Document:

ex_406.htm

Exhibit 4.06

 

 

Form of Indenture

 

PALATIN TECHNOLOGIES, INC.

 

ISSUER

 

and

 

______________________________________

 

INDENTURE TRUSTEE

 

INDENTURE

 

Dated as of __________, _____

 

 

  

  

  

 

TABLE OF CONTENTS

 

 

	
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

	
 

	2
	
Section 1.01

	
Definitions.

	
2

	
Section 1.02

	
Other Definitions.

	
6

	
Section 1.03

	
Incorporation by Reference of Trust Indenture Act.

	
7

	
Section 1.04

	
Rules of Construction.

	
7

	
ARTICLE II TILE SECURITIES

	
 

	8
	
Section 2.01

	
Issuable in Series.

	
8

	
Section 2.02

	
Establishment of Terms of Series of Securities.

	
8

	
Section 2.03

	
Execution and Authentication.

	
10

	
Section 2.04

	
Registrar and Paying Agent.

	
10

	
Section 2.05

	
Paying Agent to Hold Money in Trust.

	
11

	
Section 2.06

	
Holder Lists.

	
11

	
Section 2.07

	
Transfer and Exchange.

	
11

	
Section 2.08

	
Mutilated, Destroyed, Lost and Stolen Securities.

	
12

	
Section 2.09

	
Outstanding Securities.

	
12

	
Section 2.10

	
Treasury Securities.

	
13

	
Section 2.11

	
Temporary Securities.

	
13

	
Section 2.12

	
Cancellation.

	
13

	
Section 2.13

	
Defaulted Interest.

	
13

	
Section 2.14

	
Global Securities

	
13

	
ARTICLE III REDEMPTION

	
 

	15
	
Section 3.01

	
Notice to Trustee.

	
15

	
Section 3.02

	
Selection of Securities to be Redeemed.

	
15

	
Section 3.03

	
Notice of Redemption.

	
15

	
Section 3.04

	
Effect of Notice of Redemption.

	
16

	
Section 3.05

	
Deposit of Redemption Price.

	
16

	
Section 3.06

	
Securities Redeemed in Part.

	
16

	
ARTICLE IV COVENANTS

	
 

	16
	
Section 4.01

	
Payment of Principal and Interest.

	
17

	
Section 4.02

	
SEC Reports.

	
17

	
Section 4.03

	
Compliance Certificate.

	
17

	
Section 4.04

	
Stay, Extension and Usury Laws.

	
17

 

 

  

i

  

 

	
ARTICLE V SUCCESSORS

	
 

	17
	
Section 5.01

	
When Company May Merge, Etc.

	
17

	
Section 5.02

	
Successor Corporation Substituted.

	
18

	
ARTICLE VI DEFAULTS AND REMEDIES

	
 

	18
	
Section 6.01

	
Events of Default.

	
18

	
Section 6.02

	
Acceleration of Maturity; Rescission and Annulment.

	
19

	
Section 6.03

	
Collection of Indebtedness and Suits for Enforcement by Trustee.

	
19

	
Section 6.04

	
Trustee May File Proofs of Claim.

	
20

	
Section 6.05

	
Trustee May Enforce Claims Without Possession of Securities.

	
20

	
Section 6.06

	
Application of Money Collected.

	
21

	
Section 6.07

	
Limitation on Suits.

	
21

	
Section 6.08

	
Unconditional Right of Holders to Receive Principal and Interest.

	
22

	
Section 6.09

	
Restoration of Rights and Remedies.

	
22

	
Section 6.10

	
Rights and Remedies Cumulative.

	
22

	
Section 6.11

	
Delay or Omission Not Waiver.

	
22

	
Section 6.12

	
Control by Holders.

	
22

	
Section 6.13

	
Waiver of Past Defaults.

	
22

	
Section 6.14

	
Undertaking for Costs.

	
23

	
ARTICLE VII TRUSTEE

	
 

	23
	
Section 7.01

	
Duties of Trustee.

	
23

	
Section 7.02

	
Rights of Trustee.

	
24

	
Section 7.03

	
Individual Rights of Trustee.

	
25

	
Section 7.04

	
Trustee’s Disclaimer.

	
25

	
Section 7.05

	
Notice of Defaults.

	
25

	
Section 7.06

	
Reports by Trustee to Holders.

	
26

	
Section 7.07

	
Compensation and Indemnity.

	
26

	
Section 7.08

	
Replacement of Trustee.

	
26

	
Section 7.09

	
Successor Trustee by Merger, etc.

	
27

	
Section 7.10

	
Eligibility; Disqualification.

	
27

	
Section 7.11

	
Preferential Collection of Claims Against Company.

	
27

	
ARTICLE VIII SATISFACTION AND DISCHARGE; DEFEASANCE

	
 

	27
	
Section 8.01

	
Satisfaction and Discharge of Indenture.

	
28

	
Section 8.02

	
Application of Trust Funds; Indemnification.

	
28

	
Section 8.03

	
Legal Defeasance of Securities of any Series.

	
29

 

 

  

ii

  

 

	
Section 8.04

	
Covenant Defeasance.

	
30

	
Section 8.05

	
Repayment to Company.

	
31

	
Section 8.06

	
Reinstatement.

	
32

	
ARTICLE IX AMENDMENTS AND WAIVERS

	
 

	32
	
Section 9.01

	
Without Consent of Holders.

	
32

	
Section 9.02

	
With Consent of Holders.

	
33

	
Section 9.03

	
Limitations.

	
33

	
Section 9.04

	
Compliance with Trust Indenture Act.

	
34

	
Section 9.05

	
Revocation and Effect of Consents.

	
34

	
Section 9.06

	
Notation on or Exchange of Securities.

	
34

	
Section 9.07

	
Trustee Protected.

	
34

	
ARTICLE X MISCELLANEOUS

	
 

	34
	
Section 10.01

	
Trust Indenture Act Controls.

	
35

	
Section 10.02

	
Notices.

	
35

	
Section 10.03

	
Communication by Holders with Other Holders.

	
35

	
Section 10.04

	
Certificate and Opinion as to Conditions Precedent.

	
35

	
Section 10.05

	
Statements Required in Certificate or Opinion.

	
36

	
Section 10.06

	
Rules by Trustee and Agents.

	
36

	
Section 10.07

	
Legal Holidays.

	
36

	
Section 10.08

	
No Recourse Against Others.

	
36

	
Section 10.09

	
Counterparts.

	
36

	
Section 10.10

	
Governing Laws.

	
36

	
Section 10.11

	
No Adverse Interpretation of Other Agreements.

	
37

	
Section 10.12

	
Successors.

	
37

	
Section 10.13

	
Severability.

	
37

	
Section 10.14

	
Table of Contents, Headings, Etc.

	
37

	
Section 10.15

	
Securities in a Foreign Currency.

	
37

	
Section 10.16

	
Judgment Currency.

	
37

	
ARTICLE XI SINKING FUNDS

	
 

	38
	
Section 11.01

	
Applicability of Article.

	
38

	
Section 11.02

	
Satisfaction of Sinking Fund Payments with Securities.

	
38

	
Section 11.03

	
Redemption of Securities for Sinking Fund.

	
39

 

  

iii

  

 

Reconciliation and tie between the Trust Indenture Act of 1939 and this Indenture

 

	
Section 310

	
(a)(1)

	
7.10

	  	
(a)(2)

	
7.10

	  	
(a)(3)

	
Not Applicable

	  	
(a)(4)

	
Not Applicable

	  	
(a)(5)

	
7.10

	  	
(b)

	
7.10

	
Section 311

	
(a)

	
7.11

	  	
(b)

	
7.11

	  	
(c)

	
Not Applicable

	
Section 312

	
(a)

	
2.06

	  	
(b)

	
10.03

	  	
(c)

	
10.03

	
Section 313

	
(a)

	
7.06

	  	
(b)(1)

	
7.06

	  	
(b)(2)

	
7.06

	  	
(c)(1)

	
7.06

	  	
(d)

	
7.06

	
Section 314

	
(a)

	
4.02,10.05

	  	
(b)

	
Not Applicable

	  	
(c)(1)

	
10.04

	  	
(c)(2)

	
10.04

	  	
(c)(3)

	
Not Applicable

	  	
(d)

	
Not Applicable

	  	
(e)

	
10.05

 

 

  

1

  

 

	  	
(f)

	
Not Applicable

	
Section 315

	
(a)

	
7.01

	  	
(b)

	
7.05

	  	
(c)

	
7.01, 7.05, 7.07

	  	
(d)

	
7.01

	  	
(e)

	
6.14

	
Section 316

	
(a)

	
2.09

	  	
(a)(1)(a)

	
6.12

	  	
(a)(1)(b)

	
6.13

	  	
(b)

	
6.08

	
Section 317

	
(a)(1)

	
6.03

	  	
(a)(2)

	
6.04

	  	
(b)

	
2.05

	
Section 318

	
(a)

	
10.01

 

 

Indenture dated as of  between Palatin Technologies, Inc., a Delaware corporation (“Company”), and ____________________, a _______________________ corporation, as trustee (“Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture.

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.01 Definitions.

 

“Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified herein or therein and which are owing to such Holders.

 

 

  

2

  

 

“Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person.  For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise.

 

“Agent” means any Registrar, Paying Agent or Service Agent.

 

“Applicable Procedures” means, with respect to any transfer or transaction involving a Global Security or beneficial interest therein, the rules and procedures of DTC or any successor Depositary, in each case to the extent applicable to such transaction and as in effect from time to time.

 

“Authorized Newspaper” means a newspaper in an official language of the country of publication customarily published at least once a day for at least five days in each calendar week and of general circulation in the place in connection with which the term is used.  If it shall be impractical in the opinion of the Trustee to make any publication of any notice required hereby in an Authorized Newspaper, any publication or other notice in lieu thereof that is made or given by the Trustee shall constitute a sufficient publication of such notice.

 

“Bearer” means anyone in possession from time to time of a Bearer Security.

 

“Bearer Security” means any Security, including any interest coupon appertaining thereto, that does not provide for the identification of the Holder thereof.

 

“Board of Directors” means the Board of Directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

 

“Business Day” means, unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal holiday in New York, New York on which banking institutions are authorized or required by law, regulation or executive order to close.

 

“Capital Interests” means any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, including, without limitation, with respect to partnerships, partnership interests (whether general or limited) and any other interest or participation that confers on a person the right to receive a share of the profits and losses of or distributions of assets of, such partnership.

 

“Company” means the party named as such above until a successor replaces it and thereafter means the successor.

 

  

3

  

 

“Company Order” means a written order signed in the name of the Company by two Officers, one of whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer.

 

“Company Request” means a written request signed in the name of the Company by its Chief Executive Officer, Chief Financial Officer or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

 

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall be principally administered.

 

“Default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

 

“Depository” means, with respect to the Securities of any Series issuable or issued in whole or part in the form of one or more Global Securities, the person designated as Depositary for such Series by the Company, which Depository shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such person, “Depository” as used with respect to the Securities of any Series shall mean the Depository with respect to the Securities of such Series.

 

“Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.02.

 

“Dollars” and “$” means the currency of the United States of America.

 

“DTC” means the Depository Trust Company, a New York corporation.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Foreign Currency” means any currency or currency unit issued by a government other than the government of the United States of America.

 

“Foreign Government Obligations” means, with respect to Securities of any Series that are denominated in a Foreign Currency, (i) direct obligations of the government that issued or caused to be issued such currency for the payment of which obligations its full faith and credit is pledged or (ii) obligations of a person controlled or supervised by or acting as an agency or instrumentality of such government the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by such government, which, in either case under clauses (i) or (ii), are not callable or redeemable at the option of the issuer thereof.

 

“GAAP” means generally accepted accounting principles promulgated by the Financial Accounting Standards Board or by such other entity as the SEC may designate for that purpose.

 

“Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.02 evidencing all or part of a Series of Securities, issued to the Depository for such Series or its nominee, and registered in the name of such Depository or nominee.

 

  

4

  

 

“Holder” means a person in whose name a Security is registered or the holder of a Bearer Security.

 

“Indenture” means this Indenture as amended or supplemented from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder.

 

“interest” with respect to any Discount Security which by its terms bears interest only after Maturity means interest payable after Maturity.

 

“Maturity” when used with respect to any Security or installment of principal thereof means the date on which the principal of such Security or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

 

“Officer” means the Chief Executive Officer, Chief Financial Officer, any Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

 

“Officers’ Certificate” means a certificate signed by two Officers, one of whom must be the Company’s principal executive officer, principal financial officer or principal accounting officer.

 

“Opinion of Counsel” means a written opinion of legal counsel who is reasonably acceptable to the Trustee.  The counsel may be an employee of or counsel to the Company.

 

“person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“principal” of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of the Security.

 

“Responsible Officer” means any officer of the Trustee in its Corporate Trust Office with direct responsibility for the administration of this Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject.

 

“SEC” means the United States Securities and Exchange Commission.

 

“Securities” means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.

 

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.01 and 2.02 hereof.

 

  

5

  

 

“Stated Maturity” means when used with respect to any Security or any installment of principal thereof or interest thereon, the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable.

 

“Subsidiary” means, with respect to any person, any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Interests entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof or, in the case of a partnership, more than 50% of the partners’ Capital Interests (considering all partners’ Capital Interests as a single class), is at the time owned or controlled, directly or indirectly, by such person or one or more of the other Subsidiaries of such person or combination thereof.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of this Indenture and the rules and regulations promulgated thereunder, provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

 

“Trustee” means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean each person who is then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.

 

“U.S. Government Obligations” means securities which are (i) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (ii) obligations of a person controlled or supervised by and acting as an agency or instrumentality of the United States of America the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, and which are not callable or redeemable at the option of the issuer thereof and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt.

 

Section 1.02 Other Definitions.

 

	
TERM

	  	
DEFINED IN SECTION

	
“Bankruptcy Law”

	  	
6.01

	
“Custodian”

	  	
6.01

	
“Event of Default”

	  	
6.01

	
“Judgment Currency”

	  	
10.16

	
“Legal Holiday”

	  	
10.07

	
“mandatory sinking fund payment”

	  	
11.01

	
“Market Exchange Rate”

	  	
10.15

 

 

  

6

  

 

	
“New York Banking Day”

	  	
10.16

	
“optional sinking fund payment”

	  	
11.01

	
“Paying Agent”

	  	
2.04

	
“Registrar”

	  	
2.04

	
“Required Currency”

	  	
10.16

	
“Service Agent”

	  	
2.04

	
“successor person”

	  	
5.01

Section 1.03 Incorporation by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Holder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company and any successor obligor upon the Securities.

 

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by a SEC rule under the TIA and not otherwise defined herein are used herein as so defined.

 

Section 1.04 Rules of Construction.

 

Unless the context otherwise requires:

 

(a) a term has the meaning assigned to it;

 

(b) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles;

 

(c) references to “generally accepted accounting principles” and “GAAP” shall mean generally accepted accounting principles in effect as of the time when and for the period as to which such accounting principles are to be applied;

 

(d) “or” is not exclusive;

 

(e) words in the singular include the plural, and in the plural include the singular; and

 

(f) provisions apply to successive events and transactions.

 

  

7

  

 

ARTICLE II

THE SECURITIES

 

Section 2.01 Issuable in Series.

 

  The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more Series.  All Securities of a Series shall be identical except as may be set forth or determined in the manner provided in a Board Resolution, supplemental indenture or Officers’ Certificate detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution.  In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officers’ Certificate or supplemental indenture detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined.  Securities may differ between Series in respect of any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of the Indenture.

 

Section 2.02 Establishment of Terms of Series of Securities.

 

  At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection 2.02(a) and either as to such Securities within the Series or as to the Series generally in the case of Subsections 2.02(b) through 2.02(s) by or pursuant to a Board Resolution, and set forth or determined in the manner provided in a Board Resolution, supplemental indenture or an Officers’ Certificate:

 

(a) the form and title of the Series (which shall distinguish the Securities of that particular Series from the Securities of any other Series);

 

(b) the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;

 

(c) any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of or in exchange for, or in lieu of other Securities of the Series pursuant to Section 2.07, 2.08, 2.11, 3.06 or 9.06);

 

(d) the date or dates on which the principal of the Securities of the Series is payable;

 

(e) the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;

 

(f) the place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities of such Series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served, and the method of such payment, if by wire transfer, mail or other means;

 

  

8

  

 

(g) if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part, at the option of the Company;

 

(h) the obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

 

(i) the dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;

 

(j) if other than denominations of $1,000 and any integral multiple thereof the denominations in which the Securities of the Series shall be issuable;

 

(k) if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.02;

 

(l) the currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency, and the agency or organization, if any, responsible for overseeing such composite currency;

 

(m) the provisions, if any, relating to any security provided for the Securities of the Series;

 

(n) any addition to or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.02;

 

(o) any addition to or change in the covenants set forth in Articles IV or V which applies to Securities of the Series;

 

(p) the provisions, if any, relating to conversion of any Securities of such Series, including, if applicable, the securities into which the Securities are convertible, the conversion price, the conversion period, provisions as to whether conversion will be mandatory, at the option of the Holders or at the option of the Company, the events requiring an adjustment of the conversion price and provisions affecting conversion if such Series of Securities are redeemed;

 

(q) whether the Securities of such Series will be senior debt securities or subordinated debt securities and, if applicable, a description of the subordination terms thereof;

 

(r) any depositaries, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such Series if other than those appointed herein; and

 

  

9

  

 

(s) any other terms of the Securities of the Series (which may modify or delete any provision of this Indenture insofar as it applies to such Series).

 

All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, and, unless otherwise provided in such Board Resolution, a Series may be reopened, without the consent of the Holders, for increases in the aggregate principal amount of such Series and issuances of additional Securities of such Series.

 

Section 2.03 Execution and Authentication.

 

  Two Officers shall sign the Securities for the Company by manual or facsimile signature.  If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid.  A Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.  The signature shall be conclusive evidence that the Security has been authenticated under this Indenture.  The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of a Company Order.  Such Company Order may authorize authentication and delivery pursuant to oral or electronic instructions from the Company or its duly authorized agent or agents, which oral instructions shall be promptly confirmed in writing.  Each Security shall be dated the date of its authentication unless otherwise provided by a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate.  The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit placed upon the principal amount for such Series set forth in the applicable Board Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section 2.02, except as provided in Section 2.02 or 2.08.  Prior to the issuance of Securities of any Series, the Trustee shall have received and, subject to Section 7.02, shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officers’ Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officers’ Certificate complying with Section 10.04 and (c) an Opinion of Counsel complying with Section 10.04.  The Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not be taken lawfully; or (b) if the Trustee’s board of directors or trustees, executive committee or a trust committee of directors and/or vice-presidents shall determine in good faith that such action would expose the Trustee to personal liability to Holders of any then outstanding Series of Securities.  The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities.  An authenticating agent may authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company.

 

Section 2.04 Registrar and Paying Agent.

 

  The Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.02, an office or agency where Securities of such Series may be presented or surrendered for payment (“Paying Agent”), where Securities of such Series may be surrendered for registration of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served (“Service Agent”).  The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange.  The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Service Agent.  If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.  The Company may also from time to time designate one or more co-registrars, additional paying agents or additional service agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Service Agent in each place so specified pursuant to Section 2.02 for Securities of any Series for such purposes.  The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar, additional paying agent or additional service agent.  The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent; and the term “Service Agent” includes any additional service agent.  The Company hereby appoints the Trustee the initial Registrar, Paying Agent and Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued.

 

  

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Section 2.05 Paying Agent to Hold Money in Trust.

 

  The Company shall require each Paying Agent, other than the Trustee, to agree in writing that the Paying Agent will hold in trust, for the benefit of Holders of any Series of Securities or the Trustee, all money held by the Paying Agent for the payment of the principal of or the interest on the Series of Securities, and will notify the Trustee of any default by the Company in making any such payment.  While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee.  The Company may, at any time, require a Paying Agent to pay all money held by it to the Trustee.  Upon payment to the Trustee, the Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further liability for such money.  If the Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate and hold in a separate trust fund, for the benefit of Holders of any Series of Securities, all money held by it as Paying Agent.

 

Section 2.06 Holder Lists.

 

  The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Holders of each Series of Securities and shall otherwise comply with TIA Section 312(a).  If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten (10) days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Holders of each Series of Securities.

 

Section 2.07 Transfer and Exchange.

 

  Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met.  To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request.  No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Section 2.11, 3.06 or 9.06).  Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of or exchange Securities of any Series for the period beginning at the opening of business fifteen days immediately preceding the mailing of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on the day of such mailing, or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

 

  

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Section 2.08 Mutilated, Destroyed, Lost and Stolen Securities.

 

(a) If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and make available for delivery in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.  If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a protected purchaser, the Company shall execute and, upon its request, the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.  In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

 

(b) Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.  Every new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder.  The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

Section 2.09 Outstanding Securities.

 

  The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.  If a Security is replaced pursuant to Section 2.08, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a protected purchaser.  If the Paying Agent (other than the Company, a Subsidiary of the Company or an Affiliate of the Company) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue.  A Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security.  In determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.02.

 

  

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Section 2.10 Treasury Securities.

 

  In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver, Securities of a Series owned by the Company shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Securities of a Series that the Trustee knows are so owned shall be so disregarded.

 

Section 2.11 Temporary Securities.

 

  Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order.  Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall prepare and the Trustee upon request shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities.  Until so exchanged, temporary securities shall have the same rights under this Indenture as the definitive Securities.

 

Section 2.12 Cancellation.

 

  The Company at any time may deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment, replacement or cancellation in accordance with its customary procedures and deliver such canceled Securities to the Company, unless the Company otherwise directs; provided that the Trustee shall not be required to destroy Securities.  The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation.

 

Section 2.13 Defaulted Interest.

 

  If the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Holders of the Series on a subsequent special record date.  The Company shall fix the record date and payment date.  At least ten (10) days before the record date, the Company shall mail to the Trustee and to each Holder of the Series a notice that states the record date, the payment date and the amount of interest to be paid.  The Company may pay defaulted interest in any other lawful manner.

 

Section 2.14 Global Securities

 

(a) Terms of Securities.  A Board Resolution, a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depository for such Global Security or Securities.

 

  

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(b) Transfer and Exchange.  Notwithstanding any provisions to the contrary contained in Section 2.07 of the Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.07 of the Indenture for Securities registered in the names of Holders other than the Depository for such Security or its nominee only if (i) such Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global Security or if at any time such Depository ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depository registered as a clearing agency under the Exchange Act within 90 days of such event, (ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Security shall be so exchangeable or (iii) an Event of Default with respect to the Securities represented by such Global Security shall have happened and be continuing.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depository shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms.

 

(c) Except as provided in this Section 2.14(c), a Global Security may not be transferred except as a whole by the Depository with respect to such Global Security to a nominee of such Depository, by a nominee of such Depository to such Depository or another nominee of such Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.

 

(d) Legend.  Any Global Security issued hereunder shall bear a legend in substantially the following form:

 

(e) “This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depository or a nominee of the Depository.  This Security is exchangeable for Securities registered in the name of a person other than the Depository or its nominee only in the limited circumstances described in the Indenture, and may not be transferred except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.”

 

(f) Acts of Holders.  The Depository, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture.

 

(g) Payments.  Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.02, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

 

(h) Consents, Declaration and Directions.  Except as provided in Section 2.14(g), the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depository with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.

 

  

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(i) The Depository or its nominee, as registered owner of a Global Security, shall be the Holder of such Global Security for all purposes under the Indenture and the Securities, and owners of beneficial interests in a Global Security shall hold such interests pursuant to the Applicable Procedures.  Accordingly, any such owner’s beneficial interest in a Global Security will be shown only on, and the transfer of such interest shall be effected only through, records maintained by the Depositary or its nominee and such owners of beneficial interests in a Global Security will not be considered the owners or holders thereof.

 

Section 2.15  CUSIP Numbers.

 

  The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.  The Company shall promptly notify the Trustee of any change in “CUSIP” numbers of which the Company becomes aware.

 

 

ARTICLE III

REDEMPTION

 

Section 3.01 Notice to Trustee.

 

  The Company may, with respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities.  If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of the redemption date and the principal amount of Series of Securities to be redeemed.

 

Section 3.02 Selection of Securities to be Redeemed.

 

  Unless otherwise indicated fora particular Series by a Board Resolution, a supplemental indenture or an Officers’ Certificate, if less than all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that the Trustee deems fair and appropriate.  The Trustee shall make the selection from Securities of the Series outstanding not previously called for redemption.  The Trustee may select for redemption portions of the principal of Securities of the Series that have denominations larger than $1,000.  Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations pursuant to Section 2.02(j), the minimum principal denomination for each Series and integral multiples thereof Provisions of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series called for redemption.

 

Section 3.03 Notice of Redemption.

 

  

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(a) Unless otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, at least 30 days but not more than 60 days before a redemption date, the Company shall send or cause to be sent, by electronic delivery, if held at DTC, or by first class mail postage prepaid, a notice of redemption to each Holder whose Securities are to be redeemed and, if any Bearer Securities are outstanding, publish on one occasion a notice in an Authorized Newspaper.  The notice shall identify the Securities of the Series to be redeemed and shall state:

 

(i) the redemption date;

 

(ii) the redemption price;

 

(iii) the name and address of the Paying Agent;

 

(iv) that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(v) that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date;

 

(vi) the CUSIP number, if any; and (vii)  any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.

 

At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense.

 

Section 3.04 Effect of Notice of Redemption.

 

  Once notice of redemption is sent, mailed or published as provided in Section 3.03, Securities of a Series called for redemption become due and payable on the redemption date and at the redemption price.  A notice of redemption may not be conditional.  Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to the redemption date; provided that installments of interest whose Stated Maturity is on or prior to the redemption date shall be payable to the Holders of such Securities (or one or more predecessor Securities) registered at the close of business on the relevant record date therefor according to their terms and the terms of this Indenture.

 

Section 3.05 Deposit of Redemption Price.

 

  On or before 10:00 a.m., New York City time, on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

 

Section 3.06 Securities Redeemed in Part.

 

  Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

 

ARTICLE IV

COVENANTS

 

  

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Section 4.01 Payment of Principal and Interest.

 

  The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture.

 

Section 4.02 SEC Reports.

 

  The Company shall, so long as any of the Securities are outstanding, electronically file with the Commission the annual, quarterly and other periodic reports that the Company is required to file with the Commission pursuant to Sections 13 and 15(d) of the Exchange Act.  The Company also shall comply with the other provisions of TIA Section 314(a).  Delivery of any reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on an Officers’ Certificate).

 

Section 4.03 Compliance Certificate.

 

  The Company shall, so long as any of the Securities are outstanding, deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, an Officers’ Certificate stating whether or not to the knowledge of the signers thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions hereof (without regard to any period of grace or requirement of notice provided hereunder), and if a Default or Event of Default shall have occurred, specifying all such Defaults or Events of Default and the nature and status thereof of which they may have knowledge.  The Company shall, so long as any of the Securities are outstanding, deliver to the Trustee, within thirty (30) days after becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.04 Stay, Extension and Usury Laws.

 

  The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead or in any manner whatsoever claim or take the benefit or advantage of any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture or the Securities and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted.

 

ARTICLE V

SUCCESSORS

 

Section 5.01 When Company May Merge, Etc.

 

  The Company shall not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, any person (a “successor person”) unless:

 

(a) the Company is the surviving corporation or the successor person (if other than the Company) is organized and validly existing under the laws of any U.S. domestic jurisdiction and expressly assumes the Company’s obligations on the Securities and under this Indenture; and

 

  

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(b) immediately after giving effect to the transaction, no Default or Event of Default shall have occurred and be continuing.

 

The Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and any supplemental indenture comply with this Indenture.

 

Section 5.02 Successor Corporation Substituted.

 

  Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.01, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of the Company under this Indenture with the same effect as if such successor person has been named as the Company herein; provided, however, that the predecessor Company in the case of a sale, conveyance or other disposition (other than a lease) shall be released from all obligations and covenants under this Indenture and the Securities.

 

ARTICLE VI

DEFAULTS AND REMEDIES

 

Section 6.01 Events of Default.

 

“Event of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental indenture or Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

 

(a) default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of thirty (30) days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to the expiration of such period of thirty (30) days);

 

(b) default in the payment of principal of any Security of that Series at its Maturity;

 

(c) default in the performance or breach of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty for which the consequences of nonperformance or breach are addressed elsewhere in this Section 6.01 and other than a covenant or warranty that has been included in this Indenture solely for the benefit of Series of Securities other than that Series), which default continues uncured for a period of ninety (90) days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of not less than a majority in principal amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;

 

(d) the Company pursuant to or within the meaning of any Bankruptcy Law.  (i) commences a voluntary case or proceeding; (ii) consents to the entry of an order for relief against it in an involuntary case, (iii)consents to the appointment of a Custodian of it or for all or substantially all of its property, (iv)makes a general assignment for the benefit of its creditors, or (v) makes an admission by writing that it is generally unable to pay its debts as the same become due;

 

  

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(e) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: (i) is for relief against the Company in an involuntary case, (ii) appoints a Custodian of the Company or for all or substantially all of its property, or (iii) orders the liquidation of the Company, and the order or decree remains unstayed and in effect for ninety (90) days; or

 

(f) any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, in accordance with Section 2.02(n).

 

The term “Bankruptcy Law” means Title 11 of the U.S. Code or any similar federal or state law for the relief of debtors.  The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

Section 6.02 Acceleration of Maturity; Rescission and Annulment.

 

  If an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 6.1(d) or (e)), then in every such case the Trustee or the Holders of not less than a majority in principal amount of the outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable.  If an Event of Default specified in Section 6.1(d) or (e) shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.  At any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding Securities of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal and interest, if any, of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13.  No such rescission shall affect any subsequent Default or impair any right consequent thereon.

 

Section 6.03 Collection of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that if:

 

(a) default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or

 

(b) default is made in the payment of principal of any Security at the Maturity thereof, then the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal and any overdue interest at the rate or rates prescribed therefor in such Securities and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

  

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If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

 

If an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such Series 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 this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

Section 6.04 Trustee May File Proofs of Claim.

 

  In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise, (a) to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and (b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07.  Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.05 Trustee May Enforce Claims Without Possession of Securities.

 

  All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

  

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Section 6.06 Application of Money Collected.

 

Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

 

First: To the payment of all amounts due the Trustee under Section 7.07; and

 

Second: To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and interest, respectively; and

 

Third: To the Company.

 

Section 6.07 Limitation on Suits.

 

  No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

 

(a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that Series;

 

(b) the Holders of at least a majority in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder,

 

(c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request;

 

(d) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

 

(e) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the outstanding Securities of that Series; it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders.

 

  

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Section 6.08 Unconditional Right of Holders to Receive Principal and Interest.

 

  Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

Section 6.09 Restoration of Rights and Remedies.

 

  If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

Section 6.10 Rights and Remedies Cumulative.

 

  Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.08, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not, to the extent permitted by law, prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section 6.11 Delay or Omission Not Waiver.

 

  No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.  Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section 6.12 Control by Holders.

 

  The Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series, provided that:

 

(a) such direction shall not be in conflict with any rule of law or with this Indenture,

 

(b) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and

 

(c) subject to the provisions of Section 6.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability.

 

Section 6.13 Waiver of Past Defaults.

 

  The Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default (i) in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration) or (ii) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each outstanding Security of such Series affected.  Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

 

  

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Section 6.14 Undertaking for Costs.

 

  All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date).

 

ARTICLE VII

TRUSTEE

 

Section 7.01 Duties of Trustee.

 

(a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

 

(b) Except during the continuance of an Event of Default:

 

(i) The Trustee need perform only those duties that are specifically set forth in this Indenture and no others.

 

(ii) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon Officers’ Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officers’ Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officers’ Certificates and Opinions of Counsel to determine whether or not they conform to the requirements of this Indenture.

 

 

  

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(c) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(i) This paragraph does not limit the effect of paragraph (b) of this Section.

 

(ii) The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts.

 

(iii) The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series.

 

(d) Every provision of this Indenture that in any way relates to the Trustee is subject to paragraph (a), (b) and (c) of this Section.

 

(e) The Trustee may refuse to perform any duty or exercise any right or power at the request or direction of any Holder unless it receives indemnity satisfactory to it against any loss, liability or expense.

 

(f) The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing  with the Company.  Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

(g) No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the performance of any of its duties, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk is not reasonably assured to it.

 

(h) The Paying Agent, the Registrar and any Service Agent or authenticating agent shall be entitled to the protections, immunities and standard of care as are set forth in paragraphs (a), (b) and (c) of this Section with respect to the Trustee.

 

Section 7.02 Rights of Trustee.

 

(a) The Trustee may rely on and shall be protected in acting or refraining from acting upon any document believed by it to be genuine and to have been signed or presented by the proper person.  The Trustee need not investigate any fact or matter stated in the document.

 

(b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate.  The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate.

 

  

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(c) The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.  No Depository shall be deemed an agent of the Trustee, and the Trustee shall not be responsible for any act or omission by any Depository.

 

(d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers, provided that the Trustee’s conduct does not constitute negligence or bad faith.

 

(e) The Trustee may consult with counsel, and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder without negligence and in good faith and in reliance thereon.

 

(f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders of Securities unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

(g) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit.

 

(h) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or the Securities of a particular Series and this Indenture.

 

(i) The permissive rights of the Trustee enumerated herein shall not be construed as duties.

 

Section 7.03 Individual Rights of Trustee.

 

  The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate of the Company with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights.  The Trustee is also subject to Sections 7.10 and 7.11.

 

Section 7.04 Trustee’s Disclaimer.

 

  The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.

 

Section 7.05 Notice of Defaults.

 

  If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Holder of the Securities of that Series and, if any Bearer Securities are outstanding, publish on one occasion in an Authorized Newspaper, notice of a Default or Event of Default within ninety (90) days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or Event of Default.  Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as its corporate trust committee or a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Holders of that Series.

 

  

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Section 7.06 Reports by Trustee to Holders.

 

  Within sixty (60) days after May 15 in each year, the Trustee shall transmit by mail to all Holders, as their names and addresses appear on the register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an Authorized Newspaper, a brief report dated as of such May 15, in accordance with, and to the extent required under, TIA Section 313.  A copy of each report at the time of its mailing to Holders of any Series shall be filed with the SEC and each stock exchange on which the Securities of that Series are listed.  The Company shall promptly notify the Trustee when Securities of any Series are listed on any stock exchange.

 

Section 7.07 Compensation and Indemnity.

 

  The Company shall pay to the Trustee from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon in writing.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it.  Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.  The Company shall indemnify each of the Trustee and any predecessor Trustee against any loss, liability or expense (including the cost of defending itself), including taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it except as set forth in this Section 7.07 in the performance of its duties under this Indenture as Trustee or Agent.  The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.  The Company shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have one separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld.  This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.  The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through the negligence or bad faith of any such persons.  To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities of that Series.  When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(d) or (e) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.  The provisions of this Section shall survive the resignation or removal of the Trustee and the termination of this Indenture.

 

Section 7.08 Replacement of Trustee.

 

  A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.  The Trustee may resign with respect to the Securities of one or more Series by so notifying the Company at least 30 days prior to the date of the proposed resignation.  The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and the Company.  The Company may remove the Trustee with respect to Securities of one or more Series if:

 

(a) the Trustee fails to comply with Section 7.10;

 

(b) the Trustee is adjudged bankrupt or insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law,

 

  

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(c) a Custodian or public officer takes charge of the Trustee or its property; or

 

(d) the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee.

 

If a successor Trustee with respect to the Securities of any one or more Series does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least a majority in principal amount of the Securities of the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.07, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture.  A successor Trustee shall mail a notice of its succession to each Holder of each such Series and, if any Bearer Securities are outstanding, publish such notice on one occasion in an Authorized Newspaper.  Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities incurred by it prior to the date of such replacement.

 

Section 7.09 Successor Trustee by Merger, etc.

 

  If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee.

 

Section 7.10 Eligibility; Disqualification.

 

  This Indenture shall always have a Trustee who satisfies the requirements of TIA Section 310(a)(1), (2) and (5).  The Trustee shall comply with TIA Section 310(b).

 

Section 7.11 Preferential Collection of Claims Against Company.

 

  The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b).  A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.

 

ARTICLE VIII

SATISFACTION AND DISCHARGE; DEFEASANCE

 

  

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Section 8.01 Satisfaction and Discharge of Indenture.

 

This Indenture shall upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.01), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

 

(a) any of the following shall have occurred:

 

(i) no Securities have been issued hereunder,

 

(ii) all Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or

 

(iii) all such Securities not theretofore delivered to the Trustee for cancellation (1) have become due and payable, or (2) will become due and payable at their Stated Maturity within one year, or (3) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company; and the Company has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption date, as the case may be;

 

(b) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

 

(c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.07 and, if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.04 , 2.05 , 2.07, 2.08, 8.01, 8.02 and 8.05 shall survive.

 

Section 8.02 Application of Trust Funds; Indemnification.

 

(a) Subject to the provisions of Section 8.05, all money deposited with the Trustee pursuant to Section 8.01, all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.03 or 8.04 and all money received by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.03 or 8.04, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (other than the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such money has been deposited with or received by the Trustee or analogous payments as contemplated by Sections 8.03 or 8.04.

 

  

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(b) The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations or Foreign Government Obligations deposited pursuant to Sections 8.03 or 8.04 or the interest and principal received in respect of such obligations other than any payable by or on behalf of Holders.

 

(c) The Trustee shall deliver or pay to the Company from time to time upon Company Request any U.S. Government Obligations or Foreign Government Obligations or money held by it as provided in Sections 8.03 or 8.04 which, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or Foreign Government Obligations or money were deposited or received.  This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture.

 

Section 8.03 Legal Defeasance of Securities of any Series.

 

  Unless this Section 8.03 is otherwise specified, pursuant to Section 2.02(s), to be inapplicable to Securities of any Series, the Company shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof and the provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, at Company Request, execute proper instruments acknowledging the same), except as to:

 

(a) the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (d) hereof, (i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Stated Maturity of such principal or installment of principal or interest, and (ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the Securities of such Series; and

 

(b) the provisions of Sections 2.04, 2.05, 2.07, 2.08, 8.02, 8.03 and 8.05; and

 

(c) the rights, powers, trust and immunities of the Trustee hereunder, provided that, the following conditions shall have been satisfied:

 

(d) with reference to this Section 8.03, the Company shall have deposited or caused to be irrevocably deposited (except as provided in Section 8.02(c)) with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of all the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;

 

  

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(e) such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

 

(f) no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 91st day after such date;

 

(g) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income, gain or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amounts and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred;

 

(h) the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the Company or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company;

 

(i) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with; and

 

(j) such defeasance shall not result in the trust arising from such deposit constituting an investment company within the meaning of the Investment Company Act of 1940, as amended, unless such trust shall be registered under such Act or exempt from registration thereunder.

 

Section 8.04 Covenant Defeasance.

 

  Unless this Section 8.04 is otherwise specified, pursuant to Section 2.02(s), to be inapplicable to Securities of any Series, on and after the 91st day after the date of the deposit referred to in subparagraph (a) hereof; the Company may omit to comply with respect to the Securities of any Series with any term, provision or condition set forth under Sections 4.02, 4.03, and 5.01 as well as any additional covenants specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.02 (and the failure to comply with any such covenants shall not constitute a Default or Event of Default with respect to such Series under Section 6.01) and the occurrence of any event specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.02 and designated as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect to the Securities of such Series, provided that the following conditions shall have been satisfied:

 

  

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(a) with reference to this Section 8.04, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.02(c)) with the Trustee as trust funds in trust for the purpose of making the following payments specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;

 

(b) such deposit will not result in a breach or violation of or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

 

(c) no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 91st day after such date;

 

(d) the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit and covenant defeasance had not occurred;

 

(e) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the covenant defeasance contemplated by this Section have been complied with; and

 

(f) Such defeasance shall not result in the trust arising from such deposit constituting an investment company within the meaning of the Investment Company Act of 1940, as amended, unless such trust shall be registered under such Act or exempt from registration thereunder.

 

Section 8.05 Repayment to Company.

 

  The Trustee and the Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal and interest that remains unclaimed for two years, and after such time, Holders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

 

  

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Section 8.06 Reinstatement.

 

  If the Trustee or the Paying Agent is unable to apply any money deposited with respect to Securities of any series in accordance with Section 8.01 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the obligations of the Company under this Indenture with respect to the Securities of such series and under the Securities of such series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with Section 8.01; provided, however, that if the Company has made any payment of principal of, premium (if any) or interest on any Additional Amounts with respect to any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or the Paying Agent.

 

ARTICLE IX

AMENDMENTS AND WAIVERS

 

Section 9.01 Without Consent of Holders.

 

  The Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Holder:

 

(a) to evidence the succession of another person to the Company under this Indenture and the Securities and the assumption by any such successor person of the obligations of the Company hereunder and under the Securities;

 

(b) to add or remove covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included for the benefit of such series) or to surrender any right or power herein conferred upon the Company provided such action does not adversely affect the interests of the Company;

 

(c) to add any additional Events of Default;

 

(d) to add to or change any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the issuance of Securities in bearer form, registrable or not registrable as to principal, and with or without interest coupons, or to permit or facilitate the issuance of Securities in uncertificated form;

 

(e) to add to, change or eliminate any of the provisions of this Indenture in respect of one or more series of Securities, provided that any such addition, change or elimination (A) shall neither (i) apply to any Security of any series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor (ii) modify the rights of the Holder of any such Security with respect to such provision or (B) shall become effective only when there is no such Security Outstanding;

 

(f) to establish the forms or terms of the Securities of any series issued pursuant to the terms hereof;

 

(g) to cure any ambiguity or correct any inconsistency in this Indenture;

 

  

32

  

 

(h) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee;

 

(i) to qualify this Indenture under the Trust Indenture Act;

 

(j) to provide for uncertificated securities in addition to certificated securities;

 

(k) to supplement any provisions of this Indenture necessary to permit or facilitate the defeasance and discharge of any series of Securities, provided that such action does not adversely affect the interests of the Holders of Securities of such series or any other series; and

 

(l) to comply with the rules or regulations of any securities exchange or automated quotation system on which any of the Securities may be listed or traded.

 

Section 9.02 With Consent of Holders.

 

  The Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Holders of each such Series.  Except as provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of any Series by notice to the Trustee (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series.  It shall not be necessary for the consent of the Holders of Securities under this Section 9.02 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof.  After a supplemental indenture or waiver under this section becomes effective, the Company shall mail to the Holders of Securities affected thereby and, if any Bearer Securities affected thereby are outstanding, publish on one occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture or waiver.  Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.

 

Section 9.03 Limitations.

 

  Without the consent of each Holder affected, an amendment or waiver may not:

 

(a) reduce the amount of Securities whose Holders must consent to an amendment, supplement or waiver;

 

(b) reduce the rate of or extend the time for payment of interest (including default interest) on any Security;

 

(c) reduce the principal or change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

 

  

33

  

 

(d) reduce the principal amount of Discount Securities payable upon acceleration of the maturity thereof;

 

(e) waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration);

 

(f) make the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security;

 

(g) make any change in Sections 6.08, 6.13, or 9.03; or

 

(h) waive a redemption payment with respect to any Security.

 

Section 9.04 Compliance with Trust Indenture Act.

 

  Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect.

 

Section 9.05 Revocation and Effect of Consents.

 

  Until an amendment is set forth in a supplemental indenture or a waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security.  However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date of the supplemental indenture or the date the waiver becomes effective.  Any amendment or waiver once effective shall bind every Holder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (h) of Section 9.03.  In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

 

Section 9.06 Notation on or Exchange of Securities.

 

  The Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated.  The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that Series that reflect the amendment or waiver.

 

Section 9.07 Trustee Protected.

 

  In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, in addition to the documents required by Section 10.04, and (subject to Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture.  The Trustee shall sign all supplemental indentures, except that the Trustee need not sign any supplemental indenture that adversely affects its rights.

 

ARTICLE X

MISCELLANEOUS

 

  

34

  

 

Section 10.01 Trust Indenture Act Controls.

 

  If any provision of this Indenture limits, qualifies or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control.

 

Section 10.02 Notices.

 

(a) Any notice or communication by the Company or the Trustee to the other, or by a Holder to the Company or the Trustee, is duly given if in writing and delivered in person or mailed by first-class mail or sent by facsimile transmission addressed as follows:

 

if to the Company:

 

Palatin Technologies, Inc.

4B Cedar Brook Drive

Cranbury, New Jersey 08512

Attention: Chief Counsel

Telephone: (609) 495-2200

Facsimile: (609) 495-2202

if to the Trustee:

 

[               ]

 

(b) The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.  Any notice or communication to a Holder shall be mailed by first-class mail to his address shown on the register kept by the Registrar and, if any Bearer Securities are outstanding, published in an Authorized Newspaper.  Failure to mail a notice or communication to a Holder of any Series or any defect in it shall not affect its sufficiency with respect to other Holders of that or any other Series.  If a notice or communication is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Holder receives it.  If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee and each Agent at the same time.

 

(c) Any notice or demand that by any provision of this Indenture is required or permitted to be given or served by the Company may, at the Company’s written request received by the Trustee not fewer than five (5) Business Days prior (or such shorter period of time as may be acceptable to the Trustee) to the date on which such notice must be given or served, be given or served by the Trustee in the name of and at the expense of the Company.

 

Section 10.03 Communication by Holders with Other Holders.

 

  Holders of any Series may communicate pursuant to TIA Section 312(b) with other Holders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series.  The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c).

 

Section 10.04 Certificate and Opinion as to Conditions Precedent.

 

  Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

 

  

35

  

 

(a) an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(b) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

Section 10.05 Statements Required in Certificate or Opinion.

 

  Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and shall include:

 

(a) a statement that the person making such certificate or opinion has read such covenant or condition;

 

(b) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

 

(c) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(d) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

 

Section 10.06 Rules by Trustee and Agents.

 

  The Trustee may make reasonable rules for action by or a meeting of Holders of one or more Series.  Any Agent may make reasonable rules and set reasonable requirements for its functions.

 

Section 10.07 Legal Holidays.

 

  Unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular Series, a “Legal Holiday” is any day that is not a Business Day.  If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

Section 10.08 No Recourse Against Others.

 

  A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation.  Each Holder by accepting a Security waives and releases all such liability.  The waiver and release are part of the consideration for the issue of the Securities.

 

Section 10.09 Counterparts.

 

  This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

Section 10.10 Governing Laws.

 

  This Indenture and the Securities will be governed by, and construed in accordance with, the internal laws of the State of New York, without regard to conflict of law principles that would result in the application of any law other than the laws of the State of New York.

 

  

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Section 10.11 No Adverse Interpretation of Other Agreements.

 

  This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 10.12 Successors.

 

  All agreements of the Company in this Indenture and the Securities shall bind its successor.  All agreements of the Trustee in this Indenture shall bind its successor.

 

Section 10.13 Severability.

 

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

 

Section 10.14 Table of Contents, Headings, Etc.

 

  The Table of Contents, Cross-Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 10.15 Securities in a Foreign Currency.

 

  Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate delivered pursuant to Section 2.02 of this Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in a coin or currency other than Dollars, then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be that amount of Dollars that could be obtained for such amount at the Market Exchange Rate at such time.  For purposes of this Section 10.15, “Market Exchange Rate” shall mean the noon Dollar buying rate in New York City for cable transfers of that currency as published by the Federal Reserve Bank of New York.  If such Market Exchange Rate is not available for any reason with respect to such currency, the Trustee shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of New York as of the most recent available date, or quotations from one or more major banks in The City of New York or in the country of issue of the currency in question or such other quotations as the Trustee, upon consultation with the Company, shall deem appropriate.  The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.  All decisions and determinations of the Trustee regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole discretion and shall, in the absence of manifest error, to the extent permitted by law, be conclusive for all purposes and irrevocably binding upon the Company and all Holders.

 

Section 10.16 Judgment Currency.

 

  The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of any Series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture.  For purposes of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to close.

 

  

37

  

 

ARTICLE XI

SINKING FUNDS

 

Section 11.01 Applicability of Article.

 

  The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or required by any form of Security of such Series issued pursuant to this Indenture.  The minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “ mandatory sinking fund payment “ and any other amount provided for by the terms of Securities of such Series is herein referred to as an “ optional sinking fund payment .”If provided for by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.02.  Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.

 

Section 11.02 Satisfaction of Sinking Fund Payments with Securities.

 

  The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited.  Such Securities shall be received by the Trustee, together with an Officers’ Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.  If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.02, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

 

  

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Section 11.03 Redemption of Securities for Sinking Fund.

 

  Not less than 45 days (unless otherwise indicated in the Board Resolution, supplemental indenture or Officers’ Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof if any, which is to be satisfied by payment of cash and the portion thereof if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.02, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein specified.  Not less than 30 days (unless otherwise indicated in the Board Resolution, Officers’ Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.02 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.03.  Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.04, 3.05 and 3.06.

 

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed and attested, all as of the day and year first above written.

 

	 	
PALATIN TECHNOLOGIES, INC.

	 
	 	 	 	 
	 	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

	 	[                           ], as Trustee	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

	  	  

 

39Exhibit 4.1

 

 

_______________________________________

 

LLOYDS BANK PLC

 

as Issuer,

 

LLOYDS BANKING GROUP PLC

 

as Guarantor,

 

and

 

THE BANK OF NEW YORK MELLON,

acting through its London Branch

 

as Trustee

 

_______________________________________

 

SIXTH SUPPLEMENTAL INDENTURE

 

dated as of August 17, 2015

 

to

 

THE SENIOR DEBT SECURITIES INDENTURE

 

dated as of January 21, 2011

 

_______________________________________

 

    	 

    	 

    

SIXTH SUPPLEMENTAL INDENTURE (“Sixth Supplemental Indenture”),
dated as of August 17, 2015, among LLOYDS BANK PLC, a corporation incorporated in England and Wales with registered number 2065,
as issuer (the “Company”), LLOYDS BANKING GROUP PLC, a corporation incorporated in Scotland with registered
number 95000, as guarantor (the “Guarantor”) and THE BANK OF NEW YORK MELLON, acting through its London Branch,
as trustee (the “Trustee”).

 

WITNESSETH

 

WHEREAS, the Company, the Guarantor and
the Trustee have executed and delivered a Senior Debt Securities Indenture dated as of January 21, 2011 (the “Senior Indenture,”
and together with this Sixth Supplemental Indenture, the “Indenture”) to provide for the issuance of the Company’s
Senior Debt Securities, including the Securities (as defined below).

 

WHEREAS, Section 9.01(d) of the Senior Indenture
permits the Company, the Guarantor and the Trustee to add to, change or eliminate any provisions of the Senior Indenture without
the consent of Holders as permitted under Sections 2.01 and 3.01 of the Senior Indenture, subject to certain conditions;

 

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

 

WHEREAS, there are no debt securities Outstanding
of any series created prior to the execution of this Sixth Supplemental Indenture which are entitled to the benefit of the provisions
set forth herein or would be adversely affected by such provisions;

 

WHEREAS, the Board of Directors and the
Guarantor board of directors have authorized the entry into this Sixth Supplemental Indenture, as required by Section 9.01 of the
Senior Indenture;

 

WHEREAS, the parties hereto desire to establish,
as further series of Senior Debt Securities under the Base Indenture, $700,000,000 2.000% Senior Notes due 2018 (the “2018
Fixed Rate Senior Notes”), $1,000,000,000 2.700% Senior Notes due 2020 (the “2020 Fixed Rate Senior Notes”
and, together with the 2018 Fixed Rate Senior Notes, the “Fixed Rate Senior Notes”) and $300,000,000
Floating Rate Notes due 2018 (the “Floating Rate Notes” and, together with the Fixed Rate Senior Notes, the
“Securities”) and the Guarantees to be endorsed thereon pursuant to Sections 2.01 and 3.01 of the Senior Indenture.
The Securities may be issued from time to time and any Securities issued as part of any series will constitute a single series
of Securities under the Indenture and shall be included in the definition of “Securities” where the context requires;

 

WHEREAS, the Company and the Guarantor have
requested that the Trustee execute and deliver this Sixth Supplemental Indenture and whereas all actions required by it to be taken
in order to make this Sixth Supplemental Indenture a valid, binding and

    1

     

    

 

enforceable instrument in accordance with its terms, have
been taken and performed, and the execution and delivery of this Sixth Supplemental Indenture has been duly authorized in all respects;
and

 

WHEREAS, where indicated, this Sixth Supplemental
Indenture shall amend and supplement the Senior Indenture; to the extent that the terms of the Senior Indenture are inconsistent
with such provisions of this Sixth Supplemental Indenture, the terms of this Sixth Supplemental Indenture shall govern.

 

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

 

ARTICLE 1

DEFINITIONS

 

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

 

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

 

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

 

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

 

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

 

(e)for the purposes of this Sixth Supplemental
Indenture and the Senior Indenture, the term “series” shall mean a series of Securities.

 

ARTICLE 2

FORM OF SECURITIES AND GUARANTEE

 

Section 2.01. Terms
of the 2018 Fixed Rate Senior Notes.

 

(a) The title of the
2018 Fixed Rate Senior Notes shall be the “2.000% Senior Notes due 2018”;

 

    2

     

    

(b) The aggregate principal
amount of the 2018 Fixed Rate Senior Notes that may be authenticated and delivered under the Indenture shall not exceed $700,000,000,
except as otherwise provided in the Indenture;

 

(c) Principal on the
2018 Fixed Rate Senior Notes shall be payable on August 17, 2018;

 

(d) The 2018 Fixed
Rate Senior Notes shall be issued in global registered form on August 17, 2015 and shall bear interest from August 17, 2015 payable
semi-annually in arrears on February 17 and August 17 (each, an “Interest Payment Date”), commencing February
17, 2016. The 2018 Fixed Rate Senior Notes shall bear an annual interest rate of 2.000%;

 

Interest on the 2018
Fixed Rate Senior Notes will be calculated 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. The Regular Record Dates for the 2018 Fixed Rate
Senior Notes will be 15 calendar days immediately preceding the relevant Interest Payment Date, whether or not a Business Day;

 

(e) No premium, upon
redemption or otherwise, shall be payable by the Company on the 2018 Fixed Rate Senior Notes;

 

(f) Principal of and
any interest on the 2018 Fixed Rate Senior Notes shall be paid to the Holder through The Bank of New York Mellon, as paying agent
of the Company having offices in London, United Kingdom;

 

(g) The 2018 Fixed
Rate Senior Notes may be redeemable pursuant to Section 11.08 of the Senior Indenture. In connection with any redemption of the
2018 Fixed Rate Senior Notes pursuant to Section 11.08 of the Senior Indenture, the date referenced therein shall be August 17,
2015;

 

(h) The Company shall
have no obligation to redeem or purchase the 2018 Fixed Rate Senior Notes pursuant to any sinking fund or analogous provision;

 

(i) The 2018 Fixed
Rate Senior Notes shall be issued only in denominations of $200,000 and in integral multiples of $1,000 in excess thereof;

 

(j) The principal amount
of the 2018 Fixed Rate Senior Notes shall be payable upon the declaration of acceleration thereof pursuant to Section 5.02 of the
Senior Indenture;

 

(k) The 2018 Fixed
Rate Senior Notes shall not be converted into or exchanged at the option of the Company or otherwise for stock or other securities
of the Company;

 

(l) The 2018 Fixed
Rate Senior Notes shall be denominated in, and payments thereon shall be made in, U.S. Dollars;

 

(m) The payment of
principal of (and premium, if any) or interest, if any, on the 2018 Fixed Rate Senior Notes shall be payable only in the coin or
currency in which the 2018 Fixed Rate Senior Notes are denominated;

 

(n) The 2018 Fixed
Rate Senior Notes will be issued in the form of one or more global securities in registered form, without coupons attached, and
the initial Holder with

    3

     

    

 

respect to each such global security shall be Cede & Co., as nominee of The Depository Trust Company;

 

(o) The 2018 Fixed
Rate Senior Notes will not be initially issued in definitive form;

 

(p) There is no Calculation
Agent for the 2018 Fixed Rate Senior Notes;

 

(q) The Events of Default
on the 2018 Fixed Rate Senior Notes are as provided for in the Senior Indenture;

 

(r) The form of the
2018 Fixed Rate Senior Notes to be issued on the date hereof and the Guarantee to be endorsed on the 2018 Fixed Rate Senior Notes
shall be substantially in the form of Exhibit A hereto;

 

(s) The Company may
issue additional 2018 Fixed Rate Senior Notes (“Additional Notes”) after the date hereof having the same ranking
and same interest rate, maturity date, redemption terms and other terms as the 2018 Fixed Rate Senior Notes except for the price
to the public, issue date and first interest payment date, provided that such Additional Notes must be fungible with the outstanding
2018 Fixed Rate Senior Notes for U.S. federal income tax purposes. Any such Additional Notes, together with the 2018 Fixed Rate
Senior Notes will constitute a single series of securities under the Indenture;

 

(t) Additional Amounts
in respect of the 2018 Fixed Rate Senior Notes shall be payable as set forth in the Senior Indenture, as supplemented by this Sixth
Supplemental Indenture.

 

Section 2.02. Terms
of the 2020 Fixed Rate Senior Notes.

 

(a) The title of the
2020 Fixed Rate Senior Notes shall be the “2.700% Senior Notes due 2020”;

 

(b) The aggregate principal
amount of the 2020 Fixed Rate Senior Notes that may be authenticated and delivered under the Indenture shall not exceed $1,000,000,000,
except as otherwise provided in the Indenture;

 

(c) Principal on the
2020 Fixed Rate Senior Notes shall be payable on August 17, 2020;

 

(d) The 2020 Fixed
Rate Senior Notes shall be issued in global registered form on August 17, 2015 and shall bear interest from August 17, 2015 payable
semi-annually in arrears on February 17 and August 17 (each, an “Interest Payment Date”), commencing February
17, 2016. The 2020 Fixed Rate Senior Notes shall bear an annual interest rate of 2.700%;

 

    4

     

    

Interest on the 2020
Fixed Rate Senior Notes will be calculated 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. The Regular Record Dates for the 2020 Fixed Rate
Senior Notes will be 15 calendar days immediately preceding the relevant Interest Payment Date, whether or not a Business Day;

 

(e) No premium, upon
redemption or otherwise, shall be payable by the Company on the 2020 Fixed Rate Senior Notes;

 

(f) Principal of and
any interest on the 2020 Fixed Rate Senior Notes shall be paid to the Holder through The Bank of New York Mellon, as paying agent
of the Company having offices in London, United Kingdom;

 

(g) The 2020 Fixed
Rate Senior Notes may be redeemable pursuant to Section 11.08 of the Senior Indenture. In connection with any redemption of the
2020 Fixed Rate Senior Notes pursuant to Section 11.08 of the Senior Indenture, the date referenced therein shall be August 17,
2015;

 

(h) The Company shall
have no obligation to redeem or purchase the 2020 Fixed Rate Senior Notes pursuant to any sinking fund or analogous provision;

 

(i) The 2020 Fixed
Rate Senior Notes shall be issued only in denominations of $200,000 and in integral multiples of $1,000 in excess thereof;

 

(j) The principal amount
of the 2020 Fixed Rate Senior Notes shall be payable upon the declaration of acceleration thereof pursuant to Section 5.02 of the
Senior Indenture;

 

(k) The 2020 Fixed
Rate Senior Notes shall not be converted into or exchanged at the option of the Company or otherwise for stock or other securities
of the Company;

 

(l) The 2020 Fixed
Rate Senior Notes shall be denominated in, and payments thereon shall be made in, U.S. Dollars;

 

(m) The payment of
principal of (and premium, if any) or interest, if any, on the 2020 Fixed Rate Senior Notes shall be payable only in the coin or
currency in which the 2020 Fixed Rate Senior Notes are denominated;

 

(n) The 2020 Fixed
Rate Senior Notes will be issued in the form of one or more global securities in registered form, without coupons attached, and
the initial Holder with respect to each such global security shall be Cede & Co., as nominee of The Depository Trust Company;

 

(o) The 2020 Fixed
Rate Senior Notes will not be initially issued in definitive form;

 

    5

     

    

(p) There is no Calculation
Agent for the 2020 Fixed Rate Senior Notes;

 

(q) The Events of Default
on the 2020 Fixed Rate Senior Notes are as provided for in the Senior Indenture;

 

(r) The form of the
2020 Fixed Rate Senior Notes to be issued on the date hereof and the Guarantee to be endorsed on the 2020 Fixed Rate Senior Notes
shall be substantially in the form of Exhibit B hereto;

 

(s) The Company may
issue additional 2020 Fixed Rate Senior Notes (“Additional Notes”) after the date hereof having the same ranking
and same interest rate, maturity date, redemption terms and other terms as the 2020 Fixed Rate Senior Notes except for the price
to the public, issue date and first interest payment date, provided that such Additional Notes must be fungible with the outstanding
2020 Fixed Rate Senior Notes for U.S. federal income tax purposes. Any such Additional Notes, together with the 2020 Fixed Rate
Senior Notes will constitute a single series of securities under the Indenture;

 

(t) Additional Amounts
in respect of the 2020 Fixed Rate Senior Notes shall be payable as set forth in the Senior Indenture, as supplemented by this Sixth
Supplemental Indenture.

 

Section 2.03. Terms
of the Floating Rate Notes.

 

(a) The title of the
Floating Rate Notes shall be the “Floating Rate Notes due 2018”;

 

(b) The aggregate principal
amount of the Floating Rate Notes that may be authenticated and delivered under the Indenture shall not exceed $300,000,000, except
as otherwise provided in the Indenture;

 

(c) Principal on the
Floating Rate Notes shall be payable on August 17, 2018;

 

(d) The Floating Rate
Notes shall be issued in global registered form on August 17, 2015.

 

The interest rate for
the Floating Rate Notes for the first Floating Rate Interest Period (as defined below) will be LIBOR (as defined below) as determined
on August 13, 2015 plus the Spread. The interest rate for each subsequent Floating Rate Interest Period will be LIBOR as determined
on the applicable Interest Determination Date (as defined below) plus the Spread, in each case calculated on the basis of a 360-day
year and the actual number of days elapsed. The Spread is 78 basis points.

 

The initial Floating
Rate Interest Payment Date (as defined below) will fall on November 17, 2015. Thereafter, interest on the Floating Rate Notes will
be paid quarterly in arrears on February 17, May 17, August 17 and November 17, of each year (together

    6

     

    

 

with the initial interest
payment date, each a “Floating Rate Interest Payment Date”). However, if a Floating Rate Interest Payment Date
would fall on a day that is not a business day, other than the interest payment date that is also the date of maturity, the Floating
Rate Interest Payment Date will be postponed to the next succeeding day that is a business day and interest thereon will continue
to accrue, except that if the business day falls in the next succeeding calendar month, the applicable Floating Rate Interest Payment
Date will be the immediately preceding business day. In each such case, except for the Floating Rate Interest Payment Date falling
on the maturity date, the Floating Rate Interest Periods and the Interest Reset Dates (as defined below) will be adjusted accordingly
to calculate the amount of interest payable on the notes.

 

The interest rate will
be reset on each Floating Rate Interest Payment Date (together with the initial interest reset date, each an “Interest
Reset Date”). However, if any Interest Reset Date would otherwise be a day that is not a business day, that Interest
Reset Date will be postponed to the next succeeding day that is a business day, except that if the business day falls in the next
succeeding calendar month, the applicable Interest Reset Date will be the immediately preceding business day.

 

Interest will be paid
on the Floating Rate Notes to Holders of record of each Floating Rate Note in respect of the principal amount thereof as at the
15th calendar day prior to the relevant Floating Rate Interest Payment Date.

 

The first interest
period will begin on and include August 17, 2015 and will end on and exclude November 17, 2015. Thereafter, the interest period
will be the periods from and including a Floating Rate Interest Payment Date to but excluding the immediately succeeding Floating
Rate Interest Payment Date (together with the first interest period, each a “Floating Rate Interest Period”).
However, the final Floating Rate Interest Period will be the period from and including the Floating Rate Interest Payment Date
immediately preceding the Maturity Date to but excluding the Maturity Date.

 

The calculation agent
in respect of the Floating Rate Notes will determine LIBOR (as defined below) for each Floating Rate Interest Period other than
the first Floating Rate Interest Period on the second day in which dealings in United States dollars are transacted or, with respect
to any future date, are expected to be transacted in the London interbank market (a “London Banking Day”) prior
to the first day of such Floating Rate Interest Period (an “Interest Determination Date”).

 

“LIBOR,”
with respect to a Floating Rate Interest Period, shall be the offered rate (expressed as a percentage per annum) for deposits of
U.S. dollars having a maturity of three months that appears on the Designated LIBOR Page (as defined below) as of 11:00 a.m., London
time.

 

If no rate appears
on the Designated LIBOR Page, LIBOR will be determined for such Interest Determination Date on the basis of the rates at approximately
11:00 a.m., London time, on such Interest Determination Date at which deposits in U.S. dollars are

    7

     

    

 

offered to prime banks in the
London inter-bank market by four major banks in such market selected by the calculation agent, after consultation with us, for
a term of three months and in a Representative Amount. The calculation agent will request that the principal London office of each
of such banks provide a quotation of its rate. If at least two such quotations are provided, LIBOR for such Floating Rate Interest
Period will be the arithmetic mean of such quotations. If fewer than two such quotations are provided, LIBOR for such Floating
Rate Interest Period will be the arithmetic mean of the rates quoted at approximately 11:00 a.m. in the City of New York on such
Interest Determination Date by three major banks in New York City, selected by the calculation agent, after consultation with us,
for loans in United States dollars to leading European banks, for a term of three months and in a Representative Amount. If at
least two such quotations are provided, LIBOR for such Floating Rate Interest Period will be the arithmetic mean of such quotations.
If fewer than two quotations are provided, then LIBOR for such Floating Rate Period will be LIBOR in effect with respect to the
immediately preceding Floating Rate Interest Period.

 

“Designated
LIBOR Page” means the Reuters Screen LIBOR01 display page, or any successor page, on Reuters or any successor service
(or any such other service(s) as may be nominated by the British Bankers’ Association for the purpose of displaying London
interbank offered rates for U.S. dollar deposits).

 

“Interest
Determination Date” for each Floating Rate Interest Period will be the second London Banking Day preceding the first
day of such Floating Rate Interest Period.

 

“London Banking
Day” is any day in which dealings in United States dollars are transacted or, with respect to any future date, are expected
to be transacted in the London interbank market.

 

“Representative
Amount” means an amount that in the judgment of the calculation agent is representative for a single transaction in U.S.
dollars in such market at such time.

 

All calculations of
the calculation agent, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and on
the Holders of the Floating Rate Notes.

 

All percentages resulting
from any of the above calculations will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point,
with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655))
and all dollar amounts used in or resulting from such calculations will be rounded to the nearest cent (with one-half cent being
rounded upwards).

 

The interest rate on
the Floating Rate Notes will in no event be higher than the maximum rate permitted by law.

    8

     

    

 

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

 

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

 

(g) The Floating Rate
Notes may be redeemable pursuant to Section 11.08 of the Senior Indenture. In connection with any redemption of the Floating Rate
Notes pursuant to Section 11.08 of the Senior Indenture, the date referenced therein shall be August 17, 2015;

 

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

 

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

 

(j) The principal amount
of the Floating Rate Notes shall be payable upon the declaration of acceleration thereof pursuant to Section 5.02 of the Senior
Indenture;

 

(k) The Floating Rate
Notes shall not be converted into or exchanged at the option of the Company or otherwise for stock or other securities of the Company;

 

(l) The Floating Rate
Notes shall be denominated in, and payments thereon shall be made in, U.S. Dollars;

 

(m) The payment of
principal of (and premium, if any) or interest, if any, on the Floating Rate Notes shall be payable only in the coin or currency
in which the Floating Rate Notes are denominated;

 

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

 

(o) The Floating Rate
Notes will not be initially issued in definitive form;

 

(p) The Calculation
Agent for the Floating Rate Notes will be The Bank of New York Mellon pursuant to the terms of a Calculation Agency Agreement dated
August 17, 2015;

 

(q) The Events of Default
on the Floating Rate Notes are as provided for in the Senior Indenture;

    9

     

    

 

(r) The form of the
Floating Rate Notes to be issued on the date hereof and the Guarantee to be endorsed on the Floating Rate Notes shall be substantially
in the form of Exhibit C hereto;

 

(s) The Company may
issue additional Floating Rate Notes (“Additional Notes”) after the date hereof having the same ranking and
same interest rate, maturity date, redemption terms and other terms as the Floating Rate Notes except for the price to the public,
issue date and first interest payment date, provided that such Additional Notes must be fungible with the outstanding Floating
Rate Notes for U.S. federal income tax purposes. Any such Additional Notes, together with the Floating Rate Notes will constitute
a single series of securities under the Indenture;

 

(t) Additional Amounts
in respect of the Floating Rate Notes shall be payable as set forth in the Senior Indenture, as supplemented by this Sixth Supplemental
Indenture.

 

ARTICLE 3

ADDITIONAL TERMS APPLICABLE TO THE SECURITIES

 

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

 

“Beneficial
Owners” shall mean (a) if any Senior Debt Securities are in global form, the beneficial owners of the Senior Debt Securities
(and any interest therein) and (b) if the Senior Debt Securities are held in definitive form, the Holders in whose names the Senior
Debt Securities are registered in the Senior Debt Security Register and any beneficial owners holding an interest in such Senior
Debt Securities held in definitive form.

 

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

 

“U.K.
bail-in power” means 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 or other members of the Group, including but
not limited to any such laws, regulations, rules or requirements which are implemented, adopted or enacted within the context of
a European Union directive or regulation of the European Parliament and of the Council establishing a framework for the recovery
and resolution of credit institutions and investment firms and/or within the context of a U.K. resolution regime under to the Banking
Act 2009, as the same has been or may be amended from time to time (whether pursuant to the U.K. Financial Services (Banking Reform)
Act 2013, secondary legislation or otherwise, pursuant to which obligations of a bank, banking group company, credit institution

    10

     

    

 

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.

 

Section 3.02Events of Default.
With respect to the Securities only, Section 5.01 of the Senior Indenture is amended by adding the following sentence at the end
of the section:

 

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

 

Section 3.03. Compensation and Reimbursement.
With respect to the Securities only, Section 6.07 of the Senior Indenture is amended in part to add the following sentence at the
end of the section:

 

The Trustee’s right to reimbursement
and indemnity under this Section 6.07 shall survive the payment in full of the Senior Debt Securities, the discharge of this Senior
Debt Securities Indenture, the resignation or removal of the Trustee and any exercise of the U.K. bail-in power by the relevant
U.K. resolution authority with respect to the Senior Debt Securities.

 

Section 3.04. Agreement with Respect
to Exercise of U.K. Bail-In Power. The following provisions relate solely to the Securities established pursuant to this Sixth
Supplemental Indenture:

 

                      
(a)            
Notwithstanding any other agreements, arrangements, or understandings between us and any Holder or Beneficial Owner of the
Securities, by its acquisition of the Securities, each Holder and Beneficial Owner of the Securities acknowledges, accepts, agrees
to be bound by and consents to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority that may result
in (i) the reduction or cancellation of all, or a portion, of the principal amount of, or interest on, the Securities; (ii) the
conversion of all, or a portion, of the principal amount of, or interest on, the Securities 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 Securities,
or amendment of the amount of interest due on the Securities, 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 Securities
solely to give effect to the exercise by the relevant U.K. resolution authority of such U.K. bail-in power. Each Holder and Beneficial
Owner of the Securities further acknowledges and agrees that the rights of the Holders and/or Beneficial Owners under the Securities
are subject to, and will be varied, if necessary, solely to give effect to, the exercise of any U.K. bail-in power by the relevant
U.K. resolution authority.

 

                     
(b)            
By its acquisition of the Securities, each Holder and each Beneficial Owner of the Securities:

 

                                                    
(i)           
acknowledges and agrees that the exercise of the U.K. bail-in power by the relevant U.K. resolution authority in respect
of the Securities shall

    11

     

    

 

not give rise to a default or an Event of Default for purposes of Section 315(b) (Notice of Default)
and Section 315(c) (Duties of the Trustee in Case of Default) of the Trust Indenture Act;

 

                                                  
(ii)           
to the extent permitted by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate
a suit against the Trustee in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes,
or abstains from taking, in either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution
authority with respect to the Securities; 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 of the Securities under Section 5.12 of the Senior
Indenture, and (b) neither the Senior Indenture nor this 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, any
of the Securities 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 Securities), then the Trustee’s duties under the Indenture shall remain applicable with respect to
the Securities following such completion to the extent that the Company and the Trustee shall agree pursuant to a supplemental
indenture or an amendment to this Sixth Supplemental Indenture.

 

                      
(c)            
By its acquisition of the Securities, each Holder and Beneficial Owner that acquires its Securities 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 Securities that acquire the Securities upon their initial issuance, including,
without limitation, with respect to the acknowledgement and agreement to be bound by and consent to the terms of the Securities
related to the U.K. bail-in power.

 

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

 

                      
(e)            
No repayment of the principal amount of the Securities or payment of interest on the Securities 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

    12

     

    

 

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.

 

                      
(f)            
Upon the exercise of the U.K. bail-in power by the relevant U.K. resolution authority with respect to the Securities, 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.

 

ARTICLE 4

amendments to the senior indenture

 

Section 4.01. Appointment of Agent for
Service. With respect to any series of Senior Debt Securities issued under the Senior Indenture, including the Securities,
Section 1.14 of the Senior Indenture is amended and restated in its entirety and shall read as follows:

 

Section 1.14. Appointment of Agent for Service.
Each of the Company and the Guarantor has designated and appointed the Chief U.S. Counsel, Lloyds Bank plc (or any successor thereto),
currently of 1095 Avenue of the Americas, 34th Floor, New York, NY 10036 as its authorized
agent upon which process may be served in any suit or proceeding in any Federal or State court in the Borough of Manhattan, The
City of New York arising out of or relating to the Senior Debt Securities, this Senior Debt Securities Indenture or this Sixth
Supplemental Indenture, but for that purpose only, and agrees that service of process upon such authorized agent shall be deemed
in every respect effective service of process upon it in any such suit or proceeding in any Federal or State court in the Borough
of Manhattan, The City of New York, New York. Such appointment shall be irrevocable so long as any of the Senior Debt Securities
remain Outstanding until the appointment of a successor by the Company or the Guarantor and such successor’s acceptance of
such appointment. Upon such acceptance, the Company or the Guarantor shall notify the Trustee of the name and address of such successor.
Each of the Company and the Guarantor further agrees to take any and all action, including the execution and filing of any and
all such documents and instruments, as may be necessary to continue such designation and appointment of such authorized agent in
full force and effect so long as any of the Senior Debt Securities shall be Outstanding. The Trustee shall not be obligated and
shall have no responsibility with respect to any failure by the Company or the Guarantor to take any such action. Each of the Company
and the Guarantor hereby submits (for the purposes of any such suit or proceeding) to the jurisdiction of any such court in which
any such suit or proceeding is so instituted, and waives, to the extent it may effectively do so, any right to trial by jury and
any objection it may have now or hereafter to the laying of the venue of any such suit or proceeding.

    13

     

    

 

Section 4.02.Notices to Trustee.
With respect to any series of Senior Debt Securities issued under the Senior Indenture, including the Securities, Section 1.05(a)
of the Senior Indenture is amended and restated in part to read as follows:

 

Section 1.05. Notices, Etc. to Trustee, Company
and Guarantor. Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided
or permitted by the Senior Debt Securities Indenture or the Sixth Supplemental Indenture to be made upon, given or furnished to,
or filed with,

 

(a) the Trustee by any Holder or by the Company or
the Guarantor shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if made, given, furnished
or filed in writing (which may be via facsimile) to the Trustee at its Corporate Trust Office and the Trustee agrees to accept
and act upon facsimile transmission of written instructions pursuant to the Senior Debt Securities Indenture or the Sixth Supplemental
Indenture; provided, however, that (x) the party providing such written instructions, subsequent to such transmission of written
instructions, shall provide the originally executed instructions or directions to the Trustee in a timely manner, and (y) such
originally executed instructions or directions shall be signed by an authorized representative of the party providing such instructions
or directions; or

 

Section 4.03. Additional Amounts.
With respect to any series of Senior Debt Securities issued under the Senior Indenture, including the Securities, Section 10.04
of the Senior Indenture is hereby amended and replaced in its entirety as follows:

 

Section 10.04.Additional Amounts.
Amounts to be paid on any series of Senior Debt Securities or under the Guarantee 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 or the Guarantor, as the case may be, to make such deduction
or withholding, the Company, or the Guarantor, as the case may be, will pay additional amounts with respect to the principal of,
interest and any other payment on, the Senior Debt Securities (“Additional Amounts”) that are necessary in order
that the net amounts paid to the Holders of Senior Debt Securities of the particular series, after the deduction or withholding,
shall equal the amounts which would have been payable on the Senior Debt Securities 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 Senior Debt Security is a domiciliary, national or resident of, or engaging in business or maintaining a

    14

     

    

 

permanent
establishment or is physically present in, the Taxing Jurisdiction or otherwise has some connection with the Taxing Jurisdiction
other than the holding or ownership of a Senior Debt Security, or the collection of any payment of (or in respect of) principal
of, or any interest, or other payment on, any Senior Debt Security of the relevant series or under the Guarantee,

 

(ii) except in the case of winding-up
in the United Kingdom, the relevant Senior Debt Security is presented (where presentation is required) for payment in the United
Kingdom,

 

(iii) the relevant Senior Debt
Security 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 Senior Debt Security or the Beneficial Owner of any payment of (or in respect of) principal of or any interest
or other payment on, the Senior Debt Security failed to comply with a request of the Company or its liquidator or guarantor 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 relevant Senior Debt
Security 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 relevant Senior Debt Security to another paying agent,

 

(vii) the deduction or withholding
is imposed by reason of any agreement with the U.S. Internal Revenue Service in connection with Sections 1471-1474 of the U.S.
Internal Revenue Code and the U.S. Treasury regulations thereunder (“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,

    15

     

    

 

nor shall Additional Amounts
be paid with respect to the principal of or any interest or other payment on, the Senior Debt Securities or under the Guarantee
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 this Senior Debt
Securities Indenture there is mentioned, in any context, the payment of the principal of or any interest or other payments on,
in respect of, any Senior Debt Security 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 and/or the Guarantor, as the case may be, 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. Neither the Company,
the Guarantor, 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.

 

Section 4.04. Optional Redemption Due
to Changes in Tax Treatment. With respect to any series of Senior Debt Securities issued under the Senior Indenture, including
the Securities, Section 11.08 of the Senior Indenture is hereby amended in part to amend and restate the final paragraph in its
entirety, which shall read as follows:

 

Section 11.08 Optional
Redemption Due to Changes in Tax Treatment. In any case where the Company (or, if applicable, the Guarantor) shall determine
that as a result of any change in the official application or interpretation of any laws or regulations it is entitled to redeem
the Senior Debt Securities of any series, the Company (or, if applicable, the Guarantor) shall be required to deliver to the Trustee
prior to the giving of any notice of redemption (i) a written legal opinion of independent United Kingdom counsel of recognized
standing (selected by the Company or, if applicable, the Guarantor) in a form satisfactory to the Trustee confirming that the relevant
change in the application or interpretation of such laws or regulations has occurred and that the Company (or, if applicable, the
Guarantor) is entitled to exercise its right of redemption; and (ii) an Officer’s Certificate, evidencing compliance with
such provisions and stating that it is entitled to redeem the Senior Debt Securities pursuant to the terms of the Senior Debt Securities.

    16

     

    

 

ARTICLE 5

MISCELLANEOUS

 

Section 5.01.Effect Of Supplemental
Indenture. Upon the execution and delivery of this Sixth Supplemental Indenture by each of the Company, the Guarantor and the
Trustee, and the delivery of the documents referred to in Section 5.02 herein, the Senior Indenture shall be supplemented in accordance
herewith, and this Sixth Supplemental Indenture shall form a part of the Senior Indenture for all purposes in respect of the Securities
or otherwise as applicable.

 

Section 5.02.Other Documents to be
Given to the Trustee. The Trustee shall be entitled to receive an Officer’s Certificate and an Opinion of Counsel stating
the recitals contained in Section 1.02 of the Senior Indenture. As specified in Section 9.03 of the Senior Indenture and subject
to the provisions of Section 6.03 of the Senior Indenture, the Trustee shall also be entitled to receive an Opinion of Counsel
stating that that this Sixth Supplemental Indenture and the Securities whose terms are incorporated by reference herein are each,
subject to Section 1.03 of the Senior Indenture, a legal, valid and binding obligation of the Company and the Guarantor enforceable
in accordance with their terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting creditor’s rights generally, by equitable principles of general applicability
and by possible judicial actions giving effect to governmental actions or foreign laws affecting creditors’ rights, and the
Sixth Supplemental Indenture is permitted under the Indenture. The Trustee may rely on such Officer’s Certificate and Opinion
of Counsel as conclusive evidence that this Sixth Supplemental Indenture complies with the applicable provisions of the Senior
Indenture.

 

Section 5.03.Confirmation Of Indenture.
The Senior Indenture, as supplemented and amended by this Sixth Supplemental Indenture with respect to the Securities or otherwise
as applicable, is in all respects ratified and confirmed, and the Senior Indenture, this Sixth Supplemental Indenture and all indentures
supplemental thereto shall, in respect of the Securities or otherwise as applicable, be read, taken and construed as one and the
same instrument. This Sixth Supplemental Indenture constitutes an integral part of the Senior Indenture and, where applicable,
with respect to the Securities. In the event of a conflict between the terms and conditions of the Senior Indenture and the terms
and conditions of this Sixth Supplemental Indenture, the terms and conditions of this Sixth Supplemental Indenture shall prevail
where applicable.

 

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

 

Section 5.05.Governing Law. This
Sixth Supplemental Indenture, the Securities and the Guarantee shall be governed by and construed in accordance with the laws of
the

    17

     

    

 

State of New York, except that the authorization and execution by the Company and the Guarantor of this Sixth Supplemental
Indenture, the Securities and the Guarantee shall be governed by (in addition to the laws of the State of New York relevant to
execution) the respective jurisdictions of the Company, the Guarantor and the Trustee, as the case may be.

 

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

 

Section 5.07.Counterparts. This
Sixth Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts
shall together constitute but one and the same instrument.

 

[Signature Pages Follow]

 

    18

     

    

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

 

	 	 	LLOYDS BANK PLC, as Issuer	 
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

 

	 	 	LLOYDS BANKING GROUP PLC, 
as Guarantor	 
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

[Signature Page to Sixth Supplemental
Indenture]

 

    	 

    	 

    

 

	 	 	THE
BANK OF NEW YORK MELLON, 
as Trustee	 
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

[Signature Page to Sixth Supplemental
Indenture]  

 

    	 

    	 

    

EXHIBIT A

 

FORM OF 2018 FIXED
RATE SENIOR GLOBAL NOTE

 

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

 

CUSIP No. [●]

ISIN No. [●]

Common Code: [●]

 

LLOYDS BANK plc

 

[●]% SENIOR NOTE DUE 2018

 

Guaranteed by

LLOYDS BANKING GROUP plc

 

	No. [●]	$[●]

 

LLOYDS BANK 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 $[●] ([●] million dollars) on August [●],
2018 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 February [●] and August [●] of each year, commencing on February [●], 2016, and ending
on August [●], 2018 (each, a “Payment Date”). Interest so payable on any Payment Date shall be paid to the Holder
in whose name this Senior 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”). Any interest which is payable, but is not punctually paid or duly provided for, on any Payment Date is herein
called “Default Interest”. Default Interest shall

    A-1

     

    

 

cease to be payable to the registered Holder on the relevant Regular
Record Date by virtue then of having been such Holder, and such Default Interest may be paid by the Company, at its election in
each case, as provided in clause (x) or (y) below: (x) the Company may elect to make payment of any Default Interest to registered
Holders at the close of business on a Special Record Date (a “Special Record Date”) for the payment of such Default
Interest, such Special Record Date to be fixed in accordance with Section 3.07(a) of the Indenture or, (y) the Company may make
payment of any Default Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on
which this Note may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company
to the trustee of the proposed payment, such manner of payment shall be deemed practicable by the trustee.

 

Interest shall accrue on this Senior Note
from day to day from the date of issuance hereof or from the most recent Payment Date at the rate of [●]% per annum, until
the principal amount hereof is paid or made available for payment.

 

Payments of interest on this Senior 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 Senior Note will be made in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts. Such payment shall be made to the Holder including
through a Paying Agent of the Company outside the United Kingdom for collection by the Holder. 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 Senior
Note for registration of transfer, the Company, the trustee and any agent of the Company or the trustee may treat the Person in
whose name this Senior Note is registered as the owner of such Senior Note for the purpose of receiving payment of principal and
interest, if any, on such Senior Note and for all other purposes whatsoever, whether or not such Senior Note be overdue, and neither
the Company, the trustee nor any agent of the Company or the trustee shall be affected by notice to the contrary.

 

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

    A-2

     

    

 

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

 

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, this Senior Note; (ii) the conversion of all, or a portion, of the principal amount
of, or interest on, this Senior Note 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 this Senior Note, or amendment of the amount of interest due on this Senior
Note, or the dates on which interest becomes payable, including by suspending payment for a temporary period; which U.K. bail-in
power may be exercised by means of variation of the terms of this Senior Note solely to give effect to the exercise by the relevant
U.K. resolution authority of such U.K. bail-in power. Each Holder and Beneficial Owner of this Senior Note further acknowledges
and agrees that the rights of the Holders and/or Beneficial Owners under this Senior Note are subject to, and will be varied, if
necessary, solely to give effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.

 

For these purposes, 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 or other members of the Group, including but not limited
to any such laws, regulations, rules or requirements which are implemented, adopted or enacted within the context of a European
Union directive or regulation of the European Parliament and of the Council establishing a framework for the recovery and resolution
of credit institutions and investment firms and/or within the context of a U.K. resolution regime under the Banking Act 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).

 

[The rest of this
page is intentionally left blank]

 

    A-3

     

    

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

 

Dated: August [●], 2015 

 

	 	 	LLOYDS BANK PLC	 
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

 

 

[20[●] Fixed Rate Global Note No.
[●] Signature Page]

  

    A-4

     

    

GUARANTEE OF LLOYDS BANKING GROUP plc

 

LLOYDS BANKING GROUP plc (herein called the “Guarantor,”
which term includes any successor person under the Indenture (as defined on the reverse hereof)) hereby unconditionally guarantees
(the “Guarantee”) to each Holder of this Senior Note the due and punctual payment of the principal of, any premium
and interest on, and any Additional Amounts with respect to such Senior Note and the due and punctual payment of the sinking fund
payments (if any) provided for pursuant to the terms of such Senior Note and any and all amounts under the Indenture (including
but not limited to, the fees, expenses and indemnities of the Trustee), when and as the same shall become due and payable, whether
at maturity, by acceleration, redemption, repayment or otherwise, in accordance with the terms of such Senior Note and of the Indenture.
In case of the failure of the Company punctually to pay any such principal, premium, interest, Additional Amounts or sinking fund
payment and any and all amounts under the Indenture, (including but not limited to, the fees, expenses and indemnities of the Trustee)
the Guarantor hereby agrees to pay, or cause any such payment to be made, punctually when and as the same shall become due and
payable, whether at maturity, upon acceleration, redemption, repayment or otherwise, and as if such payment were made by the Company
in accordance with the terms of such Senior Note and of the Indenture.

 

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

 

    A-5

     

    

IN WITNESS WHEREOF, the Guarantor has caused
this guarantee to be duly executed.

 

Dated: August [●], 2015

 

 

	 	 	Executed by LLOYDS BANKING GROUP PLC
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

 

	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

[20[●] Fixed Rate Global Note No.
[●] Signature Page]

 

 

    A-6

     

    

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: August [●], 2015

 

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

 

 

[20[●] Fixed Rate Global Note No.
[●] Signature Page]

 

    A-7

     

    

[REVERSE OF SECURITY]

 

This Senior Note is one of a duly authorized
issue of securities of the Company (herein called the “Senior Notes”) issued and to be issued in one or more series
under a Senior Debt Securities Indenture, dated as of January 21, 2011 (herein called the “Senior Indenture”), among
the Company, as issuer, the Guarantor, as guarantor, and The Bank of New York Mellon, as trustee (herein called the “Trustee,”
which term includes any successor trustee under the Senior Indenture), as supplemented by the Sixth Supplemental Indenture dated
as of August [●], 2015, among the Company, the Guarantor and the Trustee (the “Sixth Supplemental Indenture”
and, together with the Senior 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 Guarantor, the Trustee and the Holders of the Senior Notes and of the terms upon which the Senior Notes are, and are
to be, authenticated and delivered.

 

This Senior Note is one of the series designated
on the face hereof, initially limited in aggregate principal amount to $[●]. The Company may, without the consent of the
Holders of the Senior Notes, issue additional notes having the same ranking and interest rate, maturity date, redemption terms
and other terms as the Senior Notes except for the price to the public, issue date and first interest payment date, provided that
such additional notes must be fungible with the outstanding Senior Notes for U.S. federal income tax purposes. Any such Senior
Notes, together with this Senior Note, will constitute a single series of securities under the Indenture. The Senior Notes will
initially be issued in the form of one or more global Senior Notes (each, a “Global Senior Note”). Except as provided
in the Indenture, a Global Senior Note shall not be exchangeable for one or more definitive Senior Notes.

 

The Senior Notes of this series will constitute
unsecured and unsubordinated obligations of the Company and the Guarantor, as described herein, and will rank pari passu
without any preference among themselves.

 

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

 

If an Event of Default with respect to the
Senior Notes of this series shall have occurred and be continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of Holders of Senior Notes by such

    A-8

     

    

 

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 Indenture or in
aid of the exercise of any power granted thereon, or to enforce any other proper remedy, including the institution of proceedings
in England or Scotland (but not elsewhere) for the winding up of the Company or the Guarantor, respectively.

 

By acceptance of the Senior Notes of this
Series, the Holder will be deemed to have waived any right of set-off or counterclaim with respect to such Senior Notes that they
might otherwise have against the Company or the Guarantor, whether before or during a winding-up of the Company or the Guarantor.

 

Amounts to be paid on the Senior Notes of
this Series or under the guarantee 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, 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 or the Guarantor, as the case may be, to make such deduction or withholding, the Company, or the Guarantor, as the case
may be, will pay additional amounts with respect to the principal of, and interest and any other payments on, the Senior Notes
of this series (“Additional Amounts”) that are necessary in order that the net amounts paid to the Holders, after the
deduction or withholding, shall equal the amounts which would have been payable on the Senior 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 Senior Note is a domiciliary, national or resident of, or engaging in business or maintaining a permanent establishment or
is physically present in, the Taxing Jurisdiction or otherwise has some connection with the Taxing Jurisdiction other than the
holding or ownership of a Senior Note, or the collection of any payment of (or in respect of) principal of, or interest or other
payments on, any Senior Note or under the guarantee,

 

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

 

(iii) the relevant Senior Note is presented
(where presentation is required) for payment more than 30 days after the date payment became due or was provided for, whichever
is later, except to the extent that the Holder would have

    A-9

     

    

 

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 Senior Note or the Beneficial Owner of any payment of (or in respect of) principal of, or interest or other payments
on, the Senior Note failed to comply with a request of the Company or its liquidator or guarantor or other authorized person addressed
to the Holder (x) to provide information concerning the nationality, residence or identity of the Holder or such Beneficial Owner
or (y) to make any declaration or other similar claim to satisfy any requirement, which in the case of (x) or (y), is required
or imposed by a statute, treaty, regulation or administrative practice of the 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 Senior Note is presented (where
presentation is required) for payment by or on behalf of a Holder who would have been able to avoid such withholding or deduction
by presenting the Senior Note to another paying agent in a Member State of the European Union,

 

(vii) the deduction or withholding is imposed
by reason of any agreement with the U.S. Internal Revenue Service in connection with Sections 1471-1474 of the U.S. Internal Revenue
Code and the U.S. Treasury regulations thereunder (“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 clauses (i) through
(vii) above,

 

nor shall Additional Amounts be paid with respect to the principal
of, or any interest or other payments on, the Senior Note or under the Guarantee 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.

    A-10

     

    

 

References
herein to the payment of the principal of or interest or other payments on any Senior Note shall be deemed to include mention
of the payment of Additional Amounts provided for in the foregoing paragraph to the extent that, in such context, Additional Amounts
are, were or would be payable under the foregoing provisions.

 

The Senior Notes of this series are redeemable,
as a whole but not in part, at the option of the Company or the Guarantor, on not less than 30 nor more than 60 days’ notice,
on any Payment Date, at a redemption price equal to 100% of the principal amount, together with accrued but unpaid interest, in
respect of the Senior Notes to the date fixed for redemption, if, at any time, the Company or, if applicable, the Guarantor shall
determine that as a result of a change in or amendment to the laws or regulations of the Taxing Jurisdiction (including any treaty
to which such Taxing Jurisdiction is a party), or any change in the application or interpretation of such laws or regulations (including
a decision of any court or tribunal) which change or amendment becomes effective on or after August [●], 2015:

 

(a) in making payment under the Senior Notes
the Company (or, if applicable, the Guarantor) has or will or would on the next Payment Date become obligated to pay Additional
Amounts;

 

(b) the payment of interest on the next
Payment Date in respect of any of the Senior Notes would be treated as a “distribution” within the meaning of Chapter
2 of Part 23 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory modification or re-enactment thereof for the
time being); or

 

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

 

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

    A-11

     

    

 

If the Company (or, if applicable, the Guarantor)
elects to redeem the Senior Notes of this series, the Senior 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 (or, if applicable, the Guarantor’s)
obligations in respect of the payment of the principal of (and premium, if any), and accrued and unpaid interest on, the Senior
Notes of this series shall terminate.

 

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

 

By its acquisition of the Senior Notes,
each Holder and Beneficial Owner of the Securities:

 

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

 

(ii) to the extent permitted
by the Trust Indenture Act, waives any and all claims against the Trustee for, agrees not to initiate a suit against the Trustee
in respect of, and agrees that the Trustee shall not be liable for, any action that the Trustee takes, or abstains from taking,
in

    A-12

     

    

 

either case in accordance with the exercise of the U.K. bail-in power by the relevant U.K. resolution authority with respect
to the Senior Notes; and

 

(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 of the Senior Notes under Section 5.12 of the Senior Indenture, and (b) neither the
Senior 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 Senior Notes remain outstanding (for example,
if the exercise of the U.K. bail-in power results in only a partial write-down of the principal of the Senior Notes), then the
Trustee’s duties under the Indenture shall remain applicable with respect to the Senior Notes following such completion to
the extent that the Company and the Trustee shall agree pursuant to a supplemental indenture or an amendment to the Sixth Supplemental
Indenture.

 

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

 

By its acquisition of the Senior Notes,
each Holder and Beneficial Owner shall be deemed to have (i) consented to the exercise of any U.K. bail-in power as it may be imposed
without any prior notice by the relevant U.K. resolution authority of its decision to exercise such power with respect to the Senior
Notes and (ii) authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it
holds such Senior Notes to take any and all necessary action, if required, to implement the exercise of any U.K. bail-in power
with respect to the Senior Notes as it may be imposed, without any further action or direction on the part of such Holder or Beneficial
Owner.

 

No repayment of the principal amount of
the Senior Notes or payment of interest on the Senior Notes shall become due and payable after the exercise of any U.K. bail-in
power by the relevant U.K. resolution authority unless, at the

    A-13

     

    

 

time that such repayment or payment, respectively, is scheduled
to become due, such repayment or payment would be permitted to be made by the Company under the laws and regulations of the United
Kingdom and the European Union applicable to the Company and the Group.

 

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

 

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

 

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

 

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

 

No
reference herein to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the right of the
Holder of this Senior Note, which is absolute and unconditional,
to receive payment of the principal of (and

    A-14

     

    

 

premium, if any) and interest on, this Senior Note when due and payable in accordance
with the provisions of this Senior Note and the Indenture.

 

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

 

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

 

    A-15

     

    

EXHIBIT B

 

FORM OF 2020 FIXED
RATE SENIOR GLOBAL NOTE

 

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

 

CUSIP No. [●]

ISIN No. [●]

Common Code: [●]

 

LLOYDS BANK plc

 

[●]% SENIOR NOTE DUE 2020

 

Guaranteed by

LLOYDS BANKING GROUP plc

 

	No. [●]	$[●]

 

LLOYDS BANK 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 $[●] ([●] million dollars)] on August [●],
2020 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 February [●] and August [●] of each year, commencing on February [●], 2016, and ending
on August [●], 2020 (each, a “Payment Date”). Interest so payable on any Payment Date shall be paid to the Holder
in whose name this Senior 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”). Any interest which is payable, but is not punctually paid or duly provided for, on any Payment Date is herein
called “Default Interest”. Default

    B-1

     

    

 

Interest shall cease to be payable to the registered Holder on the relevant Regular
Record Date by virtue then of having been such Holder, and such Default Interest may be paid by the Company, at its election in
each case, as provided in clause (x) or (y) below: (x) the Company may elect to make payment of any Default Interest to registered
Holders at the close of business on a Special Record Date (a “Special Record Date”) for the payment of such Default
Interest, such Special Record Date to be fixed in accordance with Section 3.07(a) of the Indenture or, (y) the Company may make
payment of any Default Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on
which this Note may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company
to the trustee of the proposed payment, such manner of payment shall be deemed practicable by the trustee.

 

Interest shall accrue on this Senior Note
from day to day from the date of issuance hereof or from the most recent Payment Date at the rate of [●]% per annum, until
the principal amount hereof is paid or made available for payment.

 

Payments of interest on this Senior 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 Senior Note will be made in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts. Such payment shall be made to the Holder including
through a Paying Agent of the Company outside the United Kingdom for collection by the Holder. 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 Senior
Note for registration of transfer, the Company, the trustee and any agent of the Company or the trustee may treat the Person in
whose name this Senior Note is registered as the owner of such Senior Note for the purpose of receiving payment of principal and
interest, if any, on such Senior Note and for all other purposes whatsoever, whether or not such Senior Note be overdue, and neither
the Company, the trustee nor any agent of the Company or the trustee shall be affected by notice to the contrary.

 

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

    B-2

     

    

 

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

 

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, this Senior Note; (ii) the conversion of all, or a portion, of the principal amount
of, or interest on, this Senior Note 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 this Senior Note, or amendment of the amount of interest due on this Senior
Note, or the dates on which interest becomes payable, including by suspending payment for a temporary period; which U.K. bail-in
power may be exercised by means of variation of the terms of this Senior Note solely to give effect to the exercise by the relevant
U.K. resolution authority of such U.K. bail-in power. Each Holder and Beneficial Owner of this Senior Note further acknowledges
and agrees that the rights of the Holders and/or Beneficial Owners under this Senior Note are subject to, and will be varied, if
necessary, solely to give effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.

 

For these purposes, 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 or other members of the Group, including but not limited
to any such laws, regulations, rules or requirements which are implemented, adopted or enacted within the context of a European
Union directive or regulation of the European Parliament and of the Council establishing a framework for the recovery and resolution
of credit institutions and investment firms and/or within the context of a U.K. resolution regime under the Banking Act 2009, as
the same has been or may be amended from time to time (whether pursuant to the U.K. Financial Services (Banking Reform) Act 2013
(the “Banking Reform Act 2013”), secondary legislation, or otherwise, the “Banking Act), pursuant to which 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).

 

[The rest of this
page is intentionally left blank]

 

    B-3

     

    

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

 

Dated: August [●], 2015 

 

	 	 	LLOYDS BANK PLC	 
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

 

 

 

[20[●]Fixed Rate Global Note No.
[●] Signature Page]

 

 

    B-4

     

    

GUARANTEE OF LLOYDS BANKING GROUP plc

 

LLOYDS BANKING GROUP plc (herein called the “Guarantor,”
which term includes any successor person under the Indenture (as defined on the reverse hereof)) hereby unconditionally guarantees
(the “Guarantee”) to each Holder of this Senior Note the due and punctual payment of the principal of, any premium
and interest on, and any Additional Amounts with respect to such Senior Note and the due and punctual payment of the sinking fund
payments (if any) provided for pursuant to the terms of such Senior Note and any and all amounts under the Indenture (including
but not limited to, the fees, expenses and indemnities of the Trustee), when and as the same shall become due and payable, whether
at maturity, by acceleration, redemption, repayment or otherwise, in accordance with the terms of such Senior Note and of the Indenture.
In case of the failure of the Company punctually to pay any such principal, premium, interest, Additional Amounts or sinking fund
payment and any and all amounts under the Indenture, (including but not limited to, the fees, expenses and indemnities of the Trustee)
the Guarantor hereby agrees to pay, or cause any such payment to be made, punctually when and as the same shall become due and
payable, whether at maturity, upon acceleration, redemption, repayment or otherwise, and as if such payment were made by the Company
in accordance with the terms of such Senior Note and of the Indenture.

 

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

 

    B-5

     

    

IN WITNESS WHEREOF, the Guarantor has caused
this guarantee to be duly executed.

 

Dated: August [●], 2015

 

	 	 	Executed by LLOYDS BANKING GROUP PLC
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

 

	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

 

 

[20[●] Fixed Rate Global Note No.
[●] Signature Page]

 

 

    B-6

     

    

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: August [●], 2015

 

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

 

 

 

[20[●] Fixed Rate Global Note No.
[●] Signature Page]

 

    B-7

     

    

[REVERSE OF SECURITY]

 

This Senior Note is one of a duly authorized
issue of securities of the Company (herein called the “Senior Notes”) issued and to be issued in one or more series
under a Senior Debt Securities Indenture, dated as of January 21, 2011 (herein called the “Senior Indenture”), among
the Company, as issuer, the Guarantor, as guarantor, and The Bank of New York Mellon, as trustee (herein called the “Trustee,”
which term includes any successor trustee under the Senior Indenture), as supplemented by the Sixth Supplemental Indenture dated
as of August [●], 2015, among the Company, the Guarantor and the Trustee (the “Sixth Supplemental Indenture”
and, together with the Senior 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 Guarantor, the Trustee and the Holders of the Senior Notes and of the terms upon which the Senior Notes are, and are
to be, authenticated and delivered.

 

This Senior Note is one of the series designated
on the face hereof, initially limited in aggregate principal amount to $[●]. The Company may, without the consent of the
Holders of the Senior Notes, issue additional notes having the same ranking and interest rate, maturity date, redemption terms
and other terms as the Senior Notes except for the price to the public, issue date and first interest payment date, provided that
such additional notes must be fungible with the outstanding Senior Notes for U.S. federal income tax purposes. Any such Senior
Notes, together with this Senior Note, will constitute a single series of securities under the Indenture. The Senior Notes will
initially be issued in the form of one or more global Senior Notes (each, a “Global Senior Note”). Except as provided
in the Indenture, a Global Senior Note shall not be exchangeable for one or more definitive Senior Notes.

 

The Senior Notes of this series will constitute
unsecured and unsubordinated obligations of the Company and the Guarantor, as described herein, and will rank pari passu
without any preference among themselves.

 

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

 

If an Event of Default with respect to the
Senior Notes of this series shall have occurred and be continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of Holders of Senior 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 Indenture or in
aid of the exercise of any power granted thereon, or to enforce any other proper remedy, including the institution of proceedings
in England or Scotland (but not elsewhere) for the winding up of the Company or the Guarantor, respectively.

    B-8

     

    

 

By acceptance of the Senior Notes of this
Series, the Holder will be deemed to have waived any right of set-off or counterclaim with respect to such Senior Notes that they
might otherwise have against the Company or the Guarantor, whether before or during a winding-up of the Company or the Guarantor.

 

Amounts to be paid on the Senior Notes of
this Series or under the guarantee 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, 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 or the Guarantor, as the case may be, to make such deduction or withholding, the Company, or the Guarantor, as the case
may be, will pay additional amounts with respect to the principal of, and interest and any other payments on, the Senior Notes
of this series (“Additional Amounts”) that are necessary in order that the net amounts paid to the Holders, after the
deduction or withholding, shall equal the amounts which would have been payable on the Senior 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 Senior Note is a domiciliary, national or resident of, or engaging in business or maintaining a permanent establishment or
is physically present in, the Taxing Jurisdiction or otherwise has some connection with the Taxing Jurisdiction other than the
holding or ownership of a Senior Note, or the collection of any payment of (or in respect of) principal of, or interest or other
payments on, any Senior Note or under the guarantee,

 

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

 

(iii) the relevant Senior Note is presented
(where presentation is required) for payment more than 30 days after the date payment became due or was provided for, whichever
is later, except to the extent that the Holder would have been entitled to 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 Senior Note or the Beneficial Owner of any payment of (or in respect of) principal of, or interest or other payments
on, the Senior Note failed to comply with a request of the Company or its liquidator or guarantor or other authorized person addressed
to the Holder (x) to provide information concerning the nationality, residence or identity of the Holder or such Beneficial Owner
or (y) to make any declaration or other similar claim to satisfy any requirement, which in the case of (x) or (y), is required
or imposed by a statute, treaty, regulation or administrative practice of the 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

    B-9

     

    

 

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

 

(vii) the deduction or withholding is imposed
by reason of any agreement with the U.S. Internal Revenue Service in connection with Sections 1471-1474 of the U.S. Internal Revenue
Code and the U.S. Treasury regulations thereunder (“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 clauses (i) through
(vii) above,

 

nor shall Additional Amounts be paid with respect to the principal
of, or any interest or other payments on, the Senior Note or under the Guarantee 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.

 

References
herein to the payment of the principal of or interest or other payments on any Senior Note shall be deemed to include mention
of the payment of Additional Amounts provided for in the foregoing paragraph to the extent that, in such context, Additional Amounts
are, were or would be payable under the foregoing provisions.

 

The Senior Notes of this series are redeemable,
as a whole but not in part, at the option of the Company or the Guarantor, on not less than 30 nor more than 60 days’ notice,
on any Payment Date, at a redemption price equal to 100% of the principal amount, together with accrued but unpaid interest, in
respect of the Senior Notes to the date fixed for redemption, if, at any time, the Company or, if applicable, the Guarantor shall
determine that as a result of a change in or amendment to the laws or regulations of the Taxing Jurisdiction (including any treaty
to which such Taxing Jurisdiction is a party), or any change in the application or interpretation of such laws or regulations (including
a decision of any court or tribunal) which change or amendment becomes effective on or after August [●], 2015:

 

(a) in making payment under the Senior Notes
the Company (or, if applicable, the Guarantor) has or will or would on the next Payment Date become obligated to pay Additional
Amounts;

 

(b) the payment of interest on the next
Payment Date in respect of any of the Senior Notes would be treated as a “distribution” within the meaning of Chapter
2 of Part 23 of the

    B-10

     

    

 

Corporation Tax Act 2010 of the United Kingdom (or any statutory modification or re-enactment thereof for the
time being); or

 

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

 

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

 

If the Company (or, if applicable, the Guarantor)
elects to redeem the Senior Notes of this series, the Senior 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 (or, if applicable, the Guarantor’s)
obligations in respect of the payment of the principal of (and premium, if any), and accrued and unpaid interest on, the Senior
Notes of this series shall terminate.

 

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

 

By its acquisition of the Senior Notes,
each Holder and Beneficial Owner of the Securities:

    B-11

     

    

 

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

 

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

 

(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 of the Senior Notes under Section 5.12 of the Senior Indenture, and (b) neither the
Senior 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 Senior Notes remain outstanding (for example,
if the exercise of the U.K. bail-in power results in only a partial write-down of the principal of the Senior Notes), then the
Trustee’s duties under the Indenture shall remain applicable with respect to the Senior Notes following such completion to
the extent that the Company and the Trustee shall agree pursuant to a supplemental indenture or an amendment to the Sixth Supplemental
Indenture.

 

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

 

By its acquisition of the Senior Notes,
each Holder and Beneficial Owner shall be deemed to have (i) consented to the exercise of any U.K. bail-in power as it may be imposed
without any prior notice by the relevant U.K. resolution authority of its decision to exercise such power with respect to the Senior
Notes and (ii) authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it
holds such Senior Notes to take any and all necessary action, if required, to implement the exercise of any U.K. bail-in power
with respect to the Senior Notes as it may be imposed, without any further action or direction on the part of such Holder or Beneficial
Owner.

 

No repayment of the principal amount of
the Senior Notes or payment of interest on the Senior Notes shall become due and payable after the exercise of any U.K. bail-in
power by the relevant U.K. resolution authority unless, at the time that such repayment or

    B-12

     

    

 

payment, respectively, is scheduled
to become due, such repayment or payment would be permitted to be made by the Company under the laws and regulations of the United
Kingdom and the European Union applicable to the Company and the Group.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    B-13

     

    

EXHIBIT C

 

FORM OF THE FLOATING
RATE GLOBAL NOTE

 

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

 

CUSIP
No. [●]

ISIN
No. [●]

Common
Code: [●]

 

LLOYDS BANK plc

 

FLOATING RATE NOTE DUE 2018

 

Guaranteed
by

LLOYDS BANKING GROUP plc

 

	No. [●]	$[●]

 

LLOYDS
BANK 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
$[●] ([●] million dollars) on August [●], 2018 or on such earlier date as the principal hereof may become due
in accordance with the terms hereof and to pay interest thereon quarterly in arrears on February [●], May [●], August
[●] and November [●], of each year, commencing on November [●], 2015, and ending on August [●], 2018 (each,
a “Floating Rate Interest Payment Date”). Interest so payable on any Floating Rate Interest Payment Date shall be
paid to the Holder in whose name this Senior Note is registered on the 15th calendar day immediately
preceding the relevant Floating Rate Interest Payment Date.

 

Any
interest which is payable, but is not punctually paid or duly provided for, on any Floating Rate Interest Payment Date is herein
called “Default Interest”. Default Interest shall cease to be payable to the registered Holder on the relevant Regular
Record Date by virtue then of having been such Holder, and such Default Interest may be paid by the Company, at its election in
each case, as

    C-1

     

    

 

provided
in clause (x) or (y) below: (x) the Company may elect to make payment of any Default Interest to registered Holders at the close
of business on a Special Record Date (a “Special Record Date”) for the payment of such Default Interest, such Special
Record Date to be fixed in accordance with Section 3.07(a) of the Indenture or, (y) the Company may make payment of any Default
Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which this Note may be
listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the trustee of the
proposed payment, such manner of payment shall be deemed practicable by the trustee.

 

Interest
shall accrue on this Senior Note from day to day from the date of issuance hereof until the principal amount hereof is paid or
made available for payment.

 

Payment
of the principal amount of (and premium, if any), and any interest on, this Senior Note will be made in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and private debts. Such payment
shall be made to the Holder including through a Paying Agent of the Company outside the United Kingdom for collection by the Holder.
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 Senior Note for registration of transfer, the Company, the trustee and any agent of the Company or
the trustee may treat the Person in whose name this Senior Note is registered as the owner of such Senior Note for the purpose
of receiving payment of principal and interest, if any, on such Senior Note and for all other purposes whatsoever, whether or
not such Senior Note be overdue, and neither the Company, the trustee nor any agent of the Company or the trustee shall be affected
by notice to the contrary.

 

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

 

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

 

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,

    C-2

     

    

 

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

 

For
these purposes, 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 or other
members of the Group, including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted
or enacted within the context of a European Union directive or regulation of the European Parliament and of the Council establishing
a framework for the recovery and resolution of credit institutions and investment firms and/or within the context of a U.K. resolution
regime under the Banking Act 2009, as the same has been or may be amended from time to time (whether pursuant to the U.K. Financial
Services (Banking Reform) Act 2013 (the “Banking Reform Act 2013”), secondary legislation or otherwise), 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).

 

[The rest of this page is intentionally left
blank]

 

    C-3

     

    

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

 

Dated:
August [●], 2015

 

	 	 	LLOYDS BANK
PLC	 
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

 

 

[2018 Floating Rate Global Note Signature
Page]

 

 

    C-4

     

    

GUARANTEE OF LLOYDS BANKING GROUP plc

 

LLOYDS BANKING GROUP plc (herein called the “Guarantor,”
which term includes any successor person under the Indenture (as defined on the reverse hereof)) hereby unconditionally guarantees
(the “Guarantee”) to each Holder of this Senior Note the due and punctual payment of the principal of, any premium
and interest on, and any Additional Amounts with respect to such Senior Note and the due and punctual payment of the sinking fund
payments (if any) provided for pursuant to the terms of such Senior Note and any and all amounts under the Indenture (including
but not limited to, the fees, expenses and indemnities of the Trustee), when and as the same shall become due and payable, whether
at maturity, by acceleration, redemption, repayment or otherwise, in accordance with the terms of such Senior Note and of the Indenture.
In case of the failure of the Company punctually to pay any such principal, premium, interest, Additional Amounts or sinking fund
payment and any and all amounts under the Indenture, (including but not limited to, the fees, expenses and indemnities of the Trustee)
the Guarantor hereby agrees to pay, or cause any such payment to be made, punctually when and as the same shall become due and
payable, whether at maturity, upon acceleration, redemption, repayment or otherwise, and as if such payment were made by the Company
in accordance with the terms of such Senior Note and of the Indenture.

 

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

 

    C-5

     

    

IN WITNESS WHEREOF,
the Guarantor has caused
this guarantee
to be duly executed.

 

Dated:
August [●], 2015

 

	 	 	Executed by LLOYDS BANKING GROUP PLC
	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	Name:	 
	 	 	 	Title:	 

 

 

[20[●] Floating Rate Global Note
Signature Page]

 

    C-6

     

    

 

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: August [●], 2015

 

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

 

 

 

[Floating Rate Global Note Signature
Page]

  

    C-7

     

    

[REVERSE OF SECURITY]

 

This Senior Note is one of a duly authorized
issue of securities of the Company (herein called the “Senior Notes”) issued and to be issued in one or more series
under a Senior Debt Securities Indenture, dated as of January 21, 2011 (herein called the “Senior Indenture”), among
the Company, as issuer, the Guarantor, as guarantor, and The Bank of New York Mellon, as trustee (herein called the “Trustee,”
which term includes any successor trustee under the Senior Indenture) as supplemented by the Sixth Supplemental Indenture, dated
as of August [●], 2015, among the Company, the Guarantor and the Trustee (the “Sixth Supplemental Indenture”,
and, together with the Senior 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 Guarantor, the Trustee and the Holders of the Senior Notes and of the terms upon which the Senior Notes are, and are
to be, authenticated and delivered.

 

This Senior Note is one of the series designated
on the face hereof, initially limited in aggregate principal amount to $[●]. The Company may, without the consent of the
Holders of the Senior Notes, issue additional notes having the same ranking and interest rate, maturity date, redemption terms
and other terms as the Senior Notes except for the price to the public, issue date and first interest payment date, provided that
such additional notes must be fungible with the outstanding Senior Notes for U.S. federal income tax purposes. Any such Senior
Notes, together with this Senior Note, will constitute a single series of securities under the Indenture. The Senior Notes will
initially be issued in the form of one or more global Senior Notes (each, a “Global Senior Note”). Except as provided
in the Indenture, a Global Senior Note shall not be exchangeable for one or more definitive Senior Notes.

 

The Senior Notes of this series will constitute
unsecured and unsubordinated obligations of the Company and the Guarantor, as described herein, and will rank pari passu
without any preference among themselves.

 

The
interest rate for the Senior Notes for the first Floating Rate Interest Period (as defined below) will be LIBOR (as defined below)
as determined on August [●], 2015 plus the Spread. The interest
rate for each subsequent Floating Rate Interest Period will be LIBOR as determined on the applicable Interest Determination Date
(as defined below) plus the Spread, in each case calculated on the basis of a 360-day year and the actual number of days elapsed.
The Spread is [●] basis points.

 

The
initial Floating Rate Interest Payment Date (as defined below) will fall on November [●],
2015. Thereafter, interest on the Senior Notes will be paid

    C-8

     

    

 

quarterly in arrears on February [●], May [●], August
[●] and November [●], of each year, commencing on November
[●], 2015, and ending on August [●],
2018 (each, a “Floating Rate Interest Payment Date”). Interest so payable on any Floating Rate Interest Payment Date
shall be paid to the Holder in whose name this Senior Note is registered on the 15th calendar day immediately preceding the relevant
Floating Rate Interest Payment Date (each a “Regular Record Date”). However, if a Floating Rate Interest Payment Date
would fall on a day that is not a Business Day, as defined in the Indenture, other than the interest payment date that is also
the date of maturity, the Floating Rate Interest Payment Date will be postponed to the next succeeding day that is a business day
and interest thereon will continue to accrue, except that if the business day falls in the next succeeding calendar month, the
applicable Floating Rate Interest Payment Date will be the immediately preceding business day. In each such case, except for the
Floating Rate Interest Payment Date falling on the maturity date, the Floating Rate Interest Periods and the Interest Reset Dates
(as defined below) will be adjusted accordingly to calculate the amount of interest payable on the notes.

 

The interest rate will be reset on each
Floating Rate Interest Payment Date (together with the initial interest reset date, each an “Interest Reset Date”).
However, if any Interest Reset Date would otherwise be a day that is not a business day, that Interest Reset Date will be postponed
to the next succeeding day that is a business day, except that if the business day falls in the next succeeding calendar month,
the applicable Interest Reset Date will be the immediately preceding business day.

 

Interest
will be paid on the Senior Notes to Holders of record of each Senior Note in respect of the principal amount thereof as at the
15th calendar day prior to the relevant Floating Rate Interest Payment Date. The first interest period will begin on and include
August [●], 2015 and will end on and exclude November [●],
2015. Thereafter, the interest period will be the periods from and including a Floating Rate Interest Payment Date to but excluding
the immediately succeeding Floating Rate Interest Payment Date (together with the first interest period, each a “Floating
Rate Interest Period”). However, the final Floating Rate Interest Period will be the period from and including the Floating
Rate Interest Payment Date immediately preceding the Maturity Date to but excluding the Maturity Date.

 

The calculation agent will determine LIBOR
(as defined below) for each Floating Rate Interest Period other than the first Floating Rate Interest Period on the second day
in which dealings in United States dollars are transacted or, with respect to any future date, are expected to be transacted in
the London interbank market (a “London Banking Day”) prior to the first day of such Floating Rate Interest Period (an
“Interest Determination Date”).

    C-9

     

    

 

“LIBOR,” with respect to a Floating
Rate Interest Period, shall be the offered rate (expressed as a percentage per annum) for deposits of U.S. dollars having a maturity
of three months that appears on the Designated LIBOR Page (as defined below) as of 11:00 a.m., London time.

 

If no rate appears on the Designated LIBOR
Page, LIBOR will be determined for such Interest Determination Date on the basis of the rates at approximately 11:00 a.m., London
time, on such Interest Determination Date at which deposits in U.S. dollars are offered to prime banks in the London inter-bank
market by four major banks in such market selected by the calculation agent, after consultation with us, for a term of three months
and in a Representative Amount. The calculation agent will request that the principal London office of each of such banks provide
a quotation of its rate. If at least two such quotations are provided, LIBOR for such Floating Rate Interest Period will be the
arithmetic mean of such quotations. If fewer than two such quotations are provided, LIBOR for such Floating Rate Interest Period
will be the arithmetic mean of the rates quoted at approximately 11:00 a.m. in the City of New York on such Interest Determination
Date by three major banks in New York City, selected by the calculation agent, after consultation with us, for loans in United
States dollars to leading European banks, for a term of three months and in a Representative Amount. If at least two such quotations
are provided, LIBOR for such Floating Rate Interest Period will be the arithmetic mean of such quotations. If fewer than two quotations
are provided, then LIBOR for such Floating Rate Period will be LIBOR in effect with respect to the immediately preceding Floating
Rate Interest Period.

 

“Designated LIBOR Page” means
the Reuters Screen LIBOR01 display page, or any successor page, on Reuters or any successor service (or any such other service(s)
as may be nominated by the British Bankers’ Association for the purpose of displaying London interbank offered rates for
US dollar deposits).

 

“Interest Determination Date”
for each Floating Rate Interest Period will be the second London Banking Day preceding the first day of such Floating Rate Interest
Period.

 

“London Banking Day” is any
day in which dealings in United States dollars are transacted or, with respect to any future date, are expected to be transacted
in the London interbank market.

 

“Representative Amount” means
an amount that in the judgment of the calculation agent is representative for a single transaction in US dollars in such market
at such time.

    C-10

     

    

 

All calculations of the calculation agent,
in the absence of manifest error, will be conclusive for all purposes and binding on the Issuer and on the Holders of the Senior
Notes.

 

All
percentages resulting from any of the above calculations will be rounded, if necessary, to the nearest one hundred thousandth of
a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 9.876545%
(or .09876545) being rounded to 9.87655% (or .0987655)) and all dollar amounts used in or resulting from such calculations will
be rounded to the nearest cent (with one-half cent being rounded upwards).

 

The interest rate on the Senior Notes will
in no event be higher than the maximum rate permitted by law.

 

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

 

If an Event of Default with respect to the
Senior Notes of this series shall have occurred and be continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of Holders of Senior 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 Indenture or in
aid of the exercise of any power granted thereon, or to enforce any other proper remedy, including the institution of proceedings
in England or Scotland (but not elsewhere) for the winding up of the Company or the Guarantor, respectively.

 

By acceptance of the Senior Notes of this
Series, the Holder will be deemed to have waived any right of set-off or counterclaim with respect to such Senior Notes that they
might otherwise have against the Company or the Guarantor, whether before or during a winding-up of the Company or the Guarantor.

 

Amounts to be paid on the Senior Notes of
this Series or under the guarantee 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, 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

    C-11

     

    

 

Company or the Guarantor, as the case may be, to make such deduction or withholding, the Company, or the Guarantor, as the case
may be, will pay additional amounts with respect to the principal of, and interest and any other payments on, the Senior Notes
of this series (“Additional Amounts”) that are necessary in order that the net amounts paid to the Holders, after the
deduction or withholding, shall equal the amounts which would have been payable on the Senior 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 Senior Note is a domiciliary, national or resident of, or engaging in business or maintaining a permanent establishment or
is physically present in, the Taxing Jurisdiction or otherwise has some connection with the Taxing Jurisdiction other than the
holding or ownership of a Senior Note, or the collection of any payment of (or in respect of) principal of, or interest or other
payments on, any Senior Note or under the guarantee,

 

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

 

(iii) the relevant Senior Note is presented
(where presentation is required) for payment more than 30 days after the date payment became due or was provided for, whichever
is later, except to the extent that the Holder would have been entitled to 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 Senior Note or the Beneficial Owner of any payment of (or in respect of) principal of, or interest or other payments
on, the Senior Note failed to comply with a request of the Company or its liquidator or guarantor or other authorized person addressed
to the Holder (x) to provide information concerning the nationality, residence or identity of the Holder or such Beneficial Owner
or (y) to make any declaration or other similar claim to satisfy any requirement, which in the case of (x) or (y), is required
or imposed by a statute, treaty, regulation or administrative practice of the 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,

    C-12

     

    

 

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

 

(vii) the deduction or withholding is imposed
by reason of any agreement with the U.S. Internal Revenue Service in connection with Sections 1471-1474 of the U.S. Internal Revenue
Code and the U.S. Treasury regulations thereunder (“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 clauses (i) through
(vii) above,

 

nor shall Additional Amounts be paid with respect to the principal
of, or any interest or other payments on, the Senior Note or under the Guarantee 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.

 

References
herein to the payment of the principal of or interest or other payments on any Senior Note shall be deemed to include mention
of the payment of Additional Amounts provided for in the foregoing paragraph to the extent that, in such context, Additional Amounts
are, were or would be payable under the foregoing provisions.

 

The Senior Notes of this series are redeemable,
as a whole but not in part, at the option of the Company or the Guarantor, on not less than 30 nor more than 60 days’ notice,
on any Floating Rate Interest Payment Date, at a redemption price equal to 100% of the principal amount, together with accrued
but unpaid interest, in respect of the Senior Notes to the date fixed for redemption, if, at any time, the Company or, if applicable,
the Guarantor shall determine that as a result of a change in or amendment to the laws or regulations of the Taxing Jurisdiction
(including any treaty to which such Taxing Jurisdiction is a party), or any change in the application or interpretation of such
laws or regulations (including a decision of any court or tribunal) which change or amendment becomes effective on or after August
[●], 2015:

 

(a) in making payment under the Senior Notes
the Company (or, if applicable, the Guarantor) has or will or would on the next Floating Rate Interest Payment Date become obligated
to pay Additional Amounts;

    C-13

     

    

 

(b) the payment of interest on the next
Floating Rate Interest Payment Date in respect of any of the Senior Notes would be treated as a “distribution” within
the meaning of Chapter 2 of Part 23 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being); or

 

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

 

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

 

If the Company (or, if applicable, the Guarantor)
elects to redeem the Senior Notes of this series, the Senior 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 (or, if applicable, the Guarantor’s)
obligations in respect of the payment of the principal of (and premium, if any), and accrued and unpaid interest on, the Senior
Notes of this series shall terminate.

 

Notwithstanding any other agreements, arrangements,
or understandings between us and any Holder or Beneficial Owner of the Senior Notes, by its acquisition of the Senior Notes, each
Holder and Beneficial Owner of the Senior Notes acknowledges, accepts, agrees to be bound by and consents to the exercise of any
U.K. bail-in power by the relevant U.K. resolution authority that may result in (i) the reduction or cancellation of all, or a
portion, of the principal amount of, or interest on, the Senior Notes; (ii) the conversion of all, or a portion, of the principal
amount of, or interest on, the Senior Notes into 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 Senior Notes, or amendment of the amount of interest due on the
Senior Notes, or the dates on which interest

    C-14

     

    

 

becomes payable, including by suspending payment for a temporary period; which U.K.
bail-in power may be exercised by means of variation of the terms of the Senior Notes solely to give effect to the exercise by
the relevant U.K. resolution authority of such U.K. bail-in power. Each Holder and Beneficial Owner of the Senior Notes further
acknowledges and agrees that the rights of the Holders and/or Beneficial Owners under the Senior Notes are subject to, and will
be varied, if necessary, solely to give effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.

 

By its acquisition of the Senior Notes,
each Holder and Beneficial Owner of the Securities:

 

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

 

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

 

(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 of the Senior Notes under Section 5.12 of the Senior Indenture, and (b) neither the
Senior 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 Senior Notes remain outstanding (for example,
if the exercise of the U.K. bail-in power results in only a partial write-down of the principal of the Senior Notes), then the
Trustee’s duties under the Indenture shall remain applicable with respect to the Senior Notes following such completion to
the extent that the Company and the Trustee shall agree pursuant to a supplemental indenture or an amendment to the Sixth Supplemental
Indenture.

    C-15

     

    

 

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

 

By its acquisition of the Senior Notes,
each Holder and Beneficial Owner shall be deemed to have (i) consented to the exercise of any U.K. bail-in power as it may be imposed
without any prior notice by the relevant U.K. resolution authority of its decision to exercise such power with respect to the Senior
Notes and (ii) authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it
holds such Senior Notes to take any and all necessary action, if required, to implement the exercise of any U.K. bail-in power
with respect to the Senior Notes as it may be imposed, without any further action or direction on the part of such Holder or Beneficial
Owner.

 

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

 

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

 

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 Guarantor
and the rights of the Holders of the Senior Notes of each series to be affected thereby by the Company and the Trustee with the
consent of the Holders of not less than a majority in principal amount of the Senior Notes at the time outstanding of each such
series. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the outstanding
Senior Notes of each series, on behalf of the Holders of all Senior Notes of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the Indenture and their

    C-16

     

    

 

consequences. Any such consent or waiver
by the Holder of this Senior Note shall be conclusive and binding upon such Holder and upon all future Holders of this Senior Note
and of any Senior Note issued in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made
upon this Senior Note.

 

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

 

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

 

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

 

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

 

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

 

    C-17

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