Document:

EX-4.1

 Exhibit 4.1 

Execution Version 
  

 
  

HSBC HOLDINGS PLC, 
 as Issuer 

THE BANK OF NEW YORK MELLON, LONDON BRANCH, 

as Trustee 
 HSBC BANK USA,
NATIONAL ASSOCIATION, 
 as Paying Agent, Registrar and Calculation Agent 

 
  

EIGHTH SUPPLEMENTAL INDENTURE 

Dated as of June 27, 2018 
  

 
 To the Senior
Indenture, dated as of August 26, 2009, 
 among the Issuer, the Trustee and the Paying Agent, Registrar and Exchange Rate Agent 

£1,000,000,000 2.175% Resettable Senior Unsecured Notes due 2023 

 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 ARTICLE 1 DEFINITIONS
	  	 	3	 
			
	 SECTION
	  	 1.01. Definition of Terms
	  	 	3	 
	 SECTION
	  	 1.02. Supplemental Definitions
	  	 	4	 
		
	 ARTICLE 2 THE NOTES
	  	 	8	 
			
	 SECTION
	  	 2.01. Terms Applicable to the Notes
	  	 	8	 
		
	 ARTICLE 3 INTEREST CALCULATION IN RESPECT OF THE NOTES
	  	 	9	 
			
	 SECTION
	  	 3.01. Interest Rate on the Notes
	  	 	9	 
	 SECTION
	  	 3.02. Calculation Agent
	  	 	10	 
		
	 ARTICLE 4 AMENDMENTS TO THE BASE INDENTURE APPLICABLE TO THE NOTES
ONLY
	  	 	12	 
			
	 SECTION
	  	 4.01. Redemption of Debt Securities
	  	 	12	 
	 SECTION
	  	 4.02. Events of Default and Defaults
	  	 	12	 
		
	 ARTICLE 5 MISCELLANEOUS
	  	 	15	 
			
	 SECTION
	  	 5.01. Effect of this Supplemental Indenture; Ratification and Integral Part
	  	 	15	 
	 SECTION
	  	 5.02. Priority
	  	 	15	 
	 SECTION
	  	 5.03. Successors and Assigns
	  	 	15	 
	 SECTION
	  	 5.04. Subsequent Holders’ Agreement
	  	 	15	 
	 SECTION
	  	 5.05. Compliance
	  	 	16	 
	 SECTION
	  	 5.06. Relation to Calculation Agent Agreement
	  	 	16	 
	 SECTION
	  	 5.07. Governing Law
	  	 	16	 
	 SECTION
	  	 5.08. Counterparts
	  	 	16	 
	 SECTION
	  	 5.09. Entire Agreement
	  	 	16	 

 EXHIBIT A – Form of 2.175% Resettable Global Security 

 EIGHTH SUPPLEMENTAL INDENTURE, dated as of June 27, 2018 (this “Supplemental
Indenture”), by and among HSBC Holdings plc, a public limited company duly organized and existing under the laws of England and Wales (the “Company”), having its principal office at 8 Canada Square, London E14 5HQ, England,
The Bank of New York Mellon, London Branch, a New York banking corporation, as trustee (the “Trustee”), having its principal corporate trust office at 101 Barclay Street, Floor 7-East, New
York, New York 10286, and HSBC Bank USA, National Association, as Paying Agent, Registrar and Calculation Agent (together, the “Agent”), having its principal office at 452 Fifth Avenue, New York, New York 10018. 

WITNESSETH: 

WHEREAS, the Company, the Trustee and the Agent have executed and delivered an indenture dated as of August 26, 2009 (as amended
or supplemented from time to time, the “Base Indenture” and, together with this Supplemental Indenture, the “Indenture”), to provide for the issuance of the Company’s Debt Securities; 

WHEREAS, Section 9.01(5) of the Base Indenture provides that the Company and the Trustee may enter into a supplemental indenture
to establish the forms or terms of the Debt Securities of any series without the consent of the Holders as permitted under Sections 2.01 and 3.01 of the Base Indenture; 

WHEREAS, the Company desires to issue £1,000,000,000 2.175% Resettable Senior Unsecured Notes due 2023 (such series of Debt
Securities, the “Notes”) under the Base Indenture (as supplemented and amended by this Supplemental Indenture); 

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

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

 ARTICLE 1 

DEFINITIONS 

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

(a)    capitalized terms used herein but not otherwise defined shall have the meanings assigned to them in
the Base Indenture; 
 (b)    all other terms used herein that are defined in the Trust Indenture Act,
either directly or by reference therein, have the meanings assigned to them therein; 
 (c)    the
singular includes the plural and vice versa; 
 (d)    the use of “or” is not intended to be
exclusive unless expressly indicated otherwise; 
 (e)    the section headings herein are for convenience
only and shall not affect the construction of this Supplemental Indenture; 

  
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 (f)    wherever the words “include,”
“includes” or “including” are used in this Supplemental Indenture, they shall be deemed to be followed by the words “without limitation”; and 

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

SECTION 1.02.    Supplemental Definitions. The following definitions shall apply to the Notes
only: 
 (a)    “Adjusted Reset Date” has the meaning set forth in clause (b) of
Section 3.01 of this Supplemental Indenture; 
 (b)    “Agent” has the meaning set
forth in the introduction to this Supplemental Indenture; 
 (c)    “Alternative Base
Rate” means the rate that has replaced LIBOR in customary market usage for determining floating interest rates in respect of bonds denominated in Pounds Sterling or, if the Independent Financial Adviser or the Company (in consultation with
the Calculation Agent and acting in good faith and a commercially reasonable manner), as applicable, determines that there is no such rate, such other rate as the Independent Financial Adviser or the Company (in consultation with the Calculation
Agent and acting in good faith and a commercially reasonable manner), as applicable, determines in its or the Company’s sole discretion is most comparable to LIBOR.; 

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

(e)    “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and
resolution of credit institutions and investment firms, as amended, supplemented or replaced from time to time; 

(f)    “Calculation Agent” means HSBC Bank USA, National Association, or its successor
appointed by the Company pursuant to the Calculation Agent Agreement; 
 (g)    “Calculation
Agent Agreement” means the calculation agent agreement dated as of June 27, 2018 between the Company and the Calculation Agent; 

(h)    “Calculation Changes” has the meaning set forth in clause (c) of
Section 3.02 of this Supplemental Indenture; 
 (i)    “Capital Instruments
Regulations” means any regulatory capital rules, regulations or standards which are applicable to the Company at any time (on a solo or consolidated basis and including any implementation thereof or supplement thereto by the PRA from time
to time) and which lay down the requirements to be fulfilled by financial instruments for inclusion in the Company’s regulatory capital (on a solo or consolidated basis) as may be required by (i) the CRR and/or (ii) the CRD, including
(for the avoidance of doubt) any delegated acts and implementing acts made by the European Commission (such as regulatory technical standards and implementing technical standards) and European Banking Authority guidelines all as amended from time to
time and as implemented in the UK; 

  
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 (j)    “Clearing Systems” means Clearstream
Luxembourg and Euroclear; 
 (k)    “Clearing System Business Day” means a day on which
each Clearing System for which any global security is being held is open for business; 

(l)    “Clearstream Luxembourg” means Clearstream Banking S.A.; 

(m)    “Common Depositary” means HSBC Bank plc, or any successor in such capacity, as
common depositary for the Clearing Systems; 
 (n)    “Company” has the meaning set
forth in the introduction to this Supplemental Indenture; 
 (o)    “CRD” means
Directive 2013/36/EU of the European Parliament and of the Council of June 26, 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC, as
amended, and repealing Directives 2006/48/EC and 2006/49/EC, as amended, supplemented or replaced from time to time, and (where relevant) any applicable successor EU or UK legislation; 

(p)    “CRD IV” means, taken together, (i) the CRR, (ii) the CRD and
(iii) the Capital Instruments Regulations; 
 (q)    “CRR” means regulation (EU) No
575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms and amending regulation (EU) No 648/2012, as amended, supplemented or replaced from time to time,
and (where relevant) any applicable successor EU or UK legislation; 

(r)    “Euroclear” means Euroclear Bank SA/NV; 

(s)    “FATCA” means (i) sections 1471 to 1474 of the U.S. Internal Revenue Code of
1986, as amended or any associated regulations or other official guidance; (ii) any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the United States
and any other jurisdiction, which (in either case) facilitates the implementation of clause (i); or (iii) any agreement pursuant to the implementation of clauses (i) or (ii) with the U.S. Internal Revenue Service, the U.S. government or
any governmental or taxation authority in any other jurisdiction; 
 (t)    “HSBC Group”
means the Company together with its subsidiary undertakings; 
 (u)    “Independent Financial
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 the Company’s own expense;

 (v)    “Initial Interest Rate” has the meaning set forth in clause (a) of
Section 3.01 of this Supplemental Indenture; 
 (w)    “Issue Date” has the meaning
set forth in clause (d) of Section 2.01 of this Supplemental Indenture; 

  
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 (x)     “LIBOR” means the interest rate
benchmark known as the London interbank offered rate, which is calculated and published by a designated distributor (currently Thomson Reuters) in accordance with the requirements from time to time of ICE Benchmark Administration Limited (or any
other person which takes over the administration of that rate) based on the estimated interbank borrowing rate for Pounds Sterling that is provided by a panel of contributor banks; 

(y)    “London Banking Day” means any day on which dealings in Pounds Sterling are
transacted in the London interbank market; 
 (z)     “Loss Absorption Disqualification
Event” has the meaning set forth in Section 5.02 of this Supplemental Indenture; 

(aa)    “Loss Absorption Regulations” means, at any time, the laws, regulations,
requirements, guidelines, rules, standards and policies from time to time relating to minimum requirements for own funds and eligible liabilities and/or loss absorbing capacity instruments in effect in the UK, including, without limitation to the
generality of the foregoing, any delegated or implementing acts (such as implementing or regulatory technical standards) adopted by the European Commission and applicable to the Company from time to time (whether or not such requirements, guidelines
or policies are applied generally or specifically to the Company or to the Company and any of its holding or subsidiary companies or any subsidiary of any such holding company); 

(bb)    “Margin” has the meaning set forth in clause (a) of Section 3.01 of this
Supplemental Indenture; 
 (cc)    “Maturity” has the meaning set forth in clause
(c) of Section 2.01 of this Supplemental Indenture; 
 (dd)    “Mid-Market Swap Rate” has the meaning set forth in clause (a) of Section 3.02 of this Supplemental Indenture; 

(ee)    “Mid-Market Swap Rate Quotation” has the
meaning set forth in clause (b) of Section 3.02 of this Supplemental Indenture; 

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

 (gg)    “PRA” means the UK Prudential Regulation Authority or any successor entity;

 (hh)    “Reference Banks” has the meaning set forth in clause (a) of
Section 3.02 of this Supplemental Indenture; 
 (ii)     “Regulated Entity” means
any BRRD Undertaking as such term is defined under the PRA Rulebook promulgated by the PRA, as amended from time to time, which includes certain credit institutions, investment firms, and certain of their parent or holding companies or any
comparable future definition intended to designate entities within the scope of the UK recovery and resolution regime; 

(jj)    “Relevant Regulator” means the PRA or any successor entity or other entity
primarily responsible for the prudential supervision of the Company; 

  
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 (kk)    “Relevant Rules” means, at any time,
the laws, regulations, requirements, guidelines and policies relating to capital adequacy (including, without limitation, as to leverage) then in effect in the United Kingdom including, without limitation to the generality of the foregoing, as may
be required by CRD IV or BRRD or any applicable successor legislation or any delegated or implementing acts (such as regulatory technical standards) adopted by the European Commission and applicable to the Company from time to time and any
regulations, requirements, guidelines and policies relating to capital adequacy adopted by the Relevant Regulator from time to time (whether or not such requirements, guidelines or policies are applied generally or specifically to the Company or to
the Company and any of its holding or subsidiary companies or any subsidiary of any such holding company); 

(ll)    “Relevant Screen Page” has the meaning set forth in clause (a) of
Section 3.02 of this Supplemental Indenture; 
 (mm)    “Relevant Supervisory
Consent” means as (and to the extent) required, a consent or waiver to the relevant redemption or purchase from the Relevant Regulator. For the avoidance of doubt, Relevant Supervisory Consent shall not be required if either (i) none
of the Notes qualify as part of the Company’s regulatory capital, or own funds and eligible liability or loss absorbing capacity instruments, as the case may be, each pursuant to the Loss Absorption Regulations, (ii) the relevant Notes are
repurchased for market-making purposes in accordance with any permission given by the Relevant Regulator pursuant to Relevant Rules (including, without limitation, Article 29(3) of Commission Delegated Regulation (EU) No. 241/2014) within the
limits prescribed in such permission or (iii) the relevant Notes are being redeemed or repurchased pursuant to any general prior permission granted by the Relevant Regulator or any authority with the ability to exercise a UK Bail-in Power pursuant to the Relevant Rules or the Loss Absorption Regulations within the limits prescribed in such permission; 

(nn)    “Reset Date” means June 27, 2022; 

(oo)    “Reset Determination Cut-off Date” has the
meaning set forth in clause (b) of Section 3.02 of this Supplemental Indenture; 

(pp)    “Reset Determination Date” means the second London Banking Day immediately
preceding the Reset Date; 
 (qq)    “Reset Period” means the period from (and
including) the Reset Date to (but excluding) Maturity; 
 (rr)    “Trustee” has the
meaning set forth in the introduction to this Supplemental Indenture; and 
 (ss)    “UK Bail-in Power” means any write-down, conversion, transfer, modification, or suspension power existing from time to time under, and exercised in compliance with, any laws, regulations, rules or requirements
in effect in the United Kingdom, relating to the transposition of the BRRD or otherwise, including but not limited to the Banking Act and the instruments, rules and standards created thereunder, pursuant to which (i) any obligation of a
Regulated Entity (or other affiliate of such Regulated Entity) can be reduced, cancelled, modified, or converted into shares, other securities, or other obligations of such Regulated Entity or any other person (or suspended for a temporary period);
and (ii) any right in a contract governing an obligation of a Regulated Entity may be deemed to have been exercised. 

  
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 ARTICLE 2 

THE NOTES 

SECTION 2.01.    Terms of the Notes. 

The following terms relating to the Notes are hereby established: 

(a)    the title of the Notes shall be “2.175% Resettable Senior Unsecured Notes due 2023”; 

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

(c)    the principal on the Notes shall be payable on June 27, 2023 (the “Maturity”);

 (d)    interest on the Notes shall be payable annually in arrear on June 27 of each year, beginning on
June 27, 2019, and the interest rate on the Notes shall be determined as set forth in Section 3.01 of this Supplemental Indenture; 

(e)    the Regular Record Dates for the Notes shall be the close of business (in the relevant Clearing
System) on the Clearing System Business Day immediately preceding each interest payment date (or, if the Notes are held in definitive form, the 15th calendar day preceding each interest payment
date, whether or not a Business Day); 
 (f)    the Notes shall be issued on June 27, 2018 (the
“Issue Date”); 
 (g)    principal of, and any interest on, the Notes shall be paid to
the Holder through the Agent in its capacity as Paying Agent, having offices in New York City, New York; 

(h)    the Notes shall not be redeemable except as provided in Article Eleven of the Base Indenture, as
amended by Section 4.01 of this Supplemental Indenture. The Notes shall not be redeemable at the option of the Holders at any time. Notwithstanding anything to the contrary in the Indenture or the Notes, including Section 11.01 of the Base
Indenture, the Company may only redeem or repurchase the Notes prior to the Maturity, as applicable, pursuant to Article Eleven of the Base Indenture if the Company has obtained any Relevant Supervisory Consent; 

(i)    the Notes are not issued as Discount Debt Securities or as Indexed Securities and are not subject to
a Solvency Condition; 
 (j)    the Company shall have no obligation to redeem or purchase the Notes
pursuant to any sinking fund or analogous provision; 
 (k)    the Notes shall be issued only in
denominations of £100,000 and integral multiples of £1,000 in excess thereof; 
 (l)    the
Notes shall be denominated in Pounds Sterling; 
 (m)    the payment of principal of, and interest on,
the Notes shall be payable only in the coin or currency in which the Notes are denominated which, pursuant to clause (k) above, shall be Pounds Sterling; 

  
 8 

 (n)    the Notes shall not be converted into or exchanged at
the option of the Company or otherwise for stock or other securities of the Company pursuant to Article Twelve of the Base Indenture; 

(o)    the Notes shall 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 HSBC Issuer Services Common Depository Nominee (UK) Limited, a nominee of the Common Depositary. Any proposed transfer of an interest in Notes held in the
form of a global security deposited with the Common Depositary shall be effected in the ordinary way following the applicable rules and operating procedures of Clearstream Luxembourg and/or Euroclear; 

(p)    except in limited circumstances, the Notes will not be issued in definitive form; 

(q)    the form of Notes shall be evidenced by one or more global securities in registered form
substantially in the form of Exhibit A to this Supplemental Indenture; 
 (r)    to the fullest extent
permitted by law, the Holders and the Trustee, in respect of any claims of such Holders to payment of any principal, premium or interest in respect of the Notes, by their acceptance of the Notes, shall be deemed to have waived any
right of set-off or counterclaim that such Holders or, as the case may be, the Trustee in such respect, might otherwise have; and 

(s)    members of the HSBC Group other than the Company may purchase or otherwise acquire any of the Notes
then Outstanding at the same or differing prices in the open market, negotiated transactions or otherwise without giving prior notice to or obtaining any consent from Holders, in accordance with the Relevant Rules and, if required, subject to
obtaining any Relevant Supervisory Consent. 
 ARTICLE 3 

INTEREST CALCULATION IN RESPECT OF THE NOTES 

SECTION 3.01.    Interest Rate on the Notes. 

(a)     

(i)    From (and including) the Issue Date to (but excluding) June 27, 2022, the interest rate on the
Notes shall be 2.175% per annum (the “Initial Interest Rate”). During the Reset Period, the per annum interest rate shall be equal to the sum of (i) the Mid-Market Swap Rate on the Reset
Determination Date and (ii) 0.936% (the “Margin”). The interest rate on the Notes during the Reset Period shall in no event be higher than the maximum rate permitted by law or lower than 0% per annum. 

(ii)    Notwithstanding Section 3.01 of the Base Indenture, interest on the Notes shall be calculated
on the basis of the actual number of days elapsed in the relevant period from (and including) the date on which interest begins to accrue to (but excluding) the date on which it falls due divided by the number of days in the interest period in which
the relevant period falls. 
 (b)    If any scheduled interest payment date is not a Business Day, the
Company shall pay interest on the next succeeding Business Day, but interest on that payment shall not accrue during the period from and after the scheduled interest payment date. If the date of 

  
 9 

 
redemption or repayment is not a Business Day, the Company shall pay interest and principal on the next succeeding Business Day, but interest on that payment shall not accrue during the period
from and after the date of redemption or repayment. If the Reset Date is not a Business Day, the Reset Date shall occur on the next succeeding Business Day (the “Adjusted Reset Date”). For the avoidance of doubt, if the Reset Date
is not a Business Day and accordingly the Reset Date occurs on the Adjusted Reset Date, the annual payment of interest on the next interest payment date shall reflect interest for the entire Reset Period (including any portion of the Reset Period
occurring between the originally scheduled Reset Date and the Adjusted Reset Date) at the interest rate determined based on the Adjusted Reset Date, and not at the Initial Interest Rate. In addition and for the avoidance of doubt, in connection with
any optional redemption of the Notes, if the Reset Date is not a Business Day, as described above, the Company shall pay interest together with the principal on the Adjusted Reset Date, but interest on that payment shall not accrue during the period
from and after the Reset Date. 
 SECTION 3.02.    Calculation Agent. 

(a)    The “Mid-Market Swap Rate” is the Mid-Market Swap Rate Quotation that appears for “GBP LIBOR IRS & Swap Spreads” as displayed on the Bloomberg ICAP page (or such other page as may replace such page on Bloomberg or such other
information service, in each case, as may be nominated by the person providing or sponsoring the information appearing on such page for purposes of displaying comparable rates) (the “Relevant Screen Page”) as of approximately 11:00
a.m. (London time) on the Reset Determination Date, all as determined by the Calculation Agent; provided, however, that if no such rate appears on the Relevant Screen Page for a one-year term,
then the Mid-Market Swap Rate shall be determined through the use of straight-line interpolation by reference to two rates, one of which shall be determined in accordance with the above provisions, but as if
the Reset Period were the period of time for which rates are available next shorter than the length of the actual Reset Period and the other of which shall be determined in accordance with the above provisions, but as if the Reset Period were the
period of time for which rates are available next longer than the length of the actual Reset Period; provided further that if on the Reset Determination Date the Relevant Screen Page is not available or the Mid-Market Swap Rate does not appear on the Relevant Screen Page, subject to the first proviso in the definition of Mid-Market Swap Rate Quotation, the Calculation Agent shall
request the principal office in London of four major banks in the swap, money, securities or other market most closely connected with the relevant Mid-Market Swap Rate (as selected by the Company on the advice
of an investment bank of international repute) (the “Reference Banks”) to provide it with its Mid-Market Swap Rate Quotation as of approximately 11:00 a.m. (London time) on the Reset
Determination Date. If two or more of the Reference Banks provide the Calculation Agent with Mid-Market Swap Rate Quotations, the interest rate for the Reset Period shall be the sum of (i) the Margin and
(ii) the arithmetic mean (rounded, if necessary, to the nearest 0.001% (0.0005% being rounded upwards)) of the relevant Mid-Market Swap Rate Quotations, as determined by the Calculation Agent. If only one
or none of the Reference Banks provides the Calculation Agent with a Mid-Market Swap Rate Quotation, the interest rate shall be determined to be the Initial Interest Rate. 

(b)    A “Mid-Market Swap Rate Quotation” means a
quotation (expressed as a percentage rate per annum) for the mean of the bid and offered rates for the fixed leg payable semi-annually (calculated on the basis of the actual number of days in the relevant period from (and including) the date on
which interest begins to accrue to (but excluding) the date on which it falls due divided by 365) of a fixed-for-floating interest rate swap transaction in Pounds
Sterling which transaction (i) has a one-year term commencing on the Reset Date, (ii) 

  
 10 

 
is in an amount that is representative for a single transaction in the Pounds Sterling swap rate market at 11:00 a.m. (London time) with an acknowledged dealer of good credit in the swap market
and (iii) has a floating leg based on six-month LIBOR (calculated on the basis of the actual number of days in the relevant period from (and including) the date on which interest begins to accrue to (but
excluding) the date on which it falls due divided by 365); provided that, notwithstanding the second proviso in the definition of Mid-Market Swap Rate, if the Company (in consultation with the
Calculation Agent) determines that the Mid-Market Swap Rate has ceased to be published on the Relevant Screen Page as a result of LIBOR ceasing to be calculated or administered for publication, the Company
shall use reasonable efforts to appoint an Independent Financial Adviser to determine the Alternative Base Rate and the Alternative Screen Page by no later than five Business Days prior to the Reset Determination Date (the “Reset
Determination Cut-off Date”). If the Company is unable to appoint an Independent Financial Adviser, or if the Independent Financial Adviser fails to determine the Alternative Base Rate and the
Alternative Screen Page prior to the Reset Determination Cut-off Date, Company shall determine the Alternative Base Rate and the Alternative Screen Page for the Reset Period. In either case, the Mid-Market Swap Rate Quotation shall then be the quotation for the mean of bid and offered rates determined as provided above but as if the reference to LIBOR was a reference to the Alternative Base Rate on the
Alternative Screen Page with any Calculation Changes. Notwithstanding the foregoing, if the Company does not determine the Alternative Base Rate and the Alternative Screen Page prior to the Reset Determination Date, the interest rate for the Reset
Period shall be equal to the Initial Interest Rate. 
 (c)    If the Independent Financial Adviser or the
Company determines the Alternative Base Rate, the Independent Financial Adviser or the Company, as applicable, may also, following consultation with the Calculation Agent, make changes to the day count fraction, the business day convention and the
definition of Business Day, in each case in order to follow market practice, as well as any other changes (including to the Margin) that the Company, following consultation with the Independent Financial Adviser (if appointed), determines in good
faith are reasonably necessary to ensure the proper operation of the Alternative Base Rate or the Mid-Market Swap Rate, as well as the comparability of the interest rate determined by reference to the
Alternative Base Rate to the interest rate determined by reference to LIBOR (the “Calculation Changes”). 

(d)    The Company shall promptly give notice of the determination of the Alternative Base Rate, the
Alternative Screen Page and any Calculation Changes to the Trustee, the Paying Agent, the Calculation Agent and the Holders, provided that failure to provide such notice shall have no impact on the effectiveness of, or otherwise
invalidate, any such determination. 
 (e)    All percentages resulting from any calculation of any
interest rate on the Notes shall 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 Pounds Sterling
amounts shall be rounded to the nearest pence, with one-half pence being rounded upward. 

(f)    All determinations and any calculations made by the Calculation Agent for the purposes of
calculating the applicable Mid-Market Swap Rate shall be conclusive and binding on the Holders, the Company, the Trustee and the Paying Agent, absent manifest error. The Calculation Agent shall not be
responsible to the Company, the Holders or any third party for any failure of the Reference Banks to provide quotations as requested of them or as a result of the Calculation Agent having acted on any quotation or other information given by any
Reference Bank which subsequently may be found to be incorrect or inaccurate in any way. 

  
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 (g)    By its acquisition of the Notes, each Holder (which,
for these purposes, includes each beneficial owner) (i) acknowledges, accepts, consents and agrees to be bound by the Independent Financial Adviser’s or the Company’s determination of the Alternative Base Rate, the Alternative Screen
Page and any Calculation Changes, including as may occur without any prior notice from the Company and without the need for the Company to obtain any further consent from such Holder, (ii) waives any and all claims, in law and/or in equity,
against the Trustee, the Paying Agent and the Calculation Agent for, agrees not to initiate a suit against the Trustee, the Paying Agent and the Calculation Agent in respect of, and agrees that none of the Trustee, the Paying Agent or the
Calculation Agent shall be liable for, the determination of or the failure to determine any Alternative Base Rate, the Alternative Screen Page, and any Calculation Changes and any losses suffered in connection therewith and (iii) agrees that
none of the Trustee, the Paying Agent or the Calculation Agent shall have any obligation to determine any Alternative Base Rate, the Alternative Screen Page and any Calculation Changes (including any adjustments thereto), including in the event of
any failure by the Company to determine any Alternative Base Rate, the Alternative Screen Page and any Calculation Changes. The Trustee shall be entitled to rely on this deemed consent in connection with any supplemental indenture and/or amendment
to the Indenture or the Notes necessary to effectuate any Alternative Base Rate, Alternative Screen Page or Calculation Changes. 

ARTICLE 4 
 AMENDMENTS
TO THE BASE INDENTURE 
 APPLICABLE TO THE NOTES ONLY 

SECTION 4.01.    Definitions. With respect to the Notes only: 

(a)    Any reference to “Depositary” in the Base Indenture and any amendment thereto shall be
deemed to refer to the Clearing Systems; 
 (b)    Any reference to “DTC” in the Base Indenture
and any amendment thereto shall be deemed to refer to the Clearing Systems. 
 SECTION 4.02.    Redemption of
Debt Securities. With respect to the Notes only, Article Eleven of the Base Indenture is amended by adding Section 11.09, which shall read as follows:  

Section 11.09.     Optional Redemption of the Notes. The Company may redeem the Notes in
whole (but not in part) in its sole discretion on the Reset Date (the “Optional Redemption Date”). The redemption price shall be equal to 100% of their principal amount plus any accrued and unpaid interest to (but excluding) the
Optional Redemption Date. 

  
 12 

 SECTION 4.03.    Events of Default and Defaults. With
respect to the Notes only, Article Five of the Base Indenture is amended by amending and restating Section 5.01 in its entirety, which shall read as follows: 

Section 5.01.     Events of Default and Defaults. 

(i)    Prior to a Loss Absorption Disqualification Event. On the Issue Date, and for so long as no
Loss Absorption Disqualification Event has occurred, an “Event of Default” with respect to the Notes means any one of the following events: 

(A)    an order is made by an English court which is not successfully appealed within 30 days after the
date such order was made for winding up of the Company other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency; 

(B)    an effective resolution is validly adopted by the Company’s shareholders for winding up of the
Company other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency; 

(C)    failure to pay principal or premium, if any, on the Notes at maturity, and such default continues
for a period of 30 days; or 
 (D)    failure to pay any interest on the Notes when due and payable,
which failure continues for 30 days. 
 (ii)    After a Loss Absorption Disqualification Event. On
and after the date a Loss Absorption Disqualification Event has occurred, an “Event of Default” with respect to the Notes means any one of the following events: 

(A)    an order is made by an English court which is not successfully appealed within 30 days after the
date such order was made for winding up of the Company other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency; or 

(B)    an effective resolution is validly adopted by the Company’s shareholders for winding up of the
Company other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency. 

On and after the date a Loss Absorption Disqualification Event has occurred, a “Default” with respect to the Notes
means any one of the following events: 
 (A)    failure to pay principal or premium, if any, on the
Notes at maturity, and such default continues for a period of 30 days; or 
 (B)    failure to pay any
interest on the Notes when due and payable, which failure continues for 30 days. 
 If a Default occurs, the Trustee may
institute proceedings in England (but not elsewhere) for the Company’s winding-up; provided that the Trustee may not, upon the occurrence of a Default, accelerate the maturity of any Notes then
Outstanding, unless an Event of Default has occurred and is continuing. 
 Notwithstanding the foregoing, failure to make any
payment in respect of the Notes shall not be a Default in respect of the Notes if such payment is withheld or refused: 

(A)    in order to comply with any fiscal or other law or regulation or with the order of any court of
competent jurisdiction, in each case applicable to such payment; or 

  
 13 

 (B)    in case of doubt as to the validity or applicability
of any such law, regulation or order, in accordance with advice given as to such validity or applicability at any time during the said grace period of 30 days by independent legal advisers acceptable to the Trustee; 

provided, however, that the Trustee may, by notice to the Company, require the Company to take such action (including but not
limited to proceedings for a declaration by a court of competent jurisdiction) as the Trustee may be advised in an opinion of counsel, upon which opinion the Trustee may conclusively rely, is appropriate and reasonable in the circumstances to
resolve such doubt, in which case the Company shall forthwith take and expeditiously proceed with such action and shall be bound by any final resolution of the doubt resulting therefrom. If any such resolution determines that the relevant payment
can be made without violating any applicable law, regulation or order then the preceding sentence shall cease to have effect and the payment shall become due and payable on the expiration of the relevant grace period of 30 days after the Trustee
gives written notice to the Company informing the Company of such resolution. 
 (iii)    Loss
Absorption Disqualification Event. A “Loss Absorption Disqualification Event” shall be deemed to have occurred if clause (C) or (D) of the definition of Event of Default (as such term is defined in clause (i) of this
Section 5.01) has caused or is likely to cause the Notes to be fully or partially ineligible to meet the Company’s minimum requirements for (x) eligible liabilities and/or (y) loss absorbing capacity instruments, in each case
pursuant to the relevant Loss Absorption Regulations, as a result of any: 
 (A)    Loss Absorption
Regulation becoming effective on or after the Issue Date; or 
 (B)    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. 

As soon as practicable after the occurrence of a Loss Absorption Disqualification Event (but no later than 30 days after the
occurrence thereof), the Company shall: 
 (A)    give notice thereof to the Trustee and the Paying Agent
directly and to the Holders via the Clearing Systems (or, if the Notes are held in definitive form, to the Holders at their addresses shown on the register for the Notes) specifying (x) that a Loss Absorption Disqualification Event has
occurred, (y) the date of the occurrence of the Loss Absorption Disqualification Event and (z) the Events of Default and Defaults specified in clause (ii) of this Section 5.01 are substituted in full for the Events of Default
specified in clause (i) of this Section 5.01 and shall be the applicable Events of Default and Defaults under the Indenture and the Notes. The date on which the notice is dispatched by the Company to the Clearing Systems (or, if the Notes
are held in definitive form, to the Trustee) shall be the date on which such notice is deemed to have been given; and 

(B)    deliver to the Trustee an Officer’s Certificate stating that a Loss Absorption Disqualification
Event has occurred. For these purposes, the Trustee and the Agent shall accept and are entitled to conclusively rely upon such Officer’s Certificate without further enquiry as sufficient evidence of the existence of such circumstances and such
Officer’s Certificate shall be conclusive and binding on the Holders without the need for any further consent on their part. 

  
 14 

 (iv)    Agreements with Respect to the Variation of Events
of Default and Defaults. 
 By its acquisition of the Notes, each Holder (which, for these purposes, includes each
beneficial owner) acknowledges, accepts, consents and agrees to be bound by the variation of the Events of Default and Defaults on the occurrence of a Loss Absorption Disqualification Event (including as may occur without any prior notice from the
Company), without the need for the Company to obtain any further consent from such Holder. 
 By its acquisition of the
Notes, each Holder (which, for these purposes, includes each beneficial owner), to the extent permitted by the Trust Indenture Act, waives any and all claims, in law and/or in equity, against the Trustee for, agrees not to initiate a suit against
the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes, or abstains from taking, in either case in connection with the variation of the Events of Default and Defaults on the occurrence of a
Loss Absorption Disqualification Event. 
 ARTICLE 5 

MISCELLANEOUS 

SECTION 5.01.    Effect of this Supplemental Indenture; Ratification and Integral Part. This
Supplemental Indenture shall become effective upon its execution and delivery. 
 Except as hereby amended, the Base Indenture is in all
respects ratified and confirmed and all the terms, provisions and conditions thereof (including any prior amendments thereto) shall be, and remain in, full force and effect, including, without limitation, Section 4.06 of the first supplemental
indenture dated March 8, 2016 (amending the Base Indenture to add Section 15) and Section 4.01 of the second supplemental indenture dated May 25, 2016 (amending Section 6.07 of the Base Indenture). This Supplemental
Indenture shall be deemed an integral part of the Base Indenture in the manner and to the extent herein and therein provided. 

SECTION 5.02.    Priority. This Supplemental Indenture shall be deemed part of the Base Indenture in the
manner and to the extent herein and therein provided. The provisions of this Supplemental Indenture shall, with respect to the Notes and as otherwise provided herein and subject to the terms hereof, supersede the provisions of the Base Indenture to
the extent the Base Indenture is inconsistent herewith. 
 SECTION 5.03.    Successors and Assigns. All
covenants and agreements in the Base Indenture, as supplemented and amended by this Supplemental Indenture, by the Company shall bind its successors and assigns, whether so expressed or not. 

SECTION 5.04.    Subsequent Holders’ Agreement. Any Holder (which, for these purposes,
includes each beneficial owner of the Notes) that acquires the Notes in the secondary market and any successors, assigns, heirs, executors, administrators, trustees in bankruptcy and legal representatives of any Holder or beneficial owner of the
Notes shall be deemed to acknowledge, agree to be bound by and consent to the same provisions specified herein to the same extent as the Holders or beneficial owners of the Notes that acquire the Debt Securities upon their initial issuance,
including, without limitation, with respect to the acknowledgement and agreement to be bound by and consent to the terms of the Notes related to the UK Bail-in Power, LIBOR and the variation of the Events of
Default and Defaults on the occurrence of a Loss Absorption Disqualification Event. 

  
 15 

 SECTION 5.05.    Compliance. The Agent shall be entitled to take
any action or to refuse to take any action which the Agent regards as necessary for the Agent to comply with any applicable law, regulation or fiscal requirement, court order, or the rules, operating procedures or market practice of any relevant
stock exchange or other market or clearing system. 
 SECTION 5.06.    Relation to Calculation Agent
Agreement. In the event of any conflict between the Indenture and the Calculation Agent Agreement relating to the rights or obligations of the Calculation Agent in the Indenture in connection with the calculation of the interest rate on the
Notes during the Reset Period, the relevant terms of the Calculation Agent Agreement shall govern such rights and obligations. 

SECTION 5.07.    Governing Law. This Supplemental Indenture and the Notes shall be governed by, and construed
in accordance with, the laws of the State of New York. 
 SECTION 5.08.    Counterparts. This Supplemental
Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. 

SECTION 5.09.    Entire Agreement. This Supplemental Indenture constitutes the entire agreement of the parties
hereto with respect to the Notes and the amendments to the Base Indenture set forth herein. 

  
 16 

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

			
	 HSBC HOLDINGS PLC,

    as Issuer

		
	By:	 	  

	Name:	 	Eddy Okhuijsen
	Title:	 	Group Corporate Treasurer
	
	THE BANK OF NEW YORK MELLON,
	 LONDON BRANCH,

    as Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	HSBC BANK USA, NATIONAL ASSOCIATION,     as Paying Agent, Registrar and Calculation Agent
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 [Signature Page to the
Eighth Supplemental Indenture] 

 EXHIBIT A 

FORM OF 2.175% RESETTABLE GLOBAL SECURITY 

CUSIP No.:404280 BU2 
 ISIN:
XS1823595647 
 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 GLOBAL 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. 
 BY ITS ACQUISITION OF THE DEBT SECURITIES REPRESENTED BY THIS GLOBAL SECURITY,
EACH HOLDER (WHICH, FOR THESE PURPOSES, INCLUDES EACH BENEFICIAL OWNER OF THE DEBT SECURITIES) ACKNOWLEDGES, ACCEPTS, CONSENTS AND AGREES, NOTWITHSTANDING ANY OTHER TERM OF THE DEBT SECURITIES, THE INDENTURE OR ANY OTHER AGREEMENTS, ARRANGEMENTS OR
UNDERSTANDINGS BETWEEN THE ISSUER AND ANY HOLDER, TO BE BOUND BY (A) THE EFFECT OF THE EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK RESOLUTION AUTHORITY THAT MAY INCLUDE AND RESULT IN ANY OF THE
FOLLOWING, OR SOME COMBINATION THEREOF: (I) THE REDUCTION OF ALL, OR A PORTION, OF THE AMOUNTS DUE (AS DEFINED ON THE REVERSE OF THIS GLOBAL SECURITY); (II) THE CONVERSION OF ALL, OR A PORTION, OF THE AMOUNTS DUE INTO THE ISSUER’S OR
ANOTHER PERSON’S ORDINARY SHARES, OTHER SECURITIES OR OTHER OBLIGATIONS (AND THE ISSUE TO, OR CONFERRAL ON, THE HOLDER OF SUCH ORDINARY SHARES, OTHER SECURITIES OR OTHER OBLIGATIONS), INCLUDING BY MEANS OF AN AMENDMENT, MODIFICATION OR
VARIATION OF THE TERMS OF THE DEBT SECURITIES OR THE INDENTURE; (III) THE CANCELLATION OF THE DEBT SECURITIES; AND/OR (IV) THE AMENDMENT OR ALTERATION OF THE MATURITY OF THE DEBT SECURITIES OR AMENDMENT OF THE AMOUNT OF INTEREST PAYABLE ON
THE DEBT SECURITIES, OR THE INTEREST PAYMENT DATES, INCLUDING BY SUSPENDING PAYMENT FOR A TEMPORARY PERIOD; AND (B) THE VARIATION OF THE TERMS OF THE DEBT SECURITIES OR THE INDENTURE, IF NECESSARY, TO GIVE EFFECT TO THE EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK RESOLUTION AUTHORITY. 
 BY ITS ACQUISITION OF THE DEBT SECURITIES REPRESENTED BY THIS
GLOBAL SECURITY, EACH HOLDER (WHICH, FOR THESE PURPOSES, INCLUDES EACH BENEFICIAL OWNER OF THE DEBT SECURITIES) ACKNOWLEDGES, ACCEPTS, CONSENTS AND AGREES TO BE BOUND BY THE VARIATION OF THE EVENTS OF DEFAULT AND DEFAULTS ON THE OCCURRENCE OF A LOSS
ABSORPTION DISQUALIFICATION EVENT (INCLUDING AS MAY OCCUR WITHOUT ANY PRIOR NOTICE FROM THE ISSUER), WITHOUT THE NEED FOR THE ISSUER TO OBTAIN ANY FURTHER CONSENT FROM SUCH HOLDER. 

 GLOBAL SECURITY 

HSBC Holdings plc 

£[●] 
 2.175%
RESETTABLE SENIOR UNSECURED NOTES DUE 2023 
 This is a Global Security in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer,” which term includes any successor Person under the Indenture hereinafter referred to) of debt securities, designated as specified in the title hereof, in the aggregate face amount of £[●] (the “Debt
Securities”). 
 The Issuer, for value received, hereby promises to pay HSBC Issuer Services Common Depository Nominee (UK) Limited, or
registered assigns on June 27, 2023 or on such earlier date as this Global Security may be redeemed (“Maturity”), the principal amount hereof and to pay interest on the said principal amount: 

(1)    Interest on the Debt Securities shall be payable annually in arrear on June 27 of each year, beginning on June 27,
2019. 
 (2)    From (and including) June 27, 2018 (the “Issue Date”) to (but excluding) June 27,
2022, the interest rate on the Debt Securities shall be 2.175% per annum (the “Initial Interest Rate”). During the Reset Period, the per annum interest rate shall be equal to the sum of (i) the
Mid-Market Swap Rate on the Reset Determination Date and (ii) 0.936% (the “Margin”). The interest rate on the Debt Securities during the Reset Period shall in no event be higher than the maximum rate
permitted by law or lower than 0% per annum. 
 (3)    Interest on the Debt Securities shall be calculated on the basis
of the actual number of days elapsed in the relevant period from (and including) the date on which interest begins to accrue to (but excluding) the date on which it falls due divided by the number of days in the interest period in which the relevant
period falls). 
 (4)    If any scheduled interest payment date is not a Business Day, the Issuer shall pay interest on
the next succeeding Business Day, but interest on that payment shall not accrue during the period from and after the scheduled interest payment date. If the date of redemption or repayment is not a Business Day, the Issuer shall pay interest and
principal on the next succeeding Business Day, but interest on that payment shall not accrue during the period from and after the date of redemption or repayment. If the Reset Date is not a Business Day, the Reset Date shall occur on the next
succeeding Business Day (the “Adjusted Reset Date”). For the avoidance of doubt, if the Reset Date is not a Business Day and accordingly the Reset Date occurs on the Adjusted Reset Date, the annual payment of interest on the next interest
payment date shall reflect interest for the entire Reset Period (including any portion of the Reset Period occurring between the originally scheduled Reset Date and the Adjusted Reset Date) at the interest rate determined based on the Adjusted Reset
Date, and not at the Initial Interest Rate. In addition and for the avoidance of doubt, in connection with any optional redemption of the Debt Securities, if the Reset Date is not a Business Day, as described above, the Issuer shall pay interest
together with the principal on the Adjusted Reset Date, but interest on that payment shall not accrue during the period from and after the Reset Date. 

“Reset Date” means June 27, 2022. 

  
 A-2 

 “Reset Determination Date” means the second London Banking Day immediately preceding
the Reset Date. 
 “Reset Period” means the period from (and including) the Reset Date to (but excluding) Maturity. 

The “Mid-Market Swap Rate” is the Mid-Market Swap
Rate Quotation that appears for “GBP LIBOR IRS & Swap Spreads” as displayed on the Bloomberg ICAP page (or such other page as may replace such page on Bloomberg or such other information service, in each case, as may be nominated
by the person providing or sponsoring the information appearing on such page for purposes of displaying comparable rates) (the “Relevant Screen Page”) as of approximately 11:00 a.m. (London time) on the Reset Determination Date, all as
determined by the Calculation Agent; provided, however, that if no such rate appears on the Relevant Screen Page for a one-year term, then the Mid-Market Swap Rate shall
be determined through the use of straight-line interpolation by reference to two rates, one of which shall be determined in accordance with the above provisions, but as if the Reset Period were the period of time for which rates are available next
shorter than the length of the actual Reset Period and the other of which shall be determined in accordance with the above provisions, but as if the Reset Period were the period of time for which rates are available next longer than the length of
the actual Reset Period; provided further that if on the Reset Determination Date the Relevant Screen Page is not available or the Mid-Market Swap Rate does not appear on the Relevant Screen Page, subject to
the first proviso in the definition of Mid-Market Swap Rate Quotation below, the Calculation Agent shall request the principal office in London of four major banks in the swap, money, securities or other
market most closely connected with the relevant Mid-Market Swap Rate (as selected by us on the advice of an investment bank of international repute) (the “Reference Banks”) to provide it with its Mid-Market Swap Rate Quotation as of approximately 11:00 a.m. (London time) on the Reset Determination Date. If two or more of the Reference Banks provide the Calculation Agent with
Mid-Market Swap Rate Quotations, the interest rate for the Reset Period shall be the sum of the Margin and the arithmetic mean (rounded, if necessary, to the nearest 0.001% (0.0005% being rounded upwards)) of
the relevant Mid-Market Swap Rate Quotations, as determined by the Calculation Agent. If only one or none of the Reference Banks provides the Calculation Agent with a
Mid-Market Swap Rate Quotation, the interest rate shall be determined to be the Initial Interest Rate. 

A “Mid-Market Swap Rate Quotation” means a quotation (expressed as a percentage rate per
annum) for the mean of the bid and offered rates for the fixed leg payable semi-annually (calculated on the basis of the actual number of days in the relevant period from (and including) the date on which interest begins to accrue to (but excluding)
the date on which it falls due divided by 365) of a fixed-for-floating interest rate swap transaction in Pounds Sterling which transaction (i) has a one-year term commencing on the Reset Date, (ii) is in an amount that is representative for a single transaction in the Pounds Sterling swap rate market at 11:00 a.m. (London time) with an acknowledged dealer
of good credit in the swap market and (iii) has a floating leg based on six-month LIBOR (calculated on the basis of the actual number of days in the relevant period from (and including) the date on which
interest begins to accrue to (but excluding) the date on which it falls due divided by 365); provided that, notwithstanding the second proviso in the definition of Mid-Market Swap Rate, if the Issuer (in
consultation with the Calculation Agent) determines that the Mid-Market Swap Rate has ceased to be published on the Relevant Screen Page as a result of LIBOR ceasing to be calculated or administered for
publication, the Issuer shall use reasonable efforts to appoint an Independent Financial Adviser to determine the Alternative Base Rate and the Alternative Screen Page by no later than five Business Days prior to the Reset Determination Date (the
“Reset Determination Cut-off Date”). If the Issuer is unable to appoint an Independent Financial Adviser, or if the Independent Financial Adviser fails to determine the Alternative Base Rate and the
Alternative Screen Page prior to the Reset Determination Cut-off Date, the Issuer shall determine the Alternative Base Rate and the Alternative Screen Page for the Reset Period. In either case, the Mid-Market Swap Rate Quotation shall then be the quotation for the mean of bid and offered rates 

  
 A-3 

 
determined as provided above but as if the reference to LIBOR was a reference to the Alternative Base Rate on the Alternative Screen Page with any Calculation Changes. Notwithstanding the
foregoing, if the Issuer does not determine the Alternative Base Rate and the Alternative Screen Page prior to the Reset Determination Date, the interest rate for the Reset Period shall be equal to the Initial Interest Rate. 

If the Independent Financial Adviser or the Issuer determines the Alternative Base Rate, the Independent Financial Adviser or the Issuer, as
applicable, may also, following consultation with the Calculation Agent, make changes to the day count fraction, the business day convention and the definition of Business Day, in each case in order to follow market practice, as well as any other
changes (including to the Margin) that the Issuer, following consultation with the Independent Financial Adviser (if appointed), determines in good faith are reasonably necessary to ensure the proper operation of the Alternative Base Rate or the Mid-Market Swap Rate, as well as the comparability of the interest rate determined by reference to the Alternative Base Rate to the interest rate determined by reference to LIBOR (the “Calculation
Changes”). 
 The Issuer shall promptly give notice of the determination of the Alternative Base Rate, the Alternative Screen Page and
any Calculation Changes to the Trustee, the Paying Agent, the Calculation Agent and the Holders, provided that failure to provide such notice shall have no impact on the effectiveness of, or otherwise invalidate, any such determination. 

All percentages resulting from any calculation of any interest rate on the Debt Securities shall 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 Pounds Sterling amounts shall be rounded to the nearest pence, with one-half pence being rounded upward. All determinations and any calculations made by the Calculation Agent for the purposes of calculating the applicable Mid-Market Swap Rate
shall be conclusive and binding on the Holders, the Issuer, the Trustee and the Paying Agent, absent manifest error. The Calculation Agent shall not be responsible to the Issuer, the Holders or any third party for any failure of the Reference Banks
to provide quotations as requested of them or as a result of the Calculation Agent having acted on any quotation or other information given by any Reference Bank which subsequently may be found to be incorrect or inaccurate in any way. 

Each Holder of the Debt Securities (which, for these purposes, includes each beneficial owner of the Debt Securities) (i) acknowledges,
accepts, consents and agrees to be bound by the Independent Financial Adviser’s or the Issuer’s determination of the Alternative Base Rate, the Alternative Screen Page and any Calculation Changes, including as may occur without any prior
notice from the Issuer and without the need for the Issuer to obtain any further consent from such Holder, (ii) waives any and all claims, in law and/or in equity, against the Trustee, the Paying Agent and the Calculation Agent for, agrees not
to initiate a suit against the Trustee, the Paying Agent and the Calculation Agent in respect of, and agrees that none of the Trustee, the Paying Agent or the Calculation Agent shall be liable for, the determination of or the failure to determine
any Alternative Base Rate, the Alternative Screen Page, and any Calculation Changes and any losses suffered in connection therewith and (iii) agrees that none of the Trustee, the Paying Agent or the Calculation Agent shall have any obligation
to determine any Alternative Base Rate, the Alternative Screen Page and any Calculation Changes (including any adjustments thereto), including in the event of any failure by the Issuer to determine any Alternative Base Rate, the Alternative Screen
Page and any Calculation Changes. The Trustee shall be entitled to rely on this deemed consent in connection with any supplemental indenture and/or amendment to the Indenture or the Debt Securities necessary to effectuate any Alternative Base Rate,
Alternative Screen Page or Calculation Changes. 
 “Alternative Base Rate” means the rate that has replaced LIBOR in customary
market usage for determining floating interest rates in respect of bonds denominated in Pounds Sterling or, if the Independent Financial Adviser or the Issuer (in consultation with the Calculation Agent and acting in good faith and a commercially
reasonable manner), as applicable, determines that there is no such rate, 

  
 A-4 

 
such other rate as the Independent Financial Adviser or the Issuer (in consultation with the Calculation Agent and acting in good faith and a commercially reasonable manner), as applicable,
determines in its or the Issuer’s sole discretion is most comparable to LIBOR. 
 “Alternative Screen Page” means the
alternative screen page, information service or source on which the Alternative Base Rate appears (or such other page, information service or source as may replace the alternative screen page, information service or source, in each case, as may be
nominated by the person providing or sponsoring the information appearing on such page for purposes of displaying comparable rates). 

“Independent Financial 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 Issuer at the Issuer’s own expense. 

“London Banking Day” means any day on which dealings in Pounds Sterling are transacted in the London interbank market. 

Interest in respect of this Global Security that is payable, and is punctually paid or duly provided for, on any interest payment date shall
be paid to the Person in whose name this Global Security (or one or more Predecessor Global Securities) is registered at the close of business on the Regular Record Date for such interest. 

Payment of interest, if any, in respect of this Global Security may be made by check mailed to the address of the Person entitled thereto as
such address shall appear in the Register, or by wire transfer or transfer by any other means to an account designated in writing by such Person to the Paying Agent at least 15 days prior to such payment date. 

Any interest in respect of this Global Security that is payable, but is not punctually paid or duly provided for, on any interest payment date
(herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holders thereof on the relevant Regular Record Date by virtue of their having been such Holders; and such Defaulted Interest may be paid by the Issuer, at its
election in each case, as provided in Clause (1) or (2) below: 
  

	 	(1)	The Issuer may elect to make payment of such Defaulted Interest to the Persons in whose names this Global Security (or its respective Predecessor Global Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which shall be fixed in the manner provided for in the Indenture. 

  

	 	(2)	The Issuer may make payment of any Defaulted Interest on this Global Security in any other lawful manner not inconsistent with the requirements of any securities exchange on which this Global Security may be listed, and
upon such notice as may be required by such exchange, if, after notice given by the Issuer to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. 

All payments made under or with respect to this Global Security shall be paid by the Issuer, without deduction or withholding for, or on
account of, any and all present and future taxes, levies, imposts, duties, charges, fees, deductions or withholdings whatsoever imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom or any political subdivision or
taxing authority thereof or therein having the power to tax (each, a “Taxing Jurisdiction”), unless required by law. If such deduction or withholding shall at any time be required by the law of the Taxing Jurisdiction, the Issuer shall pay
such additional amounts in respect of any payments of principal or interest on this 

  
 A-5 

 
Global Security (“Additional Amounts”) as may be necessary so that the net amounts (including Additional Amounts) paid to the Holders, after such deduction or withholding, shall be
equal to the respective amounts of principal or interest which the Holders would have been entitled to receive in respect of this Global Security in the absence of such deduction or withholding, provided that the foregoing shall not apply to
any such tax, levy, impost, duty, charge, fee, deduction or withholding which: (i) would not be payable or due but for the fact that the Holder or the beneficial owner of this Global Security is domiciled in, or is a national or resident of, or
engaging in business or maintaining a permanent establishment or being physically present in, the Taxing Jurisdiction or otherwise has some connection or former connection with the Taxing Jurisdiction other than the holding or ownership of this
Global Security, or the collection of principal or interest payments on, or the enforcement of, this Global Security; (ii) would not be payable or due but for the fact that this Global Security (x) is presented for payment in the Taxing
Jurisdiction or (y) is presented 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 the
same for payment at the close of such 30 day period; (iii) would not have been imposed if presentation for payment of this Global Security had been made to a paying agent other than the paying agent to which the presentation was made;
(iv) is imposed in respect of a Holder that is not the sole beneficial owner of the principal or the interest, or a portion of either, or that is a fiduciary or partnership, but only to the extent that a beneficiary or settlor with respect to
the fiduciary, a beneficial owner or member of the partnership would not have been entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the
payment; (v) is imposed because of the failure to comply by the Holder or the beneficial owner of this Global Security or the beneficial owner of any payment on this Global Security with a request from the Issuer addressed to the Holder or the
beneficial owner, including a written request from the Issuer related to a claim for relief under any applicable double tax treaty (x) to provide information concerning the nationality, residence, identity or connection with a taxing
jurisdiction of the Holder or the beneficial owner or (y) to make any declaration or other similar claim to satisfy any information or reporting requirement, if the information or declaration is required or imposed by a statute, treaty,
regulation, ruling or administrative practice of the Taxing Jurisdiction as a precondition to exemption from withholding or deduction of all or part of the tax, duty, assessment or other governmental charge; (vi) is imposed in respect of any
estate, inheritance, gift, sale, transfer, personal property, wealth or similar tax, duty, assessment or other governmental charge; or (vii) is imposed in respect of any combination of the above items. 

Whenever in this Global Security there is mentioned, in any context, the payment of any principal or interest on or in respect of any Debt
Security or the net proceeds received on the sale or exchange of any Debt Security, such mention shall be deemed to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof and express mention of the payment of Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where such express mention is not made.

 Upon any exchange of a portion of this Global Security for a definitive Debt Security, the portion of the principal amount hereof so
exchanged shall be endorsed by the Registrar on Schedule A hereto. The principal amount hereof shall be reduced for all purposes by the amount so exchanged and endorsed. 

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

  
 A-6 

 Unless the certificate of authentication hereon has been executed by the Trustee or an
authenticating agent by manual signature, this Global Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purposes. 

  
 A-7 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its corporate
seal. 
  

							
		 		 	By:	 	  

		 		 	[●]	 	
			
		 		 	 HSBC Holdings plc,
 as
Issuer

		 		 

 Dated: June 27, 2018 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Debt Securities of a series issued under the within-mentioned Indenture. 

 

							
		 		 	By:	 	  

		 		 	[●]	 	
				
	Dated: June 27, 2018	 		 		 	
		 		 	The Bank of New York Mellon, London Branch, as Trustee

  
 A-8 

 REVERSE OF GLOBAL SECURITY 

£[●] 
 2.175%
RESETTABLE SENIOR UNSECURED NOTES DUE 2023 
 This Global Security is one of a duly authorized issue of Debt Securities issued and to be
issued in one or more series under and governed by an Indenture dated as of August 26, 2009 (as amended or supplemented from time to time), by and among the Issuer, The Bank of New York Mellon, London Branch, as trustee (the
“Trustee,” which term includes any successor trustee under the Indenture), and HSBC Bank USA, National Association (“HBUS”), as registrar and paying agent (the “Base Indenture”), as amended and supplemented by an Eighth
Supplemental Indenture dated as of June 27, 2018 (the “Eighth Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among the Issuer, the Trustee and HBUS, as paying agent, registrar and
calculation agent (the “Agent”), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Issuer, the
Trustee, the Holders and of the terms upon which the Debt Securities are, and are to be, authenticated and delivered. 
 Under the terms of
the Indenture, the Debt Securities may be redeemed, as a whole but not in part, at the Issuer’s option, on not less than 30 nor more than 60 days’ notice, at any time at a redemption price equal to the principal amount thereof, together
with accrued interest, if any, to the date fixed for redemption, if, at any time, the Issuer determines that: 
 (a) in
making payment under the Debt Securities in respect of principal (or premium, if any) or interest the Issuer has or shall or would become obligated to pay Additional Amounts as provided in the Indenture and in this Global Security provided such
obligation results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the official application or interpretation of such laws (including a decision of any court or tribunal), or any change in, or in the official
application or interpretation of, or execution of, or amendment to, any treaty or treaties affecting taxation to which the United Kingdom is a party, which change, amendment or execution becomes effective after the Issue Date; or 

(b) the payment of interest in respect of the Debt Securities has become or will or 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 reenactment thereof for the time being) as a result of a change in or amendment to the laws of
the Taxing Jurisdiction, or any change in the official application or interpretation of such laws, including a decision of any court, which change or amendment becomes effective on or after the Issue Date; provided, however that, in
the case of (a) above, no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer would be obliged to pay such Additional Amounts were a payment in respect of the Debt Securities then due. 

Under the terms of the Indenture, the Debt Securities may be redeemed, in whole but not in part, at the Issuer’s sole discretion, on not
less than 30 nor more than 60 days’ notice, on the Reset Date (the “Optional Redemption Date”). The redemption price shall be equal to 100% of their principal amount plus any accrued and unpaid interest to (but excluding) the Optional
Redemption Date. 
 Notwithstanding anything to the contrary in the Indenture, the Issuer may only redeem or repurchase the Debt Securities
prior to Maturity pursuant to the Indenture if the Issuer has obtained any Relevant Supervisory Consent. 

  
 A-9 

 On the Issue Date, and for so long as no Loss Absorption Disqualification Event has occurred, an
“Event of Default” with respect to the Debt Securities means any one of the following events: (A) an order is made by an English court which is not successfully appealed within 30 days after the date such order was made for winding up
of the Issuer other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency; (B) an effective resolution is validly adopted by the Issuer’s shareholders for winding up of the Issuer other
than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency; (C) failure to pay principal or premium, if any, on the Debt Securities at Maturity, and such default continues for a period of 30 days;
or (D) failure to pay any interest on the Debt Securities when due and payable, which failure continues for 30 days. 
 On and after
the date a Loss Absorption Disqualification Event has occurred, an “Event of Default” with respect to the Debt Securities means any one of the following events: (A) an order is made by an English court which is not successfully
appealed within 30 days after the date such order was made for winding up of the Issuer other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency; or (B) an effective resolution is validly
adopted by the Issuer’s shareholders for winding up of the Issuer other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency. 

On and after the date a Loss Absorption Disqualification Event has occurred, a “Default” with respect to the Debt Securities means
any one of the following events: (A) failure to pay principal or premium, if any, on the Debt Securities at Maturity, and such default continues for a period of 30 days; or (B) failure to pay any interest on the Debt Securities when due
and payable, which failure continues for 30 days. 
 If a Default occurs, the Trustee may institute proceedings in England (but not
elsewhere) for the Issuer’s winding-up; provided that the Trustee may not, upon the occurrence of a Default, accelerate the maturity of any Debt Securities then Outstanding, unless an Event of
Default has occurred and is continuing. 
 Notwithstanding the immediately preceding two paragraphs, failure to make any payment in respect
of the Debt Securities shall not be a Default in respect of the Debt Securities if such payment is withheld or refused: (A) in order to comply with any fiscal or other law or regulation or with the order of any court of competent jurisdiction,
in each case applicable to such payment; or (B) in case of doubt as to the validity or applicability of any such law, regulation or order, in accordance with advice given as to such validity or applicability at any time during the said grace
period of 30 days by independent legal advisers acceptable to the Trustee; provided, however, that the Trustee may, by notice to the Issuer, require the Issuer to take such action (including but not limited to proceedings for a
declaration by a court of competent jurisdiction) as the Trustee may be advised in an opinion of counsel, upon which opinion the Trustee may conclusively rely, is appropriate and reasonable in the circumstances to resolve such doubt, in which case
the Issuer shall forthwith take and expeditiously proceed with such action and shall be bound by any final resolution of the doubt resulting therefrom. If any such resolution determines that the relevant payment can be made without violating any
applicable law, regulation or order then the preceding sentence shall cease to have effect and the payment shall become due and payable on the expiration of the relevant grace period of 30 days after the Trustee gives written notice to the Issuer
informing the Issuer of such resolution. 
 A “Loss Absorption Disqualification Event” shall be deemed to have occurred if clause
(C) or (D) of the definition of Event of Default (as such term is defined on the Issue Date) has caused or is likely to cause the Debt Securities to be fully or partially ineligible to meet the Issuer’s minimum requirements for
(x) eligible liabilities and/or (y) loss absorbing capacity instruments, in each case pursuant to the relevant 

  
 A-10 

 
Loss Absorption Regulations, as a result of any: (1) Loss Absorption Regulation becoming effective on or after the Issue Date; or (2) 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. 

“Loss Absorption Regulations” means, at any time, the laws, regulations, requirements, guidelines, rules, standards and policies
from time to time relating to minimum requirements for own funds and eligible liabilities and/or loss absorbing capacity instruments in effect in the UK, including, without limitation to the generality of the foregoing, any delegated or implementing
acts (such as implementing or regulatory technical standards) adopted by the European Commission and applicable to the Issuer from time to time (whether or not such requirements, guidelines or policies are applied generally or specifically to the
Issuer or to the Issuer and any of its holding or subsidiary companies or any subsidiary of any such holding company). 
 By its acquisition
of the Debt Securities represented by this Global Security, each Holder (which, for these purposes, includes each beneficial owner of the Debt Securities) acknowledges, accepts, consents and agrees to be bound by the variation of the Events of
Default and Defaults on the occurrence of a Loss Absorption Disqualification Event (including as may occur without any prior notice from the Issuer), without the need for the Issuer to obtain any further consent from such Holder. 

If an Event of Default with respect to the Debt Securities of this series shall occur and be continuing, the principal of all of the Debt
Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture and this Global Security. The Indenture provides that in certain circumstances such declaration and its consequences may be
rescinded and annulled by the Holders of a majority in aggregate principal amount of the Outstanding Debt Securities of such series. If a Default with respect to Debt Securities of this series occurs and is continuing, the Trustee may pursue certain
remedies as set forth in the Indenture. The Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of this series may on behalf of all the Holders waive any past Event of Default or any Default under the
Indenture or the Debt Securities and its consequences except a default (i) in the payment of principal of (or premium, if any, on) or any installment of interest on any of the Debt Securities or (ii) in respect of a covenant or provision
which under the Indenture cannot be modified or amended without the consent of the Holder of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt Security and of any Debt Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt Security or such other Debt Securities. 

The Indenture contains provisions permitting the Issuer and the Trustee (i) without the consent of the Holders of any Debt Securities
issued under the Indenture to execute one or more supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure the Debt Securities, and (ii) with the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of modifying in any manner the rights of Holders under the Indenture; provided that, with respect to certain enumerated provisions, no such supplemental indenture may be entered into without the consent of the
Holder of each Outstanding Debt Security affected thereby. The Indenture also permits the Holders of at least a majority in aggregate principal amount of the Outstanding Debt Securities of each series to be affected, on behalf of the Holders of all
Debt Securities of such series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture. Any such consent or waiver by the Holder of this Global Security shall bind every future Holder of this Global Security and of
any Global Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Global Security or such other Global Securities. 

  
 A-11 

 Subject to the terms of the Indenture, the Depositary may surrender this Global Security or any
portion hereof in exchange, in whole or in part, for definitive Debt Securities, of this series in registered form and the Registrar, acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Security or the portions
thereof to be exchanged, an equal aggregate face amount of definitive Debt Securities (duly countersigned) in the numbers and in the names advised by the Depositary. 

By its acquisition of the Debt Securities represented by this Global Security, each Holder (which, for these purposes, includes each
beneficial owner of the Debt Securities) acknowledges, accepts, consents and agrees, notwithstanding any other term of the Debt Securities, the Indenture or any other agreements, arrangements or understandings between the Issuer and any Holder, to
be bound by (a) the effect of the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority that may include and result in any of the following, or some combination thereof: (i) the
reduction of all, or a portion, of the Amounts Due; (ii) the conversion of all, or a portion, of the Amounts Due into the Issuer’s or another Person’s ordinary shares, other securities or other obligations (and the issue to, or
conferral on, the Holder of such ordinary shares, other securities or other obligations), including by means of an amendment, modification or variation of the terms of the Debt Securities or the Indenture; (iii) the cancellation of the Debt
Securities; and/or (iv) the amendment or alteration of the Maturity of the Debt Securities or amendment of the amount of interest payable on the Debt Securities, or the interest payment dates, including by suspending payment for a temporary
period; and (b) the variation of the terms of the Debt Securities or the Indenture, if necessary, to give effect to the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority. No
repayment or payment of Amounts Due shall become due and payable or be paid after the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority if and to the extent such amounts have been
reduced, converted, cancelled, amended or altered as a result of such exercise. Moreover, each Holder (which, for these purposes, includes each beneficial owner of the Debt Securities) consents to the exercise of any UK Bail-in Power as it may be imposed without any prior notice by the Relevant UK Resolution Authority of its decision to exercise such power with respect to the Debt Securities. 

“Amounts Due” means the principal amount of, and any accrued but unpaid interest, including any Additional Amounts, on, the Debt
Securities. References to such amounts will include amounts that have become due and payable, but which have not been paid, prior to the exercise of any UK Bail-in Power by the Relevant UK Resolution
Authority. 
 “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions
and investment firms, as amended, supplemented or replaced from time to time. 
 “UK Bail-in
Power” means any write-down, conversion, transfer, modification or suspension power existing from time to time under, and exercised in compliance with, any laws, regulations, rules or requirements in effect in the United Kingdom, relating to
the transposition of the BRRD or otherwise, including but not limited to the Banking Act and the instruments, rules and standards created thereunder, pursuant to which (i) any obligation of a Regulated Entity (or other affiliate of such
Regulated Entity) can be reduced, cancelled, modified or converted into shares, other securities or other obligations of such Regulated Entity or any other person (or suspended for a temporary period); and (ii) any right in a contract governing
an obligation of a Regulated Entity may be deemed to have been exercised. 
 “PRA” means the UK Prudential Regulation Authority or
any successor entity. 

  
 A-12 

 “Regulated Entity” means any BRRD Undertaking as such term is defined under the PRA
Rulebook promulgated by the PRA, as amended from time to time, which includes certain credit institutions, investment firms and certain of their parent or holding companies or any comparable future definition intended to designate entities within
the scope of the UK recovery and resolution regime. 
 “Relevant Regulator” means the PRA or any successor entity or other entity
primarily responsible for the prudential supervision of the Issuer. 
 “Relevant Rules” means, at any time, the laws, regulations,
requirements, guidelines and policies relating to capital adequacy (including, without limitation, as to leverage) then in effect in the United Kingdom including, without limitation to the generality of the foregoing, as may be required by CRD IV or
BRRD or any applicable successor legislation or any delegated or implementing acts (such as regulatory technical standards) adopted by the European Commission and applicable to the Issuer from time to time and any regulations, requirements,
guidelines and policies relating to capital adequacy adopted by the Relevant Regulator from time to time (whether or not such requirements, guidelines or policies are applied generally or specifically to the Issuer or to the Issuer and any of its
holding or subsidiary companies or any subsidiary of any such holding company). 
 “Relevant Supervisory Consent” means as (and to
the extent) required, a consent or waiver to the relevant redemption or purchase from the Relevant Regulator. For the avoidance of doubt, Relevant Supervisory Consent shall not be required if either (i) none of the Debt Securities qualify as
part of the Issuer’s regulatory capital, or own funds and eligible liability or loss absorbing capacity instruments, as the case may be, each pursuant to the Loss Absorption Regulations, (ii) the relevant Debt Securities are repurchased
for market-making purposes in accordance with any permission given by the Relevant Regulator pursuant to Relevant Rules (including, without limitation, Article 29(3) of Commission Delegated Regulation (EU) No. 241/2014) within the limits
prescribed in such permission or (iii) the relevant Debt Securities are being redeemed or repurchased pursuant to any general prior permission granted by the Relevant Regulator or any authority with the ability to exercise a UK Bail-in Power pursuant to the Relevant Rules or the Loss Absorption Regulations within the limits prescribed in such permission. 

“Relevant UK Resolution Authority” means any authority with the ability to exercise a UK
Bail-in Power. 
 By its acquisition of the Debt Securities, each Holder (which, for these purposes,
includes each beneficial owner of the Debt Securities): (i) acknowledges and agrees that the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Debt Securities shall
not give rise to a Default or 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; (ii) to the extent permitted by
the Trust Indenture Act, waives any and all claims, in law and/or in equity, against the Trustee for, agrees not to initiate a suit against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee
takes, or abstains from taking, in either case (x) in accordance with the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Debt Securities or (y) in
connection with the variation of the Events of Default and Defaults on the occurrence of a Loss Absorption Disqualification Event; and (iii) acknowledges and agrees that, upon the exercise of any UK
Bail-in Power by the Relevant UK Resolution Authority, the Trustee shall not be required to take any further directions from Holders under Section 4.11 (Control by Holders of Debt Securities) of
the Indenture; and that the Indenture shall not impose any duties upon the Trustee whatsoever with respect to the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority. 

  
 A-13 

 Notwithstanding clause (iii) of the immediately preceding paragraph, if, following the
completion of the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority, the Debt Securities remain outstanding (for example, if the exercise of the UK
Bail-in Power results in only a partial write-down of the principal of the Debt Securities), then the Trustee’s duties under the Indenture shall remain applicable with respect to the Debt Securities
following such completion to the extent that the Issuer and the Trustee shall agree pursuant to a supplemental indenture or an amendment to the Indenture; provided, however that notwithstanding the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority, there shall at all times be a Trustee hereunder pursuant to, and in accordance with Section 6.09 of the Base Indenture, and the resignation and/or removal
of the Trustee and the appointment of a successor trustee shall continue to be governed by Sections 6.10 and 6.11 of the Base Indenture, including to the extent no supplemental indenture or amendment to the Indenture is agreed upon pursuant to the
Indenture in the event the Debt Securities remain outstanding following the completion of the exercise of the UK Bail-in Power. 

It is the intention of the Issuer and the Trustee that the Issuer’s obligations to indemnify the Trustee and the Agent in accordance with
Section 6.07 of the Base Indenture (for the avoidance of doubt, as amended by Section 4.01 of the second supplemental indenture dated May 25, 2016) shall survive any exercise of the UK Bail in Power by the Relevant UK Resolution
Authority. 
 The exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with
respect to the Debt Securities shall not constitute an Event of Default or a Default. 
 In addition to the right to enter into supplemental
indentures pursuant to Sections 9.01 and 9.02 of the Base Indenture, the Issuer and the Trustee may enter into one or more indentures supplemental to the Indenture to modify and amend the terms of the Indenture or the Debt Securities, without the
further consent of any Holders, to the extent necessary to give effect to the exercise by the Relevant UK Resolution Authority of the UK Bail-in Power. 

Upon the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the
Debt Securities, the Issuer shall provide a written notice to the Holders through the Clearing Systems as soon as practicable regarding such exercise of the UK Bail-in Power for purposes of notifying Holders
and beneficial owners of the Debt Securities of such occurrence. The Issuer shall also deliver a copy of such notice to the Trustee for information purposes. 

Upon the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority that results in the
reduction or cancellation of all, or a portion, of the principal amount of this Global Security and/or the conversion of all, or a portion, of the principal amount of this Global Security into shares or other securities or other obligations of the
Issuer or another person, the portion of the principal amount hereof so reduced, cancelled and/or converted shall be endorsed by the Registrar on Schedule B hereto. The principal amount hereof shall be reduced for all purposes by the amount so
reduced, cancelled and/or converted. 
 By its acquisition of a Debt Security, each Holder (which, for these purposes, includes each
beneficial owner of the Debt Securities) of the Debt Securities shall be deemed to have authorized, directed and requested the Clearing Systems and any direct participant in the Clearing Systems or other intermediary through which it holds the Debt
Securities to take any and all necessary action, if required, to implement the exercise of any UK Bail-in Power with respect to the Debt Securities as it may be imposed, without any further action or direction
on the part of such Holder or beneficial owner, the Trustee and the Agent (and any other agent acting in connection with the relevant series of Debt Securities). 

  
 A-14 

 To the fullest extent permitted by law, the Holders and the Trustee, in respect of
any claims of such Holders to payment of any principal, premium or interest in respect of the Debt Securities, by their acceptance of the Debt Securities, shall be deemed to have waived any right of set-off or
counterclaim that such Holders or, as the case may be, the Trustee in such respect, might otherwise have. 
 ANY HOLDER (WHICH, FOR THESE
PURPOSES, INCLUDES EACH BENEFICIAL OWNER OF THE DEBT SECURITIES) THAT ACQUIRES THE DEBT SECURITIES IN THE SECONDARY MARKET AND ANY SUCCESSORS, ASSIGNS, HEIRS, EXECUTORS, ADMINISTRATORS, TRUSTEES IN BANKRUPTCY AND LEGAL REPRESENTATIVES OF ANY HOLDER
OR BENEFICIAL OWNER OF THE DEBT SECURITIES SHALL BE DEEMED TO ACKNOWLEDGE, AGREE TO BE BOUND BY AND CONSENT TO THE SAME PROVISIONS SPECIFIED HEREIN TO THE SAME EXTENT AS THE HOLDERS OR BENEFICIAL OWNERS OF THE DEBT SECURITIES THAT ACQUIRE THE DEBT
SECURITIES UPON THEIR INITIAL ISSUANCE, INCLUDING, WITHOUT LIMITATION, WITH RESPECT TO THE ACKNOWLEDGEMENT AND AGREEMENT TO BE BOUND BY AND CONSENT TO THE TERMS OF THE DEBT SECURITIES RELATED TO THE UK BAIL-IN
POWER, LIBOR AND THE VARIATION OF THE EVENTS OF DEFAULT AND DEFAULTS ON THE OCCURRENCE OF A LOSS ABSORPTION DISQUALIFICATION EVENT. 
 The
Indenture and the Debt Securities may be amended and modified as provided in the Indenture. 
 All terms used in this Global Security and
not otherwise defined shall have the meanings ascribed to them in the Indenture. 
 The Indenture and the Debt Securities shall be governed
by, and construed in accordance with, the laws of the State of New York. 

  
 A-15 

 SCHEDULE A 

EXCHANGES FOR DEFINITIVE DEBT SECURITIES 

The following exchanges of parts of this Global Security for Definitive Debt Securities have been made: 

 

									
	 Date Made
	  	 	 	 Principal amount
exchanged for Definitive

Debt Securities
	  	 	 	 Remaining principal
amount following such

exchange    

	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 

  
 A-16 

 SCHEDULE B 

REDUCTION, CANCELLATION OR CONVERSION OF DEBT SECURITIES UPON THE EXERCISE OF ANY UK BAIL-IN POWER BY
THE RELEVANT UK RESOLUTION AUTHORITY 
  

									
	Date made	  	 	 	Principal amount
reduced, cancelled
and/or converted	  	 	 	Remaining principal
amount following
reduction, cancellation
and/or conversion    
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 
	     
	  		 	 	  		 	 

  
 A-17Exhibit
10.28

 

 

EMPLOYMENT
AGREEMENT

 

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made, entered into, and effective as of June 25, 2018 (the “Effective
Date”), by and between Cipherloc Corporation a Texas Corporation, with its principal place of business located at 825 Main
Street, Suite 100 Buda, TX 78610 (“Company”), and Milton Mattox, Ed. D, an individual located at 2155 S. 55th St.
#3007,Tempe, AZ 85282 (“Employee”) (individually, a “Party”; collectively, the “Parties”).

 

RECITALS

 

WHEREAS,
Company desires to employ Employee, and Employee desires to be employed as Vice President of Sales and Marketing and;

 

WHEREAS,
Company desires to have an employment agreement with Employee as its Vice President of Sales and Marketing, subject to the
terms and conditions of this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants and conditions contained herein, the Parties hereto hereby agree as follows:

 

AGREEMENT

 

1. Term
of Employment.

 

a. Specified
Period. Company hereby employs Employee and Employee accepts employment with Company for a period of one year beginning
on June 25, 2018 and terminating on June 24, 2019.

 

b. Renewal. This
Agreement is subject to automatic renewal upon the same terms and conditions as set forth herein, unless either
this Agreement is terminated pursuant to Section 8 hereof or a Party gives written notice to the other Party of its intent to
terminate, at least 30 days prior to expiration of the then-current term.

 

c. Employment
Term Defined. “Employment term” refers to the entire period of employment of Employee by Company, whether
for the period provided above, or whether terminated earlier as hereinafter provided or extended by mutual agreement between
Company and Employee.

 

2. Duties
and Obligations of Employee.

 

Employee
shall serve as Vice President of Sales and Marketing and shall report to the President. Employee shall faithfully and diligently
perform all services and duties as may be requested and required of Employee by the President. Employee shall devote such time
and attention on an exclusive basis to oversee the development of the Company’s Sales and Business Development. Employee
at all times during the employment term shall strictly adhere to and obey all policies, rules and regulations established from
time to time governing the conduct of employees of the Company.

 

    	 	 	 

    	 

    

 

3. Exclusivity,
Non-Disclosure.

 

a. Devotion
to Company Business. Employee agrees to perform Employee’s services efficiently and to the best of
Employee’s ability. Employee agrees throughout the term of this Agreement to devote his time, energy and skill to the
business of the Company and to the promotion of the best interests of the Company.

 

b.
Trade Secrets. Employee agrees that he shall not at any time, either during or
subsequent to his employment term, unless expressly consented to in writing by Company, either directly or indirectly use or disclose
to any person or entity any confidential information of any kind, nature or description concerning any matters affecting or relating
to the business of Company, including, but not limited to, information concerning the customers of Company, Company’s marketing
methods, compensation paid to employees, independent contractors or suppliers and other terms of their employment or contractual
relationships, financial and business records, know-how, or any other information concerning the business of Company, its manner
of operations, or other data of any kind, nature or description. Employee agrees that the above information and items are important,
material and confidential trade secrets and these affect the successful conduct of Company’s business and its goodwill.

 

c. Inventions
and Patents. Employee agrees to disclose and to assign immediately to the Company, or to any persons designated by the
Company, or at the Company’s option, any of the Company’s successors or assigns, all inventions or improvements
which are or were made, conceived or reduced to practice by Employee, whether acting independently or with others, during the
course of Employee’s employment with the Company, and which (i) were made, conceived of or first reduced to practice in
the performance of any duties assigned to or undertaken by the Employee as an employee of the Company; or (ii) were made,
conceived of or first reduced to practice with the use of the Company’s time, material, facilities or funds.

 

d. Third
Party Information. Employee recognizes that the Company has received and, in the future, will receive from third parties
their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality
of such information and to use it only for certain limited purposes. Employee agrees to hold all such confidential or
proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it
except as necessary in carrying out Employee’s work for the Company consistent with the Company’s agreement with
such third party.

 

e. Conflicting
Employment. Employee agrees that, during the term of his employment with the Company, Employee will devote his full time
and efforts to the Company and he will not engage in any other employment, occupation or consulting activity, nor will
Employee engage in any other activities that conflict with Employee’s obligations to the Company without written
consent of the Company.

 

f. Solicitation
of Employees. By executing this Employment Agreement Employee agrees that for a period of eighteen (18) months
immediately following the termination of Employee’s relationship with the Company for any reason, whether with or
without good cause or for any or no cause, at the option either of the Company or Employee, with or without notice, Employee
will not hire any employees of the Company and will not, either directly or indirectly, solicit, induce, recruit or encourage
any of the Company’s employees to leave their employment, or take away such employees, or attempt to solicit, induce,
recruit, encourage or take away employees of the Company, either for Employee or for any other person or entity.

 

g. Noncompetition
Covenants. Employee further agrees that during the period of employment by the Company and for a period of two (2) years
thereafter, regardless of the reason for the termination of such employment, Employee will not, directly or indirectly,
whether alone or as a partner, joint venture, officer, director, consultant, employee, independent contractor or stockholder
of any company or business organization, engage in any business activity and/or accept employment with any person or entity,
which is or may be directly or indirectly in competition with the products or services being marketed, promoted, distributed,
developed, planned, sold or otherwise provided by the Company. The ownership by Employee of not more than one percent of the
shares of capital stock of any corporation having a class of equity securities traded on a national securities exchange shall
not be deemed, in and of itself, to violate this section.

 

    	 	 	 

    	 

    

 

4. Compensation.

 

a. Salary. Subject
to the termination of this Agreement as provided herein, Company shall compensate Employee for his services hereunder at an
annual salary of $120,000.00 and payable in accordance with the Company’s practices, less normal payroll
deductions, and prorated for the actual employment term.

 

b. Stock
Compensation. Employee shall receive stock valued at $5,000 on a monthly basis commencing on the 25th day of
July and each moth thereafter during the initial term of this Agreement. The value of the stock shall be the closing price on
the 24th day of each month

 

c.
Commissions. Employee shall receive a commission equal to 1% of the gross sales
of the Company and said commission shall not exceed $1,000,000 per year.

 

d. Salary
Increases; Bonuses. Employee shall receive such annual increases in salary and such additional compensation as may be
determined by the Board of Directors of the Company in its sole discretion. Such salary increases, and/or additional
compensation shall be paid to Employee on the anniversary date of this Agreement during the Employment Term, and at such
other times as may be determined by the Board of Directors. Annual bonuses shall be equal to employees’ annual
salary.

 

5. Employee
Incentives. Employee shall be entitled to receive incentives under all incentive plans made available by Company or in
the future to similarly situated employees, subject to the terms, conditions and overall administration of such plans,
including but not limited to stock options, profit sharing, and any other incentive plans that the Company has or will make
available to similarly situated employees.

 

6. Employee
Benefits.

 

a. Vacation.
Each full time Employee shall be entitled, during each employment year, to two weeks vacation, per annum,
non-cumulative. Employee may be absent from his employment for Vacation only at such times as may be convenient to Company
and Employee.

 

b. Medical
Coverage. Company agrees to include Employee in the coverage of its medical and dental insurance when
implemented.

 

c. Plan
Participation. Employee shall be entitled to participate in or to receive benefits under all of Company’s employee
benefit plans made available by Company or in the future to similarly situated employees, subject to the terms, conditions
and overall administration of such plans, including but not limited to 401(k) plans, IRA plans, E.R.I.S.A Plans, any other
retirement or benefit plans that the Company has made available to similarly situated employees.

 

7. Business
Expenses. 

 

Employee
will be required to incur travel, meals, entertainment and other business expenses on behalf of the Company in the performance
of Employee’s duties hereunder. Company will reimburse Employee for all such reasonable business expenses incurred by Employee
in connection with Company’s business upon presentation of receipts or other acceptable documentation of the expenditures.
In compensating Employee for expenses, the ordinary and usual business guidelines and documentation requirements shall be adhered
to by Company and Employee.

 

    	 	 	 

    	 

    

 

8. Termination
of Employment.

 

(1) Termination
for Cause. For purposes of this Agreement, “Cause” shall mean the occurrence of any one of the following
events:

 

(a)
Employee’s material breach of any provision of this Agreement or of Executive Employee Confidentiality, Non-Competition
and Invention Assignment Agreement of even date herewith, entered into by and between the Company and Employee, which breach
is not cured within ten days after the Company provides Employee with written notice of the nature and existence of such
material breach;

 

(b)
Employee’s willful refusal to obey written directions of Employee’s supervisor of the Company (so long as such
directions do not involve illegal or immoral or otherwise improper acts), which refusal continues for a period of five
business days after notice to Employee by the Company, and which notice references such refusal and this Section
8.

 

(c)
Employee’s failure to perform Employee’s duties and responsibilities with diligence and in accordance with the
productivity and quality requirements of the Company, which failure continues for a period of ten business days after written
notice to Employee by the Company of Employee’s failure to perform; provided, however, that if Employee has been
provided written notice pursuant to this Section 8 on two separate occasions during the Initial Term, any subsequent failure
by Employee to perform Employee’s duties and responsibilities in accordance with the Company’s requirements shall
constitute Cause and the Company shall not be required to provide any written notice or opportunity for Employee to correct
Employee’s performance prior to a termination of Employee’s employment by the Company;

 

(d)
Employee’s repeated refusal to comply with Company written policies or requirements which are adopted by the Board
of Directors from time to time and which apply to Employee’s responsibilities;

 

(e)
Employee’s action, or failure to act, in violation of any provision of the Company’s
standard employee guidelines, including but not limited to any policy concerning sexual harassment, substance abuse, as such policies
may be in effect from time to time, if such violation of the Company’s policy would generally result in the termination
of employment of a Company employee;

 

(f)
Fraud or dishonesty by Employee, in the good faith opinion of the Board of Directors
of the Company; or

 

(g)
If Employee is convicted or admits to the commission of a criminal offense or act of
moral turpitude that constitutes a felony in the jurisdiction in which the offense is committed.

 

(h)
The notice of termination required by this section shall specify the ground for the
termination and shall be supported by a statement of all relevant facts.

 

(2). Termination
Upon Death or Disability.

 

i. Death.
This Agreement shall be terminated immediately upon the death of Employee.

 

ii. Disability.
Company reserves the right to terminate this Agreement if, due to illness or injury, either physical or mental, Employee is
unable to perform Employee’s customary duties as an employee of Company, unless reasonable accommodation can be made to
allow Employee to continue working, for more than 30 days in the aggregate out of a period of 12 consecutive months. The
disability shall be determined by a certification from a physician. Such a termination shall be effected by giving ten
days’ written notice of termination to Employee. Termination pursuant to this provision shall not prejudice
Employee’s rights to receive disability insurance payments or the continued compensation pursuant to this
Agreement.

 

    	 	 	 

    	 

    

 

iii. Without
cause. Termination under this section for either death or disability shall not be considered “for cause” for
the purposes of this Agreement.

 

(3). Effect
of Merger, Transfer of Assets, or Dissolution. Without the prior written consent of Employee, this Agreement shall not
be terminated by any voluntary or involuntary dissolution of Company resulting from a merger or consolidation in which
Company is not the consolidated or surviving corporation, or a transfer of all or substantially all of the assets of Company.
In the event of any such merger or consolidation or transfer of assets, Employee’s rights, benefits, and obligations
hereunder shall be assigned to the surviving or resulting corporation or the transferee of Company’s assets, unless
Employee agrees otherwise.

 

(4). Payment
on Termination. If Company terminates this Agreement “without cause,” it shall pay “Severance
Benefits” to the Employee. Severance Benefits shall mean, for purposes of this Agreement, a cash payment equal to the
aggregate compensation payable to the Employee during the remaining term of this Agreement, including all salary,
commissions, bonuses and other compensation.

 

(5). Termination
by Employee.

 

i. Without
Cause. Employee may terminate this Agreement without cause upon 30 days’ prior written notice to
Company.

 

ii. With
Cause. Employee may terminate this Agreement immediately with cause, in which event Employee shall receive the Payment
on Termination in accordance with Section 8(4) herein. For the purposes of this Agreement, “cause” for
termination by Employee shall be a breach of any material covenant or obligation hereunder; or the termination of this
Agreement without the prior written consent of Employee due to the voluntary or involuntary dissolution of the Company, any
merger or consolidation in which the Company is not the surviving or resulting corporation, or any transfer of all or
subsequently all of the assets of Company.

 

9. General
Provisions.

 

a. Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the Parties hereto their respective devisees,
legatees, heirs, legal representatives, successors, and permitted assigns. The preceding sentence shall not affect any
restriction on assignment set forth elsewhere in this Agreement.

 

b. Notices. Any
notice, request, instruction, or other document required by the terms of this Agreement, or deemed by any of the
Parties hereto to be desirable, to be given to any other party hereto shall be in writing and shall be given by personal
delivery, overnight delivery, mailed by registered or certified mail, postage prepaid, with return receipt requested, or sent
by facsimile/electronic transmission to the addresses of the Parties as follows:

 

	 	To
Company:	 	 
	 	 	 	Cipherloc
Corporation
	 	 	 	825
Main Street, Suite 100
	 	 	 	Buda,
TX 78610
	 	 	 	Email:mdgl@Cipherloc.net
	 	 	 	Attn:
President
	 	 	 	 
	 	To
    Employee: 	 	 
	 	 	 	 
	 	 	 	Milton
    Mattox, Ed. D
	 	 	 	2155
    S. 55th St. #3007
	 	 	 	Tempe,
    AZ 85282
	 	 	 	Email:
    mcmattox@cox.net

 

    	 	 	 

    	 

    

 

The
persons and addresses set forth above may be changed from time to time by a notice sent as aforesaid. If notice is given by personal
delivery or overnight delivery in accordance with the provisions of this Section, such notice shall be conclusively deemed given
at the time of such delivery provided a receipt is obtained from the recipient. If notice is given by mail in accordance with
the provisions of this Section, such notice shall be conclusively deemed given upon receipt and delivery or refusal. If notice
is given by facsimile/electronic transmission in accordance with the provisions of this Section, such notice shall be conclusively
deemed given at the time of delivery if during business hours and if not during business hours, at the next business day after
delivery, provided a confirmation is obtained by the sender.

 

c. Sums
Due Deceased Employee. If Employee dies prior to the expiration of the employment term, any sums that may be due him
from Company under this Agreement as of the date of death shall be paid to Employee’s executors, administrators, heirs,
personal representatives, successors, and assigns.

 

d. Assignment.
Subject to all other provisions of this Agreement, any attempt to assign or transfer this Agreement or any of the rights
conferred hereby, by judicial process or otherwise, to any person, firm, Company, or corporation without the prior written
consent of the other Party, shall be invalid, and may, at the option of such other Party, result in an incurable event of
default resulting in termination of this Agreement and all rights hereby conferred.

 

e. Choice
of Law. This Agreement and the rights of the parties hereunder shall be governed by and construed in accordance with the
laws of the State of Texas including all matters of construction, validity, performance, and enforcement and without giving
effect to the principles of conflict of laws.

 

f. Jurisdiction.
The parties submit to the jurisdiction of the Courts of the State of Texas or a Federal Court impaneled in the State of
Texas for the resolution of all legal disputes arising under the terms of this Agreement.

 

g. Indemnification.
Company shall indemnify, defend and hold Employee harmless, to the fullest extent permitted by law, for all claims, demands,
losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest, penalties and
reasonable attorney’s fees that Employee shall incur or suffer that arise from, result from or relate to the discharge
of Employee’s duties under this Agreement. Company shall maintain adequate insurance for this purpose or shall advance
Employee any expenses incurred in defending any such proceeding or claim to the maximum extent permitted by law.

 

h. Entire
Agreement. Except as provided herein, this Agreement, including exhibits, contains the entire agreement of the Parties,
and supersedes all existing negotiations, representations, or agreements and all other oral, written, or other communications
between them concerning the subject matter of this Agreement. There are no representations, agreements, arrangements, or
understandings, oral or written, between and among the Parties hereto relating to the subject matter of this Agreement that
are not fully expressed herein.

 

i. Severability.
If any provision hereof is held to be illegal, invalid or unenforceable under present or future laws effective during the
term hereof, such provision shall be fully severable. This Agreement shall be construed and enforced as if such illegal,
invalid or unenforceable provision had never comprised a part hereof, and the remaining provisions hereof shall remain in
full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance
wherefrom. Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically by the
Company as a part hereof a provision as similar in terms to such illegal, invalid or unenforceable provision as may be
possible and legal, valid and enforceable.

 

j. Captions.
The captions in this Agreement are inserted only as a matter of convenience and for reference and shall not be deemed to
define, limit, enlarge, or describe the scope of this Agreement or the relationship of the Parties, and shall not affect this
Agreement or the construction of any provisions herein.

 

    	 	 	 

    	 

    

 

k. Modification.
No change, modification, addition, or amendment to this Agreement shall be valid unless in writing and signed by all Parties
hereto.

 

l. Attorneys’
Fees. In the event any Party hereto shall commence legal proceedings against the other to enforce the terms hereof, or
to declare rights hereunder, as the result of a breach of any covenant or condition of this Agreement, the prevailing Party
in any such proceeding shall be entitled to recover from the losing Party its costs of suit, including reasonable
attorneys’ fees, as may be fixed by the court.

 

m. Taxes.
Any income taxes required to be paid in connection with the payments due hereunder, shall be borne by the Party required to
make such payment. Any withholding taxes in the nature of a tax on income shall be deducted from payments due, and the Party
required to withhold such tax shall furnish to the Party receiving such payment all documentation necessary to prove the
proper amount to withhold of such taxes and to prove payment to the tax authority of such required withholding.

 

n. Not
for the Benefit of Creditors or Third Parties. The provisions of this Agreement are intended only for the regulation of
relations among the Parties. This Agreement is not intended for the benefit of creditors of the Parties or other third
Parties and no rights are granted to creditors of the Parties or other third Parties under this Agreement. Under no
circumstances shall any third party, who is a minor, be deemed to have accepted, adopted, or acted in reliance upon this
Agreement.

 

o. Counterparts.
This Agreement may be executed in several counterparts and it shall not be necessary for each Party to execute each of such
counterparts, but when all of the parties have executed and delivered one of such counterparts, the counterparts, when taken
together, shall be deemed to constitute one and the same instrument, enforceable against each Party in accordance with its
terms.

 

p. Facsimile
Signatures. The parties hereto agree that this Agreement may be executed by facsimile signatures and such signatures
shall be deemed originals. The parties further agree that within ten days following the execution of this Agreement, they
shall exchange original signature pages.

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of the Effective Date.

 

	 	COMPANY:
	 	 	 
	 	Cipherloc Corporation, a Texas Corporation
	 	 	 
	 	 	/s
    Michael De La Garza
	 	By:	 Michael De La Garza
	 	Its:	 President/CEO
	 	 	 
	 	EMPLOYEE:
	 	 	 
	 	Milton Mattox, Ed. D
	 	 	 
	 	 	/s/
    Milton Mattox
	 	By:	 Milton Mattox, Ed. D

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