Document:

Exhibit 10.1

 

ACETO CORPORATION

2013 SENIOR EXECUTIVE RETIREMENT PLAN

 

Aceto Corporation (“Aceto” or the “Company”) hereby establishes the Aceto Corporation 2013 Senior Executive Retirement Plan (the “Plan”).  The purpose of the Plan is to provide a program of deferred compensation for a select group of management or highly compensated employees who meet the participation requirements set forth herein. As such, the Plan is intended to be a “top hat” plan, which is unfunded for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and to be exempt from any ERISA provision that is deemed inapplicable to an unfunded plan. This Plan is also intended to comply in form and operation with the requirements of Code Section 409A and its corresponding regulations and shall be interpreted in a manner consistent with such Code section and regulations.

 

Article 1 - Definitions

 

	
1.1

	
Account

 

The sum of all the bookkeeping sub-accounts as may be established for each Participant as provided in Section 5.1 hereof.

 

	
1.2

	
Administrator or Plan Administrator

 

An individual or committee appointed by the Board or other responsible corporate officer to serve as the Plan Administrator and as the agent for the Plan Sponsor with respect to the Plan and Trust.

 

	
1.3

	
Board

 

The Board of Directors of Aceto Corporation.

 

	
1.4

	
Change-in-Control

 

Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a “Change-in-Control” of the Plan Sponsor shall mean the first to occur of any of the following:

 

(a)     the date that any one person or persons acting as a group, or an individual or entity that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control, acquires ownership of Plan Sponsor stock constituting more than thirty percent (30%) of the total voting power of the Plan Sponsor;

 

(b)     the date that any one person or persons acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets of the Plan Sponsor equal to thirty percent (30% ) of the total gross fair market value of all the assets of the Plan Sponsor immediately before such acquisition or acquisitions; or

 

    	  

    	 

    
 

 

 (c)     the date that two-thirds (2/3) of the members of the Plan Sponsor’s Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or elections.

 

To qualify as a Change in Control event, the occurrence of the event must be objectively determinable and certified by the Administrator.

 

	
1.5

	
Code

 

The Internal Revenue Code of 1986, as amended.

 

	
1.6

	
Compensation

 

A Participant’s annual bonus.

 

	
1.7

	
Disabled or Disability

 

If a Participant is unable to engage in any substantial gainful activity, or if a Participant receives benefits for at least three (3) months under the Plan Sponsor’s long-term disability plan, as a result of any medically determinable physical or mental impairment that is expected to result in death or continue for at least twelve (12) months. The Administrator shall determine whether a Participant is Disabled.

	
  

	 

	
1.8

	
Deferrals

 

The portion of a Participant’s Compensation that has been deferred in accordance with the Plan and the Participant’s most recent Deferral Election, as provided in Section 3.1 hereof.

 

	
1.9

	
Deferral Election

 

The separate agreement, submitted to the Administrator, by which an Eligible Participant agrees to participate in the Plan and make Deferrals thereto for a Plan Year.

 

	
1.10

	
Effective Date

 

July 1, 2013.

 

	
1.11

	
Eligible Employee

 

Any Company employee at the Senior Vice President level or above, who is actively employed and approved for participation by the Administrator.

 

    	

    	 

    
 

 

	
1.12

	
Employee

 

Any individual who is employed by or providing services to the Company.  The Company also means “service provider” as used in Treas. Reg. section 1.409A-1(f).

 

	
1.13

	
Investment Fund

 

Each investment(s) that serves as a means to measure value, increases or decreases with respect to a Participant’s Accounts.

 

1.14        Non-Elective Contribution

 

The contribution made by the Company described in Section 3.3.

 

1.15        Participant

 

An Eligible Employee who is a Participant as provided in Article 2.

 

1.16        Plan Sponsor

 

Aceto Corporation

 

	
1.17

	
Plan Year

 

July 1 – June 30

 

	
1.18

	
Retirement

 

Retirement shall mean a Participant’s Separation from Service from the Company.

 

	
1.19

	
Separation from Service

 

Provided that such term shall be interpreted within the meaning of regulations promulgated under Code Section 409A, a Participant shall incur a Separation from Service with the Service Recipient upon his or her cessation of employment with the Company.

 

	
1.20

	
Specified Employee

 

A key employee (as defined in Code section 416(i) without regard to Code section 416(i)(5)) of the Plan Sponsor (if such Plan Sponsor is publicly traded on an established securities market or otherwise).  An employee is a key employee if the employee meets the requirements of Code section 416(i)(1)(A)(i), (ii) or (iii) (applied in accordance with the regulations thereunder and disregarding Code section 416(i)(5)) at any time during the 12-month period ending on December 31. The application of rules regarding a “Specified Employee” to spinoffs and mergers and nonresident alien employees shall be determined pursuant to applicable Internal Revenue Service guidance.  For purposes of this Plan, all Participants shall be deemed Specified Employees.

 

    	

    	 

    
 

 

	
1.21

	
Trust

	
  

	
 

The agreement between the Plan Sponsor and the Trustee, under which the assets of the Plan are held, administered and managed.

 

	
1.22

	
Trustee

 

Such entity or successor that shall become Trustee pursuant to the terms of the Trust.

 

Article 2 - Participation

 

	
2.1

	
Commencement of Participation

 

Each Eligible Employee shall become a Participant as of the date on which his or her Deferral Election first becomes effective.

 

	
2.2

	
Loss of Eligible Employee Status

 

A Participant who is no longer an Eligible Employee shall not be permitted to submit a Deferral Election and all Deferrals for such Participant shall cease as of the end of the Plan Year in which such Participant is determined to no longer be an Eligible Employee.  Amounts credited to the Account of a Participant who is no longer an Eligible Employee shall continue to be held pursuant to the terms of the Plan and shall be distributed as provided in Article 6.

 

Article 3 - Contributions

 

	
3.1

	
Deferral Elections - General

	
  

	
 

A Participant’s Deferral Election for a Plan Year is irrevocable for that applicable Plan Year; provided, however that a Deferral Election for a Plan Year may be canceled upon a Participant’s death, Disability, Separation from Service or as required under Section 6.7 (Unforeseeable Emergency) of this Plan.  Such amounts deferred under the Plan shall not be made available to such Participant, except as provided in Article 6, and shall reduce such Participant’s Compensation from the Plan Sponsor in accordance with the provisions of the applicable Deferral Election; provided, however, that all such amounts shall be subject to the rights of the general creditors of the Plan Sponsor as provided in Article 8.  The Deferral Election, in addition to the requirements set forth below, must designate: (i) the amount of Compensation to be deferred, (ii) the Account that the Compensation is to be invested in, (iii) the time of the distribution, and (iv) the form of the distribution.

 

    	

    	 

    
 

 

	
3.2

	
Time of Election

 

A Deferral Election shall be void if it is not made in a timely manner as follows:

 

(a)    A Deferral Election with respect to any Compensation must be submitted to the Administrator not later than the close of the Plan Year next preceding the Plan Year during which the amount to be deferred will be earned.  As of the last day of the Plan Year next preceding the Plan Year in which the amount to be deferred will be earned, said Deferral Election is irrevocable for the Plan Year to which it relates.

 

(b)    Notwithstanding the foregoing, in a year in which an Eligible Employee is first eligible to participate, and provided that such Eligible Employee is not eligible to participate in any other similar account balance arrangement subject to Code Section 409A, such Deferral Election may be submitted within thirty (30) days after the date on which the Eligible Employee is first eligible to participate, and such Deferral Election shall apply to Compensation to be paid for services to be performed during the remainder of the Plan Year after such election is made.

 

	
3.3

	
Employer Contributions

 

In its sole discretion, the Company, by action of the Board, may from time to time allocate Employer contributions to Participants’ Accounts; provided, however, that all such Employer contributions, as determined in the discretion of the Board, need not be allocated among all Participants on the same basis.

 

	
3.4

	
Distribution Elections

 

At the time a Participant makes a Deferral Election, he or she must also elect the time and form of the distribution of benefits from the Plan.  If the Participant fails to properly designate the time and form of a distribution, the Participant shall be deemed to have elected to receive a single lump sum payment payable six (6) months following the date of the Employee’s Retirement.  A Participant’s Deferral Election regarding the time and form of distribution for any Plan Year shall also apply to the receipt of Employer Contributions, if any, for the same Plan Year.

 

	
3.5

	
Additional Requirements

 

The Deferral Election, subject to the limitations set forth in Sections 3.1 and 3.2 hereof, shall comply with the following additional requirements, or as otherwise required by the Administrator in its sole discretion: (a) Deferrals may be made in whole percentages or stated dollar amounts with such limitations as determined by the Administrator and (b) the maximum amount that may be deferred each Plan Year is one-hundred percent (100%) of the Participant’s Compensation.

 

    	

    	 

    
 

 

3.6          Crediting of Contributions

 

Deferrals shall be credited to a Participant’s Account, and if applicable transferred to the Trust, at such time as the Plan Sponsor shall determine.

 

Article 4 - Vesting

 

	
4.1

	
Vesting of Deferrals

 

A Participant shall be one hundred percent (100%) vested in his or her Account attributable to Deferrals and any earnings or losses on the investment of such Deferrals.

 

	
4.2

	
Vesting of Employer Contributions

 

Participants will be vested in all Employer Contributions under Article 3.3 of the Plan at a rate of 20% for each year of Credited Service, measured by Plan Year.  For purposes of this Plan, Credited Service means the Participant must have at least one thousand (1,000) hours of service (as defined in accordance with D.O.L. Regulation Section 2530.200(b)) in the Plan Year.  A Participant shall automatically become 100% vested in the event of the Participant’s death or if the Participant becomes Disabled.  A Participant shall receive credit for all Years of Credited Service with the Employer, including Years of Credited Service accrued prior to the Effective Date of the Plan and prior to the commencement of his or her participation in the Plan.

 

4.3          Forfeiture of Accounts

 

In the event a Participant has a Separation of Service prior to becoming 100% vested, his or her Non-Elective Contribution Account shall be forfeited to the extent not vested.  All forfeitures shall revert to the Company.

 

Article 5 - Accounts

 

	
5.1

	
Accounts

 

The Administrator shall establish and maintain a bookkeeping account in the name of each Participant.  Such Accounts shall include a Participant Account and a Non-Elective Contribution Account, sub-accounts including an Investment Account, and such other sub-accounts as the Administrator deems appropriate.  Each Participant’s Account shall be credited with Deferrals (as specified in the Participant’s Deferral Election), Non-Elective Contributions and the Participant’s allocable share of any earnings or losses on the foregoing.

 

    	

    	 

    
 

 

	
5.2

	
Investment Funds, Gains and Losses

 

(a)           It is the intention of the Plan Sponsor that the Plan be an unfunded top hat plan for highly compensated and managerial employees within the meaning of Title I of ERISA.  The Plan Sponsor shall be free to invest or not invest Accounts as the Plan Sponsor in its sole discretion shall determine.  Any investments which the Plan Sponsor determines to make with respect to the assets allocated to the Accounts shall remain, until distributed to Participants and their Beneficiaries in accordance with the terms of the Plan, assets of the Plan Sponsor and subject to its general creditors.  The Plan Sponsor may in its discretion establish a trust, known as a “rabbi trust”, for use in funding the benefits under the Plan with a Trustee to be selected by the Plan Sponsor and in accordance with a trust agreement which fully or substantially meets the requirements of Rev. Proc. 92-64, as it may be amended or supplemented in the future.

 

(b)           If made available by the Committee, a Participant may designate one or more Investment Funds to serve as indices for the investment performance of such Participant’s Account.  The Investment Funds designated by the Participant may, in the discretion of the Committee, be selected from a menu of insurance contracts, mutual funds and/or securities made available for such purpose by the Committee.  The Investment Funds designated as investment indices for purposes of this Section 5.2(b) shall serve only as indices for purposes of determining the amounts credited as “gains” or “losses” with respect to a Participant’s Account.  The Plan Sponsor may or may not invest a Participant’s Deferral amounts in the Investments Funds selected.  Each Participant’s Account shall be adjusted to reflect the gain or loss such Account would experience had the Account actually been invested in the specified Investment Funds at the relevant times.  A Participant may, at any time, designate other Investment Funds from the investment options made available by the Committee for new Deferrals and contributions or for amounts already credited to the Participant’s Account.  If the Plan Sponsor invests a Participant’s Deferral amounts in the Investment Funds specified by the Participant, the Participant shall have no beneficial ownership interest in and to such funds or any other specifically identifiable assets of the Plan Sponsor.

 

(c)           A Participant may direct that his or her Investment Account may be valued as if they were invested in one or more Investment Funds as selected by the Plan Sponsor in multiples of one percent (1%).  The Plan Sponsor may from time to time, at the discretion of the Administrator, change the Investment Funds for purposes of this Plan.

 

(f)            The Administrator shall adjust the amounts credited to each Participant’s Account to reflect Deferrals, investment experience, distributions and any other appropriate adjustments.  Such adjustments shall be made as frequently as is administratively feasible.

 

(g)           A Participant may change his or her selection of Investment Funds with respect to his or her Account at any time by filing a new election in accordance with procedures established by the Administrator.  An election shall be effective as soon as administratively feasible following the date the change is submitted on a form or other manner prescribed by the Administrator.

 

    	

    	 

    
 

 

(h)             Notwithstanding the Participant’s ability to designate the Investment Fund in which his or her deferred Compensation shall be deemed invested, the Plan Sponsor shall have no obligation to invest any funds in accordance with the Participant’s election.  Participants’ Accounts shall merely be bookkeeping entries on the Plan Sponsor’s books, and no Participant shall obtain any property right or interest in any Investment Fund.

 

Article 6 - Distributions

 

	
6.1

	
Distribution Election

 

Each Participant shall designate in his or her Deferral Election the form and timing of his or her distribution by indicating the type of sub-account as described under Section 5.1, and by designating the form in which payments shall be made from the choices available under Section 6.2 hereof.  Notwithstanding anything to the contrary contained herein provided, no acceleration of the time or schedule of payments under the Plan shall occur except as permitted under this Plan, Code Section 409A and the regulations thereunder.

  

	
6.2

	
Distributions Upon Retirement and In-Service Distributions

 

A Participant may elect to receive a distribution from the Plan either at Retirement or as an In-Service Distribution as follows:

 

(i)           If the Participant elects to receive a distribution from the Plan at Retirement, upon a Separation from Service, the Participant’s Retirement sub-account(s) shall be distributed as soon as administratively possible after the first day of the seventh month after the date of the Participant’s Retirement, provided that the Participant shall have no right to designate the taxable year of the payment.  Distribution shall be made either in a lump-sum payment or in substantially equal annual installments, as defined in Section 6.3 below, over a period of five (5), years as elected by the Participant.  If the Participant fails to properly designate the form of the distribution, the sub-account shall be paid in a single lump-sum payment as soon as administratively possible after the first day of the seventh month after the date of the Participant’s Retirement. 

 

(ii)          A Participant may elect on his or her annual Deferral Election form to have all of his or her sub-account(s) (for that Plan Year) paid to the Participant as of a specific date, as permitted on the Deferral Election form.  Such specific date election must be at least five (5) years from the year of the deferral (e.g., 2013 bonus is deferred in 2014, specific date distribution can be made in 2019). Such specific date distribution shall be made either in a lump-sum payment or in substantially equal annual installments, as defined in Section 6.3 below, over a period of five (5), years as elected by the Participant.  If the Participant fails to properly designate the form of the specific date distribution, the sub-account shall be paid in a single lump-sum payment as soon as administratively possible after the specific date.  If the Participant shall have a Separation from Service before the specified date, any vested portion of the sub-account(s) subject to an in-service distribution election will be paid in a single lump sum payment as soon as administratively possible after the first day of the seventh month after the date of the Separation from Service. In addition, if the Participant shall have a Separation from Service after the specified date and he or she has not received all the installment payments requested, all remaining installment payments will be paid in a single lump sum payment as soon as administratively possible after the first day of the seventh month after the date of the Separation from Service. 

 

    	

    	 

    
 

 

6.3          Substantially Equal Annual Installments

 

(a)    The amount of the substantially equal payments shall be determined by multiplying the Participant’s Account or sub-account by a fraction, the denominator of which in the first year of payment equals the number of years over which benefits are to be paid, and the numerator of which is one (1).  The amounts of the payments for each succeeding year shall be determined by multiplying the Participant’s Account or sub-account as of the applicable anniversary of the payout by a fraction, the denominator of which equals the number of remaining years over which benefits are to be paid, and the numerator of which is one (1). Installment payments made pursuant to this Section 6.3 shall be made as soon as administratively feasible but no later than first day of the seventh month ninety following the distribution event and each anniversary of the distribution event, provided that the Participant shall have no right to designate the taxable year of any payment.

 

(b)    For purposes of the Plan pursuant to Code Section 409A and regulations thereunder, a series of annual installments from a particular sub-account shall be considered a single payment.

 

	
6.4

	
Distributions upon Death

 

Upon the death of a Participant, all amounts credited to his or her Account shall be paid, as soon as administratively feasible but no later than ninety (90) days following Participant’s date of death, to his or her beneficiary or beneficiaries, as determined under Article 7 hereof, in a lump sum, provided that the beneficiary or beneficiaries shall have no right to designate the taxable year of the payment.

 

	
6.5

	
Changes to Distribution Elections

 

A Participant will be permitted to elect to change the form or timing of the distribution of the balance of his or her one or more sub-accounts within his or her Account to the extent permitted and in accordance with the requirements of Code Section 409A(a)(4)(C), including the requirement that (i) a re-deferral election may not take effect until at least twelve (12) months after such election is filed with the Plan Sponsor, (ii) an election to further defer a distribution (other than a distribution upon death or an unforeseeable emergency) must result in the first distribution subject to the election being made at least five (5) years after the previously elected date of distribution, and (iii) any re-deferral election affecting a distribution at a fixed date must be filed with the Plan Sponsor at least twelve (12) months before the first scheduled payment under the previous fixed date distribution election.  Once a sub-account begins distribution, no such changes to distributions shall be permitted.

 

    	

    	 

    
 

 

	
6.6

	
Acceleration or Delay in Payments

 

To the extent permitted by Code Section 409A, and notwithstanding any provision of the Plan to the contrary, the Administrator, in its sole discretion, may elect to (i) accelerate the time or form of payment of a benefit owed to a Participant hereunder in accordance with the terms and subject to the conditions of Treasury Regulations Section 1.409A-3(j)(4), or (ii) delay the time of payment of a benefit owed to a Participant hereunder in accordance with the terms and subject to the conditions of Treasury Regulations Section 1.409A-2(b)(7). Payments to a Specified Employee that would otherwise be paid during the first six months after Separation from Service shall be accumulated and paid as of the first day of the seventh month following Separation from Service or, if earlier, the date of death and thereafter, payments shall be paid as regularly scheduled. Payments for a permissible event shall commence on the date of the event.  Under no circumstances may a Participant select the taxable year in which payment is to be made.

 

	
6.7

	
Unforeseeable Emergency

 

The Administrator may permit an early distribution of part or all of any deferred amounts; provided, however, that such distribution shall be made only if the Administrator, in its sole discretion, determines that the Participant, or the Participant’s beneficiary, has experienced an Unforeseeable Emergency.  An Unforeseeable Emergency is defined as a severe financial hardship resulting from an illness or accident of the Participant, the Participant’s spouse, the Participant’s beneficiary, or a dependent (as defined in Code Section 152(a)) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.  If an Unforeseeable Emergency is determined to exist, a distribution may not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship).  Upon a distribution to a Participant under this Section 6.7, the Participant’s Deferrals shall cease and no further Deferrals shall be made for such Participant for the remainder of the Plan Year and for the immediately succeeding Plan Year.

 

    	

    	 

    
 

 

6.8          Domestic Relations Orders

 

The Administrator may permit the acceleration of the time or schedule of a payment under the Plan to an individual other than a Participant as may be necessary to fulfill a domestic relations order (as defined in Code Section 414(p)(1)(B)). 

 

	
6.9

	
Disability

 

	
A Participant may receive a distribution of his or her Account upon his or her becoming Disabled.

 

	
6.10

	
Minimum Distribution

 

Notwithstanding any provision to the contrary, if the balance of a Participant’s Account at the time of a distribution event or at the time of a scheduled installment payment does not exceed $15,000 (or, if less, the applicable dollar amount under Code Section 402(g)), then the Participant shall be paid his or her Account as a single lump sum, provided that the distribution results in the termination and liquidation of the Participant’s entire interest in the Plan, including all agreements, methods, programs or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single plan under the plan aggregation rules of Code Section 409A and regulations thereunder.

 

	
6.11

	
Form of Payment

 

All distributions shall be made in the form of cash.

 

Article 7 - Beneficiaries

 

	
7.1

	
Beneficiaries

 

Each Participant may from time to time designate one or more persons (including  one or more members or other persons, administrators, trusts, foundations or other entities) as his or her beneficiary under the Plan.  Such designation shall be made in a form prescribed by the Administrator.  Each Participant may at any time change any previous beneficiary designation, without notice to or consent of any previously designated beneficiary, by amending his or her previous designation in a form prescribed by the Administrator.  If the beneficiary does not survive the Participant (or is otherwise unavailable to receive payment), or if no beneficiary is validly designated then the amounts payable under this Plan shall be paid to the Participant’s estate.  If more than one person is the beneficiary of a deceased Participant, each such person shall receive a pro rata share of any death benefit payable unless otherwise designated in the applicable form.  If a beneficiary who is receiving benefits dies, all benefits that were payable to such beneficiary shall then be payable to the estate of that beneficiary.

 

    	

    	 

    
 

 

	
7.2

	
Lost Beneficiary

 

All Participants and beneficiaries shall be obligated to keep the Administrator informed of their current address until such time as all benefits due have been paid.  If a Participant or beneficiary cannot be located by the Administrator exercising due diligence, then, in its sole discretion, the Administrator may presume that the Participant or beneficiary is deceased for purposes of the Plan and all unpaid amounts (net of due diligence expenses) owed to the Participant or beneficiary shall be paid accordingly or, if a beneficiary cannot be so located, then such amounts may be forfeited.  Any such presumption of death shall be final, conclusive and binding on all parties.

 

Article 8 - Funding

 

	
8.1

	
Prohibition Against Funding

 

Should any investment be acquired in connection with the liabilities assumed under this Plan, it is expressly understood and agreed that the Participants and beneficiaries shall not have any right with respect to, or claim against, such assets nor shall any such purchase be construed to create a trust of any kind or a fiduciary relationship between the Plan Sponsor and the Participants, their beneficiaries or any other person.  Any such assets shall be and remain a part of the general, unpledged, unrestricted assets of the Plan Sponsor, subject to the claims of its general creditors.  It is the express intention of the parties hereto that this arrangement shall be unfunded for tax purposes.  Each Participant and beneficiary shall be required to look to the provisions of this Plan and to the Plan Sponsor itself for enforcement of any and all benefits due under this Plan, and to the extent any such person acquires a right to receive payment under this Plan, such right shall be no greater than the right of any unsecured general creditor of the Plan Sponsor.  The Plan Sponsor or the Trust shall be designated the owner and beneficiary of any investment acquired in connection with its obligation under this Plan.

 

	
8.2

	
Deposits in Trust

 

Notwithstanding Section 8.1, or any other provision of this Plan to the contrary, the Plan Sponsor may deposit into the Trust any amounts it deems appropriate to pay the benefits under this Plan.  The amounts so deposited may include all contributions made pursuant to a Deferral Election by a Participant.

 

	
8.3

	
Withholding of Participant Contributions

 

The Administrator is authorized to make any and all necessary arrangements to withhold a Participant’s Deferrals under Section 3.1 from his or her Compensation.  The Administrator shall determine the amount and timing of such withholding.

 

    	

    	 

    
 

 

Article 9 - General Provisions

 

	
9.1

	
Administrator

 

(a)   The Administrator is expressly empowered to limit the amount of Compensation that may be deferred; to deposit amounts into the Trust in accordance with Section 8.2 hereof; to interpret the Plan, and to determine all questions arising in the administration, interpretation and application of the Plan; to employ actuaries, accountants, counsel, and other persons it deems necessary in connection with the administration of the Plan; to request any information from the Plan Sponsor it deems necessary to determine whether the Plan Sponsor would be considered insolvent or subject to a proceeding in bankruptcy; and to take all other necessary and proper actions to fulfill its duties as Administrator.

 

(b)   The Administrator shall not be liable for any actions by it hereunder, unless due to its own negligence, willful misconduct or lack of good faith.

 

(c)   The Administrator shall be indemnified and held harmless by the Plan Sponsor from and against all liability to which it may be subject by reason of any act or omitted done in its capacity as Administrator in good faith in the administration of the Plan and Trust, including all expenses reasonably incurred in its defense in the event the Plan Sponsor fails to provide such defense upon the request of the Administrator.  The Administrator is relieved of all responsibility in connection with its duties hereunder to the fullest extent permitted by law, short of breach of duty to the beneficiaries.

 

	
9.2

	
No Assignment of Benefits or Payments

 

Benefits or payments under this Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant or the Participant’s beneficiary, whether voluntary or involuntary, and any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish the same shall not be valid, nor shall any such benefit or payment be in any way liable for or subject to the debts, contracts, liabilities, engagement or torts of any Participant or beneficiary, or any other person entitled to such benefit or payment pursuant to the terms of this Plan, except to such extent as may be required by law.  If any Participant or beneficiary or any other person entitled to a benefit or payment pursuant to the terms of this Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish any benefit or payment under this Plan, in whole or in part, or if any attempt is made to subject any such benefit or payment, in whole or in part, to the debts, contracts, liabilities, engagements or torts of the Participant or beneficiary or any other person entitled to any such benefit or payment pursuant to the terms of this Plan, then such benefit or payment, in the discretion of the Administrator, shall cease and terminate with respect to such Participant or beneficiary, or any other such person.

 

    	

    	 

    
 

 

	
9.3

	
Incompetence

 

If the Administrator determines that any person to whom a benefit is payable under this Plan is incompetent by reason of physical or mental disability, the Administrator shall have the power to cause the payments becoming due to such person to be made to another for his or her benefit without responsibility of the Administrator or the Plan Sponsor to see to the application of such payments.  Any payment made pursuant to such power shall, as to such payment, operate as a complete discharge of the Plan Sponsor, the Administrator and the Trustee.

 

	
9.4

	
Identity

 

If, at any time, any doubt exists as to the identity of any person entitled to any payment hereunder or the amount or time of such payment, the Administrator shall be entitled to hold such sum until such identity or amount or time is determined or until an order of a court of competent jurisdiction is obtained.  The Administrator shall also be entitled to pay such sum into court in accordance with the appropriate rules of law.  Any expenses incurred by the Plan Sponsor, Administrator, and Trust incident to such proceeding or litigation shall be charged against the Account of the affected Participant.

 

9.5          Expenses

 

All expenses incurred in the administration of the Plan whether incurred by the Plan Sponsor or the Plan shall be paid by the Plan Sponsor.

 

	
9.6

	
Insolvency

 

Should the Plan Sponsor be considered insolvent (as defined by the Trust), the Plan Sponsor, through its Board and chief executive officer, shall give immediate written notice of such to the Administrator of the Plan and the Trustee.  Upon receipt of such notice, the Administrator or Trustee shall cease to make any payments to Participants or their beneficiaries and shall hold any and all assets attributable to the Plan Sponsor for the benefit of the general creditors of the Plan Sponsor.

 

	
9.7

	
Amendment or Modification

 

The Plan Sponsor may, at any time, in its sole discretion, amend or modify the Plan in whole or in part, except that no such amendment or modification shall have any retroactive effect to reduce any amounts allocated to a Participant’s Accounts, and provided that such amendment or modification complies with Code Section 409A and related regulations thereunder.

 

	
9.8

	
Plan Suspension

 

The Plan Sponsor further reserves the right to suspend the Plan in whole or in part, except that no such suspension shall have any retroactive effect to reduce any amounts allocated to a Participant’s Accounts, and provided that the distribution of the vested Participant Accounts shall not be accelerated but shall be paid at such time and in such manner as determined under the terms of the Plan immediately prior to suspension as if the Plan had not been suspended.

 

    	

    	 

    
 

 

	
9.9

	
Plan Termination

 

The Plan Sponsor further reserves the right to terminate the Plan in whole or in part, in the following manner, except that no such termination shall have any retroactive effect to reduce any amounts allocated to a Participant’s Accounts, and provided that any distribution in connection with such termination complies with Code Section 409A and related regulations thereunder:

 

(a)   The Plan Sponsor, in its sole discretion, may terminate the Plan and distribute all vested Participants’ Accounts no earlier than twelve (12) calendar months from the date of the Plan termination and no later than twenty-four (24) calendar months from the date of the Plan termination, provided however that all other similar arrangements are also terminated by the Plan Sponsor for any affected Participant and no other similar arrangements are adopted by the Plan Sponsor for any affected Participant within a three (3) year period from the date of termination; or

 

(b)   The Plan Sponsor may decide, in its sole discretion, to terminate the Plan in the event of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court, provided that the Participants vested Account balances are distributed to Participants and are included in the Participants’ gross income in the latest of:  (i) the calendar year in which the termination occurs; (ii) the calendar year in which the amounts deferred are no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which payment is administratively practicable.

 

	
9.10

	
Plan Termination due to a Change-in-Control

 

The Plan Sponsor may decide, in its discretion, to terminate the Plan in the event of a Change-in-Control and distribute all vested Participants’ Account balances no earlier than thirty (30) days prior to the Change-in-Control and no later than twelve (12) months after the effective date of the Change-in-Control, provided however that the Plan Sponsor terminates all other similar arrangements for any affected Participant.

 

	
9.11

	
Construction

 

All questions of interpretation, construction or application arising under or concerning the terms of this Plan shall be decided by the Administrator, in its sole and final discretion, whose decision shall be final, binding and conclusive upon all persons. 

 

    	

    	 

    
 

 

9.12        Governing Law

 

This Plan shall be governed by, construed and administered in accordance with the applicable provisions of Code Section 409A, and any other applicable federal law, provided, however, that to the extent not preempted by federal law this Plan shall be governed by, construed and administered under the laws of the State of New York.

 

	
9.13

	
Severability

 

If any provision of this Plan is held invalid or unenforceable, its invalidity or unenforceability shall not affect any other provision of this Plan and this Plan shall be construed and enforced as if such provision had not been included therein.

 

9.14        Headings

 

Article headings contained herein are inserted only as a matter of convenience and for reference and in no way define, limit, enlarge or describe the intent of the Plan nor in any way shall they affect the Plan or the construction of any provision thereof.

 

	
9.15

	
Terms

 

Capitalized terms shall have meanings as defined herein.  Singular nouns shall be read as plural, masculine pronouns shall be read as feminine, and vice versa, as  appropriate.

 

9.16        Effect of Plan on Plan Sponsor and Participants

 

The Plan shall be binding upon the Plan Sponsor, its assigns, and any successor company which shall succeed to substantially all of its assets and business through merger, acquisition or consolidation, and upon a Participant, his Beneficiary, assigns, heirs, executors and administrators.

 

9.17        Plan Creates No Guaranty of Continued Employment

 

The terms and conditions of the Plan shall not be deemed to constitute a contract of employment between the Plan Sponsor and any Eligible Employee.  Nothing in this Plan shall of itself be deemed to give an Eligible Employee the right to be retained in the service of the Plan Sponsor or to interfere with any right of the Plan Sponsor to discipline or discharge the Eligible Employee at any time.

 

9.18        Illegality or Invalidity of Any Plan Provision 

 

In case any provisions of this Plan shall be found illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but the Plan shall be construed and enforced as if such illegal and invalid provision had never been included herein.

 

    	

    	 

    
 

 

9.19        Effect of Payment of Plan Benefits

 

The payment of benefits under the Plan to a Participant or Beneficiary shall fully and completely discharge the Plan Sponsor, the Board, and the Committee from all further obligations under this Plan with respect to a Participant, and that Participant’s Deferral Elections, and any outstanding Deferral Elections shall terminate upon such full payment of benefits.

 

9.20        Effect of Plan Titles and Headings

 

Titles and headings of the Articles and Sections of the Plan are included for ease of reference only and are not to be used for the purpose of construing any portion or provision of the Plan document.

 

9.21        Execution of Plan Documents

 

This Plan document and any Deferral Election may be executed in one or more counterparts, each of which is legally binding and enforceable.

 

9.22        Tax Effect and No Guarantee of Investment Returns

 

The Plan Sponsor does not represent or guarantee that any particular federal, state or local income, payroll, personal property or other tax consequence will result from participation in this Plan.  A Participant should consult with professional tax advisors to determine the tax consequences of his or her participation.  The Plan Sponsor also does not represent or guarantee investment returns with respect to any predetermined investment options and shall not be required to restore any loss which may result from such investment or lack of investment.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly authorized officer, effective as of this ____ of June, 2013.

 

	  	
ACETO CORPORATION

	  	  	  
	  	

By:

	
 

	  	  	  
	  	
Title:EX-4.2

 Exhibit 4.2 

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

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO
BARCLAYS BANK PLC, OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 BY PURCHASING THIS SECURITY, THE HOLDER AGREES TO CHARACTERIZE THIS SECURITY FOR ALL U.S.
FEDERAL INCOME TAX PURPOSES AS PROVIDED IN SECTION 12 ON THE FACE OF THIS SECURITY. 

			
	CUSIP No. 06742E711	  	ISIN: US06742E7114

 BARCLAYS BANK PLC 

GLOBAL MEDIUM-TERM NOTES, SERIES A 
  

 
 iPath® S&P 500 VIX Short-Term FuturesTM ETN 
 due January 30, 2019

 The following terms apply to this Security. Capitalized terms that are not defined the first time they are used in this Security
shall have the meanings indicated elsewhere in this Security. 

 

 Face Amount: On a reverse-split adjusted basis,
$[            ], equal to [            ] Securities at $6,400 per Security (1 for 4 Reverse Split of the iPath® S&P 500 VIX Short-Term FuturesTM ETN due January 30, 2019 (CUSIP: 06742E711) which were first issued on February 3, 2009 (the
“Original Issue Date”) so that the aggregate principal amount outstanding after the Effective Date will remain $[            ]). 

Index: The S&P 500 VIX Short-Term FuturesTM Index TR. 

Inception Date: January 29, 2009. 
 Effective
Date: November 8, 2013. 
 Interest Rate: The principal of this Security shall not bear interest. 

Denomination: $6,400 
 Payment at Maturity: On the
Maturity Date, unless such Securities were previously redeemed on a Redemption Date as provided under “Early Redemption”, the Company shall redeem this Security by paying to the Holder a

 
cash payment per Security equal to the Closing Indicative Value on the Final Valuation Date. 

Early Redemption: The Holder may, subject to the notification requirements provided under Section 5 hereof, require the Company to redeem the
Holder’s Securities in whole or in part on any Redemption Date during the term of the Securities. If the Holder requires the Company to redeem the Holder’s Securities on any Redemption Date, the Holder will receive a cash payment per
Security equal to the Closing Indicative Value on the applicable Valuation Date minus a redemption charge equal to 0.05% times the Closing Indicative Value on the Valuation Date. The Company shall not be required to redeem fewer than
25,000 Securities at one time. 
 Calculation Agent: Barclays Bank PLC. 

Defeasance: Neither full defeasance nor covenant defeasance applies to this Security. 

Listing: NYSE Arca Stock Exchange and the Toronto Stock Exchange.

 

  
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 OTHER TERMS: 

All terms used in this Security that are not defined in this Security but are defined in the Indenture referred to on the reverse of this
Security shall have the meanings assigned to them in the Indenture. Section headings on the face of this Security are for convenience only and shall not affect the construction of this Security. 

“Business Day” means any day that is a Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on which banking
institutions in New York City or London, as applicable, generally are authorized or obligated by law, regulation or executive order to close. 

“Closing Indicative Value” shall be calculated in the following manner: (i) the Closing Indicative Value on the
Inception Date shall equal $100; and (ii) on each subsequent calendar day, until and including the Final Valuation Date or, in the case of Securities with respect to which the Holder has exercised its right of Early Redemption, the applicable
Valuation Date, the Closing Indicative Value shall equal the Closing Indicative Value on the immediately preceding calendar day times the Daily Index Factor on such calendar day (or, if such day is not an Index Business Day, one) minus
the Investor Fee on such calendar day. The Closing Indicative Value is subject to adjustment as described in Section 6 on the face of this Security. 

“Daily Index Factor” means, on any given Index Business Day, the amount equal to the closing level of the Index on such Index
Business Day divided by the closing level of the Index on the immediately preceding Index Business Day. 
 “Default
Amount” means, on any day, an amount in U.S. dollars, as determined by the Calculation Agent in its sole discretion, equal to the cost of having a Qualified Financial Institution (selected as provided below) expressly assume the due and
punctual payment of the principal of this Security, and the performance or observance of every covenant hereof and of the Indenture on the part of the Company to be performed or observed with respect to this Security (or to undertake other
obligations providing substantially equivalent economic value to the Holder of this Security as the Company’s obligations hereunder). Such cost will equal (i) the lowest amount that a Qualified Financial Institution would charge to effect
such assumption (or undertaking) plus (ii) the reasonable expenses (including reasonable attorneys’ fees) incurred by the Holder of this Security in preparing any documentation necessary for such assumption (or undertaking). During the
Default Quotation Period, each Holder of this Security and the Company may request a Qualified Financial Institution to provide a quotation of the amount it would charge to effect such assumption (or undertaking). If either party obtains a
quotation, it must notify the other party in writing of the quotation. The amount referred to in clause (i) of this paragraph will equal the lowest (or, if there is only one, the only) quotation so obtained, and as to which notice is so given,
during the Default Quotation Period; provided that, with respect to any quotation, the party not obtaining the quotation may object, on reasonable and significant grounds, to the effectuation of such assumption (or undertaking) by the
Qualified Financial Institution providing such quotation and notify the other party in writing of such grounds within two Business Days after the last day of the Default Quotation Period, in which case that quotation will be disregarded in
determining the Default Amount. The “Default Quotation Period” shall be the period beginning on the day the Default Amount first becomes due and ending on the third Business Day after such due date, unless no such quotation is
obtained, or unless every such quotation so obtained is objected to within five Business Days 

  
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after such due date as provided above, in which case the Default Quotation Period will continue until the third Business Day after the first Business Day on which prompt notice of a quotation is
given as provided above, unless such quotation is objected to as provided above within five Business Days after such first Business Day, in which case, the Default Quotation Period will continue as provided in this sentence. Notwithstanding the
foregoing, if the Default Quotation Period (and the subsequent two Business Day objection period) has not ended prior to the Final Valuation Date, then the Default Amount will equal the Face Amount. 

“Final Valuation Date” means January 29, 2019, or if such date is not a Trading Day, the next succeeding Trading Day;
provided, however, that if the Calculation Agent determines that a Market Disruption Event occurs or is continuing on such date, the Final Valuation Date will be the first following Trading Day on which the Calculation Agent determines
that a Market Disruption Event does not occur and is not continuing, provided that in no event will the Final Valuation Date be postponed by more than five Trading Days. 

“Index Business Day” means any day on which (1) it is a Business Day in New York and (2) the Chicago Board Options
Exchange, Incorporated (the “CBOE”) is open. 
 “Investor Fee” means the amount calculated on a daily
basis in the following manner: (i) the Investor Fee on the Inception Date shall equal zero; and (ii) on each subsequent calendar day until and including the Final Valuation Date or, in the case of Securities with respect to which the
Holder has exercised its right of Early Redemption, the applicable Valuation Date, the Investor Fee will be equal to 0.89% times the Closing Indicative Value on the immediately preceding calendar day times the Daily Index Factor on
that day (or, if such day is not an Index Business Day, one) divided by 365. 
 “Market Disruption Event” means,
with respect to the Securities, in the opinion of the Calculation Agent and determined in its sole discretion: (i) Standard & Poor’s Financial Services LLC (“S&P”) does not publish the level of the Index on any Index
Business Day; (ii) a suspension, absence or material limitation of trading of equity securities then constituting 20% or more of the level of the S&P 500® on the Relevant Exchanges
(as defined below) for such securities occurs for more than two hours of trading (one hour on any day that is an “index roll date” for purposes of calculation the VIX Index or any relevant successor index) during, or during the one hour
period preceding the close of, the principal trading session on such Relevant Exchange; (iii) a breakdown or failure in the price and trade reporting systems of any Relevant Exchange for the S&P 500® occurs as a result of which the reported trading prices for equity securities then constituting 20% or more of the level of the S&P
500® are materially inaccurate (a) during the one hour preceding the close of the principal trading session on such Relevant Exchange or (b) during any one hour period of trading on
such Relevant Exchange or on any day that is an “index roll date” for purposes of calculating the VIX Index or any relevant successor index; (iv) a suspension, absence or material limitation of trading on any Relevant Exchange for the
VIX Index (or any relevant successor index) occurs for more than two hours of trading (one hour on any day that is an “index roll date” for purposes of calculation the VIX Index or any relevant successor index) during, or during the one
hour period preceding the close of, the principal trading session on such Relevant Exchange; (v) a breakdown or failure in the price and trade reporting systems of the Relevant Exchange for the VIX Index (or any relevant successor index) occurs
as a result of which the reported trading prices for SPX Options or futures on the VIX Index (or futures on any relevant successor index) during the one hour period preceding, and including, 

  
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the scheduled time at which the value of SPX Options is calculated for purposes of the VIX Index (or any relevant successor index) are materially inaccurate; (vi) a decision to permanently
discontinue trading in SPX Options or futures on the VIX Index (or futures on any relevant successor index) occurs; (vii) on any Index Business Day, the occurrence or existence of a lack of, or a material decline in, the liquidity in the market
for trading in any futures contract underlying the Index occurs; (viii) any event or any condition (including without limitation any event or condition that occurs as a result of the enactment, promulgation, execution, ratification,
interpretation or application of, or any change in or amendment to, any law, rule or regulation by an applicable governmental authority) that results in an illiquid market for trading in any futures contract underlying the Index occurs; or
(ix) the declaration or continuance of a general moratorium in respect of banking activities occurs in any relevant city. For purposes of determining whether a Market Disruption Event has occurred, (A) a limitation on the hours or number
of days of trading will not constitute a Market Disruption Event if it results from an announced change in the regular business hours of the Relevant Exchange for the S&P 500® or the VIX
Index (or any relevant successor index); (B) limitations pursuant to the rules of any Relevant Exchange similar to NYSE Rule 80B (or any applicable rule or regulation enacted or promulgated by any other self-regulatory organization or any
government agency of scope similar to NYSE Rule 80B as determined by S&P) on trading during significant market fluctuations will constitute a suspension, absence or material limitation of trading; (C) a suspension of trading in an SPX
Option or a futures contract on the VIX Index (or futures contract on any relevant successor index) by the Relevant Exchange for the VIX Index (or any relevant successor index) by reason of a price change exceeding limits set by such relevant
exchange, an imbalance of orders relating to such options, or a disparity in bid and ask quotes relating to such options will, in each such case, constitute a suspension, absence or material limitation of trading on such Relevant Exchange; and
(D) a “suspension, absence or material limitation of trading” on any Relevant Exchange will not include any time when such Relevant Exchange is itself closed for trading under ordinary circumstances. “Relevant
exchange” means, with respect to the S&P 500®, the primary exchange or market of trading for any equity security (or any combination thereof) then included in the S&P 500® or, with respect to the VIX Index or any relevant successor index, the primary exchange or market for SPX Options or futures on the VIX Index (or futures on any relevant successor index). 

“Maturity Date” means January 30, 2019, provided that if such date is not a Business Day, the Maturity Date will
be the next succeeding Business Day; provided, however, that if the fifth Business Day preceding January 30, 2019 does not qualify as the Final Valuation Date referred to above, then the Maturity Date will be the fifth Business
Day following the Final Valuation Date. 
 “Qualified Financial Institution” means, at any time, a financial institution
organized under the laws of any jurisdiction in the United States of America or Europe that at such time has outstanding debt obligations with a stated maturity of one year or less from the date of issue and rated
A-1 or higher by Standard & Poor’s Ratings Services (or any successor) or P-1 or higher by Moody’s Investors Service, Inc. (or any successor) or, in
either case, such other comparable rating, if any, then used by such rating agency. 
 “Redemption Date” means the third
Business Day following each Valuation Date (other than the Final Valuation Date). The final Redemption Date will be the third Business Day following the Valuation Date that is immediately prior to the Final Valuation Date. 

  
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 “SPX Options” means the put and call options on the level of the S&P 500® used in the calculation of the VIX Index. 
 “Successor Index” means
any substitute index approved by the Calculation Agent as a Successor Index pursuant to Section 3 hereof. 
 “Trading
Day” means any day on which (1) it is a Business Day in New York City, (2) trading is generally conducted on NYSE Arca, and (3) trading is generally conducted on the CBOE, in each case as determined by the Calculation Agent
in its sole discretion. 
 “Valuation Date” means each Index Business Day from January 29, 2009 to
January 29, 2019, inclusive, or if such date is not a Trading Day, the next succeeding Trading Day; provided, however, that if the Calculation Agent determines that a Market Disruption Event occurs or is continuing on such date, the
Valuation Date will be the first following Trading Day on which the Calculation Agent determines that a Market Disruption Event does not occur and is not continuing, provided that in no event will any Valuation Date be postponed by more than
five Trading Days. 
 “VIX Index” means the CBOE Volatility
Index®. 
  

1. Promise to Pay at Maturity or Upon Early Redemption 

Barclays Bank PLC, a public limited company duly organized and existing under the laws of England and Wales (herein called the
“Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay (or cause to be paid) to Cede & Co., as nominee for The Depository Trust Company,
or registered assigns, the amount as calculated and provided under (i) “Early Redemption” and elsewhere on the face this Security on the applicable Redemption Date, in the case of any Securities in respect of the which the Holder
exercises such Holder’s right to require the Company to redeem such Holder’s Securities prior to the Maturity Date, or (ii) “Payment at Maturity” and elsewhere on the face of this Security on the Maturity Date, in the case
of all other Securities. 
 2. Payment of Interest 

The principal of this Security shall not bear interest. Any return on this Security that may be deemed to be interest will in no event be
higher than the maximum rate permitted by New York law, as it may be modified by U.S. law of general application. 
 3. Discontinuance or
Modification of the Index; Market Disruption Event 
 If S&P discontinues publication of the Index and Barclays Capital or any other
Person or entity publishes an index that the Calculation Agent determines is comparable to the Index and approves as a Successor Index, then the Calculation Agent will determine the value of the Index on the applicable Valuation Date and the amount
payable on the Maturity Date or any Redemption Date by reference to such Successor Index. 

  
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 If the Calculation Agent determines that the publication of the Index is discontinued and that
there is no Successor Index, or that the closing value of the Index is not available because of a Market Disruption Event or for any other reason on any Valuation Date or other date on which the value of the Index is required to be determined, or if
for any other reason the Index is not available to the Company or the Calculation Agent on any Valuation Date, the Calculation Agent will determine the amount payable by a computation methodology that the Calculation Agent determines will as closely
as reasonably possible replicate the Index. 
 If the Calculation Agent determines that the Index or the method of calculating the Index has
been changed at any time in any respect, including, without limitation, whether the change is made by S&P under its existing policies or following a modification of those policies, is due to the publication of a Successor Index, or is due to any
other reason, then the Calculation Agent will be permitted (but shall not be required) to make such adjustments to the Index or method of calculating the Index as it believes are appropriate to ensure that the value of the Index used to determine
the amount payable on the Maturity Date or upon Early Redemption is equitable. 
 The Calculation Agent shall have the right to postpone a
Valuation Date, and thus the determination of the value of the Index, if the Calculation Agent determines that, on such Valuation Date, a Market Disruption Event occurs or is continuing. If such a postponement occurs, the Calculation Agent shall
determine the value of the Index by using the closing value of the Index on the first Trading Day after that day on which no Market Disruption Event occurs or is continuing with respect to the Index. In no event, however, may the Calculation Agent
postpone a Valuation Date by more than five Trading Days. 
 In the event that a Valuation Date is postponed until the fifth Trading Day
following the scheduled Valuation Date, but a Market Disruption Event occurs and is continuing on such day, that day shall nevertheless be a Valuation Date, and the Calculation Agent shall determine the value of the Index on such day by a good faith
estimate of the value of the Index that would have prevailed in the absence of a Market Disruption Event. 
 The Calculation Agent shall
have the right to make all determinations and adjustments with respect to the Index in its sole discretion. 
 4. Payment at Maturity or
Upon Early Redemption 
 The payment of this Security that becomes due and payable on the Maturity Date or on a Redemption Date, as the
case may be, shall be the cash amount that must be paid to redeem this Security as provided above under “Payment at Maturity” and “Early Redemption”, respectively. The payment of this Security that becomes due and payable upon
acceleration of the Maturity Date hereof after an Event of Default has occurred pursuant to the Indenture shall be the Default Amount. When the payment referred to in either of the two preceding sentences has been paid as provided herein (or such
payment has been made available), the principal of this Security shall be deemed to have been paid in full, whether or not this Security shall have been surrendered for payment or cancellation. References to the payment at maturity or upon early
redemption of this Security on any day shall be deemed to mean the payment of cash that is payable on such day as provided in this Security. 

  
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Notwithstanding the foregoing, solely for the purpose of determining whether any consent, waiver, notice or other action to be given or taken by Holders of Securities pursuant to the Indenture
has been given or taken by Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of this Security will be deemed to equal the Face Amount. This Security shall cease to be Outstanding as provided in the
definition of such term in the Indenture when the principal of this Security shall be deemed to have been paid in full as provided above. 

5. Redemption Mechanics 

Subject to the minimum redemption amount provided under “Early Redemption”, the Holder may require the Company to redeem the
Holder’s Securities on any Redemption Date during the term of the Securities provided that such Holder (i) delivers a notice of redemption to the Company via electronic mail by no later than 4:00 p.m. New York time on the Business
Day prior to the applicable Valuation Date; (ii) delivers a signed confirmation of redemption to the Company via facsimile by no later than 5:00 p.m. New York time on the same day; (iii) instructs the Holder’s DTC custodian to book a
delivery versus payment trade with respect to the Holder’s Securities on the applicable Valuation Date at a price per Security equal to the Closing Indicative Value on the applicable Valuation Date minus a redemption charge equal to
0.05% times the Closing Indicative Value on the Valuation Date, facing Barclays Capital DTC 5101; and (iv) causes the Holder’s DTC custodian to deliver the trade as booked for settlement via DTC prior to 10:00 a.m. New York time on
the applicable Redemption Date, which shall be the third Business Day following the applicable Valuation Date (other than the Final Valuation Date). The final Redemption Date shall be the third Business Day following such Valuation Date that is
immediately prior to the Final Valuation Date. 
 6. Split or Reverse Split of the Securities 

If the Closing Indicative Value on any Business Day is above $400.00, the Company may, but shall not be required to, initiate a 4 for 1 split
of the Securities. 
 If the Closing Indicative Value on any Business Day is below $25.00, the Company may, but shall not be required to,
initiate 1 for 4 reverse split of the Securities. On November 9, 2010, the Company implemented a reverse split of the Securities. 
 If
the Closing Indicative Value of the Securities is greater than $400.00 or below $25.00 on any Business Day, and the Company decides to initiate a split or reverse split, as applicable, such date shall be deemed to be the “Announcement
Date”, and the Company shall issue a notice to Holders of the Securities and a press release announcing such split or reverse split, and specifying the effective date of such split or reverse split. 

If the Securities are split, the terms of the Securities (including without limitation the Closing Indicative Value) will be adjusted
accordingly as described below. If the Securities undergo a 4 for 1 split, each Holder of a Security on the relevant record date will, after the split, hold four Securities. The record date for any split will be the 9th Business Day after the Announcement Date for such split. The Closing Indicative Value on such ex-date would be divided by four to reflect the 4 for 1 split of the Securities. Any adjustment of the
Closing Indicative Value will be rounded to eight decimal places. The split will become effective at the opening of trading of the Securities on the Business Day immediately following the record date for such split. 

  
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 In the case of a reverse split, the Company may address odd numbers of Securities in a manner
determined by it in its sole discretion. If the Securities undergo a 1 for 4 reverse split, each Holder who holds four Securities on the relevant record date will, after the reverse split, hold only one Security and adjustments will be made as
described below. The record date for any reverse split will be the 9th Business Day after the Announcement Date for such reverse split. The Closing Indicative Value on such ex-date would be
multiplied by four to reflect the 1 for 4 reverse split of the Securities. Any adjustment of the Closing Indicative Value will be rounded to eight decimal places. The reverse split will become effective at the opening of trading of the Securities on
the Business Day immediately following the record date for such reverse split. 
 In the case of a reverse split, Holders who own a number
of Securities on the record date which is not evenly divisible by 4 will receive the same treatment as all other Holders for the maximum number of Securities they hold which is evenly divisible by 4, and the Company will have the right to compensate
Holders for their remaining or “partial” Securities in a manner determined by it in its sole discretion. 
 7. Role of
Calculation Agent 
 The Calculation Agent will be solely responsible for all determinations and calculations regarding the value of the
Securities, including at maturity or upon early redemption; Market Disruption Events; Business Days; Trading Days; the Closing Indicative Value; the Daily Index Factor; the Default Amount; the level of any Index on the Inception Date; the Investor
Fee; the Maturity Date; Redemption Dates; Valuation Dates; the amount payable in respect of the Securities at maturity or upon early redemption and all such other matters, calculations or determinations as may be specified elsewhere herein as
matters to be determined by the Calculation Agent. The Calculation Agent shall make all such determinations and calculations in its sole discretion, and absent manifest error, all determinations of the Calculation Agent shall be final and binding on
the Company, the Holder and all other Persons having an interest in this Security, without liability on the part of the Calculation Agent. 

The Company shall take such action as shall be necessary to ensure that there is, at all relevant times, a financial institution serving as
the Calculation Agent hereunder. The Company may, in its sole discretion at any time and from time to time, upon written notice to the Trustee, but without notice to the Holder of this Security, terminate the appointment of any Person serving as the
Calculation Agent and appoint another Person (including any Affiliate of the Company) to serve as the Calculation Agent. Insofar as this Security provides for the Calculation Agent to determine the value of the Index on any date or other information
from any institution or other source, the Calculation Agent may do so from any source or sources of the kind contemplated or otherwise permitted hereby notwithstanding that any one or more of such sources are the Calculation Agent, Affiliates of the
Calculation Agent or Affiliates of the Company. 

  
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 8. Default Amount 

If any Event of Default occurs and the maturity of this Security is accelerated, the Default Amount will be payable in respect of this
Security at maturity. 
 9. Payment 

Payment of any amount payable on this Security will be made in such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts. Payment will be made to an account designated by the Holder (in writing to the Company and the Trustee on or before the applicable Valuation Date) and acceptable to the Company or, if no such
account is designated and acceptable as aforesaid, at the office or agency of the Company maintained for that purpose in The City of New York, provided, however, that payment on the Maturity Date or any Redemption Date shall be
made only upon surrender of this Security at such office or agency (unless the Company waives surrender). Notwithstanding the foregoing, if this Security is a Global Security, any payment may be made pursuant to the Applicable Procedures of the
Depositary as permitted in said Indenture. 
 10. Reverse of this Security 

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

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

Reference is made to the (i) the Prospectus related to the Securities, dated July 19, 2013, (ii) the Prospectus Supplement,
dated July 19, 2013 (iii) and the Pricing Supplement, dated [                    ], as each may be amended from time to time (together, the
“Prospectus”). The terms and conditions of this Security as fully set forth in the Prospectus are hereby incorporated by reference in their entirety into this Security and binding upon the parties hereto. In the event of a conflict
between the terms of the Prospectus and the terms of this Security, the Prospectus will control and if the Prospectus provides for a specific United States tax characterization, by purchasing a Security, you agree (in the absence of a change in law,
an administrative determination or a judicial ruling to the contrary) to be bound for United States federal income tax purposes to such tax characterization. Copies of the Prospectus are available from the Company or any underwriter or any dealer
participating in the offering by calling toll free, 1-888-227-2275 (extension 1101). 

  
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continued on next page) 
 –10– 

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

 

			
	BARCLAYS BANK PLC
		
	By:	 	
		 	Name:
		 	Title:
		
	By:	 	
		 	Name:
		 	Title:

 This is one of the Securities of the series designated herein and referred to in the Indenture. 

Dated: 
  

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

  
 -11- 

 (Reverse of Security) 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”) issued and to be issued in one
or more series under an Indenture, dated as of September 16, 2004 (herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New York, as Trustee
(herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee, the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. Insofar as the provisions of the Indenture may conflict with the provisions set forth
on the face of this Security, the latter shall control for purposes of this Security. 
 This Security is one of the series designated on the face hereof.
References herein to “this series” mean the series designated on the face hereof. 
 Payments under the Securities will be made without
deduction or withholding for, or on account of, any and all present or future income, stamp and other taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Taxes”) now or hereafter imposed, levied, collected,
withheld or assessed by or on behalf of the United Kingdom or any political subdivision or authority thereof or therein having the power to tax (each a “Taxing Jurisdiction”), unless such deduction or withholding is required by law.
If any such Taxes are at any time required by a Taxing Jurisdiction to be deducted or withheld, the Company will, subject to the exceptions and limitations set forth in Section 10.04 of the Indenture, pay such additional amounts of the
principal of such Security and any other amounts payable on such Security (“Additional Amounts”) as may be necessary in order that the net amounts paid to the Holder of any Security, after such deduction or withholding, shall equal
the amounts of the principal of such Security and any other amounts payable on such Security which would have been payable in respect of such Security had no such deduction or withholding been required. 

If at any time the Company determines that as a result of a change in or amendment to the laws or regulations of a Taxing Jurisdiction (including any treaty
to which such Taxing Jurisdiction is a party), or a change in an official application or interpretation of such laws or regulations (including a decision of any court or tribunal), either generally or in relation to any particular Securities, which
change, amendment, application or interpretation becomes effective on or after the Original Issue Date in making any payment of, or in respect of, the principal amount of the Securities, the Company would be required to pay any Additional Amounts
with respect thereto, then the Securities will be redeemable upon not less than 35 nor more than 60 days’ notice by mail, at any time thereafter, in whole but not in part, at the election of the Company as provided in the Indenture at a
redemption price equal to the principal amount thereof. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Company and the 

  
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continued on next page) 
 -12- 

 
rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal
amount of the Securities at the time Outstanding of all series to be affected (considered together as one class for this purpose). The Indenture also contains provisions (i) permitting the Holders of a majority in aggregate principal amount of
the Securities at the time Outstanding of all series to be affected under the Indenture (considered together as one class for this purpose), on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and (ii) permitting the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of any series to be affected under the Indenture (with each such series considered separately for
this purpose), on behalf of the Holders of all Securities of such series, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any 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 Security. 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have any right to institute any proceeding, judicial or
otherwise, with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in aggregate principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event
of Default as Trustee and offered the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request, and the Trustee shall not have received from the Holders of a majority in principal amount
of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall
not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof on or after the respective due dates expressed herein. 

  
 (Reverse of Security
continued on next page) 
 -13- 

 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair
the obligation of the Company, which is absolute and unconditional, to pay the principal of this Security as herein provided. 
 As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Senior Debt Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in
any place where the principal of this Security is payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Senior Debt Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing. Thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

This Security, and any other Securities of this series and of like tenor, are issuable only in registered form without coupons in denominations of any
multiple of $1600. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to
due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not
this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 This Security and the
Indenture shall be governed by and construed in accordance with the laws of the State of New York. 

  
 (Reverse of Security
continued on next page) 
 -14-

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