Document:

106TSARBSGlobalTradeCtr (1)

EXECUTION VERSION

Dated September 29, 2014
RBS GLOBAL TRADE SERVICE CENTRE PRIVATE LIMITED and
CITIZENS BANK, N.A.
TRANSITIONAL SERVICES AGREEMENT

    

TRANSITIONAL SERVICES AGREEMENT
THIS TRANSITIONAL SERVICES AGREEMENT (“TSA”), dated as of September 29, 2014, is by and between RBS GLOBAL TRADE SERVICE CENTRE PRIVATE LIMITED, a company incorporated under the laws of India, whose registered office is at Empire Complex, 414 Senapati Bapat Marg, Lower Parel, Mumbai 400 013 India and whose processing centres are located at Mumbai, Chennai and Gurgaon  (“PROVIDER”); and CITIZENS BANK, N.A a United States national bank with its principal place of business at 1 Citizens Plaza, Providence, Rhode Island 02903, formerly known as RBS Citizens, N.A.. (“Recipient”), Capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to them in Section 1 hereof.
RECITALS
WHEREAS, The Royal Bank of Scotland Group plc (“RBSG”) is the indirect owner of all the issued and outstanding common stock of Citizens Financial Group, Inc. (“CFG”) immediately prior to the date hereof;
WHEREAS, shares of CFG are being sold to the public pursuant to the IPO and CFG will cease to be a wholly owned indirect subsidiary of RBSG upon the closing of the IPO;
WHEREAS, after the closing of the IPO, RBSG will remain the majority shareholder of CFG, subject to future sales to the public (and ultimately the contemplated complete disposition by on or before December 31, 2016) by RBSG;
WHEREAS, the Provider is an Affiliate of RBSG and the Recipient is an Affiliate of CFG;  
WHEREAS immediately prior to the date hereof, the Provider was providing services to the Recipient which were the same as Services to be provided thereunder pursuant to the terms of a Services Agreement between the Provider and the Recipient effective 1 May, 2014, (“Original SA”) which incorporated by reference a master services agreement between The Royal Bank of Scotland N.V. (formerly known as ABN AMRO Bank N.V.) and the Recipient effective 10 June, 2008 (“Original MSA”);
WHEREAS, as of the date hereof and pursuant to the terms of (and except as otherwise provided in) a Separation Agreement, all master agreements, statements of work, service schedules and similar agreements, including the Original  MSA and Original SA are terminated;
WHEREAS, the Provider has agreed to procure and provide the Services as specified in the Service Schedule to the Recipient, and the Recipient has agreed to receive and pay for the Services received pursuant to the Service Schedule, subject to the terms of this TSA to facilitate the Recipient’s ongoing operations during a transitional period following the IPO; and
NOW, THEREFORE, in consideration of the rights and duties set forth herein, and for other good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the Provider and the Recipient hereby agree as follows:

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	1
	Definition and Rules of Construction

		
	1.1
	Definitions 

For the purposes of this TSA, the following terms shall have the following meanings:
“Adverse Policy Change” has the meaning given in Section 2.3.4;
 Affiliate” means, in relation to any Party, its holding companies and direct and indirect subsidiaries and the direct and indirect subsidiaries of such holding companies from time to time; however, for purposes of this TSA the Parties shall not be considered Affiliates of each other. For the avoidance of doubt, in respect of the Provider, Affiliates shall not include the Recipient or its subsidiaries; and, in respect of the Recipient, Affiliates shall not include the Provider or its other subsidiaries and “Affiliates” shall be construed accordingly;
“Anti-Bribery and Corruption Policy” means each policy that a Party shall put in place to comply with its own anti-bribery and corruption policy and obligations, and with Anti-Corruption Laws;
“Anti-Corruption Laws” means any anti-bribery or anti-corruption related provisions in criminal and anti-competition laws and/or anti-bribery or anti-corruption laws of the jurisdiction in which, for the Provider, the Provider provides the Services and, for the Recipient, the Recipient receives the Services, together with any amending, consolidating or successor legislation or case law which has effect from time to time in the relevant jurisdiction; 
“ARD” has the meaning given in Section 15.1.1;
“Business Day” means a day which is not a Saturday, Sunday or a public holiday in New York or Boston;
 “CFG” means Citizens Financial Group, Inc.; 
“Change” means any modification, addition or amendment to any Service (including any change to any part of any Service Schedule) including any Mandatory Change or Discretionary Change;
“Change Control Procedure” means the procedure set out in Section 10.1.1;
“Change Control Request” has the meaning given in Section 10.1.1(i);
“Charges” means collectively the fees payable under each Service Schedule for the provision of Services; 
“Competent Authority” means any local, state, national, supranational, governmental or nongovernmental authority, statutory undertaking, agency or public or regulatory body (including the Prudential Regulation Authority, the Financial Conduct Authority, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation and the Consumer Financial Protection Bureau) which has jurisdiction over the Provider (and/or its Affiliates) and/or  the Recipient (and/or its Affiliates);
“Confidential Information” has the meaning given in Section 13.2.1;

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“Defaulting Party” has the meaning given to it in Section 6.7.1;
“Disabling Device” means any device, method, token, code, program or sub-program that can disable, interfere with or adversely affect all or any part of a Service, a Party’s equipment, and/or their operation, or destroy any of a Party’s data or other software or hardware, or damage, destroy or interfere with a Party’s information technology network or any of a Party’s  data or other software or hardware, or permit any person to circumvent the normal security of a Party’s software, systems or networks;
 “Discretionary Change” means any Change which is not a Mandatory Change or an Emergency;
“Dispute” has the meaning given in Section 11.1.1;
“Emergency” has the meaning given in Section 10.4.2; 
“Existing Third Party Agreement” means any Third Party Agreement in force as at the date hereof, as the same may be amended from time to time and any extension, replacement or renewal of such agreement;
 “Force Majeure” has the meaning given in Section 14.1;
“Fraud Prevention Policy” means anti-fraud measures or policies that the Provider shall have in place whenever it possesses, stores, processes or has access to the Recipient’s Personal Data, as listed in Schedule 2;
“GLB Act” means the Gramm-Leach-Bliley Act, 15 U.S.C. 6801 et seq;
“Group” means, in relation to a Party, that Party and its Affiliates;
“Indemnitees” has the meaning given in Section 8.3.1;
“Intellectual Property Rights” means (i) copyrights (including copyrights in any software), patents, database rights and rights in trademarks, designs, know-how and confidential information (whether registered or unregistered), (ii) applications for registration, and rights to apply for registration, of any of the foregoing rights and (iii) all other intellectual property rights and equivalent or similar forms of protection existing anywhere in the world; 
“IPO” means the initial public offering of CFG’s shares;
“IS Requirements” means the information security policies that the Provider shall have in place whenever it possesses, stores, processes or has access to the Recipient’s Confidential Information (inclusive of Personal Data) as listed in Schedule 2;
“Losses” means losses, claims, damages, costs, charges and liabilities (including reasonable legal fees and disbursements) and “Loss” shall be construed accordingly;
“Mandatory Change” means a Change which is required as a consequence of any change in Regulation on or subsequent to the date hereof in order for (i) the Recipient to receive Services or to perform Recipient Dependencies and/or (ii) the Provider to provide (or procure the provision of), Services or to perform any of its other obligations under this TSA, in each case in compliance with Regulation;

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 “Migration” means the migration of Services in whole or part from the personnel and information technology systems or other facilities of the Provider, its Affiliates or Third Party Suppliers to the personnel and information technology systems or other facilities of the Recipient, and/or its Affiliates and/or Successor Providers, provided, however, that Migration does not require or otherwise give rise to an obligation on the part of a Provider, its Affiliates or Third Party Suppliers to grant any Successor Provider access to the Provider Systems; 
“Monthly Charge” has the meaning given in Section 8.2.1;
“Non-Defaulting Party” has the meaning given in Section 6.7.1;
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury;
“Original MSA” means the Master Services Agreement effective 10 June, 2008 entered into by The Royal Bank of Scotland N.V. (formerly known as ABN AMRO Bank N.V.) and the Recipient;
“Original SA” means the Services Agreement effective 1 May, 2014 entered into by the Provider and Recipient;
“Party” means the Provider or Recipient;
“Personal Data” of a disclosing Party means any data, information and/or records of or pertaining to the disclosing Party’s or an Affiliate’s customers (current, former or prospective) and employees (current, former or prospective) or its customers’ customers (current, former or prospective) or employees (current, former or prospective), including but not limited to names, addresses, telephone numbers, account numbers, account and transaction information and any other “Nonpublic Personal Information” as defined in the GLB Act, relating to such individuals;
“Policies” means the policies and procedures listed in Schedule 2 (as may be amended from time to time in accordance with Sections 2.3.3 and 2.3.4), as applicable to the Provider;
“Provider Data” means all Confidential Information provided in relation to the Services to the Recipient, any Affiliate of the Recipient, or any Successor Provider, by or on behalf of the Provider or any Affiliate of the Provider or any Third Party Supplier;  
“Provider Systems” means the information technology systems made available to the Recipient pursuant to this TSA by or on behalf of the Provider, any Affiliate of the Provider or any Third Party Supplier, which are supported and maintained by or on behalf of the Provider, any Affiliate of the Provider or any Third Party Supplier;
“RBSG” means The Royal Bank of Scotland Group plc; 
“Recipient Data” means all Confidential Information: 
		
	(i)
	including, without limitation, all Personal Data provided in relation to the Services to the Provider, any Affiliate of the Provider  or any Third Party Supplier, by or on behalf of the Recipient or any Affiliate of the Recipient; or 

		
	(ii)
	generated by the Provider, any Affiliate of the Provider, or any Third Party Supplier in the course of providing the Services, 

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“Recipient Dependencies” means the obligations of the Recipient under this TSA including those expressly identified as Recipient Dependencies in the Service Schedule and any other obligations of the Recipient otherwise set out in the description of the Services in the Service Schedule;
“Regulation” means any applicable law, regulation, regulatory constraint, obligation or rule (including any binding code of conduct and binding statement of principle incorporated and contained in such rules) applicable to the existence or operation of this TSA, the Recipient, the Provider, any Affiliate of the Provider, any Affiliate of the Recipient or the provision or receipt of the Services, the performance of any Recipient Dependency or the performance of either Party’s other obligations under this TSA from time to time;
“Scheduled TSA End Date” means the earlier of (i) December 31, 2016, and (ii) the first date on which RBSG ceases to beneficially own such number of shares of CFG common stock representing at least 26% of the voting power of all outstanding shares of CFG common stock; 
“Senior Nominees” means the senior individuals nominated by each Party;
Separation Agreement” means the Separation and Shareholder Agreement between RBSG and CFG dated on or about the date of this TSA;
“Service Level” means the level of performance set out in the Service Schedule;
“Service Records” means complete and accurate records of, and supporting documentation for, the Services provided pursuant to this TSA;
“Service Schedule” means the Service Schedule in Schedule 1 of this TSA, which describes the terms and obligations of the Provider and the Recipient in relation to the Services, and any extension or renewal schedule, as agreed by the Parties, which has the effect of extending or amending the Service Schedule Expiry Date in respect of the Services;
“Service Schedule Expiry Date” means the date of cessation of the Services  specified in the Service Schedule;
“Services” means the services (or any element of the services) specified in the Service Schedule and “Service” means any element of the Services; 
“Staff” has the meaning given in Section 15.1.3;
“Successor Provider” means the entity or entities (which may include the Recipient or any member of its Group) succeeding the Provider in the provision or operation of services the same as or substantially similar to all or part of the Services;
“Tax means all taxes, charges, imposts, levies and duties of any kind payable to any governmental, fiscal or taxing authority in the United States, India, United Kingdom or elsewhere in the world. The definition of “tax” includes any penalties, additions, fines or associated interest. The words “taxes” and “taxation” and similar expressions shall be interpreted in accordance with this definition;
“Term” means the term of this TSA which period shall start on the date hereof and expire (unless terminated earlier in accordance with this TSA) in accordance with the provisions of Sections 6.2 and 6.3;

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“Third Party Agreements” means any agreements entered into between the Provider (or any of its Affiliates) and any third party for the provision of a service, goods, lease or license relating to, or necessary for, the provision of the Services or performance of any of the Provider’s other obligations under this TSA whether entered into before or after the date of this TSA; 
“Third Party Consent” means any permission, consent, license, agreement, authorization or “right to use” required, from a third party (whether under a Third Party Agreement or otherwise): 
		
	(i)
	by the Provider, to the extent necessary to allow the provision of the Services or performance of the Provider’s other obligations under this TSA by the Provider to or for the benefit of the Recipient or receipt of the Services by the Recipient; or

		
	(ii)
	by the Recipient, to the extent necessary for the Recipient to receive the benefit of the Services provided by the Provider under this TSA;

“Third Party Supplier” means any third party providing a service, goods, lease or license under a Third Party Agreement; 
“TSA” means this transitional services agreement;
		
	1.2
	Rules of Construction

Unless the context otherwise requires or except as otherwise expressly provided the following rules of construction shall apply to this TSA.
		
	1.2.1
	Singular, Plural, Gender

References to one gender include all genders and references to the singular include the plural and vice versa.
		
	1.2.2
	References to Persons and Companies

References to:
		
	(i)
	a person shall include any company, partnership, trust, joint venture, firm, association, unincorporated association, organization, or any government, state or local body or authority (whether or not having separate legal personality); and

		
	(ii)
	a company shall include any company, corporation or any body corporate, wherever incorporated.

		
	1.2.3
	Schedules, Sections, Appendices, Paragraphs

References to this TSA shall include any Schedules to it and references to Sections and Schedules are to Sections of, and Schedules to, this TSA. References to paragraphs and appendices are to paragraphs and appendices of the Schedules. All Schedules are an integral part of this TSA.

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	1.2.4
	Headings

The article, Section and paragraph headings contained in this TSA are for reference purposes only and shall not affect in any way the meaning or interpretation of this TSA.
		
	1.2.5
	Includes, in writing

The words “includes” and “including” shall mean “include without limitation” and “including without limitation”, respectively. The words “in writing” means any communication made by letter (but not, for avoidance of doubt, electronic mail) and “written” shall be interpreted accordingly.
		
	1.2.6
	Agreed

References to “agreed” mean, in relation to any document, that document in the form agreed and, for the purposes of identification, signed or initialed by or on behalf of each Party by a duly authorized representative, with such alterations as the Parties agree in writing.
		
	1.2.7
	Information

References to books, records or other information mean books, records or other information in any form including paper, electronically stored data, magnetic media, film and microfilm. 
		
	1.2.8
	References to Law

References to a statute or statutory provision include:
		
	(i)
	that statute or provision as modified or amended from time to time, whether before or after the date of this TSA; and

		
	(ii)
	any subordinate legislation or regulation made from time to time under that statute or statutory provision, including (where applicable) that statute or statutory provision as modified or amended.

		
	1.2.9
	Precedence

If there is any conflict, apparent conflict or ambiguity in or between any of sections of this TSA set out below, the sections will be applied in the following order of precedence with the sections higher in the order of precedence prevailing over the Parties:
		
	(i)
	the Sections of this TSA;

		
	(ii)
	the Schedules to this TSA; and

		
	(iii)
	any other document referred to in this TSA. 

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	1.2.10
	Costs

Any reference to “costs” shall mean costs (including internal costs arising in respect of personnel and other related costs) and expenses (including charges, fees and other amounts payable to third parties).
		
	2
	Performance of Services

		
	2.1
	Provision of Services and Relief 

		
	2.1.1
	[Not Used]. 

		
	2.1.2
	The Provider shall provide the Services to the Recipient during the Term in accordance with the terms of this TSA. The Recipient shall timely pay the Provider for all Services provided in accordance with the terms of this TSA. 

		
	2.1.3
	Without prejudice to the Mandatory Change provisions set out in Section 10.2, the Provider shall not be in breach of this TSA to the extent that it is unable to provide any of the Services or perform any of its other obligations under this TSA, in each case to the extent that to do so would result in a breach of Regulation so long as, if and to the extent commercially practicable, the Provider has promptly notified the Recipient of such prohibition, has consulted with the Recipient to explain why the Provider reasonably believes such prohibition applies, and has worked together with the Recipient in good faith to either arrange for modification of the Services at issue or a transition of the Services to a Successor Provider. For the avoidance of doubt, the transition of the Services to a Successor Provider pursuant to this Section 2.1.3 terminates the Services and the Service Schedule under this TSA and does not create a Third Party Agreement for which the Provider is responsible for the remainder of the Term with respect to the Services.

		
	2.1.4
	Subject to the requirements set forth below, the Provider may subcontract the provision of any or all of the Services or any of the Provider’s other obligations under this TSA. Except in relation to an Existing Third Party Agreement:

		
	(i)
	in selecting the subcontractor in question, the Provider shall have followed its applicable Policies on vendor procurement and approval;

		
	(ii)
	the Provider will notify the Recipient in advance of entering into any subcontract;

		
	(iii)
	the Provider shall ensure any Third Party Consent that is required for the Recipient to receive the Services (and to sublicense to the extent necessary to receive the full benefit of the Services) is obtained and maintained for the duration of the Term;

		
	(iv)
	the Provider shall be entitled to increase the Charges to reflect any increase in the costs incurred by the Provider under that subcontract, compared to the costs previously incurred by the Provider; and

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	(v)
	the Provider shall  furnish the Recipient with information about the subcontractor in question which is reasonable for diligence purposes, and the Recipient approves of the use of the subcontractor via the Change Control Procedure, with such approval not be unreasonably withheld or delayed.

		
	2.1.5
	The Provider shall be primarily liable under this TSA for any default in the performance of obligations under this TSA by any subcontractor of the Provider.

		
	2.2
	 [Not Used]

		
	2.3
	Standard of Service

		
	2.3.1
	The Provider shall provide the Services in accordance with the Service Level.

		
	2.3.2
	Subject to the Change Control Procedure with respect to any change in Regulation coming into effect after the date hereof, the Provider shall provide and procure the provision of the Services in compliance with the Regulation applicable to the Provider.

		
	2.3.3
	Subject to the Change Control Procedure with respect to any change in Regulation coming into effect after the date hereof, the Provider shall provide and procure the provision of the Services in accordance with the Policies applicable to the Provider. 

		
	2.3.4
	Without prejudice to Section 2.3.3, if and to the extent that any proposed change to the Policies would materially increase the risk or reduce the operational controls available to the Provider or the Recipient in connection with the provision or receipt of the Services or materially increase the cost or reduce the benefit to the Recipient in receiving the Services or the Provider in providing the Services (an “Adverse Policy Change”), the Provider shall undertake an impact assessment in advance of the change being implemented and involve the Recipient in that impact assessment. In respect of any Adverse Policy Change the Parties shall, acting reasonably and in good faith, develop, agree and implement a remedial plan with the objective of mitigating any material increase in risk or reduction in operational controls available to the Provider or the Recipient in connection with the provision or receipt of the Services or material increase in the cost or reduction in the benefit to the Recipient or Provider in receiving or providing the Services. Any obligations set out in the Service Schedule which require compliance with policies shall be construed as referring to the Policies.

		
	2.3.5
	If and to the extent the Provider is aware of any material failure, or any circumstances that, in the Provider’s reasonable opinion, would be reasonably likely to result in a material failure, to provide any material part of the Services in accordance with Section 2.3.1, 2.3.2 or 2.3.3, then, without prejudice to the Recipient’s other rights and remedies, the Provider shall as soon as reasonably practicable:

		
	(i)
	inform the Recipient of such failure or potential failure (and, if known, what the Provider considers to be the cause of the problem); 

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	(ii)
	advise the Recipient of the remedial efforts being undertaken with respect to that failure or to prevent that potential failure; and

		
	(iii)
	subject to any duty of confidentiality owed by the Provider, provide the Recipient with further information in relation to the failure or potential failure if and to the extent that information has been produced by, or is otherwise in the possession or control of, the Provider or any of its Affiliates for its own purposes and the Recipient reasonably requires that information at the time in order to manage communications with its customers, employees, investors, suppliers and any Competent Authority.  

		
	2.4
	Recipient Dependencies

		
	2.4.1
	The Service Schedule shall specify any “Recipient Dependencies” for the relevant Service, specific obligations to be performed by the Recipient under the Service Schedule in order for the Provider under the Service Schedule to be able to provide the relevant Service to the Recipient.

		
	2.4.2
	If and to the extent the Recipient is aware of any material failure, or any circumstances that, in the Recipient’s reasonable opinion, would be reasonably likely to result in a material failure, to perform any material part of the Recipient Dependencies that are set out in the Service Schedule in accordance with this TSA, then, without prejudice to the Provider’s other rights and remedies, the Recipient shall, as soon as reasonably practicable:

		
	(i)
	inform the Provider of such failure or potential failure and, if known, what the Recipient considers to be the cause of the problem; and 

		
	(ii)
	undertake appropriate remedial efforts and promptly advise the Provider of the remedial efforts being undertaken with respect to that failure or to prevent that potential failure.

		
	2.4.3
	Without prejudice to any right or remedy of the Provider under this TSA in respect of any other obligations of the Recipient (including in relation to any Recipient Dependency or any Incidental Service performed by a Recipient which is not set out in a Service Schedule), if and to the extent the Recipient fails to perform a Recipient Dependency that is set out in the Service Schedule, Section 2.4.4 sets out the Provider’s sole and exclusive remedy in respect of the failure by the Recipient to meet that Recipient Dependency other than with respect to:

		
	(i)
	any such failure which causes unauthorized or unlawful access by a third party to the Provider’s computing systems or loss or corruption of the Provider’s data; or

		
	(ii)
	any obligation of the Recipient to pay any amount (including any Charges) to the Provider under this TSA. 

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	2.4.4
	Each Party recognizes that the Provider is reliant and dependent on the performance of the Recipient Dependencies in order to provide the Services and to perform its other obligations under this TSA. The Provider shall not be in breach of this TSA to the extent that its failure to provide the Services or perform its other obligations under this TSA is a result of a breach by the Recipient of a Recipient Dependency (provided that such relief shall not prejudice any rights or remedies of the Recipient in respect of any prior breach by the Provider, to the extent that such prior breach caused the Recipient’s breach of the relevant Recipient Dependency and was not itself caused by a breach by the Recipient of a Recipient Dependency). Any disputes relating to the Provider’s relief from a breach by the Recipient of a Recipient Dependency shall be resolved in accordance with Section 11. Nothing in this Section 2.4.4 shall exclude or limit the liability of the Provider in relation to any failure to provide the Services or perform its other obligations under this TSA to the extent that such failure is not the result of a breach by the Recipient of a Recipient Dependency.

		
	2.4.5
	The Recipient shall not be in breach of this TSA to the extent that its failure to perform a Recipient Dependency is a result of a breach by the applicable Provider of an obligation of the Provider (provided that such relief shall not prejudice any rights or remedies of the Provider in respect of any prior breach by the Recipient, to the extent that such prior breach caused the Provider’s breach of the relevant obligation and was not itself caused by a breach of the Provider’s obligations under this TSA). Nothing in this Section 2.4.5 shall exclude or limit the liability of the Recipient in relation to any failure to perform a Recipient Dependency to the extent that such failure is not the result of a breach by the Provider of its obligations under this TSA.

		
	2.5
	Service Reporting

		
	2.5.1
	 During the Term the Provider shall, with respect to each Service for which the Service Schedule requires a certain Service Level, provide to the Recipient, as part of its monthly performance reports a set of hard copy and soft copy reports to verify the Provider’s performance and compliance with the Service Levels. 

		
	2.5.2
	The Parties will review the Provider’s performance against the Service Levels for the previous reporting period.  

		
	3
	Third Party Suppliers

		
	3.1
	Termination, Expiry or Renewal of Third Party Agreements 

		
	3.1.1
	If, during the Term: 

		
	(i)
	a Third Party Agreement is terminated by the Provider (or any member of its Group) or by the Third Party Supplier (for any reason other than Force Majeure (for which Section 14.2 shall apply) or for insolvency of the Third Party Supplier (for which Section 3.1.3 shall apply)); or

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	(ii)
	a Third Party Agreement expires or is terminated other than as provided in Section 3.1.1(i), or; 

		
	(iii)
	a Third Party Agreement otherwise ceases to be available to a Provider for the provisions of Services to a Recipient (for example, by virtue of application of a change of control or similar provision), 

and that Third Party Agreement is required for the provision or receipt of any Service or the performance of any obligation of the Provider or the Recipient, then subject to the provisions of Section 3.1, the Provider shall use commercially reasonable efforts to implement such arrangements as are necessary to ensure continuity of the relevant Service on the same terms of the Service Schedule and this TSA, unless otherwise agreed by the Parties in advance. 
		
	3.1.2
	Each Party shall use commercially reasonable efforts to mitigate to the extent within its reasonable control any costs required to be incurred in respect of the negotiation and implementation of any change to, or extension, renewal or replacement of a Third Party Agreement and migration to an alternative Third Party Supplier.

		
	3.1.3
	In the event of the insolvency of a Third Party Supplier required for the provision or receipt of a Service or the performance of any obligation of the Provider or the applicable Recipient for such Service, the Provider may discontinue (which, for the avoidance of doubt, shall include electing not to replace) such Service without the discontinuance being a breach or causing any liability of the Provider to the relevant Recipient.

		
	3.1.4
	For the avoidance of doubt, the provisions of Section 3.1.1 through Section 3.1.3, inclusive, shall not affect the rights of a Provider to terminate the Services, or for the Services to terminate, pursuant to the terms of the Service Schedule.

		
	3.2
	Changes in Third Party Supplier Costs

		
	3.2.1
	In the event that a Third Party Supplier increases or decreases its fees in relation to a Service during the Term:

		
	(i)
	the Provider shall promptly notify the Recipient of the change in fees with such notice to include supporting documentation as might reasonably be expected to explain the change in fees to the Recipient; and

		
	(ii)
	the Charges for the Services shall be adjusted accordingly.

		
	3.3
	Relationship with Third Party Suppliers 

		
	3.3.1
	So far as it relates to the provision of a Service or the performance of the Provider’s other obligations under this TSA, the Provider shall manage exclusively its relationship with Third Party Suppliers and the applicable Recipient shall not discuss with any Third Party Supplier the provision of the Services or the performance of the Provider’s other obligations under this TSA, except: 

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	(i)
	to the extent required to do so by a court, competent judicial authority and/or a Competent Authority; 

		
	(ii)
	as agreed by the Parties; or 

		
	(iii)
	if in the Provider’s opinion and only to the extent reasonably necessary in order for the Recipient to be able to receive the Services under the Service Schedule,

provided in each case that it has notified the Provider in advance (if and to the extent permitted to do so under Regulation). 
		
	3.4
	Liability for Third Party Suppliers

		
	3.4.1
	If the Provider breaches this TSA as a result of the acts or omissions of a Third Party Supplier, the Provider’s liability is subject to the Section 8.2 limitations and caps on liability. 

		
	3.4.2
	Notwithstanding the limitations in Section 3.4.1, any amounts recovered by the Provider from a Third Party Supplier which are in relation to Losses incurred as a result of the acts or omissions of the Third Party Supplier shall be divided among the Provider and Recipient in proportion to their Losses, provided, however, that any amounts paid over to the Recipient shall not exceed the amount of the Recipient’s Losses. For the avoidance of any doubt: 

		
	(i)
	any amounts paid over to the Recipient pursuant to this Section 3.4.2 are independent of and not to be part of any limitations or caps on the liability of the Parties as set forth in Section 8.2; and

		
	(ii)
	if the Provider’s commercially reasonable efforts to recover such amounts from a Third Party Supplier are unsuccessful, such a failure to recover any amounts is not a breach and is not a liability of the Provider.

		
	3.4.3
	Without prejudice to the Parties’ rights and obligations in relation to mitigation of losses at law or in equity, each Provider and Recipient shall use commercially reasonable efforts to mitigate the quantum of Losses and/or any other adverse consequences incurred or suffered by the Recipient as a result of the breach of a Third Party Agreement by a Third Party Supplier (to the extent a Party is aware of such breach).

		
	4
	Price and Payment

		
	4.1
	Charges

		
	4.1.1
	In consideration for the provision of the Services, Recipient agrees to pay to Provider upon the terms and subject to the conditions of this TSA, the Charges in accordance with the then prevailing tax guidelines as to arms length remuneration currently considered to be at cost plus such regulatory transfer pricing mark-up on cost as may be recommended by advisors from time to time.

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	4.2
	Costs

		
	4.2.1
	The costs referred to in Section 4.1 shall mean all direct, managed and indirect costs associated with and attributable to the provision of the Services by Provider. These costs shall be inclusive of, but not limited to, all expenses in so far as they relate to the Services supplied by Provider for salaries, advisory, facilities and equipment plus the expenses to the extent reasonably allocatable to the Services provided by Provider. The appropriate charges for depreciable assets such as facilities and equipment shall be determined in accordance with generally accepted accounting rules.

		
	4.3
	Taxes

		
	4.3.1
	The Charges payable under the Service Schedule are exclusive of any Taxes, which would be applicable from time to time as per statutory requirements and shall be for the account of Recipient.

		
	4.3.2
	Each party shall be responsible for Taxes based on its own net income, employment taxes of its own employees and Taxes on any property it owns or leases.

		
	4.3.3
	All payments made by the Recipient to the Provider will be made without deduction or withholding for or on account of any present or future Taxes, including but not limited to value added tax, turnover tax and withholding taxes, unless Recipient is required by law to deduct or withhold such taxes or duties.

		
	4.3.4
	In such event, the Recipient will pay such additional amounts as may be necessary in order that the net amounts receivable by Provider after such deduction or withholding shall be equal to the amount which would have been receivable in the absence of such deduction or withholding.

		
	4.4
	Payment Terms

		
	4.4.1
	The Services provided are classed as either Business Process Outsourcing (BPO) or Knowledge Process Outsourcing (KPO) which attracts a mark up in accordance with rate prevailing when the invoice is issued, based on benchmarking studies recommended by external advisors. The prevailing rates are detailed on the invoices at the time of issue.

		
	4.4.2
	The invoice currency will be USD.

		
	4.4.3
	Provider will send the invoice in hard-copy format and use the address for invoicing as set out in the Service Schedule.

		
	4.4.4
	The invoice will contain the description as set out in the Service Schedule, failing which the description, “Professional Services Charges rendered by RBS Global Trade Service Centre Private Ltd”,  or other words as agreed by both parties.

		
	4.4.5
	The Provider shall invoice the Recipient monthly. 

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	4.4.6
	The invoices are payable through physical remittance of funds within 30 days of receipt of the relevant invoice. 

		
	4.4.7
	If any part of the Charges is subject to a bona fide dispute then that part of the Charges subject to dispute shall be dealt with in accordance with Section 11 and any part of the Charges that is not subject to dispute is to be paid pursuant to this Section 4.

		
	5
	Representations, Warranties and Mutual Obligations

		
	5.1
	Representations and Warranties 

		
	5.1.1
	Each Party represents and warrants to the other that as at the date hereof:

		
	(i)
	it is duly constituted, organized and validly existing under the laws of the jurisdiction of its incorporation;

		
	(ii)
	it has the legal right and full power and authority to execute and deliver, and it have the legal right and full power and authority to exercise its rights and perform its obligations under, this TSA, the Service Schedule and any documents which are to be executed by it or any of them pursuant to this TSA;

		
	(iii)
	its contemplated provision or receipt, as applicable, of Services in the Service Schedule does not conflict with any other contract to which it is a Party; and

		
	(iv)
	it is satisfied that all Charges for the Services provided hereunder were negotiated and determined on an arm’s-length basis.

		
	5.1.2
	The Provider represents and warrants to the Recipient that as at the date hereof:

		
	(i)
	this TSA and the contemplated provision of the Services pursuant to the Service Schedule is compliant in all material respects with all Regulation applicable to it; and

		
	(ii)
	its contemplated provision of Services in the Service Schedule is compliant in all material respects with the Policies applicable to it.

		
	5.1.3
	The Recipient represents and warrants to the Provider that as at the date hereof this TSA and the contemplated receipt of the Services by it pursuant to the Service Schedule is compliant in all material respects with all Regulation applicable to it, including, for the avoidance of any doubt and to the extent applicable, Regulation W of the Board of Governors of the Federal Reserve System.

		
	5.2
	General Obligations

		
	5.2.1
	Each Party shall:

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	(i)
	subject to the Change Control Procedure with respect to any change in Regulation after the date hereof, comply with Regulation in connection with the performance of its obligations under this TSA including (in the case of the Provider) its provision of the Services and (in the case of the Recipient) its receipt of the Services; 

		
	(ii)
	perform its obligations under this TSA including (in the case of the Provider) its provision of the Services and (in the case of the Recipient) its receipt of the Services;

		
	(iii)
	provide on a timely basis such information and data as the other Party may reasonably require for the purposes of the provision of the Services; and

		
	(iv)
	participate in discussions regarding the provision or receipt of the Services (as applicable) to the extent reasonably required by the other Party in order to enable the Services to be properly provided or received.

		
	5.2.2
	Without prejudice to the Mandatory Change provisions set out in Section 10.2, each Party shall promptly notify the other upon becoming aware of any proposed changes to a Regulation or new Regulation which will or are likely to impact the provision or receipt of the Services.

		
	5.2.3
	If a Party or any of its Affiliates or, to its knowledge, any Third Party Supplier is subject to any investigation by any Competent Authority and such investigation is relevant to the performance of the obligations under this TSA, then, to the extent permitted by Regulation and the Competent Authority, the Party shall as soon as reasonably practicable notify the other Party of such investigation (such notice to contain reasonable detail relating to the reason for the investigation and why it is relevant to the provision or receipt of the Services). The Parties agree to cooperate to the extent reasonable in the event of any such investigation.

		
	6
	Term and Termination

		
	6.1
	Commencement

This TSA shall come into effect on the date of its execution.
		
	6.2
	Term

Subject to Section 6.3 and to earlier termination in accordance with its terms, this TSA shall automatically terminate without the need for further action by either Party on the earlier of: (i) the Service Schedule Expiry Date; and (ii) the Scheduled TSA End Date (both being subject to an extension pursuant to Section 6.3). 
		
	6.3
	Extension to the Term

If the Recipient wishes for the Service to continue beyond the Service Schedule Expiry Date and/or Scheduled TSA End Date then the Recipient must give notice to the Provider specifying the 

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period for which the Recipient wishes to continue to receive the Service, provided however, that such extension shall not extend beyond December 31, 2016.  Upon such notice the Term shall be extended up to the relevant date.
		
	6.4
	Termination on Notice

		
	6.4.1
	Notwithstanding any other provision of this TSA, the Recipient may terminate any of the Services, or any separable part of the Services, by providing the Provider with at least six months’ prior mailed notice of such termination.

		
	6.4.2
	The Recipient is not responsible or liable for any Provider costs incurred as a result of an early termination notice made in compliance herewith, provided, however, that a Recipient shall reimburse the Provider for any costs incurred by the Provider as a result of a Service being terminated early by the Recipient where such Service is provided pursuant to a Third Party Agreement which was renewed, extended or replaced after the date hereof.

		
	6.5
	Termination for Insolvency

Each Party may terminate this TSA immediately by written notice to the other Party if the other Party becomes unable to pay its debts, enters into liquidation, a receiver or administrative receiver is appointed over all or any of its assets, it ceases trading or is dissolved, or any procedure equivalent to any of the preceding matters occurs in any other jurisdiction with respect to that other Party.
		
	6.6
	Termination for Regulatory Reasons

		
	6.6.1
	Each Party shall have a right to terminate this TSA if directed in writing by a Competent Authority. A Party may exercise such right upon 90 days’ prior notice, or such shorter timeframe as required by a Competent Authority or to comply with Regulation.

		
	6.6.2
	In the event of a termination of this TSA pursuant to this Section 6.6, the Parties acknowledge and agree that Migration of the Services may not be fully implemented as of such termination and, to the extent required by a Competent Authority,  neither Party will have any obligation to assist in the Migration of the Services after such termination.

		
	6.7
	Termination for Breach

		
	6.7.1
	Subject to Section 6.7.2, each Party (the “Non-Defaulting Party”) may terminate a Service immediately by written notice to the other Party (the “Defaulting Party”) if the Defaulting Party commits a material breach of its obligations with respect to that Service under this TSA and the Service Schedule and (where the breach is capable of being remedied) that breach has not been remedied within 30 days after receipt of a written request to do so from the Non-Defaulting Party.

		
	6.7.2
	In the event that a Party elects to terminate a Service pursuant to Section 6.7.1, the TSA shall be deemed to continue in full force and effect in accordance with its terms, except with respect to such terminated Service.

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	6.7.3
	Unless otherwise specified, any breach in respect of the Service Schedule shall not constitute a breach of this TSA, and unless otherwise agreed in writing, the Parties will continue to provide Services and honor all other commitments under this TSA during the course of dispute resolution pursuant to Section 11, except to the extent such commitments are the subject of such dispute, controversy or claim.

		
	6.8
	Delivery of Data on Termination or Expiry

		
	6.8.1
	Except if and to the extent otherwise agreed in the Service Schedule and subject always to Regulation, in the event of the termination or expiry of a Service pursuant to this TSA:

		
	(i)
	to the extent that:

		
	(a)
	any Recipient Data is in the possession or reasonable control of the Provider or its Affiliates, the Provider shall provide to the Recipient such Recipient Data in its then-current format; and

		
	(b)
	any Provider Data is in the possession or reasonable control of the Recipient or its Affiliates, the Recipient shall provide to the Provider such Provider Data in its then-current format; 

		
	(ii)
	once the Provider has provided the Recipient Data in accordance with Section 6.8.1.(i)(a), the Provider will (to the extent reasonably practicable) delete or destroy its copy or copies of such data, unless required to maintain a copy by Regulation or the requirements of any Competent Authority or to the extent such Recipient Data also relates to the Provider’s Group’s business; and 

		
	(iii)
	once the Recipient has provided the Provider Data in accordance with Section 6.8.1.(i)(b) the Recipient will (to the extent reasonably practicable) delete or destroy its copy or copies of such data, unless required to maintain a copy by Regulation or the requirements of any Competent Authority or to the extent such Provider Data also relates to the Recipient’s Group’s business. 

		
	6.8.2
	Unless otherwise agreed by the Parties, the Provider shall charge Recipient in respect of the costs incurred by the Provider in respect of complying with its obligations under this Section 6.8.

		
	6.8.3
	Any Recipient Data retained by Provider and any Provider Data retained by Recipient pursuant to Section 6.8.1 shall be subject to the Data Protection requirements set forth in Section 13 and the Confidentiality requirements set forth in Section 13 for as long as such data is retained.

		
	6.9
	Survival of Rights on Termination or Expiry 

Termination or expiry of this TSA shall not affect any rights or obligations which may have accrued prior to termination or expiry. The obligations of each Party set out in any Section intended to 

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survive such termination or expiry, including this Section 6.9 and Section 4, Section 8, Section 12, Section 13, Section 16, Section 17 and  Section 20 shall continue in full force and effect notwithstanding termination or expiry of this TSA. 
		
	7
	Migration

		
	7.1
	Migration 

No later than the third month of the six month notice period specified in Section 6.4, the     Provider will:
		
	7.1.1
	submit a plan reasonably acceptable to the Recipient, specifying how the Provider will assist in the orderly handover of the terminated Services;

		
	7.1.2
	regularly update the plan to ensure that it reflects changes in the Services or terminated Services, and the methods of delivering the terminated Services; and

		
	7.1.3
	revise the plan from time to time in accordance with Recipient's reasonable directions.

		
	7.2
	Migration Plan

The Provider will as soon as reasonably practicable:

		
	7.2.1
	implement the plan referred to in Section 7.1; and

		
	7.2.2
	provide the Recipient with all information, documentation, Recipient software, Recipient Data, Recipient equipment and hardware and any work or records which are material to Recipient’s business. The Provider will also provide all other assistance reasonably required by the Recipient.

		
	7.3
	Migration Costs

The Recipient shall be responsible for any costs incurred by the Provider in relation to the migration services described in Sections 7.1 and 7.2.
		
	8
	Limitation of Liability and Indemnification

		
	8.1
	Exclusions from Liability

Notwithstanding anything herein to the contrary, no Party shall be liable for any special, indirect, incidental, consequential or punitive damages of any kind whatsoever in any way due to, resulting from or arising in connection with any of the Services or the performance of or failure to perform Provider’s or Recipient’s obligations under this TSA, as applicable, including to the extent that such liability is: 
		
	(i)
	for or in respect of any loss of profit, loss of revenue, loss of goodwill or indirect or consequential losses, punitive, special or consequential damages; or 

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	(ii)
	for the value of any lost or corrupted data; or 

		
	(iii)
	for the costs of reconstituting, restoring or rectifying lost or corrupted data (in each case, other than to the extent arising from a breach of Section 19.1), 

in each case of whatever nature regardless of whether such damages are foreseeable or whether the Provider or Recipient, as applicable, or any of its Affiliates has been advised of the possibility of such damages.
		
	8.2
	Cap on Damages and Exclusions

		
	8.2.1
	Except in the case of death or personal injury, fraud or fraudulent misrepresentation, or Charges that have come due in connection with the Services, the Provider’s  and the Recipient’s aggregate liability to the other in respect of the Service shall be limited to an amount equal to 12 x the Monthly Charge for such Service, where “Monthly Charge” means the amount of Charges paid for the first full calendar month (which shall include any amounts invoiced directly to the Recipient by a Third Party Supplier in that month) of the relevant Service giving rise to the claim. 

		
	8.2.2
	Except in the case of death or personal injury, fraud or fraudulent misrepresentation, or Charges that have been paid or come due in connection with the Services, each Party’s total aggregate liability to the other in connection with this TSA shall be limited to an amount equal to the total Charges for the Services paid and payable to Provider pursuant to this TSA during the 12 months prior to the first date an event giving rise to the liability occurred.

		
	8.2.3
	The limits on, and exclusions of, liability set out in this Section 8 shall not apply in respect of:

		
	(i)
	any liability for death or personal injury; 

		
	(ii)
	any liability for fraud or fraudulent misrepresentation;

		
	(iii)
	any other liability that cannot be lawfully excluded; and

		
	(iv)
	the obligation of Recipient to pay Charges with respect to Services that have been provided.

		
	8.3
	Indemnification

		
	8.3.1
	Subject to the exclusions from liability in Section 8.1, the Provider and the Recipient agree to indemnify and hold harmless each other, and each of their directors, officers, employees and agents, and each of the heirs, executors, successors and assigns of any of the foregoing (collectively the “Indemnitees”), from and against any and all losses of the Indemnitees relating to, arising out of or resulting from any breach by a Party, of this TSA or  the Service Schedule, to the extent caused by, resulting from or arising out of or in connection with the other Party’s infringement, misappropriation or violation of Intellectual Property Rights of a third party in connection with the provision or receipt of Services under this TSA;

21
    

provided that.
		
	(i)
	the aggregate liability pursuant to this Section 8.3 shall not exceed the cap on damages in Section 8.2 (subject to the exclusions from the cap set forth therein); and

		
	(ii)
	the Provider shall have no liability under this Section 8.3 with respect to any infringement, misappropriation or violation of Intellectual Property Rights of a third party to the extent that such claim is based upon or related to:

		
	(a)
	Services that have been modified by the Recipient;

		
	(b)
	use of the Services in conjunction or combination with any software, data or other materials not provided by the Provider of the Services; or

		
	(c)
	use of the Services in a manner or for any purpose other than as directed by the Provider or as expressly permitted by this TSA.

		
	9
	Governance

		
	9.1
	Each party will appoint representatives with suitable qualifications, experience and authority to participate in the meetings and committees, and otherwise fulfil their respective functions. 

		
	9.2
	The Provider and the Recipient will each manage and supervise the relationship set out in this TSA, through a body containing representatives of both the Provider and the Recipient as constituted from time to time.  

		
	10
	Changes and Change Control

		
	10.1
	Changes

		
	10.1.1
	Subject to Sections 10.2 to 10.4 (inclusive), in the event that a Party wishes to make any Change it shall be managed by way of the “Change Control Procedure” as set forth in this Section 10.1.1. 

		
	(i)
	Upon realization of the need for a Change, either Party shall provide prompt notice to the other Party of a Change request (“Change Control Request”) in writing specifying in as much detail as is reasonably practicable the nature of the proposed Change. Within four weeks of receipt of a Change Control Request, the Party that received such notice shall provide a response indicating whether it can make the proposed Change, its estimated costs of making the proposed Change and an estimated schedule for implementing the proposed Change.

		
	(ii)
	The timing of implementation of any Change will be determined by the Parties.

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	10.2
	Mandatory Change

		
	10.2.1
	Where a Change Control Request is in respect of a Mandatory Change, the Parties shall, as soon as reasonably practicable thereafter, meet to discuss and agree the terms on which, and the time frame in which, each Party shall implement that Mandatory Change (which shall be within the time frame required to comply with the relevant Regulation, except where it would not be reasonable for each Party to implement such Mandatory Change within such time frame, in which case each Party shall implement such Mandatory Change as soon as reasonably practicable thereafter). The Parties shall work together in good faith to mitigate the consequences of any delay in implementing the Mandatory Change beyond the date required to comply with the Regulation.

		
	10.2.2
	To the extent that a Mandatory Change requested by a Party increases the cost to the Provider  (including, for the avoidance of doubt, the costs and appropriate margin of implementing the Mandatory Change and incremental running costs and appropriate margin incurred by the Provider arising as a result of that Mandatory Change), then the increased cost and margin to the Provider will be added to the Charges paid by the Recipient for the relevant Service.

		
	10.3
	Discretionary Changes

		
	10.3.1
	Where a Change Control Request submitted by a Party is in respect of a Discretionary Change, the Parties shall, as soon as reasonably practicable thereafter, meet to discuss the terms of the Discretionary Change, including the payment of costs incurred by the Provider associated with the proposed Discretionary Change. For the avoidance of doubt, the Party being requested to implement a Discretionary Change may refuse to implement any Discretionary Change.

		
	10.4
	Emergency Change

		
	10.4.1
	If a Change is required to respond to an Emergency, the affected Party shall use commercially reasonable efforts to notify the other Party and obtain the other Party’s prior consent for the Change but, if the notifying party is the Provider and the Provider is not able to notify the Recipient and obtain consent, the Provider shall be entitled, without limiting any rights and remedies of the Recipient in respect of any breach of this TSA (as if such Change had not been made), to nevertheless make the minimum necessary temporary Change as necessary to respond to the Emergency in accordance with the terms of any applicable disaster recovery plans. As soon as practicable following the implementation of any temporary Change, the Provider shall notify the Recipient of the temporary Change and the nature of the Emergency and shall then retroactively comply with the terms of the Change Control Procedure.

		
	10.4.2
	“Emergency” means a Change that is required to ensure: (i) continued provision of, or the continued operation and integrity of the Services; or (ii) the continued operation and integrity of the Provider Systems, in each case the implementation of which cannot wait (including for reasons of stability and performance) for authorization through the Change Control Procedure.

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	11
	Dispute Resolution

		
	11.1
	Dispute Resolution Process

		
	11.1.1
	The Parties shall in the first instance attempt to resolve any dispute in relation to any aspect of, or failure to agree any matter arising in relation to, this TSA or any document agreed or contemplated as being agreed pursuant to this TSA (a “Dispute”) informally through discussion as follows: 

		
	(i)
	the representatives will discuss to resolve the Dispute, and if the representatives cannot resolve the Dispute within 10 Business Days of the Dispute being referred to them, then;

		
	(ii)
	the Dispute shall promptly be referred by the representatives to a nominated senior individual of each Party (the “Senior Nominees”), and if the Senior Nominees cannot resolve the Dispute within 10 Business Days of the Dispute being referred to them (unless a longer period is mutually agreed), then;

		
	(iii)
	the dispute resolution process shall be deemed to have been exhausted in respect of the Dispute, and each Party shall be free to pursue its rights at law in respect of such Dispute without further reference to the dispute procedure under this Section 11.1. 

This Section 11.1 does not limit the right of either Party to: (i) exercise any self-help remedies provided for herein; or (ii) file an action in a court of law, before, during, or after the dispute resolution process to obtain a provisional or interim remedy, and/or any ancillary, additional or supplementary remedy, provided that any such action shall be heard and determined exclusively in any court of competent jurisdiction sitting in England.
		
	11.1.2
	The Parties will discuss in good faith, at either Party’s request, measures to shorten the time contemplated by this Section 11 to complete the Dispute resolution process.

		
	12
	Intellectual Property Rights 

		
	12.1
	Ownership

		
	12.1.1
	The Provider and the Recipient (or their respective licensors) will retain all right, title and interest in or to their respective Intellectual Property Rights.

		
	12.2
	License

		
	12.2.1
	Each party grants the other party a royalty-free, non-transferable, non-exclusive licence to use the Intellectual Property Rights solely for the purpose of providing or receiving the Services.

		
	12.2.2
	Both parties undertake to:

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	(i)
	comply with the other party’s reasonable directions (whether oral or written) relating to the manner of the use of the other Party’s Intellectual Property Rights; 

		
	(ii)
	only modify the other party’s Intellectual Property Rights with the prior written consent of that other party and then only in the manner and to the extent authorised by that other Party; and

		
	(iii)
	treat all information relating to the other Party's Intellectual Property Rights as confidential in accordance with the terms of Section 13.

		
	12.2.3
	Neither Party shall:

		
	(i)
	sub-license, assign, transfer, charge or otherwise deal in or encumber the other Party’s Intellectual Property Rights or use the other Party’s Intellectual Property Rights on behalf of a third party; or

		
	(ii)
	remove or alter any copyright or proprietary notice on any materials in which the other Party’s Intellectual Property Rights are embodied. 

		
	13
	Data Protection, Confidential Information and Record-keeping

		
	13.1
	Data Protection

		
	13.1.1
	Each Party acknowledges and agrees that, solely to permit it to perform its obligations pursuant to this TSA and the Service Schedule, the other Party may provide it with Confidential Information, including Personal Data. Each Party further acknowledges and agrees that it shall have the right to use the other Party’s Confidential Information, including Personal Data, solely to fulfill and perform its obligations under this TSA and otherwise comply with Regulations that apply to that Party. Regulation in respect of Personal Data may include U.S. federal data privacy laws and regulations such as the GLB Act, the Federal “Privacy of Consumer Financial Information” Regulation (12 CFR Part 30), as amended from time to time, issued pursuant to Section 504 of the GLB Act, and the Health and Insurance Portability and Accountability Act of 1996 (42 U.S.C. § 1320d), U.S. state data privacy laws such as the Massachusetts Data Protection Act (201 CMR 17) and, if applicable, international data privacy laws such as The Data Protection Act 1998 and Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and the free movement of such data. To the extent that the Recipient requires the Provider to comply with any Regulation in respect of Personal Data which does not apply to the Provider at law, then the Recipient shall (i) instruct the Provider of the same under Clause 13.1.2(i) and (ii) provide all reasonable assistance and information to the Provider in order to allow the Provider to comply with the same. Each Party may provide guidelines to help the other Party comply with such Regulation, but each Party using its own legal advisors will remain fully responsible, subject to the Change Control Procedure in respect of any change in Regulation after the date hereof, for interpreting and complying with such Regulation with 

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respect to its own business. A Party shall have no right to use, reuse or disclose any Personal Data to any person or entity for any reason not specifically permitted under this TSA or the Service Schedule.
		
	13.1.2
	Each Party confirms that, when it is processing data, it shall:

		
	(i)
	only process Personal Data in accordance with the other Party’s instructions; and

		
	(ii)
	take appropriate technical and organizational measures to protect Personal Data against accidental or unlawful destruction or accidental loss, alteration, unauthorized disclosure or access and against all other unlawful forms of processing. 

		
	13.1.3
	The Parties shall respectively comply with all Regulation, subject to the Change Control Procedure in respect of any change in Regulation after the date hereof, in respect of Confidential Information, including Personal Data, including securing such consents, registrations and notifications as may be required to enable the Provider and any Third Party Suppliers to provide the Services and to enable the Recipient to receive the Services.

		
	13.2
	Confidential Information

		
	13.2.1
	The Parties hereby covenant and agree to keep confidential all Confidential Information relating to the other Party. Without limiting the generality of the foregoing, each Party shall cause its employees and agents to exercise the same level of care with respect to Confidential Information relating to the other Party as it would with respect to proprietary information, materials and processes relating to itself. “Confidential Information” shall mean all information, materials and processes relating to a Party, its Affiliates,  its employees, third party vendors, counterparties or customers obtained by the other Party at any time (whether prior to or after the date hereof) in any format whatsoever (whether orally, visually, in writing, electronically or in any other form) arising out of the rendering or receipt of Services hereunder (or preparations for the same or for the termination thereof) and shall include, but not be limited to, economic and business information or data, business plans, software and information relating to personnel, products, financial performance and projections, processes, strategies and systems but shall not include information which: 

		
	(i)
	was already in possession of the other Party prior to the date hereof and for which no confidentiality obligation or other restriction on use previously existed;

		
	(ii)
	is or becomes generally available to the public other than by release in violation of the provisions of this Section 13; 

		
	(iii)
	is or becomes available on a non-confidential basis to a Party from a source other than the other Party to this TSA, provided that the Party in question reasonably believes that such source is not or was not bound by an obligation to the other Party to hold such information confidential; and

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	(iv)
	is acquired or developed independently by a Party without use or reference to otherwise Confidential Information of the other Party.  

Except with the prior written consent of the other Party, each Party will use the other Party’s Confidential Information only in connection with the performance of its obligations hereunder and each Party shall use commercially reasonable efforts to restrict access to the other Party’s Confidential Information to those employees of such Party requiring access for the purpose of providing or receiving Services hereunder.
		
	13.2.2
	The provisions of Section 13.2.1 shall not prohibit a Party’s disclosure or use of the other Party’s Confidential Information if and to the extent such Confidential Information is made available to or used by the professional advisers or Third Party Suppliers of each Party for the provision or receipt of the Services, provided, however that in each case such professional advisors or Third Party Suppliers are subject to written confidentiality obligations in a form approved by the other Party (such approval not to be unreasonably withheld or delayed).

		
	13.2.3
	Each Party shall notify the other Party immediately of any suspected or known fraud relevant to its activities under this TSA or the Service Schedule, or of any unauthorized access, possession, use, or knowledge, or attempt thereof, of the other party's Confidential Information, or of the occurrence of any other incident relating to the Services that could cause financial, customer or reputational loss to another Party, and agrees to cooperate with the other Party to investigate the occurrence and mitigate the impact of such an event. Each Party shall promptly provide the other Party with full details of any such event and use all available efforts to prevent a recurrence of any such event.

		
	13.2.4
	Notwithstanding any provision of this Section 13 to the contrary, a receiving Party may disclose such portion of the Confidential Information relating to the disclosing Party to the extent, but only to the extent, the receiving Party reasonably believes that such disclosure is required Regulation or the rules of a Competent Authority or under a subpoena or other legal process; provided that if practicable and permissible under Regulation, or rules, the receiving Party shall first notify the disclosing Party of such requirement and allow such Party a reasonable opportunity to seek a protective order or other appropriate remedy to prevent such disclosure and cooperate with the disclosing Party in any lawful effort by the disclosing Party to contest the legal validity of such requirement and prevent such disclosure.

		
	13.2.5
	The Parties agree that monetary damages will not be an adequate remedy if this Section 13 regarding Data Protection and Confidential Information is breached and therefore, a disclosing Party shall, in addition to any other legal or equitable remedies, be entitled to seek injunctive relief against any breach or threatened breach of this Section 13 by the receiving Party with respect to the disclosing Party’s Confidential Information.

		
	13.3
	Record-keeping 

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	13.3.1
	The Provider will at all times operate a consistent and generally accepted system of accounting in relation to, and maintain complete and accurate records of, and adequate supporting documents for the Service Records.

		
	13.3.2
	The Provider will maintain the Service Records:

		
	(i)
	in a manner and to a level of detail sufficient to justify the calculation of the Charges and to satisfy the requirements of the Regulation; and

		
	(ii)
	for the period required by the Regulation, and for a minimum of seven years after the Service Records are created. 

		
	14
	Force Majeure 

		
	14.1
	Force Majeure Events

For purposes of this TSA, “Force Majeure” means an event beyond the reasonable control of either Party, which by its nature was not foreseen by such Party, or, if it was foreseen, was not reasonably avoidable, and includes without limitation, acts of God, storms, floods, riots, fires, sabotage, civil commotion or civil unrest, interference by civil or military authorities, threat, declaration, continuation, escalation or acts of war (declared or undeclared) or acts of terrorism, any unauthorized, unlawful access by a third party to either Party’s computing systems other than as a result of such Party’s, failure or shortage of energy sources, strike, walkout, lockout or other labor trouble or shortage, delays by unaffiliated suppliers, and acts, omissions or delays in acting by any Competent Authority.
		
	14.2
	No Liability for Force Majeure

Without limiting the generality of Section 8.3, neither Party shall be under any liability for failure to fulfill any obligation under this TSA or the Service Schedule, so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered, or delayed as a consequence of circumstances of Force Majeure; provided that (i) such Party shall have used commercially reasonable efforts to minimize to the extent practicable the effect of Force Majeure on its obligations hereunder and (ii) nothing in this Section 14.2 shall be construed to require the settlement of any strike, walkout, lockout or other labor dispute on terms which, in the reasonable judgment of the affected Party, are contrary to its interests. It is understood that the settlement of a strike, walkout, lockout or other labor dispute will be entirely within the discretion of the affected Party. The Party affected by the Force Majeure event shall notify the other Party of that fact as soon as practicable.  
		
	14.3
	Delay Owing to Force Majeure

In the event of any such delay as a consequence of circumstances of Force Majeure, the Recipient of any affected Service may elect to either:
		
	(i)
	submit a Change Control Request to extend the time for performance of the affected Service for a period equal to the time lost by reason of the delay, provided 

28
    

however, that such extension shall not extend beyond the Scheduled TSA End Date; or
		
	(ii) 
	terminate this TSA in relation to those Services which are affected by the             Force Majeure event.

		
	15
	Employee Provisions

		
	15.1
	No Obligation to Transfer Employees

		
	15.1.1
	The Parties acknowledge and agree that the Acquired Rights Directive (Council Directive 77/187/EEC as amended by Council Directive 98/50 EEC and consolidated in Council Directive 2001/23/EEC) as amended (“ARD”) or any enactment of the ARD in any national law or any analogous national law will not apply on the commencement of the Services.

		
	15.1.2
	The Parties believe that on the cessation or partial cessation of the Services or any part of the Services on the termination, expiry or variation of this TSA, no transfer of the contracts of employment between a Provider or any Third Party Supplier (or any subcontractor thereof) and any of its/their employees to the Recipient or Successor Provider shall take place by reason of the ARD or any enactment of the ARD in any national law or any analogous national law.

		
	15.1.3
	Without prejudice to Section 15.1.1, if requested to do so by the Recipient at any time before the termination, expiry or variation of the Services, the Provider will (or will procure that) all persons working on the Services (“Staff”), whether employed/engaged by the Provider, by any Third Party Supplier or any subcontractor thereof, will be redeployed or otherwise removed from the Services before the cessation of those Services so that those Staff cease to be engaged within the Services and are not affected by any transfer pursuant to the ARD or any enactment of the ARD in any national law or any analogous national law that may otherwise occur on the cessation of those Services.

		
	15.2
	Pre-employment Screening

		
	15.2.1
	Subject to Regulation, the Provider shall require any individual it employs or engages in connection with the performance of its obligations under this TSA to have satisfied the screening procedures set out in the RBSG Policy for India, prior to such individual performing any Services hereunder:

		
	15.2.2
	In the event that: 

		
	(i)
	the Provider is unable to comply fully with the pre-employment requirements above with respect to an individual;

		
	(ii)
	any pre-engagement screening activity returns information that otherwise indicates in the Provider's reasonable judgment that such individual should not be engaged to provide Services under this TSA, 

29
    

then the Provider shall not engage the individual in relation to this TSA or the Service Schedule.
		
	16
	Communications with Competent Authorities

If either Party receives any material correspondence from any Competent Authority that relates to the Services, it will provide a copy of that correspondence to the other Party unless it is prevented from doing so by Regulation or such Competent Authority. The Parties shall consult with each other over such correspondence and shall only respond to the Competent Authority if:
		
	16.1.1
	the terms of the response have been approved by the other Party (such consent not to be unreasonably withheld or delayed); or

		
	16.1.2
	Regulation requires a response to the Competent Authority without the other Party’s consent.

		
	17
	Audit

		
	17.1
	Regulatory Audit Rights

		
	17.1.1
	The Provider shall (and shall use all commercially reasonable efforts to ensure its Third Party Suppliers providing material Services or a material element of the Services shall) promptly permit: 

		
	(i)
	the Recipient or its auditors (to the extent the Recipient and its auditors are directed by a Competent Authority); and 

		
	(ii)
	any Competent Authority (or its designated representatives), 

access to the Provider’s and Third Party Suppliers facilities and premises, equipment, books and records (electronic or otherwise), operational systems, employees, contractors, and subcontractors to the extent required by the Competent Authority to perform an audit.
		
	17.1.2
	Subject to any restriction under Regulation or the direction of any Competent Authority, the Provider shall ensure it is (and shall use all commercially reasonable efforts to ensure its Third Party Suppliers providing material Services or a material element of the Services are) open and cooperative with the Recipient and its auditors and any Competent Authority (and its designated representatives) in performing its obligations under this Section 17.1 and shall provide such information, assistance, records and materials, access to persons engaged in the provision of the Services and explanations as required by the Recipient or its auditors (to the extent the Recipient and its auditors are directed by a Competent Authority) or the Competent Authority (including attending any meetings requested by the Recipient and/or the Competent Authority (or its designated representatives) and providing copies of any internal audit reports which are relevant to the Services). The Recipient shall provide as much notice of the audit as is reasonably practicable. Unless otherwise agreed 

30
    

by the Parties, the Provider shall charge Recipient in respect of the costs incurred by the Provider in respect of such audits.
		
	17.1.3
	If and to the extent the Provider does not have the rights under its relevant Third Party Agreement to ensure its Third Party Supplier grants the rights described in Sections 17.1.1 and 17.1.2, any costs in procuring such rights shall be borne by the Recipient, provided that such costs were approved by the Recipient in writing before they were incurred. If the Recipient declines, or otherwise fails, to approve such costs, the Provider shall not be required to obtain the grant of the relevant rights by that Third Party Supplier. 

		
	17.2
	General Audit Rights

		
	17.2.1
	With respect to the Service Schedule:

		
	(i)
	The Provider shall, from time to time, but in any event no more than twice in any 12-month period (subject to the exception in Section 17.2.1(ii)), during regular business hours and upon reasonable notice, permit the Recipient or its representatives to perform audits of the Provider’s (and to the extent commercially reasonable, its Third Party Suppliers’) facilities, equipment, books and records (electronic or otherwise), operational systems, employees, contractors, subcontractors, and such other audits as may be necessary to ensure the Provider’s and its Third Party Suppliers’ compliance with the terms and conditions of this TSA and the Service Schedule, as well as Regulation and to ensure the Provider’s financial and operational viability, including but not limited to the Provider’s internal controls, pre-engagement employee screening, information and other security, business resumption, continuity, recovery, Service Level compliance, and contingency plans.

		
	(ii)
	If an audit conducted pursuant to Section 17.2.1 (i) reveals any non-compliance or other deficiencies relating to risks to the Provider’s systems and facilities which could result in the unauthorized destruction, loss, alteration, disclosure of or access to the Recipient’s Confidential Information, then a senior technology executive of the Provider shall promptly meet with a representative of the Recipient to discuss the matter, and the Provider shall promptly take action to remedy the non-compliance or deficiencies and/or resolve the matters addressed by the qualification(s) so that any deficiencies that caused the qualified opinion to be issued are remedied to the Recipient’s reasonable satisfaction (including with respect to the timeline of the remediation).  Notwithstanding the limitation on the number of audits in Section 17.2.1(i), the Provider shall permit the Recipient to perform an audit solely to the extent necessary to confirm that any non-compliance or deficiencies identified in an audit conducted pursuant to Section 17.2.1(i) have been remedied. 

		
	18
	Sanctions

31
    

		
	18.1
	Compliance with Sanctions Laws and Regulations

		
	18.1.1
	The Parties acknowledge that the Parties and their respective Affiliates are subject to the international sanction laws and regulations issued from time to time by HM Treasury, the European Union, the United States of America (including, but not limited to, all applicable regulations of the Office of Foreign Assets Control (“OFAC”), the Bank Secrecy Act and the USA Patriot Act (including such regulations that may require the Provider to implement a “Customer Identification Program” or “Know Your Customer Program” to confirm that no beneficiary or client of the Provider appears on any lists issued by OFAC, including the Specially Designated Nationals list, and determine whether transactions by or with such beneficiary or client may constitute suspicious activity, such as identity theft, fraud, money laundering, terrorist financing or other threats to national security)), and the United Nations.

		
	18.1.2
	Neither Party shall be obliged to make any payment under, or otherwise to implement any part of the Services, if in the reasonable opinion of the relevant Party to do so is illegal or there is involvement by any person (natural, corporate or governmental) listed in the HM Treasury, the European Union, the United States of America, the United Nations or local sanctions lists, or there is any involvement by any person located in, incorporated under the laws of, or owned or controlled by, or acting on behalf or, a person located in or organized under the laws of a country or territory that is the target of comprehensive sanctions.

		
	19
	Information Security

		
	19.1
	Information Security

		
	19.1.1
	A Party may not store, copy, disclose, or use the other Party’s Data for any purpose other than to the extent necessary to provide or receive, as applicable, the Services and to comply with Regulation. 

		
	19.1.2
	Neither Party shall attempt to obtain access to, use or interfere with any information technology systems or data used or processed by the other Party except to the extent required to do so to provide or receive the Services (as applicable), or except to the extent expressly permitted to do so by this TSA.

		
	19.1.3
	Each Party shall maintain reasonable security measures to protect both Parties’ information technology systems, from third parties, and in particular from disruption by any “back door”, “time bomb”, “Trojan Horse”, “worm”, “drop dead device“, “virus” or other software routine intended or designed to (i) permit access or use of information technology systems by a third person other than as authorized by the Recipient or the Provider, or (ii) disable, damage or erase or disrupt or impair the normal operation of the Recipient’s or Provider’s information technology systems.

		
	19.1.4
	Each Party shall use reasonably up-to-date security measures to prevent unauthorized access to and unauthorized use of the information technology systems owned by the other Party (or, with respect to a Recipient, any member of the Recipient’s Group and, with respect to a Provider, any member of the Provider’s Group) and the other Party’s data 

32
    

(including, with respect to a Recipient, the Recipient Data) by third parties (including Third Party Suppliers).
		
	19.1.5
	A Party shall not introduce any Disabling Device into any information technology environment or any system used by the other Party in connection with the Services. Without limiting a Party’s other obligations under this TSA, the Parties agree that, in the event any Disabling Device is found in the systems used to provide the Services, (i) if such Disabling Device originated in any software, deliverable or other resource provided under this TSA or the  Service Schedule, the Party that introduced the Disabling Device shall, without prejudice to any other rights and remedies it may have,  remove such Disabling Device at its sole expense and (ii) in any case (wherever such Disabling Device originated), the Party that introduced the Disabling Device shall exercise commercially reasonable efforts at no additional charge to eliminate, and reduce the effects of, the Disabling Device and, if the Disabling Device causes a loss of operational efficiency or loss of data, to mitigate such losses and restore such data using generally accepted data restoration techniques. 

		
	19.1.6
	In addition to its other obligations set forth in this TSA, 

		
	(i)
	whenever the Provider possesses, stores, processes or has access to the Recipient’s Personal Data, it shall comply with the applicable Fraud Prevention Policy; and 

		
	(ii)
	whenever the Provider  possesses, stores, processes or has access to the Recipient’s Confidential Information (inclusive of Personal Data), it shall comply with the applicable IS Requirements.

If requested, the Provider will explain to the Recipient how it complies with the Fraud Prevention Policy and the IS Requirements, and shall demonstrate its compliance upon request as set forth in Section 17.2.
		
	19.1.7
	Each Party shall make the other aware as soon as reasonably practical of any information security breach which may materially adversely impact the Services or the other Party’s business.

		
	20
	Other Provisions 

		
	20.1
	Whole Agreement

		
	20.1.1
	This TSA constitutes the entire agreement between the Parties with respect to the subject matter hereof at the date hereof and supersedes all prior agreements and understandings, both oral or written, between the Parties in relation to the subject matter hereof.

		
	20.1.2
	In this Section 20.1, “this TSA” includes all documents entered into pursuant to it and/or this TSA. 

		
	20.2
	No Construction Against Drafter

33
    

The Parties acknowledge that this TSA and all the terms and conditions contained herein have been fully reviewed and negotiated by the Parties. Having acknowledged the foregoing, the Parties agree that any principle of construction or rule of law that provides that, in the event of any inconsistency or ambiguity, an agreement shall be construed against the drafter of the agreement shall have no application to the terms and conditions of the TSA.
		
	20.3
	Publicity and Public Announcements

A Party must not make any public announcement relating to this TSA without the prior written approval of the other Party (such approval not to be unreasonably withheld, conditioned or delayed). This shall not affect any announcement required by Regulation, any Competent Authority or the rules of any stock exchange on which the shares of a Party are listed, but the Party with an obligation to make an announcement shall notify the other Party and take into account their reasonable representations so far as is reasonably practicable before complying with such obligation.
		
	20.4
	Further Assurances

Each Party shall, from time to time execute such documents, perform such acts and things as any Party may reasonably require to give full effect to the provisions of this TSA and the transactions contemplated therein.
		
	20.5
	Assignment

		
	20.5.1
	The provisions of this TSA shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns. Subject to Section 20.5.2, no Party may assign, delegate or otherwise transfer any of its rights or obligations under this TSA without the prior written consent of the other Party hereto.

		
	20.5.2
	The Provider may assign or in any way transfer or dispose of all or any of its rights under or derived from this TSA, or any part of them, to an Affiliate of the Provider.

		
	20.6
	Third Party Rights

Except where such rights are expressly granted by this Agreement, a person who is not a party to this TSA shall have no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement. This Clause does not affect any right or remedy of any person which exists or is available otherwise pursuant to that Act.
		
	20.7
	Amendment and Waiver

		
	20.7.1
	Any provision of this TSA (including the Service Schedule hereto) may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each Party to this TSA, or in the case of a waiver, by the Party against whom the waiver is to be effective.

		
	20.7.2
	No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The 

34
    

rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by Regulation. 
		
	20.8
	Notices

		
	20.8.1
	All notices, requests and other communications to any Party hereunder shall be in writing, (electronic mail (“e-mail”) transmission may be used, provided that a receipt of such e-mail is requested and received), and shall be given:

		
	(i)
	if to the Provider to: 

RBS Global Trade Service Centre Private Limited
India Land Tech Park, Tower - A, Plot No.14, 3rd Main Street; Ambattur Industrial Estate, Ambattur, 
Chennai 600058,
India
Attention: Santanu Bhadra, Trade Operations - CIB Customer Service & Operations
Email: santanu.bhadra@rbs.com
		
	(ii)
	if to the Recipient to:

Citizens Bank, N.A.
1 Citizens Drive
East Providence, RI 02915
USA
Attention: Jeff LeBlanc
Head of Consumer Operations, Senior Vice President
Email: Jeff.leblanc@citizensbank.com

Citizens Bank, N.A.
443 Jefferson Blvd
Warwick, RI 02886
USA
Attention: Heather Bentley
Head of Consumer Specialty Operations, Senior Vice President
Email: Heather.j.bentley@citizensbank.com

Citizens Bank, N.A.
100 Sockanosset Cross Rd
Cranston, RI 02920
USA
Attention: Jo Wyper
Head of Commercial Operations, Senior Vice President
Email: Joanne.c.wyper@citizensbank.com

 or such other address or e-mail address as such Party may hereafter specify for the purpose by notice to the other Parties hereto. All such notices, requests and other communications shall be deemed received on the date of receipt by the recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a Business Day in the place of receipt.  Otherwise, any such notice, request or communication shall be 

35
    

deemed not to have been received until the next succeeding Business Day in the place of receipt.
		
	20.9
	Severability

		
	20.9.1
	If any provision of this TSA or the application thereof to any Party or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof or the application of such provision to any of the Parties or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any Party. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties.

		
	20.10
	Counterparts

		
	20.10.1
	This TSA may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Party. Execution of this TSA or any other documents pursuant to this TSA by facsimile or other electronic copy of a signature shall be deemed to be, and shall have the same effect as, executed by an original signature.

		
	20.11
	Independent Contractor

		
	20.11.1
	Nothing in this TSA shall constitute or be deemed to constitute a partnership or joint venture between the Parties hereto or constitute or be deemed to constitute any Party the agent or employee of the other Party for any purpose whatsoever and neither Party shall have authority or power to bind the other or to contract in the name of, or create a liability against, the other in any way or for any purpose. The Parties hereto acknowledge and agree that when acting as a Provider, the other Party is an independent contractor in the performance of each and every part of this TSA and nothing herein shall be construed to be inconsistent with this status. Subject to the terms and conditions of this TSA, the Provider shall have the authority to select the means, methods and manner by which any Service is performed.

		
	20.12
	Governing Law and Submission to Jurisdiction 

20.12.1 This TSA and the relationship between the parties will be governed by, and interpreted in accordance with English law.
20.12.2 Each of the parties agree that the courts of England are to have exclusive jurisdiction relating to court proceedings to settle any dispute (including claims for set‐off and counterclaims) which may arise in connection with the creation, validity, effect, interpretation or performance of, or the legal relationships established by, this TSA or otherwise arising in connection with this TSA and for the purposes irrevocably submit to the jurisdiction of the English courts.
		
	20.13
	Anti-Bribery Provisions

36
    

		
	20.13.1
	Each Party agrees that it shall comply with, and that the Services will be performed in accordance with, the Anti-Corruption Laws, subject to the Change Control Procedure in respect of any change in Anti-Corruption Laws after the date hereof, and that it shall not cause, by act or omission, any other Party to be in breach of any Anti-Corruption Laws.

		
	20.13.2
	Each Party shall have in place and comply with its own anti-bribery and corruption policy to ensure that it complies with the Anti-Corruption Laws (each such policy, an “Anti-Bribery and Corruption Policy”). If requested, a Party shall provide to the other Party a copy of its Anti-Bribery and Corruption Policy and, if required, the providing Party will explain to the receiving Party how the features set out in its Anti-Bribery and Corruption Policy correspond to the receiving Party’s Anti-Bribery and Corruption Policy. Subject to the Change Control Procedure, the providing Party shall promptly implement any amendments to its Anti-Bribery and Corruption Policy which the receiving Party, acting reasonably, considers necessary following its review of the providing Party’s Anti-Bribery and Corruption Policy to ensure that the providing Party complies with the Anti-Corruption Laws.

		
	20.13.3
	Each Party shall review its Anti-Bribery and Corruption Policy on a regular basis and shall promptly implement and notify the other Party of any amendments to its Anti-Bribery and Corruption Policy which it considers necessary for continued compliance with the Anti-Corruption Laws.

		
	20.13.4
	Each Party shall cooperate with the other Party and promptly provide any information or confirmation which the other Party requires from time to time in connection with the obligations set forth in this Section 20.13. Each Party acknowledges that the other Party will place reliance upon the information provided.

		
	20.13.5
	Each Party shall immediately notify the other Party in writing of any suspected or known breach of its Anti-Bribery and Corruption Policy or any of the Anti-Corruption Laws.

		
	20.13.6
	Each Party shall have the right to suspend and/or terminate the Service Schedule for material breach immediately, or on such other time specified by the terminating Party, upon written notice to the Provider under the Service Schedule if: (i) the Provider, or any person employed by it or acting on its behalf (whether with or without the knowledge of such Service Provider) fails to comply with any of the Anti-Corruption Laws or is in material breach of the Provider’s Anti-Bribery and Corruption Policy; or (ii) a Party has a reasonable suspicion that an occurrence as specified in clause (i) of this Section 20.13.6 has occurred.

		
	20.13.7
	Regardless of any other provision in this TSA, no Party shall be obliged to do, nor obliged to omit to do, any act which would, in its reasonable opinion, put it in breach of any Anti-Corruption Laws. 

37
    

IN WITNESS WHEREOF, this TSA has been duly executed.

	
			
	SIGNED for and on behalf of RBS GLOBAL TRADE SERVICE CENTRE PRIVATE LIMITED by:
	

	/s/ Santanu Bhadra

	SIGNED for and on behalf of RBS GLOBAL TRADE SERVICE CENTRE PRIVATE LIMITED by:
	

	/s/ Sriram Kumar Krishnan 

	SIGNED for and on behalf of CITIZENS BANK, N.A. by:
	 
	/s/ Bruce Van Saun

	 
	 
	 

	 
	 
	 

38107ConvertedDeferralPlan (1)

	
	
	CITIZENS FINANCIAL GROUP, INC.

	

CONVERTED EQUITY
2010 DEFERRAL PLAN 

 

Table of Contents
Contents    Page
		
	1
	Meaning of words used    1

		
	2
	Operation of the Plan    6

		
	3
	Grant of Deferred Awards    7

		
	4
	Reduction of Deferred Award    10

		
	5
	Vesting of Deferred Awards    11

		
	6
	Leaving the CFG Group before Vesting    14

		
	7
	Corporate events    17

		
	8
	General Terms    18

		
	Schedule A
	A-1

i

Converted Equity 2010 Deferral Plan
Introduction
Under this Plan, Participants defer all or part of a cash bonus which might otherwise have been paid under any cash bonus plan operated by any Member of the CFG Group, in return for the grant of a Deferred Award under the Plan.
Further, Schedule A, annexed hereto, modifies certain provisions of the Plan with respect to awards granted after March 5, 2014.
		
	1
	Meaning of words used

		
	1.1
	In these Rules:

		
	1.1.1
	“Acquiring Company” means a Person described in rule 1.1.7(i) or rule 1.1.7(iii)(B), or the corporation or entity described in rule 1.1.7(iii)(A), in each case other than any Member of the CFG Group, in connection with a Change of Control;

		
	1.1.2
	“Award Date” means the date on which a Deferred Award is granted under rule 3.2;

		
	1.1.3
	“Bond Awards” means an instrument evidencing an obligation to pay an amount in accordance with its terms, as granted in accordance with rule 3;

		
	1.1.4
	“Bonus” means a bonus which might otherwise become payable under any bonus plan or arrangement operated by any Member of the CFG Group;

		
	1.1.5
	“Cause” means the Participant’s misconduct, capability, or any reason entitling the Participant’s employer to summarily terminate the Employee’s employment;

		
	1.1.6
	“CFG Bonds” means debt issued or to be issued by any Member of the CFG Group;

		
	1.1.7
	“Change of Control” means the occurrence of any one or more of the following events, except as otherwise provided in a Participant’s Deferred Award Certificate: 

		
	(i)
	any Person, other than an employee benefit plan or trust maintained by the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s outstanding securities entitled to vote generally in the election of directors;

		
	(ii)
	at any time during a period of 12 consecutive months, individuals who at the beginning of such period constituted the Company’s board of directors and any new member of the board of directors whose election or nomination for election was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of such period or whose election or nomination for election was so approved, cease for any reason to constitute a majority of members of the board of directors; or

		
	(iii)
	the consummation of (A) a merger or consolidation of the Company with any other corporation or entity, other than a merger or consolidation which would 

1

result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or being converted into voting securities of the surviving entity or, if applicable, the ultimate parent thereof) at least 50% of the combined voting power and total fair market value of the securities of the Company or such surviving entity or parent outstanding immediately after such merger or consolidation, or (B) any sale, lease, exchange or other transfer to any Person of assets of the Company, in one transaction or a series of related transactions, having an aggregate fair market value of more than 50% of the fair market value of the Company and its subsidiaries (the “Company Value”) immediately prior to such transaction(s), but only to the extent that, in connection with such transaction(s) or within a reasonable period thereafter, the Company’s shareholders receive distributions of cash and/or assets having a fair market value that is greater than 50% of the Company Value immediately prior to such transaction(s).
Notwithstanding the foregoing or any provision of any Deferred Award Certificate to the contrary, for any Deferred Award that provides for accelerated distribution on a Change of Control of amounts that constitute “deferred compensation” (as defined in Section 409A of the Code), if the event that constitutes such Change of Control does not also constitute a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the Company’s assets (in either case, as defined in Section 409A of the Code), such amount shall not be distributed on such Change of Control but instead shall vest as of the date of such Change of Control and shall be paid on the scheduled payment date specified in the applicable Deferred Award Certificate, except to the extent that earlier distribution would not result in the Participant who holds such Deferred Award incurring interest or additional tax under Section 409A of the Code.
		
	1.1.8
	“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules, regulations and guidance thereunder.  Any reference to a provision in the Code shall include any successor provision thereto.

		
	1.1.9
	“Committee” means the Compensation and Human Resources Committee of the Company and any individual or group of persons authorized by the Compensation and Human Resources Committee to exercise powers under the Plan;

		
	1.1.10
	“Company” means Citizens Financial Group, Inc. and any and all successor entities;

		
	1.1.11
	“Competitive Activity” means, as determined in the Committee’s sole discretion, engaging in any activity, accepting an offer of employment with, being employed by, participating in or otherwise being interested in any business with a competitor;

		
	1.1.12
	“Conditional Cash” means a conditional right to be paid a cash amount granted in accordance with rule 3;

		
	1.1.13
	“Conditional Securities” means a conditional right to acquire securities other than Shares, granted in accordance with rule 3;

2

		
	1.1.14
	“Conditional Shares” means a conditional right to acquire Shares granted in accordance with rule 3;

		
	1.1.15
	“Conditional CFG Bonds” means a conditional right to acquire CFG Bonds granted in accordance with rule 3;

		
	1.1.16
	“Dealing Restrictions” means restrictions on dealing in Shares, imposed by any applicable law, the principal stock market or exchange on which the Shares are quoted or traded, if any, or otherwise, as varied from time to time;

		
	1.1.17
	“Deferred Award” means Conditional Shares, Forfeitable Shares, Conditional Cash, Bond Awards, Conditional Securities, Phantom Conditional Securities, Phantom Options, Conditional CFG Bonds, or Options;

		
	1.1.18
	“Deferred Award Certificate” means any agreement, contract, deed, certificate or other instrument or document evidencing any Deferred Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant;

		
	1.1.19
	“Detrimental Activity” means, as established to the satisfaction of the Committee, and without the prior written consent of the Company (which consent should not be unreasonably withheld):

		
	(i)
	using or communicating in a manner which is not authorised in writing by any Member of the CFG Group or the RBS Group or required by law, any secret, confidential or proprietary information which is not publicly available concerning any Member of the CFG Group or the RBS Group or their respective clients or customers;

		
	(ii)
	directly or indirectly persuading or attempting to persuade any employee of any Member of the CFG Group or the RBS Group to breach any of the terms of their employment with any Member of the CFG Group or the RBS Group;

		
	(iii)
	at any time on or during the 12 months after the Relevant Date, either on the Participant’s own behalf or for or with any other person, whether directly or indirectly:

		
	(1)
	soliciting or inducing or endeavouring to solicit or induce to cease working for or providing services to any Member of the CFG Group or the RBS Group, any person with whom the Participant has had material dealings during the period of 2 years ending on the Relevant Date, including through any third party including recruitment intermediary, whether or not such person would thereby commit a breach of contract; 

		
	(2)
	employing or otherwise engaging in any competitor any person with whom the Participant has had material dealings during the period of 2 years ending on the Relevant Date and who was during that period an employee of any Member of the CFG Group or the RBS Group;

		
	(3)
	enticing away, interfering with, soliciting or canvassing or endeavouring to entice away, interfere with, solicit or canvas the custom of any 

3

customer or client, or prospective customer or client, of any Member of the CFG Group or the RBS Group with whom the Participant had, at any time in the 2 years before the Relevant Date, business dealings, negotiations or discussions during the course of his duties;
		
	(4)
	having business dealings with any customer or client, or prospective customer or client, of any Member of the CFG Group or the RBS Group, or any business which has had a trading relationship with any Member of the CFG Group or the RBS Group, in relation to which business, by reason of the Participant’s dealings during the period of 2 years ending on the Relevant Date, the Participant is or may be able to influence the trading relationship between that business and any Member of the CFG Group or the RBS Group; 

		
	(5)
	endeavoring to cause any person, firm, company, organization or other entity who or which is an investor with or an exclusive supplier of services to any Member of the CFG Group or the RBS Group, to either cease investing in or doing business with, or materially alter the terms of its investment in or business with, any Member of the CFG Group or the RBS Group, as applicable, in a manner detrimental to that company;

		
	(iv)
	engaging in any behavior which in the reasonable opinion of the Committee is deliberately prejudicial to the good name of any Member of the CFG Group or the RBS Group; or

		
	(v)
	leaving or resigning without notice (or with insufficient notice) without the permission of the person’s employing entity, or engaging in any activity which in the reasonable opinion of the Committee is not consistent with providing an orderly handover of the person’s responsibilities.

		
	1.1.20
	“Disciplinary Action” for the purpose of rule 5.1, means any inquiry or investigation by any Member of the CFG Group into the conduct, capability or performance of a Participant that may potentially lead to disciplinary action being taken against that Participant, and/or any disciplinary procedure (whether in accordance with any relevant contractual obligation, policy or otherwise) that has been commenced by any Member of the CFG Group against a Participant;

		
	1.1.21
	“Employee” means any person who is an employee (whether full-time or part-time), including an executive director, of any Member of the CFG Group or who was an employee at any time from January 1 of the calendar year before the Award Date until the Award Date;

		
	1.1.22
	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules, regulations and guidance thereunder.  Any reference to a provision in the Exchange Act shall include any successor provision thereto;

		
	1.1.23
	“Expiry Date” means the date on which all Bonus Awards and/or Deferred Awards granted or issued under the Plan that are outstanding as of the closing of the Company’s 

4

underwritten initial public offering have been Vested, settled, delivered,  forfeited, terminated, reduced or canceled or that have otherwise lapsed or expired, as applicable; 
		
	1.1.24
	“Forfeitable Shares” means Shares held in the name of or for the benefit of a Participant subject to the Forfeitable Share Agreement and granted in accordance with rule 3;

		
	1.1.25
	“Forfeitable Share Agreement” means the agreement referred to in rule 3.6.2;

		
	1.1.26
	“Member of the CFG Group” means:

		
	(i)
	the Company and its Subsidiaries from time to time; and

		
	(ii)
	any other company which the Committee determines should be treated as a Member of the CFG Group;

		
	1.1.27
	“Option” means a right to acquire Shares or other instruments or securities, granted in accordance with rule 3, and exercisable between Vesting and the Option Expiry Date;

		
	1.1.28
	“Option Expiry Date” in relation to an Option, means the date on which an Option lapses and ceases to be exercisable, being the fifth anniversary of the Award Date, or such other date as may be specified under rule 3; 

		
	1.1.29
	“Participant” means a person who has received a Deferred Award under rule 3 or, following the death of a Participant, his personal representatives;

		
	1.1.30
	“Person” has the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act, and used in Sections 13(d) and 14(d) thereof, including “group” as defined in Section 13(d) thereof; 

		
	1.1.31
	“Phantom Conditional Securities” means a right to be paid a cash amount representing the value of notional Conditional Securities, granted in accordance with rule 3;

		
	1.1.32
	“Phantom Option” means a right to be paid a cash amount representing the value of notional Shares, granted in accordance with rule 3;

		
	1.1.33
	“Plan” means this plan (including Schedule A) known as the “CFG Converted Equity 2010 Deferral Plan”, as amended from time to time;

		
	1.1.34
	“Relevant Date” means the date of termination of employment of the Participant or, if earlier, the date on which the Participant commenced garden leave;

		
	1.1.35
	“RBS Group” means The Royal Bank of Scotland Group plc and its subsidiaries (within the meaning of Section 1159 of the Companies Act 2006), other than any Member of the CFG Group;

		
	1.1.36
	“Retention Period” means a period of time commencing on the date of Vesting and ending on the date specified under rule 3.2.10 in respect of a Deferred Award as described in rule 5.8;

		
	1.1.37
	“Shares” means shares of the Company’s common stock, $0.01 par value per Share;

5

		
	1.1.38
	“Subsidiary” means (i) any entity that, directly or indirectly, is controlled by the Company or (ii) any entity in which the Company, directly or indirectly, has a significant equity interest, in each case as determined by the Committee;

		
	1.1.39
	“Vesting”, “Vest” and “Vested”, in relation to:

		
	(i)
	Conditional Shares, Conditional Securities and Conditional CFG Bonds, means a Participant becoming entitled to have the Shares, other securities or CFG Bonds transferred to him subject to the Plan; 

		
	(ii)
	Forfeitable Shares, means the restrictions in the Forfeitable Share Agreement ceasing to have effect as described in rule 3.6.2(i);

		
	(iii)
	Conditional Cash, Bond Awards and Phantom Conditional Securities, means a Participant becoming entitled to payment of the amount due in accordance with the Plan; and 

		
	(iv)
	an Option and a Phantom Option, means a Participant becoming entitled to exercise the Option or Phantom Option

without prejudice in all cases to the application of any restriction described in rule 5.8 (Retention Period) or any other condition imposed under rule 3.3.
		
	2
	Operation of the Plan

		
	2.1
	Timing of Operation

The Committee may operate the Plan at any time after its adoption and before its termination. Deferred Awards may only be granted within 42 days starting on any of the following:
		
	2.1.1
	the date of shareholder approval;

		
	2.1.2
	the day after the announcement of the Company’s results for any period;

		
	2.1.3
	any day on which the Committee resolves that exceptional circumstances exist which justify the grant of Deferred Awards;

		
	2.1.4
	the day an Employee joins any Member of the CFG Group, where the Deferred Awards are granted as a replacement for an incentive that would otherwise have been provided by the Employee’s previous employer;

		
	2.1.5
	any day on which changes to the legislation or regulations affecting share plans are announced, effected or made; or

		
	2.1.6
	the lifting of Dealing Restrictions which prevented the granting of Deferred Awards during any period specified above.

		
	2.2
	Selection of Participants

In relation to any operation of the Plan the Committee may select any Employee to participate in the Plan. However, a selected Employee who ceases to be an Employee before the Award Date in circumstances described in rule 6.2 will not receive a Deferred Award. 

6

		
	2.3
	No Payment

A Participant is not required to pay for the grant of any Deferred Award.
		
	2.4
	No Grants of New Awards

No new Deferred Awards shall be granted under the Plan following the closing of the Company’s underwritten initial public offering (other than, for the avoidance of doubt, Deferred Awards received upon the conversion of awards granted to Employees of Members of the CFG Group by the RBS Group).
		
	3
	Grant of Deferred Awards

		
	3.1
	Determination of Deferred Awards

The Committee will, as soon as practicable following the end of a financial year in which the Plan is operated, determine, in respect of each selected Employee: 
		
	3.1.1
	the proportion, if any, of the Bonus which will be subject to mandatory deferral under the Deferral Plan in return for the grant of a Deferred Award;

		
	3.1.2
	the form which the Deferred Award will take (Conditional Shares, Forfeitable Shares, Conditional CFG Bonds, Conditional Securities, Conditional Cash, Bond Awards, Phantom Options, Phantom Conditional Securities or an Option); and

		
	3.1.3
	the method of converting the amount of the Bonus into the subject matter of the Deferred Award.

		
	3.2
	Terms of Deferred Awards

Deferred Awards must be granted in the form of a Deferred Award Certificate. The terms of each Deferred Award must be specified in the Deferred Award Certificate and must include:
		
	3.2.1
	the Award Date;

		
	3.2.2
	the form of the Deferred Award;

		
	3.2.3
	the number of Shares, securities or notional securities and/or the amount of Conditional Cash, Bond Awards or CFG Bonds subject to the Deferred Award, in accordance with rule 3.4 or 3.6.1, as appropriate, and the amount of Bonus this represents;

		
	3.2.4
	the date or dates of Vesting for the Deferred Award, or any part of the Deferred Award, which for the avoidance of doubt may, if the Committee so determines, be the same as the Award Date;    

		
	3.2.5
	in the case of an Option or a Phantom Option, the Option Expiry Date;

		
	3.2.6
	where relevant, the currency in which the Deferred Award is made and the basis for determining the rate of exchange to be used in converting the amount of the Deferred Award to that currency;

		
	3.2.7
	the portion of the Deferred Award, if any, to which rule 4 applies;

7

		
	3.2.8
	whether the Participant is entitled to receive a dividend equivalent under rule 5.2.5; 

		
	3.2.9
	whether the Participant is entitled to receive notional interest under rule 5.4 and, if appropriate, the basis for determining the calculation of the notional interest; and

		
	3.2.10
	if a Retention Period applies, the date on which it ends.

		
	3.3
	Other terms of Deferred Awards

When granting Deferred Awards, the Committee may impose conditions. Those conditions must be set out in the Deferred Award Certificate and may be amended or waived by the Committee at any time in its discretion. 
		
	3.4
	Deferred Award Certificate

Each Participant will receive a Deferred Award Certificate setting out the terms of the Deferred Award. This may be the Deferred Award Certificate referred to in rule 3.2 or any other document and it may be sent by e-mail or any other electronic means. 
		
	3.5
	Deferred Awards –  Shares and other securities

		
	3.5.1
	The number of Shares or other securities subject to an award (including an award structured as an Option or a Phantom Option) of Conditional Shares, Conditional Securities or Phantom Conditional Securities, is equal to the amount of Bonus subject to mandatory deferral under rule 3.1.1, on a gross basis before any taxation and social security contributions are withheld under rule 8.3, calculated as determined under rule 3.1.3.

		
	3.5.2
	A Participant shall not be entitled to receive dividends or to have any other rights of a shareholder in respect of Shares or other securities subject to such an award or Option unless and until the Shares or other securities are transferred to the Participant.

		
	3.5.3
	A Participant shall not in any circumstances be entitled to receive dividends or have any rights of a shareholder in respect of securities under an award of Phantom Conditional Securities or a Phantom Option.

		
	3.5.4
	If an award of Conditional Shares, Conditional Securities or Phantom Conditional Securities, or an Option, or a Phantom Option, lapses under the Plan, it cannot Vest and a Participant has no rights in respect of it.

		
	3.6
	Forfeitable Shares

		
	3.6.1
	On or as soon as practicable after the grant of an award of Forfeitable Shares the Committee will procure that the amount of Bonus subject to mandatory deferral under rule 3.1.1, on a net basis after any taxation and social security contributions are withheld under rule 8.3, is applied in the purchase or subscription of Shares at the price determined under rule 3.1.3. The Shares will then be transferred to a nominee to be held for the benefit of the Participant under the terms of the Plan.

		
	3.6.2
	Where the Deferred Award is in the form of Forfeitable Shares, the Participant must: 

8

		
	(i)
	enter into an agreement with the Company, that to the extent the Deferred Award lapses under the Plan, the Shares are forfeited and his interest in the Shares will be immediately transferred, for no consideration or nominal consideration, to any person (which may include the Company, where permitted) specified by the Company;

		
	(ii)
	enter into any elections required by the Committee, including elections under Section 83(b) of the Code, and elections to transfer any liability, or agreements to pay, social security contributions; and

		
	(iii)
	sign any documentation, including a power of attorney or blank stock transfer form, requested by the Committee.

		
	3.6.3
	Except to the extent specified in the Forfeitable Share Agreement a Participant will be entitled to vote, to receive dividends and to have all other rights of a shareholder in respect of Forfeitable Shares until the Award lapses.

		
	3.6.4
	On the lapse of an Award of Forfeitable Shares, a Participant must transfer his interest in the Shares in accordance with the Forfeitable Share Agreement.

		
	3.7
	Deferred Awards - Conditional Bonds etc.

		
	3.7.1
	The number or value of CFG Bonds subject to an award (including an award structured as an Option or a Phantom Option) of Conditional CFG Bonds and the amount payable under an award of Conditional Cash or Bond Awards is determined under rule 3.1.3.

		
	3.7.2
	A Participant shall not be entitled to receive interest or to have any other rights of a bondholder in respect of CFG Bonds subject to an award or Option over Conditional CFG Bonds unless and until the CFG Bonds are transferred to the Participant.

		
	3.7.3
	If an award (including an award structured as an Option or a Phantom Option) of Conditional CFG Bonds, Conditional Cash or Bond Awards lapses under the Plan it cannot Vest and a Participant has no rights in respect of it.

		
	3.8
	Individual limit 

A Deferred Award must not be granted to an Employee if it would, at the proposed Award Date, cause the market value of Shares subject to Deferred Awards that he has been granted in that financial year under the Plan to exceed the value of his Bonus or, where the Deferred Awards are granted as a replacement for an incentive that would otherwise have been provided by the Employee’s previous employer, the value of that incentive.
		
	3.9
	Plan limits

Subject to adjustment as provided in rule 7, the maximum number of Shares available for issuance under the Plan shall not exceed in the aggregate 1,992,319 Shares. Where the right to acquire Shares is released or lapses or is satisfied in cash or CFG Bonds, in whole or in part, the Shares concerned will become available for grant under the Citizens Financial Group, Inc. 2014 Omnibus Incentive Plan, as amended from time to time. 

9

For the purposes of this rule 3.9, if the Committee determines that the number of Shares subject to a Deferred Award will be reduced by a sufficient number of Shares as may be necessary to discharge any liability under rule 8.3.1, the number of Shares committed to be issued under that Deferred Award will be based on the net number of Shares to be transferred on Vesting, calculated by reference to applicable tax rates on the date of the Committee’s determination.
To the extent required by applicable law, Shares transferred from treasury will be counted as part of the ordinary share capital of the Company, and as Shares issued by the Company. 
		
	3.10
	Compliance with Applicable Law and Exchange Listing Rules

No Shares will be issued under the Plan if such issuance would be in violation of any applicable law or any rule of the principal stock market or exchange on which the Shares are quoted or traded, if any.   
		
	4
	Reduction of Deferred Award

		
	4.1
	Review of Deferred Awards

To the extent this rule 4 applies to a Deferred Award, the Committee may review Deferred Awards, or any individual Deferred Award, in the light of the performance of any Member of the CFG Group or the RBS Group and any business area or team, and the conduct, capability or performance of the Participant. The review may take place at any time determined by the Committee. In addition, the Committee may make any determination and take any action under this rule 4 in accordance with applicable law, including Section 10D of the Exchange Act. 
		
	4.2
	Focus of Review

In carrying out a review, the Committee will consider:
		
	4.2.1
	in respect of the financial year in relation to which the Deferred Award was made:

		
	(i)
	whether the results announced for that financial year have subsequently appeared materially inaccurate or misleading;

		
	(ii)
	whether a business unit or profit center in which the Participant worked has subsequently made a loss out of business written in that year or from circumstances that could reasonably have been risk-managed in that year; and/or

		
	(iii)
	any other matter which appears relevant, and

		
	4.2.2
	the conduct, capability or performance of a Participant, and the performance of any team, business area or profit center, if the Committee deems that the circumstances warrant a review.

		
	4.3
	Reduction of Deferred Award

Following a review under rule 4.1, the Committee may make any determination in respect of any part of a Deferred Award that has not Vested, including for example:

10

		
	4.3.1
	reduce the number of Shares or other securities and/or the amount or value of CFG Bonds, Conditional Cash or Bond Awards subject to a Deferred Award;

		
	4.3.2
	determine that  a Deferred Award will not Vest or will only Vest in part; and

		
	4.3.3
	determine that no amount, or a reduced amount, will be paid in respect of any dividend equivalent or notional interest.

		
	5
	Vesting of Deferred Awards

		
	5.1
	Timing of Vesting

Subject to rules 5.5.3, 6.3 and 7 a Deferred Award Vests on the date of Vesting specified at grant, or if on that date a Dealing Restriction applies to a Participant and the Committee so determines, it Vests in respect of that Participant on the first date on which the Dealing Restriction ceases to apply, but in no case will Vesting be delayed later than December 31 of the year in which Vesting would have occurred if not for such Dealing Restriction. However, Vesting is delayed in respect of a Participant’s Deferred Award, or any part of it, if any of the following circumstances apply on the anticipated date of Vesting:
		
	5.1.1
	if the Participant is subject to any Disciplinary Action; 

		
	5.1.2
	if the Participant’s employment has terminated or is about to terminate in circumstances where it is not clear whether the Deferred Award should lapse under rule 6; 

		
	5.1.3
	if a matter which may otherwise involve or affect that Participant has been referred to the Committee for review under rule 4; or

		
	5.1.4
	the Committee considers that it is necessary or appropriate to defer Vesting.

In these cases, Vesting will not occur unless and until the Committee determines that the Deferred Award should Vest. The Committee’s determination must be made before December 1 of the calendar year in which the date originally set for Vesting falls and any Shares or CFG Bonds that the Committee determines will Vest in accordance with this rule 5.1 shall be transferred to the Participant by December 31 of the calendar year in which the date originally set for Vesting falls. Any Deferred Award not transferred to the Participant by December 31 of the calendar year in which the date originally set for Vesting falls shall lapse.
		
	5.2
	Consequences of Vesting

Subject to any condition imposed under rule 3.3, the consequences of Vesting of a Deferred Award are as follows:
		
	5.2.1
	In relation to an award of Conditional Shares, Conditional Securities or Phantom Conditional Securities, as soon as practicable after Vesting (but in no event later than December 31 of the year in which Vesting occurs), the Participant will receive the number of Shares or securities (or value in cash) in respect of which it has Vested, unless the Committee determines that this is reduced by a sufficient number of Shares or securities (or value in cash) as may be necessary to discharge any liability under rule 8.3.1.

11

		
	5.2.2
	In relation to an award of Forfeitable Shares, to the extent it has Vested, the restrictions referred to in rule 3.6.2 and contained in the Forfeitable Shares Agreement between the Participant and the Company will cease to have effect. Any liability to taxation or social security contributions or other applicable taxes in respect of Deferred Awards will be dealt with in accordance with rule 8.3.

		
	5.2.3
	In relation to an award of Conditional CFG Bonds, as soon as practicable after Vesting (but in no event later than December 31 of the year in which Vesting occurs), the Participant will receive the number or value of CFG Bonds in respect of which it has Vested, including in relation to any notional interest under rule 5.4. CFG Bonds may be sold on the Participant’s behalf, either pursuant to rule 8.3 or in other circumstances which the Committee considers appropriate.

		
	5.2.4
	In relation to an award of Conditional Cash, Bond Awards, and Phantom Conditional Securities, the amount of cash payable in accordance with the terms of the award will be paid to the Participant in the next practicable payroll (but in no event later than December 31 of the year in which Vesting occurs), subject to deduction of tax under rule 8.3.

		
	5.2.5
	In relation to an Option or a Phantom Option, the provisions of this rule apply at the time of exercise in the same way as they would apply to an award that is not an Option or a Phantom Option at the time of Vesting.

		
	5.3
	Dividend equivalent

This rule applies if:
		
	5.3.1
	an award of Conditional Shares includes the right to receive an amount (known as a “dividend equivalent”) equal in value to the dividends which were payable on the number of Vested Shares during the period between the Award Date and the Vesting date. The right to a dividend equivalent may be granted under rule 3.2.8 at the time of grant, or by the Committee at any later time in its discretion. The dividend equivalent may be paid in cash or Shares (as determined from time to time by the Committee). Dividend equivalents will be paid to the Participant as soon as practicable after Vesting (but in no event later than December 31 of the year in which Vesting occurs), subject to rule 8.3;

		
	5.3.2
	an award of Conditional Securities includes the right to receive an amount (known as a “dividend equivalent”) equal in value to the dividends or other income payable on the Vested securities during the period between the Award Date and the Vesting date. The right to a dividend equivalent may be granted under rule 3.2.8 at the time of grant, or by the Committee at any later time in its discretion and may relate to all or some only of the Vested securities. Dividend equivalents will be paid to the Participant as soon as practicable after Vesting (but in no event later than December 31 of the year in which Vesting occurs), subject to rule 8.3; and

		
	5.3.3
	an Option over Shares or other securities includes the right to receive an amount (known as a “dividend equivalent”) equal in value to the dividends or other income payable on the Vested Shares or other Vested securities during the period between the Award Date 

12

and the Vesting date. The right to a dividend equivalent may be granted under rule 3.2.8 at the time of grant, or by the Committee at any later time in its discretion and in the case of other securities, may relate to all or some only of the Vested securities. The dividend equivalent may be paid in cash or Shares (as determined from time to time by the Committee). Dividend equivalents will be paid to the Participant as soon as practicable after Vesting (but in no event later than December 31 of the year in which Vesting occurs), subject to rule 8.3.
		
	5.4
	Notional interest

		
	5.4.1
	An award of Conditional CFG Bonds may include the right to receive additional CFG Bonds on Vesting of the Conditional CFG Bonds to which they relate. The value of the additional CFG Bonds will be equal to interest on the value of the CFG Bonds in respect of which the related Conditional CFG Bonds have Vested, calculated at such rate or rates as the Committee may determine from time to time.

		
	5.4.2
	An award of Conditional Cash or Bond Awards may include the right to receive an additional amount on Vesting, equal to interest on the amount payable on Vesting, calculated at such rate or rates as the Committee may determine from time to time.

		
	5.5
	Cash, Share or CFG Bond alternative

On Vesting, the Committee may decide:
		
	5.5.1
	in respect of an award of Conditional Shares, to satisfy the portion which Vests by paying an equivalent amount in cash or by transferring an equivalent value in CFG Bonds (subject to rule 8.3); or

		
	5.5.2
	in respect of an award of Conditional CFG Bonds, to satisfy the portion which Vests by paying an equivalent amount in cash or by issuing or transferring an equivalent value in Shares (subject to rule 8.3); or

		
	5.5.3
	in respect of an Option over Shares or CFG Bonds, to satisfy the exercise by paying an equivalent amount in cash (subject to rule 8.3).

		
	5.6
	No double-dipping

		
	5.6.1
	It is intended that any Deferred Award is in substitution for, and not in addition to, any Bonus for the financial year in respect of which the Deferred Award was made. 

		
	5.6.2
	In the event any Participant files any claim or demand in any court or tribunal of competent jurisdiction for a determination that the Participant was or is entitled, in addition to or in substitution for any Deferred Award, to be paid any Bonus (including, without limitation, a cash bonus) or any amount in lieu of any Bonus in respect of the financial year to which the Deferred Award relates, then to the extent the Deferred Award may not be Vested at the time the claim or demand is filed, the Vesting of that Deferred Award will be delayed, unless and to the extent that the Committee determines otherwise, until the court or tribunal makes its determination, whereupon rule 5.6.3 will apply. 

13

		
	5.6.3
	In the event any court or tribunal of competent jurisdiction determines that the Participant was or is entitled, in addition to or in substitution for any Deferred Award, to be paid any Bonus (including, without limitation, a cash bonus) or any amount in lieu of any Bonus in respect of the financial year to which the Deferred Award relates, then that Deferred Award will, unless and to the extent that the Committee determines otherwise, no longer be capable of Vesting and, to the extent that it has already Vested, it will be forfeited and any amount received by the Participant, whether in cash and/or Shares and/or CFG Bonds (or their value) must be repaid or returned to the Company.

		
	5.6.4
	No Deferred Award that Vests under rule 5.5.3 shall Vest prior to the date originally set for Vesting except to the extent such early Vesting and payment is in accordance with Treasury Regulation Section 1.409A-3(j)(4)(xiv). Any delayed Vesting under rule 5.5.3 shall be only as in accordance with Treasury Regulation Section 1.409A-3(g). 

		
	5.7
	Income tax before Vesting

If a Participant is liable for income tax in relation to a Deferred Award before it Vests, the liability may be discharged by the Participant’s employer (by making a payment to the relevant taxing authorities or to the Participant personally), provided the value of the Deferred Award is reduced by a corresponding amount or, in respect of an award of Forfeitable Shares, Shares to the value of that liability are transferred and/or sold as the Committee may direct.
		
	5.8
	Retention Period

If a Retention Period applies to a Deferred Award, the Participant must not dispose of the Shares or other assets which are acquired on the Vesting of the Deferred Award until the end of the Retention Period, except so far as is necessary to discharge any tax liability arising on the Vesting, in accordance with rule 8.3.
		
	6
	Leaving the CFG Group before Vesting

		
	6.1
	General rule on leaving employment

		
	6.1.1
	If a Participant ceases to be an employee of any Member of the CFG Group, unless otherwise provided in a Participant’s Deferred Award Certificate, a Deferred Award which has not Vested will not lapse but will Vest on the date or dates originally set for Vesting, subject to: 

		
	(i)
	any reduction which may be applied under rule 4;

		
	(ii)
	rule 5.1 (timing of Vesting);

		
	(iii)
	rule 5.5.3 (no double-dipping);

		
	(iv)
	rule 6.2 (termination for Cause);

		
	(v)
	rule 6.3 (death);

		
	(vi)
	rule 6.3.3 (Competitive Activity and Detrimental Activity); 

14

		
	(vii)
	any determination which the Committee may make under rule 7 (corporate events); and

		
	(viii)
	any other conditions or restrictions which the Committee may consider appropriate; however, no conditions or restrictions under this rule 6.1.1 shall affect the timing of Vesting or payment as set forth in the Plan to the extent it would cause the Plan to fail to meet the requirements of Section 409A of the Code.

		
	6.2
	 Termination for Cause 

		
	6.2.1
	If a Participant ceases to be an employee of any Member of the CFG Group due to termination for Cause, or if the Participant resigns in circumstances which would entitle his employer to summarily terminate his employment, unless otherwise provided in the Participant’s Deferred Award Certificate, then subject to rule 6.2.2 his Deferred Award will lapse on the date the Participant ceases to be an employee of any Member of the CFG Group.

		
	6.2.2
	If a Participant receives notice that his employment with any Member of the CFG Group will be terminated for Cause, the Committee may decide that a Deferred Award which has not Vested will lapse on the date on which the Participant receives such notice of termination (whether or not such termination is lawful).

		
	6.2.3
	Any reference in this rule 6.2 to a termination for Cause shall include a termination where either (a) the primary reason or (b) any significant reason for the termination is Cause in the honest and reasonable opinion of the Participant’s employer.

		
	6.3
	Death

If a Participant dies, unless otherwise provided in the Participant’s Deferred Award Certificate, his Deferred Award will not lapse and the consequences will be as set out in rule 6.3.1 or 6.3.2 or 6.3.3 below, as appropriate:
		
	6.3.1
	An award of Conditional Shares, Conditional CFG Bonds, Conditional Securities, or Phantom Conditional Securities will be satisfied by paying a cash amount equivalent to their value on the date of death to the Participant’s personal representatives as soon as practicable after production of a valid grant of probate (or local equivalent subject to the satisfaction of the Committee) (but in no event later than the later of December 31 of the year of the Participant’s death or the 15th day of the third calendar month following the Participant’s death). The date of the Participant’s death will be treated as the Vesting of the award for the purposes of these rules.

		
	6.3.2
	In relation to an award of Forfeitable Shares, the restrictions referred to in rule 3.6.2 and contained in the Forfeitable Shares Agreement between the Participant and the Company will cease to have effect on the date of death. The Shares comprised in the award of Forfeitable Shares will be transferred to the Participant’s personal representatives as soon as practicable after production of a valid grant of probate (or local equivalent subject to the satisfaction of the Committee).

15

		
	6.3.3
	An award structured as an Option or a Phantom Option will become exercisable after production of a valid grant of probate (or local equivalent subject to satisfaction of the Committee), but in no event later than the later of December 31 of the year of the Participant’s death or the 15th day of the third calendar month following the Participant’s death, and may be exercised by the Participant’s personal representatives within three months after becoming exercisable, and will lapse if not exercised within 18 months after the date of death. On exercise, the Option or Phantom Option will be satisfied by paying a cash amount equivalent to the market value of the relevant Shares, CFG Bonds or securities on the date of exercise less the exercise price, if any. The date of the Participant’s death will be treated as the date of Vesting of the award for the purposes of these rules.

		
	6.4
	Competitive Activity and Detrimental Activity

		
	6.4.1
	If a Participant voluntarily ceases to be an employee of any Member of the CFG Group, any portion of his Deferred Award which has not Vested will lapse if he engages in Competitive Activity or Detrimental Activity, except to the extent the Committee may determine otherwise.

		
	6.4.2
	If a Participant ceases to be an employee of any Member of the CFG Group due to redundancy, as determined by the Committee, any portion of his Deferred Award which has not Vested will lapse if he engages in Detrimental Activity, except to the extent the Committee may determine otherwise. 

		
	6.4.3
	If requested, the Participant must certify that he has not engaged in Competitive Activity and/or Detrimental Activity, as appropriate, by the date or dates specified by the Committee. If the Participant does not certify this by the specified date, any portion of his Deferred Award which has not Vested will lapse on that date, except to the extent the Committee may determine otherwise.

		
	6.4.4
	This rule applies to an award structured as an Option or a Phantom Option which has Vested but has not been exercised, in the same way as it applies to a Deferred Award which has not Vested.

		
	6.5
	Meaning of “ceasing to be an employee”

		
	6.5.1
	For the purposes of this rule 6, a Participant will not be treated as ceasing to be an employee of a Member of the CFG Group until he ceases to be an employee of all Members of the CFG Group, or if he recommences employment with any Member of the CFG Group within 7 days of so ceasing. However, the Committee may decide that a Participant’s employment should be treated as ceasing on the date he gives or receives notice of termination of employment, whether or not such termination is lawful. A Participant who takes voluntary unpaid leave from employment with any Member of the CFG Group shall be treated as having ceased employment on the date the leave commences. However, the Committee may decide that a Participant should be treated as having ceased employment on the date notice of intention to take leave is given by the Participant, or on such later date as may be considered appropriate.

16

		
	6.5.2
	For the avoidance of doubt, rule 6.1 and 6.2 do not apply to a Participant whose employment had already terminated before the Award Date. 

		
	7
	Corporate events

		
	7.1
	Rights issues, demergers and other corporate events

		
	7.1.1
	If the Committee becomes aware that the Company is or is expected to be affected by any variation in share capital, demerger, distribution (other than an ordinary dividend), Change of Control, delisting or other transaction which, in the opinion of the Committee could affect the current or future value of Shares or CFG Bonds, Deferred Awards are not affected unless and to the extent that the Committee determines to:

		
	(i)
	cause Deferred Awards to lapse; 

		
	(ii)
	require Deferred Awards to be exchanged under rule 7.3;

		
	(iii)
	adjust the number of Shares comprised in an award of Conditional Shares, and such other terms of the Conditional Shares as appear appropriate, but only in accordance with Treasury Regulations Section 1.409A-1(b)(5)(v)(D); and/or

		
	(iv)
	take any other appropriate action, subject to Section 409A of the Code  (which may include, for the avoidance of doubt, allowing Deferred Awards to be exchanged for new awards on equivalent terms (so far as practicable)).

		
	7.1.2
	Subject to the Forfeitable Share Agreement, a Participant will have the same rights as any other shareholders in respect of Forfeitable Shares where there is a variation or other event of the sort described in rule 7.1.1. Any shares, securities or rights allotted to a Participant as a result of such an event, other than a Change of Control, will be:

		
	(i)
	treated as if they were awarded to the Participant under the Plan in the same way and at the same time as the Forfeitable Shares in respect of which the rights were conferred; and

		
	(ii)
	subject to the rules of the Plan and the terms of the Forfeitable Share Agreement.

		
	7.2
	Committee

If this rule applies on a Change of Control (except in relation to an exchange under rule 7.3), “Committee” means Committee as constituted immediately before the Change of Control, and includes those people who were authorized at that time.
		
	7.3
	Exchange of Deferred Awards

		
	7.3.1
	Where the Committee determines that an award of Conditional Shares or Option to acquire Shares is to be exchanged for a new award, the terms of the new award will:

		
	(i)
	confer a right to acquire shares in the Acquiring Company or another body corporate determined by the Acquiring Company;

17

		
	(ii)
	be subject to terms which are and have a value which is equivalent, as far as practicable, to the existing award of Conditional Shares or Option;

		
	(iii)
	be treated as having been acquired at the same time as the existing award of Conditional Shares or Option and, subject to paragraph (iv) below, Vests in the same manner and at the same time;

		
	(iv)
	be in respect of a number of shares which is equivalent to the number of Shares comprised in the existing award of Conditional Shares or Option which would have Vested under rule 7.1.1(i); and

		
	(v)
	be governed by the Plan as if references to Shares were references to the shares over which the new award is granted and references to the Company were references to the Acquiring Company or another body corporate determined by the Acquiring Company.

		
	7.3.2
	Where the Committee determines that an award of Forfeitable Shares is to be exchanged for a new award, the Participant may be required to exchange some or all of his Forfeitable Shares for other securities or to sell them and use the proceeds to buy other securities on such terms as the Committee may determine and these rules will apply to those other securities as if they were Forfeitable Shares.

		
	7.3.3
	Where rules 7.1.1(ii) and 7.3.1 apply, any exchange of Deferred Awards shall be in accordance with Treasury Regulations Section 1.409A-1(b)(5)(v)(D) to the extent necessary to maintain compliance with Section 409A of the Code.

		
	8
	General Terms

		
	8.1
	Transfer of Deferred Awards

A Participant may not transfer, assign or otherwise dispose of a Deferred Award or any rights in respect of it. This rule 8.1 does not apply to the transmission of a Deferred Award on the death of a Participant to his personal representatives.
		
	8.2
	Company documents 

The Company is not required to send to any Participant holding an award of Conditional Shares or an Option to acquire Shares and/or Conditional CFG Bonds a copy of any documents which the Company is required to send to its shareholders or bondholders.
		
	8.3
	Withholding

		
	8.3.1
	The Company, any employing company, any Member of the CFG Group or trustee of any employee benefit trust, may withhold any amounts or make such arrangements as it considers necessary to meet any liability to taxation or social security contributions or other applicable taxes in respect of Deferred Awards. 

		
	8.3.2
	The Company, any employing company, any Member of the CFG Group or trustee of any employee benefit trust operated by any Member of the CFG Group may withhold or 

18

offset any amounts or make such arrangements as it considers necessary to repay any outstanding liability of any Participant.
		
	8.3.3
	Subject to rule 5.2.1, any arrangements in this rule 8.3 may include the sale or reduction in number of Shares or other securities, or the amount or value of CFG Bonds comprised in a Deferred Award.

		
	8.3.4
	Without limiting the generality of this rule 8.3, to the extent any taxes (e.g., Federal Insurance Contributions Act (FICA) taxes) are due with respect to a Deferred Award in any year(s) prior to the year(s) of Vesting, the Company may, to the extent permitted by applicable law, in its discretion withhold any or all of the amount due in respect of such taxes 8.3.11 from any compensation (including salary; bonus and other incentive awards; or special payments) otherwise payable to the Participant during such year or 8.3.12 by reducing the amount of any deferred award by the amount of any such taxes.

		
	8.4
	Discretionary nature of the Plan

		
	8.4.1
	Nothing in this Plan or the operation of the Plan will form part of the contract of employment or other relationship with any Member of the CFG Group of any Employee, Participant or any other person. The fact that one or more Deferred Awards have been made to an Employee does not create any right to, or expectation of, continued employment.

		
	8.4.2
	No Employee is entitled to participate in, or be considered for participation in, the Plan at all or at a particular level. Participation in the Plan does not imply any right to participate, or to be considered for any future participation. 

		
	8.4.3
	The terms of the Plan do not entitle the Employee to the exercise of any discretion in his favor.

		
	8.4.4
	No Employee will have any right to compensation or damages or any other sum or benefit in respect of the Plan, including, without limitation, in relation to: 

		
	(i)
	his eligibility to participate, or ceasing to be eligible to participate, or ceasing to participate in the Plan; 

		
	(ii)
	any exercise of a discretion or a decision taken in relation to the Plan or the Plan’s operation (whether or not this disadvantages the Employee concerned); 

		
	(iii)
	any loss or reduction of any rights or expectations under the Plan in any circumstances or for any reason (including lawful or unlawful termination of employment or the employment relationship); and

		
	(iv)
	any tax liability or any other fiscal detriment suffered in relation to the reduction or forfeiture of a Deferred Award.

		
	8.4.5
	Participation in the Plan is permitted only on the basis that any rights that are not expressly set out in this Plan are excluded. Each Participant will be required to waive any such excluded rights in consideration for, and as a condition to, participating in the Plan. 

19

		
	8.4.6
	Nothing in this Plan confers any benefit, right, remedies, obligations, liabilities or expectation on any Person who is not an Employee. But this does not affect any other right or remedy of a third party which exists or is available.

		
	8.4.7
	For the avoidance of doubt, this rule applies throughout the employment of any Employee, after the termination of the employment, and during any period when the Employee has given or received notice to terminate his employment (whether such termination is lawful or unlawful).

		
	8.5
	Committee’s decisions final and binding

The decision of the Committee in connection with any interpretation of the rules of the Plan or in any dispute relating to any matter relating to the Plan will be final and conclusive.
		
	8.6
	Regulations

The Committee has power from time to time to make or vary rules or regulations for the administration and operation of the Plan. However, no such rule or regulation shall affect the timing of Vesting or payment as set forth in the Plan to the extent it would cause the Plan to fail to meet the requirements of Section 409A of the Code. 
		
	8.7
	Deferred Awards non-pensionable

Deferred Awards do not form part of a Participant’s remuneration for the purpose of determining entitlement to any benefit of employment including any pension or retirement benefit, life insurance, permanent health insurance or other similar benefit, whether existing or subsequently introduced.
		
	8.8
	Employee trust

The Company and any Subsidiary may provide money to the trustee of any trust or any other person to enable them or him to acquire Shares or other assets to be held for the purposes of the Plan, or enter into any guarantee or indemnity for those purposes, to the extent permitted by applicable law.
		
	8.9
	Consents

All transfers of Shares and CFG Bonds will be subject to any necessary consents under any applicable law or regulations for the time being in force in the United States or elsewhere, and it will be the individual’s responsibility to comply with any requirements to be fulfilled in order to obtain or obviate the necessity for any such consent.
		
	8.10
	Notices

Any notice or other document which has to be given to an Employee or Participant under or in connection with the Plan may be delivered or sent by mail to him at his home address according to the records of his employing company or sent by e-mail or fax to any e-mail address or fax number which according to the records of his employing company is used by him, or in either case such other address which the Company considers appropriate.

20

Any notice or other document which has to be given to the Company or other duly appointed agent under or in connection with the Plan may be delivered or sent by mail to it at its respective registered office (or such other place as the Committee or duly appointed agent may from time to time decide and notify to Participants) or sent by e-mail or fax to any e-mail address or fax number notified to the sender.
Notices sent by mail will be deemed to have been given on the second day after the date of mailing. However, notices sent by or to a Participant who works outside the United States will be deemed to have been given on the seventh day after the date of mailing.
Notices sent by e-mail or fax, in the absence of evidence to the contrary, will be deemed to have been received on the day after sending.
		
	8.11
	Data protection

By participating in the Plan each Participant consents to the holding and processing of personal data provided by such Participant to the Company, any Member of the CFG Group and any other persons or entities for all purposes relating to the operation of the Plan. These include, but are not limited to:
		
	8.11.1
	administering and maintaining Participants’ records;

		
	8.11.2
	providing information to trustees of any employee benefit trust, registrars, brokers or third party administrators of the Plan;

		
	8.11.3
	providing information to future purchasers of the Company or the business in which the Participant works; and

		
	8.11.4
	transferring information about the Participant to a country or territory outside the United States.

		
	8.12
	Amendment

		
	8.12.1
	Except as described in the rest of this rule 8.12, subject to (i) applicable law and the rules and regulations of the primary stock market or exchange on which the Shares are quoted or traded (if any) and (ii) the approval of the RBS Group Performance and Remuneration Committee of the Board of Directors, the Committee may at any time change the Plan in any way.

		
	8.12.2
	Except as described in rule 8.12.3, the Company in a general meeting must approve in advance by ordinary resolution any proposed change to the Plan to the advantage of present or future Participants, which relates to:

		
	(i)
	the Participants;

		
	(ii)
	the limits on the number of Shares which may be issued under the Plan;

		
	(iii)
	the individual limit for each Participant under the Plan;

		
	(iv)
	the basis for determining a Participant's entitlement to, and the terms of, securities, cash or other benefit to be provided and for the adjustment thereof (if any) if there is a capitalization issue, rights issue or open offer, sub-division 

21

or consolidation of shares or reduction of capital or any other variation of capital; or
		
	(v)
	the terms of this rule 8.12.1.

		
	8.12.3
	The Committee can change the Plan and need not obtain the approval of the Company in a general meeting for any minor changes:

		
	(i)
	to benefit the administration of the Plan;

		
	(ii)
	to comply with or take account of the provisions of, or changes to, any proposed or existing applicable law or rules of the stock market or exchange, if any, on which the Shares are principally quoted or traded; or

		
	(iii)
	to obtain or maintain favorable tax, exchange control or regulatory treatment of the Company, any Member of the CFG Group or any present or future Participant.

		
	8.12.4
	No amendment under this rule 8.12 shall affect the timing of Vesting or payment as set forth in the Plan to the extent it would cause the Plan to fail to meet the requirements of Section 409A of the Code.

		
	8.12.5
	Without limiting rules 8.6 and 8.12, the Committee expressly reserves the right to amend, prospectively or retroactively, the Plan and any outstanding Deferred Awards, to the extent necessary to maintain compliance with Section 409A of the Code. 

		
	8.13
	Severability

By participating in the Plan, each Participant agrees and acknowledges that the restrictions contained in the Plan are reasonable and necessary to protect the business of the Company and all Subsidiaries (including, but not limited to, its confidential information, customer relations and goodwill and its employees) and that the benefits each Participant receives under this Plan are sufficient compensation for these restrictions.  Each of the obligations in the Plan is an entire, separate and independent restriction on each Participant, despite the fact that they may be contained in the same phrase and if any part is found to be invalid or unenforceable the remainder will remain valid and enforceable.  While the restrictions are considered to be fair and reasonable in the circumstances, each Participant agrees that if any of them should be determined to be void or ineffective by a court or tribunal of competent jurisdiction for any reason, but would be treated as valid and effective if part of the wording was deleted or the period was reduced in scope, they shall apply with such modifications only as necessary to make them valid and effective.  
		
	8.14
	Effective Date and Termination of the Plan

The Plan shall be effective as of the effective date of the Company’s underwritten initial public offering (the “Effective Date”).  The Plan will terminate on the Expiry Date, but the Committee may terminate the Plan at any time before that date. The termination of the Plan will not affect existing Deferred Awards.
		
	8.15
	Section 409A of the Code 

22

With respect to Deferred Awards subject to Section 409A of the Code, the Plan is intended to comply with the requirements of Section 409A of the Code, and the provisions of the Plan and any Deferred Award Certificate shall be interpreted in a manner that satisfies the requirements of Section 409A of the Code, and the Plan shall be operated accordingly.  If any provision of the Plan or any term or condition of any Deferred Award would otherwise frustrate or conflict with this intent, the provision, term or condition shall be interpreted and deemed amended so as to avoid this conflict.  Notwithstanding anything else in the Plan, if the Committee considers a Participant to be a “specified employee” under Section 409A of the Code at the time of such Participant’s “separation from service” (as defined in Section 409A of the Code), and the amount hereunder is “deferred compensation” subject to Section 409A of the Code, any distribution that otherwise would be made to such Participant with respect to a Deferred Award as a result of such “separation from service” shall not be made until the date that is six months after such “separation from service,” except to the extent that earlier distribution would not result in such Participant’s incurring interest or additional tax under Section 409A of the Code.  If the Deferred Award includes a “series of installment payments” (within the meaning of Section 1.409A-2(b)(2)(iii) of the Treasury Regulations), the Participants’ right to the series of installment payments shall be treated as a right to a series of separate payments and not as a right to a single payment and if the Deferred Award includes “dividend equivalents” (within the meaning of Section 1.409A-3(e) of the Treasury Regulations), the Participant’s right to the dividend equivalents shall be treated separately from the right to other amounts under the Deferred Award. Any payments to be made under this Plan upon a termination of employment shall only be made upon a “separation from service” under Section 409A of the Code. Notwithstanding the foregoing, the tax treatment of the benefits provided under the Plan or any Deferred Award Certificate is not warranted or guaranteed, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by a Participant on account of non-compliance with Section 409A of the Code.
		
	8.16
	Governing Law

The Plan and each Deferred Award Certificate shall be governed by the laws of the State of Delaware, without application of the conflicts of law principles thereof. Each Participant waives any right it may have to trial by jury in respect of any litigation based on, arising out of, under or in connection with the Plan.

23

SCHEDULE A
For All Deferred Awards Granted After March 5, 2014
This schedule modifies the Plan with respect to all Deferred Awards granted after March 5, 2014. To the extent section cross-references are modified or sections are renumbered as a result of the provisions included in this Schedule A, the Plan shall be read to give effect to the revised cross-references and section numbers, as applicable.
		
	1.
	Section 1.1 is amended to include the following terms:

“Approved Plan” means any plan approved by HM Revenue & Customs under the Income Tax (Earnings and Pensions) Act 2003;

“Clawback” means the obligation to repay amounts to a Member of the CFG Group by an individual in accordance with rule 4 as the Committee considers appropriate;

“Malus” means the reduction of elements of an individual’s remuneration in accordance with rule 4 as the Committee considers appropriate;

		
	2.
	Section 4.1 is replaced with the following:

4    Malus and Clawback
4.1 Review of Deferred Awards

		
	4.1.1
	The Committee may decide at any time before a Deferred Award Vests, or for such period after a Deferred Award Vests that the Committee determines is appropriate, that any Participant will be subject to Malus and/or Clawback in the light of:

		
	(i)
	the performance of the Company, any Member of the CFG Group, the RBS Group and any business area or team, and the conduct, capability or performance of the Participant; and/or

		
	(ii)
	any legal or regulatory requirement on the Company or any Member of the CFG Group or the RBS Group to apply Malus and/or Clawback in relation to the Company, any Member of the CFG Group, the RBS Group or any business area or team or the Participant; and/or  

		
	(iii)
	non-compliance with any legal or regulatory requirement relating to the Company, any Member of the CFG Group, the RBS Group and any business area or team or the Participant; and/or

		
	(iv)
	any other matter which the Committee considers relevant.

		
	4.1.2
	To give effect to Malus and/or Clawback in respect of a Participant the Committee may take any action, including but not limited to:

		
	(i)
	reducing (if appropriate, to zero) the amount of any Bonus which would otherwise be payable; and/or 

		
	(ii)
	reducing (if appropriate, to zero):

A-1

		
	(a)
	the number or amount of Shares, or other securities and/or the amount or value of RBS Bonds, Conditional Cash or Bond Awards subject to a Deferred Award; and/or

		
	(b)
	the number or amount of any assets relating to any awards (which have been granted to the Participant under any other employee share plan or incentive plan (other than an Approved Plan)) operated by any Member of the CFG Group; and/or

 
		
	(c)
	the extent to which any Deferred Award held by the Participant Vests or becomes exercisable; and/or

		
	(d)
	the extent to which any award granted to the Participant under any other employee share plan or incentive plan (other than any Approved Plan) operated by any Member of the CFG Group vests or becomes exercisable,

in each case notwithstanding the extent to which any conditions imposed on such Awards or awards may be or have been satisfied; and/or 
		
	(iii)
	reducing (if appropriate, to zero) any amount otherwise payable under rules 5.3 or 5.4. 

		
	(iv)
	requiring the Participant to pay or repay any amounts as may be required for the Malus or Clawback to be satisfied in full (which, without limitation, may be deducted from the Participant's salary or any other payment to be made to the Participant by any Member of the CFG Group).

		
	4.1.3
	Where Clawback is proposed to be operated, account will be taken of any tax or social security actually paid (or due to be paid) by the Participant in respect of the amount proposed to be subject to Clawback, unless and to the extent that the Participant can claim relief in respect of such tax or social security.

		
	3.
	Section 4.2 is replaced with the following:

4.2    Reduction in Deferred Awards to give effect to provisions in other plans
The Committee may decide to take any of the actions described in rule 4.1.2 to give effect to a malus or clawback provision contained in any other employee share plan, incentive plan or bonus plan operated by any Member of the CFG Group. Such action will be taken in accordance with the terms of the relevant plan or, in the absence of any such terms, on such basis as the Committee decides is appropriate.
		
	4.
	Section 4.3 is replaced with the following:

4.3    Compliance with legal or regulatory provisions
The Company can alter or extend the range of circumstances in which Malus and/or Clawback may be operated if required by any legal or regulatory provision, including, for the avoidance of doubt, under Section 10D of the Exchange Act. 
		
	5.
	Section 5 is amended to include the following:

A-2

5.1    General
A Deferred Award will not Vest if any legal or regulatory requirement on the Company or any Member of the CFG Group would make Vesting unlawful, impossible or, in the opinion of the Committee, inappropriate or impractical.
		
	6.
	Section 8.3.3 is replaced with the following:

		
	8.3.3
	Any arrangements in this rule 8.3 may include the sale or reduction in number of Shares or value of CFG Bonds comprised in a Deferred Award.

A-3

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