Document:

Exhibit 4.2

 

 

 

 

 

 

THE ROYAL BANK OF SCOTLAND GROUP PLC

 

as Company

 

and

 

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

 

as Trustee

 

 

 

FOURTH SUPPLEMENTAL INDENTURE

 

dated as of May 15, 2017

 

to the

 

AMENDED AND RESTATED INDENTURE

 

dated as of September 13, 2011

 

$1,500,000,000 3.498% Fixed Rate/Floating
Rate Notes due 2023

$1,500,000,000 Floating Rate Notes due 2023

 

 

 

 

     

     

    

  

This FOURTH SUPPLEMENTAL INDENTURE, dated
as of May 15, 2017, among THE ROYAL BANK OF SCOTLAND GROUP PLC, a corporation incorporated in Scotland with registered number SC045551,
as issuer (the “Company”) and THE BANK OF NEW YORK MELLON, acting through its London Branch, a banking corporation
duly organized and existing under the laws of the State of New York, as trustee (the “Trustee”) having its Corporate
Trust Office at One Canada Square, London E14 5AL.

 

WITNESSETH:

 

WHEREAS, the Company and the Trustee have
executed and delivered an amended and restated Indenture dated as of September 13, 2011 (the “Amended and Restated Indenture”),
as amended and supplemented in respect of all series of senior debt securities issued thereunder, by the First Supplemental Indenture
dated as of April 1, 2014 (the “First Supplemental Indenture”) and the Second Supplemental Indenture dated as
of April 5, 2016 (the “Second Supplemental Indenture” and, together with the Amended and Restated Indenture
and the First Supplemental Indenture, the “Base Indenture”) to provide for the issuance of the Company’s
Senior Debt Securities from time to time;

 

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

 

WHEREAS, the Company desires to issue, as
two further series of Senior Debt Securities under the Base Indenture, $1,500,000,000 3.498% Fixed Rate/Floating Rate Notes due
2023 (the “Fixed/Floating Rate Notes”) and $1,500,000,000 Floating Rate Notes due 2023 (the “Floating
Rate Notes” and, together with the Fixed/Floating Rate Notes, the “Senior Notes”), to be issued pursuant
to this Fourth Supplemental Indenture dated as of May 15, 2017 (the “Fourth Supplemental Indenture” and, together
with the Base Indenture, the “Indenture”);

 

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

 

WHEREAS, there are no debt securities outstanding
of any series created prior to the execution of this Fourth Supplemental Indenture which are entitled to

 

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the benefit of the provisions set forth herein
or would be adversely affected by such provisions;

 

WHEREAS, the entry into of this Fourth Supplemental
Indenture has been authorized pursuant to a Board Resolution as required by Section 9.01 of the Amended and Restated Indenture;

 

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

 

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

 

Article
1

DEFINITIONS

 

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

 

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

 

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

 

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

 

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

 

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

 

Article
2

THE SENIOR DEBT SECURITIES

 

Section 2.01.     
Terms specific to the Fixed/Floating Rate Notes. The following terms relating to the Fixed/Floating Rate Notes are
hereby established pursuant to Section 3.01 of the Base Indenture:

 

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(a)       
The title of the Fixed/Floating Rate Notes shall be the “3.498% Fixed Rate/Floating Rate Notes due 2023”;

 

(b)       
The aggregate principal amount of the Fixed/Floating Rate Notes that may be authenticated and delivered under the Indenture
shall not initially exceed $1,500,000,000 (except as otherwise provided in the Indenture);

 

(c)       
Principal on the Fixed/Floating Rate Notes shall be payable on May 15, 2023 (the “Maturity Date”);

 

(d)       
The Fixed/Floating Rate Notes shall be issued in global registered form on or about May 15, 2017;

 

(e)       
From (and including) May 15, 2017, to (but excluding) May 15, 2022 (such period, the “Fixed/Floating Rate Notes
Fixed Rate Period”), interest on the Fixed/Floating Rate Notes will be payable at a rate of 3.498% per annum. During
the Fixed/Floating Rate Notes Fixed Rate Period, interest on the Fixed/Floating Rate Notes will be payable semi-annually in arrear
on May 15 and November 15 of each year, beginning on November 15, 2017 (each, a “Fixed/Floating Rate Notes Fixed Rate
Period Interest Payment Date”) to (and including) May 15, 2022.

 

From (and including) May 15, 2022,
to (but excluding) maturity (such period, the “Fixed/Floating Rate Notes Floating Rate Period”), the interest
rate on the Fixed/Floating Rate Notes will be equal to the three-month U.S. dollar London interbank offered rate (“LIBOR”),
as determined by the Calculation Agent on the applicable Fixed/Floating Rate Notes Interest Determination Date, plus 1.480% per
annum (the “Fixed/Floating Rate Notes Floating Interest Rate”), accruing from May 15, 2022, to (but excluding)
maturity. During the Fixed/Floating Rate Notes Floating Rate Period, interest on the Fixed/Floating Rate Notes will be payable
quarterly in arrear on August 15, 2022, November 15, 2022, February 15, 2023 and May 15, 2023, beginning on August 15, 2022, to
and (including) maturity (each, a “Fixed/Floating Rate Notes Floating Rate Period Interest Payment Date” and,
together with each Fixed/Floating Rate Notes Fixed Rate Period Interest Payment Date, each a “Fixed/Floating Rate Notes
Interest Payment Date”) and will be reset quarterly on May 15, 2022, August 15, 2022, November 15, 2022 and February
15, 2023, beginning on May 15, 2022 (each a “Fixed/Floating Rate Notes Interest Reset Date”).

 

For the Fixed/Floating Rate Notes
during the Fixed/Floating Rate Notes Fixed Rate Period:

 

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

 

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

 

For the Fixed/Floating Rate Notes
during the Fixed/Floating Rate Notes Floating Rate Period:

 

(i)           
Interest will be calculated on the basis of the actual number of days in each interest period, assuming a 360-day year.
An interest period will be the period beginning on (and including) a Fixed/Floating Rate Notes Floating Rate Period Interest Payment
Date and ending on (but excluding) the next succeeding Fixed/Floating Rate Notes Floating Rate Period Interest Payment Date;
provided that the first floating rate interest period will begin May 15, 2022 and will end on (but exclude) the first Fixed/Floating
Rate Notes Floating Rate Period Interest Payment Date.

 

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

 

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

 

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

 

(h)       
The form of the Fixed/Floating Rate Notes shall be evidenced by one or more global notes in registered form (each, a “Fixed/Floating
Rate Notes Global Note”) substantially in the form of Exhibit A attached to this Fourth Supplemental Indenture
and made a part thereof.

 

Section 2.02.     
Terms specific to the Floating Rate Notes. The following terms relating to the Floating Rate Notes are hereby established
pursuant to Section 3.01 of the Base Indenture:

 

(a)       
The title of the Floating Rate Notes shall be the “Floating Rate Notes due 2023”;

 

(b)       
The aggregate principal amount of the Floating Rate Notes that may be authenticated and delivered under the Indenture shall
not initially exceed $1,500,000,000 (except as otherwise provided in the Indenture);

 

(c)       
Principal on the Floating Rate Notes shall be payable on May 15, 2023;

 

(d)       
The Floating Rate Notes shall be issued in global registered form on or about May 15, 2017;

 

(e)       
From (and including) May 15, 2017, to (but excluding) maturity, the interest rate on the Floating Rate Notes will be equal
to the three-month U.S. dollar LIBOR, as determined by the Calculation Agent on the applicable Floating Rate Notes Interest Determination
Date, plus 1.470% per annum, accruing from May 15, 2017, to (but excluding) maturity (the “Floating Rate Notes Interest
Rate”). Interest on the Floating Rate Notes will be payable quarterly in arrear on February 15, May 15, August 15 and
November 15 of each year, beginning on August 15, 2017, and ending on maturity (each, a “Floating Rate Notes Interest
Payment Date” and, together with each Fixed/Floating Rate Notes Interest Payment Date, each an “Interest Payment
Date”). The interest rate applicable to the Floating Rate Notes will be reset quarterly on February 15, May 15, August 15
and November 15 of each year, beginning on May 15, 2017 (each, a “Floating Rate Notes Interest Reset Date”,
and, together with each Fixed/Floating Rate Notes Interest Reset Date, each an “Interest Reset Date”).

 

For the Floating Rate Notes:

 

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

 

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

 

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

 

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

 

(h)       
The form of the Floating Rate Notes shall be evidenced by one or more global notes in registered form (each, a “Floating
Rate Notes Global Note” and, together with each Fixed/Floating Rate Notes Global Note, each a “Global Note”)
substantially in the form of Exhibit B attached to this Fourth Supplemental Indenture and made a part thereof.

 

Section 2.03.     
Terms applicable to each series of Senior Notes. The following terms relating to both the Fixed/Floating Rate Notes
and the Floating Rate Notes are hereby established pursuant to Section 3.01 of the Base Indenture.

 

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

 

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(b)       
The Senior Notes shall not be redeemable except as provided in Article 11 of the Base Indenture as amended by Sections 3.11
and 3.12 of this Fourth Supplemental Indenture. The Senior Notes shall not be redeemable at the option of the Holders at any time.
In connection with any redemption of Senior Notes pursuant to Section 11.08 of the Base Indenture, the date referenced therein
shall be May 15, 2017.

 

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

 

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

 

(e)       
The principal amount of, and any accrued interest on, the Senior Notes shall be payable upon the declaration of acceleration
thereof pursuant to Section 5.02 of the Base Indenture, as amended by Section 3.08 of this Fourth Supplemental Indenture;

 

(f)       
Additional Amounts shall only be payable on the Senior Notes pursuant to Section 10.04 of the Base Indenture, as amended
by Section 3.10 of this Fourth Supplemental Indenture;

 

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

 

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

 

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

 

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

 

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

 

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

 

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(m)       
The Calculation Agent for the Senior Notes is The Royal Bank of Scotland plc or its successor appointed by us, pursuant
to a calculation agent agreement expected to be entered into on May 15, 2017;

 

(n)       
LIBOR shall be determined by the Calculation Agent in accordance with the following provisions:

 

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

 

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

 

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be determined by such alternate
method as reasonably selected by the Calculation Agent and (ii) in respect of the Floating Rate Notes, the first Floating Rate
Notes Interest Rate.

 

“Interest Determination
Date” means the second London banking day preceding each Fixed/Floating Rate Notes Interest Reset Date or Floating Rate
Notes Interest Reset Date, as applicable.

 

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

 

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

 

(o)       
The Events of Default on the Senior Notes are as set forth in Section 5.01 of the Base Indenture as amended by Section 3.07
of this Fourth Supplemental Indenture; and

 

(p)       
The Company may issue additional Senior Notes (“Additional Senior Notes”) after the date hereof having
the same ranking and same interest rate, Maturity Date, redemption terms and other terms as the Senior Notes except for the price
to the public and issue date, provided however that if such additional notes have the same CUSIP, ISIN and/or Common Code as the
Outstanding Senior Notes, such additional notes must be fungible with the Senior Notes for U.S. federal income tax purposes. Any
such Additional Senior Notes, together with the Senior Notes will constitute a single series of securities under the Indenture.
There is no limitation on the amount of notes or other debt securities that the Company may issue under the Indenture.

 

Article
3

AMENDMENTS TO THE BASE INDENTURE

 

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

 

“Beneficial
Owners” shall mean (a) if the Senior Debt Securities are in global form, the beneficial owners of the Senior

 

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Debt Securities (and
any interest therein) and (b) if the Senior Debt Securities are held in definitive form, the holders in whose names the Senior
Debt Securities are registered in the Senior Debt Security Register and any beneficial owners holding an interest in such Senior
Debt Securities held in definitive form.

 

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

 

“Calculation
Agent” The Royal Bank of Scotland plc or its successor appointed by us, pursuant to a calculation agent agreement expected
to be entered into on May 15, 2017.

 

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

 

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

 

“Fixed/Floating
Rate Notes” has the meaning set forth in the recitals to the Fourth Supplemental Indenture.

 

“Fixed/Floating
Rate Notes Fixed Rate Period” has the meaning set forth in Section 2.01 of the Fourth Supplemental Indenture.

 

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

 

“Floating
Rate Notes” has the meaning set forth in the recitals to the Fourth Supplemental Indenture.

 

“Floating
Rate Notes Interest Payment Date” has the meaning set forth in Section 2.02 of the Fourth Supplemental Indenture.

 

“Fourth
Supplemental Indenture” means the fourth supplemental indenture under this Amended and Restated Indenture, dated as of
May 15, 2017, among the Company and the Trustee.

 

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“Interest
Payment Date” has the meaning set forth in Section 2.02 of the Fourth Supplemental Indenture.

 

“Issue
Date” means May 15, 2017.

 

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

 

(i)           
at the time that any Loss Absorption Regulation becomes effective, and as a result of such Loss Absorption Regulation becoming
so effective, in each case with respect to the Company and/or the Regulatory Group, on or after the issue date of the series of
Senior Notes affected, the applicable Senior Notes of such series are or, in the Company’s opinion or in the opinion of the
PRA are likely to be fully or partially excluded from the Company’s and/or the Regulatory Group’s minimum requirements
for (A) own funds and eligible liabilities and/or (B) loss absorbing capacity instruments; or

 

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

 

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

 

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

 

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

 

“Maturity
Date” means May 15, 2023.

 

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

 

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

 

“relevant
U.K. resolution authority” means any authority with the ability to exercise a U.K. bail-in power.

 

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

 

“U.K.
bail-in power” means any write-down, conversion, transfer, modification or suspension power existing from time to time
under any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions
and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company or other
members of the Group, including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted
or enacted within the context of a European Union directive or regulation of the European Parliament and of

 

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the Council establishing
a framework for the recovery and resolution of credit institutions and investment firms and/or within the context of a UK resolution
regime under the Banking Act 2009, as the same has been or may be amended from time to time (whether pursuant to the UK Financial
Services (Banking Reform) Act 2013 (the “Banking Reform Act 2013”), secondary legislation or otherwise, the
“Banking Act”), pursuant to which any obligations of a bank, banking group company, credit institution or investment
firm or any of its affiliates can be reduced, cancelled, modified, transferred and/or converted into shares or other securities
or obligations of the obligor or any other person (or suspended for a temporary period) or pursuant to which any right in a contract
governing such obligations may be deemed to have been exercised.

 

Section 3.02.     
Deletion of Definitions. With respect to the Senior Notes only, the following definitions shall be deleted in their
entirety in Section 1.01 of the Base Indenture:

 

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

 

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

 

Section 3.03.     
Notice to Holders; Waiver. With respect to all series of Senior Debt Securities issued under the Indenture, including
the Senior Notes, but excluding, for the avoidance of doubt, any series of Senior Debt Securities Outstanding, the second paragraph
of Section 1.06 of the Base Indenture is amended and restated to read as follows:

 

For so long as the Senior Debt Securities
of any series are represented by Global Securities, the Company will deliver
a copy of all notices with respect to such series to the Holder through the Depositary, in accordance with its applicable procedures
from time to time. Otherwise, notices
to the Holders will be provided to the addresses that appear on the Senior Debt Security
Register.

 

Section 3.04.     
Amount Unlimited; Issuable in Series. With respect to the Senior Notes only, Section 3.01, second paragraph, (d),
of the Base Indenture is amended to delete the words “, the Special Record Date for the payment of any Default Interest”.

 

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Section 3.05.     
Payment; Interest Rights Preserved. With respect to the Senior Notes only, Section 3.07 of the Base Indenture is
amended and restated in its entirety and shall read as follows:

 

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

 

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

 

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

 

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

 

Section 3.06.     
Satisfaction and Discharge. With respect to the Senior Notes only, Section 4.01 of the Base Indenture is amended
and restated in its entirety and shall read as follows:

 

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

 

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

 

    	15

     

    

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

 

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

 

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

 

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

 

Section 3.07.     
Events of Default. With respect to the Senior Notes only, Section 5.01 of the Base Indenture is amended and restated
in its entirety and shall read as follows:

 

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

 

Section 3.08.     
Acceleration of Maturity; Rescission and Annulment. With respect to the Senior Notes only, Section 5.02 of the Base
Indenture is amended by adding the following at the end of the section:

 

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

 

    	16

     

    

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

 

Section 3.09.     
Defaults; Collection of Indebtedness and Suits for Enforcement by Trustee. With respect to the Senior Notes only,
Section 5.03 of the Base Indenture is amended and restated in its entirety and shall read as follows:

 

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

 

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

 

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

 

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

 

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

 

    	17

     

    

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

 

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

 

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

 

    	18

     

    

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

 

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

 

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

 

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

 

Section 3.10.     
With respect to the Senior Notes only, Sections 5.07(a), 5.07(b), 5.11, 5.13, 6.02, 6.03(i), 8.03(c) of the Base Indenture
shall be amended to add the words “or Default” after each appearance of the words “Event of Default”.

 

    	19

     

    

Section 3.11.     
Compensation and Reimbursement. With respect to the Senior Notes only, Section 6.07 of the Base Indenture is amended
in part to add the following sentence at the end of the section:

 

The Trustee’s right to reimbursement
and indemnity under this Section 6.07 shall survive the payment in full of the Senior Debt Securities, the discharge of this Amended
and Restated Indenture, the resignation or removal of the Trustee and any termination of the Amended and Restated Indenture, including
any termination under any bankruptcy law and (without prejudice to Section 5.07 of the Fourth Supplemental Indenture if, and to
the extent applicable, as set out therein) any exercise of the U.K. bail-in power by the relevant U.K. resolution authority with
respect to the obligations owed or owing to Holders pursuant to or in connection with the Senior Debt Securities.

 

To the extent the Company’s
obligations to reimburse and indemnify the Trustee pursuant to this Section 6.07 are excluded liabilities under the Banking Act
or otherwise excluded from any exercise of the U.K. bail-in power by the relevant U.K. resolution authority by legislation, rule,
regulation or regulatory technical standard, such liabilities shall survive the application of such U.K. bail-in power.

 

Section 3.12.     
Additional Amounts. With respect to all series of Senior Debt Securities issued under the Indenture, including the
Senior Notes, but excluding, for the avoidance of doubt, any series of Senior Debt Securities Outstanding, the last paragraph of
Section 10.04 of the Base Indenture is amended and restated to read as follows:

 

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

 

Section 3.13.     
Optional Redemption Due to Changes in Tax Treatment. With respect to the Senior Notes only, Section 11.08 of the
Base Indenture is amended to replace in the first paragraph (i) the word “Unless” with the words “Subject to
Section 11.11 and unless” and (ii) the words “on any Interest Payment Date,” with “(i) in respect of the
Fixed/Floating Rate Notes, at any time during the Fixed/Floating Rate Notes Fixed Rate Period and thereafter only on a

 

    	20

     

    

Fixed/Floating Rate Notes Floating Rate Period
Interest Payment Date and (ii) in respect of the Floating Rate Notes, only on a Floating Rate Notes Interest Payment Date, in each
case”.

 

Section 3.14.     
Redemption of Senior Debt Securities. With respect to the Senior Notes only, Article 11 of the Base Indenture is
amended to amend and restate Section 11.04 and to add a Section 11.09, Section 11.10 and Section 11.11, each of which shall read
as follows:

 

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

 

Any redemption notice will state:

 

		a)	the Redemption Date;

 

		b)	the Redemption Price;

 

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

 

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

 

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

 

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

 

Section 11.09.Optional Redemption.

 

Subject to Section 11.11, the Company
may, at the Company’s option and in its sole discretion, redeem Senior Debt Securities of any series, in whole but not in
part, on May 15, 2022 at a Redemption Price equal to 100% of the principal amount of the Senior Debt Securities of any series together

 

    	21

     

    

with any accrued but unpaid interest
to, but excluding, the Redemption Date.

 

Section 11.10. Loss Absorption
Disqualification Event Redemption.

 

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

 

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

 

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

 

Section 3.15.     
Senior Debt Securities Payable on Redemption Date. With respect to the Senior Notes only, Section 11.06 of the Base
Indenture is amended to delete the words “or Special Record Date”.

 

    	22

     

    

Article
4 

 

Section 4.01.     
Agreement with Respect to Exercise of U.K. Bail-In Power. The following provisions relate solely to the Senior Notes
established pursuant to this Fourth Supplemental Indenture:

 

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

 

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

 

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

 

(ii)           
to the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate
a suit against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes,
or abstains from taking, in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution
authority with respect to the Senior Notes; and

 

    	23

     

    

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

 

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

 

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

 

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

 

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

 

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

 

(f)       
No repayment of the principal amount of the Senior Notes or payment of interest on the Senior Notes shall become due and
payable after the exercise of any U.K. bail-in power by the relevant U.K. resolution authority unless, at the time that such repayment
or payment, respectively, is scheduled to become due, such repayment or payment would be permitted to be made by the

 

    	24

     

    

Company under the laws and regulations
of the United Kingdom and the European Union applicable to the Company and the Group.

 

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

 

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

 

Article
5

MISCELLANEOUS

 

Section 5.01.     
Effect of Supplemental Indenture. Upon the execution and delivery of this Fourth Supplemental Indenture by the Company
and the Trustee, and the delivery of the documents referred to in ‎Section 5.02 herein, the Base Indenture shall be amended
and supplemented in accordance herewith, and this Fourth Supplemental Indenture shall form a part of the Base Indenture for all
purposes in respect of the Senior Notes.

 

Section 5.02.     
Other Documents to Be Given to the Trustee. As specified in Section 9.03 of the Base Indenture and subject to the
provisions of Section 6.03 of the Base Indenture, the Trustee shall be entitled to receive an Officer’s Certificate and an
Opinion of Counsel stating the recitals contained in Section 1.02 of the Base Indenture, and in the case of such Opinion of Counsel,
that this Fourth Supplemental Indenture is permitted by the Base Indenture, conforms to the requirements of the Trust Indenture
Act, and (subject to Section 1.03 of the Base Indenture) constitutes valid and binding obligations of the Company enforceable in
accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally,
concepts of reasonableness and equitable principles of general applicability and may be subject to possible judicial or regulatory
actions giving effect to governmental actions or foreign laws affecting creditors’ rights, as conclusive evidence that this
Fourth Supplemental Indenture complies with the applicable provisions of the Base Indenture.

 

    	25

     

    

Section 5.03.     
Confirmation of Indenture. The Base Indenture and this Fourth Supplemental Indenture with respect to the Senior Notes,
is in all respects ratified and confirmed, and the Base Indenture, this Fourth Supplemental Indenture and all indentures supplemental
thereto shall, in respect of the Senior Notes, be read, taken and construed as one and the same instrument. This Fourth Supplemental
Indenture constitutes an integral part of the Base Indenture with respect to the Senior Notes. In the event of a conflict between
the terms and conditions of the Base Indenture and the terms and conditions of this Fourth Supplemental Indenture, the terms and
conditions of this Fourth Supplemental Indenture shall prevail with respect to the Senior Notes.

 

Section 5.04.     
Concerning the Trustee. The Trustee does not make any representations as to the validity or sufficiency of this Fourth
Supplemental Indenture. The recitals and statements herein are deemed to be those of the Company and not the Trustee. In entering
into this Fourth Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the Base Indenture
relating to the conduct of or affecting the liability of or affording protection to the Trustee.

 

Section 5.05.     
Governing Law. This Fourth Supplemental Indenture and the Senior Notes shall be governed by and construed in accordance
with the laws of the State of New York, irrespective of conflicts of laws principles, except as stated in Section 1.12 of the Base
Indenture, and except that the authorization and execution by the Company of this Fourth Supplemental Indenture and the Senior
Notes shall be governed by (in addition to the laws of the State of New York relevant to execution) the respective jurisdictions
of the Company and the Trustee, as the case may be.

 

Section 5.06.     
Reparability. In case any provision contained in this Fourth Supplemental Indenture shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.

 

Section 5.07.     
Concerning BRRD Liability. Notwithstanding and to the exclusion of any other term of this Fourth Supplemental Indenture
or the Base Indenture or any other agreements, arrangements, or understanding between the Company and the Trustee, the Trustee
acknowledges and accepts that a BRRD Liability arising under this Indenture with respect to the Senior Notes may be subject to
the exercise of Bail-in Powers by the Relevant Resolution Authority, and acknowledges, accepts and agrees to be bound by:

 

(a)       
the effect of the exercise of Bail-in Powers by the Relevant Resolution Authority in relation to any BRRD Liability of the
Company to the Trustee under this Fourth Supplemental Indenture or the Base Indenture, that

 

    	26

     

    

(without limitation) may include
and result in any of the following, or some combination thereof:

 

(i)           
the reduction of all, or a portion, of the BRRD Liability or outstanding amounts due thereon;

 

(ii)           
the conversion of all, or a portion, of the BRRD Liability into shares, other securities or other obligations of the Company
or another person (and the issue to or conferral on the Trustee of such shares, securities or obligations)

 

(iii)           
the cancellation of the BRRD Liability; and/or

 

(iv)           
the amendment or alteration of any interest, if applicable, thereon, the maturity or the dates on which any payments are
due, including by suspending payment for a temporary period; and

 

(b)       
the variation of the terms of this Fourth Supplemental Indenture or the Base Indenture, as deemed necessary by the Relevant
Resolution Authority, to give effect to the exercise of Bail-in Powers by the Relevant Resolution Authority.

 

“Bail-in Legislation”
means Part I of the U.K. Banking Act 2009 and any other law, regulation, rule or requirement applicable from time to time in the
U.K. relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates
(otherwise than through liquidation, administration or other insolvency proceedings).

 

“Bail-in Powers”
means any Write-down and Conversion Powers as defined in relation to the Bail-in Legislation.

 

“BRRD” means
Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms.

 

“BRRD Liability”
has the same meaning as in such laws, regulations, rules or requirements implementing the BRRD under the applicable Bail-in Legislation.

 

“Relevant Resolution Authority”
means the resolution authority with the ability to exercise any Bail-in Powers in relation to the Company.

 

“Write-down and Conversion
Powers” means the powers under the Bail-In Legislation to cancel, transfer or dilute shares issued by a person that is
a bank or investment firm or affiliate of a bank or investment firm,

 

    	27

     

    

to cancel, reduce, modify or change
the form of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part
of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract
or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability.

 

Section 5.08.     
FATCA. The Paying Agent shall be entitled to make any FATCA Withholding, and neither the Company nor the Paying Agent
shall have any obligation to gross-up any payment hereunder or under the Senior Notes as a result of any such FATCA Withholding.
Each of the Company and the Paying Agent shall provide to the other party, upon request, such forms and documentation as may be
reasonably necessary for the other party to determine whether it has any withholding or reporting obligations pursuant to FATCA
in relation to the Senior Notes, provided that the requested information is within the first party’s possession and such
party is legally entitled to provide such information.

 

“FATCA” means
(i) sections 1471 to 1474 of the U.S. Internal Revenue Code of 1986, as amended, any U.S. Treasury regulations promulgated thereunder,
or any official guidance with respect thereto; (ii) any intergovernmental agreement between the United States and any other jurisdiction
which facilitates the implementation of clause (i), or any law, regulation or other official guidance enacted or issued in any
jurisdiction to implement such intergovernmental agreement; or (iii) any agreement entered into with the U.S. Internal Revenue
Service, the U.S. Treasury or any governmental or taxation authority in any other jurisdiction for the implementation of clauses
(i) or (ii).

 

“FATCA Withholding”
means any amount required to be deducted or withheld from any payment under the Senior Notes or this Fourth Supplemental Indenture
pursuant to FATCA.

 

Section 5.09.     
Counterparts. This Fourth Supplemental Indenture may be executed in any number of counterparts, each of which shall
be an original, but such counterparts shall together constitute but one and the same instrument.

 

[Signature Page Follows]

 

    	28

     

    

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

 

	THE
    ROYAL BANK OF SCOTLAND GROUP PLC, as Company
	 
	By:	/s/
    Ian Merriman
	 	Name: Ian Merriman
	 	Title:   Head of Strategic
    Projects

 

	THE
    BANK OF NEW YORK MELLON, LONDON BRANCH, as Trustee
	 
	By:	/s/
    Paul Cattermole

	 	Name: Paul Cattermole

	 	Title:   Vice President

 

[Signature Page to Fourth Supplemental
Indenture]

 

     

     

    

EXHIBIT A

 

FORM OF FIXED/FLOATING RATE NOTE

 

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

 

CUSIP No. 780097 BE0

ISIN No. US780097BE04

 

THE ROYAL BANK OF SCOTLAND GROUP plc

 

3.498%
Fixed rate/floating rate Notes due 2023

 

	No. [●]	$[●]

 

THE ROYAL BANK OF SCOTLAND GROUP plc (herein
called the “Company,” which term includes any successor person under the Indenture (as defined on the reverse
hereof)), for value received, hereby promises to pay to CEDE & CO., or registered assignees, the principal sum of $[●]
([●] million dollars) on May 15, 2023, or on such earlier date as the principal hereof may become due in accordance with
the terms hereof and to pay interest thereon:

 

(1) from (and including) May 15, 2017 (the
“Issue Date”), to (but excluding) May 15, 2022 (such period, the “Fixed/Floating Rate Notes Fixed Rate
Period”), semi-annually in arrear on May 15 and November 15 of each year, beginning on November 15, 2017, to (and including)
May 15, 2022 (each, a “Fixed/Floating Rate Notes Fixed Rate Period Interest Payment Date”), at a rate of 3.498%
per annum; and

 

(2) from (and including) May 15, 2022 to
(but excluding) maturity (such period, the “Fixed/Floating Rate Notes Floating Rate Period”), quarterly in arrear
on August 15, 2022, November 15, 2022, February 15, 2023 and May 15, 2023, beginning on August 15, 2022, to (and including) maturity
(each, a “Fixed/Floating Rate Notes 

 

    
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Floating Rate Period Interest Payment Date” and,
together with each Fixed/Floating Rate Notes Fixed Rate Period Interest Payment Date, each a “Fixed/Floating Rate Notes
Interest Payment Date”), equal to the three-month U.S. dollar London interbank offered rate (“LIBOR”),
as determined by the Calculation Agent on the applicable Fixed/Floating Rate Notes Interest Determination Date, plus 1.480% per
annum, accruing from May 15, 2022, to (but excluding) maturity (the “Fixed/Floating Rate Notes Floating Interest Rate”)
and which interest rate will be reset quarterly on May 15, 2022, August 15, 2022, November 15, 2022 and February 15, 2023, beginning
on May 15, 2022 (each a “Fixed/Floating Rate Notes Interest Reset Date”).

 

“Fixed/Floating Rate Notes Interest
Determination Date” means the second London banking day preceding each applicable Fixed/Floating Rate Notes Interest
Reset Date.

 

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

 

LIBOR shall be determined by the Calculation
Agent in accordance with the following provisions:

 

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

 

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

 

    
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Determination Date will be the
arithmetic mean of the rates quoted at approximately 11:00 a.m., in the City of New York, on the Fixed/Floating Rate Notes Interest
Determination Date by three major banks in the City of New York, as selected and identified by the Company, for loans in U.S. dollars
to leading European banks, for a period of three months, commencing on the related Fixed/Floating Rate Notes Interest Reset Date,
and in a principal amount that is representative for a single transaction in U.S. dollars in that market at that time. If at least
two such rates are so provided, LIBOR on the Fixed/Floating Rate Notes Interest Determination Date will be the arithmetic mean
of such rates. If fewer than two such rates are so provided, LIBOR on the Fixed/Floating Rate Notes Interest Determination Date
will be LIBOR in effect with respect to the immediately preceding Fixed/Floating Rate Notes Interest Determination Date or, in
the case of the initial Fixed/Floating Rate Notes Interest Determination Date, such rate as may be determined by such alternate
method as reasonably selected by the Calculation Agent.

 

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

 

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

 

During the Fixed/Floating Rate Notes Fixed
Rate Period:

 

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

 

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

 

During the Fixed/Floating Rate Notes
Floating Rate Period:

 

(i)           
Interest will be calculated on the basis of the actual number of days in each interest period, assuming a 360-day year.
An interest period will be the period beginning on (and including) a Fixed/Floating Rate Notes Floating Rate Period Interest Payment
Date and ending on (but excluding) the next succeeding

 

    
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Fixed/Floating Rate Notes Floating
Rate Period Interest Payment Date; provided that the first floating rate interest period will begin on May 15, 2022
and will end on (but exclude) the first Fixed/Floating Rate Notes Floating Rate Period Interest Payment Date.

 

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

 

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

 

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

 

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

 

Prior to due presentment of this Senior
Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in
whose name this Senior Note is registered as the owner of such Senior Note for the

 

    
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purpose of receiving payment of principal and interest, if any,
on such Senior Note and for all other purposes whatsoever, whether or not such Senior Note be overdue, and neither the Company,
the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.

 

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

 

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

 

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

 

For these purposes, “U.K. bail-in
power” means any write-down, conversion, transfer, modification or suspension power existing from time to time under
any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions
and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company or other
members of the Group, including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted
or enacted within the context of a European Union directive or regulation of the European Parliament and of the Council establishing
a framework for the recovery and resolution of credit institutions and investment firms and/or within the context of a U.K. resolution
regime under the Banking

 

    
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Act 2009, as the same has been or may be amended from time to
time (whether pursuant to the U.K. Financial Services (Banking Reform) Act 2013 (the “Banking Reform Act 2013”),
secondary legislation or otherwise, the “Banking Act”), pursuant to which any obligations of a bank, banking
group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled, modified, transferred
and/or converted into shares or other securities or obligations of the obligor or any other person (or suspended for a temporary
period) or pursuant to which any right in a contract governing such obligations may be deemed to have been exercised, “relevant
U.K. resolution authority” means any authority with the ability to exercise a U.K. bail-in power.

 

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

 

Dated: May 15, 2017

 

	Executed by 

THE ROYAL BANK OF SCOTLAND GROUP PLC
	 
	By:	 
	 	Name:	
	 
	Title:
	Authorized Signatory

 

 

     

     

    

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: May 15, 2017

 

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

 

     

     

    

[Reverse of Note]

 

This
note is one of a duly authorized issue of securities of the Company (herein called the “Senior Notes”) issued
and to be issued in one or more series under an amended and restated Indenture dated as of September 13, 2011 (the “Amended
and Restated Indenture”), as amended and supplemented in respect of all series of senior debt securities issued thereunder,
by the First Supplemental Indenture dated as of April 1, 2014 (the “First Supplemental Indenture”) and the Second
Supplemental Indenture dated as of April 5, 2016 (the “Second Supplemental Indenture” and, together with the
Amended and Restated Indenture and the First Supplemental Indenture, the “Base Indenture”) and as amended and
supplemented by the Fourth Supplemental Indenture dated as of May 15, 2017 (the “Fourth Supplemental Indenture”
and, together with the Base Indenture, the “Indenture”), in
each case among the Company, as issuer, and The Bank of New York Mellon, acting through its London Branch as trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture). Reference is hereby made to the
Indenture and all indentures supplemental thereto for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Senior Notes and of the terms upon which the Senior Notes are, and
are to be, authenticated and delivered.

 

This Senior Note is one of the series designated
on the face hereof, initially limited in aggregate principal amount to $1,500,000,000.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Subject
to applicable law, the Trustee (acting on behalf of the Holders) and the Holders of
the Senior Notes by their acceptance thereof will be
deemed to have waived to the fullest extent
permitted by law any right of set-off, counterclaim or combination
of accounts with respect to the Senior Notes, the Fourth Supplemental
Indenture or the Amended and Restated Indenture (or between the Company’s obligations
under or in respect of the Senior Notes
and any liability owed by a Holder to the Company) that they (or the Trustee acting
on their behalf) might otherwise have against the
Company, whether before or during any winding-up, liquidation or administration
of the Company. Notwithstanding the above, if any of such rights and claims
of any such Holder (or the Trustee acting
on behalf of such Holders) against the
Company are discharged by set-off,
such Holder (or the Trustee acting on behalf of such Holders) will immediately
pay an

 

    
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amount
equal to the amount of such discharge to the Company or, in the event of any winding-up,
liquidation or administration of the Company, the liquidator or administrator
(or other relevant insolvency official), as the case may
be, to be held on trust for the Senior Creditors
and until such time as payment
is made will hold a sum equal to such
amount on trust for the Senior Creditors and accordingly such
discharge shall be deemed not to have taken place.

 

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

 

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

 

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

 

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

 

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

 

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

 

(iv) the Holder or the beneficial owner
of the Senior Note or the payment on such Senior Note failed to comply with a request by the Company or its liquidator or other
authorized person addressed to the Holder (x) to provide information concerning the nationality, residence or identity of the Holder
or such beneficial owner or (y) to make any declaration or other similar claim to satisfy any requirement, which in the case of
(x) or (y), is required or imposed by a statute, treaty, regulation or administrative practice of the U.K. Taxing Jurisdiction
as a precondition to exemption or relief from all or part of such deduction or withholding,

 

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

 

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

 

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

 

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

 

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

 

Whenever in the Indenture there is mentioned,
in the context of Senior Notes, the payment of the principal, premium, if any, or interest on, or in respect of, any Senior

 

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

 

The Company will have the option to redeem
Senior Notes of this series, in whole but not in part, on not less than 5 business days nor more than 60 calendar days’ notice,
at any time during the Fixed/Floating Rate Notes Fixed Rate Period and thereafter only on a Fixed/Floating Rate Notes Floating
Rate Period Interest Payment Date, at a Redemption Price equal to 100% of the principal amount, together with accrued but unpaid
interest, if any, in respect of the Senior Notes to the date fixed for redemption, if, at any time, the Company shall determine
that as a result of a change in or amendment to the laws or regulations of the U.K. Taxing Jurisdiction (including any treaty to
which a U.K. Taxing Jurisdiction is a party), or any change in the official application or interpretation of such laws or regulations
(including a decision of any court or tribunal) which change or amendment becomes effective on or after May 15, 2017:

 

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

 

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

 

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

 

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

 

The Company may, at the Company’s
option and in its sole discretion, redeem Senior Notes of this series, in whole but not in part, on May 15, 2022, at a Redemption

 

    
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Price equal to 100% of the principal amount of the Senior Notes
of this series together with any accrued but unpaid interest to, but excluding, the Redemption Date.

 

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

 

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

 

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

 

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

 

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

 

    
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Holders of this Senior Note and of any Senior Note issued in
exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Senior Note.

 

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

 

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

 

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

 

For these purposes, “U.K. bail-in
power” means any write-down, conversion, transfer, modification or suspension power existing from time to time under
any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions
and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company or other
members of the Group, including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted
or enacted within the context of a European Union directive or regulation of the European Parliament and of the Council establishing
a framework for the recovery and resolution of credit institutions and investment firms and/or within the context of a U.K. resolution
regime under the Banking Act 2009, as the same has been or may be amended from time to time (whether pursuant

 

    
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to the U.K. Financial Services (Banking Reform) Act 2013 (the
“Banking Reform Act 2013”), secondary legislation or otherwise, the “Banking Act”), pursuant
to which any obligations of a bank, banking group company, credit institution or investment firm or any of its affiliates can be
reduced, cancelled, modified, transferred and/or converted into shares or other securities or obligations of the obligor or any
other person (or suspended for a temporary period) or pursuant to which any right in a contract governing such obligations may
be deemed to have been exercised, “relevant U.K. resolution authority” means any authority with the ability
to exercise a U.K. bail-in power.

 

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

 

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

 

(b)       to
the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate a suit
against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes, or abstains
from taking, in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution authority
with respect to the Senior Notes; and

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    
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EXHIBIT B

 

FORM OF FLOATING RATE NOTE

 

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

 

CUSIP No. 780097 BF7

ISIN No. US780097BF78

 

THE ROYAL BANK OF SCOTLAND GROUP plc

 

floating
rate Notes due 2023

 

	No. [●]	$[●]

 

THE ROYAL BANK OF SCOTLAND GROUP plc (herein
called the “Company,” which term includes any successor person under the Indenture (as defined on the reverse
hereof)), for value received, hereby promises to pay to CEDE & CO., or registered assignees, the principal sum of $[●]
([●] million dollars) on May 15, 2023, or on such earlier date as the principal hereof may become due in accordance with
the terms hereof and to pay interest thereon from (and including) May 15, 2017 (the “Issue Date”), to (but excluding)
maturity, quarterly in arrear on February 15, May 15, August 15 and November 15 of each year, beginning on August 15, 2017, and
ending on maturity (each, a “Floating Rate Notes Interest Payment Date”), equal to the three-month U.S. dollar
London interbank offered rate (“LIBOR”), as determined by the Calculation Agent on the applicable Floating Rate
Notes Interest Determination Date, plus 1.470% per annum, accruing from, May 15, 2017, to (but excluding) maturity (the “Floating
Rate Notes Interest Rate”), which rate will be reset quarterly on February 15, May 15, August 15 and November 15 of each
year, beginning on May 15, 2017 (each, a “Floating Rate Notes Interest Reset Date”).

 

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

 

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

 

LIBOR shall be determined by the Calculation
Agent in accordance with the following provisions:

 

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

 

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

 

    
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Notes Interest Determination Date
or, in the case of the initial Floating Rate Notes Interest Determination Date, the first Floating Rate Notes Interest Rate.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

For these purposes, “U.K. bail-in
power” means any write-down, conversion, transfer, modification or suspension power existing from time to time under
any laws,

 

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

 

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

 

Dated: May 15, 2017

 

	Executed by 

THE ROYAL BANK OF SCOTLAND GROUP PLC
	 
	By:	 
	 	Name:
	 	Title:	Authorized Signatory

 

 

     

     

    

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: May 15, 2017

 

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

 

     

     

    

[Reverse of Note]

 

This
note is one of a duly authorized issue of securities of the Company (herein called the “Senior Notes”) issued
and to be issued in one or more series under an amended and restated Indenture dated as of September 13, 2011 (the “Amended
and Restated Indenture”), as amended and supplemented in respect of all series of senior debt securities issued thereunder,
by the First Supplemental Indenture dated as of April 1, 2014 (the “First Supplemental Indenture”) and the Second
Supplemental Indenture dated as of April 5, 2016 (the “Second Supplemental Indenture” and, together with the
Amended and Restated Indenture and the First Supplemental Indenture, the “Base Indenture”) and as amended and
supplemented by the Fourth Supplemental Indenture dated as of May 15, 2017 (the “Fourth Supplemental Indenture”
and, together with the Base Indenture, the “Indenture”), in
each case among the Company, as issuer, and The Bank of New York Mellon, acting through its London Branch as trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture). Reference is hereby made to the
Indenture and all indentures supplemental thereto for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Senior Notes and of the terms upon which the Senior Notes are, and
are to be, authenticated and delivered.

 

This Senior Note is one of the series designated
on the face hereof, initially limited in aggregate principal amount to $1,500,000,000.

 

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

 

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

 

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

 

     

     

    

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

 

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

 

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

 

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

 

Subject
to applicable law, the Trustee (acting on behalf of the Holders) and the Holders of
the Senior Notes by their acceptance thereof will be
deemed to have waived to the fullest extent
permitted by law any right of set-off, counterclaim or combination
of accounts with respect to the Senior Notes, the Fourth Supplemental
Indenture or the Amended and Restated Indenture (or between the Company’s obligations
under or in respect of the Senior Notes
and any liability owed by a Holder to the Company) that they (or the Trustee acting
on their behalf) might otherwise have against the
Company, whether before or during any winding-up, liquidation or administration
of the Company. Notwithstanding the above, if any of such rights and claims
of any such Holder (or the Trustee acting
on behalf of such Holders) against the
Company are discharged by set-off,
such Holder (or the Trustee acting on behalf of such Holders) will immediately
pay an

 

    
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amount
equal to the amount of such discharge to the Company or, in the event of any winding-up,
liquidation or administration of the Company, the liquidator or administrator
(or other relevant insolvency official), as the case may
be, to be held on trust for the Senior Creditors
and until such time as payment
is made will hold a sum equal to such
amount on trust for the Senior Creditors
and accordingly such discharge shall be deemed
not to have taken place.

 

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

 

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

 

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

 

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

 

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

 

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

 

(iv) the Holder or the beneficial owner
of the Senior Note or the payment on such Senior Note failed to comply with a request by the Company or its liquidator or other
authorized person addressed to the Holder (x) to provide information concerning the nationality, residence or identity of the Holder
or such beneficial owner or (y) to make any declaration or other similar claim to satisfy any requirement, which in the case of
(x) or (y), is required or imposed by a statute, treaty, regulation or administrative practice of the U.K. Taxing Jurisdiction
as a precondition to exemption or relief from all or part of such deduction or withholding,

 

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

 

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

 

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

 

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

 

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

 

Whenever in the Indenture there is mentioned,
in the context of Senior Notes, the payment of the principal, premium, if any, or interest on, or in respect of, any Senior

 

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

 

The Company will have the option to redeem
Senior Notes of this series in whole but not in part, on not less than 5 business days nor more than 60 calendar days’ notice,
only on a Floating Rate Notes Interest Payment Date at a Redemption Price equal to 100% of the principal amount, together with
accrued but unpaid interest, if any, in respect of the Senior Notes to the date fixed for redemption, if, at any time, the Company
shall determine that as a result of a change in or amendment to the laws or regulations of the U.K. Taxing Jurisdiction (including
any treaty to which a U.K. Taxing Jurisdiction is a party), or any change in the official application or interpretation of such
laws or regulations (including a decision of any court or tribunal) which change or amendment becomes effective on or after May
15, 2017:

 

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

 

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

 

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

 

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

 

The Company may, at the Company’s
option and in its sole discretion, redeem Senior Notes of this series, in whole but not in part, on May 15, 2022, at a Redemption
Price equal to 100% of the principal amount of the Senior Notes of this series together with any accrued but unpaid interest to,
but excluding, the Redemption Date.

 

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

 

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

 

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

 

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

 

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

 

No reference herein to the Indenture and
no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and

 

    
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unconditional, to pay, if and when due and payable, the principal
of, and interest on, this Senior Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

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

 

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

 

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

 

    
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for a temporary period) or pursuant to which any right in a
contract governing such obligations may be deemed to have been exercised, “relevant U.K. resolution authority”
means any authority with the ability to exercise a U.K. bail-in power.

 

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

 

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

 

(b)       to
the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate a suit
against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes, or abstains
from taking, in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution authority
with respect to the Senior Notes; and

 

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

 

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

 

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

 

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

 

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

 

(ii)           
authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it holds such
Senior Notes to take

 

    
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any and all necessary action, if
required, to implement the exercise of any U.K. bail-in power with respect to the Senior Notes as it may be imposed, without any
further action or direction on the part of such Holder or Beneficial Owner.

 

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

 

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

 

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

 

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

 

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

 

Unless otherwise defined herein, all terms
used in this Senior Note which are defined in the Indenture shall have the meanings assigned to them in the Indenture.EX-10.1

 Exhibit 10.1 

REGISTRATION RIGHTS AGREEMENT 

This Registration Rights Agreement (this “Agreement”) is made and entered into as of May 10, 2017, by and among Tokai
Pharmaceuticals, Inc., a Delaware corporation (the “Company”) and each of the other parties signatory hereto (each a “Purchaser” and together, the “Purchasers”). This Agreement is made pursuant to
the Securities Purchase Agreement, dated as of January 31, 2017, among the Company and the Purchasers (the “Purchase Agreement”). 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the
receipt and adequacy of which are hereby acknowledged, the Company and the Purchasers agree as follows: 
 1. Definitions. Capitalized
terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement. As used in this Agreement, the following terms shall have the respective meanings set forth in
this Section 1: 
 “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly through
one or more intermediaries, Controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act. 

“Control” (including the terms “controlling”, “controlled by” or “under common control with”)
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 

“Commission” means the United States Securities and Exchange Commission, or any successor entity or entities, including, if
applicable, the staff of the Commission. 
 “Common Stock” means the common stock, par value $0.001 per share, of the
Company. 
 “Closing Date” shall have the meaning set forth in the Purchase Agreement. 

“Effectiveness Deadline” means: (a) with respect to the Initial Registration Statement required to be filed hereunder,
the 120th day following the Closing Date (or the 150th day following the Closing Date in the event the Initial Registration Statement is
reviewed by the Commission), (b) with respect to any additional Registration Statements which may be required pursuant to Section 2, the 120th day following the date on which the Company
first knows, or reasonably should have known, that such additional Registration Statement is required under such Section (or the 150th day following such date in the event such additional
Registration Statement is reviewed by the Commission). If the Effectiveness Deadline falls on a Saturday, Sunday or other date that the Commission is closed for business, the Effectiveness Deadline shall be extended to the next day on which the
Commission is open for business. 
 “Effectiveness Period” shall have the meaning set forth in Section 2(a). 

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Filing Date” means: (a) with respect to the Initial Registration Statement, the 45th calendar day following the Closing Date, and (b) with respect to any additional Registration Statements that may be required pursuant to Section 2 hereof, the 45th day following the date on which the Company first knows, or reasonably should have known, that such additional Registration Statement is required under such Section. 

“Holder” or “Holders” means the holder or holders, as the case may be, from time to time of Registrable
Securities. 
 “Initial Registration Statement” shall mean the initial Registration Statement required to be filed to cover
the resale by the Holders of the Registrable Securities pursuant to Section 2(a). 
 “Person” means an individual or
corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or
partial proceeding, such as a deposition), whether commenced or threatened. 
 “Prospectus” means the prospectus included
in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A or Rule 430B promulgated by
the Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other
amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

“Registrable Securities” means (i) the Shares issued pursuant to the Purchase Agreement and (ii) any other shares
of Common Stock issued as (or issuable upon conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, in exchange for or in replacement of the Shares; provided,
however, that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so
long as (a) a Registration Statement with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable Securities have been disposed of by the Holder in accordance with
such effective Registration Statement, (b) such Registrable Securities have been previously sold or transferred in accordance with Rule 144, or (c) such securities become eligible for resale without volume or
manner-of-sale restrictions and without current public information requirements pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed,
delivered and acceptable to the Company’s transfer agent and the affected Holders (assuming that such securities and any securities issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were
issued or are issuable, were at no time held by any Affiliate of the Company), as reasonably determined by the Company, upon the advice of counsel to the Company. 

  
 2 

 “Registration Statement” means each of the following: (i) an initial
registration statement which is required to register the resale of the Registrable Securities, and (ii) each additional registration statement, if any, contemplated by Section 2, and including, in each case, the
Prospectus, amendments and supplements to each such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement. 
 “Rule 144” means Rule 144 promulgated by the
Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

“Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

“Rule 424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time
to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 

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

“Shares” shall have the meaning set forth in the Purchase Agreement. 

“Trading Day” means any day on which the Common Stock is traded on the Nasdaq Global Market, or, if the Nasdaq Global Market
is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded. 

“Transaction Documents” shall have the meaning set forth in the Purchase Agreement. 

“Underwritten Offering” means a registration in which Registrable Securities are sold to an underwriter for reoffering to the
public. 
 2. Registration. 

(a) On or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all
of the Registrable Securities that are not then registered on an existing and effective Registration Statement for an offering to be made on a continuous basis pursuant to Rule 415. The Registration Statement filed hereunder shall be on Form S-3 (except if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall be on another
appropriate form in accordance herewith) and shall contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration 

  
 3 

 
Statement) the “Plan of Distribution” in substantially the form attached hereto as Annex A (which may be modified to respond to comments, if any, provided by the Commission). The
Company shall use its commercially reasonable efforts to cause a Registration Statement filed under this Agreement to be declared effective under the Securities Act promptly but, in any event, no later than the Effectiveness Deadline for such
Registration Statement, and shall, subject to Section 7(d) hereof, use its commercially reasonable efforts to keep the Registration Statement continuously effective under the Securities Act until the earlier of (i) the date that is three
years after the Closing Date and (ii) the date on which all securities under such Registration Statement have ceased to be Registrable Securities (the “Effectiveness Period”). Notwithstanding the foregoing, the Company shall be
entitled to suspend the effectiveness of the Registration Statement at any time prior to the expiration of the Effectiveness Period for up to an aggregate of 30 consecutive Trading Days or an aggregate of 60 Trading Days (which need not be
consecutive) in any given 360-day period. It is agreed and understood that the Company shall, from time to time, be obligated to file one or more additional Registration Statements to cover any Registrable
Securities which are not registered for resale pursuant to a pre-existing Registration Statement. 

(b) Notwithstanding anything contained herein to the contrary, in the event that the Commission limits the amount of Registrable Securities
that may be included and sold by Holders in any Registration Statement, including the Initial Registration Statement, pursuant to Rule 415 or any other basis, the Company may reduce the number of Registrable Securities included in such Registration
Statement on behalf of the Holders in whole or in part (in case of an exclusion as to a portion of such Registrable Securities, such portion shall be allocated pro rata among such Holders in proportion to the respective numbers of Registrable
Securities represented by Shares requested to be registered by each such Holder over the total amount of Registrable Securities represented by Shares) (such Registrable Securities, the “Reduction Securities”). In such event the
Company shall give the Holders prompt notice of the number of such Reduction Securities excluded and the Company will not be liable for any damages under this Agreement in connection with the exclusion of such Reduction Securities. The Company shall
use its commercially reasonable efforts at the first opportunity that is permitted by the Commission to register for resale the Reduction Securities. Such new Registration Statement shall be on Form S-3, or
any successor short form registration statement (except if the Company is not then eligible to register for resale the Reduction Securities on Form S-3, in which case such registration shall be on another
appropriate form for such purpose) and shall contain (except if otherwise required pursuant to written comments received from the Commission upon a review of such Registration Statement) the “Plan of Distribution” in substantially the form
attached hereto as Annex A (which may be modified to respond to comments, if any, provided by the Commission). The Company shall use its commercially reasonable efforts to cause each such Registration Statement to be declared effective under
the Securities Act as soon as possible but, in any event, no later than the Effectiveness Deadline, and shall use its commercially reasonable efforts to keep such Registration Statement continuously effective under the Securities Act during the
entire Effectiveness Period, subject to Section 7(d) hereof. Notwithstanding the foregoing, the Company shall be entitled to suspend the effectiveness of such Registration Statement at any time prior to the expiration of the Effectiveness
Period for an aggregate of no more than 30 consecutive Trading Days or an aggregate of 60 Trading Days (which need not be consecutive) in any given 360-day period. 

  
 4 

 (c) If: (i) the Initial Registration Statement is not filed with the Commission on or prior
to the Filing Date, (ii) the Initial Registration Statement is not declared effective by the Commission (or otherwise does not become effective) on or prior to the Effectiveness Deadline or (iii) after the date it is declared effective by
the Commission and except as provided in Section 3(i), (A) such Registration Statement ceases for any reason (including without limitation by reason of a stop order, or the Company’s failure to update the
Registration Statement), to remain continuously effective as to all Registrable Securities included in such Registration Statement or (B) the Holders are not permitted to utilize the Prospectus therein to resell such Registrable Securities for
any reason (other than due to a change in the “Plan of Distribution” or the inaccuracy of any information regarding the Holders) in each case for more than an aggregate of 30 consecutive Trading Days or 60 Trading Days (which need not be
consecutive) in any given 360-day period (other than as a result of a breach of this Agreement by such Holder), or (iv) the Company fails to satisfy the current public information requirement pursuant to
Rule 144(c)(1) as a result of which the Holders who are not affiliates are unable to sell Registrable Securities without restriction under Rule 144 (or any successor thereto), (any such failure or breach in clauses (i) through
(iv) above being referred to as an “Event,” and, for purposes of clauses (i), (ii) or (iv), the date on which such Event occurs, or for purposes of clause (iii), the date on which such 30 or 60 Trading Day period is
exceeded, being referred to as an “Event Date”), then in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the
applicable Event shall not have been cured by such date) until the earlier of (1) the applicable Event is cured or (2) the Registrable Securities are eligible for resale pursuant to Rule 144 without manner of sale or volume
restrictions or the current public information requirement, the Company shall pay to each Holder an amount in cash, as liquidated damages and not as a penalty (“Liquidated Damages”), equal to 1% of the aggregate purchase price paid
by such Holder pursuant to the Purchase Agreement for any unregistered Registrable Securities then held by such Holder. The parties agree that (1) notwithstanding anything to the contrary herein or in the Purchase Agreement, no Liquidated
Damages shall be payable with respect to any period after the expiration of the Effectiveness Period (except in respect of an Event described in Section 2(c)(iv) herein), (it being understood that this sentence shall not
relieve the Company of any Liquidated Damages accruing prior to the Effectiveness Deadline) and in no event shall, the aggregate amount of Liquidated Damages (excluding Liquidated Damages payable in respect of an Event described in
Section 2(c)(iv) herein) payable to a Holder exceed, in the aggregate, 5% of the aggregate purchase price paid by such Holder pursuant to the Purchase Agreement) and (2) in no event shall the Company be liable in
any 30 day period for Liquidated Damages under this Agreement in excess of 1% of the aggregate purchase price paid by the Holders pursuant to the Purchase Agreement. The Liquidated Damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event, except in the case of the first Event Date. The Company shall not be liable for Liquidated Damages under this Agreement as to any
Registrable Securities which are not permitted by the Commission to be included in a Registration Statement. In such case, the Liquidated Damages shall be calculated to only apply to the percentage of Registrable Securities which are permitted
to be included in such Registration Statement. The Effectiveness Deadline for a Registration Statement shall be extended without default or Liquidated Damages hereunder in the event that the Company’s failure to obtain the effectiveness of the
Registration Statement on a timely basis results from the failure of a Purchaser to timely provide the Company with information requested by the Company and necessary to complete the Registration Statement in accordance with the requirements of
the Securities Act (in which case the Effectiveness Deadline would be extended with respect to Registrable Securities held by such Purchaser). 

  
 5 

 3. Registration Procedures. 

In connection with the Company’s registration obligations hereunder, the Company shall: 

(a) Not less than three Trading Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement
thereto, furnish to the Holders copies of all such documents proposed to be filed (other than those incorporated by reference). Notwithstanding the foregoing, the Company shall not be required to furnish to the Holders any prospectus supplement
being prepared and filed solely to name new or additional selling stockholders unless such Holders are named in such prospectus supplement. In addition, in the event that any Registration Statement is on Form
S-1 (or other form which does not permit incorporation by reference), the Company shall not be required to furnish to the Holders any prospectus supplement containing information included in a report or proxy
statement filed under the Exchange Act that would be incorporated by reference in such Registration Statement if such Registration Statement were on Form S-3 (or other form which permits incorporation by
reference). The Company shall duly incorporate any comments made by Holders acting reasonably and received by the Company not later than two Trading Days prior to the filing of the Registration Statement, but shall not be required to accept any such
comments to which it reasonably objects. 
 (b) (i) Prepare and file with the Commission such amendments, including post-effective
amendments, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period and
prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any
required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to each Registration Statement or any
amendment thereto and, as promptly as reasonably possible provide the Holders true and complete copies of all correspondence from and to the Commission relating to such Registration Statement that pertains to the Holders as selling stockholders but
not any comments that would result in the disclosure to the Holders of material and non-public information concerning the Company; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the Registration Statements and the disposition of all Registrable Securities covered by each Registration Statement. 

(c) Notify the Holders as promptly as reasonably possible (and, in the case of (i)(A) below, not less than three Trading Days prior to such
filing) and (if requested by any such Person) confirm such notice in writing no later than one Trading Day following the day: (i)(A) when a Prospectus or any prospectus supplement (but only to the extent notice is required under Section 3(a)
above) or post-effective amendment to a Registration Statement is proposed to be 

  
 6 

 
filed; (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever the Commission comments in writing on such
Registration Statement (in which case the Company shall provide true and complete copies thereof and all written responses thereto to each of the Holders that pertain to the Holders as a selling stockholder or to the Plan of Distribution, but not
information which the Company believes would constitute material and non-public information); and (C) with respect to each Registration Statement or any post-effective amendment, when the same has been
declared effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional information that pertains to the Holders as
selling stockholders or the Plan of Distribution; (iii) of the issuance by the Commission of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any
Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the
initiation or threatening of any Proceeding for such purpose; (v) of the occurrence of any event or passage of time that makes the financial statements included or incorporated by reference in a Registration Statement ineligible for inclusion
or incorporation by reference therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to
such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and (vi) of the occurrence or existence of any pending corporate development with respect to
the Company that the Company believes may be material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability of a Registration Statement or Prospectus; provided, that
any and all of such information shall remain confidential to each Holder until such information otherwise becomes public, unless disclosure by a Holder is required by law; provided, further, that notwithstanding each Holder’s
agreement to keep such information confidential, each such Holder makes no acknowledgement that any such information is material, non-public information. 

(d) Use its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the
effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment. 

(e) If requested by a Holder, furnish to each Holder, without charge, at least one conformed copy of each Registration Statement and each
amendment thereto and all exhibits to the extent reasonably requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission; provided, that the
Company shall have no obligation to provide any document pursuant to this clause that is available on the EDGAR system. 

  
 7 

 (f) If requested by a Holder, promptly deliver to each Holder, without charge, as many copies of
each Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request. Subject to Section 7(d) hereof, the Company hereby consents to the use of such Prospectus and
each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto. 

(g) Prior to any public offering of Registrable Securities, use its commercially reasonable efforts to register or qualify or cooperate with
the selling Holders in connection with the registration or qualification (or exemption from such registration or qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of those jurisdictions within the
United States as any Holder reasonably requests in writing to keep each such registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or advisable to enable
the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statements; provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so
qualified or subject the Company to any material tax in any such jurisdiction where it is not then so subject. 
 (h) Cooperate with the
Holders to facilitate the timely preparation and delivery of certificates or book-entry statements representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statements, which certificates or book-entry
statements shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may request. 

(i) Upon the occurrence of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or
amendment, including a post-effective amendment, to the affected Registration Statements or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document
so that, as thereafter delivered, no Registration Statement nor any Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading. 
 (j) The Company may require each selling Holder to furnish to the Company
a certified statement as to the number of shares of Common Stock beneficially owned by such Holder and any Affiliate thereof, the natural persons thereof that have voting and dispositive control over the shares and any other information with respect
to such Holder as the Commission requests. 
 4. Holder’s Obligations. Each Holder agrees, by acquisition of the Registrable
Securities, that no Holder shall be entitled to sell any of such Registrable Securities pursuant to a Registration Statement or to receive a Prospectus relating thereto, unless such Holder has furnished the Company with all material information
required to be set forth in the Purchaser Questionnaire and Selling Stockholder Questionnaire pursuant to the Purchase Agreement. Any sale of any Registrable Securities by any Holder shall constitute a representation and warranty by such Holder that
the information regarding such Holder is as set forth in the Prospectus delivered by such Holder in connection with such disposition, and that such Prospectus does not as of the 

  
 8 

 
time of such sale contain any untrue statement of a material fact regarding such Holder or omit to state any material fact regarding such Holder necessary to make the statements in such
Prospectus, in the light of the circumstances under which they were made, not misleading, solely to the extent such facts are based upon information regarding such Holder furnished in writing to the Company by such Holder for use in such Prospectus.

 5. Registration Expenses. All fees and expenses incident to the Company’s performance of or compliance with its obligations
under this Agreement (excluding any underwriting discounts and selling commissions) shall be borne by the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement. The fees and expenses referred to in the
foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the principal stock exchange on which the
Common Stock is then listed for trading, and (B) in compliance with applicable state securities or Blue Sky laws), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of
printing prospectuses if the printing of prospectuses is reasonably requested by the holders of a majority of the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) reasonable
fees and disbursements of counsel for the Company, (v) reasonable fees and disbursements of one counsel to the Holders, in an amount not to exceed $50,000, chosen by the Holders of a majority of the then-outstanding Registrable Securities to be
included in such Registration Statement, (vi) Securities Act liability insurance, if the Company so desires such insurance, and (vii) reasonable fees and expenses of all other Persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement
(including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar commissions of any Holder or, except to the extent provided for in the Transaction Documents, any legal fees or other
costs of the Holders. To the extent that underwriting discounts and selling commissions are incurred in connection with the registration, pursuant to a Registration Statement, of Registrable Securities in an Underwritten Offering hereunder, such
underwriting discounts and selling commissions shall be borne by the Holders of Registrable Securities covered by such Registration Statement, pro rata on the basis of the number of Registrable Securities registered on their behalf in such
Registration Statement and included in such Underwritten Offering. 
 6. Indemnification. 

(a) Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, agents, partners, members, stockholders and employees of each Holder, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, agents, partners, members, stockholders and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs
(including, without 

  
 9 

 
limitation, reasonable costs of preparation and reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of or relating to any untrue or
alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this
purpose), or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in
light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue statements, alleged untrue statements, omissions or alleged omissions are based solely upon information
regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved
Annex A hereto for this purpose) or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has validly notified
such Holder in writing (in accordance with Section 7(i) below) that the Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice (as defined below) or an amended or supplemented Prospectus, but only if and to
the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected. The Company shall notify the Holders promptly of the institution, threat
or assertion of any Proceeding of which the Company is aware in connection with the transactions contemplated by this Agreement. 
 (b)
Indemnification by Holders. Each Holder shall, notwithstanding any termination of this Agreement, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the
Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents, partners, members, stockholders or employees of such controlling Persons, to the fullest extent
permitted by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon: (x) for so long as the Company is not eligible to use Form S-3 under the Securities Act
for a primary offering in reliance on General Instruction I.B.1 of such form the prospectus delivery requirements of the Securities Act apply to sales by such Holder, such Holder’s failure to comply with the prospectus delivery requirements of
the Securities Act or (y) any untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising solely out of or based solely upon any
omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus, or any form of prospectus or supplement thereto, in light of the circumstances under which they were made) not
misleading to the extent, but only to the extent that, (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the
extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement,
such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this 

  
 10 

 
purpose) or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company
has validly notified such Holder in writing (in accordance with Section 7(i) below) that the Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to
the extent that following the receipt of the Advice or the amended or supplemented Prospectus the misstatement or omission giving rise to such Loss would have been corrected. In no event shall the liability of any selling Holder hereunder be greater
in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation. 

(c) Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense
thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give
such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party. 

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such
Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in
which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and
such counsel shall be at the expense of the Indemnifying Party); provided, that the Indemnifying Party shall not be liable for the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties pursuant
to this Section 6(c). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims
that are the subject matter of such Proceeding. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in
connection with defense of such claim and litigation resulting therefrom. 

  
 11 

 All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the
extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the
Indemnifying Party (regardless of whether it is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse
all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder). 

(d) Contribution. If a claim for indemnification under Section 6(a) or 6(b) is unavailable to an Indemnified Party (by
reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault
of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such action,
statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 6(c), any reasonable attorneys’ or other reasonable fees or expenses
incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 6(d) were determined by
pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 6(d), no Holder shall be
required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall
be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
 The indemnity and contribution
agreements contained in this Section 6 are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties and are not in diminution or limitation of the indemnification provisions under the Purchase Agreement.

  
 12 

 7. Miscellaneous. 

(a) Remedies. The parties agree that, in the event of a breach of this Agreement, the parties will, in addition to being entitled to
exercise all rights granted by law and under this Agreement, including recovery of damages, be entitled to specific performance of its rights under this Agreement. The parties agree that monetary damages may not provide adequate compensation for any
losses incurred by reason of a breach of the provisions of this Agreement and hereby further agree that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be
adequate. 
 (b) Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the
Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement. 
 (c)
Subsequent Registration Rights. Until the Initial Registration Statement required hereunder is declared effective by the Commission, the Company shall not enter into any agreement granting any registration rights with respect to any of its
securities to any Person without the written consent of Holders representing no less than a majority of the then outstanding Registrable Securities; provided, that this Section 7(c) shall not prohibit the Company from fulfilling its
obligations under any other registration rights agreements existing as of the date hereof. 
 (d) Discontinued Disposition. Each
Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue disposition of such
Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the “Advice”) by the
Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration
Statement. The Company may provide appropriate stop orders to enforce the provisions of this paragraph. 
 (e) Furnishing of
Information. Each Holder shall furnish in writing to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it, as shall be reasonably
requested by the Company to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request. 

(f) Piggy-Back Registrations. If at any time during the Effectiveness Period, except as contemplated by Section 2(b) hereof,
there is not an effective Registration Statement covering all of the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account
of others (other than an offering pursuant to that certain Fifth Amended and Restated Investor Rights Agreement dated May 13, 2013 among the Company and the investors party thereto) under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in
connection with any acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans, then 

  
 13 

 
the Company shall send to each Holder a written notice of such determination and, if within 15 days after the date of such notice, any such Holder shall so request in writing, the Company shall
include in such registration statement all or any part of such Registrable Securities such Holder requests to be registered; provided, however, that the Company shall not be required to register any Registrable Securities pursuant to
this Section 7(f) that are eligible for resale pursuant to Rule 144 promulgated under the Securities Act without volume or manner of sale limitations or that are the subject of a then effective Registration Statement; provided,
further, however, if there is not an effective Registration Statement covering all of the Registrable Securities during the Effectiveness Period, the Company may file a registration statement with the Commission to register equity
securities of the Company to be sold on a primary basis, provided that the Company does not sell any such shares until there is an effective Registration Statement covering all of the Registrable Securities. The Company shall have the right to
terminate or withdraw any registration initiated by it under this Section 7(f) prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. 

(g) Amendments and Waivers. No provision of this Agreement may be waived or amended with respect to the Company and a Purchaser except
with the written consent of the Company and such Purchaser. The Company shall provide prior notice to all Holders of any proposed waiver or amendment. No waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any
manner impair the exercise of any such right. 
 (h) Termination of Registration Rights. For the avoidance of doubt, it is expressly
agreed and understood that (i) in the event that there are no Registrable Securities outstanding as of a Filing Date, then the Company shall have no obligation to file, cause to be declared effective or to keep effective any Registration
Statement hereunder (including any Registration Statement previously filed pursuant to this Agreement) and (ii) all registration rights granted to the Holders hereunder (including the rights set forth in Sections 7(c) and 7(f)),
shall terminate in their entirety effective on the first date on which there shall cease to be any Registrable Securities outstanding. If not previously terminated pursuant to the foregoing sentence, it is expressly agreed and understood that all
registration rights granted to the Holder pursuant to this Agreement shall terminate as to the Holder on the earlier of (a) such time following the date that is five (5) years following the date of this Agreement that the Holders own in
the aggregate less than 25% of the number of Registrable Securities that the Holders owned in the aggregate as of the date hereof (as adjusted for stock splits, combinations, dividends, recapitalizations and the like) and (b) the date that is
ten (10) years following the date of this Agreement. 
 (i) Notices. All notices, requests, consents and other communications
hereunder shall be in writing, shall be sent by confirmed electronic mail, or mailed by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, and shall be deemed given when so sent in the
case of electronic mail transmission, or when so received in the case of mail or courier, and addressed as follows: 

  
 14 

 if to the Company, to: 

Tokai Pharmaceuticals, Inc. 
 255
State Street, 6th Floor 
 Boston, MA 02109 

Attention: Chief Executive Officer 

Email: jmorrison@tokaipharma.com 

with a copy (which shall not constitute notice) to: 

Wilmer Cutler Pickering Hale and Dorr LLP 

60 State Street 
 Boston, MA 02109

 Attention: Stuart M. Falber, Esq. 

Attention: Hal J. Leibowitz, Esq. 

Otic Pharma, Ltd. 
 Gregory J.
Flesher 
 Chief Executive Officer 

19900 MacArthur Blvd., Suite 550 

Irvine, CA 92612 
 Gibson,
Dunn & Crutcher, LLP 
 555 Mission Street, Suite 3000 

San Francisco, CA 94105 

Attention: Ryan A. Murr 
  

			
	 If to a Purchaser:
	  	 To the address set forth under such Purchaser’s name on the signature pages
hereto

		
	 If to any other

Person who is then
 the
registered Holder:
	  	 To the address of such Holder as it appears in the stock transfer books of the
Company

 or such other address as may be designated in writing hereafter, in the same manner, by such Person. 

(j) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of
each of the parties and shall inure to the benefit of each Holder. 

  
 15 

 (k) Execution and Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement and shall become effective when counterparts have been signed by each party and delivered to
the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf”
format data file, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile or “.pdf” signature were the
original thereof. 
 (l) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or
agents) shall be commenced exclusively in the state and federal courts sitting in New York, New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City and County of New York for
the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and
agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding. Each party
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such
party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any other manner permitted by law. 
 (m) Cumulative Remedies. The remedies provided herein are cumulative and not
exclusive of any remedies provided by law. 
 (n) Severability. If any term, provision, covenant or restriction of this Agreement is
held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their reasonable best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid,
illegal, void or unenforceable. 
 (o) Use of Terms. The parties agree and acknowledge that when, in this Agreement, the Company is
required to use its reasonable best efforts to perform any covenant under this Agreement, such requirement shall not obligate the Company, in the reasonable judgment of the disinterested members of its Board of Directors, to perform any act that
will have a material adverse effect on the Company. 

  
 16 

 (p) Headings. The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof. 
 (q) Independent Nature of Purchasers’ Obligations and Rights. The
obligations of each Purchaser hereunder is several and not joint with the obligations of any other Purchaser hereunder, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser hereunder. The
decision by each Purchaser to purchase Shares pursuant to the Transaction Documents has been made independently of any other Purchaser. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by
any Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert with
respect to such obligations or the transactions contemplated by this Agreement. Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its investment hereunder and that no Purchaser will
be acting as agent of such Purchaser in connection with monitoring its investment in the Shares or enforcing its rights under the Transaction Documents. Each Purchaser shall be entitled to protect and enforce its rights, including without limitation
the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. 

[signature pages follow] 

  
 17 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date
first written above. 
  

			
	TOKAI PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Gregory J. Flesher

	Name: Gregory J. Flesher
	Title: Chief Executive Officer

 Signature Pages to Registration Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date
first written above. 
  

			
	PURCHASERS:
	Peregrine Ventures Management Ltd.
		
	By:	 	 /s/ Eyal Lifschitz

	Name: Eyal Lifschitz
	Title: General Partner

 Signature Pages to Registration Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date
first written above. 
  

	
	 PURCHASERS:

	
	 Pontifax (Israel) III L.P.

	
	 By: /s/ Tomer
Kariv                                        
    

	 Name: Tomer Kariv

	 Title: CEO

 Signature Pages to Registration Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date
first written above. 
  

	
	PURCHASERS:
	
	Pontifax (Cayman) III L.P.
	
	By: /s/ Tomer
Kariv                                        
    
	Name: Tomer Kariv
	Title: CEO

 Signature Pages to Registration Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date
first written above. 
  

	
	PURCHASERS:
	
	 /s/ Gregory J. Flesher

	Gregory J. Flesher

 Signature Pages to Registration Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date
first written above. 
  

	
	PURCHASERS:
	
	 /s/ Catherine C. Turkel

	Catherine C. Turkel

 Signature Pages to Registration Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date
first written above. 
  

	
	PURCHASERS:
	
	 /s/ Christine G. Ocampo

	Christine G. Ocampo

 Signature Pages to Registration Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date
first written above. 
  

	
	PURCHASERS:
	
	 /s/ Mai Do Sirimanne

	Mai Do Sirimanne

 Signature Pages to Registration Rights Agreement 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date
first written above. 
  

	
	PURCHASERS:
	
	 /s/ Michael P. Cruse

	Michael P. Cruse

 Signature Pages to Registration Rights Agreement 

 ANNEX A 

PLAN OF DISTRIBUTION 
 The
selling stockholders and any of their pledgees, donees, transferees, assignees or other successors-in-interest may, from time to time, sell, transfer or otherwise
dispose of any or all of their shares of common stock or interests in shares of common stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These dispositions may be at fixed prices, at
prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices. The selling stockholders may use one or more of the following methods when
disposing of the shares or interests therein: 
  

	 	•	 	ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; 

  

	 	•	 	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction; 

 

	 	•	 	through brokers, dealers or underwriters that may act solely as agents; 

  

	 	•	 	purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

  

	 	•	 	an exchange distribution in accordance with the rules of the applicable exchange; 

  

	 	•	 	privately negotiated transactions; 

  

	 	•	 	through the writing or settlement of options or other hedging transactions entered into after the effective date of the registration statement of which this prospectus is a part, whether through an options exchange or
otherwise; 

  

	 	•	 	broker-dealers may agree with the selling stockholders to sell a specified number of such shares at a stipulated price per share; 

  

	 	•	 	a combination of any such methods of disposition; and 

  

	 	•	 	any other method permitted pursuant to applicable law. 

 The selling stockholders may also sell
shares under Rule 144 under the Securities Act of 1933, as amended, or Securities Act, if available, or Section 4(a)(1) under the Securities Act, rather than under this prospectus. 

Broker-dealers engaged by the selling stockholders may arrange for other broker-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the selling stockholders (or, if any broker-dealer acts as agent for the purchaser of shares, from the purchaser) in amounts to be negotiated. The selling stockholders do not expect these commissions and discounts to
exceed what is customary in the types of transactions involved. 

 The selling stockholders may, from time to time, pledge or grant a security interest in some or
all of the shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell shares of common stock from time to time under this prospectus, or under a
supplement or amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders
under this prospectus. 
 Upon being notified in writing by a selling stockholder that any particular offer of shares of common stock is
made, including that any material arrangement has been entered into with a broker-dealer for the sale of common stock through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, we
will file a supplement to this prospectus, if required, pursuant to Rule 424(b) under the Securities Act, disclosing (i) the name of each such selling stockholder and of the participating broker-dealer(s), (ii) the number of shares involved,
(iii) the price at which such shares of common stock were sold, (iv) the commissions paid or discounts or concessions allowed to such broker-dealer(s), where applicable, (v) that such broker-dealer(s) did not conduct any investigation
to verify the information set out or incorporated by reference in this prospectus, and (vi) other facts material to the transaction. In addition, upon being notified in writing by a selling stockholder that a donee or pledge intends to sell
more than 500 shares of common stock, we will file a supplement to this prospectus if then required in accordance with applicable securities law. 

The selling stockholders also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other
successors in interest will be the selling beneficial owners for purposes of this prospectus. 
 In connection with the sale of the shares
of common stock or interests in shares of common stock, the selling stockholders may enter into hedging transactions after the effective date of the registration statement of which this prospectus is a part with broker-dealers or other financial
institutions, which may in turn engage in short sales of the common stock in the course of hedging the positions they assume. The selling stockholders may also sell shares of common stock short after the effective date of the registration statement
of which this prospectus is a part and deliver these securities to close out their short positions, or loan or pledge the common stock to broker-dealers that in turn may sell these securities. The selling stockholders may also enter into option or
other transactions after the effective date of the registration statement of which this prospectus is a part with broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such
broker-dealer or other financial institution of shares offered by this prospectus, which shares such broker-dealer or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction). 

The selling stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act. The maximum commission or discount to be received by any member of the Financial Industry Regulatory Authority (FINRA) or independent broker-dealer will not be greater than 8% of the initial gross
proceeds from the sale of any security being sold. 

 We have advised the selling stockholders that they are required to comply with Regulation M
promulgated under the Securities Exchange Act of 1934, as amended, during such time as they may be engaged in a distribution of the shares. The foregoing may affect the marketability of the common stock. 

The aggregate proceeds to the selling stockholders from the sale of the common stock offered by them will be the purchase price of the common
stock less discounts or commissions, if any. Each of the selling stockholders reserves the right to accept and, together with their agents from time to time, to reject, in whole or in part, any proposed purchase of common stock to be made directly
or through agents. We will not receive any of the proceeds from this offering. 
 We are required to pay all fees and expenses incident to
the registration of the shares. We have agreed to indemnify the selling stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act or otherwise. 

We have agreed with the selling stockholders to keep the registration statement of which this prospectus constitutes a part effective until
the earlier of (a) such time as all of the shares covered by this prospectus have been disposed of pursuant to and in accordance with the registration statement, (b) the date on which the shares of common stock covered by this prospectus
may be sold or transferred by non-affiliates without any volume limitations or pursuant to Rule 144 of the Securities Act or (c) date that is three years after the Closing Date.

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