Activities/Additional	 
	Acknowledgments:	Applicable
	 	 
	Calculation Agent. 	Citibank  
	 	 
	(a) Adjustments:	For the avoidance of doubt, whenever the Calculation Agent, Determining Party or Hedging Party is called upon to make an adjustment, determination or election (for the avoidance of doubt, including, but not limited to, any determinations with respect to any amounts) pursuant to the terms of this Master Confirmation or the Equity Definitions to take into account the effect of an event, the Calculation Agent, Determining Party or Hedging Party, as the case may be, shall make such adjustment, determination or election in a commercially reasonable manner by taking into account the effect of such event on the Hedging Party’s Hedge Position, assuming that the Hedging Party maintains a commercially reasonable Hedge Position.

 

2.            Account
Details, Offices and Notices.

 

(a)          Account
Details:

 

Account for payments to Counterparty:

To be provided

 

Account for delivery of Shares to Counterparty:

To be provided

 

(ii)          Account
for payments to Citibank:

 

	Bank:	[__________]
	BIC:	[__________]
	F/O:	[__________]
	A/C:	[__________] 
	Ref:	[__________]

 

Account for delivery of Shares to Citibank:

 

	DTC#:	[__________]
	A/C:	[__________]

 

(b)          Notices.
Unless otherwise specified, notices under this Master Confirmation may be made by telephone, to be confirmed in writing to the
address below. Changes to the Notices must be made in writing.

 

(i)            If
to Counterparty:

 

Stoneridge, Inc.

[__________]

Telephone:
[__________]

Email:
[__________]

 

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(ii)          If
to Citibank:

 

Citibank, N.A.

[__________]

[__________]

[__________]

Telephone:
[__________]

Email:
[__________]

 

(c)          Offices.

 

		(i)	The Office of Counterparty for each Transaction is: Not
Applicable, Counterparty is not a Multi-branch Party.

 

		(ii)	The Office of Citibank for each Transaction is: New York.

 

3.          Mutual
Representations, Warranties and Covenants of Each Party.

 

In addition to the representations,
warranties and covenants in the Agreement, each party represents, warrants and covenants to the other party that:

 

(a)          Eligible
Contract Participant. It is an “eligible contract participant”, as defined in the U.S. Commodity Exchange Act (as
amended), and is entering into each Transaction hereunder as principal (and not as agent or in any other capacity, fiduciary or
otherwise) and not for the benefit of any third party; and

 

(b)          Accredited
Investor. Each party acknowledges that the offer and sale of each Transaction to it is intended to be exempt from registration
under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of Section 4(a)(2) thereof.
Accordingly, each party represents and warrants to the other that (i) it has the financial ability to bear the economic risk of
its investment in each Transaction and is able to bear a total loss of its investment, (ii) it is an “accredited investor”
as that term is defined under Regulation D under the Securities Act and (iii) the disposition of each Transaction is restricted
under this Master Confirmation, the Securities Act and state securities laws.

 

4.          Representations
of Counterparty.

 

In addition to the
representations, warranties and covenants in the Agreement, Counterparty additionally hereby represents, warrants and covenants
to Citibank that:

 

(a)          Corporate
Existence and Authorization; Required Company Approvals. Counterparty has all corporate power to enter into this Master Confirmation
and any Supplemental Confirmation hereunder and to consummate the transactions contemplated hereby and thereby and to purchase
the Shares and deliver any Settlement Shares in accordance with the terms hereof and thereof. Each Transaction contemplated by
this Master Confirmation and any repurchase of Shares by Counterparty in connection with such Transaction are pursuant to a publicly
announced share repurchase program that has been approved by its board of directors, and any such repurchase has been or will when
so required be publicly disclosed in its periodic filings under the Exchange Act, and, at the time of making this representation,
such Transaction is not subject to any internal policy or procedure of Counterparty, whether written or oral, which would prohibit
Counterparty from effecting any aspect of such Transaction, including, without limitation, the purchases of the Shares made pursuant
to such Transaction at such time;

 

(b)          Material
Non-Public Information and Manipulation. As of the Trade Date for each Transaction hereunder, it is not entering into
such Transaction, and as of the date of any election with respect to any Transaction hereunder, it will not make such election,
in each case, (i) on the basis of or while being aware of any material non-public information regarding Counterparty or the Shares;
(ii) in anticipation of, in connection with, or to facilitate, a distribution of its securities, a self-tender offer or a third-party
tender offer; or (iii) to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable
for the Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any security convertible into or exchangeable
for the Shares);

 

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(c)          Compliance
with Filing Requirements. As of the Trade Date for each Transaction hereunder, and as of the date of any election with
respect to any Transaction hereunder, Counterparty is in compliance in all material respects with its reporting obligations under
the Exchange Act; 

 

(d)          Issuer
Tender Offer. As of the Trade Date for each Transaction hereunder, the purchase or writing of such Transaction contemplated
hereby will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act;

 

(e)          Regulation
M. The Shares are not, and Counterparty will not cause the Shares to be, subject to a “restricted period” (as defined
in Regulation M) at any time during any Regulation M Period (as defined below) for any Transaction. “Regulation M Period”
means, for any Transaction, (i) the Relevant Period (as defined below) for such Transaction, (ii) the Settlement Period, if any,
for such Transaction and (iii) the Seller Termination Purchase Period (as defined below), if any, for such Transaction. “Relevant
Period” means, for any Transaction, the period commencing on the first day of the Pricing Period for such Transaction
and ending on the later of (i) the earlier of (x) the Scheduled Termination Date and (y) the last Additional Relevant Day (as specified
in the related Supplemental Confirmation) for such Transaction, or such earlier day as elected by Citibank and communicated to
Counterparty on such day (or, if later, the First Optional Termination Date without regard to any acceleration thereof pursuant
to “Special Provisions for Acquisition Transaction Announcements” below) and (ii) if Section 9 is applicable to such
Transaction, the date on which all deliveries owed pursuant to Section 9 have been made;

 

(f)           Counterparty’s
Actions. Counterparty will not take any action or refrain from taking any action that would limit or in any way adversely affect
Citibank’s rights under the Agreement, this Master Confirmation and any Supplemental Confirmation. Counterparty shall cooperate
with Citibank, and execute and deliver, or use its commercially reasonable efforts to cause to be executed and delivered, all such
other instruments, and to obtain all consents, approvals or authorizations of any person, and take all such other actions as Citibank
may reasonably request from time to time, consistent with the terms of the Agreement, this Master Confirmation and any Supplemental
Confirmation, in order to effectuate the purposes of the Agreement, this Master Confirmation, any Supplemental Confirmation and
any Transaction;

 

(g)          Rule
10b-18 Purchases of Blocks. Counterparty shall, at least one day prior to the Trade Date for any Transaction, notify Citibank
of the total number of Shares purchased in Rule 10b-18 purchases of blocks pursuant to the once-a-week block exception set forth
in paragraph (b)(4) of Rule 10b-18 under the Exchange Act (“Rule 10b-18”) by or for Counterparty or any of its
“affiliated purchasers” (as defined in Rule 10b-18) during each of the four calendar weeks preceding such day and during
the calendar week in which such day occurs (“Rule 10b-18 purchases” and “blocks” each being used as defined
in Rule 10b-18);

 

(h)          Liquidity.
As of the Trade Date for each Transaction hereunder, its financial condition is such that it has no need for liquidity with respect
to its investment in the transactions contemplated by this Master Confirmation and no need to dispose of any portion thereof to
satisfy any existing or contemplated undertaking or indebtedness;

 

(i)           Solvency.
As of the Trade Date, the Prepayment Date, the Initial Share Delivery Date and the Settlement Date for each Transaction, Counterparty
is not, and will not be, “insolvent” (as such term is defined under Section 101(32) of the Bankruptcy Code (as defined
below)) and Counterparty would be able to purchase a number of the Shares with a value equal to the Prepayment Amount in compliance
with the laws of the jurisdiction of Counterparty’s incorporation;

 

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(j)          Financial
Expertise and Total Assets. Counterparty (i) is capable of evaluating investment risks independently, both in general
and with regard to all transactions and investment strategies involving a security or securities; (ii) will exercise independent
judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the
broker-dealer in writing; and (iii) has total assets of at least USD 50,000,000 as of the date hereof;

 

(k)          Investment
Company Act of 1940. Counterparty is not, and after giving effect to each Transaction, will not be, required to register as
an “investment company” as such term is defined in the Investment Company Act of 1940, as amended; and

 

(l)           No
Deposit Insurance. It understands that no obligations of Citibank to it hereunder will be entitled to the benefit of
deposit insurance and that such obligations will not be guaranteed by any affiliate of Citibank or any governmental agency.

 

5.           Acknowledgments
and Agreements of Counterparty.

 

(a)          Authorized
Shares. Counterparty agrees that while this Master Confirmation is in effect, it shall cause (i) the number of authorized
Shares minus (ii) the number of outstanding Shares minus (iii) the number of the Shares reserved for other
purposes minus (iv) without duplication of clause (iii), the aggregate maximum number of the Shares deliverable under
warrants, options, swaps, forwards, convertible or exchangeable securities or other similar transactions, agreements or instruments
issued by Counterparty or to which Counterparty is a party that provide for physical or net share settlement or otherwise may require
the issuance of the Shares by Counterparty, to exceed the then applicable Share Cap. “Share Cap” means, as of
any date of determination, ten times (x) the Initial Share Number minus (y) the number of Shares delivered by Counterparty
to Citibank on or prior to such date hereunder subject to “Extraordinary Events” and “Loss of Stock Borrow”
above. At the conclusion of the Pricing Period with respect to any Transaction, Counterparty will have a sufficient number of treasury
shares or duly authorized but unissued Shares available to satisfy its obligations with respect to such Transaction, such Shares
to be fully paid and nonassessable and free of preemptive and other rights. Counterparty agrees that a failure by Counterparty
to comply with the preceding sentence shall be an Additional Termination Event with Counterparty as the sole Affected Party and
all Transactions hereunder as the Affected Transactions.

 

(b)          Nature
of Rights. Counterparty acknowledges and agrees that this Master Confirmation is not intended to convey to Citibank rights
against Counterparty hereunder that are senior to the claims of common shareholders in any U.S. bankruptcy proceedings of Counterparty;
provided, however, that nothing herein shall limit or shall be deemed to limit Citibank’s right to pursue remedies
in the event of a breach by Counterparty of its obligations and agreements with respect to this Master Confirmation; and provided
further that in pursuing a claim against Counterparty in the event of a bankruptcy, insolvency or dissolution with respect
to Counterparty, Citibank’s rights hereunder shall rank on a parity with the rights of a holder of the Shares enforcing similar
rights under a contract involving the Shares.

 

(c)          Bankruptcy
Code. The parties hereto intend for (i) each Transaction hereunder to be a “securities contract” as defined in
the Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”), and the parties hereto are
entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(o), 546, 555 and 561 of the Bankruptcy Code;
(ii) a party’s right to liquidate, terminate or accelerate such Transaction and to exercise any other remedies upon the occurrence
of any Event of Default or Termination Event under this Master Confirmation with respect to the other party to constitute a “contractual
right” within the meaning of the Bankruptcy Code; (iii) all transfers of cash, securities or other property under or in connection
with such Transaction are “transfers” made “by or to (or for the benefit of)” a “master netting agreement
participant”, a “financial institution”, a “financial participant” or a “forward contract merchant”
(each as defined in the Bankruptcy Code) within the meaning of Sections 546(e), 546(f) and 546(j) of the Bankruptcy Code; (iv)
all obligations under or in connection with such Transaction represent obligations in respect of “termination values”,
“payment amounts” or “other transfer obligations” within the meaning of Section 362 and 561 of the Bankruptcy
Code; and (v) each of the parties hereto to be a “financial participant” within the meaning of Section 101(22A) of
the Bankruptcy Code.

 

    	 	12	 

     

    

 

(d)          Citibank’s
Activities. Counterparty understands and acknowledges that Citibank and its affiliates may from time to time effect transactions
for their own account or the account of customers and hold positions in securities or options on securities of Counterparty and
that Citibank and its affiliates may continue to conduct such transactions during the Pricing Period and the Settlement Period.

 

(e)          Establishment
of Hedge Position. Counterparty acknowledges that during the term of any Transaction, Citibank and its affiliates may buy or
sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities
in order to establish, adjust or unwind its commercially reasonable hedge position with respect to such Transaction.

 

(f)           Other
Market Activities. Counterparty acknowledges that Citibank and its affiliates may also be active in the market for Shares and
transactions linked to the Shares other than in connection with hedging activities in relation to any Transaction.

 

(g)          Manner
of Hedging or Market Activities. Counterparty acknowledges that Citibank shall make its own determination as to whether, when
or in what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner
that it deems appropriate to hedge its price and market risk with respect to the Reference Price and the Rule 10b-18 VWAP.

 

(h)          Effect
of Market Activities. Counterparty acknowledges that any market activities of Citibank and its affiliates with respect to the
Shares may affect the market price and volatility of the Shares, as well as the Reference Price and Rule 10b-18 VWAP, each in a
manner that may be adverse to Counterparty.

 

(i)           Purchase
Price. Counterparty acknowledges that each Transaction is a derivative transaction in which it has granted Citibank an option;
Citibank may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by
Counterparty under the terms of such Transaction.

 

6.            Calculations
and Payment Date upon Early Termination.

 

The parties
acknowledge and agree that in calculating (a) the Close-Out Amount pursuant to Section 6 of the Agreement and (b) the amount due
upon cancellation or termination of any Transaction (whether in whole or in part) pursuant to Article 12 of the Equity Definitions
as a result of an Extraordinary Event, Citibank may (but need not) determine such amount based on (i) expected losses assuming
a commercially reasonable (including, without limitation, with regard to reasonable legal and regulatory guidelines) risk bid were
used to determine loss or (ii) the price at which one or more market participants would offer to sell to Citibank a block of Shares
(assuming such price is determined in a commercially reasonable manner and reflect prevailing market prices) equal in number to
Citibank’s commercially reasonable hedge position in relation to such Transaction. Notwithstanding anything to the contrary
in Section 6(d)(ii) of the Agreement or Article 12 of the Equity Definitions, all amounts calculated as being due in respect of
an Early Termination Date under Section 6(e) of the Agreement or upon cancellation or termination of such Transaction under Article
12 of the Equity Definitions will be payable on the day that notice of the amount payable is effective; provided that if
Counterparty elects to receive or deliver Shares or Alternative Delivery Units in accordance with Section 9, such Shares or Alternative
Delivery Units shall be delivered on a date selected by Citibank as promptly as practicable.

 

    	 	13	 

     

    

 

7.           10b5-1
Plan.

 

(a)          It
is the intent of Counterparty and Citibank that each Transaction comply with the requirements of Rule 10b5-1(c) of the Exchange
Act and that this Master Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c)(1)(i)(B) and Citibank
shall take no action that results in the transaction not so complying with such requirements.

 

(b)          Counterparty
is entering into this Master Confirmation and each Transaction hereunder in good faith and not as part of a plan or scheme to evade
the prohibitions of Rule 10b5-1 under the Exchange Act (“Rule 10b5-1”) or any other antifraud or anti-manipulation
provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into
or alter any corresponding or hedging transaction or position with respect to the Shares. Counterparty acknowledges that it is
the intent of the parties that each Transaction entered into under this Master Confirmation comply with the requirements of paragraphs
(c)(1)(i)(A) and (B) of Rule 10b5-1 and each Transaction entered into under this Master Confirmation shall be interpreted to comply
with the requirements of Rule 10b5-1(c).

 

(c)          During
the term of any Transaction and in connection with the delivery of any Alternative Delivery Units for any Transaction, Citibank
(or its agent or affiliate) may effect transactions in Shares in connection with such Transaction. The timing of such transactions
by Citibank, the price paid or received per Share pursuant to such transactions and the manner in which such transactions are made,
including, without limitation, whether such transactions are made on any securities exchange or privately, shall be within the
sole judgment of Citibank. Counterparty acknowledges and agrees that all such transactions shall be made in Citibank’s sole
judgment and for Citibank’s own account.

 

(d)          Counterparty
does not have, and shall not attempt to exercise, any control or influence over how, when or whether Citibank (or its agent or
affiliate) makes any “purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) in connection with any
Transaction, including, without limitation, the price paid per Share pursuant to such purchases, whether such purchases are made
on any securities exchange or privately and how, when or whether Citibank (or its agent or affiliate) enters into any hedging transactions.
Counterparty represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and implementation
of this Master Confirmation and each Supplemental Confirmation under Rule 10b5-1.

 

(e)          Counterparty
acknowledges and agrees that any amendment, modification, waiver or termination of this Master Confirmation or any Supplemental
Confirmation must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined
in Rule 10b5-1(c). Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall
be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification
or waiver shall be made at any time at which Counterparty or any officer, director, manager or similar person of Counterparty is
aware of any material non-public information regarding Counterparty or the Shares.

 

8.           Counterparty
Purchases.

 

Counterparty (including
its “affiliated purchasers”, as defined in Rule 10b-18) shall not, without a prior written consent of Citibank, directly
or indirectly purchase, offer to purchase, place any bid or limit order that would effect a purchase of, or commence any tender
offer relating to, any Shares (or an equivalent interest, or any security convertible into or exchangeable for such Shares and
including, without limitation, by means of a derivative instrument) on the open market, or enter into any accelerated share repurchase
program, or any derivative share repurchase transaction, or other similar transaction, during the Relevant Period, Settlement Period
or Seller Termination Purchase Period and thereafter until all payments or deliveries of Shares under this Master Confirmation
have been made. During such time, any purchases of Shares by Counterparty shall be made through Citibank or its affiliates, subject
to such reasonable conditions as Citibank or such affiliate shall impose, and in compliance with Rule 10b-18 or otherwise in a
manner that Counterparty and Citibank believe is in compliance with applicable requirements.

 

    	 	14	 

     

    

 

9.           Loss
Settlement Election.

 

In the event that (a)
an Early Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with respect
to any Transaction or (b) any Transaction is cancelled or terminated upon the occurrence of an Extraordinary Event (except as a
result of (i) a Nationalization, Insolvency or Merger Event in which the consideration to be paid to holders of Shares consists
solely of cash, (ii) a Merger Event or Tender Offer that is within Counterparty’s control, or (iii) an Event of Default in
which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the Affected Party other than an Event
of Default of the type described in Section 5(a)(iii), (v), (vi), (vii) or (viii) of the Agreement or a Termination Event of the
type described in Section 5(b) of the Agreement, in each case that resulted from an event or events outside Counterparty’s
control), if either party would owe any amount to the other party pursuant to Section 6(d)(ii) of the Agreement or any Cancellation
Amount pursuant to Article 12 of the Equity Definitions (any such amount, a “Payment Amount”), then, in lieu
of any payment of such Payment Amount, unless Counterparty makes an election to the contrary no later than the Early Termination
Date or the date on which such Transaction is terminated or cancelled, Counterparty or Citibank, as the case may be, shall deliver
to the other party a number of Shares (or, in the case of a Nationalization, Insolvency or Merger Event, a number of units, each
comprising the number or amount of the securities or property that a hypothetical holder of one Share would receive in such Nationalization,
Insolvency or Merger Event, as the case may be (each such unit, an “Alternative Delivery Unit”)) with a value
equal to the Payment Amount, as determined by the Calculation Agent over a commercially reasonable period of time (and the parties
agree that, in making such determination of value, the Calculation Agent shall take into account volatility, liquidity and the
market price of the Shares or Alternative Delivery Unit on the Early Termination Date or the date of early cancellation or termination,
as the case may be, and if such delivery is made by Citibank, the prices at which Citibank purchases Shares or Alternative Delivery
Units, assuming such purchases are executed in a commercially reasonable manner and within a commercially reasonable period of
time and reflect the prevailing market price of Shares or Alternative Delivery Unit to fulfill its delivery obligation under this
Section 9); provided that in determining the composition of any Alternative Delivery Unit, if the relevant Nationalization,
Insolvency or Merger Event involves a choice of consideration to be received by holders of Shares, such holder shall be deemed
to have elected to receive the maximum possible amount of cash; and provided further that Counterparty may elect that the
provisions of this Section 9 above providing for the delivery of Shares or Alternative Delivery Units, as the case may be, shall
not apply only if Counterparty represents and warrants to Citibank, in writing on the date it notifies Citibank of such election,
that, as of such date, Counterparty is not aware of any material non-public information regarding Counterparty or the Shares and
is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.
If delivery of Shares or Alternative Delivery Units, as the case may be, pursuant to this Section 9 is to be made by Counterparty,
paragraphs 2 through 7 of Annex B hereto shall apply as if (A) such delivery were a settlement of such Transaction to which
Net Share Settlement applied, (B) the Cash Settlement Payment Date were the Early Termination Date or the date of early cancellation
or termination, as the case may be, and (C) the Forward Cash Settlement Amount were equal to (x) zero minus (y) the Payment
Amount owed by Counterparty. For the avoidance of doubt, if Counterparty validly elects for the provisions of this Section 9 relating
to the delivery of Shares or Alternative Delivery Units, as the case may be, not to apply to any Payment Amount, the provisions
of Article 12 of the Equity Definitions, or the provisions of Section 6(d)(ii) of the Agreement, as the case may be, shall apply.
If delivery of Shares or Alternative Delivery Units, as the case may be, is to be made by Citibank pursuant to this Section 9,
the period during which Citibank purchases Shares or Alternative Delivery Units to fulfill its delivery obligations under this
Section 9 shall be referred to as the “Seller Termination Purchase Period”.

 

10.         Special
Provisions for Merger Transaction.

 

Notwithstanding anything to the contrary
herein or in the Equity Definitions:

 

(a)          Counterparty
agrees that it:

 

    	 	15	 

     

    

 

		(i)	will not during the period commencing on the Trade Date
for any Transaction and ending on the last day of the Relevant Period or the last day of the Settlement Period and the last day
of the Seller Termination Purchase Period, for such Transaction make, or permit to be made, any public announcement (as defined
in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction (a “Merger Announcement”)
unless such Merger Announcement is made prior to the opening or after the close of the regular trading session on the Exchange
for the Shares;

 

		(ii)	shall promptly (but in any event prior to the next opening
of the regular trading session on the Exchange) notify Citibank following any such Merger Announcement that such Merger Announcement
has been made; and

 

		(iii)	shall promptly (but in any event prior to the next opening
of the regular trading session on the Exchange) provide Citibank with written notice specifying (i) Counterparty’s average
daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the announcement
date of any Merger Transaction or potential Merger Transaction that were not effected through Citibank or its affiliates and (ii)
the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar
months preceding the announcement date of any Merger Transaction or potential Merger Transaction. Such written notice shall be
deemed to be a certification by Counterparty to Citibank that such information is true and correct. In addition, Counterparty
shall promptly notify Citibank of the earlier to occur of the completion of such transaction and the completion of the vote by
target shareholders.

 

(b)          Counterparty
acknowledges that any such Merger Announcement or delivery of a notice with respect thereto may cause the terms of any Transaction
to be adjusted or such Transaction to be terminated; accordingly, Counterparty acknowledges that its delivery of such notice must
comply with the standards set forth in Section 7 above.

 

(c)          Upon
the occurrence of any Merger Announcement (whether made by Counterparty
or a third party), Citibank in its sole discretion may (i) make adjustments to the terms of any Transaction, including, without
limitation, the Scheduled Termination Date or the Reference Price Adjustment Amount, and/or suspend the Settlement Period or (ii)
treat the occurrence of such Merger Announcement as an Additional Termination Event with Counterparty as the sole Affected Party
and the Transactions hereunder as the Affected Transactions and with the amount under Section 6(e) of the Agreement determined
taking into account the fact that the Settlement Period had fewer Scheduled Trading Days than originally anticipated. In making
adjustments to the terms of any Transaction upon the occurrence of any Merger Announcement, Citibank shall do so in a commercially
reasonable manner to take into account of the effect of such Merger Announcement on Citibank’s commercially reasonable Hedge
Position in relations to any Transaction.

 

“Merger
Transaction” means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule
10b-18(a)(13)(iv) under the Exchange Act.

 

11.        Special
Provisions for Acquisition Transaction Announcements.

 

(a)          If
an Acquisition Transaction Announcement occurs on or prior to the Settlement Date for any Transaction, then the Calculation Agent
shall make such adjustments in a commercially reasonable manner, to the exercise, settlement, payment or any other terms of such
Transaction as the Calculation Agent determines appropriate, at such time or at multiple times as the Calculation Agent deems appropriate
(without duplication), to account for the economic effect on such Transaction of such Acquisition Transaction Announcement. If
an Acquisition Transaction Announcement occurs after the Trade Date, but prior to the First Optional Termination Date of any Transaction,
the First Optional Termination Date shall be the date of such Acquisition Transaction Announcement.

 

    	 	16	 

     

    

 

(b)          “Acquisition
Transaction Announcement” means (i) the announcement of an Acquisition Transaction or an event that, if consummated,
would result in an Acquisition Transaction, (ii) an announcement that Counterparty or any of its subsidiaries has entered into
an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction, (iii) the announcement of
the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include, an
Acquisition Transaction, (iv) any other announcement that in the reasonable judgment of the Calculation Agent may result in an
Acquisition Transaction or (v) any announcement of any change or amendment to any previous Acquisition Transaction Announcement
(including any announcement of the abandonment of any such previously announced Acquisition Transaction, agreement, letter of intent,
understanding or intention). For the avoidance of doubt, announcements as used in the definition of Acquisition Transaction Announcement
refer to any public announcement whether made by the Issuer or a third party.

 

(c)          “Acquisition
Transaction” means (i) any Merger Event (for purposes of this definition the definition of Merger Event shall be read
with the references therein to “100%” being replaced by “15%” and references to “50%” being
replaced by “75%” and without reference to the clause beginning immediately following the definition of Reverse Merger
therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the merger of Counterparty
with or into any third party, (ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization,
reclassification, binding share exchange or other similar transaction with respect to Counterparty, (iv) any acquisition by Counterparty
or any of its subsidiaries where the aggregate consideration transferable by Counterparty or any of its subsidiaries exceeds 50%
of the market capitalization of Counterparty, (v) any lease, exchange, transfer, disposition (including by way of spin-off or distribution)
of assets (including, without limitation, any capital stock or other ownership interests in subsidiaries) or other similar event
by Counterparty or any of its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or
its subsidiaries exceeds 15% of the market capitalization of Counterparty and (vi) any transaction in which Counterparty or its
board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether
pursuant to Rule 14e-2 under the Exchange Act or otherwise).

 

12.        Delivery
Procedures and Limitation.

 

Notwithstanding anything
to the contrary in this Master Confirmation, Counterparty acknowledges and agrees that, on any day, Citibank (or its agent or affiliate)
shall not be obligated to deliver or receive any Shares to or from Counterparty and Counterparty shall not be entitled to receive
any Shares if such receipt or delivery would result in Citibank directly or indirectly beneficially owning (as such term is defined
for purposes of Section 13(d) of the Exchange Act) at any time in excess of 4.9% of the outstanding Shares. Any purported receipt
or delivery of the Shares shall be void and have no effect to the extent (but only to the extent) that such receipt or delivery
of such Shares would result in Citibank directly or indirectly so beneficially owning in excess of 4.9% of the outstanding Shares.
If, on any day, any delivery or receipt of the Shares by Citibank (or its agent or affiliate) is not effected, in whole or in part,
as a result of this provision, Citibank’s and Counterparty’s respective obligations to make or accept such receipt
or delivery shall not be extinguished and such receipt or delivery shall be effected over time as promptly as Citibank reasonably
determines that such receipt or delivery would not result in Citibank directly or indirectly beneficially owning in excess of 4.9%
of the outstanding Shares.

 

13.        Additional
Amendments to the Equity Definitions.

 

(a)          Section
11.2(a) of the Equity Definitions is hereby amended by deleting the words “a diluting or concentrative” and replacing
them with the words “an”; and adding the phrase “or such Transaction” at the end of the sentence.

 

    	 	17	 

     

    

 

(b)          Section
11.2(c) of the Equity Definitions is hereby amended by (i) replacing the words “a diluting or concentrative” with “an”
in the fifth line thereof, (ii) adding the phrase “or such Transaction” after the word “Shares” in the
sixth line thereof, (iii) deleting the words “diluting or concentrative” in the seventeenth line thereof, and (iv)
replacing the parenthetical phrase in the eighteenth and nineteenth lines thereof with the following: “(and, for the avoidance
of doubt, adjustments may be made to account solely for changes in volatility, expected dividends, stock loan rate or liquidity
relative to the relevant Shares).”

 

(c)          Section
11.2(e)(vii) of the Equity Definitions is hereby amended by deleting the words “diluting or concentrative” and replacing
them with the word “material” and by adding the phrase “or the relevant Transaction” at the end of the
sentence.

 

(d)          Section
12.9(b)(iv) of the Equity Definitions is hereby amended by:

 

		(i)	deleting (1) subsection (A) in its entirety, (2) the phrase
“or (B)” following subsection (A) and (3) the phrase “in each case” in subsection (B); and

 

		(ii)	replacing the phrase “neither the Non-Hedging Party
nor the Lending Party lends Shares” with the phrase “such Lending Party does not lend Shares” in the penultimate
sentence.

 

(e)          Section
12.9(b)(v) of the Equity Definitions is hereby amended by:

 

		(i)	adding the word “or” immediately before subsection
“(B)” and deleting the comma at the end of subsection (A); and

 

		(ii)	(1) deleting subsection (C) in its entirety, (2) deleting
the word “or” immediately preceding subsection (C), (3) deleting the penultimate sentence in its entirety and replacing
it with the sentence “The Hedging Party will determine the Cancellation Amount payable by one party to the other”
and (4) deleting clause (X) in the final sentence.

 

14.        Staggered
Settlement.

 

Citibank may, by notice
to Counterparty on or prior to any Settlement Date (a “Nominal Settlement Date”), elect to deliver any Shares
deliverable on such Nominal Settlement Date on two or more dates (each, a “Staggered Settlement Date”) or at
two or more times on the Nominal Settlement Date as follows: (i) in such notice, Citibank will specify to Counterparty the related
Staggered Settlement Dates (each of which will be on or prior to such Nominal Settlement Date) or delivery times and how it will
allocate the Shares it is required to deliver under the applicable settlement method above among the Staggered Settlement Dates
or delivery times; and (ii) the aggregate number of Shares that Citibank will deliver to Counterparty hereunder on all such Staggered
Settlement Dates and delivery times will equal the number of Shares that Citibank would otherwise be required to deliver on such
Nominal Settlement Date.

 

15.        Right
to Extend.

 

Citibank may postpone
any potential Valuation Date or postpone or extend any other date of valuation or delivery with respect to some or all of the relevant
Shares, upon written notice to Counterparty, if Citibank determines, in its reasonable discretion, that such postponement or extension
is reasonably necessary or appropriate to preserve Citibank’s commercially reasonable hedging or hedge unwind activity in
a commercially reasonable manner hereunder in light of existing liquidity conditions of Shares (including but not limited to the
liquidity in the stock borrow market) or to enable Citibank to effect purchases or sale of Shares in connection with its commercially
reasonable hedging, hedge unwind or settlement activity hereunder in a manner that would, if Citibank were Issuer or an affiliated
purchaser of Issuer, be in compliance with applicable legal, regulatory or self-regulatory requirements, or with related policies
and procedures applicable to Citibank.

 

    	 	18	 

     

    

 

16.          Matters
Relating to Taxes.

 

(a)          For
purposes of 3(e) of the Agreement, Citibank and Counterparty each represent and warrant that it is not required by any applicable
law, as modified by the practice of any relevant governmental revenue authority, of any relevant jurisdiction to make any deduction
or withholding for or on account of any Tax from any payment to be made by it to the other party under this Master Confirmation
and each Transaction evidenced hereby.

 

(b)          For
the purpose of Sections 4(a)(i) and (ii) of the Agreement, Citibank agrees to deliver to Counterparty one duly executed and completed
United States Internal Revenue Service Form W-9 (or successor thereto) upon execution of this Master Confirmation and shall provide
a new form promptly upon (A) reasonable request of Counterparty or (B) learning that any form previously provided has become obsolete
or incorrect. For the purpose of Sections 4(a)(i) and (ii) of the Agreement, Counterparty agrees to deliver to Citibank one duly
executed and completed United States Internal Revenue Service Form W-9 (or successor thereto) upon execution of this Master Confirmation
and shall provide a new form promptly upon (A) reasonable request of Citibank or (B) learning that any form previously provided
has become obsolete or incorrect.

 

(c)          “Tax”
as used in subsection (a) immediately above and Section 5(b) of the Agreement, and “Indemnifiable Tax” as defined in
Section 14 of the Agreement, shall not include any withholding tax imposed or collected pursuant to (A) Section 871(m) of the U.S.
Internal Revenue Code of 1986, as amended (the “Code”), or any current or future regulations or official interpretations
thereof (a “Section 871(m) Withholding Tax”) or (B) Sections 1471 through 1474 of 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 (a “FATCA Withholding Tax”). For the avoidance of doubt, each
of a Section 871(m) Withholding Tax and a FATCA Withholding Tax is a Tax the deduction or withholding of which is required by applicable
law for the purposes of Section 2(d) of the Agreement.

 

17.          U.S.
QFC Provisions.

 

(a)          Recognition
of U.S. Special Resolution Regimes. (i) In the event Citibank becomes subject to a proceeding under the FDI Act or OLA
(together, the “U.S. Special Resolution Regimes”), the transfer of the Agreement or this Master Confirmation,
and any interest and obligation in or under, and any property securing, the Agreement or this Master Confirmation, from Citibank
will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Agreement,
this Master Confirmation, and any interest and obligation in or under, and any property securing, the Agreement or this Master
Confirmation were governed by the laws of the United States or a State of the United States; and (ii) in the event Citibank or
any Citibank Affiliate becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights with respect to the
Agreement or this Master Confirmation that may be exercised against Citibank are permitted to be exercised to no greater extent
than such Default Rights could be exercised under such U.S. Special Resolution Regime if the Agreement or this Master Confirmation,
as the case may be, were governed by the laws of the United States or a State of the United States.

 

(b)          Limitation
on Exercise of Certain Default Rights Related to Citibank Affiliate’s Entry into Insolvency Proceedings. Notwithstanding
anything to the contrary in the Agreement, this Master Confirmation or any other agreement, the parties hereto expressly acknowledge
and agree that subject to Section 17(c), Counterparty shall not be permitted to exercise any Default Right against Citibank with
respect to the Agreement or this Master Confirmation that is related, directly or indirectly, to a Citibank Affiliate becoming
subject to an Insolvency Proceeding.

 

(c)          General
Creditor Protections. Nothing in Section 17(b) shall restrict the exercise by Counterparty of any Default Right against Citibank
with respect to the Agreement or this Master Confirmation that arises as a result of:

 

    	 	19	 

     

    

 

(i)            Citibank
becoming subject to an Insolvency Proceeding; or

 

(ii)           Citibank
not satisfying a payment or delivery obligation pursuant to (A) the Agreement, or (B) this Master Confirmation.

 

(d)          Burden
of Proof. After a Citibank Affiliate has become subject to an Insolvency Proceeding, if Counterparty seeks to exercise any
Default Right with respect to the Agreement or this Master Confirmation, Counterparty shall have the burden of proof, by clear
and convincing evidence, that the exercise of such Default Right is permitted hereunder.

 

(e)          Applicability
of Section 17(a). The requirements of Section 17(a) apply notwithstanding Sections 17(b) and (c).

 

(f)           General
Conditions.

 

(i)            Effective
Date. The provisions set forth in Section 17 will come into effect on the later of the Applicable Compliance Date and the date
of this Master Confirmation.

 

 (ii)           Prior Adherence to the U.S. Protocol. If Citibank and Counterparty have adhered to the ISDA U.S. Protocol prior to the date of this Master Confirmation, the terms of the ISDA U.S. Protocol shall be incorporated into and form a part of this Master Confirmation and shall replace the terms of this Section 17. For purposes of incorporating the ISDA U.S. Protocol, Citibank shall be deemed to be a Regulated Entity, Counterparty shall be deemed to be an Adhering Party and each of the Agreement and this Master Confirmation shall be deemed to be a Protocol Covered Agreement.

 

(iii)          Subsequent
Adherence to the U.S. Protocol. If, after the date of this Master Confirmation, both Citibank and Counterparty shall have become
adhering parties to the ISDA U.S. Protocol, the terms of the ISDA U.S. Protocol will supersede and replace this Section 17.

 

(g)          Definitions.
For the purposes of Section 17, the following definitions apply:

 

“Applicable
Compliance Date” with respect to the Agreement and this Master Confirmation shall be determined as follows: (a) if Counterparty
is an entity subject to the requirements of the QFC Stay Rules, January 1, 2019, (b) if Counterparty is a Financial Counterparty
(other than a Small Financial Institution) that is not an entity subject to the requirements of the QFC Stay Rules, July 1, 2019
and (c) if Counterparty is not described in clause (a) or (b), January 1, 2020.

 

“BHC
Affiliate” has the same meaning as the term “affiliate”
as defined in, and shall be interpreted in accordance with, 12 U.S.C. 1813(w) and 12 U.S.C. 1841(k).

 

“Citibank
Affiliate” means, with respect to Citibank, a BHC Affiliate of that party.

 

“Consolidated
Affiliate” has the same meaning specified in, and shall be interpreted in accordance with, 12 C.F.R. 252.81, 12 C.F.R.
382.1 and 12 C.F.R. 47.2.

 

“Counterparty
Affiliate” means a Consolidated Affiliate of Counterparty.

 

“Default Right”
means, with respect to the Agreement or this Master Confirmation (including any Transaction or Confirmation hereunder), any:

 

    	 	20	 

     

    

 

(i) right
of a party, whether contractual or otherwise (including, without limitation, rights incorporated by reference to any other contract,
agreement, or document, and rights afforded by statute, civil code, regulation, and common law), to liquidate, terminate, cancel,
rescind, or accelerate such agreement or transactions thereunder, set off or net amounts owing in respect thereto (except rights
related to same-day payment netting), exercise remedies in respect of collateral or other credit support or property related thereto
(including the purchase and sale of property), demand payment or delivery thereunder or in respect thereof (other than a right
or operation of a contractual provision arising solely from a change in the value of collateral or margin or a change in the amount
of an economic exposure), suspend, delay, or defer payment or performance thereunder, or modify the obligations of a party thereunder,
or any similar rights; and

 

(ii) right
or contractual provision that alters the amount of collateral or margin that must be provided with respect to an exposure thereunder,
including by altering any initial amount, threshold amount, variation margin, minimum transfer amount, the margin value of collateral,
or any similar amount, that entitles a party to demand the return of any collateral or margin transferred by it to the other party
or a custodian or that modifies a transferee’s right to reuse collateral or margin (if such right previously existed), or
any similar rights, in each case, other than a right or operation of a contractual provision arising solely from a change in the
value of collateral or margin or a change in the amount of an economic exposure; but

 

(iii) solely
with respect to Section 17(b) does not include any right under a contract that allows a party to terminate the contract on demand
or at its option at a specified time, or from time to time, without the need to show cause.

 

“FDI Act”
means the Federal Deposit Insurance Act and the regulations promulgated thereunder.

 

“Financial
Counterparty” has the meaning given to such term in, and shall be interpreted in accordance with, 12 C.F.R. 252.81, 12
C.F.R. 382.1 and 12 C.F.R. 47.2.

 

“Insolvency
Proceeding” means a receivership, insolvency, liquidation, resolution, or similar proceeding.

 

“ISDA U.S.
Protocol” means the ISDA 2018 U.S. Resolution Stay Protocol, as published by ISDA on July 31, 2018.

 

“OLA”
means Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

 

“QFC Stay
Rules” means the regulations codified at 12 C.F.R. 252.81–8 (the “Federal Reserve Rule”), 12
C.F.R. 382.1-7 (the “FDIC Rule”) and 12 C.F.R. 47.1-8 (the “OCC Rule”), respectively. All
references herein to the specific provisions of the Federal Reserve Rule, the FDICs Rule and the OCC Rule shall be construed, with
respect to Citibank, to the particular QFC Stay Rule(s) applicable to it.

 

“Small Financial
Institution” has the meaning given to such term in, and shall be interpreted in accordance with, 12 C.F.R. 252.81, 12
C.F.R. 382.1 and 12 C.F.R. 47.2.

 

“State”
means any state, commonwealth, territory, or possession of the United States of America, the District of Columbia, the Commonwealth
of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, or the United States Virgin Islands.

 

18.          Miscellaneous.

 

(a)          No
Collateral. Notwithstanding any provision of this Master Confirmation, or any other agreement between the parties, to the contrary,
the obligations of Counterparty under this Master Confirmation are not secured by any collateral.

 

    	 	21	 

     

    

 

(b)          Waiver
of Trial by Jury. Each of Counterparty and Citibank hereby irrevocably waives (on its
own behalf and, to the extent permitted by applicable law, on behalf of its SHAREholders) all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Master Confirmation
or the actions of Citibank or its affiliates in the negotiation, performance or enforcement hereof.

 

(e)          Non-Confidentiality;
SEC Filings. Notwithstanding anything to the contrary herein, (i) Citibank acknowledges that this Master Confirmation may be
intended to produce U.S. federal income tax benefits for Counterparty and (ii) Counterparty and Citibank hereby agree that (A) Counterparty
is not obligated to Citibank to keep confidential from any and all persons or otherwise limit the use of any aspect of this Master
Confirmation relating to the structure or tax aspects thereof, and (B) Citibank does not assert any claim of proprietary ownership
in respect of any such aspect of this Master Confirmation. Citibank understands and agrees that Counterparty may describe this
Master Confirmation and other related agreements in Counterparty’s SEC filings and that this Master Confirmation and other
related agreements may be filed by Counterparty as an exhibit with Counterparty’s SEC filings.

 

(f)           No
Netting or Setoff. Obligations under any Transaction shall not be netted, recouped or set off (including pursuant to Section
6 of the Agreement) against any other obligations of the parties, whether arising under the Agreement, this Master Confirmation
or any Supplemental Confirmation, or under any other agreement between the parties hereto, by operation of law or otherwise, and
no other obligations of the parties shall be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against
obligations under any Transaction, whether arising under the Agreement, this Master Confirmation or any Supplemental Confirmation,
or under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such
right of setoff, netting or recoupment.

 

(g)          No
Transfer; Designation. The rights and duties under this Master Confirmation may not be assigned or transferred by either party
hereto without the prior written consent of the other party hereto; provided, however, that Citibank may designate
any of its affiliates to purchase, sell, receive or deliver such shares or other securities and otherwise to perform Citibank’s
obligations in respect of any Transaction hereunder and any such designee may assume such obligations without the written consent
of Counterparty. Citibank shall be discharged of its obligations to Counterparty solely to the extent of any such performance.
For the avoidance of doubt, Citibank hereby acknowledges that notwithstanding any such designation hereunder, to the extent any
of Citibank’s obligations in respect of any Transaction are not completed by its designee, Citibank shall be obligated to
continue to perform or to cause any other of its designees to perform in respect of such obligations.

 

(h)          Counterparts.
This Master Confirmation may be executed in any number of counterparts, all of which shall constitute one and the same instrument,
and any party hereto may execute this Master Confirmation by signing and delivering one or more counterparts.

 

(i)            Submission
to Jurisdiction. Section 13(b) of the Agreement is hereby amended by: (x) deleting in the second line of subparagraph (i)(2)
thereof the word, “non-”; and (y) adding in the third line of subparagraph (i)(2) thereof before the semicolon, “and
each party irrevocably agrees to designate any Proceedings brought in the courts of the State of New York as ‘commercial’
on the Request for Judicial Intervention seeking assignment to the Commercial Division of the Supreme Court”.

 

    	 	22	 

     

    

 

Please confirm your
agreement to the foregoing by signing and returning to us the enclosed duplicate of this Master Confirmation.

 

	 	Very truly yours,
	 	 
	 	CITIBANK, N.A.
	 	 
	 	By:	/s/ Eric Natelson
	 	Name: Eric Natelson
	 	Authorized Representative

 

Acknowledged and agreed to as of

the date first above written,

 

	STONERIDGE, INC.	 
	 	 
	By:	/s/ Robert R. Krakowiak	
	Name:	Robert R. Krakowiak	 
	Title:	CFO	 

 

[Signature Page to Master Confirmation]

 

     

     

    

 

ANNEX A

Citibank,
N.A. 

Corporate Equity Derivatives

390 Greenwich Street, 3rd Floor

New York, NY 10013

 

May [__], 2019

 

Stoneridge, Inc.

39675 MacKenzie Drive

Suite 400

Novi, Michigan 48377

 

Re: Accelerated Share Repurchase: Supplemental
Confirmation

 

Ladies and Gentlemen:

 

Reference is made to
the Master Confirmation between Citibank, N.A. (“Citibank”) and Stoneridge, Inc. (“Counterparty”)
dated May 7, 2019 (as amended or modified from time to time, the “Master Confirmation”). Capitalized terms used
without definition in this Supplemental Confirmation have the definitions assigned to them in the Master Confirmation.

 

This Supplemental Confirmation
confirms the terms and conditions of the Transaction entered into between Citibank and Counterparty on the Trade Date specified
below. This Supplemental Confirmation is a binding contract between Citibank and Counterparty as of the relevant Trade Date for
the Transaction referenced below. Citibank is acting as principal in this Transaction.

 

1.     This
Supplemental Confirmation supplements, forms part of, and is subject to the Master Confirmation. All provisions contained in the
Master Confirmation govern this Supplemental Confirmation except as expressly modified below.

 

2.     The
additional terms of the Transaction to which this Supplemental Confirmation relates are as follows:

 

	Trade Date:	[         ]
	 	 
	Prepayment Amount:	USD [ ]
	 	 
	Prepayment Date:  	[         ]
	 	 
	Reference Price Adjustment Amount:	USD [ ]
	 	 
	First Optional Termination Date:	[         ]
	 	 
	Scheduled Termination Date:	[         ]

 

    	 	Annex A-1	 

     

    

 

	Initial Share Number:	[         ] Shares; provided that if, in connection with the Transaction, Citibank is unable to borrow or otherwise acquire a number of Shares equal to the Initial Share Number for delivery to Counterparty on the Initial Settlement Date in connection with establishing a commercially reasonable Hedge Position in a commercially reasonable manner, the Initial Share Number shall be reduced to such number of Shares that Citibank is able to so borrow or otherwise acquire; provided further that if the Initial Shares are reduced as provided in the preceding proviso, then Citibank shall use commercially reasonable efforts to borrow or otherwise acquire an additional number of Shares equal to the shortfall in the Initial Shares delivered on the Initial Share Delivery Date and shall deliver such additional Shares as promptly as practicable, and all Shares so delivered shall be considered Initial Shares. All Shares delivered to Counterparty in respect of the Transaction pursuant to this paragraph shall be the “Initial Shares” for purposes of “Number of Shares to be Delivered” in the Master Confirmation. 
	 	 
	Initial Settlement Date:	[         ]
	 	 
	Ordinary Dividend:	USD [__]
	 	 
	Scheduled Ex-Dividend Date:	[         ]
	 	 
	Additional Relevant Days:	[         ]
	 	 
	Termination Price:	USD [ ]
	 	 
	Reserved Shares:	[         ]

 

Please indicate your
acknowledgment of the above by signing and returning to us a copy of this Supplemental Confirmation.

 

    	 	Annex A-2	 

     

    

 

	 	Very truly yours, 
	 	 
	 	CITIBANK, N.A.
	 	 	 
	 	By:	          
	 	Name:
	 	Authorized Representative

 

	Acknowledged:	 
	 	 
	STONERIDGE, INC.	 
	 	 	 
	By:	        	 
	Name:	 
	Title:	 

 

[Signature Page to Supplemental Confirmation] 

 

     

     

    

 

ANNEX B

 

Counterparty Settlement Provisions

 

1.           The
following Counterparty Settlement Provisions shall apply to the extent indicated under the Master Confirmation:

 

	Settlement Currency:	USD
	 	 
	Settlement Method Election:	Applicable; provided that (i) Section 7.1 of the Equity Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof and replacing it with the words “Net Share” and (ii) the Electing Party may make a settlement method election only if the Electing Party represents and warrants to Citibank in writing on the date it notifies Citibank of its election that, as of such date, the Electing Party is not aware of any material non-public information concerning Counterparty or the Shares and is electing the settlement method in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.
	 	 
	Electing Party:	Counterparty
	 	 
	Settlement Method Election Date:	The earlier of (i) the Scheduled Termination Date and (ii) the second Exchange Business Day immediately following the First Optional Termination Date (in which case the election under Section 7.1 of the Equity Definitions shall be made no later than 10 minutes prior to the open of trading on the Exchange on such second Exchange Business Day), as the case may be.
	 	 
	Default Settlement Method:	Cash Settlement
	 	 
	Forward Cash Settlement Amount:	The Number of Shares to be Delivered multiplied by the Settlement Price.
	 	 
	Settlement Price:	An amount equal to the sum of the average of the Rule 10b-18 VWAPs for the Exchange Business Days in the Settlement Period plus a commercially reasonable commission, subject to Pricing Disruption as specified in the Master Confirmation, plus interest on such amount during the Settlement Period at the rate of interest for Counterparty’s long term, unsecured and unsubordinated indebtedness, as determined by the Calculation Agent.
	 	 
	Settlement Period:	A number of consecutive Scheduled Trading Days selected by Citibank in its reasonable discretion by reference to the number of Scheduled Trading Days necessary or advisable to unwind a commercially reasonable Hedge Position in a commercially reasonable manner, beginning on the Scheduled Trading Day immediately following the earlier of (i) the Scheduled Termination Date and (ii) the date Citibank delivers notice of the Pricing Period Termination Date. 

 

    	 	Annex B-1	 

     

    

 

	Cash Settlement:	If Cash Settlement is applicable, then Counterparty shall pay to Citibank the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment Date. 
	 	 
	Cash Settlement  Payment Date:	The date one Settlement Cycle following the last day of the Settlement Period.
	 	 
	Net Share Settlement Procedures:	If Net Share Settlement is applicable, Net Share Settlement shall be made in accordance with paragraphs 2 through 7 below.  

 

2.           Net
Share Settlement shall be made by delivery on the Cash Settlement Payment Date of a number of Shares satisfying the conditions
set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such
conditions (the “Unregistered Settlement Shares”), in either case with a value equal to 101% (in the case of
Registered Settlement Shares) or 105% (in the case of Unregistered Settlement Shares) of the absolute value of the Forward Cash
Settlement Amount (which value shall, in the case of Unregistered Settlement Shares, take into account a commercially reasonable
illiquidity discount), in each case as determined by the Calculation Agent. Notwithstanding Counterparty’s election of Net
Share Settlement, if all of the conditions for delivery of either Registered Settlement Shares or Unregistered Settlement Shares
have not been met, Cash Settlement shall be applicable in accordance with paragraph 1 above.

 

3.           Counterparty
may only deliver Registered Settlement Shares pursuant to paragraph 2 above if:

 

(a)          a
registration statement covering public resale of the Registered Settlement Shares by Citibank (the “Registration Statement”)
shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise become
effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement;
a printed prospectus relating to the Registered Settlement Shares (including, without limitation, any prospectus supplement thereto,
the “Prospectus”) shall have been delivered to Citibank, in such quantities as Citibank shall reasonably have
requested, on or prior to the date of delivery;

 

(b)          the
form and content of the Registration Statement and the Prospectus (including, without limitation, any sections describing the plan
of distribution) shall be satisfactory to Citibank;

 

(c)          as
of or prior to the date of delivery, Citibank and its agents shall have been afforded a reasonable opportunity to conduct a due
diligence investigation with respect to Counterparty customary in scope for underwritten offerings of equity securities and the
results of such investigation shall be satisfactory to Citibank, in its discretion; and

 

    	 	Annex B-2	 

     

    

 

(d)          as
of the date of delivery, an agreement (the “Underwriting Agreement”) shall have been entered into with Citibank
in connection with the public resale of the Registered Settlement Shares by Citibank substantially similar to underwriting agreements
customary for underwritten offerings of equity securities, in form and substance satisfactory to Citibank, which Underwriting Agreement
shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating,
without limitation, to the indemnification of, and contribution in connection with the liability of, Citibank and its affiliates
and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters.

 

4.           If
Counterparty delivers Unregistered Settlement Shares pursuant to paragraph 2 above:

 

(a)          all
Unregistered Settlement Shares shall be delivered to Citibank (or any affiliate of Citibank designated by Citibank) pursuant to
the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof;

 

(b)          as
of or prior to the date of delivery, Citibank and any potential purchaser of any such shares from Citibank (or any affiliate of
Citibank designated by Citibank) identified by Citibank shall be afforded a commercially reasonable opportunity to conduct a due
diligence investigation with respect to Counterparty customary in scope for private placements of equity securities for companies
of similar size (including, without limitation, the right to have made available to them for inspection all financial and other
records, pertinent corporate documents and other information reasonably requested by them) and the results of such investigation
shall be satisfactory to Citibank or such potential purchaser, as the case may be, in its discretion;

 

(c)          as
of the date of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with Citibank
(or any affiliate of Citibank designated by Citibank) in connection with the private placement of such shares by Counterparty to
Citibank (or any such affiliate) and the private resale of such shares by Citibank (or any such affiliate), substantially similar
to private placement purchase agreements customary for private placements of equity securities for companies of similar size, in
form and substance commercially reasonably satisfactory to Citibank, which Private Placement Agreement shall include, without limitation,
provisions substantially similar to those contained in such private placement purchase agreements relating, without limitation,
to the indemnification of, and contribution in connection with the liability of, Citibank and its affiliates and the provision
of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters, and shall provide for
the payment by Counterparty of all fees and expenses in connection with such resale, including, without limitation, all fees and
expenses of counsel for Citibank, and shall contain representations, warranties, covenants and agreements of Counterparty reasonably
necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the Securities
Act for such resales; and

 

(d)          in
connection with the private placement of such shares by Counterparty to Citibank (or any such affiliate) and the private resale
of such shares by Citibank (or any such affiliate), Counterparty shall, if so requested by Citibank, prepare, in cooperation with
Citibank, a private placement memorandum in form and substance reasonably satisfactory to Citibank.

 

5.           Citibank,
itself or through an affiliate (the “Selling Agent”) or any underwriter(s), will sell all, or such lesser portion
as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as
defined below) (together, the “Settlement Shares”) delivered by Counterparty to Citibank pursuant to paragraph
6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such
term is defined below) of such sales, as determined by Citibank in a commercially reasonable manner, is equal to the absolute value
of the Forward Cash Settlement Amount (such date, the “Final Resale Date”). If the proceeds of any sale(s) made
by Citibank, the Selling Agent or any underwriter(s), net of any commercially reasonable fees and commissions (including, without
limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering,
together with carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, without limitation,
the covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”) exceed the
absolute value of the Forward Cash Settlement Amount, Citibank will refund, in USD or in Shares, at the election of the Counterparty,
such excess to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and, if any portion
of the Settlement Shares remains unsold, Citibank shall return to Counterparty on that date such unsold Shares.

 

    	 	Annex B-3	 

     

    

 

6.           If
the Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered
Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of the Forward
Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash Settlement
Amount being the “Shortfall” and the date on which such determination is made, the “Deficiency Determination
Date”), Counterparty shall on the Exchange Business Day next succeeding the Deficiency Determination Date (the “Makewhole
Notice Date”) deliver to Citibank, through the Selling Agent, a notice of Counterparty’s election that Counterparty
shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole
Notice Date, or (ii) deliver additional Shares. If Counterparty elects to deliver to Citibank additional Shares, then Counterparty
shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may
be (the “Makewhole Shares”), on the first Clearance System Business Day which is also an Exchange Business Day
following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that
Exchange Business Day equal to the Shortfall. Such Makewhole Shares shall be sold by Citibank in accordance with the provisions
above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds
from the sale of any Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then Counterparty shall,
at its election, either make such cash payment or deliver to Citibank further Makewhole Shares until such Shortfall has been reduced
to zero.

 

7.           Notwithstanding
the foregoing, in no event shall the aggregate number of Settlement Shares and Makewhole Shares be greater than the Reserved Shares
minus the amount of any Shares actually delivered by Counterparty under any other Transaction(s) under this Master Confirmation
(the result of such calculation, the “Capped Number”). Counterparty represents and warrants (which shall be
deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is equal to or less than the number
of Shares determined according to the following formula:

 

A – B

 

	Where	A = the number of authorized but unissued shares of the Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and
	 	 
	 	B = the maximum number of Shares required to be delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than Transactions in the Shares under this Master Confirmation) with all third parties that are then currently outstanding and unexercised.

 

“Reserved
Shares”, for each Transaction, shall be set forth in the related Supplemental Confirmation.

 

If at any time, as
a result of this paragraph 7, Counterparty fails to deliver to Citibank any Settlement Shares, Counterparty shall, to the extent
that Counterparty has at such time authorized but unissued Shares not reserved for other purposes, promptly notify Citibank thereof
and deliver to Citibank a number of Shares not previously delivered as a result of this paragraph 7. Counterparty agrees to use
its best efforts to cause the number of authorized but unissued Shares to be increased, if necessary, to an amount sufficient to
permit Counterparty to fulfill its obligation to deliver any Settlement Shares.

 

    	 	Annex B-4Exhibit 4.2

 

Execution Version

 

 

 

 

 

THE ROYAL BANK OF SCOTLAND GROUP PLC

 

as Company

 

and

 

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

 

as Trustee

 

 

FIFTH SUPPLEMENTAL INDENTURE

 

dated as of May 8, 2019

 

to the

 

AMENDED AND RESTATED INDENTURE

 

dated as of December 13, 2017

 

$1,250,000,000 4.445% Fixed Rate/Floating
Rate Senior Notes due 2030

 

 

    	 

    	 

    

This FIFTH SUPPLEMENTAL INDENTURE, dated
as of May 8, 2019, among THE ROYAL BANK OF SCOTLAND GROUP PLC, a corporation incorporated in Scotland with registered number SC045551,
as issuer (the “Company”) and THE BANK OF NEW YORK MELLON, acting through its London Branch, a banking corporation
duly organized and existing under the laws of the State of New York, as trustee (the “Trustee”) having its Corporate
Trust Office at One Canada Square, London E14 5AL.

 

WITNESSETH:

 

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

 

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

 

WHEREAS, the Company desires to issue, as
a single series of Senior Debt Securities under the Base Indenture, $1,250,000,000 4.445% Fixed Rate/Floating Rate Senior Notes
due 2030 (the “Senior Notes”) to be issued pursuant to this Fifth Supplemental Indenture dated as of May 8,
2019 (the “Fifth Supplemental Indenture” and, together with the Base Indenture, the “Indenture”);

 

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

 

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

 

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

 

    2 

     

    

WHEREAS, the Company has requested that
the Trustee execute and deliver this Fifth Supplemental Indenture, and whereas all actions required by it to be taken in order
to make this Fifth Supplemental Indenture a valid, binding and enforceable instrument in accordance with its terms have been taken
and performed, and the execution and delivery of this Fifth Supplemental Indenture has been duly authorized in all respects; and

 

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

 

Article
1

DEFINITIONS

 

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

 

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

 

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

 

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

 

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

 

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

 

Article
2

THE SENIOR DEBT SECURITIES

 

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

 

(a)       The
title of the Senior Notes shall be the “4.445% Fixed Rate/Floating Rate Senior Notes due 2030”;

 

(b)       The
aggregate principal amount of the Senior Notes that may be authenticated and delivered under the Indenture shall not initially
exceed $1,250,000,000 (except as otherwise provided in the Indenture);

 

    3 

     

    

(c)       Principal
on the Senior Notes shall be payable on May 8, 2030 (the “Maturity Date”), unless earlier redeemed in accordance
with the provisions set forth in Article 11 of the Indenture;

 

(d)       The
Senior Notes shall be issued in global registered form on or about May 8, 2019;

 

(e)       From
(and including) May 8, 2019, to (but excluding) May 8, 2029 (such period, the “Fixed Rate Period”), interest
on the Senior Notes will be payable at a rate of 4.445% per annum (the “Fixed Interest Rate”). During the Fixed
Rate Period, interest on the Senior Notes will be payable semi-annually in arrear on May 8 and November 8 of each year, beginning
on November 8, 2019 (each, a “Fixed Rate Period Interest Payment Date”) to (and including) May 8, 2029.

 

From (and including) May 8, 2029,
to (but excluding) the Maturity Date (such period, the “Floating Rate Period”), the interest rate on the Senior
Notes will be equal to the three-month U.S. dollar London interbank offered rate (“LIBOR”), as determined by
the Calculation Agent on the applicable Interest Determination Date, plus 1.871% per annum, accruing from May 8, 2029, to (but
excluding) the Maturity Date. During the Floating Rate Period, interest on the Senior Notes will be payable quarterly in arrear
on August 8, 2029, November 8, 2029, February 8, 2030, and May 8, 2030, beginning on August 8, 2029, to and (including) the Maturity
Date (each, a “Floating Rate Period Interest Payment Date” and, together with each Fixed Rate Period Interest
Payment Date, each an “Interest Payment Date”) and will be reset quarterly on May 8, 2029, August 8, 2029, November
8, 2029 and February 8, 2030, beginning on May 8, 2029 (each an “Interest Reset Date”).

 

During the Fixed Rate Period:

 

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

 

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

 

During the Floating Rate Period:

 

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

 

    4 

     

    

period will be the period beginning
on (and including) a Floating Rate Period Interest Payment Date and ending on (but excluding) the next succeeding Floating Rate
Period Interest Payment Date; provided that the first floating rate interest period will begin May 8, 2029 and will
end on (but exclude) the first Floating Rate Period Interest Payment Date.

 

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

 

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

 

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

 

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

 

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

 

(j)       The
Senior Notes shall not be redeemable except as provided in Article 11 of the Base Indenture as amended by ‎Section
3.07 and ‎Section 3.08 of this Fifth Supplemental Indenture.
The Senior Notes shall not be redeemable at the option of the Holders at any time. In connection with any redemption of Senior
Notes pursuant to Section 11.08 of the Base Indenture, the date referenced therein shall be May 8, 2019.

 

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

 

    5 

     

    

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(u)       The
Calculation Agent for the Senior Notes is National Westminster Bank plc or its successor appointed by the Company, pursuant to
a calculation agent agreement expected to be entered into on May 8, 2019;

 

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

 

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

 

    6 

     

    

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

 

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

 

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

 

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

 

(w)       Notwithstanding
the provisions described above under ‎Section 2.01(v) above,
if the Company (in consultation with the Calculation Agent to the

 

    7 

     

    

extent practicable) determines
that a Benchmark Event has occurred or considers that there may be a Successor Rate, in either case, when any rate of interest
for a Floating Rate Interest Period (or the relevant component part thereof) remains to be determined by reference to LIBOR, then
the following provisions will apply:

 

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

 

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

 

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

 

If the Independent Adviser (in
consultation with the Company) determines (or, if the Company is unable to appoint an Independent Adviser, or the Independent Adviser
fails to determine whether an Adjustment Spread should be applied, the Company determines) that an Adjustment Spread is required
to be applied to the Successor Rate or the Alternative Reference Rate, as applicable, and determines the quantum of, or a formula
or methodology for determining, such Adjustment Spread, then such Adjustment Spread shall be applied to the Successor Rate or the
Alternative Reference Rate, as applicable. If the Independent Adviser is, or the Company is, as the case may be, unable to

 

    8 

     

    

determine the quantum of, or
a formula or methodology for determining, such Adjustment Spread, then such Successor Rate or Alternative Reference Rate, as applicable,
will apply without an Adjustment Spread.

 

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

 

    9 

     

    

deemed
consent in connection with any supplemental indenture or amendment which may be necessary to effect the Successor Rate or Alternative
Reference Rate.

 

By its acquisition of Senior
Notes, each Holder of Senior Notes waives any and all claims against the Trustee, the Calculation Agent and the principal paying
agent for, agrees not to initiate a suit against the Trustee, the Calculation Agent and the principal paying agent in respect of,
and agrees that neither the Trustee, the Calculation Agent or the principal paying agent will be liable for, any action that the
Trustee, the Calculation Agent or the paying agent, as the case may be, takes, or abstains from taking, in each case in accordance
with this ‎Section 2.01(w). By its acquisition of Senior Notes, each Holder of Senior Notes agrees that neither the Trustee,
the Calculation Agent or the principal paying agent will have any obligation to determine any Successor Rate, Alternative Reference
Rate or Adjustment Spread (including any adjustments thereto), including in the event of any failure by us to determine any Successor
Rate, Alternative Reference Rate or Adjustment Spread.

 

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

 

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

 

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

 

(y)       The
Company may issue additional Senior Notes (“Additional Senior Notes”) after the date hereof having the same
ranking and same interest rate, Maturity Date, redemption terms and other terms as the Senior Notes except for the price to the
public and issue date, provided however that if such additional notes have the same CUSIP, ISIN and/or Common Code as the Outstanding
Senior Notes, such additional notes must be fungible with the Senior Notes for U.S. federal income tax purposes. Any such Additional
Senior

 

    10 

     

    

Notes, together with the Senior
Notes will constitute a single series of securities under the Indenture. There is no limitation on the amount of notes or other
debt securities that the Company may issue under the Indenture.

 

Article
3

AMENDMENTS TO THE BASE INDENTURE

 

Section 3.01.Addition of Definitions.
With respect to the Senior Notes only, Section 1.01 of the Base Indenture is amended to include the following definitions (which
shall be deemed to arise in Section 1.01 in their proper alphabetical order):

 

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

 

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

 

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

 

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

 

“Alternative
Reference Rate” means the reference rate (and related alternative screen page or source, if available) that the Independent
Adviser or the Company (as applicable) determines

 

    11 

     

    

has
replaced LIBOR in customary market usage for the purposes of determining floating rates of interest in respect of securities denominated
in U.S. dollars, or, if the Independent Adviser or the Company (as applicable) determines that there is no such rate, such other
rate as the Independent Adviser or the Company (as applicable) determines, each as in our own discretion acting in good faith,
is most comparable to LIBOR.

 

“Benchmark Event” means:

 

		(i)	LIBOR has ceased to be published on Reuters Page LIBOR 01 as a result of LIBOR ceasing to be calculated or administered; or

 

		(ii)	a public statement by the administrator of LIBOR that it will cease publishing LIBOR permanently or indefinitely (in circumstances
where no successor administrator has been appointed that will continue publication of LIBOR); or

 

		(iii)	a public statement by the supervisor of the administrator of LIBOR that LIBOR has been or will be permanently or indefinitely
discontinued; or

 

		(iv)	a public statement by the supervisor of the administrator of LIBOR that means that LIBOR will be prohibited from being used
or that its use will be subject to restrictions or adverse consequences; or

 

		(v)	it has or will become unlawful for the Calculation Agent or the Company to calculate any payments due to be made to any noteholder
using LIBOR (including, without limitation, under the Benchmark Regulation (EU) 2016/1011, if applicable).

 

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

 

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

 

    12 

     

    

“Calculation
Agent” shall mean National Westminster Bank Plc or its successor appointed by the Company, pursuant to a calculation
agent agreement expected to be entered into on May 8, 2019.

 

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

 

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

 

“Fifth
Supplemental Indenture” means this Fifth Supplemental Indenture under the Amended and Restated Indenture, dated as of
May 8, 2019, among the Company and the Trustee.

 

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

 

“Floating
Rate Interest Period” means during the Floating Rate Period, the period beginning on (and including) a Floating Rate
Period Interest Payment Date and ending on (but excluding) the next succeeding Floating Rate Period Interest Payment Date;
provided that the first floating rate interest period will begin on May 8, 2029 and will end on (but exclude) the first
Floating Rate Period Interest Payment Date.

 

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

 

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

 

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

 

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

 

“Issue
Date” means May 8, 2019.

 

    13 

     

    

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

 

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

 

(i)       at
the time that any Loss Absorption Regulation becomes effective, and as a result of such Loss Absorption Regulation becoming so
effective, in each case with respect to the Company and/or the Regulatory Group, on or after the issue date of the Senior Notes,
the Senior Notes are or, in the Company’s opinion or in the opinion of the PRA are likely not to qualify in full towards
the Company’s and/or the Regulatory Group’s (A) own funds and eligible liabilities and/or (B) loss absorbing capacity
instruments; or

 

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

 

in each case as
such minimum requirements are applicable to the Company and/or the Regulatory Group and determined in accordance with, and pursuant
to, the relevant Loss Absorption Regulations; provided that in the case of (i) and (ii) above, a Loss Absorption Disqualification
Event shall not occur where the exclusion of the Senior Notes from the relevant minimum requirement(s) is due to the remaining
maturity of the Senior Notes being less than any period prescribed by any applicable eligibility criteria for such minimum requirements
under the relevant Loss Absorption Regulations effective with respect to the Company and/or the Regulatory Group on the issue date
of the Senior Notes.

 

“Loss
Absorption Regulations” means, at any time, the laws, regulations, requirements, guidelines, rules, standards and policies
relating to minimum requirements for own funds and eligible liabilities and/or loss absorbing capacity instruments of the United
Kingdom, the PRA, the United Kingdom resolution authority, the Financial Stability Board and/or of the European

 

    14 

     

    

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    15 

     

    

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

 

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

 

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

 

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

 

“Successor
Rate” means the reference rate (and related alternative screen page or source, if available) that the Independent Adviser
or the Company (as applicable) determines is a successor to or replacement of LIBOR (for the avoidance of doubt, whether or not
LIBOR has ceased to be available) which is recommended by any Relevant Nominating Body.

 

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

 

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

 

		(a)	all Senior Debt Securities theretofore authenticated
and delivered (other than (A) Senior Debt Securities which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 3.06 and (B) Senior Debt Securities for whose payment money has theretofore been deposited in trust
or segregated and

 

    16 

     

    

held in trust by the Company
and thereafter repaid to the Company or discharged from such trust, as provided in Section 10.03) have been delivered to the Trustee
for cancellation;

 

		(b)	the Company has paid or caused to be paid all other
sums payable hereunder by the Company with respect to the Senior Debt Securities; and

 

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

 

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

 

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

 

Section 5.01.Events of
Default. “Event of Default”, wherever used herein with respect to the Senior Debt Securities, means the
making of an order by a court of competent jurisdiction which is not successfully appealed within 30 days of the making of such
order, or valid adoption by the shareholders of the Company of an effective resolution, for the winding-up of the Company (other
than under or in connection with a scheme of amalgamation or reconstruction not involving a bankruptcy or insolvency). The exercise
of any U.K. bail-in power by the relevant U.K. authority shall not constitute a default or an Event of Default under this Section
5.01 or a Default under Section 5.03.

 

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

 

If the Senior Debt Securities
become due and payable and the Company fails to pay such amounts (or any damages awarded for breach of any obligations in respect
of the Senior Debt Securities or this Amended and Restated Indenture) forthwith upon demand,

 

    17 

     

    

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

 

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

 

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

 

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

 

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

 

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

 

Subject to applicable law, the Trustee
(acting on behalf of the Holders) and the Holders of the Senior Debt Securities by their acceptance thereof will be deemed to have
waived to the fullest extent permitted by law any right of set-off, counterclaim or combination of accounts with respect to the
Senior Debt Securities, the Fifth Supplemental Indenture or this Amended and Restated Indenture (or between the Company’s
obligations under or in

 

    18 

     

    

respect of any Senior Debt Security
and any liability owed by a Holder to the Company) that they (or the Trustee acting on their behalf) might otherwise have against
the Company, whether before or during any winding-up, liquidation or administration of the Company. Notwithstanding the above,
if any of such rights and claims of any such Holder (or the Trustee acting on behalf of such Holders) against the Company are discharged
by set-off, such Holder (or the Trustee acting on behalf of such Holders) will immediately pay an amount equal to the amount of
such discharge to the Company or, in the event of any winding-up, liquidation or administration of the Company, the liquidator
or administrator (or other relevant insolvency official), as the case may be, to be held on trust for the Senior Creditors and
until such time as payment is made will hold a sum equal to such amount on trust for the Senior Creditors and accordingly such
discharge shall be deemed not to have taken place.

 

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

 

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

 

    19 

     

    

principal of, or any interest on,
the Senior Debt Securities of any such series would have otherwise been payable.

 

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

 

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

 

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

 

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

 

Section 3.07.Optional Redemption
Due to Changes in Tax Treatment. With respect to the Senior Notes only, Section 11.08 of the Base Indenture is

 

    20 

     

    

amended to replace in the first paragraph
(i) the word “Unless” with the words “Subject to Sections 11.04 and 11.11 and unless” and (ii) the words
“on any Interest Payment Date,” with “at any time during the Fixed Rate Period and thereafter only on a Floating
Rate Period Interest Payment Date”.

 

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

 

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

 

Any redemption notice will state:

 

		a)	the Redemption Date;

 

		b)	the Redemption Price;

 

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

 

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

 

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

 

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

 

Section 11.09.Optional
Redemption. Subject to Section 11.11, the Company may, at the Company’s option and in its sole discretion, redeem the
Senior Debt Securities, in whole but not in part, on May 8, 2029, at a Redemption Price equal to 100% of the principal amount of
the Senior

 

    21 

     

    

Debt Securities of any series together
with any accrued but unpaid interest to, but excluding, the Redemption Date.

 

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

 

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

 

Section 11.11. Conditions
to Redemption and Repurchase. Notwithstanding any other provision, the Company may only redeem Senior Debt Securities of any
series prior to their Maturity Date (as provided for in Section 11.08, Section 11.09 and Section 11.10) or repurchase Senior Debt
Securities of any series (and give notice thereof to the Holders of such series of Senior Debt Securities in the case of redemption)
if the Company has obtained the prior consent of the PRA, to the extent such consent is at the relevant time and in the relevant
circumstances required (if at all) by the Loss Absorption Regulations or applicable laws or regulations in effect in the United
Kingdom.

 

Article
4

MISCELLANEOUS

 

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

 

    22 

     

    

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

 

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

 

Section 4.04.Concerning the Trustee.
The Trustee does not make any representations as to the validity or sufficiency of this Fifth Supplemental Indenture. The recitals
and statements herein are deemed to be those of the Company and not the Trustee. In entering into this Fifth Supplemental Indenture,
the Trustee shall be entitled to the benefit of every provision of the Base Indenture relating to the conduct of or affecting the
liability of or affording protection to the Trustee.

 

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

 

    23 

     

    

relevant to execution) the respective
jurisdictions of the Company and the Trustee, as the case may be.

 

Section 4.06.Reparability.
In case any provision contained in this Fifth Supplemental Indenture shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 4.07.Counterparts.
This Fifth Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts
shall together constitute but one and the same instrument.

 

[Signature Page Follows]

 

    24 

     

    

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

 

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

 

 

	 	THE BANK OF NEW YORK MELLON, LONDON BRANCH, as Trustee
	 	 
	 	 
	 	By:	/s/ Thomas Vanson
	 	 	Name: 	Thomas Vanson
	 	 	Title: 	Authorised Signatory

 

 

[Signature Page to Fifth Supplemental
Indenture]

 

     

     

    

EXHIBIT A

 

FORM OF SENIOR NOTES

 

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

 

CUSIP No. [●]

ISIN No. [●]

 

THE ROYAL BANK OF SCOTLAND GROUP plc

 

[●]%
Fixed rate/floating rate SENIOR Notes due 2030

(“SENIOR NOTES”)

 

	No. [●]	$[●]

 

 

THE ROYAL BANK OF SCOTLAND GROUP plc (herein
called the “Company,” which term includes any successor person under the Indenture (as defined on the reverse
hereof)), for value received, hereby promises to pay to CEDE & CO., or registered assignees, the principal sum of $[●]
([●] million dollars) on May 8, 2030 (the “Maturity Date”), or on such earlier date as the principal hereof
may become due in accordance with the terms hereof and to pay interest thereon:

 

(1) from (and including) May 8, 2019 (the
“Issue Date”), to (but excluding) May 8, 2029 (such period, the “Fixed Rate Period”), semi-annually
in arrear on May 8 and November 8 of each year, beginning on November 8, 2019, to (and including) May 8, 2029 (each, a “Fixed
Rate Period Interest Payment Date”), at a rate of 4.445% per annum (the “Fixed Interest Rate”); and

 

(2) from (and including) May 8, 2029 to
(but excluding) the Maturity Date (such period, the “Floating Rate Period”), quarterly in arrear on August 8,
2029, November 8, 2029, February 8, 2030 and May 8, 2030, beginning on August 8, 2029, to (and including)

 

    
(Face of Security continued on next page)
 

     

    

the
Maturity Date (each, a “Floating Rate Period Interest Payment Date” and, together with each Fixed Rate Period
Interest Payment Date, each an “Interest Payment Date”), equal to the three-month U.S. dollar London interbank
offered rate (“LIBOR”), as determined by the Calculation Agent on the applicable Interest Determination Date,
plus 1.871% per annum, accruing from May 8, 2029, to (but excluding) the Maturity Date and which interest rate will be reset quarterly
on May 8, 2029, August 8, 2029, November 8, 2029 and February 8, 2030, beginning on May 8, 2029 (each an “Interest Reset
Date”).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Notwithstanding the provisions relating
to the determination of LIBOR described above, if the Company (in consultation with the Calculation Agent to the extent practicable)
determines that a Benchmark Event has occurred or considers that there may be a Successor Rate, in either case, when any rate of
interest for a Floating Rate Interest Period (or the relevant component part thereof) remains to be determined by reference to
LIBOR, then the following provisions will apply:

 

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

 

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

 

    
(Face of Security continued on next page)
 

     

    

Determination Date, or, in
the case of the initial Interest Determination Date, the rate of interest will be equal to the Fixed Interest Rate.

 

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

 

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

 

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

 

    
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Section
1.05 and Section 1.06 of the Base Indenture. By its acquisition of this Senior Note, each Holder and Beneficial Owner of this
Senior Note and each subsequent Holder and Beneficial Owner acknowledges, accepts, agrees to be bound by, and consents to, the
Independent Adviser or the Company’s, as applicable, determination of the Successor Rate, Alternative Reference Rate or
Adjustment Spread, as applicable, any changes in connection therewith as contemplated by this provision, and to any amendment
or alteration of the terms of the Senior Note, including an amendment of the amount of interest due on the Senior Note, as may
be required in order to give effect to this provision. The Trustee shall be entitled to rely on this deemed consent in connection
with any supplemental indenture or amendment which may be necessary to effect the Successor Rate or Alternative Reference Rate.

 

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

 

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

 

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

 

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

 

    
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result
of the replacement of LIBOR with the Successor Rate or the Alternative Reference Rate, as applicable, and is the spread, formula
or methodology which:

 

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

 

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

 

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

 

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

 

“Benchmark Event” means:

 

		(i)	LIBOR has ceased to be published on Reuters Page LIBOR 01 as a result of LIBOR ceasing to be calculated or administered; or

 

		(ii)	a public statement by the administrator of LIBOR that it will cease publishing LIBOR permanently or indefinitely (in circumstances
where no successor administrator has been appointed that will continue publication of LIBOR); or

 

		(iii)	a public statement by the supervisor of the administrator of LIBOR that LIBOR has been or will be permanently or indefinitely
discontinued; or

 

    
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		(iv)	a public statement by the supervisor of the administrator of LIBOR that means that LIBOR will be prohibited from being used
or that its use will be subject to restrictions or adverse consequences; or

 

		(v)	it has or will become unlawful for the Calculation Agent or the Company to calculate any payments due to be made to any noteholder
using LIBOR (including, without limitation, under the Benchmark Regulation (EU) 2016/1011, if applicable).

 

“Floating Rate Interest Period”
means during the Floating Rate Period, the period beginning on (and including) a Floating Rate Period Interest Payment Date and
ending on (but excluding) the next succeeding Floating Rate Period Interest Payment Date; provided that the first floating
rate interest period will begin on May 8, 2029 and will end on (but exclude) the first Floating Rate Period Interest Payment Date.

 

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

 

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

 

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

 

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

 

“Successor Rate” means
the reference rate (and related alternative screen page or source, if available) that the Independent Adviser or the Company (as
applicable) determines is a successor to or replacement of LIBOR (for the avoidance of doubt, whether or not LIBOR has ceased to
be available) which is recommended by any Relevant Nominating Body.

 

During the Fixed Rate Period:

 

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

 

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

 

During the Floating Rate Period:

 

(iii)       Interest
will be calculated on the basis of the actual number of days in each interest period, assuming a 360-day year. An interest period
will be the period beginning on (and including) a Floating Rate Period Interest Payment Date and ending on (but excluding) the
next succeeding Floating Rate Period Interest Payment Date; provided that the first floating rate interest period will
begin on May 8, 2029 and will end on (but exclude) the first Floating Rate Period Interest Payment Date.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Dated:
May 8, 2019

 

	 	Executed by

 

THE ROYAL BANK OF SCOTLAND GROUP PLC

 

	 	 
	 	By: 	
	 	 	 Name:
Title: Authorized Signatory

 

 

  

     

     

    

CERTIFICATE
OF AUTHENTICATION

 

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

 

Dated:
May 8, 2019

 

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

 

 

     

     

    

[Reverse
of Note]

 

This
note is one of a duly authorized issue of securities of the Company (herein called the “Senior Notes”) issued
and to be issued in one or more series under an amended and restated Indenture dated as of December 13, 2017 (the “Amended
and Restated Indenture”), as amended and supplemented in respect of the Senior Notes by the Fifth Supplemental Indenture
dated as of May 8, 2019 (the “Fifth Supplemental Indenture” and, together with the Base Indenture, the “Indenture”),
in each case among the Company, as issuer, and The Bank of New York Mellon, acting through its London Branch as trustee (herein
called the “Trustee,” which term includes any successor trustee under the Indenture). Reference is hereby made
to the Indenture and all indentures supplemental thereto for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holders of the Senior Notes and of the terms upon which the Senior
Notes are, and are to be, authenticated and delivered.

 

This
Senior Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $1,250,000,000.

 

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

 

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

 

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

 

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

 

     

     

    

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

 

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

 

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

 

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

 

No
remedy against the Company, other than as referred to in Article 5 of the Indenture, shall be available to the Trustee or the
Holders of the Senior Notes whether for

 

    
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the
recovery of amounts owing in respect of such Senior Notes or under the Indenture or in respect of any breach by the Company of
its obligations under the Indenture or in respect of the Senior Notes, except that the Trustee and the Holders shall have such
rights and powers as they are entitled to have under the Trust Indenture Act, including the Trustee’s prior lien on any
amounts collected following a Default or Event of Default for payment of the Trustee’s fees and expenses, and provided that
any payments on the Senior Notes are subject to the subordination provisions set forth in the Indenture.

 

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

 

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

 

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

 

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

 

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

 

(iv)
the Holder or the beneficial owner of the Senior Note or the payment on such Senior Note failed to comply with a request by the
Company or its liquidator or other authorized person addressed to the Holder (x) to provide information concerning the nationality,
residence or identity of the Holder or such beneficial owner or (y) to make

 

    
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any
declaration or other similar claim to satisfy any requirement, which in the case of (x) or (y), is required or imposed by a statute,
treaty, regulation or administrative practice of the U.K. Taxing Jurisdiction as a precondition to exemption or relief from all
or part of such deduction or withholding,

 

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

 

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

 

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

 

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

 

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

 

Whenever
in the Indenture there is mentioned, in the context of Senior Notes, the payment of the principal, premium, if any, or interest
on, or in respect of, any Senior Notes, such mention shall be deemed to include mention of the payment of Additional Amounts provided
for herein to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof pursuant to
the provisions of the foregoing paragraph and as if express mention of the payment of Additional Amounts (if applicable) were
made in any provisions hereof where such express mention is not made.

 

The
Company will have the option to redeem Senior Notes of this series, in whole but not in part, on not less than 5 business days
nor more than 60 calendar days’ notice, at any time during the Fixed Rate Period and thereafter only on a Floating Rate
Period Interest Payment Date, at a Redemption Price equal to 100% of the principal amount, together with accrued but unpaid interest,
if any, in respect of the Senior Notes to the date fixed for redemption, if, at any time, the Company shall determine that as
a result of a

 

    
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change
in or amendment to the laws or regulations of the U.K. Taxing Jurisdiction (including any treaty to which a U.K. Taxing Jurisdiction
is a party), or any change in the official application or interpretation of such laws or regulations (including a decision of
any court or tribunal) which change or amendment becomes effective on or after May 8, 2019:

 

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

 

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

 

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

 

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

 

The
Company may, at the Company’s option and in its sole discretion, redeem Senior Notes of this series, in whole but not in
part, on May 8, 2029, at a Redemption Price equal to 100% of the principal amount of the Senior Notes of this series together
with any accrued but unpaid interest to, but excluding, the Redemption Date.

 

The
Company may, at the Company’s option and in its sole discretion, redeem Senior Notes of this series, in whole but not in
part, at any time during the Fixed Rate Period and thereafter only on a Floating Rate Period Interest Payment Date, at a Redemption
Price equal to 100% of the principal amount of the Senior Notes of this series together with any accrued but unpaid interest to,
but excluding, the Redemption Date, if the Company determines that a Loss Absorption Disqualification Event has occurred and is
continuing. Before the publication of any notice of redemption pursuant to a Loss Absorption Disqualification Event, the Company
shall deliver to the Trustee a certificate signed by two authorised signatories of the Company stating that, in such signatories’
belief, the condition for redemption has occurred and is continuing as at the date of the certificate, and the Trustee is entitled
to conclusively rely on and shall accept such certificate as sufficient evidence of such occurrence, in which event it shall be
conclusive and binding on the Holders.

 

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

 

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

 

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

 

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

 

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

 

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

 

Notwithstanding
any other term of any Senior Notes, the Indenture, or any other agreements, arrangements, or understandings between the Company
and any Holder or Beneficial Owner, by its acquisition of Senior Notes, each Holder (including each Beneficial Owner) of the Senior
Notes acknowledges, accepts, agrees to be bound by and consents to the exercise of any U.K. bail-in power by the relevant U.K.
authority that

 

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

 

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

 

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

 

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

 

(b)       to
the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate a suit
against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes, or

 

    
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abstains
from taking, in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. authority with respect
to the Senior Notes; and

 

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

 

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

 

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

 

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

 

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

 

(vi)       authorized,
directed and requested DTC and any direct participant in DTC or other intermediary through which it holds such Senior Notes to
take any and all necessary action, if required, to implement the exercise of any U.K. bail-in power with respect to the Senior
Notes as it may be imposed, without any further action or direction on the part of such Holder or Beneficial Owner.

 

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

 

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

 

    
(Reverse of Security continued on next page)
 

     

    

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

 

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

 

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

 

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

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