Document:

ex0401

  EXHIBIT 4.1
  

	CONTRACT OF EMPLOYMENT
	 
	between
	 
	THE ROYAL BANK OF SCOTLAND plc
	 
	and
	 
	SIR FREDERICK ANDERSON
	GOODWIN 
	 
	 
	 
	 
	2004
	 
	 
	 
	 
	The Royal Bank of Scotland plc
	42 St Andrew Square
	Edinburgh EH2 2YE 
	 

	CONTRACT OF EMPLOYMENT
	 
	between 
	 
	THE ROYAL BANK OF SCOTLAND plc, a Company incorporated
        in Scotland (No 90312) and having its Registered Office at 36 St Andrew Square, Edinburgh EH2
    2YB (hereinafter called "the Company”) of the one part 
	 
	and
	 
	SIR FREDERICK ANDERSON       GOODWIN,
        residing at Rhicullen, 10       Oswald Road Edinburgh EH9 2HF       (hereinafter
        called "the Executive") of the
      other part
	 
	

WHEREAS:

	
A.      		
The Royal Bank of Scotland Group plc (“RBSG”), the Company's
holding company, wishes to appoint the Executive as a director and as its Group
Chief Executive;	
	 
	
B.      		
RBSG, the Company and the Executive have agreed that,
to enable the Executive to fulfil his role as Group Chief Executive of RBSG,
he shall be employed by the Company with the principal duty of discharging such
role under  the directions of the Board of Directors of RBSG (“the Board”).	

NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:-

	
FIRST
		 
		
Position
	
	 	 	 
	 	 	RBSG wishes to appoint the Executive as a director and as
      its Group Chief Executive, the Company agrees to employ the Executive
      and the Executive agrees to accept such appointment, to fulfil
    the role of Group Chief 

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	 	 	Executive of RBSG and to engage in such employment
    with the Company upon the terms and conditions set out in this Agreement. 
	 	 	 
	
SECOND
		 
		
Commencement, Duration & Notice
	
		 	 	 
		 	(a)	This Agreement shall, notwithstanding the date or
      dates hereof, be deemed to have commenced on 1st August 1998 ("the
      Commencement Date") and shall, subject to the provisions of sub-clause (b)
      of this Clause SECOND, continue subject as hereinafter mentioned
    unless and until terminated as follows:- 

	 	 	
(i)      		
by the Company giving to the Executive twelve months prior written notice; or	
	 
	 	 	
(ii)      		
by the Executive giving to the Company six months prior written notice.	
	 
	 	
(b)      		
Notwithstanding the provisions of sub-clause (a) of this Clause SECOND this Agreement shall automatically terminate on the Executive reaching sixty
years of age.	
	 

	
THIRD
		 
		
Continuous Employment
	
		 	 
		 	No period of service with a previous employer shall count
      as part of the Executive's continuous employment and the date
      of commencement of continuous service with the Company will, notwithstanding
    the date hereof, be treated for all purposes as 1st August 1998. 
	 	 	 
	
FOURTH
		 
		
Duties
	

	 	
(a)      		
The Executive shall devote the whole of his time, attention and skill to the duties of his office as Group Chief Executive of RBSG and shall faithfully, efficiently, competently and diligently perform such duties and
exercise such powers as	
	 

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	 	 	may from time to time be assigned to or vested in him and shall obey
      all reasonable and lawful directions given by or under the authority of the Board and use his best
      endeavours to promote and extend the business of the Royal Bank Group (as hereinafter defined)
    to protect and further its interests and reputation. 
	 	 	 
	 	
(b)      		
In addition to discharging his duties as Group Chief Executive of RBSG, the Executive may be required, in pursuance of such duties, to perform services for the benefit of any subsidiary or Associated Company of RBSG,
including the Company, and to hold such offices in any subsidiary or Associated Company as the Board may from time to time reasonably require, but without further remuneration (except as otherwise agreed in writing between the parties hereto). The
Executive may, without prejudice to his rights hereunder, be required from time to time, without any further consent, to be seconded to the employment of any company within the Royal Bank Group.	
	 
	 	
(c)      		
The duties of the Executive as an officer of RBSG or, as the case may be, of any subsidiary or Associated Company of RBSG shall be subject to the Articles of Association of the relevant company for the time being in force
and shall be separate from and in addition to his duties hereunder. If, during the continuance of this Agreement, the Executive ceases to be in office as a Director of RBSG and, if relevant, the Company (otherwise than by resignation) this Agreement
shall nevertheless remain in force as if the Executive's employment hereunder is that of executive manager of the Company.	
	 

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FIFTH
		 
		
Place of Employment
		 	 
		 	Whilst the Executive will normally work in or
      from the Company's principal place of business at St Andrew Square,
      Edinburgh, he may be required to travel elsewhere in the United
    Kingdom or abroad in the performance of his duties. 
	 	 	 
	
SIXTH
		 
		
Hours of Work
	
		 	 
		 	The Executive's normal hours of work will be from
      9.00 a.m. to 5.00 p.m. (Monday to Friday) inclusive of one hour
      for lunch daily, but the Executive is expected and may be requested
      to work reasonable overtime when necessary for the performance
      of his duties without additional remuneration. The
      Executive agrees that the maximum working week set out in Regulation
      4 of the Working Time Regulations 1998 will not apply. The Executive
      agrees to give the Company three months’ written notice should
      the Executive wish Regulation 4 of the Working Time Regulations
    1998 to apply. 
		 	 
	
SEVENTH
		 
		
Other Interests
	
		 	 
		 	The Executive shall not, during the term of this Agreement
      (except with the Board's prior consent in writing, which consent
      shall not be unreasonably withheld) be directly or indirectly
      interested in any other business save through holding or being
      interested in investments (quoted or unquoted) not representing
      more than two per cent of the issued equity capital or any other class
    of share or debenture capital of any one company. 
		 	 
	
EIGHTH
		 
		
Dealing in Investments
	
		 	 	 
	

		 
		
(a) 	The Executive will be subject to the Company's Staff
    Dealing Rules which require prior
	

		 
		 
	

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	 	 	permission to be obtained before dealing in most types of securities
      transactions and for requests and authorisations to deal to be confirmed in writing on the appropriate
      Company form. The Company also operates a closed period during which the Executive will not be
      permitted to deal in RBSG shares. Failure to abide by these rules will constitute serious misconduct
    for the purposes of any disciplinary action. 
	 	 	 
	 	
(b)      		
Details of the Company's Staff Dealing Rules are contained in the Conduct of Accounts Manual.	
	 

	
NINTH
		 
		
Confidentiality
	
		 	 
		 	The Executive shall not (except as required in the proper performance
      of his duties hereunder or with proper authority) at any time
      hereafter directly or indirectly divulge or communicate to any
      person or make use of any of the trade secrets, know-how, business
      information methods, lists or other confidential information of
      the Royal Bank Group or of its customers which he may have received
      or obtained while in the service of the Company or any subsidiary
      or Associated Company. This restriction shall continue to apply
      after the termination of the Executive's employment without limit
      in time but shall cease to apply to information which shall come
      into the public domain (other than in breach of this Clause). The
      Executive shall use his best endeavours to prevent the publication
      or disclosure of any of the trade secrets or other confidential
      information of the Royal Bank Group whether relating to its trade
      dealings, financial affairs or otherwise which he may have received
      or obtained or may hereafter receive or obtain while in the service
    of the Company or any Associated Company. 
		 	 

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	TENTH	 	RBSelect
	 	 	 	 
	 	 	
(a)      		
The Company operates a flexible compensation and benefits package called RBSelect. The Salary Element forms part of the Executive’s Value Account
under RBSelect and is used to calculate certain benefits such as Profit Share and any discretionary bonus payment or any other payment directly linked to salary. The Salary
Element would also be used to calculate severance payments including redundancy.	
	 
	 	 	
(b)      		
As of the date of execution of this Agreement the Executive’s Value Account is £926,217, which includes a Salary Element of £900,000 per annum. Full details of RBSelect
are contained in the Company’s guidebook in relation to the scheme.	
	 
	 	 	
(c)      		
The Executive’s Value Account less the cost of any benefits elected through RBSelect will be paid monthly on the 18th day of each month (or on
the last preceding working day where the 18th day falls on a weekend) and shall be at the absolute discretion of the Remuneration Committee subject to review annually with effect from the 1st day of April of each year or any other day approved by
the Remuneration Committee with any adjustments having immediate effect.	
	 
	 	 	
(d)      		
All remuneration payable in cash to the	Executive
under this Agreement shall be credited to a bank account to be maintained by the Executive with the Company
or with another company in the Royal Bank Group. 
	 

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ELEVENTH
		 
		
Expenses
	
		 	 
		 	 The Executive shall, subject where appropriate to the production
      of the relative vouchers, be reimbursed for all out-of-pocket
      expenses properly and reasonably incurred in the performance of
      his duties hereunder, including expenses of entertainment, subsistence
      and travelling. In order to facilitate payment of expenses so
      incurred, the Executive will be supplied with a credit card for
    use solely in this connection. 
		 	 

	
TWELFTH
		 
		
Holidays
	
		 	 
		 	 The Company's holiday year runs from 1st January to 31st
      December in each year during which the Executive shall (in addition
      to Bank and other public holidays) be entitled, without loss of
      remuneration, to 30 working days' holiday in each calendar year
      to be taken at such convenient time or times as the Board shall
      approve. In the event that the Executive has not been employed throughout
      a full calendar year, the Executive's entitlement shall be calculated pro
      rata according to each month
      of employment completed during that calendar year. Unused holiday
      entitlement in respect of any calendar year may be carried forward
      to any subsequent calendar year but must be taken prior to the
      end of February in such subsequent year. The Executive shall be entitled
      to be paid in respect of any holiday entitlement accrued due but
      not taken at the date of termination of this Agreement provided
      that such termination has not occurred under the provisions of
      Clause TWENTY FIRST (a)
    hereof. 
		 	 

	
THIRTEENTH
		 
		
Sickness
	
		 	 	 
		 	 (a) 	Without prejudice to the terms of
            Clause TWENTY
        FIRST hereof, if the Executive shall at
        any time be prevented by illness, injury, accident or other
        incapacity (“the incapacity”) 
	

		 
		 	 

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	 	 	from discharging in full his duties hereunder the Company will continue
      to pay his Salary Element (less any sickness benefit entitlement or Statutory Sick Pay to which
      he may be entitled, whether claimed or not) at the full annual rate for the first 365 days of the
      incapacity. After a period of 365 days incapacity the payment of the Salary Element shall be at
      the Board's sole discretion. Subject to applicable qualifying criteria, the Company’s Long
      Term Disability Scheme (“LTD”) would pay 55% of the Executive’s Salary Element for
      a further period of up to four years of continued incapacity: the Executive would be entitled to
      receive benefits under the Company’s LTD on expiry of the first 365 days of incapacity or
    before. Days of incapacity shall include weekends and statutory holidays. 
	 	 	 
	 	
(b)      		
The Executive shall, if required by the Board, furnish
the Board with evidence satisfactory to it of the incapacity. For the first 7
consecutive days of absence (including weekends and statutory holidays), the
Executive  shall self-certify his incapacity.	
	 
	 	
(c)      		
For the purposes of assessing the entitlement of the Executive to Statutory Sick Pay, the qualifying days will be Monday to Friday both days inclusive.	
	 
	 	
(d)      		
If the Executive is incapable of performing his duties by reason of injuries sustained wholly or partly as a result of actionable negligence, nuisance or breach of any statutory duty on the part of any person other than the
parties hereto, ("the third party") all payments made to the Executive under sub-clause (a) of this Clause THIRTEENTH shall to the extent that	compensation
is recoverable from the third party,
	 

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	 	 	 	 constitute
        loans by the Company to the Executive (notwithstanding that as an interim measure income tax
        may have been deducted from such payments as if they were emoluments of employment) and shall
        be repaid when and to the extent that the Executive recovers compensation for loss of earnings
    from the third party by action or otherwise. 

	 	 	 
	
FOURTEENTH
		 
		
RBS Fund
	
		 	 	 
		 	(a)	 On commencement of his employment the executive
      will be eligible to participate in The Royal Bank of Scotland
      Group Pension Fund ("the RBS Fund") subject to its terms and conditions
      from time to time in force. The Executive will automatically become
      a member of the RBS Fund unless he provides the Company
      with written confirmation that he does not wish to join the RBS
      Fund. The Executive will remain a member of the RBS Fund during his
      period of employment unless he provides written confirmation to
      the Company that he wishes to opt out. A contracting out certificate
    is in force in respect of members of the RBS Fund. 
		 	 	 
		 	(b) 	 Should the Executive wish to transfer any pension
      rights already accrued the RBS Fund is fully approved by the Inland
      Revenue and has power to accept transfer payments. The Company
      operates a voluntary contribution plan under which the Executive
      could augment his pension entitlement within certain limits. Further
    details can be obtained from Staff Pension Services. 
		 	 	 
	
	

		 
		
(c)
		
Under UK pension legislation the Executive’s
pensionable salary is restricted to the general	earnings
capped amount from time to time in
	

		 
		

		 

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	 	 	 force ("the Pension Cap").
      During the Executive’s employment the Company will make appropriate arrangements so that the
      Executive’s pension provision as set out in the following: (i) the remainder of this Clause
      FOURTEENTH; (ii) the letter from the Company to the Executive regarding the Executive’s pension
      entitlement dated 24 March 2003; and (iii) the letter from the Company to the Executive dated 28
      April 2004 which sets out arrangements which intend to fund the Executive’s pension over and
      about the Pensions Cap (“the FURBS Letter”), will be provided notwithstanding the Pension
      Cap. For the avoidance of doubt, the arrangements set out in the FURBS Letter are not intended
      to change in any way entitlements of the Executive and/or his dependents to a pension and other
    benefits (as set out in the said letter of 24 March 2003, this Agreement and otherwise).
	 	 	 
	 	
(d)      		
The following terms are defined for the purposes of paragraphs (i) to (vii) below:	
	 
	 	 	
“Final Pensionable Salary” means the	Executive’s
highest average basic annual salary from the Company (except director’s fees, bonuses, special cash
payments, grants, overtime and allowances and other similar payments) over any 12 consecutive months
in the last 10 years of the Executive’s employment with the Company reckonable for pension. 
	 
	 	 	
“Incapacity” means physical or mental incapacity preventing the Executive from following his normal occupation or seriously impairing his earning capacity. The decision of the trustees of the relevant
arrangement(s) under	which the Executive would be retiring, as to whether
he is suffering from Incapacity, will be final. 
	 

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	 	 	“N” means the number of years between the Executive’s
      20th birthday and
    the date he ceases to be employed by the Company. 
	 	 	 	 
	 	 	“Retained Benefits” means the pension benefits accrued by the
      Executive in respect of periods of employment or self-employment prior to the commencement of his
    employment with the Company. 
	 	 	 	 
	 	 	“Spouse” means the Executive’s legal spouse or, where
      he is not survived by a spouse, someone nominated by the Executive in writing (to the trustees
      of the relevant pension arrangement(s) under which the benefits will be provided to and in respect
      of him) and who was cohabiting with and financially dependent on the Executive at the time of his
      death. The relevant trustees’ decision as to whether a non-spouse should count as the Executive’s
    Spouse will be final. 
	 	 	 	 
	 	 	“State Pension Adjustment” has the meaning given in the RBS
    Fund. 
	 	 	 	 
	 	 	
(i)      		
If the Executive remains in employment with the Company until age 60 his pension will be equal to two thirds of his Final Pensionable Salary less Retained Benefits and less the State Pension Adjustment.	
	 
	 	 	
(ii)      		
If the Executive leaves the Company before reaching age 60 he will be provided with a deferred pension	payable
from age 60 calculated as follows:
	 

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	 	 	(N/60ths x Final Pensionable Salary) less Retained Benefits and less
    the State Pension Adjustment.
	 	 	 
	 	
(iii)      		
If the Executive suffers from Incapacity as a result of which he has been absent from this employment for at least five years and six months and he cannot return to this employment nor can he take up any other employment,
the Executive will be able to retire before age 60 with a pension equal to two thirds of his Final Pensionable Salray less Retained Benefits and less the State Pension Adjustment.	
	 
	 	 	
If the Executive has been absent from this employment as a result of Incapacity for less than five years and six months or for at least five years and six months but is able to take up any other employment he will be able
to retire before age 60 with a pension calculated in the same way as that applying were he to leave employment with the Company before age 60 (as described in paragraph (ii) above).	
	 
	 	
(iv)      		
Should the Executive die whilst employed by the Company:	
	 
	 	 	
(aa) a lump sum will be payable on his death under a discretionary trust. The
lump sum will be equal to four times the annual rate of the Executive’s basic salary (excluding
any commission,	 overtime
or bonuses) from the Company at the time of his death; and
	 

  

    13

 

	 	 	(bb) the Executive’s Spouse will     receive
      a pension equal to one half of     two thirds of his Final Pensionable     Salary
      less Retained Benefits and less     the State Pension Adjustment
      applicable
    to a Spouse’s pension. 
	 	 	 
	 	
(v)      		
Should the Executive die as a deferred pensioner his Spouse will receive a pension equal to half of the Executive’s deferred pension (ignoring the State Pension Adjustment that would have been deducted from his
deferred pension) at the date of death, less the State Pension Adjustment applicable to a Spouse’s pension.	
	 
	 	
(vi)      		
Should the Executive die as a pensioner his Spouse will receive a pension equal to half of his pension (ignoring any State Pension Adjustment that would have been deducted from his pension and ignoring any commutation of
his pension), less the State Pension Adjustment applicable to a Spouse’s pension.	
	 
	 	
(vii)      		
If the Executive is survived by any Eligible Children
(as defined in the RBS Fund)
pensions will be paid to them in the same circumstances and in the same proportions
according to the Rules of the RBS Fund.	
	 

	 	 	 	 
	FIFTEENTH	 	Bonuses 
	 	 	 	 
	 	 	(a) 	Group Executive Annual Bonus Plan 
	 	 	 	 

 

  

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The Executive shall be entitled to participate in the Group Executive Annual Bonus Plan and the Company may, in the absolute discretion of the Board, pay to the Executive a performance related bonus, up to a maximum of 200%
of the Executive’s Salary Element, under the Company’s Group Executive Annual Bonus Plan in respect of his employment hereunder.	
	 
	 	
(b)      		
Medium-term Performance Plan	
	 
	 	 	
The Executive shall be entitled to participate in the Medium-term Performance Plan, and the Company shall decide, in the absolute discretion of the Board, the amount, if any, the Executive shall receive as a performance
related bonus under the Company's Medium-term Performance Plan in respect of any year of his employment hereunder.	
	 

	
SIXTEENTH
		 
		
Profit Sharing
	
		 	 
		 	 The Executive shall be entitled to benefit under and participate
      in RBSG's Profit Sharing Scheme, or such other profit sharing
      arrangements as may be introduced in substitution therefor, the
    terms and conditions of which will be made available to the Executive. 
		 	 
	SEVENTEENTH	 	Medical Insurance 
		 	 
		 	 The Executive shall be eligible to be included in the Company's
      Bulk Protection Group which protection will also cover the Executive's
      spouse. Should the Executive elect to join the scheme, all relevant
      contributions will be made by the Company. Full details of the
    Scheme will be made available to the Executive upon request. 
		 	 
	EIGTEENTH	 	Executive Share Option Scheme 

  

    15

		
      The Executive shall, in the absolute discretion of the
      Board, be eligible to participate in the Company's
      Executive Share Option Scheme details of which from
      time to time will be made available to him by the
      Secretary of the Company.
	

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NINETEENTH
		 
		
House Purchase
	
		 	 
		 	 The Executive shall be entitled to participate in the Company's
      Staff House Purchase Scheme, full details of which will be made
    available to him upon request. 
		 	 
	
TWENTIETH
		 
		
Intellectual Property - Patents & Trademarks
	
		 	 
		 	 In view of the fact that the business of the Royal Bank Group
      comprises inter alia the
      development and exploitation of innovative markets and operations
      and that it is the Executive's responsibility to further the interests
      of the Royal Bank Group in respect thereof, each and every development
      or improvement effected or conceived by the Executive at any time
      whether before or after the date hereof, but after he became an
      employee of the Company, whether capable of being patented or registered
      or not (and whether or not effected or conceived in the course
      of his employment hereunder) in connection with or in any way
      affecting or relating to the business of the Royal Bank Group
      or capable of being used or adapted for use therein or in connection
      therewith shall forthwith be disclosed to the Company and shall belong
      to and be the absolute property of the Company or such member
      of the Royal Bank Group as the Company may nominate for the purpose.
      If and whenever required so to do (whether during or after the
      termination of his employment with the Company) the Executive
      shall, at the Company's expense, apply or join in applying for letters
      patent or other equivalent protection in the United Kingdom or
      any other part of the world for any such material and execute
      and do all instruments and things necessary for vesting the said
      letters patent or other equivalent protection when obtained and
      all right, title and interest to and in the same in the Company
      (or its nominees) absolutely and as sole beneficial owner or in such
      other person as the Company may require. Provided always that
    nothing herein shall prejudice the Executive's 
		 	 

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	 	 	rights under Sections 40 to 43 of the Patents Act 1977 as amended
    or re-enacted from time to time. 
	 	 	 	 
	TWENTY FIRST	 	Termination
	 	 	 	 
	 	 	
(a)      		
The Company shall, notwithstanding the provisions of Clause SECOND hereof, have the right to terminate the Executive's employment forthwith by summary
notice in writing and without compensation in respect of such termination in any of the following events:-	
	 
	 	 	 	
(i)      		
he is by reason of ill-health, injury or accident incapacitated from performing his duties hereunder and shall have been so incapacitated for a total period of not less than 365 days (whether working days or not) in the
preceding twelve months;	
	 
	 	 	 	
(ii)      		
he has committed any serious breach (whether by one or several acts or omissions) or has repeated or continued after written warning any material breach of his obligations hereunder, or has, in the reasonable opinion of the
Board, been guilty of conduct tending to bring himself or the Royal Bank Group into disrepute;	
	 
	 	 	 	
(iii)      		
without prejudice to the terms of the foregoing sub-clause (ii) he has been found guilty of any criminal offence (other than a minor offence under the Road Traffic Acts from time to time in force);	
	 
	 	 	 	
(iv)      		
he has become of unsound mind or lunatic or a patient for the purposes of any statute relevant to mental health or otherwise incapax; or	
	 

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	 	      		 	(v)	he has become insolvent, notour bankrupt or has compounded with or
        granted a trust deed on behalf of his creditors (or their respective equivalents in England or
    in any other jurisdiction). 
	 

	 	
(b)      		
The parties expressly agree that the termination of this Agreement in accordance with and for any reasons specified in this Clause shall be deemed to be for a substantial and sufficient reason of a kind such as to justify
the Executive's dismissal from holding the position which he holds and that it would, in the circumstances, be fair and reasonable for the Company to give notice of termination provided for by this Clause.	
	 
	 	
(c)      		
Without prejudice to the Executive's rights in his capacity as an employee, upon the termination of this Agreement howsoever arising, he shall at any time or from time to time thereafter on the Board's request resign
without claim for compensation from any office held by him in RBSG or in any subsidiary or Associated Company.	
	 
	 	
(d)      		
Upon the termination of his employment hereunder for whatsoever reason, the Executive shall forthwith deliver to the Company all property (including, but not limited to, his company car and credit cards) of the Company then
in his possession or under his control.	
	 

	
TWENTY SECOND
		 
		
Property in Confidential Material
	
	 	 	 
	 	 	All reports, files, notes, accounts, documents or other material
      and all notes and memoranda of any trade secrets or confidential information of the Royal Bank
    Group as shall have been made or received by the Executive during

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	 	 	 the course of his employment (whether heretofore or hereafter)
      are and shall remain the property of the Company or the appropriate member of the Royal Bank Group
      and shall be surrendered by the Executive to someone duly authorised by the Company in that behalf
      upon the termination of this Agreement or at the request of the Company at any time during the
    course of his employment hereunder.
	 	 	 
	
TWENTY THIRD
		 
		
Power of Attorney
	
	 	 	 
	 	 	The Executive hereby irrevocably appoints the Company to be his authorised
      attorney to do all such things and to execute all such documents in his name and on his behalf
      but only in so far as may be necessary to secure that the full benefit and advantage of the rights
      arising under Clauses TWENTIETH, TWENTY
      FIRST (c) and (d) and TWENTY
      SECOND hereof are obtained by the Company (or, where appropriate,
      its nominee or any Associated Company) and a letter signed by any Director or Secretary of the
      Company certifying that anything or any document has been done or executed within the authority
    hereby conferred shall be conclusive evidence of the same. 
	 	 	 
	TWENTY FOURTH	 	Grievance Procedure
	 	 	 
	 	 	If the Executive feels he has a grievance relating directly
      to his employment it should be intimated either verbally or in writing, to the Board for their
      consideration. The Board will then make a finding upon such intimation and notify the Executive
      in writing of its finding and of the action to be taken to redress any justifiable grievance found
      to exist. If the Executive still feels he has such a grievance, he shall be given the opportunity
      of addressing this grievance, either verbally or in writing to the Chairman of the Board whose
      finding on the matter shall, without prejudice to any rights the Executive may have arising from
    such grievance, be final and binding on the Executive. 
	 	 	 
	 	 	 

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	TWENTY FIFTH	 	Disciplinary Procedures 
	 	 	 
	 	 	Without prejudice to the terms of Clause TWENTY  FIRST hereof,
      the Company reserves the right to take disciplinary action in circumstances of misconduct by the
      Executive, a breach by the Executive of his obligations hereunder or unsatisfactory performance
      by the Executive of his duties. No disciplinary action shall be taken without the Executive having
      been made aware of the allegations against him and having a reasonable opportunity to state his
      case. Such action may include, but not be limited to, suspension with or without pay, or dismissal
      without compensation or notice. Any grievance relating directly to disciplinary matters should
      be intimated to the Board pursuant to the provisions of Clause TWENTY
    FOURTH hereof.  
	 	 	 
	
TWENTY SIXTH
		 
		
Definitions
	
	 	 	 
	 	 	In this Agreement unless the context shall otherwise require, the following
    expressions shall bear the following meanings:

	 	
(a)      		
"Associated Company" means any company which from time to time is (i) a company having an ordinary share capital of which not less than 25 per cent is owned directly or indirectly by RBSG or (ii) a holding company of RBSG
or any subsidiary of any such holding company;	
	 
	 	
(b)      		
"the Royal Bank Group" means RBSG and its subsidiary and Associated Companies for the time being; and	
	 
	 	
(c)      		
the expressions "subsidiary" and "holding company" shall bear the same meanings in this	Agreement
as they respectively bear in Section 736 of the Companies Act 1985 (as amended).
	 

21 

	TWENTY SEVENTH	 	Notices
	 	 	 
	 	 	Any notices required to be given hereunder may be given
        by either party by personal delivery or prepaid first class mail addressed or delivered as the
        case may be to the other at (in the case of the Company) its registered office for the time being
        and (in the case of the Executive) his last known usual address and any such notice shall be
        deemed to have been served (in the case of first class mail) at the expiry of 48 hours after
    the same was posted or (in the case of personal delivery) at the time of such delivery. 
	 	 	 
	 TWENTY EIGHTH 	 	 Continuing Provisions 
	 	 	 
	 	  	 The expiration or determination of this Agreement howsoever
        arising shall not operate to affect such of the provisions hereof as in accordance with their
    terms are expressed to operate or have effect thereafter. 
	 	 	 
	 TWENTY NINTH 	 	 Whole Agreement 
	 	 	 
	 	 	The terms and conditions contained herein constitute a written statement
        of the terms of the Executive's employment in compliance with the provisions of the Employment
        Rights Act 1996 (as amended) and comprises the whole agreement relating to the matters contemplated
        herein. Any other agreements between the parties are hereby revoked and replaced by this Agreement
        from the date on which this Agreement is deemed to have commenced, which, save for any alteration
        of salary pursuant to Clause TENTH hereof,
    may only be altered or amended by an agreement in writing, formally executed by the parties hereto.

22  

	THIRTIETH	 	Restrictive Covenant
	 	 	 	 
	 	 	
(a)      		
In this Clause the expression "Termination Date" means the date on which this Agreement shall determine irrespective of the cause or manner (the event of the Executive's death only excluded).	
	 
	 	 	
(b)      		
Considering that the Executive has obtained and is likely to obtain in the course of his employment with the Company knowledge of trade secrets, business information, methods, lists or other confidential information
relating to the Royal Bank Group and also to its customers, therefore, in order to safeguard such confidential information and the goodwill of the Royal Bank Group in addition to the restrictions contained in Clauses NINTH, TWENTIETH and TWENTY SECOND hereof,
the Executive agrees that he will be bound by the following restrictions:-
	 
	 	 	 	
(i)      		
he will not, either in contemplation of the termination of his employment hereunder or during the period of one year from the Termination Date, in conjunction with or on behalf of any firm, company, business entity or other
organisation, canvas or solicit or undertake in the United Kingdom in competition with the Royal Bank Group, the custom or business of any person, firm or company carrying on business in the United Kingdom who at any time during the last eighteen
months of his employment with the Company was a client or customer of the Royal Bank Group in relation to whose requirements he had knowledge of a material kind;	
	 

23

	 	 	
(ii)      		
he will not, either in contemplation of the termination of his employment hereunder or during the period of one year from the Termination Date, on his own account or in conjunction with or on behalf of any person, firm,
company, business entity or other organisation, entice, solicit or endeavour to entice or solicit away from the employment of or other association with RBSG or any subsidiary or Associated Company any person who at any time during the year prior to
the Termination Date is an employee of RBSG or any subsidiary or Associated Company and with whom the Executive has worked or with whom he has had personal contact or dealings;	
	 
	 	 	
(iii)      		
so as not to compete or harm, he will not either in contemplation of the termination of his employment hereunder or during the period of one year from the Termination Date interfere or seek to interfere with the supply to
RBSG or any subsidiary or Associated Company of any goods or services by any supplier and nor will he interfere or seek to interfere with the continuance of such supply or custom or the terms on which such supply or custom has during such period as
aforesaid been made.	
	 
	 	
(c)      		
The restrictions set out in paragraphs (i), (ii) and	(iii)
of sub-clause (b) above shall (without prejudice to their generality)
apply to any action taken by the Executive, whether as agent, representative, principal, employee or
consultant or as a director or other officer of any company
	 

24 

	 	 	or by any associated company controlled by him or any associate of his
    or by any associate of his.
	 	 	 
	 	
(d)      		
While the restrictions aforesaid and in Clauses NINTH, TWENTIETH and
TWENTY SECOND of this Agreement are considered by the Executive to constitute entirely separate and independent restrictions and to be reasonable and necessary in all the
circumstances for the protection of the Royal Bank Group's legitimate interests it is recognised by the parties that restrictions of the nature in question may fail for technical reasons unforeseen and accordingly it is hereby declared and agreed
that if any of such restrictions shall be adjudged to be void as going beyond what is reasonable in all the circumstances for the protection of the interests of the Royal Bank Group's but would be valid if part of the wording thereof were deleted
and/or the periods (if any) thereof reduced and/or area dealt with thereby reduced in scope the said restrictions shall apply with such modifications as may be necessary to make them valid and effective.	
	 

25

	THIRTY FIRST	 	The terms of this Contract shall be
          governed and construed in all respects in accordance with the law of Scotland and the Parties
          hereto agree to submit to the non-exclusive jurisdiction of the Scottish Courts: IN WITNESS
          WHEREOF these presents typewritten on this and the preceding twenty four pages were executed
    in duplicate as follows:-
    

	Signed for and on behalf of the said
        THE ROYAL BANK OF SCOTLAND plc by its Secretary, MILLER
        ROY McLEAN at Edinburgh on 21 December 2004
    before the undernoted witness:-	 	 	 
	 	  /s/ Miller Roy McLean	 
	 	 	
	 
	 	 	MILLER ROY McLEAN	 

	/s/	 	(Witness)	 	
	

    	
	  	  	 
	 Full Name 	 	  	 	 
	 	
	
		
	 Address 	 	  	 	 
	 	
	
		
	 	 	 		
	
	
	
		
	 Occupation 	 	  	 	 
	 	
	
		

	Signed by the said SIR FREDERICK ANDERSON GOODWIN
    at Edinburgh on 21 December 2004 before the undernoted witness:-	 	 	 
	 	  /s/ Sir Frederick Anderson
    Goodwin	 
	 	 	
	 
	 	 	SIR FREDERICK ANDERSON GOODWIN	 

	/s/	 	(Witness)	 	
	

    	
	  	  	 
	 Full Name 	 	  	 	 
	 	
	
		
	 Address 	 	  	 	 
	 	
	
		
	 	 	 		
	
	
	
		
	 Occupationex0403

EXHIBIT 4.3

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT (this “Agreement”), dated as of May 4, 2004, is entered into by and between Citizens Financial Group,
Inc. (“Buyer”) and Charles D. Koch (the “Consultant”) to be effective upon the Effective Time of the Merger
contemplated by the Agreement and Plan of Merger (the “Merger Agreement”) dated as of May 4, 2004 among Charter One Financial, Inc., a Delaware corporation (the
“Company”), Buyer, and Cardinal Acquisition Corp., a Delaware corporation and a wholly owned Subsidiary of Buyer (“Merger Subsidiary”). If the Effective Time does not occur, this Agreement shall be void ab initio and of no further
force and effect. Capitalized terms used but not defined herein shall have the meaning set forth in the Merger Agreement. 

WITNESSETH:

     WHEREAS, the Consultant has invaluable knowledge and expertise regarding the operations of the Company; 

     WHEREAS, due to the Consultant’s knowledge and expertise, Buyer wishes to have the cooperation of, and access to, the Consultant following the Effective Time; and 

     WHEREAS, Buyer and the Consultant have mutually agreed that the Consultant shall serve as an advisor to the Surviving Corporation (together with the Company as hereinbefore defined, the
“Company”) on the terms and subject to the conditions hereinafter specified. 

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and the Consultant hereby agree as follows:

     1.      Consulting Period. The Consultant shall render consulting services, on the terms and conditions set forth in this Agreement, for the
period beginning at the Effective Time and ending upon the third anniversary of the date (the “Effective Date”) on which the Effective Time occurs (the “Consulting Period”). Notwithstanding the foregoing, subject to Section 3, nothing in this Agreement or otherwise constitutes an express or implied promise of continued engagement as a consultant, as a
director or as any other service provider for any period or at all and will not interfere in any way with the rights of the Consultant, Buyer or any relevant Affiliated Entity to terminate the Consultant’s services, with or without Cause (as
defined in Section 3). 

     2.      Consulting Services. During the Consulting Period, the Consultant shall (a) provide general consulting services to the Company with
respect to the business of the Company and (b) make himself reasonably available to the Company to consult on specific projects for the Company with respect to such business, in each case, as may be reasonably requested from time to time by the
Chairman and Chief Executive Officer of Buyer or his designee (the “Consulting Services”). The Consulting Services shall
be performed at such place or places as shall be mutually agreed upon by the Consultant and Buyer. In addition, during the Consulting Period, the Consultant shall serve as a member of the Board of Directors of The Royal Bank of Scotland

Group plc, Chairman of the Company’s affiliated bank for the midwestern region of the United States (to the extent it remains in existence) and Vice Chairman of
Buyer (the “Board Services”).

     3.      Consideration. In consideration for agreeing to provide the Consulting Services, during the Consulting Period, the Consultant shall be
paid an annual amount of $500,000.00 (the “Consulting Fees”), payable in equal monthly installments commencing on the Effective Date and on the first day of each month thereafter.
In the event of the Consultant’s death, permanent and total disability (as determined by a physician selected by Buyer and reasonably acceptable to the Consultant or his representative), voluntary termination or termination by Buyer for Cause
(as defined below), the obligation to pay the Consulting Fees in respect of the months remaining in the Consulting Period as of the date of any such event shall cease. In the event Buyer terminates the Consultant’s services as a consultant
other than for Cause, the Consultant shall be paid the Consulting Fees for the remainder of the Consulting Period in a lump sum within ten business days of the date of termination in full satisfaction of Buyer’s obligations under this Agreement
(except for Buyer’s obligations contained in the last sentence of Section 4). For purposes of this Agreement, “Cause” shall mean the willful engaging by the Consultant in illegal conduct or gross misconduct
which is materially and demonstrably injurious to Buyer. For the avoidance of doubt, the Consultant shall not be entitled to any fees or retainers in respect of his Board Services. 

     4.      Office. During the Consulting Period, the Consultant shall have the use of an office at a location chosen by the Consultant, in his sole
discretion, to be provided by Buyer, furnished and equipped and with such office support services as are reasonably and customarily required for the Consultant to perform the Consulting Services, including, without limitation, the services of a
full-time office assistant, utilities and telephone. In the event of the Consultant’s death, permanent and total disability (as determined by a physician selected by Buyer and reasonably acceptable to the Consultant or his representative),
voluntary termination or termination by Buyer for Cause, the obligation to provide the office space and support services set forth in this Section 4 in respect of the remainder of the Consulting Period shall cease. In the event the Company
terminates the Consultant other than for Cause, the office and support services set forth in this Section 4 shall continue to be provided until the third anniversary of the Effective Date. 

     5.      Expenses. Buyer shall, or shall cause the Company to, reimburse the Consultant pursuant to the Company’s reimbursement policies for
any reasonable business expenses incurred by the Consultant in connection with the performance of the Consulting Services. 

     6.      Sole Consideration. Except as specifically provided herein, the Consultant shall be entitled to no compensation or benefits with respect
to the Consulting Services or Board Services from Buyer, its subsidiaries or affiliates (the “Affiliated Entities”) and will be credited with no service or age credit for purposes
of eligibility, vesting or benefit accrual under any employee benefit plan of any of the Affiliated Entities for the Consulting Services or Board Services. 

     7.      Status as an Independent Contractor. Buyer and the Consultant acknowledge and agree that Buyer shall not exercise general supervision or
control over the time, place or manner in which the Consultant provides Consulting Services hereunder, and that in performing 

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Consulting Services pursuant to this Agreement the Consultant shall be acting and shall act at all times as an independent contractor only and not as an employee, agent, partner or joint venturer of or with Buyer or the Company.
The Consultant acknowledges that he is solely responsible for the payment of all Federal, state, local and foreign taxes that are required by applicable laws or regulations to be paid with respect to the Consulting Fees. 

     8.      Confidentiality. The Consultant shall not disclose to others, copy, use, transmit, reproduce, summarize, quote or make commercial,
directly or indirectly, any secret or confidential information, knowledge or data relating to the Affiliated Entities and their businesses (including without limitation information about the Affiliated Entities’ clients’ and
customers’ and their proprietary knowledge and trade secrets, software, technology, research, secret data, customer lists, investor lists, business methods, business plans, training materials, operating procedures or programs, pricing
strategies, employee lists and other business information) that the Consultant has obtained as a result of the performance of the Consulting Services (“Confidential Information”),
provided that the foregoing shall not apply to information that is generally known to the public other than as a result of the breach of this Agreement by the Consultant. Notwithstanding the
foregoing, it shall not be a breach of this Section 8 for the Consultant to disclose Confidential Information (a) to the Consultant’s legal or financial advisors, provided that such
advisors shall agree to keep the same confidential, (b) as required by order of a court, applicable law, or regulatory body, or (c) with the written consent of Buyer. Notwithstanding anything to the contrary herein, this Agreement shall permit the
disclosure of the tax treatment and tax structure, each as defined in Treasury Regulations Section 1.6011 -4, of the compensatory arrangements described in this Agreement. 

     9.      Miscellaneous. (a) Successors and Assigns. This Agreement will be binding upon,
inure to the benefit of and be enforceable by, as applicable, Buyer and the Consultant and their respective personal or legal representatives, executors, administrators, successors, assigns, heirs, distributees and legatees. This Agreement is
personal in nature and the Consultant shall not, without the written consent of Buyer, assign, transfer or delegate this Agreement or any rights or obligations hereunder. 

          (b)      Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving
effect to such state’s laws and principles regarding the conflict of laws. 

          (c)      Amendment. No provision of this Agreement may be amended, modified, waived or discharged unless such amendment, waiver, modification or
discharge is agreed to in writing and such writing is signed by the Consultant and Buyer. 

          (d)      Notice. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by
overnight courier service or registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 

     If to the Consultant:

     At the most recent address on file for the Consultant at the Company.

-3-

  
    With a copy to:

  Wachtell, Lipton, Rosen & Katz 

    51 West 52nd Street 

    New York, New York 10019 

    Attention: Adam D. Chinn, Esq.

    Facsimile No.: (212) 403-2000 

  If to Buyer:

  
    Citizens Financial Group, Inc. 

    One Citizens Plaza 

    Providence, Rhode Island 02903-1339 

    Attention:      Lawrence K. Fish,

                        Chairman, President and Chief Executive Officer 

    Facsimile No.: (401) 455-5921 

  With a copy to:

  Davis
          Polk & Wardwell 

    450 Lexington Avenue 

    New York, New York 10017 

    Attention: John J. McCarthy, Jr., Esq.

    Facsimile No.: (212) 450-4899 

  
    Goodwin Procter LLP

    Exchange Place

    Boston, MA 02109 

    Attention: Regina M. Pisa, P.C. 

    Facsimile No: (617) 523-1231 

or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 

          (e)      Headings. The headings of this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.  

          (f)      Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument. 

          (g)      Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto in respect to the subject matter hereof.

[Remainder of page intentionally left blank] 

-4- 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date first above written. 

	 	
CITIZENS FINANCIAL GROUP, INC.
	
	 	 

	
	 	 

	
	 	
By:  /s/ Lawrence K. Fish              
	
	 	
Name: Lawrence K. Fish
	
	 	
Title: Chairman, President and Chief Executive
	
	 	
Officer
	
	 	 

	
	 	 

	
	 	 

	
	 	
/s/ Charles D. Koch                     
	 	
Consultant
	

 

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