Document:

ex10-1.htm

 

EXHIBIT 10.1

 

 

SECOND AMENDMENT TO CREDIT AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AGREEMENT dated as of July 7, 2011 (the “Agreement”) and effective as of the Second Amendment Effective Date (as defined below) is entered into among ExamWorks Group, Inc., a Delaware corporation (the “Borrower”), the Guarantors, the Lenders party hereto and Bank of America, N.A., as Administrative Agent.  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

RECITALS

WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent entered into that certain Credit Agreement dated as of October 11, 2010 (as amended or modified from time to time, the “Credit Agreement”);

WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement as set forth below; and

WHEREAS, the Lenders are willing to amend the Credit Agreement subject to the terms and conditions set forth below;

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree, effective as of the Second Amendment Effective Date, as follows:

1.           Amendments.  The Credit Agreement is hereby amended as follows:

(a)           The following definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order to read as follows:

“Adjusted Net Income” means, for any period, the sum of (a) Consolidated Net Income for such period plus (b) to the extent deducted in calculating such Consolidated Net Income, amortization expense of the Borrower and its Subsidiaries for that period, all as determined in accordance with GAAP.

“Consolidated Secured Funded Indebtedness” means the Consolidated Funded Indebtedness of the Borrower and its Subsidiaries which is secured by assets of the Borrower or any of its Subsidiaries.

“Second Amendment” means that certain Second Amendment to Credit Agreement, dated as of July 7, 2011 and effective as of the Second Amendment Effective Date, by and among the Borrower, the Guarantors, the Lenders party thereto and the Administrative Agent.

“Second Amendment Effective Date” means the first date upon which the conditions precedent identified in Section 2 of the Second Amendment have been satisfied.

“Senior Notes” means those certain senior unsecured notes of the Borrower in an aggregate principal amount not to exceed $250,000,000.

  

  

  

(b)           The definition of “Supermajority Lenders” is hereby deleted in its entirety from Section 1.01 of the Credit Agreement.

(c)           The definition of “Alternative Currency Sublimit” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

“Alternative Currency Sublimit” means an amount equal to the lesser of (i) the Aggregate Revolving Commitments and (ii) $60,000,000.  The Alternative Currency Sublimit is part of, and not in addition to, the Aggregate Revolving Commitments.

(d)           The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

“Applicable Rate” means with respect to Revolving Loans, Swing Line Loans, Letters of Credit and the Commitment Fee, the following percentages per annum, based upon the Consolidated Senior Secured Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 7.02(a):

	
Pricing Tier

	
Consolidated

Senior Secured Leverage Ratio

	
Commitment 

Fee

	
Letter of 

Credit Fee

	
Eurocurrency 

Rate Loans

	
Base Rate 

Loans

	 
	
1

	
Greater than or equal to  2.50:1.0

	
0.50%

	
3.75%

	
3.75%

	
2.75%

	
2

	
Greater than or equal to 2.00:1.0 but less than 2.50:1.0

	
0.45%

	
3.50%

	
3.50%

	
2.50%

	
3

	
Greater than or equal to 1.50:1.0 but less than 2.00:1.0

	
0.40%

	
3.25%

	
3.25%

	
2.25%

	
4

	
Greater than or equal to 1.00:1.0 but less than  1.50:1.0

	
0.35%

	
3.00%

	
3.00%

	
2.00%

	
5

	
Less than 1.00:1.0

	
0.30%

	
2.75%

	
2.75%

	
1.75%

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Senior Secured Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 7.02(a); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then, upon the request of the Required Lenders, Pricing Tier 1 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall continue to apply until the first Business Day immediately following the date a Compliance Certificate is delivered in accordance with Section 7.02(a), whereupon the Applicable Rate shall be adjusted based upon the calculation of the Consolidated Senior Secured Leverage Ratio contained in such Compliance Certificate.  The Applicable Rate with respect to the Letter of Credit Fee, Eurocurrency Rate Loans and Base Rate Loans in effect from the Second Amendment Effective Date to the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 7.02(a) for the fiscal quarter ending September 30, 2011 shall be determined based upon Pricing Tier 5.  The Applicable Rate with respect to the Commitment Fee in effect from the Second Amendment Effective Date to the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 7.02(a) for the fiscal quarter ending June 30, 2011 shall be determined based upon Pricing Tier 5.  Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b).

  

  

  

(e)           The definition of “Consolidated Senior Leverage Ratio” in Section 1.01 of the Credit Agreement is hereby amended to read as follows and each other reference in the Credit Agreement to “Consolidated Senior Leverage Ratio” is hereby amended to read “Consolidated Senior Secured Leverage Ratio”:

“Consolidated Senior Secured Leverage Ratio” means, as of any date of determination, the ratio of (a) (i) Consolidated Secured Funded Indebtedness as of such date minus (ii) unrestricted cash of the Loan Parties in excess of $2,500,000 on the consolidated balance sheet of the Borrower and its Domestic Subsidiaries as of such date in an amount not exceeding $12,500,000 to (b) Consolidated EBITDA for the period of the four (4) fiscal quarters most recently ended.

(f)           Clause (e) of the definition of “Funded Indebtedness” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

(e)           all obligations in respect of the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business), including, without limitation, any Earn Out Obligations that are (i) recognized as a liability on the balance sheet of the Borrower and its Subsidiaries in accordance with GAAP and (ii) payable in cash;

(g)           The definition of “Maturity Date” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

“Maturity Date” means July 7, 2016.

(h)           The reference to “$50,000,000” in clause (ix) of the proviso in the definition of “Permitted Acquisitions” in Section 1.01 of the Credit Agreement is hereby amended to read “$75,000,000”.

(i)           Section 2.02(f) of the Credit Agreement is hereby amended to read as follows:

(f)           Increase in Aggregate Revolving Commitments.  The Borrower may, at any time subsequent to the Second Amendment Effective Date and from time to time, upon prior written notice by the Borrower to the Administrative Agent, request that the Lenders increase the Aggregate Revolving Commitments (but not the Letter of Credit Sublimit or the Swing Line Sublimit) by a maximum aggregate amount of up to THIRTY SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($37,500,000) with additional Revolving Commitments from any existing Lender with a Revolving Commitment or new Revolving Commitments from any other Person selected by the Borrower and acceptable to the Administrative Agent and the L/C Issuer; provided that:

  

  

  

(i)           any such increases to the Aggregate Revolving Commitments shall be in a minimum principal amount of $10,000,000 and in integral multiples of $1,000,000 in excess thereof;

(ii)           no Default or Event of Default shall exist and be continuing at the time of any such increase;

(iii)           no existing Lender shall be under any obligation to increase its Revolving Commitment and any such decision whether to increase its Revolving Commitment shall be in such Lender’s sole and absolute discretion;

(iv) (A) any new Lender shall join this Agreement by executing such joinder documents required by the Administrative Agent and/or (B) any existing Lender electing to increase its Revolving Commitment shall have executed a commitment agreement satisfactory to the Administrative Agent; and

(v)           as a condition precedent to such increase, the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party dated as of the date of such increase (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party (A) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase, and (B) in the case of the Borrower, certifying that, before and after giving effect to such increase, (x) the representations and warranties contained in Article VI and the other Loan Documents are true and correct in all material respects on and as of the date of such increase, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, and except that for purposes of this Section 2.02(f), the representations and warranties contained in subsections (a) and (b) of Section 6.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 7.01, and (y) no Default or Event of Default exists.

The Borrower shall prepay any Loans owing by it and outstanding on the date of any such increase (and pay any additional amounts required pursuant to Section 3.05) to the extent necessary to keep the outstanding Loans ratable with any revised Revolving Commitments arising from any nonratable increase in the Revolving Commitments under this Section.

(j)           Each reference to “Consolidated Leverage Ratio” in Section 2.10(b) of the Credit Agreement is hereby amended to read “Consolidated Senior Secured Leverage Ratio”.

(k)           Section 8.02(i) of the Credit Agreement is hereby amended to read as follows:

(i)           Investment in the form of a loan by ExamWorks Europe to ExamWorks UK Limited (the “ExamWorks Europe Loan”) in an aggregate amount not to exceed £45 million; provided that (x) the proceeds of such Investment are promptly used by ExamWorks UK Limited to finance the Premex Acquisition and (y) ExamWorks Europe shall have delivered to the Administrative Agent the original promissory note evidencing such ExamWorks Europe Loan, together with a duly executed in blank and undated note power or allonge.

  

  

  

	
(l)             

	
Section 8.03(f) of the Credit Agreement is hereby amended to read as follows:

(f)           Indebtedness of UK Independent and other UK Subsidiaries in an aggregate principal amount not to exceed £35 million pursuant to those certain receivables facilities agented by Barclays Bank PLC (and Guarantees of such Indebtedness by certain other UK Subsidiaries);

(m)           The word “and” is hereby deleted from the end of clause (h) of Section 8.03 of the Credit Agreement,  the period is hereby deleted and “; and” is hereby added at the end of clause (i) of Section 8.03 and a new clause (j) is hereby added to Section 8.03 to read as follows:

(j)           unsecured Indebtedness of the Borrower under the Senior Notes, in an aggregate principal amount not to exceed $250,000,000 (and unsecured Guarantees of such Indebtedness by the Guarantors); provided that the maturity date of the Senior Notes is not earlier than the Maturity Date.

(n)           The word “and” is hereby deleted from the end of clause (a) of Section 8.06 of the Credit Agreement,  the period is hereby deleted and “; and” is hereby added at the end of clause (b) of Section 8.06 and a new clause (c) is hereby added to Section 8.06 of the Credit Agreement to read as follows:

(c)           the Borrower may make Restricted Payments; provided that (i) the aggregate amount of such Restricted Payments made pursuant to this Section 8.06(c) during the term of the Credit Agreement shall not exceed the sum of (A) $40,000,000 plus (B) 50% of Adjusted Net Income for each fiscal quarter ending after the Second Amendment Effective Date plus (C) the proceeds of any issuances of Equity Interests by the Borrower less (D) 50% of Adjusted Net Income (if such amount is less than zero) for each fiscal quarter ending after the Second Amendment Effective Date and (ii) the Consolidated Leverage Ratio is less than 2.50:1.0 after giving effect to any such Restricted Payment on a Pro Forma Basis.

(o)           Section 8.11(a) of the Credit Agreement is hereby amended to read as follows:

(a)           Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of the end of any fiscal quarter of the Borrower to be greater than 4.75:1.0.

(p)           Section 8.11(b) of the Credit Agreement is hereby amended to read as follows:

(b)           Consolidated Senior Secured Leverage Ratio.  Permit the Consolidated Senior Secured Leverage Ratio as of the end of any fiscal quarter of the Borrower to be greater than 3.0:1.0.

(q)           Section 8.16(b) of the Credit Agreement is hereby amended to read as follows:

(b)           have any liabilities (contingent or otherwise) other than (i) liabilities under the Loan Documents, (ii) its Guarantee of the Indebtedness permitted by Section 8.03(f) (to the extent such Guarantee is permitted by Section 8.03(f), (iii) tax liabilities in the ordinary course of business, (iv) administrative expenses in the ordinary course of business, (v) lease obligations with respect to its headquarters lease in Atlanta, Georgia, (vi) liabilities (including guarantee obligations) with respect to acquisition agreements related to Permitted Acquisitions and (vii) liabilities under the Senior Notes; or

  

  

  

(r)           Sections 11.01(a)(viii) and 11.01(a)(ix) of the Credit Agreement are hereby deleted in their entireties.

2.           Conditions Precedent.  This Agreement shall be effective upon:

(a)           the receipt by the Administrative Agent of counterparts of this Agreement duly executed by the Borrower, the Guarantors, the Lenders and Bank of America, N.A., as Administrative Agent;

(b)           the receipt by (i) the Administrative Agent on behalf of each Lender consenting to this Agreement on or before 5:00 p.m. Eastern time on the Second Amendment Effective Date of an amendment fee equal to 0.375% of such Lender’s Revolving Commitment (after giving effect to the Second Amendment) and (ii) the Administrative Agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated of all fees and expenses due and payable to them in connection with this Agreement;

(c)           the receipt by the Administrative Agent of the following, each of which shall be originals or facsimiles (followed promptly by originals), in form and substance satisfactory to the Administrative Agent:

(i)           copies of the Organization Documents of each Loan Party certified to be true and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation or organization, where applicable, and certified by a secretary or assistant secretary of such Loan Party to be true and correct as of the Second Amendment Effective Date;

(ii)           such certificates of resolutions and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement; and

(iii)           such documents and certifications as the Administrative Agent may require to evidence that each Loan Party is duly organized or formed, and is validly existing, in good standing and qualified to engage in business in its state of organization or formation;

(d)           the receipt by the Administrative Agent of favorable opinions of legal counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, dated as of the Second Amendment Effective Date and in form and substance satisfactory to the Administrative Agent; and

(e)           the receipt by the Administrative Agent of (i) certified copies of the Senior Notes, in form and substance satisfactory to the Administrative Agent and (ii) satisfactory evidence of the simultaneous closing and funding of the Senior Notes on the Second Amendment Effective Date.

  

  

  

3.             Miscellaneous.

(a)   The Credit Agreement and the obligations of the Loan Parties thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms.  The Loan Parties acknowledge and confirm that as of the date hereof (a) the Administrative Agent, on behalf of the Lenders, has a valid and enforceable first priority security interest in the Collateral, (b) the Borrower’s obligation to repay the outstanding principal amount of the Loans and reimburse the L/C Issuer for any drawing on a Letter of Credit is unconditional and not subject to any offsets, defenses or counterclaims and (c) the Administrative Agent and the Lenders have performed fully all of their respective obligations under the Credit Agreement and the other Loan Documents.  The Loan Parties also acknowledge and confirm that by entering into this Agreement, the Lenders do not waive or release any term or condition of the Credit Agreement or any of the other Loan Documents or any of their rights or remedies under such Loan Documents or applicable Law or any of the obligations of any Loan Party thereunder.

(b)           Each Guarantor (a) acknowledges and consents to all of the terms and conditions of this Agreement, (b) affirms all of its obligations under the Loan Documents as modified hereby and (c) agrees that this Agreement and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Credit Agreement or the other Loan Documents except as expressly set forth herein.

(c)   The Loan Parties hereby represent and warrant as follows:

(i)           Each Loan Party has taken all necessary action to authorize the execution, delivery and performance of this Agreement.

(ii)           This Agreement has been duly executed and delivered by the Loan Parties and constitutes each of the Loan Parties’ legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (A) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (B) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

(iii)           No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by any Loan Party of this Agreement.

(d)   The Loan Parties represent and warrant to the Lenders that (i) the representations and warranties of the Loan Parties set forth in Article VI of the Credit Agreement and in each other Loan Document are true and correct in all material respects as of the date hereof with the same effect as if made on and as of the date hereof, except to the extent such representations and warranties expressly relate solely to an earlier date or have been previously updated or amended and (ii) no event has occurred and is continuing, or would result from the execution and delivery of this Agreement, which constitutes a Default or an Event of Default.

  

  

  

(e)   This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by telecopy shall be effective as an original and shall constitute a representation that an executed original shall be delivered.

(f)           THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

(g)           The parties hereto agree that as of the Second Amendment Effective Date the Aggregate Revolving Commitments shall be automatically reduced from $300,000,000 to $262,500,000 and the Revolving Commitment of General Electric Capital Corporation shall be automatically reduced from $57,500,000 to $20,000,000 on a non pro rata basis; provided that General Electric Capital Corporation does not make any assignment of Loans or Revolving Commitments from the date hereof to the Second Amendment Effective Date.

(h)           The parties hereto agree that if the conditions precedent in Section 2 are not satisfied on or before September 30, 2011, this Agreement shall be automatically terminated and declared null and void.

[Signature pages follow]

 

  

  

  

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

 

	 BORROWER:  	
EXAMWORKS GROUP, INC.,

	 	
a Delaware corporation

	 	  
	 	  
	 	By:	 
/s/ J. Miguel Fernandez de Castro

	 
	 	
Name: J. Miguel Fernandez de Castro

	 	
Title: Senior Vice President and Chief Financial Officer

	 	  
	 	  
	 GUARANTORS: 	
EXAMWORKS, INC., a Delaware corporation

	 	  
	 	  
	 	By:	 
/s/ J. Miguel Fernandez de Castro

	 
	 	
Name: J. Miguel Fernandez de Castro

	 	
Title: Senior Vice President and Chief Financial Officer

	 	  
	 	
EXAMWORKS CANADA, INC., a Delaware corporation

	 	
EXAMWORKS EUROPE, INC., a Delaware corporation

	 	
FLORIDA MEDICAL SPECIALISTS, INC.,

	 	
a New Jersey corporation

	 	
MARQUIS MEDICAL ADMINISTRATORS, INC.,

	 	
a New York corporation

	 	
THE RICWEL CORPORATION,

	 	
an Ohio corporation

	 	
SOUTHWEST MEDICAL EXAMINATION SERVICES, INC.,

	 	
a Texas corporation

	 	
PACIFIC BILLING SERVICES, INC.,

	 	
a Texas corporation

	 	
DIAGNOSTIC IMAGING INSTITUTE, INC.,

	 	
a Texas corporation

	 	
EXIGERE CORPORATION, a Washington corporation

	 	
NETWORK MEDICAL REVIEW COMPANY,

	 	
LTD., an Illinois corporation

	 	
NETWORK MEDICAL MANAGEMENT COMPANY,

	 	
LTD., an Illinois corporation

	 	
INSURANCE APPEALS, LTD.,

	 	
an Illinois corporation

	 	
ELITE PHYSICIANS, LTD.,

	 	
an Illinois corporation

	 	
WORKERSFIRST, INC.,

	 	
an Illinois corporation

 

  

  

  

	 	
MES GROUP, INC.,

	 	
a Michigan corporation

	 	
MEDICAL EVALUATION SPECIALISTS, INC.,

	 	
a Michigan corporation

	 	
MEDICAL EVALUATION SPECIALISTS,

	 	
a California corporation

	 	
MEDICAL EVALUATION SPECIALISTS-MASSACHUSETTS, INC.,

	 	
a Massachusetts corporation

	 	
MEDICAL EVALUATION SPECIALISTS, INC.,

	 	
a Pennsylvania corporation

	 	
LONE STAR CONSULTING SERVICES, INC.,

	 	
a Texas corporation

	 	
MES MANAGEMENT SERVICES, INC.,

	 	
a New York corporation

	 	  
	 	  
	 	By:	 
/s/ J. Miguel Fernandez de Castro

	 
	 	
Name: J. Miguel Fernandez de Castro

	 	
Title: Senior Vice President and Chief Financial Officer

	 	  
	 	  
	 	  
	 	
RICWEL OF WEST VIRGINIA, LLC,

	 	
a West Virginia limited liability company

	 	
CFO MEDICAL SERVICES, LLC,

	 	
a New Jersey limited liability company

	 	  
	 	
By: ExamWorks, Inc., its sole member and manager

	 	  
	 	By:	 
/s/ J. Miguel Fernandez de Castro

	 
	 	
Name: J. Miguel Fernandez de Castro

	 	
Title: Senior Vice President and Chief Financial Officer

	 	  
	 	  
	 	
IME SOFTWARE SOLUTIONS, LLC,

	 	
a Michigan limited liability company

	 	
EXAMWORKS REVIEW SERVICES, LLC,

	 	
a Delaware limited liability company

	 	
EXAMWORKS EVALUATIONS OF NEW YORK,

	 	
LLC, a New York limited liability company

	 	  
	 	
By: ExamWorks, Inc., its sole member

	 	  
	 	By: 	 
/s/ J. Miguel Fernandez de Castro

	 
	 	
Name: J. Miguel Fernandez de Castro

	 	
Title: Senior Vice President and Chief Financial Officer

	 	  

 

  

  

  

	 	  
	 	  
	 	  
	 	  
	 	
DDA MANAGEMENT SERVICES, LLC,

	 	
a New York limited liability company

	 	  
	 	
By: Lone Star Consulting Services, Inc., its sole member

	 	  
	 	By: 	 
/s/ J. Miguel Fernandez de Castro

	 
	 	
Name: J. Miguel Fernandez de Castro

	 	
Title: Senior Vice President and Chief Financial Officer

	 	  

 

  

  

  

 

	 	  
	 ADMINISTRATIVE	
 

	 AGENT: 	
BANK OF AMERICA, N.A.,

	 	
as Administrative Agent

	 	  
	 	 
By:

	/s/ Anne M. Zeschke 	 
	 	
Name: Anne M. Zeschke 

	 	
Title: Vice President

	 	  
	 LENDERS:  	
BANK OF AMERICA, N.A.,

	 	
as a Lender, Swing Line Lender and L/C Issuer

	 	  
	 	 
By:

	/s/ John G. Taylor 	 
	 	
Name: John G. Taylor 

	 	
Title: Senior Vice President

	 	  
	 	
GENERAL ELECTRIC CAPITAL CORPORATION,

	 	
as a Lender

	 	  
	 	 
By:

	/s/ W. Grout Johnston 	 
	 	
Name: W. Grout Johnston

	 	
Title: Duly Authorized Signatory

	 	  
	 	
FIFTH THIRD BANK,

	 	
as a Lender

	 	  
	 	 
By:

	/s/ Philip Renwick 	 
	 	
Name: Philip Renwick

	 	
Title: Vice President

	 	  
	 	
SUNTRUST BANK,

	 	
as a Lender

	 	  
	 	 
By:

	/s/ Michael S. Murphy	 
	 	
Name: Michael S. Murphy

	 	
Title: Senior Vice President

	 	  
	 	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

	 	
as a Lender

	 	  
	 	 
By:

	/s/ Chris McDaid 	 
	 	
Name: Chris McDaid 

	 	
Title: Vice President

	 	  
	 	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

	 	
as a Lender

	 	  
	 	 
By:

	/s/ Christopher Reo Day 	 
	 	
Name: Christopher Reo Day

	 	
Title: Vice President

 

  

  

  

	 	  
	 	
BARCLAYS BANK PLC,

	 	
as a Lender

	 	  
	 	 
By:

	/s/ Diane Rolfe 	 
	 	
Name: Diane Rolfe

	 	
Title: Director

	 	  
	 	
COMMUNITY & SOUTHERN BANK,

	 	
as a Lender

	 	  
	 	 
By:

	/s/ Thomas A. Bethel 	 
	 	
Name: Thomas A. Bethel 

	 	
Title: Senior Relationship Manager

	 	  
	 	
GOLDMAN SACHS BANK USA,

	 	
as a Lender

	 	  
	 	 
By:

	/s/ Rob Ehudin 	 
	 	
Name: Rob Ehudin

	 	
Title: Authorizeed Signatory

 

SECOND AMENDMENT TO CREDIT AGREEMENT

EXAMWORKS GROUP, INC.Form of Global Security relating thereto

 Exhibit 4.2 
 (Face of Security) 
 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN
THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO BARCLAYS BANK PLC, OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 BY PURCHASING THIS SECURITY, THE HOLDER AGREES TO CHARACTERIZE THIS SECURITY FOR
ALL U.S. FEDERAL INCOME TAX PURPOSES AS PROVIDED IN SECTION 10 ON THE FACE OF THIS SECURITY. 

			
	CUSIP No. 06741K106	  	ISIN: US06741K1060

 BARCLAYS BANK PLC 
 GLOBAL MEDIUM-TERM NOTES, SERIES A 
  

 

iPath® Long Enhanced S&P 500 VIX Mid-Term
FuturesTM ETN (II) due July 12, 2021 

The following terms apply to this Security. Capitalized terms that are not defined the first time they are used in this Security shall
have the meanings indicated elsewhere in this Security. 
 Face Amount:
$[            ] equal to [            ] Securities at $30 per Security 
 Inception Date: July 8, 2011 
 Original Issue Date: July 13, 2011

 Principal Amount per Security: $30 
 Interest Rate: The principal of this Security shall not bear interest. 

Index: S&P 500® VIX Mid-Term FuturesTM Total Return Index 
 Index Sponsor: Standard & Poor’s Financial Services LLC

 Payment at Maturity: At maturity, the Holder will receive a cash payment equal to the Closing Indicative Note Value of the Securities
on the Final Valuation Date. 
 Closing Indicative Note Value: The Closing Indicative Note Value for each Security on the Initial
Valuation Date will equal $30. On any subsequent calendar day until maturity or redemption, the Closing Indicative Note Value per Security will equal (a) the Long Index Amount on such calendar day minus (b) the Financing Level on
such calendar day; provided that if such calculation results in a negative value, the Closing Indicative Note Value will be $0. 

Long Index Amount: On the Initial Valuation Date, the Long Index Amount for each Security will be equal to $60, or two times the Principal Amount
per Security. On any subsequent calendar day until maturity or redemption, the Long Index Amount for each Security will equal the product of (a) the Long Index Amount on the Initial Valuation Date times (b) the Index Performance
Factor on such calendar day. 
 Index Performance Factor: On the Initial Valuation Date, the Index Performance Factor will equal 1. On
any subsequent calendar day until maturity or redemption, the Index Performance Factor will equal (a) the Closing Level of the Index on such calendar day (or, if such a calendar day is not an Index Business Day, the Closing Level of the Index
on the immediately preceding Index Business Day) divided by (b) the Closing Level of the Index on the Initial Valuation Date. 

Financing Level: On the Initial Valuation Date, the Financing Level for each Security will equal $30. On any subsequent calendar day until
maturity or redemption, the Financing Level for each Security will equal the sum of (a) the Financing Level on the immediately preceding calendar day plus (b)
 (Face of Security continued on next page) 

  
 –2–

 
the Daily Financing Charge plus (c) the Daily Investor Fee. 
 Daily
Financing Charge: On the Initial Valuation Date, the Daily Financing Charge for each Security will equal $0. On any subsequent calendar day until maturity or redemption, the Daily Financing Charge for each Security will equal the product of
(a) the Financing Level on the immediately preceding calendar day times (b) the Financing Rate divided by (c) 360. 

Financing Rate: The Financing Rate will equal the sum of (a) 0.89% plus (b) the most recent 3-month London InterBank Offered Rate
(LIBOR) fixing for U.S. dollars effective on the immediately preceding business day, as published by the British Bankers’ Association (the “3-month LIBOR rate”). The fixing is conducted each day at 11:00 a.m. (London time) and
published on Bloomberg page “US0003M Index”. 
 Daily Investor Fee: On the Initial Valuation Date, the Daily Investor Fee for
each Security will equal $0. On any subsequent calendar day until maturity or redemption, the Daily Investor Fee per Security will equal the product of (a) the Closing Indicative Note Value on the immediately preceding calendar day times
(b) the Fee Rate divided by (c) 365. 
 Fee Rate: 0.89%. 
 Holder Redemption: Subject to the notification requirements set forth in the Prospectus, the Holder may redeem Securities on any Holder Redemption Date during the term of the Securities, subject to
an intervening Automatic Termination Event. In such event, the Holder will receive a cash payment in U.S. dollars for each Security on the applicable Holder Redemption Date in an amount equal to the Closing Indicative Note Value on the applicable
Valuation Date. The Holder must redeem at least 25,000 of the Securities at one time in order to exercise the right to redeem the Securities on any Holder Redemption Date. 
 Redemption Charge: The Redemption Charge is a one-time charge imposed upon Holder Redemption and is equal to 0.05% times the Closing Indicative Note Value on the applicable Valuation Date.

 Holder Redemption Date: The third Business Day following each Valuation Date (other than the Final Valuation Date). The final Holder
Redemption Date will be the third Business Day following the Valuation Date that is immediately prior to the Final Valuation Date. 
 Issuer
Redemption: The Company may redeem the Securities (in whole but not in part) at its sole discretion any Trading Day on or after the Inception Date until and including maturity (“Issuer Redemption”). To exercise its right to
redeem the Securities, the Company must deliver notice to the Holder of such Securities not less than ten calendar days prior to the Redemption Date specified by the Company in such issuer redemption notice. If the Company redeems the Securities,
the Holder will receive a cash payment in U.S. dollars per Security in an amount equal to the applicable Closing Indicative Note Value on the applicable Valuation Date. 
 Issuer Redemption Date: The date specified by the Company in the issuer redemption notice, which will in no event be prior to the tenth calendar day following the date on which the Company delivers
such notice. 
 Automatic Termination Event: The Company will automatically redeem the Securities (in whole only, but not in part) if, on
any Valuation Date prior to or on the Final Valuation Date, the Intraday Indicative Note Value is less than or equal to the Automatic Termination Level, which is 33.33% of the principal amount per 

(Face of Security continued on next page) 

  
 –3–

 
Security, or $10.00 for each Security. The Company will redeem the Securities on the Automatic Redemption Date. Upon such redemption, the Holder will receive a cash payment in U.S. dollars equal
to the Automatic Redemption Value. 
 Automatic Termination Date: Any Valuation Date on which an Automatic Termination Event occurs.

 Automatic Redemption Date: The fifth Business Day following the Automatic Termination Date; provided that if calculation of the
Automatic Redemption Value is postponed as a result of a Market Disruption Event, the Automatic Redemption Date will be the fifth Business Day after the Automatic Redemption Value is calculated. 

Automatic Redemption Value: The Automatic Redemption Value will be equal to the Closing Indicative Note Value on the Automatic Termination
Date. The Automatic Redemption Value shall not be greater than 33.33% of the principal amount for each Security, or $10.00 for each Security and shall not be less than $0 per Security. 
 Intraday Indicative Note Value: The Intraday Indicative Note Value for each Security on any Trading Day until maturity or redemption of the Securities will equal (a) the Intraday Long Index
Amount minus (b) the Financing Level on the immediately preceding calendar day; provided that if such calculation results in a negative value, the Intraday Indicative Note Value will be $0. 

Intraday Long Index Amount: The Intraday Long Index Amount on any Trading Day will equal the product of (a) two times (b) the
Principal Amount per Security times (c) the Intraday Index Performance Factor. 
 Intraday Index Performance Factor: The
Intraday Index Performance Factor will equal (a) the most recently published level of the Index divided by (b) the closing level of the Index on the Initial Valuation Date. 
 Calculation Agent: Barclays Bank PLC 
 Defeasance: Neither full defeasance nor
covenant defeasance applies to this Security. 
 Listing: NYSE Arca stock exchange. 

(Face of Security continued on next page) 

  
 –4–

 “Standard & Poor’s®”, “S&P®”,
“S&P 500®”, “Standard & Poor’s 500TM” and “S&P 500 VIX
Mid-Term FuturesTM” are trademarks of S&P and have been licensed for use by Barclays. “VIX” is a registered trademark of the CBOE and has been licensed for use by S&P. 

The Securities are not sponsored, endorsed, sold or promoted by S&P or the CBOE. S&P and CBOE make no representation, condition or warranty,
express or implied, to the owners of the Securities or any member of the public regarding the advisability of investing in securities generally or in the Securities or in the ability of either Index to track market performance. S&P’s and
CBOE’s only relationship to Barclays is the licensing of certain trademarks and trade names of S&P, CBOE and the Index which are determined, composed and calculated by S&P without regard to Barclays or the Securities. S&P has no
obligation to take the needs of Barclays or the owners of the Securities into consideration in determining, composing or calculating the Index. S&P and CBOE are not responsible for and have not participated in the determination of the timing of,
prices at, or quantities of the Securities to be issued or in the determination or calculation of the equation by which the Securities is to be converted into cash. S&P and CBOE have no obligation or liability in connection with the
administration, marketing or trading of the Securities. 
 NEITHER S&P, ITS AFFILIATES NOR THEIR THIRD PARTY LICENSORS, INCLUDING CBOE,
GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDEX OR ANY DATA INCLUDED THEREIN OR ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO.
S&P, ITS AFFILIATES AND THEIR THIRD PARTY LICENSORS, INCLUDING CBOE, SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS THEREIN. S&P AND CBOE MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE MARKS, THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P, ITS AFFILIATES OR THEIR THIRD
PARTY LICENSORS, INCLUDING CBOE, BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE. 

  
 –5–

 OTHER TERMS: 
 All terms used in this Security that are not defined in this Security but are defined in the Indenture referred to on the reverse of this Security shall have the meanings assigned to them in the
Indenture. Section headings on the face of this Security are for convenience only and shall not affect the construction of this Security. 
 “Business Day” means a Monday, Tuesday, Wednesday, Thursday or Friday that is neither a day on which banking institutions in New York City or London, as applicable, generally are
authorized or obligated by law, regulation, or executive order to close. 
 “Calculation Agent” means Barclays
Bank PLC or such other party as may be nominated as successor Calculation Agent with respect to the Securities by Barclays Bank PLC. 
 “Default Amount” means, on any day, an amount in U.S. dollars, as determined by the Calculation Agent , equal to the cost of having a Qualified Financial Institution (selected as provided
below) expressly assume the due and punctual payment of the principal of this Security, and the performance or observance of every covenant hereof and of the Indenture on the part of the Company to be performed or observed with respect to this
Security (or to undertake other obligations providing substantially equivalent economic value to the Holder of this Security as the Company’s obligations hereunder). Such cost will equal (i) the lowest amount that a Qualified Financial
Institution would charge to effect such assumption (or undertaking) plus (ii) the reasonable expenses (including reasonable attorneys’ fees) incurred by the Holder of this Security in preparing any documentation necessary for such
assumption (or undertaking). During the Default Quotation Period, each Holder of this Security and the Company may request a Qualified Financial Institution to provide a quotation of the amount it would charge to effect such assumption (or
undertaking) and notify the other in writing of such quotation. The amount referred to in clause (i) of this paragraph will equal the lowest (or, if there is only one, the only) quotation so obtained, and as to which notice is so given, during
the Default Quotation Period; provided that, with respect to any quotation, the party not obtaining such quotation may object, on reasonable and significant grounds, to the effectuation of such assumption (or undertaking) by the Qualified
Financial Institution providing such quotation and notify the other party in writing of such grounds within two Business Days after the last day of the Default Quotation Period, in which case such quotation will be disregarded in determining the
Default Amount. The “Default Quotation Period” will be the period beginning on the day the Default Amount first becomes due and ending on the third Business Day after such due date, unless no such quotation is so obtained, or unless
every such quotation so obtained is objected to within five Business Days after such due date as provided above, in which case the Default Quotation Period will continue until the third Business Day after the first Business Day on which prompt
notice is given of such quotation as provided above, unless such quotation is objected to as provided above within five Business Days after such first Business Day, in which case the Default Quotation Period will continue as provided in this
sentence. Notwithstanding the foregoing, if the Default Quotation Period (and the subsequent two Business Day objection period) has not ended prior to the Final Valuation Date, then the Default Amount will equal the Face Amount. 

  
 –6–

 “Index Business Day” means a day on which (1) it is a business day in
New York City and (2) trading is generally conducted on the CBOE. 
 “Market Disruption Event
means, with respect to the Securities, in the opinion of the Calculation Agent and determined in its sole discretion: (i) S&P does not publish the level of the Index on any Index Business Day; (ii) a suspension, absence or material
limitation of trading of equity securities then constituting 20% or more of the level of the S&P 500® Index
on the Relevant Exchanges (as defined below) for such securities occurs for more than two hours of trading (one hour on any day that is an “index roll date” for purposes of calculation the VIX Index or any relevant successor index) during,
or during the one hour period preceding the close of, the principal trading session on such Relevant Exchange; (iii) a breakdown or failure in the price and trade reporting systems of any Relevant Exchange for the S&P 500® Index occurs as a result of which the reported trading prices for equity securities then constituting 20% or more of
the level of the S&P 500® Index are materially inaccurate (a) during the one hour preceding the close
of the principal trading session on such Relevant Exchange or (b) during any one hour period of trading on such Relevant Exchange or on any day that is an “index roll date” for purposes of calculating the VIX Index or any relevant
successor index; (iv) a suspension, absence or material limitation of trading on any Relevant Exchange for the VIX Index (or any relevant successor index) occurs for more than two hours of trading (one hour on any day that is an “index
roll date” for purposes of calculation the VIX Index or any relevant successor index) during, or during the one hour period preceding the close of, the principal trading session on such Relevant Exchange; (v) a breakdown or failure in the
price and trade reporting systems of the Relevant Exchange for the VIX Index (or any relevant successor index) occurs as a result of which the reported trading prices for SPX Options or futures on the VIX Index (or futures on any relevant successor
index) during the one hour period preceding, and including, the scheduled time at which the value of SPX Options is calculated for purposes of the VIX Index (or any relevant successor index) are materially inaccurate; (vi) a decision to
permanently discontinue trading in SPX Options or futures on the VIX Index (or futures on any relevant successor index) occurs; (vii) on any Index Business Day, the occurrence or existence of a lack of, or a material decline in, the liquidity
in the market for trading in any futures contract underlying the Index occurs; (viii) any event or any condition (including without limitation any event or condition that occurs as a result of the enactment, promulgation, execution,
ratification, interpretation or application of, or any change in or amendment to, any law, rule or regulation by an applicable governmental authority) that results in an illiquid market for trading in any futures contract underlying the Index
occurs; or (ix) the declaration or continuance of a general moratorium in respect of banking activities occurs in any relevant city. For purposes of determining whether a Market Disruption Event has occurred, (A) a limitation on the hours
or number of days of trading will not constitute a Market Disruption Event if it results from an announced change in the regular business hours of the Relevant Exchange for the S&P 500® Index or the VIX Index (or any relevant successor index); (B) limitations pursuant to the rules of any Relevant Exchange similar to NYSE Rule 80B (or any
applicable rule or regulation enacted or promulgated by any other self-regulatory organization or any government agency of scope similar to NYSE Rule 80B as determined by S&P) on trading during significant market fluctuations will constitute a
suspension, absence or material limitation of trading; (C) a suspension of trading in an SPX Option or a futures contract on the VIX Index (or futures contract on any relevant successor index) by the Relevant Exchange for the VIX Index (or any
relevant successor index) by reason 

  
 –7–

 
of a price change exceeding limits set by such relevant exchange, an imbalance of orders relating to such options, or a disparity in bid and ask quotes relating to such options will, in each such
case, constitute a suspension, absence or material limitation of trading on such Relevant Exchange; and (D) a “suspension, absence or material limitation of trading” on any Relevant Exchange will not include any time when such
Relevant Exchange is itself closed for trading under ordinary circumstances. “Relevant exchange” means, with respect to the S&P 500® Index, the primary exchange or market of trading for any equity security (or any combination thereof) then included in the S&P 500® Index or, with respect to the VIX Index or any relevant successor index, the primary exchange or market for SPX
Options or futures on the VIX Index (or futures on any relevant successor index). 
 “Maturity Date” means
July 12, 2021, or, if such day is not a Business Day, the next succeeding Business Day; provided, however, if the fifth business day before this day does not qualify as a Valuation Date, then the Maturity Date will be the fifth Business Day
following the Final Valuation Date. 
 “Qualified Financial Institution” means, at any time, a financial
institution organized under the laws of any jurisdiction in the United States of America or Europe that at such time has outstanding debt obligations with a stated maturity of one year or less from the date of issue and rated A-1 or higher by
Standard & Poor’s Ratings Services or any successor, or any other comparable rating then used by that rating agency, or P-1 or higher by Moody’s Investors Service or any successor, or any other comparable rating then used by that
rating agency. 
 “Scheduled Trading Day” means, in respect of the Index, any day on which (a) the value
of the Index is published, and (b) trading is generally conducted on the markets on which the securities comprising the Index are traded, in each case as determined by the Calculation Agent in its sole discretion. 

“Trading Day” means a day on which (1) it is a business day in New York City, (2) trading is generally
conducted on the NYSE Arca, and (3) trading is generally conducted on the markets on which the components of the Index, are traded, as determined by the Calculation Agent in its sole discretion. 

“Valuation Date” each Trading Day from July 8, 2011 to July 2, 2021, subject to postponement as a result of
Market Disruption Events, such postponement not to exceed five Trading Days. We refer to July 8, 2011 as the “Initial Valuation Date” and July 2, 2021 as the “Final Valuation Date”. 

 
  

1. Promise to Pay at Maturity or Upon Early Redemption 
 Barclays Bank PLC, a public limited company duly organized and existing under the laws of England and Wales (herein called the “Company,” which term includes any successor Person under
the Indenture hereinafter referred to), for value received, hereby promises to pay (or cause to be paid) to Cede & Co., as nominee for The Depository Trust 

  
 –8–

 
Company, or registered assigns, the amount as calculated and provided under (i) “Holder Redemption” and elsewhere on the face this Security on the applicable Holder Redemption
Date, in the case of any Securities in respect of which the Holder exercises such Holder’s right to require the Company to redeem such Holder’s Securities prior to the Maturity Date, (ii) “Issuer Redemption” and elsewhere on
the face this Security on the applicable Issuer Redemption Date, in the case the Company exercises its right to redeem the Securities prior to the Maturity Date, (ii) “Automatic Termination Event” and elsewhere on the face of this
Security on the applicable Automatic Redemption Date, in the case of a Automatic Termination Event and (iii) “Payment at Maturity” and elsewhere on the face of this Security, on the Maturity Date. 

2. Payment of Interest 
 The principal of this Security shall not bear interest. 
 3. Discontinuance or
Modification of the Index; Market Disruption Event 
 If the Index Sponsor discontinues publication of the Index, and
Barclays Capital or any other person or entity publishes an index that the Calculation Agent determines is comparable to the discontinued Index and the Calculation Agent approves such index as a successor index, then the Calculation Agent will
determine the value of the Index on the applicable Valuation Date and the amount payable on the Maturity Date or any Redemption Date by reference to such successor index. 
 If the Calculation Agent determines that the publication of the Index is discontinued and that there is no successor index, or that the closing level of the Index is not available for any reason, on the
date on which the level of that Index is required to be determined, the Calculation Agent will determine the amount payable by a computation methodology that the Calculation Agent determines will as closely as reasonably possible replicate the
Index. 
 If the Calculation Agent determines that the Index or the method of calculating the Index has been changed at any time
in any respect, and whether the change is made by the relevant Index Sponsor under its existing policies or following a modification of those policies, is due to the publication of a successor index, or is due to any other reason – then the
Calculation Agent will be permitted (but not required) to make such adjustments to that Index or method of calculating that Index as it believes are appropriate to ensure that the level of the Index used to determine the amount payable on the
Maturity Date is equitable. 
 The Calculation Agent shall have the right to make all determinations and adjustments with
respect to the Index in its sole discretion. 
 4. Payment at Maturity, Upon Holder Redemption, Upon Issuer Redemption or
Automatic Termination Event 
 The payment of this Security that becomes due and payable on the Maturity Date, on a Holder
Redemption Date, an Issuer Redemption Date or Automatic Termination Event, as the case may be, shall be the cash amount that must be paid to redeem this Security as provided above under “Payment at Maturity”, “Holder Redemption”,
“Issuer Redemption” and 

  
 –9–

 
“Automatic Termination Event”, respectively. The payment of this Security that becomes due and payable upon acceleration of the Maturity Date hereof after an Event of Default has
occurred pursuant to the Indenture shall be the Default Amount. When the payment referred to in either of the two preceding sentences has been paid as provided herein (or such payment has been made available), the principal of this Security shall be
deemed to have been paid in full, whether or not this Security shall have been surrendered for payment or cancellation. References to the payment at maturity or upon early redemption of this Security on any day shall be deemed to mean the payment of
cash that is payable on such day as provided in this Security. Notwithstanding the foregoing, solely for the purpose of determining whether any consent, waiver, notice or other action to be given or taken by Holders of Securities pursuant to the
Indenture has been given or taken by Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of this Security will be deemed to equal the Face Amount. This Security shall cease to be Outstanding as
provided in the definition of such term in the Indenture when the principal of this Security shall be deemed to have been paid in full as provided above. 
 5. Redemption Mechanics 
 (a) Holder Redemption. Subject to the minimum
redemption amount provided under “Holder Redemption”, the Holder may require the Company to redeem the Holder’s Securities on any Redemption Date during the term of the Securities provided that such Holder (i) delivers a notice
of redemption to the Company via electronic mail by no later than 4:00 p.m. New York City time on the Business Day prior to the applicable Valuation Date; (ii) delivers a signed confirmation of redemption to the Company via facsimile by no
later than 5:00 p.m. New York City time on the same day; (iii) instructs the Holder’s DTC custodian to book a delivery versus payment trade with respect to the Holder’s Securities on the applicable Valuation Date at a price per
Security equal to the applicable Closing Indicative Note Value on the applicable Valuation Date facing Barclays Capital DTC 5101; and (iv) causes the Holder’s DTC custodian to deliver the trade as booked for settlement via DTC prior to
10:00 a.m. New York time on the applicable Holder Redemption Date, which shall be the third Business Day following the applicable Valuation Date (other than the Final Valuation Date). The final Redemption Date shall be the third Business Day
following such Valuation Date that is immediately prior to the Final Valuation Date. 
 (b) Issuer Redemption. If the Company
elects to exercise its right to redeem the Securities under “Issuer Redemption”, the Company will deliver written notice of such election to redeem to the Holder of such Securities not less than ten calendar days prior to the Issuer
Redemption Date specified by the Company in such issuer redemption notice. The Final Valuation Date will be deemed to be the fifth Trading Day prior to the Issuer Redemption Date (subject to postponement in the event of a Market Disruption Event),
and the Securities will be redeemed on the Issuer Redemption Date specified by the Company in such issuer redemption notice, but in no event prior to the tenth calendar day following the date on which the Company delivers such issuer redemption
notice. 
 (c) Automatic Termination Event. Upon the occurrence of an Automatic Termination Event, the Company will
automatically redeem the Securities on the Automatic Redemption Date and will deliver a notice of redemption to DTC in the form attached as Annex 

  
 –10–

 
C to the pricing supplement, specifying such date. Upon such redemption, the Holder will receive a cash payment equal to the Automatic Redemption Value for each Security, which shall be specified
in such notice. If a market disruption event occurs and is continuing following the occurrence of an Automatic Termination Event and the Calculation Agent is prevented from determining the Automatic Redemption Value, the Company will deliver a
notice to DTC specifying the occurrence of an Automatic Termination Event and will deliver a separate notice to DTC to specify the Automatic Redemption Date and the relevant Automatic Redemption Value following the resolution of the applicable
market disruption event. 
 6. Role of Calculation Agent 

Initially, the Company will serve as the Calculation Agent. The Company may change the Calculation Agent after the Original Issue Date of
the Securities without notice. The Calculation Agent will, in its sole discretion, make all determinations regarding the value of the Securities, including at maturity or upon holder redemption, issuer redemption or redemption arising from an
Automatic Termination Event, Market Disruption Events, Valuation Dates, Business Days, Trading Days, the Closing Indicative Note Value, the Long Index Amount, the Financing Level, the Daily Financing Charge, the Daily Investor Fee, the Default
Amount, the Maturity Date, the amount payable in respect of the Securities at maturity, upon holder redemption, issuer redemption and upon the occurrence of an Automatic Termination Event and any other calculations or determinations to be made by
the Calculation Agent as specified herein. The Calculation Agent shall make all such determinations and calculations in its sole discretion, and absent manifest error, all determinations of the Calculation Agent shall be final and binding on the
Company, the Holder and all other Persons having an interest in this Security, without liability on the part of the Calculation Agent. 
 The Calculation Agent reserves the right to make adjustments to correct errors contained in previously published information and to publish the corrected information, but is under no obligation to do so
and shall have no liability in respect of any errors or omissions contained in any subsequent publication. 
 7. Payment

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

  
 –11–

 8. Reverse of this Security 

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

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
 10.
Prospectus 
 Reference is made to (i) the Prospectus related to the Securities, dated August 31, 2010,
(ii) the Prospectus Supplement, dated May 27, 2011 and (iii) the Pricing Supplement, dated July 8, 2011, (together, the “Prospectus”). The terms and conditions of this Security as fully set forth in the
Prospectus are hereby incorporated by reference in their entirety into this Security and binding upon the parties hereto. In the event of a conflict between the terms of the Prospectus and the terms of this Security, the Prospectus will control and
if the Prospectus provides for a specific United States tax characterization, by purchasing a Security, you agree (in the absence of a change in law, an administrative determination or a judicial ruling to the contrary) to be bound for United States
federal income tax purposes to such tax characterization. Copies of the Prospectus are available from the Company or any underwriter or any dealer participating in the offering by calling toll free, 1-888-227-2275 (extension 2-3430). 

 

  
 –12–

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

 

			
	BARCLAYS BANK PLC
		
	By:	 	
		 	Name:
		 	Title:

  

			
	By:	 	
		 	Name:
		 	Title:

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

 Dated: 
  

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

  
 –13–

 (Reverse of Security) 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”) issued and
to be issued in one or more series under an Indenture, dated as of September 16, 2004 (herein called the “Indenture,” which term shall have the meaning assigned to it in such instrument), between the Company and The Bank of New
York Mellon, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee, the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. Insofar as the provisions of the Indenture may conflict with the
provisions set forth on the face of this Security, the latter shall control for purposes of this Security. 
 This Security is
one of the series designated on the face hereof. References herein to “this series” mean the series designated on the face hereof. 
 Payments under the Securities will be made without deduction or withholding for, or on account of, any and all present or future income, stamp and other taxes, levies, imposts, duties, charges, fees,
deductions or withholdings (“Taxes”) now or hereafter imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom or any political subdivision or authority thereof or therein having the power to tax (each
a “Taxing Jurisdiction”), unless such deduction or withholding is required by law. If any such Taxes are at any time required by a Taxing Jurisdiction to be deducted or withheld, the Company will, subject to the exceptions and
limitations set forth in Section 10.04 of the Indenture, pay such additional amounts of the principal of such Security and any other amounts payable on such Security (“Additional Amounts”) as may be necessary in order that the
net amounts paid to the Holder of any Security, after such deduction or withholding, shall equal the amounts of the principal of such Security and any other amounts payable on such Security which would have been payable in respect of such Security
had no such deduction or withholding been required. 
 If at any time the Company determines that as a result of a change in or
amendment to the laws or regulations of a Taxing Jurisdiction (including any treaty to which such Taxing Jurisdiction is a party), or a change in an official application or interpretation of such laws or regulations (including a decision of any
court or tribunal), either generally or in relation to any particular Securities, which change, amendment, application or interpretation becomes effective on or after the Original Issue Date in making any payment of, or in respect of, the principal
amount of the Securities, the Company would be required to pay any Additional Amounts with respect thereto, then the Securities will be redeemable upon not less than 35 nor more than 60 days’ notice by mail, at any time thereafter, in whole but
not in part, at the election of the Company as provided in the Indenture at a redemption price equal to the principal amount thereof. 
 (Reverse of Security continued on next page) 

  
 –14–

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof
and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time Outstanding of all series to be affected (considered together as one class for this purpose). The Indenture also contains provisions (i) permitting the Holders of a majority in
aggregate principal amount of the Securities at the time Outstanding of all series to be affected under the Indenture (considered together as one class for this purpose), on behalf of the Holders of all Securities of such series, to waive compliance
by the Company with certain provisions of the Indenture and (ii) permitting the Holders of a majority in aggregate principal amount of the Securities at the time Outstanding of any series to be affected under the Indenture (with each such
series considered separately for this purpose), on behalf of the Holders of all Securities of such series, to waive certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not
have any right to institute any proceeding, judicial or otherwise, with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written
notice of a continuing Event of Default with respect to the Securities of this series, the Holders of not less than 25% in aggregate principal amount of the Securities of this series at the time Outstanding shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request, and the Trustee shall not have
received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof on or after the respective due dates expressed herein. 

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 No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of this Security as herein provided. 
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Senior Debt Security Register, upon surrender of this Security for
registration of transfer at the office or agency of the Company in any place where the principal of this Security is payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Senior
Debt Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing. Thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees. 
 Any return on this Security that may be deemed to be interest will
in no event be higher than the maximum rate permitted by New York law, as it may be modified by U.S. law of general application 

This Security, and any other Securities of this series and of like tenor, are issuable only in registered form without coupons in
denominations of any multiple of $30. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor
of a different authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for
any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 This Security and the Indenture shall be governed by and construed in accordance with the laws of the State of
New York. 
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