Document:

EX-10.43

 Exhibit 10.43 

SiteOne Landscape Supply, Inc. 

Form of 
 Employee
Restricted Stock Unit Agreement 
 This Employee Restricted Stock Unit Agreement (the “Agreement”), by
and between SiteOne Landscape Supply, Inc., a Delaware corporation (the “Company”), and the Employee whose name is set forth on Exhibit A hereto, is being entered into pursuant to the SiteOne Landscape Supply, Inc. 2016 Omnibus
Equity Incentive Plan (as amended from time to time, the “Plan”) and is dated as of the date it is accepted and agreed to by the Employee in accordance with Section 6(t). Capitalized terms that are used but not defined herein
shall have the respective meanings given to them in the Plan. 
 Section 1. Grant of Restricted Stock Units. The
Company hereby evidences and confirms its grant to the Employee, effective as of the date set forth on Exhibit A hereto (the “Grant Date”), of the number of Restricted Stock Units set forth on Exhibit A hereto (“Restricted
Stock Units”), subject to adjustment pursuant to the Plan. Each Restricted Stock Unit that becomes vested in accordance with the terms of this Agreement will entitle the Employee to receive from the Company one share of Company Common Stock
(or a cash equivalent) as provided under Section 3 and any dividend equivalents as provided under Section 6(b). This Agreement is entered into pursuant to, and the Restricted Stock Units granted hereunder are subject to, the terms and
conditions of the Plan, which are incorporated by reference herein. 
 Section 2. Vesting of Restricted Stock
Units. 
 (a) Vesting. Except as otherwise provided in this Section 2, the Restricted Stock Units shall
become vested, if at all, in the percentage(s), and on the vesting date(s) set forth on Exhibit A hereto (each, a “Vesting Date”), subject to the continued employment of the Employee by the Company or any Subsidiary thereof through
such date. Vested Restricted Stock Units shall be settled as provided in Section 3 of this Agreement. 
 (b) Effect
of Termination of Employment.  
 (i) Termination by the Company without Cause. If the
Employee’s employment with the Company is terminated by the Company without Cause (so long as the Employee has not engaged in Competitive Activity), a number of Restricted Stock Units shall vest equal to the number of Restricted Stock Units
that would have vested on the next scheduled Vesting Date, had the Employee remained employed through such Vesting Date, multiplied by a fraction, (x) the numerator of which is the number of days from the immediately preceding Vesting
Date (or the Grant Date, if the termination of employment occurs prior to the first Vesting Date) and (y) the denominator is the number of days from the 

 
immediately preceding Vesting Date (or the Grant Date, if the termination of employment occurs prior to the first Vesting Date) through such next Vesting Date. For purposes of this
Section 2, a termination of the Employee’s employment shall be determined without regard to any statutory or deemed or express contractual notice period. 

(ii) Death or Disability. If the Employee’s employment with the Company is terminated by reason of
a Special Termination (i.e., death or Disability), all then outstanding Restricted Stock Units shall then become vested. 

(iii) Retirement. If the Employee’s employment with the Company terminates due to Retirement and
the Employee has entered into a Non-Compete Agreement, then as long as the Employee does not violate the terms of the Non-Compete Agreement, the Restricted Stock Units that would have vested within the one-year period immediately following the
effective date of the Employee’s Retirement had the Employee then been employed will become vested on the Vesting Dates within such one-year period. If the Employee violates the terms of the Non-Compete Agreement during the one-year period
following the Employee’s Retirement, then all of the outstanding Restricted Stock Units then held by the Employee will immediately be forfeited. As used in this Agreement, “Retirement” means the Employee’s voluntary
resignation at or after attaining the age of 60, so long as the Employee has provided at least 10 years of service to the Company as an Employee (or, if approved by the Administrator, as a Consultant or Director); and “Non-Compete
Agreement” means a non-compete and non-solicit agreement between the Employee and the Company, in a form customarily used by the Company, under which the Employee has agreed not to compete with or solicit customers, suppliers or employees
of the Company or any of the Subsidiaries during the two-year period immediately following the effective date of the Employee’s Retirement. 

(iv) Any Other Reason. Except as provided in Sections 2(b)(i), (ii), or (iii), or Section 2(c),
upon termination of the Employee’s employment for any reason (whether initiated by the Company or by the Employee), any unvested Restricted Stock Units shall be forfeited and canceled as of the effective date of such termination. 

(c) Effect of a Change in Control. 

(i) Except as set forth in this Section 2(c) or as otherwise provided by the Administrator, a Change in
Control shall not accelerate the vesting or settlement of the Restricted Stock Units. 
 (ii) In the event
that the Administrator reasonably determines in good faith, prior to the occurrence of a Change in Control, that no Alternative Awards 

 
will be provided upon a Change in Control, each unvested Restricted Stock Unit shall vest, and shares of Company Common Stock underlying all Restricted Stock Units that are vested (as provided in
this Section 2 or otherwise) shall be issued and released to the Employee holding such Restricted Stock Units, except to the extent that the Administrator has determined to settle such Restricted Stock Units in cash in lieu of shares of Company
Common Stock or, in the case of Restricted Stock Units that are subject to Section 409A of the Code, if not permitted by Section 409A of the Code, in which case settlement shall be on the Vesting Date. 

(d) Discretionary Acceleration. Notwithstanding anything contained in this Agreement to the contrary, the
Administrator, in its sole discretion, may accelerate the vesting with respect to any Restricted Stock Units under this Agreement, at such times and upon such terms and conditions as the Administrator shall determine; provided, that the
acceleration of vesting of Restricted Stock Units that are subject to Section 409A of the Code shall not accelerate the Settlement Date thereof unless permitted by Section 409A of the Code. 

(e) No Other Accelerated Vesting. The vesting provisions set forth in this Section 2 shall be the exclusive
vesting and exercisability provisions applicable to the Restricted Stock Units and shall supersede any other provisions relating to vesting, unless such other such provision expressly refers to the Plan by name and this Agreement by name and date.

 Section 3. Settlement of Restricted Stock Units. 

(a) Timing of Settlement. Subject to Section 6(a), any outstanding Restricted Stock Units that became vested on a
Vesting Date shall be settled into an equal number of shares of Company Common Stock on a date selected by the Company that is within 30 days following such Vesting Date (each such date, a “Settlement Date”); provided that,
in the case of accelerated vesting of Restricted Stock Units pursuant to Section 2(b)(i), (ii) or (iii) or Section 2(c) (but, for Restricted Stock Units that are subject to Section 409A of the Code, only if permitted by
Section 409A of the Code, in which case settlement shall be on the Vesting Date), the Settlement Date shall occur on a date selected by the Company that is within 30 days following the vesting of such Restricted Stock Units. 

(b) Mechanics of Settlement. Subject to Section 6(a), on each Settlement Date, the Company shall electronically
issue to the Employee one whole share of Company Common Stock for each Restricted Stock Unit that then became vested, and, upon such issuance, the Employee’s rights in respect of such Restricted Stock Unit shall be extinguished. On or before
any Settlement Date, at the Company’s request, the Company and the Employee shall enter into agreements or other documentation, if any, that establish the rights and obligations of the Company and the Employee relating to the shares of Company
Common Stock issued in respect of the Restricted Stock Units, in the form then customarily used by the Company under the Plan for such purpose. In the 

 
event that there are any fractional Restricted Stock Units that became vested on such date, such fractional Restricted Stock Units shall be settled through a cash payment equal to such fraction
multiplied by the Fair Market Value of the Company Common Stock on such Settlement Date. No fractional shares of Company Common Stock shall be issued in respect of the Restricted Stock Units. 

(c) Alternative Settlement in Cash. In lieu of settlement of vested Restricted Stock Units in shares of Company Common
Stock, the Company may, in the Administrator’s sole discretion, elect to settle all or a portion of the vested Restricted Stock Units by a cash payment equal to the Fair Market Value as of the Settlement Date of the shares of Company Common
Stock that would otherwise have been issued under this Agreement. Any such cash payment will be paid in accordance with the Company’s normal payroll practices or such other means acceptable to the Company. 

Section 4. Securities Law Compliance. Notwithstanding any other provision of this Agreement, the Employee may not
sell the shares of Company Common Stock acquired upon settlement of the Restricted Stock Units unless such shares are registered under the Securities Act of 1933, as amended (the “Securities Act”), or, if such shares are not then so
registered, such sale would be exempt from the registration requirements of the Securities Act. The sale of such shares must also comply with other applicable laws and regulations governing the Company Common Stock, and the Employee may not sell the
shares of Company Common Stock if the Company determines that such sale would not be in material compliance with such laws and regulations. 

Section 5. Restriction on Transfer; Non-Transferability of Restricted Stock Units. The Restricted Stock Units are
not assignable or transferable, in whole or in part, and they may not, directly or indirectly, be offered, transferred, sold, pledged, assigned, alienated, hypothecated or otherwise disposed of or encumbered (including, but not limited to, by gift,
operation of law or otherwise), other than by will or by the laws of descent and distribution to the estate of the Employee upon the Employee’s death or, with the prior approval of the Company’s General Counsel or the Administrator, estate
planning transfers. Any purported transfer in violation of this Section 5 shall be void ab initio. 

Section 6. Miscellaneous. 

(a) Tax Matters. 

(i) Withholding. The Company or one of the Subsidiaries shall require the Employee to remit to the
Company an amount in cash sufficient to satisfy any applicable U.S. federal, state and local and non-U.S. tax withholding obligations that may arise in connection with the vesting or settlement of the Restricted Stock Units and the related issuance
of shares of Company Common Stock. Notwithstanding the preceding sentence, unless previously satisfied, the 

 
Company shall retain a number of shares issued in respect of the Restricted Stock Units then vesting that have an aggregate Fair Market Value as of the Settlement Date equal to the amount of such
taxes required to be withheld (and the Employee shall thereupon be deemed to have satisfied his or her obligations under this Section 6(a)); provided that the number of such shares retained shall not be in excess of the maximum amount
required to satisfy the statutory withholding tax obligations (it being understood that the value of any fractional share of Company Common Stock shall be paid in cash). The number of shares of Company Common Stock to be issued in respect of
Restricted Stock Units shall thereupon be reduced by the number of shares of Company Common Stock so retained. The method of withholding set forth in the immediately preceding sentence shall not be available if withholding in this manner would
violate any financing instrument of the Company or any of the Subsidiaries. In the event that the Company elects to settle any Restricted Stock Units using cash, the Company shall withhold an amount in cash sufficient to satisfy any applicable U.S.
federal, state and local and non-U.S. tax withholding obligations that may arise in connection with the vesting of the Restricted Stock Units and the related cash payment. 

(ii) Section 409A of the Code. If the Employee is not eligible for Retirement during the vesting
period applicable to the Restricted Stock Units, the Restricted Stock Units are intended not to be subject to Section 409A of the Code. If the Employee is eligible for Retirement during the vesting period applicable to the Restricted Stock
Units such that some or all of the Restricted Stock Units are subject to Section 409A, this Agreement and the Restricted Stock Units shall be administered and construed in a manner consistent with Section 409A of the Code. 

(b) Dividend Equivalents. In the event that the Company pays any ordinary dividend in cash on a share of Company Common
Stock following the Grant Date and prior to an applicable Settlement Date, there shall be credited to the account of the Employee in respect of each outstanding Restricted Stock Unit an amount equal to the amount of such dividend. The amount so
credited shall be deferred (without interest, unless the Administrator determines otherwise) until the settlement of such related Restricted Stock Unit and then paid in cash, but shall be forfeited upon the forfeiture of such related Restricted
Stock Unit. 
 (c) Authorization to Share Personal Data. The Employee authorizes the Company or any Affiliate of the
Company that has or lawfully obtains personal data relating to the Employee to divulge or transfer such personal data to the Company or to a third party, in each case in any jurisdiction, if and to the extent reasonably appropriate in connection
with this Agreement or the administration of the Plan. 
 (d) No Rights as Stockholder; No Voting Rights. The
Employee shall have no rights as a stockholder of the Company with respect to any shares of Company 

 
Common Stock covered by the Restricted Stock Units prior to the issuance of such shares of Company Common Stock, except for dividend equivalents provided under Section 6(b). 

(e) No Right to Awards. The Employee acknowledges and agrees that the grant of any Restricted Stock Units
(i) is being made on an exceptional basis and is not intended to be renewed or repeated, (ii) is entirely voluntary on the part of the Company and the Subsidiaries and (iii) should not be construed as creating any
obligation on the part of the Company or any of the Subsidiaries to offer any Restricted Stock Units in the future. 
 (f)
No Right to Continued Employment. Nothing in this Agreement shall be deemed to confer on the Employee any right to continue in the employ of the Company or any Subsidiary, or to interfere with or limit in any way the right of the Company or
any Subsidiary to terminate such employment at any time. 
 (g) Nature of Award. This award of Restricted Stock Units
and any delivery or payment in respect thereof constitutes a special incentive payment to the Employee and shall not be taken into account in computing the amount of salary or compensation of the Employee for the purpose of determining any
retirement, death or other benefits under (x) any retirement, bonus, life insurance or other employee benefit plan of the Company or (y) any agreement between the Company and the Employee, except as such plan or agreement
shall otherwise expressly provide. 
 (h) Interpretation. The Administrator shall have full power and discretion to
construe and interpret the Plan (and any rules and regulations issued thereunder) and this Award. Any determination or interpretation by the Administrator under or pursuant to the Plan or this Award shall be final and binding and conclusive on all
persons affected hereby. 
 (i) Forfeiture of Awards. The Restricted Stock Units granted hereunder (and gains earned
or accrued in connection therewith) shall be subject to such generally applicable policies as to forfeiture and recoupment (including, without limitation, upon the occurrence of material financial or accounting errors, financial or other misconduct,
Competitive Activity) as may be adopted by the Administrator or the Board from time to time and communicated to the Employee, and be otherwise subject to forfeiture or disgorgement of profits as set forth in Article XIII of the Plan. The Employee
hereby appoints the Company as the Employee’s attorney-in-fact of the undersigned to take such actions as may be necessary or appropriate to effect a transfer of the record ownership of any Shares acquired from the Restricted Stock Units to
which such forfeiture or disgorgement provisions may apply. 
 (j) Consent to Electronic Delivery. By entering into
this Agreement and accepting the Restricted Stock Units evidenced hereby, the Employee hereby consents to 

 
the delivery of information (including, without limitation, information required to be delivered to the Employee pursuant to applicable securities laws) regarding the Company and the
Subsidiaries, the Plan, this Agreement and the Restricted Stock Units via Company website or other electronic delivery. 

(k) Binding Effect; Benefits. This Agreement shall be binding upon and inure to the benefit of the parties to this
Agreement and their respective successors and assigns. No provision of this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement or their respective successors or assigns any
legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein. 
 (l)
Amendment. This Agreement may not be amended, modified or supplemented orally, but only by a written instrument executed by the Employee and the Company. 

(m) Assignability. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason
hereof shall be assignable by the Company or the Employee without the prior written consent of the other party. 
 (n)
Applicable Law. This Agreement shall be governed in all respects, including, but not limited to, as to validity, interpretation and effect, by the internal laws of the State of Delaware, without reference to principles of conflict of law that
would require application of the law of another jurisdiction. 
 (o) Waiver of Jury Trial. Each party hereby waives,
to the fullest extent permitted by applicable law, any right he, she or it may have to a trial by jury in respect of any suit, action or proceeding arising out of this Agreement or any transaction contemplated hereby. Each party
(i) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and
(ii) acknowledges that he, she or it and the other party hereto have been induced to enter into the Agreement by, among other things, the mutual waivers and certifications in this section. 

(p) Limitations of Actions. No lawsuit relating to this Agreement may be filed before a written claim is filed with the
Administrator and is denied or deemed denied as provided in the Plan and any lawsuit must be filed within one year of such denial or deemed denial or be forever barred. 

(q) Lock-Up Periods. If the Company files a registration statement under the Securities Act with respect to an
underwritten public offering of any shares of its capital stock, the Employee shall not effect any public sale (including a sale under Rule 144 under the Securities Act or other similar provision of applicable law) or distribution of any Company
Common Stock, other than as part of such underwritten public offering, 

 
during the 20 days prior to and the 90 days after the effective date of such registration statement (or such other period, not to exceed 180 days, as may be generally applicable to or agreed by
the Company with respect to its transactions in its own Shares). If the Company files a prospectus in connection with a takedown from a shelf registration statement, the Associate shall not effect any public sale (including a sale under Rule 144
under the Securities Act or other similar provision of applicable law) or distribution of any Company Common Stock, other than as part of such offering, for 20 days prior to and 90 days after the date the prospectus supplement is filed with the
Securities and Exchange Commission. 
 (r) Trading Policies. The Employee acknowledges and agrees that he or she
shall be subject to, and shall comply with, any of the Company’s trading policies, as in effect from time to time. 

(s) Section and Other Headings, etc. The section and other headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement. Unless otherwise indicated, section and exhibit references in this Agreement refer to this Agreement. 

(t) Acceptance of Restricted Stock Units and Agreement. The Employee has indicated his or her consent and
acknowledgement of the terms of this Agreement pursuant to the instructions provided to the Employee by or on behalf of the Company. The Employee acknowledges receipt of the Plan, represents to the Company that he or she has read and understood this
Agreement and the Plan, and, as an express condition to the grant of the Restricted Stock Units under this Agreement, agrees to be bound by the terms of both this Agreement and the Plan. The Employee and the Company each agrees and acknowledges that
the use of electronic media (including, without limitation, a clickthrough button or checkbox on a website of the Company or a third-party administrator) to indicate the Employee’s confirmation, consent, signature, agreement and delivery of
this Agreement and the Restricted Stock Units is legally valid and has the same legal force and effect as if the Employee and the Company signed and executed this Agreement in paper form. The same use of electronic media may be used for any
amendment or waiver of this Agreement. 

 Exhibit A to 

Employee Restricted Stock Unit Agreement 
  

									
	 Employee:
	  		  		  		  	
		  	  
	  		  		  	
					
	 Grant Date:
	  	,201  	  		  		  	
		  	  
	  		  		  	
					
	 Restricted Stock Units granted hereby:
	  		  		  		  	
		  	  
	  		  		  	
					
	 Vesting Date
	  	 Percentage

Vesting

on such Vesting

DateExhibit
4.4

 

GLOBAL
NOTE

 

THIS SUBORDINATED
NOTE 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 SUBORDINATED NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SUBORDINATED NOTE REGISTERED, AND
NO TRANSFER OF THIS SUBORDINATED NOTE 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.

 

THE RIGHTS
OF THE HOLDER OF THIS SUBORDINATED NOTE ARE, TO THE EXTENT AND IN THE MANNER SET FORTH IN SECTION 12.01 OF THE INDENTURE, SUBORDINATED
TO THE CLAIMS OF OTHER CREDITORS OF THE COMPANY, AND THIS SUBORDINATED NOTE IS ISSUED SUBJECT TO THE PROVISIONS OF THAT SECTION
12.01, AND THE HOLDER OF THIS SUBORDINATED NOTE, BY ACCEPTING THE SAME, AGREES TO AND SHALL BE BOUND BY SUCH PROVISIONS. THE PROVISIONS
OF SECTION 12.01 OF THE INDENTURE AND THE TERMS OF THIS PARAGRAPH ARE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF SCOTLAND.

 

     

     

    

CUSIP No.
539439 AM1

ISIN No. US539439AM10

 

LLOYDS BANKING
GROUP PLC

 

4.582% Subordinated
Debt Securities due 2025

 

	No. [●]	$[●]

 

 

LLOYDS BANKING 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 assigns, the principal sum of $[●] ([spelled
out] dollars) on December 10, 2025 or on such earlier date as the principal hereof may become due in accordance with the terms
hereof and to pay interest thereon semi-annually in arrears on June 10 and December 10 of each year, commencing on December 10,
2016, and ending on December 10, 2025 (each, a “Payment Date”). Interest so payable on any Payment Date shall be paid
to the Holder in whose name this Subordinated Note is registered on the 15th calendar day immediately preceding the relevant Payment
Date, whether or not such day is a Business Day, as defined in the Indenture (each a “Regular Record Date”). If (i)
the Company fails to pay any installment of interest on any Subordinated Note on or before its Payment Date and such failure continues
for 14 days or (ii) the Company fails to pay all or any part of the principal of any Subordinated Note on any date on which such
principal shall otherwise have become due and payable, whether upon redemption or otherwise, and such failure continues for seven
days (each of (i) and (ii), a “Default”), the Trustee may commence a proceeding for the winding up of the Company
or a Qualifying Administration, provided that the Trustee may not, upon the occurrence of a Default, declare the principal amount
of any of the Outstanding Subordinated Notes to be due and payable.

 

Interest
shall accrue on this Subordinated Note from day to day from June 10, 2016 or from the most recent Payment Date at the rate of
4.582% per annum, until the principal amount hereof is paid or made available for payment.

 

Payments
of interest on this Subordinated Note shall be computed on the basis of a 360-day year divided into twelve months of 30 days each
and, in the case of an incomplete month, the actual number of days elapsed in such period.

 

Payment of
the principal amount of (and premium, if any) and any interest on, this Subordinated 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.
If the date for payment of the principal amount hereof (and premium, if any) or interest thereon is not a Business Day, then (subject
as provided in the Indenture) such payment shall be made on the next succeeding Business Day with the same force and effect as
if made on such date for payment and without any interest or other payment in respect of such delay.

 

     

     

    

Prior to
due presentment of this Subordinated 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 Subordinated Note is registered as the owner of such Subordinated Note
for the purpose of receiving payment of principal and interest, if any, on such Subordinated Note and for all other purposes whatsoever,
whether or not such Subordinated 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 Subordinated 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
Subordinated Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

The exercise
of any U.K. bail-in power (as defined below) 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 Subordinated Notes; (ii) the conversion of
all, or a portion, of the principal amount of, or interest on, the Subordinated Notes into shares or other securities or other
obligations of the Company or another person; and/or (iii) the amendment or alteration of the maturity of the Subordinated Notes,
or amendment of the amount of interest due on the Subordinated 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 Subordinated Notes solely to give effect to the exercise by the relevant U.K. resolution authority of such U.K. bail-in power.
With respect to (i), (ii) and (iii) above, references to principal and interest shall include payments of principal and interest
that have become due and payable (including principal that has become due and payable at Maturity), but which have not been paid,
prior to the exercise of any U.K. bail-in power. Each Holder and Beneficial owner of the Subordinated Notes further acknowledges
and agrees that the rights of the Holders and/or Beneficial Owners under the Subordinated 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, a “U.K. bail-in power” is any write-down and/or conversion 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 and 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 Banking Reform Act 2013, secondary legislation or otherwise), pursuant to which obligations of a
bank, banking group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled,
amended, transferred and/or converted into shares or other securities or obligations of the obligor or any other person (and
a reference to the “relevant U.K. resolution authority” is to any authority with the ability to exercise a U.K.
bail-in power).

 

 

     

     

    

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

 

Dated: [●], 2016

 

 

	 	LLOYDS BANKING GROUP
        PLC

         

	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

	 

 

 

 

[Signature
Page to 2045 Global Note No. [●]]

 

     

     

    

CERTIFICATE
OF AUTHENTICATION

 

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

 

Dated: [●], 2016

 

 

	 	THE
BANK OF NEW YORK MELLON,

as Trustee

         

	 	 
	 	By:	 
	 	 	Authorized
Signatory

 

 

 

 

 

 

[Signature
Page to 2045 Global Note No. [●]]

  

     

     

    

  

[REVERSE
OF SECURITY]

 

This Subordinated
Note is one of a duly authorized issue of securities of the Company (herein called the “Subordinated Notes”) issued
and to be issued in one or more series under a Subordinated Indenture, dated as of November 4, 2014 (herein called the “Subordinated
Indenture”), between the Company, as issuer, and The Bank of New York Mellon, as Trustee (herein called the “Trustee,”
which term includes any successor trustee under the Subordinated Indenture), as supplemented by the Sixth Supplemental Indenture,
dated as of [●], 2016, between the Company and the Trustee (the “Sixth Supplemental Indenture, and, together with
the Subordinated Indenture, the “Indenture”) to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Subordinated Notes and of the terms upon which the Subordinated Notes are, and are to be, authenticated
and delivered.

 

This Subordinated
Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $[●]. The Company
may, from time to time, without the consent of the Holders of the Subordinated Notes, issue additional Subordinated Notes of one
or more of the series of Subordinated Notes issued under the Subordinated Indenture, having the same ranking and the same interest
rate, Maturity, redemption terms and other terms as the Subordinated Notes, except for the price to the public, issue date, first
Interest Payment Date and temporary CUSIP, ISIN and/or other identifying numbers, provided that such additional Subordinated Notes
must be fungible with the outstanding Subordinated Notes for U.S. federal income tax purposes. Any such additional Subordinated
Notes, together with the Subordinated Notes of the applicable series, may constitute a single series of Subordinated Notes under
the Subordinated Indenture and shall be included in the definition of “Securities” in the Subordinated Indenture where
the context requires.

 

The Subordinated
Notes will constitute our direct, unconditional, unsecured and subordinated obligations ranking pari passu without any
preference among themselves and ranking junior in right of payment to the claims of any existing and future unsecured and unsubordinated
indebtedness of the Company.

 

The rights
of the Holders of the Subordinated Notes of this series are, to the extent and in the manner set forth in Section 12.01 of the
Indenture, subordinated to the claims of all Senior Creditors of the Company, and this series of Subordinated Notes is issued
subject to the provisions of that Section 12.01, and the Holders of this series of Subordinated Notes, by accepting the same,
agree to and shall be bound by such provisions. The provisions of Section 12.01 of the Indenture and the terms of this paragraph
are governed by, and shall be construed in accordance with, the laws of Scotland.

 

If an Event
of Default occurs with respect to Subordinated Notes of any series, then in every such case the Trustee or the Holder or Holders
of not less than 25% in aggregate principal amount of the Outstanding Subordinated Notes of this series may declare the principal
amount, together with accrued interest (if any), and Additional

 

     

     

    

Amounts
(if any), payable on such Subordinated Notes, of all the Subordinated Notes to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by the Holder or Holders), and upon any such declaration such amount shall
become immediately due and payable.

 

Except as
otherwise provided in Article 5 of the Indenture, the Trustee may in its discretion proceed to protect and enforce its rights
and the rights of the Holders of the Subordinated Notes by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in the Subordinated
Indenture or in aid of the exercise of any power granted herein, or to enforce any other legal or equitable right vested in the
Trustee by the Subordinated Indenture or by law, provided, however, that the Company shall not, as a result of the bringing of
such judicial proceedings, be required to pay any amount representing or measured by reference to the principal of, or any interest
on, the Subordinated Notes prior to any date on which the principal of, or any interest on, the Subordinated Notes would have
otherwise been payable by the Company.

 

If a Default
occurs, the Trustee may commence a proceeding for the winding-up of the Company and/or prove in a winding-up of the Company or
a Qualifying Administration, provided that the Trustee may not, upon the occurrence of a Default, declare the principal amount
of any of the Outstanding Subordinated Notes to be due and payable.

 

Failure to
make any payment in respect of this Subordinated Note shall not be a Default if such payment is withheld or refused and an Opinion
of Counsel is delivered to the Trustee concluding that such sums were not paid in order to comply with any fiscal or other law
or regulation or with the order of any court of competent jurisdiction, provided, however, that the Trustee may by notice to the
Company require the Company to take such action (including but not limited to proceedings for a declaration by a court of competent
jurisdiction) as the Trustee may be advised in an Opinion of Counsel, upon which opinion the Trustee may conclusively rely, is
appropriate and reasonable in the circumstances to resolve such doubt, in which case the Company shall forthwith take and expeditiously
proceed with such action and shall be bound by any final resolution of the doubt resulting therefrom. If any such action results
in a determination that the relevant payment can be made without violating any applicable law, regulation or order then the provisions
of the preceding sentence shall cease to have effect and the payment shall become due and payable on the expiration of 14 days
(in the case of payments under clause 5.03(a) of the Indenture) or seven days (in the case of payments under clause 5.03(b) Indenture)
after the Trustee gives written notice to the Company informing it of such resolution.

 

Subject to
applicable law, no Holder may exercise or claim any right of set-off, counterclaim, combination of accounts, compensation or retention
in respect of any amount owed to it by the Company arising under or in connection with the Subordinated Debt Securities. The Holders
of Subordinated Debt Securities by their acceptance thereof will be deemed to have waived any right of set-off, counterclaim,
combination of accounts, compensation and retention with respect to the Subordinated Debt Securities or

 

     

     

    

this
Subordinated Indenture (or between the obligations under or in respect of any Subordinated Debt Securities and any liability owed
by a Holder to the Company) that they might otherwise have against the Company

 

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,
whether for the recovery of amounts owing in respect of the Subordinated Notes or under the Indenture or in respect of any breach
by the Company of any of its other obligations under or in respect of the Subordinated Notes or under the Subordinated Indenture,
except that the Trustee and the Holders shall have such rights and powers as they are required to have under the Trust Indenture
Act.

 

Amounts to
be paid on the Subordinated Notes will be made without deduction or withholding for, or on account of, any and all present and
future income, stamp and other taxes, levies, imposts, duties, charges or fees imposed, levied, collected, withheld or assessed
by or on behalf of the United Kingdom or any political subdivision or authority thereof or therein having the power to tax (the
“Taxing Jurisdiction”), unless such deduction or withholding is required by law. If at any time a Taxing Jurisdiction
requires the Company to make such deduction or withholding, the Company will pay additional amounts with respect to the principal
of, interest and any other payment on, the Subordinated Notes (“Additional Amounts”) that are necessary in order that
the net amounts paid to the Holders of Subordinated Notes, after the deduction or withholding, shall equal the amounts which would
have been payable on the Subordinated Notes if the deduction or withholding had not been required. However, this will not apply
to any such tax, levy, impost, duty, charge or fee, which would not have been deducted or withheld but for the fact that:

 

(i)       the
Holder or the Beneficial Owner of the Subordinated Note is a domiciliary, national or resident of, or engaging in business or
maintaining a permanent establishment or physically present in, the Taxing Jurisdiction or otherwise having some connection with
the Taxing Jurisdiction other than the holding or ownership of a Subordinated Note, or the collection of any payment of, or in
respect of, principal of, or any interest, or other payment on, any Subordinated Note;

 

(ii)       except
in the case of winding-up in the United Kingdom, the relevant Subordinated Note is presented (where presentation is required)
for payment in the United Kingdom;

 

(iii)       the
relevant Subordinated 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 the Additional
Amounts on presenting the same for payment at the close of that 30 day period;

 

(iv)       the
Holder or the Beneficial Owner of the relevant Subordinated Note or the Beneficial Owner of any payment of, or in respect of,
principal of, or any interest or other payment on, the Subordinated Note failed to comply with a request of 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 the 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 Taxing
Jurisdiction as a precondition to exemption from all or part of the tax, levy, impost, duty, charge or fee;

 

(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
Subordinated 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 the Subordinated Note to another paying agent;

 

(vii)       the
deduction or withholding is imposed by reason of Sections 1471-1474 of the US Internal Revenue Code and the U.S. Treasury regulations
thereunder or any agreement with the U.S. Internal Revenue Service in connection with these sections and regulations (“FATCA”),
any intergovernmental agreement between the United States and the United Kingdom or any other jurisdiction with respect to FATCA,
or any law, regulation or other official guidance enacted in any jurisdiction implementing, or relating to, FATCA or any intergovernmental
agreement; or

 

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

 

nor shall
Additional Amounts be paid with respect to the principal of or any interest or other payment on, the Subordinated Notes to any
Holder who is a fiduciary or partnership or any person other than the sole Beneficial Owner of such payment to the extent such
payment would be required by the laws of any Taxing Jurisdiction to be included in the income for tax purposes of a beneficiary
or partner 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 any context, the payment of the principal of or any interest or other payments on, or
in respect of, any Subordinated Notes of any series 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. Upon request from the Trustee or a paying
agent, the Company shall provide information reasonably necessary and readily available in order to enable to the Trustee or paying
agent to determine whether any withholding obligations under FATCA apply. None of the Company, the Trustee or a paying agent shall
have any liability in connection with the Company’s or Trustee’s or paying agent’s compliance with any such
withholding obligation under applicable law.

 

     

     

    

Subordinated
Notes may not be redeemed except in accordance with provisions of applicable law, applicable provisions of the Regulatory Capital
Requirements Regulations and except as provided in the Indenture. The Subordinated Notes may not be redeemed in whole or in part
at the option of the Holder thereof.

 

Subject to
the limitations specified below, the Company may, at the option of the Company, on not less than 30 nor more than 60 days’
notice, redeem the Subordinated Notes, as a whole but not in part, at a redemption price equal to 100% of the principal amount,
of the Subordinated Notes then outstanding, together with any accrued interest to (but excluding) the date fixed for redemption,
if at any time:

 

(i)       the
Company determines that as a result of a change in, or amendment to, the laws or regulations of the United Kingdom, or any political
subdivision or authority therein or thereof, having the power to tax, including any treaty to which the United Kingdom is a party,
or any change in any generally published application or interpretation of such laws, including a decision of any court or tribunal,
or any change in the generally published application or interpretation of such laws by any relevant tax authority or any generally
published pronouncement by any tax authority, which change, amendment or pronouncement (x) (subject to (y)) becomes, or would
become, effective on or after the Issue Date, or (y) in the case of a change in law, if such change is enacted by United Kingdom
Act of Parliament or implemented by statutory instrument, on or after the Issue Date (a “Tax Law Change”), the Company
has paid or will or would on the next payment date be required to pay Additional Amounts to any Holder of the Subordinated Notes;
and/or

 

(ii)       a
Tax Law Change would:

 

(A)       result
in the Company not being entitled to claim a deduction in respect of any payments in computing the Company’s taxation liabilities
or materially reducing the amount of such deduction;

 

(B)       prevent
the Subordinated Notes from being treated as loan relationships for United Kingdom tax purposes;

 

(C)       as
a result of the Subordinated Notes being in issue, result in the Company not being able to have losses or deductions set against
the profits or gains, or profits or gains offset by the losses or deductions, of companies with which it is or would otherwise
be so grouped for applicable United Kingdom tax purposes (whether under the group relief system current as of the date of issue
of the Subordinated Notes or any similar system or systems having like effect as may from time to time exist);

 

(D)       result
in a United Kingdom tax liability, or the receipt of income or profit which would be subject to United Kingdom tax, in respect
of a write-down of the principal amount of the Subordinated

 

     

     

    

Notes
or the conversion of the Subordinated Notes into shares or other obligations of the Company; or

 

(E)       result
in a Subordinated Note or any part thereof being treated as a derivative or an embedded derivative for United Kingdom tax purposes,

 

(each such Tax Law Change, a
“Tax Event”); provided, however, in each case that the Company could not avoid the consequences of the
Tax Event by taking measures reasonably available to it.

 

Prior to
the delivery of any such notice of redemption, the Company shall deliver to the Trustee (i) a written legal opinion of independent
United Kingdom counsel of recognized standing (selected by the Company), in a form satisfactory to the Trustee, to the effect
that a Tax Event has occurred, and (ii) an Officer’s Certificate confirming (1) that all the conditions necessary for redemption
have occurred and that the Company could not avoid the consequences of the Tax Event by taking measures reasonably available to
it, and (2) that the Relevant Regulator is satisfied that the relevant change or event is material and was not reasonably foreseeable
by the Company on the Issue Date. The Trustee is entitled to conclusively rely on and accept such opinion and Officer’s
Certificate without any duty whatsoever of further inquiry, in which event such opinion and Officer’s Certificate shall
be conclusive and binding on the Trustee, the Holders and the Beneficial Owners.

 

Subject to
the conditions set out below, the Subordinated Notes are redeemable, as a whole but not in part, at the option of the Company,
on not less than 30 calendar days’ nor more than 60 calendar days’ notice, at any time, at a redemption price equal
to 100% of the principal amount, together with accrued but unpaid interest, if any, in respect of Subordinated Notes to the date
fixed for redemption if, immediately prior to the giving of the notice referred to above, a Capital Disqualification Event has
occurred.

 

Prior to
the giving of any notice of redemption, the Company must deliver to the Trustee an Officer’s Certificate stating that (i)
a Capital Disqualification Event has occurred, and (ii) the Company has demonstrated to the satisfaction of the Relevant Regulator
that the relevant change was not reasonably foreseeable by the Company as at the Issue Date. The Trustee shall be entitled to
accept such Officer’s Certificate without any further inquiry, in which event such Officer’s Certificate shall be
conclusive and binding on the Trustee and the Holders and Beneficial Owners.

 

Subject to
the conditions set out below, the Company may from time to time purchase Subordinated Notes in the open market or by tender or
by private agreement, in any manner and at any price or at differing prices. Subordinated Notes purchased or otherwise acquired
by the Company may be held, resold or at its sole discretion, surrendered to the Trustee for cancellation (in which case all Subordinated
Notes so surrendered will forthwith be cancelled in accordance with applicable law and thereafter may not be re-issued or resold).

 

     

     

    

The Subordinated
Notes may be redeemed or purchased by the Company prior to Maturity as provided in the foregoing paragraphs, subject to:

 

(a)       the
Company giving notice to the Relevant Regulator and the Relevant Regulator granting permission to the Company to redeem or purchase
the Subordinated Notes;

 

(b)       in
respect of any redemption of the Subordinated Notes proposed to be made prior to the fifth anniversary of the date of issuance
of the Subordinated Notes, if and to the extent then required under the relevant Regulatory Capital Requirements (a) in the case
of an optional redemption due to a Tax Event, the Company having demonstrated to the satisfaction of the Relevant Regulator that
the relevant change or event is material and was not reasonably foreseeable by the Company as at the Issue Date or (b) in the
case of redemption following the occurrence of a Capital Disqualification Event, the Company having demonstrated to the satisfaction
of the Relevant Regulator that the relevant change was not reasonably foreseeable by the Company as at the Issue Date; and

 

(c)       if
and to the extent then required by the relevant Regulatory Capital Requirements (A) on or before the relevant redemption or purchase
date, the Company replacing the Subordinated Debt Securities with instruments qualifying as own funds of equal or higher quality
on terms that are sustainable for the income capacity of the Company; or (B) the Company demonstrating to the satisfaction of
the Relevant Regulator that its Tier 1 Capital and Tier 2 Capital would, following such redemption or purchase, exceed its minimum
capital requirements by a margin that the Relevant Regulator may consider necessary at such time based on the Regulatory Capital
Requirements.

 

Notwithstanding
the above conditions, if, at the time of any redemption or purchase, the prevailing Regulatory Capital Requirements permit the
repayment or purchase only after compliance with one or more alternative or additional preconditions to those set out above, the
Company shall comply with such other and/or, as appropriate, additional pre-condition(s).

 

If the Company
elects to redeem the Subordinated Notes, the Subordinated Notes will cease to accrue interest from the date of redemption, provided
the redemption price has been paid in accordance with the Indenture.

 

Upon payment
of (i) the amount of principal (and premium, if any) 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 premium, if any), and accrued and unpaid interest
on, the Subordinated Notes of this series shall terminate.

 

Notwithstanding
any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial Owner of the Subordinated
Notes, by accepting the Subordinated Notes or otherwise purchasing or acquiring the Subordinated Notes, each Holder (including
each Beneficial Owner) of the Subordinated Notes

 

     

     

    

acknowledges,
accepts, agrees to be bound by and consents to the exercise of any U.K. bail-in power (as defined below) 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 Subordinated Notes; (ii) the conversion of all, or a portion, of the principal amount of, or interest on, the
Subordinated Notes into shares or other securities or other obligations of the Company or another person; and/or (iii) the amendment
or alteration of the maturity of the Subordinated Notes, or amendment of the amount of interest due on the Subordinated 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 Subordinated Notes solely to give effect to the exercise by the relevant
U.K. resolution authority of such U.K. bail-in power. With respect to (i), (ii) and (iii) above, references to principal and interest
shall include payments of principal and interest that have become due and payable (including principal that has become due and
payable at Maturity), but which have not been paid, prior to the exercise of any U.K. bail-in power. Each Holder and Beneficial
Owner of the Subordinated Notes further acknowledges and agrees that the rights of the Holders and/or Beneficial Owners under
the Subordinated 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, a “U.K. bail-in power” is any write-down and/or conversion 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 and 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 Banking Reform Act 2013, secondary
legislation or otherwise), pursuant to which obligations of a bank, banking group company, credit institution or investment firm
or any of its affiliates can be reduced, cancelled, amended, transferred and/or converted into shares or other securities or obligations
of the obligor or any other person (and a reference to the “relevant U.K. resolution authority” is to any authority
with the ability to exercise a U.K. bail-in power).

 

By accepting
the Subordinated Notes or otherwise purchasing or acquiring the Subordinated Notes, each Holder and Beneficial Owner of the Subordinated
Notes:

 

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

 

(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 Subordinated
Notes; and

 

(iii)       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 under Section 5.12 of the Subordinated Indenture, and (b) neither
the Subordinated Indenture nor the Sixth 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 Subordinated 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
Subordinated Notes), then the Trustee’s duties under the Subordinated Indenture shall remain applicable with respect to
the Subordinated Notes following such completion to the extent that the Issuer and the Trustee shall agree pursuant to a supplemental
indenture or an amendment to the Subordinated Indenture.

 

By accepting
the Subordinated Notes or otherwise purchasing or acquiring the Subordinated Notes, each Holder and Beneficial Owner that acquires
its Subordinated 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 Subordinated Notes that acquire
the Subordinated 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 Subordinated Notes related to the U.K. bail-in power.

 

By accepting
the Subordinated Notes or otherwise purchasing or acquiring the Subordinated 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 Subordinated Notes and (ii) authorized, directed
and requested DTC and any direct participant in DTC or other intermediary through which it holds such Subordinated 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 Subordinated
Notes as it may be imposed, without any further action or direction on the part of such Holder or Beneficial Owner or the Trustee.

 

No repayment
of the principal amount of the Subordinated Notes or payment of interest on the Subordinated 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 Subordinated 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
only.

 

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 Subordinated Notes to be affected thereby by the Company and the Trustee with
the consent of the Holders of not less than two-thirds in principal amount of the Subordinated Notes at the time outstanding.
The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Outstanding Subordinated
Notes, on behalf of the Holders of all Subordinated Notes, to waive compliance by the Company with certain provisions of the Indenture
and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Subordinated
Note shall be conclusive and binding upon such Holder and upon all future Holders of this Subordinated Note and of any Subordinated
Note issued in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Subordinated
Note.

 

No reference
herein to the Indenture and no provision of this Subordinated 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 premium, if any)
and interest on, this Subordinated 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 Subordinated Note of this series shall have any right to
institute any proceeding, judicial or otherwise, with respect to the Subordinated Indenture, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless such Holder fulfills the requirements of Section 5.07 under the Indenture.

 

No reference
herein to the Indenture and no provision of this Subordinated Note or of the Indenture shall alter or impair the right of the
Holder of this Subordinated Note, which is absolute and unconditional, to receive payment of the principal of (and premium, if
any) and interest on, this Subordinated Note when due and payable in accordance with the provisions of this Subordinated Note
and the Indenture.

 

The Subordinated
Indenture, the Sixth Supplemental Indenture and the Subordinated Notes are governed by, and construed in accordance with, the
laws of the State of New York, except for the subordination and waiver of set-off provisions relating to the Subordinated Notes,
which are governed by, and construed in accordance with, the laws of Scotland.

 

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

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