Document:

Exhibit 10.1

 

LEASE

 

BETWEEN

 

REPLIMUNE GROUP, INC., AS TENANT

 

AND

 

ND/CR UNICORN LLC, AS LANDLORD

 

500 Unicorn Park Drive,

Woburn, Massachusetts

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
ARTICLE 1 BASIC   DATA; DEFINITIONS
    	
1
    
	
1.1
    	
Basic Data
    	
1
    
	
1.2
    	
Enumeration of Exhibits
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE 2   PREMISES; APPURTENANT RIGHTS AND RESERVATIONS
    	
5
    
	
2.1
    	
Lease of Premises
    	
5
    
	
2.2
    	
Appurtenant Rights and Landlord   Reservations
    	
6
    
	
2.3
    	
Access/Security
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE 3 BASIC   RENT
    	
8
    
	
3.1
    	
Payment
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE 4 TERM   COMMENCEMENT DATE/EXTENSION TERM
    	
8
    
	
4.1
    	
Term Commencement Date
    	
8
    
	
4.2
    	
Extension Option
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE 5   CONDITION OF PREMISES
    	
10
    
	
5.1
    	
Condition of the Premises
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE 6 USE OF   PREMISES
    	
12
    
	
6.1
    	
Permitted Use
    	
12
    
	
6.2
    	
Signage
    	
12
    
	
6.3
    	
Other Requirements
    	
13
    
	
6.4
    	
Extra Hazardous Use
    	
13
    
	
6.5
    	
Hazardous Materials
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE 7   INSTALLATIONS AND ALTERATIONS BY TENANT
    	
15
    
	
7.1
    	
General
    	
15
    
	
7.2
    	
Requirements for Alterations
    	
15
    
	
7.3
    	
Tenant’s Removable Property
    	
15
    
	
7.4
    	
Liability; Mechanics’ Liens
    	
15
    
	
7.5
    	
Harmonious Labor
    	
16
    
	
7.6
    	
Telecommunications
    	
16
    
	
 
    	
 
    	
 
    
	
ARTICLE 8   ASSIGNMENT AND SUBLETTING
    	
17
    
	
8.1
    	
Prohibition
    	
17
    
	
8.2
    	
Additional Events Deemed to be   Assignment/Sublet
    	
19
    
	
8.3
    	
Provisions Void Upon   Assignment/Sublet
    	
19
    
	
8.4
    	
Provisions Incorporated Into   Sublease
    	
19
    
	
8.5
    	
Collection of Rent
    	
20
    
	
8.6
    	
Excess Payments
    	
20
    
	
8.7
    	
Payment of Landlord’s Costs
    	
20
    
	
8.8
    	
Conditions to Effectiveness of   Assignment/Sublet
    	
20
    

 

ii

 

	
8.9
    	
Landlord’s Recapture Right
    	
21
    
	
 
    	
 
    	
 
    
	
ARTICLE 9   MAINTENANCE, REPAIRS AND REPLACEMENTS
    	
22
    
	
9.1
    	
Landlord’s Obligations
    	
22
    
	
9.2
    	
Tenant’s Obligations
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE 10   UTILITIES AND OTHER SERVICES
    	
24
    
	
10.1
    	
Heating, Ventilation and   Air-Conditioning
    	
24
    
	
10.2
    	
Utilities
    	
94
    
	
10.3
    	
Other Services
    	
26
    
	
10.4
    	
Interruption of Service
    	
26
    
	
 
    	
 
    	
 
    
	
ARTICLE 11 REAL   ESTATE TAXES
    	
27
    
	
11.1
    	
Definitions
    	
27
    
	
11.2
    	
Payments on Account of Real   Estate Taxes
    	
28
    
	
11.3
    	
Abatement
    	
29
    
	
 
    	
 
    	
 
    
	
ARTICLE 12   OPERATING EXPENSES
    	
29
    
	
12.1
    	
Definitions
    	
29
    
	
12.2
    	
Tenant’s Payment of Operating   Expenses
    	
29
    
	
 
    	
 
    	
 
    
	
ARTICLE 13   INDEMNITY AND INSURANCE
    	
30
    
	
13.1
    	
Tenant’s Indemnity
    	
30
    
	
13.2
    	
Tenant’s Insurance
    	
31
    
	
13.3
    	
Waiver of Subrogation
    	
33
    
	
 
    	
 
    	
 
    
	
ARTICLE 14 FIRE,   EMINENT DOMAIN, ETC.
    	
33
    
	
14.1
    	
Landlord’s Right of Termination
    	
33
    
	
14.2
    	
Restoration; Tenant’s Right of   Termination
    	
33
    
	
14.3
    	
Abatement of Rent
    	
34
    
	
14.4
    	
Condemnation Award
    	
34
    
	
 
    	
 
    	
 
    
	
ARTICLE 15   ADDITIONAL COVENANTS
    	
34
    
	
15.1
    	
Tenant
    	
34
    
	
15.2
    	
Landlord
    	
35
    
	
15.3
    	
Intentionally Omitted
    	
35
    
	
 
    	
 
    	
 
    
	
ARTICLE 16 HOLDING   OVER; SURRENDER
    	
35
    
	
16.1
    	
Holding Over
    	
35
    
	
16.2
    	
Surrender of Premises
    	
35
    
	
 
    	
 
    	
 
    
	
ARTICLE 17 RIGHTS   OF MORTGAGEES
    	
36
    
	
17.1
    	
Rights of Mortgagees
    	
36
    
	
17.2
    	
Assignment of Rents
    	
36
    
	
17.3
    	
Notice to Holder
    	
36
    
	
 
    	
 
    	
 
    
	
ARTICLE 18   SECURITY DEPOSIT
    	
37
    
	
18.1
    	
Letter of Credit
    	
37
    

 

iii

 

	
18.2
    	
Security Deposit
    	
38
    
	
18.3
    	
Application of Security Deposit
    	
38
    
	
 
    	
 
    	
 
    
	
ARTICLE 19   DEFAULT; REMEDIES
    	
39
    
	
19.1
    	
Tenant’s Default
    	
39
    
	
19.2
    	
Landlord’s Remedies
    	
43
    
	
19.3
    	
Additional Rent
    	
44
    
	
19.4
    	
Remedies Cumulative
    	
44
    
	
19.5
    	
Attorneys’ Fees
    	
44
    
	
19.6
    	
Waiver
    	
45
    
	
19.7
    	
Landlord’s Default
    	
45
    
	
19.8
    	
Tenant’s Remedies
    	
45
    
	
19.9
    	
Landlord’s Liability
    	
45
    
	
 
    	
 
    	
 
    
	
ARTICLE 20 MISCELLANEOUS   PROVISIONS
    	
46
    
	
20.1
    	
Brokerage
    	
46
    
	
20.2
    	
Invalidity of Particular   Provisions
    	
46
    
	
20.3
    	
Provisions Binding, Etc.
    	
46
    
	
20.4
    	
Notice
    	
47
    
	
20.5
    	
When Lease Becomes Binding;   Entire Agreement; Modification
    	
47
    
	
20.6
    	
Headings and Interpretation of   Sections
    	
47
    
	
20.7
    	
Waiver of Trial by Jury
    	
47
    
	
20.8
    	
Time Is of the Essence
    	
47
    
	
20.9
    	
Multiple Counterparts
    	
48
    
	
20.10
    	
Governing Law
    	
48
    
	
20.11
    	
OFAC Certification
    	
48
    
	
20.12
    	
REIT Provisions
    	
48
    

 

iv

 

LEASE

 

THIS LEASE is dated as of June 7, 2019 (the “Effective Date”), between the Landlord and the Tenant named below, and is of space in the Building described below.

 

ARTICLE 1

BASIC DATA; DEFINITIONS

 

1.1 Basic Data. Each reference in this Lease to any of the following terms shall be construed to incorporate the data for that term set forth in this Section:

 

Landlord: ND/CR Unicorn LLC, a Delaware limited liability company.

 

Landlord’s Notice Address (pursuant to Section 20.4):

 

c/o National Development

2310 Washington Street

Newton Lower Falls, Massachusetts 02462

Attention: Andrew Gallinaro

 

With a copy to: National Development

2310 Washington Street

Newton Lower Falls, Massachusetts 02462

Attention: Richard P. Schwartz, Esq.

 

Landlord’s Managing Agent: National Development Asset Management of New England Limited Partnership, or such other person or entity from time to time designated by Landlord.

 

Tenant: Replimune Group, Inc., a Delaware corporation.

 

Tenant’s Notice Address (pursuant to Section 20.4):

 

Prior to the Term Commencement Date:

 

Replimune Group, Inc.

18 Commerce Way

Woburn, MA 01801

Attention: Steve Gorgol

 

Following the Term Commencement Date:

 

Replimune Group, Inc.

18 Commerce Way

Woburn, MA 01801

Attention: Steve Gorgol

 

Building: The building commonly known and numbered as 500 Unicorn Park Drive,

 

 

Woburn, Massachusetts.

 

Building Rentable Area: Agreed to be 192,000 rentable square feet.

 

Land: The parcel of land upon which the Building is situated.

 

Property: The Land together with the Building and other improvements thereon.

 

Premises: The portion of the third (3rd) floor of the Building shown on the location plan attached hereto as Exhibit A consisting of 18,712 rentable square feet, but specifically excluding the exterior portions thereof.

 

Premises Rentable Area: Agreed to be 18,712 rentable square feet.

 

Park: The business park or parks and/or industrial park or parks or properties of which the Building is a part or with which the Property shares roads, drainage, utilities or other facilities.

 

Basic Rent: The Basic Rent for the Initial Term is as follows:

 

	
 
    	
 
    	
ANNUAL BASIC RENT
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
PER PREMISES
    	
 
    	
ANNUAL BASIC
    	
 
    	
MONTHLY
    	
 
    
	
RENTAL PERIOD
    	
 
    	
RENTABLE AREA
    	
 
    	
RENT
    	
 
    	
PAYMENT
    	
 
    
	
Free Basic Rent   Period (as defined below)
    	
 
    	
$
    	
0.00
    	
*
    	
$
    	
0.00
    	
*
    	
$
    	
0.00
    	
*
    
	
Lease Year 1
    	
 
    	
$
    	
30.50
    	
 
    	
$
    	
488,000.00
    	
**
    	
$
    	
40,666.67
    	
**
    
	
Lease Year 2
    	
 
    	
$
    	
31.00
    	
 
    	
$
    	
580,072.00
    	
 
    	
$
    	
48,339.33
    	
 
    
	
Lease Year 3
    	
 
    	
$
    	
31.50
    	
 
    	
$
    	
589,428.00
    	
 
    	
$
    	
49,119.00
    	
 
    
	
Lease Year 4
    	
 
    	
$
    	
32.00
    	
 
    	
$
    	
598,784.00
    	
 
    	
$
    	
49,898.67
    	
 
    
	
Lease Year 5
    	
 
    	
$
    	
32.50
    	
 
    	
$
    	
608,140.00
    	
 
    	
$
    	
50,678.33
    	
 
    
	
Lease Year 6
    	
 
    	
$
    	
33.00
    	
 
    	
$
    	
617,496.00
    	
 
    	
$
    	
51,458.00
    	
 
    
	
Lease Year 7
    	
 
    	
$
    	
33.50
    	
 
    	
$
    	
626,852.00
    	
 
    	
$
    	
52,237.67
    	
 
    
	
Lease Year 8
    	
 
    	
$
    	
34.00
    	
 
    	
$
    	
636,208.00
    	
 
    	
$
    	
53,017.33
    	
 
    
	
Lease Year 9
    	
 
    	
$
    	
34.50
    	
 
    	
$
    	
645,564.00
    	
 
    	
$
    	
53,797.00
    	
 
    
	
Lease Year 10
    	
 
    	
$
    	
35.00
    	
 
    	
$
    	
654,920.00
    	
 
    	
$
    	
54,576.67
    	
 
    

 

2

 

As used above, the “Free Basic Rent Period” shall mean the one (1) calendar month period commencing on the Term Commencement Date, and “Lease Year 1” shall consist of the Free Basic Rent Period and the eleven (11) calendar month period immediately thereafter; provided, that, if the Term Commencement Date is a day other than the first (1st) day of a calendar month, then the Free Basic Rent Period shall be the thirty (30) day period beginning on the Term Commencement Date, and “Lease Year 1” shall consist of the Free Basic Rent Period and the three hundred thirty-five (335) day period immediately following the Free Basic Rent Period; provided, further, that, in any such case (a) each “Lease Year” after Lease Year 1 shall be the next successive three hundred sixty-five (365) day period after Lease Year 1, and (b) “Lease Year 10” shall include the partial calendar month in which Lease Year 9 ends and conclude on the Expiration Date.

 

*Notwithstanding anything to the contrary set forth above, Tenant shall (i) only be entitled to the Free Basic Rent Period so long as no default of Tenant exists hereunder beyond the expiration of applicable notice and cure periods, and (ii) pay for its electricity and utilities for the Premises during the Free Basic Rent Period in accordance with the terms and provisions of this Lease.

 

**Further notwithstanding anything to the contrary set forth above: (A) the Annual Basic Rent for Lease Year 1 is based on a hypothetical Premises Rentable Area of 16,000 rentable square feet solely for the purpose of setting forth such Annual Basic Rent and Monthly Payment during such period only, and not for any other purposes of this Lease, including, without limitation, the actual Premises Rentable Area, Tenant’s Proportionate Share or otherwise, all of which shall be based on a Premises Rentable Area of 18,712 rentable square feet (the “Phased Basic Rent Period”); and (B) Tenant shall (x) only be entitled to the Phased Basic Rent Period so long as no default of Tenant exists hereunder beyond the expiration of applicable notice and cure periods, and (y) pay for its electricity and utilities for the Premises during the Phased Basic Rent Period in accordance with the terms and provisions of this Lease.

 

If Tenant exercises the Extension Option as provided in Section 4.2, then the annual Basic Rent for the Extension Term shall be the “Extension Term Basic Rent,” which shall equal the Fair Market Rent (as defined below) multiplied by ninety-five percent (95%); provided, however, that, in no event shall the Extension Term Basic Rent be less than the Basic Rent rate for the last Lease Year of the Initial Term. The term “Fair Market Rent” shall mean the annual Basic Rent for the Extension Term as agreed to between Landlord and Tenant, negotiating in good faith, no later than thirty (30) days after Tenant’s timely exercise of the Extension Option; provided, however, that, if: (I) Tenant exercises the Extension Option more than one (1) year prior to the expiration of the then current Term, then Landlord and Tenant shall reach agreement, negotiating in good faith, by that date which is eleven (11) months prior to the expiration of the then current Term (and Landlord shall not be required to so negotiate prior to such date); and (II) Landlord and Tenant shall not have agreed upon such Fair Market Rent by said date as aforesaid (an “Impasse”), then such Fair Market Rent shall be determined by means of an Appraisers’ Determination as more particularly described in Exhibit G hereto.

 

Additional Rent: All charges and sums which Tenant is obligated to pay to Landlord pursuant to the provisions of this Lease, other than and in addition to Basic Rent.

 

3

 

Rent: Basic Rent and Additional Rent.

 

Base Year for Operating Expenses: Calendar year 2020.

 

Base Year for Taxes: Fiscal year 2020.

 

Tenant’s Proportionate Share: Nine and 75/100ths percent (9.75%) (which is based on the ratio of the agreed upon (a) Premises Rentable Area to (b) Building Rentable Area).

 

Security Deposit: $450,000.00 in the form of a Letter of Credit (as defined below), to be held and disposed of as provided in ARTICLE 18, in order to secure the payment and performance of Tenant’s obligations under this Lease and subject to potential reduction pursuant to the terms and provisions of ARTICLE 18.

 

Letter of Credit: A letter of credit conforming to the requirements set forth in Section 18.1(a) in the sum of the Security Deposit, to be held and disposed of as provided in ARTICLE 18.

 

Term Commencement Date: See Section 4.1.

 

Rent Commencement Date: The first (1st) day following the Free Basic Rent Period.

 

Expiration Date: The day immediately preceding the ten (10) year anniversary of the Rent Commencement Date; provided, that, if the Rent Commencement Date is other than the first (1st) day of a calendar month, then the Expiration Date shall be the last day of the calendar month in which such anniversary falls; provided, further, that, such Expiration Date shall be extended if Tenant timely and validly exercises its Extension Option.

 

Term: Approximately ten (10) years, one (1) month, commencing on the Term Commencement Date and expiring at 11:59 p.m. on the Expiration Date. The Term shall include any extension thereof that is expressly provided for by this Lease and that is effected strictly in accordance with this Lease.

 

Extension Option: Tenant’s right to extend the Term hereof in accordance with Section 4.2.

 

Extension Term: The extended portion of the Term resulting from Tenant’s exercise of its Extension Option in accordance with Section 4.2.

 

General Liability Insurance: $3,000,000.00 per occurrence/$5,000,000.00 aggregate (combined single limit) for property damage, bodily injury and death.

 

Permitted Use: Business, professional and general office use.

 

Broker: Newmark Knight Frank, representing Landlord and Tenant.

 

Agents: Officers, directors, members, managers, partners, employees, servants, agents and representatives.

 

4

 

Force Majeure: Collectively and individually, strikes, lockouts or other labor troubles, fire or other casualty, accidents, acts of God, governmental preemption of priorities or other controls in connection with a national or other public emergency, shortages of fuel, supplies or labor, or any other cause, whether similar or dissimilar, beyond the reasonable control of the party required to perform an obligation, excluding financial constraints of such party.

 

Business Days: All days except Saturdays, Sundays, and other days when federal or state banks in the state in which the Property is located are not open for business.

 

Normal Business Hours: 8 a.m. to 6 p.m. on all Business Days.

 

Applicable Law: All laws, rules, regulations, statutes, orders, ordinances, by-laws, permitting and licensing requirements, as amended from time to time, including without limitation, the Americans With Disabilities Act of 1990 and any applicable state and local regulations regarding architectural access or comparable regulations imposed by any Governmental Authority.

 

Governmental Authority: All governmental or quasi-governmental bodies, agencies, departments, boards, offices, commissions or authorities possessing or claiming jurisdiction with regard to the Tenant or the Property.

 

1.2 Enumeration of Exhibits. The following Exhibits are attached hereto, and are incorporated herein by reference.

 

	
Exhibit A
    	
 
    	
Plan of Premises
    
	
Exhibit B
    	
 
    	
Operating Expenses
    
	
Exhibit C
    	
 
    	
Rules and   Regulations of Building
    
	
Exhibit D
    	
 
    	
Form of   Commencement Date Agreement
    
	
Exhibit E
    	
 
    	
Form of Notice of   Lease
    
	
Exhibit F
    	
 
    	
Form of Letter of   Credit
    
	
Exhibit G
    	
 
    	
Appraiser’s   Determination of Fair Market Rent
    
	
Exhibit H
    	
 
    	
Satellite Dish
    

 

ARTICLE 2

PREMISES; APPURTENANT RIGHTS AND RESERVATIONS

 

2.1 Lease of Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises, to have and to hold, for the Term and upon the terms and conditions set forth herein.

 

(a)           Exceptions/Exclusions. Excepted and excluded from the Premises and the Common Facilities (as defined below) are the ceiling, floor, perimeter walls and exterior windows (except the inner surface of each thereof), and any space in the Premises used for shafts, stacks, pipes, conduits, fan rooms, ducts, electric or other utilities, sinks or other Building facilities, but the entry doors to the Premises are a part thereof, together with related glass and finish work. Landlord shall have the right to place in the Premises (making reasonable efforts not to materially interfere with Tenant’s use of the Premises) interior storm windows, sun control devices, utility lines, cables and wiring, equipment, stacks, pipes, conduits, ducts and the like.

 

5

 

2.2 Appurtenant Rights and Landlord Reservations.

 

(a)           Appurtenant Rights.

 

Subject to the matters set forth in subsection (i) below, Tenant shall have, as appurtenant to the Premises, the non-exclusive right to use, and permit its invitees to use in common with Landlord and others, the following areas of the Property (collectively, the “Common Facilities”): (i) public or common lobbies, hallways, stairways, elevators (if any) and common walkways necessary for access to the Building and the Premises, and if the portion of the Premises on any floor includes less than the entire floor, any common toilets, any corridors required for access to the Premises and any elevator lobby of such floor; and (ii) the access roads, driveways, parking areas (as the same may be designated or modified by Landlord from time to time), loading areas, pedestrian sidewalks, landscaped areas, trash enclosures, if any, and other areas or facilities, if any, which are located in or on the Property and designated by Landlord from time to time for the non-exclusive use of tenants and other occupants of the Building. Tenant’s employees and invitees shall be entitled to use sixty-two (62) of the parking spaces located on the parking area(s) located on the Property, fifty-three (53) of which parking spaces shall be used in common with others entitled thereto, on an unreserved, non-exclusive, first-come, first-served basis, and nine (9) of which parking spaces shall be located in the parking garage serving the Building in locations reasonably designated by Landlord from time to time on an exclusive, reserved basis, which exclusive, reserved parking spaces will be marked “Replimune”. Subject to the terms and provisions of this Section 2.2(a) and ARTICLE 14 below, Landlord shall not reduce the parking ratio for the Building (which is (x) 3.3 parking spaces per 1,000 rentable square feet of Premises Rentable Area for unreserved parking spaces, and (y) 0.5 parking spaces per 1,000 rentable square feet of Premises Rentable Area for reserved parking spaces) or the number of parking spaces that Tenant and Tenant’s employees and invitees are entitled to use pursuant to this Section 2.2(a), after the Term Commencement Date of this Lease. Landlord shall not be liable to Tenant, and this Lease shall not be affected, if any parking rights of Tenant hereunder are impaired by Applicable Law. Tenant shall have the right to install and use a Satellite Dish (as defined below) on the roof of the Building pursuant to the terms and provisions of Exhibit H attached hereto.

 

(i)            Limitations. Notwithstanding any provision herein to the contrary, Tenant’s rights under this Lease shall always be subject to (a) reservations, restrictions, easements and encumbrances of record, as amended from time to time, (b) such rules and regulations from time to time established with respect to the Park or by Landlord with respect to the Property pursuant to Section 6.3(c) (the “Rules and Regulations”), and (c) Landlord’s reservations set forth in subsection (b) below or elsewhere in this Lease.

 

(b)              Landlord Reservations.

 

Notwithstanding any provision herein to the contrary, Landlord reserves the right to: (i) grant, modify and terminate easements and other encumbrances so long as the same do not materially and adversely interfere with the Permitted Use of the Premises by Tenant, (ii) designate and change from time to time areas and facilities so to be used, (iii) make additions to the Building, (iv) demolish portions of the Building and other improvements on the Land provided such demolition does not materially adversely affect the Premises, (v) construct other

 

6

 

buildings and improvements at the Property, and (vi) post “For Sale” and “For Lease” signs on the Property at any time during the Term, and “For Lease” signs on the exterior door of the Premises during the last twelve (12) months of the Term; provided, that, in each case, the exercise of any such reserved rights or the taking of any such actions by Landlord in the exercise of such rights will not materially adversely change or modify the Premises or materially adversely interfere with the Permitted Use of the Premises by Tenant for more than a temporary period.

 

Landlord further reserves the right to enter the Premises at all reasonable hours for the purpose of inspecting the Premises, doing maintenance, making repairs and replacements, reading meters or otherwise exercising its rights or fulfilling its obligations under this Lease, including without limitation, its rights as set forth in Section 9.1 hereof, and Landlord and Landlord’s Managing Agent also shall have the right to make access available at all reasonable hours to prospective or existing mortgagees, purchasers or tenants of any part of the Property. If Tenant shall not be personally present to open and permit such entry into the Premises, Landlord or Landlord’s Agents shall nevertheless be able to gain such entry by contacting a representative of Tenant, whose name, address and telephone number shall be furnished by Tenant to Landlord within ten (10) days after the Term Commencement Date, and updated from time to time as necessary. If an excavation shall be made upon the portion of the Land adjacent to the Building or shall be authorized to be made, Tenant shall afford to those parties causing or authorized to cause such excavation, license to enter upon the Premises for the purpose of doing such work as said parties shall deem necessary to preserve the Building from injury or damage and to support the same by proper foundations without any claim for damage or indemnity against Landlord, or diminution or abatement of Rent. In the exercise of Landlord’s rights under this Section 2.2, Landlord shall not materially adversely interfere with the Permitted Use of the Premises by Tenant for more than a temporary period.

 

2.3 Access/Security. Subject to Force Majeure, the terms and provisions of ARTICLE 14 and temporary interruptions from time to time due to Landlord’s performance of its obligations under this Lease, Landlord shall provide, and Tenant shall have, continuous access to the Premises at all times, subject to security precautions from time to time in effect (but Landlord shall not be obligated to provide security for the Building or the Property, or any portion thereof) and subject always to restrictions based on emergency conditions. If and to the extent that Tenant desires to provide security for the Premises or for such persons or their property, Tenant shall be responsible at its own expense for so doing, after having first consulted with Landlord and after obtaining Landlord’s consent, which shall not be unreasonably withheld. Landlord, at Landlord’s expense, shall provide a reasonable number of keys or a card access or code system so that employees and other designees of Tenant will have access to the Building on a 24 hour/7 days per week basis.

 

Landlord agrees, upon Tenant’s request and at Tenant’s expense, to promptly (a) change locks to the Premises, and issue a reasonable number of new keys to employees and others authorized by Tenant, and (b) delete or deactivate electronic access cards or codes held or assigned to any employees, former employees or other persons designated by Tenant in writing, to the Building and the Premises, and issue a reasonable number of new electronic access cards or codes to employees and other persons authorized by Tenant.

 

7

 

ARTICLE 3

BASIC RENT

 

3.1 Payment.

 

(a)                                 Tenant agrees to pay the Basic Rent and Additional Rent to Landlord, or as directed by Landlord, commencing on the Rent Commencement Date, without offset, abatement (except as provided in Section 14.3), deduction or demand. Basic Rent shall be payable in advance in lawful money of the United States in equal monthly installments, on the first day of each and every calendar month during the Term. All payments of Rent shall be sent to Landlord at the Landlord’s address provided in the Basic Data section of this Lease, or at such other place as Landlord may from time to time designate by written notice. In the event that any installment of Basic Rent or any payment of Additional Rent is not paid when due, Tenant shall pay to Landlord, in addition to any charges due under Section 19.2(f), an administrative fee equal to five percent (5%) of the overdue amount. Landlord and Tenant agree that all amounts due from Tenant under or with respect to this Lease, whether labeled Basic Rent, Additional Rent or otherwise, shall be considered as rental reserved under this Lease for all purposes, including without limitation, regulations promulgated pursuant to the Bankruptcy Code, including without limitation, Section 502(b) thereof.

 

(b)                                 Basic Rent for any partial month falling within the Term shall be pro-rated on a daily basis, and if the first day on which Tenant must pay Basic Rent shall be other than the first day of a calendar month, the first payment which Tenant shall make to Landlord shall be equal to a proportionate part of the monthly installment of Basic Rent for the partial month from the first day on which Tenant must pay Basic Rent to the last day of the month in which such day occurs, plus the installment of Basic Rent for the succeeding calendar month.

 

ARTICLE 4

TERM COMMENCEMENT DATE/EXTENSION TERM

 

4.1 Term Commencement Date. The “Term Commencement Date” shall be the earlier of the date on which: (a) Landlord delivers the Premises to Tenant with the Delivery Condition (as defined below) satisfied (the “Delivery Date”); or (b) Tenant occupies any portion of the Premises for the conduct of its business. Subject to the foregoing provision, Landlord anticipates that the Delivery Date shall occur on or before July 1, 2019 (the “Estimated Term Commencement Date”). Notwithstanding the foregoing or anything to the contrary set forth in this Lease, but subject to the terms and provisions set forth hereinbelow, Tenant acknowledges that (i) all or a portion of the Premises are currently occupied by another tenant, Kaspersky Lab, Inc. (“Kaspersky”), with whom Landlord has entered into an agreement obligating Kaspersky to vacate and surrender the Premises to Landlord on or before June 30, 2019, (ii) Landlord shall not be liable to Tenant for failing to deliver the Premises, or any portion thereof, to Tenant by any particular date, and (iii) Tenant shall not have the right to terminate this Lease for Landlord’s failure to timely deliver the Premises, or any portion thereof, to Tenant by any particular date, but shall accept delivery of such Premises when delivered by Landlord with the Delivery Condition satisfied.

 

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Notwithstanding the foregoing, if the Delivery Date has not occurred on or before the Estimated Term Commencement Date, then this Lease shall not be void or voidable and neither Landlord nor any of Landlord’s Agents shall be liable to Tenant for any loss or damage resulting therefrom; provided, that, subject to any delays caused by casualty and/or condemnation pursuant to ARTICLE 14 below and/or Force Majeure, in the event that the Delivery Date is delayed beyond: (A) August 1, 2019 (the “Initial Outside Delivery Date”), then so long as this Lease is then in full force and effect and no default of Tenant exists hereunder beyond the expiration of applicable notice and cure periods, Tenant shall, following the Rent Commencement Date, receive a credit against Basic Rent equal to one (1) days’ then current Basic Rent for each one (1) day that the Delivery Date is delayed beyond the Initial Outside Delivery Date; and (B) September 1, 2019, then so long as this Lease is then in full force and effect and no default of Tenant exists hereunder beyond the expiration of applicable notice and cure periods, Tenant shall have the right to terminate this Lease upon at least ten (10) Business Days’ written notice to Landlord (“Tenant’s Termination Notice”) in which case this Lease shall terminate and be of no further force and effect without further liability or obligation on the part of either party (except for any obligations expressly stated herein to survive termination) unless Landlord causes the Delivery Date to occur prior to the expiration of such ten (10) Business Day period, in which case such termination and termination right (and Tenant’s Termination Notice) shall be null and void and of no further force and effect and this Lease shall continue in full force and effect.

 

Promptly upon the occurrence of the Term Commencement Date, Landlord may, at Landlord’s option, deliver to Tenant written notice confirming same, but Landlord’s failure to deliver such notice shall not constitute a default by Landlord or affect the rights and obligations of the parties hereunder. At Landlord’s request, Tenant shall execute and deliver to Landlord a Commencement Date Agreement in the form attached hereto as Exhibit D confirming the Term Commencement Date, the Rent Commencement Date and the Expiration Date within ten (10) days of such request.

 

4.2 Extension Option. Tenant shall have the option (the “Extension Option”) to extend the Term of this Lease for an additional period of five (5) years, commencing on the day immediately following the originally scheduled Expiration Date and expiring on the fifth (5th) anniversary of the originally scheduled Expiration Date, with such Extension Option to be exercised by Tenant delivering to Landlord written notice thereof not less than twelve (12) months and not more than fifteen (15) months prior to the originally scheduled Expiration Date. Tenant’s right to exercise its Extension Option is conditioned upon (a) no Default of Tenant having occurred on or before the date of exercise or the date the Extension Term is to commence, (b) this Lease being in full force and effect, and (c) Replimune Group, Inc. having continuously occupied the entire Premises from the Term Commencement Date through the date of its exercise of such Extension Option and through the date on which the Extension Term is to commence. If Tenant exercises its Extension Option, then the portion of the Term preceding the originally scheduled Expiration Date shall be referred to as the “Initial Term” and the portion of the Term from and after the originally scheduled Expiration Date shall be referred to as the “Extension Term.” The Extension Term shall be upon all the same terms, covenants and conditions as the Initial Term, except (i) as to Basic Rent, which shall be the Extension Term Basic Rent as determined as set forth in Section 1.1, (ii) that Tenant shall have no further extension rights unless otherwise expressly provided herein or hereafter agreed to in writing by

 

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Landlord, (iii) Tenant shall be required to provide security as described in ARTICLE 18, (iv) Tenant shall not be entitled to any period of “free rent” for the Extension Term, (v) there shall be no landlord contribution for tenant improvements in connection with such Extension Term, and (vi) Landlord shall be under no obligation to perform any improvements or related work to the Premises.

 

ARTICLE 5

CONDITION OF PREMISES

 

5.1 Condition of the Premises.

 

(a)                                 Tenant acknowledges that Landlord is delivering the Premises to Tenant on the Delivery Date, and Tenant is accepting the Premises on the Delivery Date, in “as-is” condition without representation or warranty by Landlord, and Landlord shall have no obligation to perform any work or construction to the Premises, other than Landlord’s obligation to deliver the Premises to Tenant on the Delivery Date (i) free of all tenants, occupants and personal property (including, without limitation, free of Kaspersky’s occupancy), (ii) with the Premises fully demised and in compliance with Applicable Laws, (iii) with all Building Systems (as defined below) serving the Premises in good working order, condition and repair (including, without limitation, the so-called “variable air volume” boxes that are part of the HVAC (as defined below) system serving the Premises), and (iv) subject to an SNDA (as defined in Section 17.1 below) which has been executed by Landlord and the current Holder (as defined in Section 17.1 below) of the Mortgage (as defined in Section 17.1 below) encumbering the Building and delivered to Tenant (the satisfaction of clauses (i) through (iv) hereinabove, the “Delivery Condition”). Tenant acknowledges that it has inspected the Premises and Common Facilities of the Building and has found the same satisfactory subject to Landlord’s obligation to satisfy the Delivery Condition. All terms and conditions of this Lease, other than the obligation to pay Rent (which shall commence on the Rent Commencement Date), shall be applicable to the Premises from and after the Effective Date. Notwithstanding the foregoing, from and after the Term Commencement Date, Tenant shall pay for electricity with respect to the Premises as set forth in Section 10.2(b) hereof and other building services consumed and/or requested by Tenant during any such period, including without limitation, HVAC services for the Premises.

 

(b)                                 Tenant shall cause an initial fit plan for the layout of the initial tenant improvements that Tenant desires to have performed in the Premises (collectively, the “Tenant’s Work”) to be prepared at Tenant’s cost, subject to reimbursement from the Landlord’s Contribution (as defined below) (the “Fit Plan”). Tenant shall use commercially reasonable efforts to submit the Fit Plan to Landlord for its approval on or before June 15, 2019, and Landlord shall approve or disapprove the Fit Plan, in its reasonable discretion, within ten (10) days after receiving it. At Tenant’s sole cost and expense, Tenant shall cause the Fit Plan to be revised in a manner sufficient to remedy Landlord’s objections and/or respond to Landlord’s concerns and for the revised Fit Plan to be redelivered to Landlord, and Landlord shall approve or disapprove Tenant’s revised Fit Plan within ten (10) days following the date of resubmission.

 

(c)                                  After approving Tenant’s Fit Plan, Tenant shall cause final plans and specifications to be prepared (“Final Plans”) for the construction of the Tenant’s Work and submit the same to Landlord for approval by June 30, 2019, which approval shall not be

 

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unreasonably withheld, conditioned or delayed. Within five (5) Business Days after delivery of the Final Plans to Landlord, Landlord shall either approve the same or request changes therein. All changes to the Final Plans will be subject to Landlord’s approval, which approval shall not be unreasonably withheld, conditioned or delayed. No work shall be conducted by or on behalf of Tenant until the Final Plans have been fully approved in writing by Landlord. If Landlord and Tenant shall fail to agree upon the Plans by July 31, 2019, then Landlord may (but shall not be required to) at any time thereafter terminate this Lease by giving written notice of such termination to Tenant and thereupon this Lease shall terminate without further liability or obligation on the part of either party (except for the obligation of Tenant to pay for all work related to preparation of plans and any obligations expressly stated herein to survive termination).

 

The Final Plans shall be stamped by a Massachusetts registered architect and engineer, such architect and engineer, being subject to Landlord’s prior reasonable approval, and shall comply with Applicable Law and the requirements of the Rules and Regulations and shall be in a form satisfactory to appropriate governmental authorities responsible for issuing permits, approvals and licenses required for such Tenant’s Work.

 

(d)                                 Tenant’s Work conducted by Tenant shall constitute Alterations by Tenant, as defined in ARTICLE 7, and shall comply in all respects with said ARTICLE 7. All of Tenant’s Work shall be performed in a good and workmanlike manner using new and high quality materials and in accordance with the provisions of all Applicable Laws and insurance requirements applicable thereto, all matters of record and the requirements of Landlord and Landlord’s mortgagee including, without limitation, bond requirements, and Tenant’s Work shall be performed only by a duly licensed and bonded contractor approved by Landlord.

 

(e)                                  Landlord shall reimburse Tenant for the costs incurred by Tenant with respect to the design and performance of the Tenant’s Work (the “Cost of Tenant’s Work”) up to the aggregate amount of $654,920.00 (the “Landlord’s Contribution”), subject to the provisions hereof. To the extent that the Cost of Tenant’s Work exceeds the Landlord’s Contribution, Tenant shall be entirely responsible for such excess. Landlord’s Contribution shall be payable by Landlord to Tenant (or, at Landlord’s election, directly to Tenant’s general contractor or subcontractors) according to Landlord’s standard construction disbursement procedures upon Substantial Completion (as defined below) of Tenant’s Work. Prior to any payment of the Landlord’s Contribution, Tenant shall have completed all of the Tenant’s Work in accordance with the Final Plans and shall have delivered to Landlord: (A) a Certificate of Occupancy from the applicable Governmental Authorities permitting Tenant to legally occupy the Premises for the Permitted Use; (B) a Certificate of Completion from Tenant’s architect certifying that the Tenant’s Work has been completed in accordance with the Final Plans and Applicable Laws; (C) lien waivers from Tenant’s general contractor and all subcontractors for work of $5,000 or more indicating payment for all services and materials relating to Tenant’s Work and to the Premises; (D) upon Landlord’s request, an endorsement to Landlord’s and Landlord’s mortgagee’s title insurance policies, at Landlord’s election, confirming that there are no outstanding notices of contract, mechanic’s liens or other matters relating to Tenant’s Work, and that all required documentation has been filed such that no mechanics liens or related documents may be filed in connection with Tenant’s Work; (E) receipted invoices showing the amount of Tenant’s payments for Tenant’s Work; and (F) such other documents as Landlord may reasonably request. In the event that the foregoing conditions have been satisfied, Landlord shall give Tenant

 

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prompt written notice of the same whereupon “Substantial Completion” of the Tenant’s Work will be deemed to have occurred and, so long as Tenant is not then in default under this Lease beyond the expiration of applicable notice and cure periods and this Lease is then in full force and effect, Landlord shall disburse the Landlord’s Contribution for the Cost of Tenant’s Work.

 

So long as this Lease is then in full force and effect and no default of Tenant exists hereunder beyond the expiration of applicable notice and cure periods, any portion of the Landlord’s Contribution which has not been applied on or before the expiration of the first (1st) Lease Year shall, at Tenant’s written request, be applied by Landlord against the then next due monthly installments of Basic Rent due under this Lease in an amount not to exceed $187,120.00 in the aggregate (the “Aggregate Basic Rent Credit”) until such Aggregate Basic Rent Credit is fully expended, with any excess over such Aggregate Basic Rent Credit being deemed forfeited by Tenant and Landlord shall have no further obligation with respect to such excess.

 

(f)                                   In addition to the Landlord’s Contribution, within thirty (30) days following Landlord’s receipt of paid invoices therefor, Landlord shall reimburse Tenant for its actual out-of-pocket moving costs to relocate to the Premises and/or for expenses incurred in connection with the purchase and/or installation of Tenant’s tel/data wiring for the Premises up to an amount not to exceed $46,780.00.

 

(g)                                  Provided that (i) the foregoing conditions in Section 5.1(e) above have been met, (ii) this Lease is then in full force and effect, and (iii) no default of Tenant exists hereunder beyond the expiration of applicable notice and cure periods, then notwithstanding anything herein which may be to the contrary, all costs incurred by Tenant with respect to the design and performance of the Tenant’s Work up to the aggregate amount of $654,920.00 shall be due and payable to Tenant, regardless of how much or how little of the Premises are improved, but subject to any portion thereof that is utilized for the Aggregate Basic Rent Credit.

 

ARTICLE 6

USE OF PREMISES

 

6.1 Permitted Use. Tenant agrees that the Premises shall be used and occupied by Tenant only for Permitted Use and for no other use without Landlord’s prior express written consent. Tenant agrees and acknowledges that it has performed all investigations it has deemed necessary to satisfy itself that the use of the Premises for the Permitted Use is authorized under Applicable Law, including without limitation, all zoning laws in effect in the town/city in which the Property is located, and that Landlord has made no representations or warranties to Tenant with respect thereto.

 

6.2 Signage. Tenant will not place on the exterior of the Premises (including both interior and exterior surfaces of doors and interior surfaces of windows) or on any part of the Building outside the Premises or any portion of the Premises visible from outside the Premises, any sign, symbol, advertisement or the like visible to public view outside of the Premises, without Landlord’s prior written consent in Landlord’s sole discretion. Landlord will not withhold consent for any signs and lettering to the entry doors to the Premises, provided that such signs or lettering comply with Applicable Laws and conform to any sign standards of Landlord and/or the Park, and provided that Tenant has submitted to Landlord a plan or sketch in

 

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reasonable detail (showing, without limitation, size, color, location, materials and method of affixation) of the sign to be placed on such entry doors. Landlord shall provide Tenant with building standard signage for Tenant’s name on all building directories in the lobby of the Building and at the entrance of the Premises at Landlord’s sole cost and expense.

 

6.3 Other Requirements. Tenant agrees to conform to the following provisions during the Term of this Lease:

 

(a)                                 Tenant shall not perform any act or carry on any practice which may injure the Premises or any other part of the Building or the Property;

 

(b)                                 Tenant shall, in its use of the Premises, comply with Applicable Law;

 

(c)                                  Tenant shall abide by the Rules and Regulations from time to time established by Landlord. In the event that there shall be a conflict between such Rules and Regulations and the provisions of this Lease, the provisions of this Lease shall control. The Rules and Regulations currently in effect are set forth in Exhibit C; and

 

(d)                                 Tenant shall not abandon the Premises.

 

6.4 Extra Hazardous Use. Tenant covenants and agrees that Tenant will not do or permit anything to be done in or upon the Premises, or bring in anything or keep anything therein, which shall increase the rate of property or liability insurance carried by Landlord on the Premises or the Property above the standard rate applicable to Premises being occupied for the Permitted Use. If the premium or rates payable with respect to any policy or policies of insurance purchased by Landlord or Landlord’s Managing Agent with respect to the Property increases as a result of any act or activity on or use of the Premises during the Term or payment by the insurer of any claim arising from any act or neglect of Tenant, or Tenant’s Agents, independent contractors or invitees, Tenant shall pay such increase, from time to time, within fifteen (15) days after demand therefor by Landlord, as Additional Rent. Tenant may discontinue the act or activity or use of the Premises which caused the increased premiums or rates, in which case Tenant shall not be obligated to make any such payments to Landlord so long as such increased premiums or rates are actually reduced as a result of such discontinuance of such act, activity or use.

 

6.5 Hazardous Materials.

 

(a)                                 As used herein each of the following terms shall have the meaning ascribed thereto:

 

(i)                                     “Hazardous Materials” shall mean each and every element, compound, chemical, mixture, contaminant, pollutant, material, waste or other substance which is defined, determined or identified as hazardous or toxic under any Environmental Law, including, without limitation, an “oil,” “hazardous waste,” “hazardous substance,” or “chemical substance or mixture,” as the foregoing terms (in quotations) are defined in Environmental Laws, as defined below.

 

(ii)                                  “Environmental Law” shall mean any federal, state and/or local

 

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statute, ordinance, bylaw, code, rule and/or regulation now or hereafter enacted, pertaining to any aspect of the environment or human health, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. §9601 et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §6901 et seq., the Toxic Substances Control Act, 15 U.S.C. §2061 et seq., the Federal Clean Water Act, 33 U.S.C. §1251, and the Federal Clean Air Act, 42 U.S.C. §7401 et seq., and all environmental laws of the state in which the Property is located, including without limitation, Chapter 21C, Chapter 21D, and Chapter 21E of the General Laws of Massachusetts and the regulations promulgated by the Massachusetts Department of Environmental Protection.

 

(iii)                               “Environmental Condition” shall mean any disposal, release or threat of release of Hazardous Materials on, from or about the Premises, the Building or the Property or storage of Hazardous Materials on, from or about the Premises, the Building or the Property.

 

(b)                                 Tenant may use chemicals such as adhesives, lubricants, ink, solvents and cleaning fluids of the kind and in amounts and in the manner customarily found and used in business offices in order to conduct its business at the Premises and to maintain and operate the business machines located in the Premises. Tenant shall not, without Landlord’s prior written consent, which Landlord may withhold or condition in Landlord’s sole discretion, allow, use, store, handle, treat, transport, release or dispose of any other Hazardous Materials on or about the Premises or the Property except as aforesaid. Any handling, treatment, transportation, storage, disposal or use of Hazardous Materials by Tenant in or about the Premises or the Property and Tenant’s use of the Premises shall comply with all applicable Environmental Laws. Tenant shall give written notice to Landlord as soon as reasonably practicable of (i) any communication received by Tenant from any governmental authority concerning Hazardous Materials which relates to the Premises, the Building or the Property, and (ii) any Environmental Condition of which Tenant is aware.

 

(c)                                  Tenant shall indemnify, defend upon demand with counsel reasonably acceptable to Landlord, and hold Landlord harmless from and against, any liabilities, losses, claims, damages, interest, penalties, fines, reasonable Attorneys’ Fees (as defined below), experts’ fees, court costs, remediation costs, and other expenses which result from the use, storage, handling, treatment, transportation, release, threat of release or disposal of Hazardous Materials in or about the Premises or the Property by Tenant or Tenant’s Agents, independent contractors or invitees either prior to the Effective Date or during or after the Term of this Lease in violation of any applicable Environmental Law. As used in this Lease, the term “Attorneys’ Fees” means attorneys’, paralegals, consulting and witness’ fees and disbursements, whether for in house counsel or outside counsel (including, without limitation, for attendance at hearings, depositions, and trials) and related expenses, including, without limitation, for lodging, meals, and transportation, together with all such costs and expenses incurred in connection with appellate proceedings.

 

The provisions of this Section 6.5 shall survive the expiration or earlier termination of the Term of this Lease, regardless of the cause of such expiration or termination.

 

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ARTICLE 7

INSTALLATIONS AND ALTERATIONS BY TENANT

 

7.1 General. Tenant shall make no alterations, additions (including, for the purposes hereof, wall-to-wall carpeting), or improvements, including without limitation, Tenant’s Exclusive Facilities (as defined below) (collectively, “Alterations”) in or to the Premises (including without limitation, any Alterations necessary for Tenant’s initial occupancy of the Premises) without Landlord’s prior written consent, which consent shall not be unreasonably withheld or delayed with respect to Alterations that do not affect or involve the Structure (as defined below) of the Building, the Building’s heating, ventilating, and air-conditioning (“HVAC”), life safety, electrical, plumbing, mechanical or utility systems or any other Building systems (collectively, the “Building Systems”) or any Common Facilities or other area outside of the Premises. Any Alterations shall be performed and maintained in accordance with the Rules and Regulations and with plans and specifications meeting the requirements set forth in the Rules and Regulations and approved in advance by Landlord. Notwithstanding the foregoing, Landlord’s consent shall not be required for any Alteration that satisfies all of the following criteria (a “Permitted Alteration”): (a) such Alteration is not visible from the exterior of the Premises or the Building; (b) such Alteration will not affect the Building Systems or the Structure; (c) such Alteration does not require work to be performed inside the walls or above the ceiling of the Premises; (d) any such Alterations do not cost more than $50,000.00 in the aggregate during any Lease Year; and (e) Tenant has provided Landlord with written notice of its intention to perform such Alteration at least ten (10) days prior to performing the same. Permitted Alterations shall be subject to all the other provisions of this ARTICLE 7, to the extent applicable thereto.

 

7.2 Requirements for Alterations. All Alterations shall (i) be performed in a good and workmanlike manner and in compliance with all Applicable Law, including the requirement that Tenant obtain any and all permits and approvals required of the applicable government authorities, (ii) be made at Tenant’s sole cost and expense, (iii) become part of the Premises and the property of Landlord (unless at the time of Landlord’s approval of such Alterations, Landlord elects in writing to require Tenant to remove the same upon Tenant’s surrender of the Premises), except for Tenant’s Removable Property, as defined in Section 7.3 below, and (iv) be coordinated with any work being performed by Landlord in such a manner as not to damage the Building or interfere with the construction or operation of the Building. If any Alterations shall involve the removal of fixtures, equipment or other property in the Premises which are not Tenant’s Removable Property, such fixtures, equipment or other property shall be promptly replaced by Tenant at its expense with new fixtures, equipment or other property of like utility and of at least equal quality.

 

7.3 Tenant’s Removable Property. All articles of personal property and all business fixtures, machinery and equipment and furniture owned or installed by Tenant solely at its expense in the Premises (“Tenant’s Removable Property”) shall remain the property of Tenant and may be removed by Tenant at any time prior to the expiration or earlier termination of the Term, provided that Tenant, at its expense, shall repair any damage to the Property caused by such removal.

 

7.4 Liability; Mechanics’ Liens. Notice is hereby given, and Landlord and Tenant

 

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hereby agree, that Landlord shall not be liable for any labor or materials (or the cost therefor) furnished or to be furnished to Tenant upon credit, and that no mechanic’s or other lien for any such labor or materials shall attach to or affect the reversion or other estate or interest of Landlord in and to the Property or any portion thereof. To the maximum extent permitted by law, before such time as any contractor commences to perform any Alterations, Tenant shall obtain from such contractor (and any subcontractors), and shall furnish to Landlord, a written statement acknowledging the provisions set forth in the immediately preceding sentence and, at Landlord’s request, Tenant shall, before commencing any Alterations, secure additional assurances satisfactory to Landlord in its reasonable discretion protecting Landlord against claims arising out of the furnishing of labor and materials for such Alterations. Tenant agrees to pay promptly when due the entire cost of any Alterations performed by or on behalf of Tenant, and not to cause or permit any liens for labor or materials performed or furnished in connection therewith to attach to all or any part of the Property and to immediately discharge any such liens which may so attach. If, notwithstanding the foregoing, any lien is filed against all or any part of the Property for Alterations claimed to have been done for, or materials claimed to have been furnished to, Tenant or Tenant’s Agents or independent contractors, Tenant, at its sole cost and expense, shall cause such lien to be dissolved within ten (10) Business Days after receipt of notice that such lien has been filed, by the payment thereof or by the filing of a bond sufficient to accomplish the foregoing and shall deliver to Landlord evidence thereof within three (3) days of such dissolution. If Tenant fails to discharge any such lien, Landlord may, at its option, discharge such lien and treat the cost thereof (including Attorneys’ Fees incurred in connection therewith) as Additional Rent payable by Tenant upon demand, it being expressly agreed that such discharge by Landlord shall not be deemed to waive or release a Default of Tenant in not discharging such lien. Tenant shall indemnify and hold Landlord harmless from and against any and all expenses, liens, claims, liabilities and damages based on or arising, directly or indirectly, by reason of the making of any Alterations by or on behalf of Tenant, which obligation shall survive the expiration or earlier termination of this Lease.

 

7.5 Harmonious Labor. In the course of any work being performed by Tenant (including, without limitation, the “field installation” of any Tenant’s Removable Property), Tenant will endeavor, but shall not be obligated, to use labor compatible with that being employed by Landlord for work in the Building or on the Property or other buildings owned by Landlord or its affiliates (which term, for purposes hereof, shall include, without limitation, entities which control or are under common control with or are controlled by Landlord or, if Landlord is a partnership or limited liability company, by any partner or member of Landlord) and not to employ or permit the use of any labor or otherwise take any action which might result in a labor dispute involving personnel providing services in the Building or on the Property pursuant to arrangements made by Landlord.

 

7.6 Telecommunications. Tenant shall not alter, modify, add to or disturb any telecommunications wiring or cabling not exclusively located within the Premises or elsewhere in the Building without Landlord’s prior written consent. Tenant has made all investigations which it deems appropriate and has determined that the telephone riser space, lines, conduit and pathways in the Building core which Landlord is prepared to make available with respect to the Premises is adequate to accommodate Tenant’s telecommunications requirements. Landlord shall have no obligation (and Tenant shall have no right) to increase the capacity of the existing telecommunications riser and distribution facilities and/or cabling in the Building. By its

 

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acceptance of possession of the Premises, Tenant shall be deemed to have agreed that the existing number and type of lines serving the Premises is adequate for Tenant’s Permitted Use. Tenant shall not alter or increase the number and/or type of lines presently allocated to Tenant at the intrabuilding distribution frame (the “IDF”) without the prior written consent of Landlord, in its sole discretion. Any and all telecommunications equipment and cabling serving Tenant and the Premises and connecting to or from the IDF shall be located solely in the Premises, and Tenant shall only be permitted to access the IDF, with the prior written consent of Landlord, for purposes of confirming interconnection with the Building’s riser facilities. Only Landlord and/or Landlord’s approved installers are authorized to install and/or connect additional telecom lines (including, voice, data, video, cable and other) from the minimum point of entry for the Building (the “MPOE”) and/or the IDF to the Premises, and such work, if approved by Landlord, shall be at Tenant’s expense. Tenant shall maintain and repair all telecommunications cabling and wiring within or exclusively serving the Premises. Tenant shall be liable to Landlord for any damage to the telecommunications cabling and wiring in the Building due to the act (negligent or otherwise) of Tenant or any employee, agent or contractor of Tenant. Tenant hereby waives any claim against Landlord for any damages if Tenant’s telecommunications services and/or equipment are in any way interrupted, damaged or otherwise interfered with, except to the extent caused by the negligence or willful or criminal misconduct of Landlord or its Agents; provided that in no event shall any such interruption, damage or interference entitle Tenant to any consequential damages (including damages for loss of business) or relieve Tenant of any of its obligations under this Lease. As of the Effective Date, the following local exchange carriers and competitive alternative telecommunications service providers (collectively “TSPs”) have access to the Building’s riser system and infrastructure and provide services to the Building, including fully distributing fiber throughout the Building: Verizon Enterprise, Verizon FiOS, Lightower and Comcast Business. To the extent permitted by Applicable Law, Landlord reserves the right to limit the number of additional TSPs having access to the Building’s riser system and infrastructure, and Landlord reserves the right to change TSPs providing services to the Building or any portion thereof.

 

ARTICLE 8

ASSIGNMENT AND SUBLETTING

 

8.1 Prohibition. Tenant covenants and agrees that neither this Lease nor the estate hereby granted, nor any interest herein or therein, will be assigned (collaterally, conditionally or otherwise), mortgaged, pledged, encumbered or otherwise transferred, whether voluntarily, involuntarily, by operation of law or otherwise, and that neither the Premises nor the Property, nor any part thereof, will be encumbered in any manner by reason of any act or omission on the part of Tenant, or be sublet (which term, without limitation, shall include granting of concessions, licenses, use and occupancy agreements and the like) in whole or in part, or be offered or advertised for assignment or sublease by Tenant or any person acting on behalf of Tenant, without in each case, the prior written consent of Landlord, which, in the case of a proposed assignment or subletting, shall not be unreasonably withheld, delayed or conditioned. Tenant further agrees that notwithstanding any assignment or sublet of any or all of Tenant’s interest in this Lease (irrespective of whether or not Landlord’s consent is required therefor), Tenant shall remain fully and primarily liable for the payment and performance of its obligations hereunder, and in the case of assignment such liability shall be joint and several with such assignee or assignees from time to time. Any consent by Landlord to a particular assignment,

 

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sublease or occupancy or other act, from time to time, for which Landlord’s consent is required pursuant to this ARTICLE 8 shall not in any way diminish the prohibition stated in this Section 8.1 as to any such further assignment, sublease or occupancy or other act or the continuing liability of the original named Tenant or of any assignee from time to time. Notwithstanding the foregoing, it is agreed that Landlord’s consent to any assignment of this Lease or sublease of any portion of the Premises shall not be considered unreasonably withheld if the proposed assignee or subtenant: (a) is a governmental entity; (b) is an occupant of the Building; (c) whether or not an occupant of the Building, has been in discussions with Landlord regarding the leasing of space within the Building within the preceding six (6) month period; (d) is incompatible with the character of occupancy of the Building; (e) is an entity with which the payment for the sublease or assignment is determined in whole or in part based upon its net income or profits; or (f) would subject the Premises to a use which would (i) involve increased personnel or wear upon the Building, (ii) violate any exclusive right granted to another tenant of the Building, (iii) require any addition to or modification of the Premises or the Building in order to comply with building code or other Applicable Laws, (iv) involve or otherwise require any irregular Alterations or demising of the Premises without Tenant’s express written agreement to restore and/or remove the same upon the expiration of the Term, or (v) involve a violation of the Permitted Use clause of this Lease.

 

Notwithstanding anything in this Lease to the contrary, Tenant may assign this Lease to a successor to Tenant by merger, consolidation or the purchase of all or substantially all of Tenant’s assets, or assign this Lease or sublet all or a portion of the Premises to an Affiliate (as hereinafter defined), without the prior consent of Landlord; provided, that, all of the following conditions are satisfied and Landlord provides Tenant with written notice confirming the same (which Landlord shall be obligated to provide promptly following its verification that each of such conditions are satisfied) (each, a “Permitted Transferee,” and any such assignment or sublease with a Permitted Transferee being a “Permitted Transfer”): (A) no Default of Tenant then exists; (B) Tenant must give Landlord written notice at least ten (10) Business Days prior to the consummation of such transaction; and (C) except in the case of a sublease to an Affiliate, the Credit Requirement (as hereinafter defined) must be satisfied. Tenant’s notice to Landlord shall include information and documentation evidencing that the transaction qualifies as a Permitted Transfer hereunder and that each of the above conditions has been satisfied. If requested by Landlord, Tenant’s successor shall sign and deliver to Landlord a commercially reasonable form of assumption agreement or a sublease agreement with Tenant, as the case may be, and such agreement contains an assumption by such successor of all of the obligations of Tenant under this Lease with respect to such assignment or sublease, as the case may be, including without limitation, the obligation to pay the Rent and other amounts provided for under this Lease in case of an assignment. “Affiliate” shall mean an entity controlled by, controlling or under common control with Tenant. The “Credit Requirement” shall be deemed satisfied if, as of the date immediately preceding the date of the Permitted Transfer, the entity with which Tenant is to merge or consolidate or to which the Lease is otherwise to be assigned or the purchaser of all or substantially all of the assets of Tenant has a tangible net worth (excluding good will and other intangible assets), as determined in accordance with generally accepted accounting principles consistently applied based on certified financial statements for such entity covering the last two (2) fiscal years ending before the transaction, that is not less than the tangible net worth of Tenant as of the date of this Lease. In the event that, at any time after a Permitted Transfer, the Affiliate to which the Permitted Transfer is made ceases to qualify as an

 

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Affiliate of the original Tenant, such event shall be deemed an assignment that is subject to the terms and provisions of this ARTICLE 8.

 

8.2 Additional Events Deemed to be Assignment/Sublet. Without limiting the foregoing, each of the following events shall, for all purposes hereof, be deemed to be an assignment/sublet of this Lease and shall be subject to the provisions of this ARTICLE 8: (i) Tenant entering into any agreement which purports to relieve Tenant from the obligation to pay, or pursuant to which a third party agrees to pay on Tenant’s behalf or to Tenant, all or any portion of the Rent under this Lease; (ii) Tenant entering into any agreement pursuant to which a third party undertakes or is granted by or on behalf of Tenant the right to assign or attempt to assign this Lease or to sublet or attempt to sublet all or any portion of the Premises; or (iii) the transfer (by one or more transfers) of a controlling portion of or interest in (meaning more than fifty percent (50%)) of the voting rights or stock or partnership or membership interests or other evidences of equity interests of Tenant; provided, however, that the transfer of equity interests in Tenant on a nationally recognized public stock exchange shall not be deemed an assignment within the meaning of this ARTICLE 8.

 

8.3 Provisions Void Upon Assignment/Sublet. Upon any assignment, sublease or other transfer requiring Landlord’s consent pursuant to this ARTICLE 8, the following provisions, to the extent contained in this Lease, shall be null and void: (i) any rights or options of Tenant to expand the Premises or to extend the duration of the Term; and (ii) any rights or options to lease additional space in the Building. Notwithstanding any provision herein to the contrary, Tenant shall not assign, sublet or otherwise transfer any of its interest or rights hereunder to any other tenant in the Building or any tenant at other properties owned by Landlord, or affiliates of Landlord, without the prior written consent of Landlord in its sole discretion.

 

8.4 Provisions Incorporated Into Sublease. Any sublease of all or a portion of the Premises shall be deemed to include the following provisions (notwithstanding any provision of the sublease to the contrary) and such provisions shall be deemed included in any Landlord consent agreement: (i) the term of the sublease must end no later than one day before the last day of the Term of this Lease; (ii) no sublease shall be valid, and no sublessee shall take possession of all or any part of the Premises, until a fully executed counterpart of such sublease has been delivered to Landlord; (iii) such sublease is subject and subordinate to this Lease and the provisions hereof; and (iv) in the event of termination of this Lease for any reason or reentry or repossession of the Premises by Landlord, Landlord may, in its sole discretion and option, take over and assume all of the right, title and interest of Tenant, as sublessor under such sublease, whereupon, from and after notice thereof given by Landlord to such sublessee, such sublessee shall attorn to Landlord and pay rent and perform all obligations of such sublessee under such sublease for the full term of such sublease directly to Landlord, such sublease, from and after such notice, constituting a direct lease between Landlord and such sublessee; provided, however, that Landlord shall not (A) be liable for any previous act or omission of Tenant under such sublease; (B) be subject to any credit, claim, defense or offset previously accrued in favor of such sublessee against Tenant; (C) be bound by any previous modification of such sublease made without Landlord’s prior written consent or by any previous prepayment of more than one (1) month’s rent; or (D) be required to account for, or be responsible for, any security deposit not actually delivered to Landlord, and then, only to the extent not previously applied to amounts due. If a Default of Tenant occurs and Landlord elects to take over all of the right, title and

 

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interest of Tenant as sublessor under such sublease and to cause such sublessee to attorn to Landlord, all as provided above, then for the purposes of the foregoing provisions of this ARTICLE 8 only, by execution of a sublease, each such subtenant shall be deemed to have agreed that such subtenant and Landlord shall be in privity of contract with each other.

 

8.5 Collection of Rent. If Tenant assigns its interest under this Lease, or sublets or allows occupancy of the Premises or any part thereof by any party other than Tenant, whether or not in violation of the terms and conditions of this ARTICLE 8, Landlord may, at any time and from time to time, collect rent and other charges from the assignee, sublessee or occupant, and apply the net amount collected to the Rent and other charges herein reserved, but no such assignment, sublease, occupancy, collection or modification of any provisions of this Lease shall be deemed a waiver of this covenant, or the acceptance of the assignee, sublessee or occupant as a tenant or a release of Tenant from the payment and further performance of obligations on the part of Tenant to be performed hereunder.

 

8.6 Excess Payments. If Tenant assigns its interest under this Lease or sublets or otherwise permits occupancy of the Premises or any portion thereof, Tenant shall pay to Landlord, as Additional Rent fifty percent (50%) of all Profits (as defined below). As used herein, the term “Profits” means the amount, if any, by which (a) all compensation received by Tenant as a result of such assignment or sublease, or other occupancy, net of reasonable and market rate expenses actually incurred by Tenant in connection with such assignment or sublease or other occupancy, such expenses to include rent concessions, costs and expenses for tenant improvements, broker’s commissions and reasonable attorney’s fees, with such reasonable expenses to be amortized without interest over the remaining Term (or, with respect to fit-up costs, the useful life thereof, if greater than the remaining Term) (the “Amortized Costs”) and with such Amortized Costs and such excess payments to be recalculated upon any extension or renewal of the Term hereof, exceeds (b) in the case of an assignment, the Rent under this Lease, and in the case of a sublease or other occupancy, the portion of the Rent allocable to the portion of the Premises subject to such subletting or other occupancy. Together with Tenant’s notice and/or request for Landlord’s consent to such assignment or sublet, Tenant shall deliver to Landlord a schedule of anticipated Profits and a schedule of anticipated Amortized Costs. All payments due pursuant to this Section 8.6 shall be made on a monthly basis concurrently with Tenant’s payment of Basic Rent hereunder. Landlord shall have the right, upon five (5) days prior written notice to Tenant, to audit Tenant’s books and records with respect to such excess payments. Notwithstanding the foregoing, the provisions of this Section 8.6 shall impose no obligation on Landlord to consent to any assignment/subletting/occupancy with respect to this Lease.

 

8.7 Payment of Landlord’s Costs. Tenant shall reimburse Landlord on demand, as Additional Rent, for any out-of-pocket costs (including without limitation, reasonable Attorneys’ Fees and expenses) incurred by Landlord in connection with each actual or proposed assignment, sublease, occupancy agreement, or other act described in Section 8.1 or Section 8.2 or other request for approval or execution of any document whatsoever whether or not consummated, including without limitation, the costs of making investigations as to the acceptability of a proposed assignee, sublessee or occupant.

 

8.8 Conditions to Effectiveness of Assignment/Sublet. Any assignment, sublease or

 

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occupancy agreement shall not be valid or binding on Landlord and no assignee, sublessee or occupant shall take possession of all or any portion of the Premises unless and until (i) Tenant, Landlord and the assignee, sublessee, or occupant have each executed a consent agreement, in form and substance satisfactory to Landlord (which consent agreement shall provide, among other things, that said assignee, sublessee or occupant agrees to be independently bound by and upon all of the covenants, agreements, terms, provisions and conditions set forth in this Lease on the part of Tenant to be kept and performed, except in the event of a sublease of only a portion of the Premises, in which case such obligations shall only apply to the portion being sublet, and shall otherwise comply with this ARTICLE 8), (ii) Tenant has delivered to Landlord a fully executed counterpart of such assignment, sublease or occupancy agreement acceptable to Landlord, together with a final schedule of expected Profits and a final schedule of expected Amortized Costs, (iii) Tenant has paid to Landlord any sums required pursuant to Section 8.7 hereof, and (iv) Tenant has delivered to Landlord evidence (in the form of a certificate of insurance using Acord 27 or equivalent) of compliance by the assignee/sublessee with the insurance provisions of this Lease.

 

8.9 Landlord’s Recapture Right. Notwithstanding any provision herein to the contrary, but subject to the terms and provisions hereinbelow, whether or not Landlord’s consent is required therefor, Landlord shall have the right to terminate this Lease (in the event of a proposed assignment) or recapture that portion of the Premises to be subleased (in the event of a proposed sublease) by giving written notice of such election within forty-five (45) days after written notice from Tenant advising Landlord of its desire to enter into an assignment or sublease with respect to this Lease or requesting Landlord’s consent thereto. If Landlord exercises its right to terminate this Lease pursuant to this Section 8.9, then such termination shall be effective as of the date which is sixty (60) days after the date of Landlord’s election as if such date were the last day of the Term of this Lease. If Landlord exercises its recapture rights pursuant to this Section 8.9 in connection with a proposed sublease, this Lease shall be deemed amended to eliminate, for the remainder of the Term, the proposed sublease premises from the Premises as of the date which is sixty (60) days after the date of Landlord’s election to recapture, and thereafter all Rent shall be appropriately prorated to reflect the reduction of the Premises as of said date. With respect to any such recapture, Tenant shall pay all costs reasonably necessary to demise the recaptured space from the remaining Premises in a manner reasonably acceptable to Landlord. Notwithstanding the foregoing to the contrary, when, pursuant to the terms and provisions of this Section 8.9, Landlord shall have the right to terminate this Lease or recapture space, Tenant shall have the right to request an advisory opinion from Landlord as to whether a proposed assignee or subtenant (collectively, a “Proposed Subtenant”) will be acceptable to Landlord, or whether Landlord will exercise its right to terminate this Lease or recapture the space proposed to be subleased. If Tenant shall submit to Landlord a request for an advisory opinion under the provisions of this Section 8.9, Landlord shall respond to Tenant in writing within a reasonable time as to whether the Proposed Subtenant (a) will be acceptable and Tenant shall receive Landlord’s consent for such assignment or subletting or (b) is not acceptable (and the reasons why the Proposed Subtenant is not acceptable, with reasonable specificity) in consequence of which Landlord intends to exercise its termination or recapture rights. After receiving Landlord’s response, Tenant shall have the right (but not the obligation), exercisable by written notice to Landlord given within ten (10) Business Days following Tenant’s receipt of such response from Landlord, to decline to go forward with the proposed assignment or sublet, and in such case(s) Landlord will have no right to terminate this Lease or recapture the space with

 

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respect to such applicable Proposed Subtenant.

 

ARTICLE 9

MAINTENANCE, REPAIRS AND REPLACEMENTS

 

9.1 Landlord’s Obligations. Except as otherwise provided in this Lease, Landlord agrees to keep in good order, condition and repair the roof, Structure (as defined below), the exterior walls of the Building (including exterior window units and glass and exterior doors and related glass) and all shared Building Systems. As used herein, “Structure” means the load bearing portions of the walls, columns, beams, concrete slab, footings and structural beams of the roof, in each case as necessary to preserve the load bearing capacity thereof. Landlord also agrees, to the extent practicable, to (a) keep and maintain all Common Facilities in a good and clean order, condition and repair, (b) keep all access roads, driveways, pedestrian walkways, and parking areas on the Property reasonably free of snow and ice and free of accumulation of dirt and rubbish, as and to the level, extent and scope required by Applicable Laws, and (c) keep and maintain all landscaped areas on the Property in a neat and orderly condition. Notwithstanding the foregoing, Landlord shall have no obligation to maintain, repair or replace (i) Tenant’s Alterations, (ii) Tenant’s Removable Property, (iii) the Tenant’s Work, (iv) any such equipment or Building Systems located within the Premises, or located elsewhere on the Property and serving the Premises exclusively, or (v) any supplemental equipment or Building Systems installed by Tenant or at Tenant’s request or as a result of Tenant’s requirements in excess of building standard design criteria (collectively, “Tenant’s Exclusive Facilities”).

 

Landlord reserves the right, exercisable by itself or its employees, agents or contractors, at any time and from time to time without the same constituting an actual or constructive eviction and without incurring any liability to Tenant therefor or otherwise affecting Tenant’s obligations under this Lease, and, except in the event of an emergency, upon prior written notice to Tenant, to make such changes, alterations, additions, improvements, repairs or replacements in or to the Building (including the Premises) and the fixtures and equipment of the Building, as well as in or to the street entrances, halls, passages, elevators, and stairways of the Building, as it may deem necessary or desirable, and to change the arrangement and/or location of entrances or passageways, doors and doorways, corridors, elevators, stairs, toilets or other public parts of the Building; provided, however, that there be no unreasonable obstruction of the right of access to, or material interference with the use and enjoyment of, the Premises by Tenant, except temporarily during construction or other work. Landlord shall perform such activities in a manner which minimizes disruption of the business operations conducted within the Premises, except that Landlord shall not be obligated to employ labor at so-called “overtime” or other premium pay rates. Nothing contained in this ARTICLE 9 shall be deemed to relieve Tenant of any duty, obligation or liability of Tenant with respect to making or causing to be made any repair, replacement or improvement or complying with any law, order or requirement of any Governmental Authority. Neither the Lease, nor any use by Tenant, shall give Tenant any right or easement or the use of any door or any passage or any concourse connecting with any other building or to any public convenience, and the use of such doors, passages, concourses and such other conveniences may be regulated or discontinued at any time and from time to time by Landlord without notice to Tenant and without affecting the obligations of Tenant hereunder and without Landlord incurring any liability to Tenant therefor.

 

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Landlord shall not be responsible to make any improvements or repairs to the Building other than as expressly provided in this Section 9.1, unless expressly provided otherwise in this Lease. Notwithstanding any provision herein to the contrary, Landlord shall in no event be responsible for (i) the repair of glass in the Premises, the doors (or related glass and finish work) leading to the Premises, or (ii) any condition in the Premises, the Building or the Property caused by any negligent act or omission or willful misconduct of Tenant or any of Tenant’s Agents, invitees or independent contractors.

 

Landlord shall never be liable for any failure to perform any of its maintenance, repair or replacement obligations under this Lease unless Tenant has given written notice to Landlord of the need to perform the same, and Landlord fails to commence to perform the same within a reasonable time thereafter not to exceed thirty (30) days after Landlord’s receipt of such notice; provided, however, that if such failure is of such a nature that Landlord cannot reasonably remedy the same within such thirty (30) day period, then Landlord shall have an additional period to remedy same, so long as Landlord promptly commences (and in any event within such thirty (30) day period) and prosecutes such remedy to completion with diligence and continuity, and further provided that, in the event of any emergency resulting from Landlord’s failure to perform any of its maintenance, repair or replacement obligations under this Lease, Landlord shall, to the extent reasonably practicable under the circumstances and subject to Force Majeure and ARTICLE 14 of this Lease, be obligated to act promptly to address the same following written notice from Tenant, which written notice, in the case of an emergency only, may be provided by Tenant by email to Landlord’s designated property manager for the Building from time to time so long as Tenant provides Landlord with written notice pursuant to the terms and provisions of this Lease immediately following such email notice to Landlord’s designated property manager for the Building who, as of the Effective Date, is Greg Gagne at GGagne@NatDev.com.

 

Subject to Tenant’s obligations pursuant to Section 9.2 below with respect to the Premises and the Tenant’s Exclusive Facilities, Landlord shall, at Landlord’s expense, comply with, and cause the Property, the Building and the Common Facilities generally (but specifically excluding any individual spaces within the Property and the Building that are leased to tenants, subtenants, licensees or any other occupants) to comply with, all Applicable Law and the standards recommended by the local Board of Fire Underwriters applicable to the Building and the current use thereof, and shall, at Landlord’s expense, timely obtain all permits, licenses and the like required thereby.

 

9.2 Tenant’s Obligations.

 

(a)           Except to the extent specifically required of Landlord under Section 9.1, Tenant will keep the Premises (including, without limitation, any Alterations thereto), the Tenant’s Exclusive Facilities and every part thereof neat, clean and sanitary, and will keep its trash free of rodents and vermin and suitably store same at Tenant’s sole cost in the Premises or at other locations in the Building or on the Property designated by Landlord, and in receptacles approved by Landlord, from time to time, and will maintain the Premises (including without limitation, any interior glass, exterior window units and glass and exterior doors and related glass and Tenant’s Exclusive Facilities) in good order, condition and repair, excepting only reasonable wear and tear of the Premises and damage by fire or other casualty or as a consequence of the

 

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exercise of the power of eminent domain; and Tenant shall surrender the Premises and the Tenant’s Exclusive Facilities (with the exception of Tenant’s Removable Property) to Landlord, upon the expiration or earlier termination of the Term, in such condition. Without limitation, Tenant shall, at Tenant’s expense, comply with, and cause the Premises and the Tenant’s Exclusive Facilities to comply with, all Applicable Law and the standards recommended by the local Board of Fire Underwriters applicable to Tenant’s use and occupancy of the Premises, and shall, at Tenant’s expense, timely obtain all permits, licenses and the like required thereby. Subject to Section 13.3 regarding waiver of subrogation, Tenant shall be responsible for the cost of repairs and replacements which may be made necessary by reason of damage to the Building caused by any negligent act or omission or willful misconduct of Tenant, or its Agents, invitees or independent contractors (including any damage by fire or other casualty arising therefrom).

 

(b)           Intentionally Omitted.

 

(c)           If Tenant is required to repair, replace or maintain any portion of the Building pursuant to the provisions of this Lease, and Tenant fails to commence to perform such act within ten (10) days’ after Landlord’s written notice, or fails to complete such act so commenced within thirty (30) days of said notice (except that no notice shall be required in the event of an emergency), Landlord may perform such act (but shall not be required to do so), and the provisions of Section 19.2(f) (“Remedying Defaults”) shall be applicable to the costs thereof. Landlord shall not be responsible to Tenant for any loss or damage whatsoever that may accrue to Tenant’s stock or business or property by reason of Landlord’s performing such acts.

 

ARTICLE 10

UTILITIES AND OTHER SERVICES

 

10.1        Heating, Ventilation and Air-Conditioning. Landlord shall, during Normal Business Hours, furnish heating and cooling as normal seasonal changes may require to provide reasonably comfortable space temperature and ventilation for occupants of the Premises under normal business operation and an electrical load not exceeding the building standard of watts per square foot of rentable area as adjusted by Landlord from time to time. For purposes of this Section 10.1, a “reasonably comfortable space temperature and ventilation for occupants of the Premises under normal business operation” shall mean that Landlord shall be required to maintain a temperature at each work within the Premises station of 71 degrees Fahrenheit during all seasons regardless of outside temperature. If Tenant shall require air conditioning, heating or ventilation outside the hours and days above specified, Landlord may, at its option furnish such service and Tenant shall pay therefor such charges as may from time to time be in effect for the Building upon demand as Additional Rent. In the event Tenant introduces into the Building personnel or equipment which overloads the capacity of any Building System or in any other way interferes with the Building System’s ability to perform adequately its proper functions, supplementary systems may, if and as needed, at Landlord’s option, be provided by Landlord, and the cost of such supplementary systems shall be payable by Tenant to Landlord upon demand as Additional Rent.

 

10.2        Utilities.

 

(a)           General. Tenant, and not Landlord, shall be responsible for arranging

 

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accounts with the providers thereof for the furnishing, and for the cost of, all telephone and other utility services (other than water and sewer services) to the Premises. All such services shall be separately metered and Tenant shall pay all charges therefor directly to the utility provider. Notwithstanding the foregoing, electrical service for the Premises shall be governed by the provisions of subsection (b) below.

 

(b)           Electricity. Tenant, and not Landlord, shall be responsible for arranging accounts with the providers thereof for the furnishing, and for the cost of, electrical service to the Premises. Such electrical service shall be separately metered and Tenant shall pay all charges therefor directly to the utility provider. Tenant agrees that its electrical demand requirements shall not adversely affect the Building’s electrical system and will not exceed the maximum from time to time permitted under Applicable Law, and to repair at Tenant’s sole cost any damage caused to the electrical system caused by Tenant’s failure to observe this requirement.

 

(c)           Capacity. Tenant warrants and represents to Landlord that its electrical demand requirement shall not adversely affect the Building’s electrical system. Tenant’s use of electrical energy in the Premises shall not at any time exceed the maximum capacity permitted from time to time under Applicable Law or the capacity of any of the electrical conductors and equipment in or otherwise serving the Premises and Tenant shall repair any damage caused by Tenant’s failure to observe such requirements. Any additional feeders or risers necessary to supply electricity to the Premises in addition to those originally installed and all other equipment proper and necessary in connection with such feeders or risers, shall be installed by Tenant at its sole cost and expense, provided that such additional feeders and risers and other equipment are permissible under Applicable Law and insurance regulations and the installation of such feeders or risers will not cause permanent damage or injury to the Building or cause or create a dangerous condition or unreasonably interfere with other tenants of the Building. Tenant agrees that it will not make any material alteration or material addition to the electrical equipment and/or appliances in the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld.

 

(d)           No Landlord Liability. Landlord shall not be liable in any way to Tenant for any failure or defect in the supply or character of electrical energy furnished to the Premises by reason of any requirement, act or omission of the public or other utility serving the Building with electricity. Landlord shall not be liable or responsible to Tenant for any loss, damage or expense that Tenant may sustain or incur if the quantity, character or supply of electrical energy is changed or is no longer available or suitable for Tenant’s requirements.

 

(e)           Limitation on Equipment. In order to assure that the capacity of the electrical system of the Building is not exceeded and to avert possible damage thereto, Tenant shall not, without Landlord’s prior consent, connect any fixtures, appliances or equipment to the Building’s electric distribution system other than personal computers, facsimile transceivers, typewriters, pencil sharpeners, adding machines, word and data processors, clocks, radios, hand-held or desk top calculators, dictaphones and other similar small electrical equipment normally found in business offices and not drawing more than the building standard, as adjusted by Landlord from time to time.

 

(f)            Electrical Survey. From time to time during the Term, Landlord shall

 

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have the right: (i) to have an electrical consultant selected by Landlord make a survey of Tenant’s electric usage, the result of which survey shall be conclusively binding upon Landlord and Tenant, and (ii) to install a check-meter at the Premises and confirm the Tenant’s actual electrical usage. In the event that such survey shows that Tenant has exceeded the limits set forth in subsection (e) above then, in addition to any other rights Landlord may have hereunder, Tenant shall, (x) upon demand, reimburse Landlord for the cost of such survey, (y) immediately cease to exceed such limits, and (z) upon demand, reimburse Landlord for the costs of any repairs required due to Tenant’s use in excess of such limits.

 

10.3        Other Services. Landlord shall also provide the following services:

 

(a)           Passenger elevator service via the existing passenger elevator system in the Building in common with Landlord and others entitled thereto.

 

(b)           Water (at temperatures supplied by the city or town in which the Property is located) for lavatory purposes and such sewer service as is available from such city or town. If Tenant uses water for any purpose other than for ordinary lavatory purposes, Landlord may assess a reasonable charge for the additional water so used, or install a water meter to measure Tenant’s water consumption. In the latter event, Tenant shall pay the cost of the meter and the cost of installation thereof as Additional Rent upon demand and shall keep such meter and installation equipment in good working order and repair, and Landlord shall have access to the Premises, from time to time, to reach such meter. Tenant agrees to pay for water consumed, as shown on such meter, together with the sewer charge based on such meter charges, as and when bills are rendered, and in the event Tenant fails timely to make any such payment, Landlord may, at its option, pay such charges and collect the same from Tenant upon demand as Additional Rent.

 

(c)           Cleaning and janitorial services to the Premises on all Business Days, provided the same are kept in order by Tenant, substantially in accordance with the cleaning standards from time to time in effect for the Building. Notwithstanding the foregoing, Tenant shall have the right to hire its own cleaning and janitorial service for the Premises, at Tenant’s sole cost and expense, upon written notice to Landlord, in which case Landlord shall no longer be obligated to provide such cleaning and janitorial service to the Premises.

 

(d)           Landlord and Tenant shall reasonably cooperate in developing a mutually agreeable upgrade and improvement plan to the exterior dumpster and dumpster area outside the southwest corner of the Building.

 

10.4        Interruption of Service. Landlord reserves the right to curtail, suspend, interrupt and/or stop the supply and/or flow of water, sewage, electrical current, cleaning, and other services, and to curtail, suspend, interrupt and/or stop use of entrances and/or lobbies serving as access to the Building, or other portions of the Property, without thereby incurring any liability to Tenant (except as otherwise expressly set forth herein below) when necessary or advisable, in Landlord’s reasonable judgment, by reason of accident or emergency, or for repairs, alterations, replacements or improvements necessary or advisable, in Landlord’s reasonable judgment, or when prevented from supplying such services or use due to any negligent act or omission or willful misconduct of Tenant or Tenant’s Agents, invitees or independent contractors or any person claiming by, through or under Tenant or by Force Majeure. No diminution or abatement

 

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of Basic Rent or Additional Rent, nor any direct, indirect or consequential damages shall be claimed by Tenant as a result of, nor shall this Lease or any of the obligations of Tenant hereunder be affected or reduced by reason of, any such interruption, curtailment, suspension or stoppage in the furnishing of the foregoing services or use, irrespective of the cause thereof. Failure or omission on the part of Landlord to furnish any of the foregoing services or use as provided in this ARTICLE 9 shall not be construed as an eviction of Tenant, actual or constructive, nor entitle Tenant to an abatement of Basic Rent or Additional Rent (except as otherwise expressly set forth hereinbelow), nor render the Landlord liable in damages, nor release Tenant from prompt fulfillment of any of its covenants under this Lease. Notwithstanding the foregoing, subject to Force Majeure and ARTICLE 14 of this Lease, Landlord shall use commercially reasonable efforts to limit the extent, scope and duration of any such suspension, interruption or stoppage of service. Further notwithstanding the foregoing or anything to the contrary contained herein, if (a) any portion of the Premises is rendered untenantable due to any interruption of any Essential Services (as hereinafter defined) required to be provided by Landlord to Tenant pursuant to the terms and provisions of this Lease, in each case to the extent not caused by Force Majeure, casualty, condemnation or the negligent act or omission or willful misconduct of Tenant or any of Tenant’s Agents, and (b) the termination of such untenantable condition is within Landlord’s reasonable control (the conditions described in clauses (a) and (b) hereinabove, a “Landlord Interruption”), then Tenant (as Tenant’s sole and exclusive remedy) shall be entitled to an equitable and proportional abatement of Basic Rent and Additional Rent with respect to the portion of the Premises rendered untenantable for each day of such Landlord Interruption commencing on the first (1st) day following the expiration of the applicable Eligibility Period (as hereinafter defined) and continuing until such Landlord Interruption terminates. As used herein, (i) “Essential Services” shall mean access to the Premises or the Common Facilities, water and sewer service and electricity, but only to the extent that Landlord has an obligation to provide any of the same to Tenant under this Lease, and (ii) “Eligibility Period” shall mean five (5) Business Days following Landlord’s receipt of written notice of such Landlord Interruption from Tenant.

 

ARTICLE 11

REAL ESTATE TAXES

 

11.1        Definitions.

 

(a)           “Tax Year” shall mean a twelve (12) month period commencing on July 1 and falling wholly or partially within the Term;

 

(b)           “Taxes” shall mean: (i) all taxes, assessments (special or otherwise), betterments, levies, fees and all other government levies, exactions and charges of every kind and nature, general and special, ordinary and extraordinary, foreseen and unforeseen, which are, at any time prior to or during the Term, imposed or levied upon or assessed against the Property or any portion thereof, or against any Basic Rent, Additional Rent or other rent of any kind or nature payable to Landlord by anyone on account of the ownership, leasing or operation of the Property and any portion thereof, or which arise on account of or in respect of the ownership, development, leasing, operation or use of the Property or any portion thereof; (ii) all gross receipts taxes or similar taxes imposed or levied upon, assessed against or measured by any Basic Rent, Additional Rent or other rent of any kind or nature or other sum payable to Landlord by anyone on account

 

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of the ownership, development, leasing, operation, or use of the Property or any portion thereof; (iii) all value added, use and similar taxes at any time levied, assessed or payable on account of the ownership, development, leasing operation, or use of the Property or any portion thereof; and (iv) reasonable expenses of any proceeding for abatement of any of the foregoing items included in Taxes; but the amount of special taxes or special assessments included in Taxes shall be limited to the amount of the installment (plus any interest, other than penalty interest, payable thereon) of such special tax or special assessment required to be paid during the year in respect of which such Taxes are being determined. There shall be excluded from Taxes all income, estate, succession, franchise, inheritance and transfer taxes of Landlord; provided, however, that if at any time during the Term the present system of ad valorem taxation of real property shall be changed so that a capital levy, franchise, income, profits, sales, rental, use and occupancy, excise or other tax or charge shall in whole or in part be substituted for, or added to, such ad valorem tax and levied against, or be payable by, Landlord with respect to the Property or any portion thereof, such tax or charge shall be included in the term “Taxes” for the purposes of this Article.

 

(c)           “Base Taxes” shall mean the actual Taxes assessed for the Base Year for Taxes.

 

11.2        Payments on Account of Real Estate Taxes.

 

(a)           In the event that Taxes during any Tax Year shall exceed Base Taxes, Tenant shall pay to Landlord, as Additional Rent, an amount equal to (i) the excess of Taxes for such Tax Year over Base Taxes, multiplied by (ii) Tenant’s Proportionate Share, such amount to be apportioned for any portion of a Tax Year in which the Term Commencement Date falls or the Term expires.

 

(b)           Estimated payments by Tenant for Tenant’s Proportionate Share of Taxes shall be made on the first day of each and every calendar month during the Term of this Lease, in the fashion herein provided for the payment of Basic Rent. Tenant’s monthly estimated payment for Tenant’s Proportionate Share of Taxes shall be sufficient to provide Landlord with a sum equal to 1/12 of Tenant’s required payment for Tenant’s Proportionate Share of Taxes for the then current Tax Year, as reasonably estimated by Landlord from time to time. Once annually, Landlord shall advise Tenant in writing of the amount of the tax bills for the prior Tax Year and the computation of Tenant’s required payment for Tenant’s Proportionate Share of Taxes, and provide Tenant with copies of the relevant tax bills, which Landlord shall use commercially reasonable efforts to provide to Tenant within one hundred twenty (120) days following the expiration of each such Tax Year. If estimated payments for Taxes theretofore made by Tenant for the Tax Year covered by such bills exceed the required payment for Tenant’s Proportionate Share of Taxes for such Tax Year, Landlord shall credit the amount of overpayment against subsequent obligations of Tenant for Tenant’s Proportionate Share of Taxes (or promptly refund such overpayment if requested by Tenant, or if the Term of this Lease has ended and Tenant has no further obligation to Landlord); but if the required payments for Tenant’s Proportionate Share of Taxes for such Tax Year are greater than estimated payments for Tenant’s Proportionate Share of Taxes theretofore made for such Tax Year, Tenant shall pay the difference to Landlord as Additional Rent within thirty (30) days after being so advised by Landlord in writing, and the obligation to make such payment for any period within the Term shall survive expiration or earlier termination of the Term.

 

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11.3        Abatement. If Landlord shall receive any tax refund or reimbursement of Taxes or sum in lieu thereof (a “Tax Refund”) with respect to any Tax Year all or any portion of which falls within the Term, then out of any balance remaining of the Tax Refund, after deducting Landlord’s expenses in obtaining same, Landlord shall pay to Tenant, provided there does not then exist a Default of Tenant, an amount equal to such Tax Refund (exclusive of any interest, and apportioned if such refund is for a Tax Year a portion of which falls outside the Term) multiplied by Tenant’s Proportionate Share; provided, that in no event shall Tenant be entitled to receive more than the payments for Tenant’s Proportionate Share of Taxes made by Tenant for such Tax Year pursuant to subsection (a) of Section 11.2 or to receive any payments or abatement of Basic Rent if Taxes for any year are less than Base Taxes or if Base Taxes are abated. If Landlord shall receive a Tax Refund with respect to the Base Taxes, Landlord shall advise Tenant of the amount thereof and Tenant shall pay to Landlord as Additional Rent, within thirty (30) days after being so advised by Landlord, the difference between the reduced Base Taxes and the amounts previously paid by Tenant for each applicable prior Tax Year in the Term, and the obligation to make such payment for any period within the Term shall survive expiration of the Term.

 

ARTICLE 12

OPERATING EXPENSES

 

12.1        Definitions.

 

(a)           “Operating Year” shall mean each calendar year all or any part of which falls within the Term;

 

(b)           “Base Operating Expenses” shall mean actual Operating Expenses for the Base Year for Operating Expenses; provided however, in the event that any item of Operating Expenses for the Base Year is unusually high due to unusual or extraordinary circumstances or events (for example, an unusually harsh winter which might result in higher than normal heating costs and/or snow and ice removal costs), such item shall be adjusted and reduced to reflect the projected cost of what such item would have been had such unusual or extraordinary circumstances or events not arisen, and such adjusted amount shall be used in determining Operating Expenses for the Base Year; and

 

(c)           “Operating Expenses” shall mean the aggregate costs and expenses incurred by Landlord with respect to the operation, administration, cleaning, repair, replacement, maintenance and management of the Property, including without limitation, as set forth in Exhibit B attached hereto; provided, that, if during any portion of the Operating Year for which Operating Expenses are being computed, less than all of the Building was occupied by tenants or Landlord was not supplying all tenants with the services being supplied under this Lease, actual Operating Expenses incurred shall be extrapolated reasonably by Landlord on an item by item basis to the estimated Operating Expenses that would have been incurred if the Building were fully occupied for such Operating Year and such services were being supplied to all tenants, and such extrapolated amount shall, for the purposes hereof, be deemed to be the Operating Expenses for such Operating Year.

 

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12.2        Tenant’s Payment of Operating Expenses.

 

(a)           In the event that Operating Expenses for any Operating Year shall exceed Base Operating Expenses, Tenant shall pay to Landlord, as Additional Rent, an amount equal to (i) such excess Operating Expenses multiplied by (ii) Tenant’s Proportionate Share attributable to each Operating Year, such amount to be apportioned for any portion of an Operating Year in which the Term Commencement Date falls or the Term expires.

 

(b)           Estimated payments by Tenant for Tenant’s Proportionate Share of Operating Expenses shall be made on the first day of each and every calendar month during the Term of this Lease, in the fashion herein provided for the payment of Basic Rent. The monthly amount so to be paid to Landlord shall be sufficient to provide Landlord by the end of each Operating Year a sum equal to Tenant’s required payment for Tenant’s Proportionate Share of Operating Expenses for such Operating Year, as reasonably estimated by Landlord from time to time during each Operating Year. After the end of each Operating Year, Landlord or Landlord’s Agent shall submit to Tenant a reasonably detailed statement of Operating Expenses for the prior Operating Year, and Landlord or Landlord’s Agent shall certify to the accuracy thereof, which reasonably detailed statement Landlord shall use commercially reasonable efforts to provide to Tenant within one hundred fifty (150) days following the expiration of each such Operating Year. If estimated payments for Tenant’s Proportionate Share of Operating Expenses theretofore made by Tenant for such Operating Year exceed Tenant’s required payment for Tenant’s Proportionate Share of Operating Expenses for such Operating Year according to such statement, Landlord shall credit the amount of overpayment against subsequent obligations of Tenant with respect to Operating Expenses (or promptly refund such overpayment if requested by Tenant or if the Term of this Lease has ended and Tenant has no further obligation to Landlord); but if the required payments for Tenant’s Proportionate Share of Operating Expenses for such Operating Year are greater than the estimated payments (if any) theretofore made by Tenant for Tenant’s Proportionate Share of Operating Expenses for such Operating Year, Tenant shall pay to Landlord, as Additional Rent, within thirty (30) days after being so advised by Landlord in writing, the difference between the estimated and required Operating Expense Payments, and the obligation to make such payment for any period within the Term shall survive the expiration or earlier termination of the Term.

 

ARTICLE 13

INDEMNITY AND INSURANCE

 

13.1        Tenant’s Indemnity. Except to the extent arising from the negligence or willful misconduct of Landlord or Landlord’s Agents, Tenant agrees to indemnify and save harmless Landlord and Landlord’s Agents from and against all claims, losses, cost, damages, liabilities or expenses of whatever nature to the extent arising: (i) from any accident, injury or damage whatsoever to any person, or to the property of any person, occurring in or about the Premises (excluding reasonable wear and tear and damage by casualty or condemnation); (ii) from any accident, injury or damage whatsoever to any person, or to property of any person, occurring outside of the Premises but on or about the Property, where such accident, damage or injury results or is claimed to have resulted from any act or omission on the part of Tenant or Tenant’s Agents, invitees or independent contractors; (iii) from the use or occupancy of the Premises or of any business conducted therein, and, in any case, occurring (A) after the Effective Date until the Expiration Date or earlier termination of the Term of this Lease, and (B) thereafter so long as Tenant is in occupancy of all or any part of the Premises; or (iv) from any default or breach by

 

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Tenant or Tenant’s Agents of the terms or covenants of this Lease. This indemnity and hold harmless agreement shall include indemnity against all losses, costs, damages, expenses and liabilities incurred in or in connection with any such claim or any proceeding brought thereon, and the defense thereof, including, without limitation, reasonable Attorneys’ Fees and costs at both the trial and appellate levels. The provisions of this Section 13.1 shall survive the expiration or earlier termination of the Lease, regardless of the cause of such expiration or earlier termination.

 

13.1.A.   Landlord’s Indemnity. Except to the extent arising from the negligence or willful misconduct of Tenant or Tenant’s Agents, Landlord agrees to indemnify and save harmless Tenant and Tenant’s Agents from and against all claims, losses, cost, damages, liabilities or expenses of whatever nature to the extent arising: (i) from any accident, injury or damage whatsoever to any person, or to the property of any person, to the extent such accident, damage or injury results from any act or omission on the part of Landlord or Landlord’s Agents; or (ii) from any default or breach by Landlord or Landlord’s Agents of the terms or covenants of this Lease. This indemnity and hold harmless agreement shall include indemnity against all losses, costs, damages, expenses and liabilities incurred in or in connection with any such claim or any proceeding brought thereon, and the defense thereof, including, without limitation, reasonable Attorneys’ Fees and costs at both the trial and appellate levels. The provisions of this Section 13.1.A. shall survive the expiration or earlier termination of the Lease, regardless of the cause of such expiration or earlier termination.

 

13.2        Tenant’s Insurance.

 

(a)           Commercial General Liability. Tenant agrees to maintain in full force from the date upon which Tenant first enters the Premises for any reason, throughout the Term of this Lease, and thereafter so long as Tenant is in occupancy of all or any part of the Premises, a policy of commercial General Liability Insurance (using the current Insurance Services Offices (“ISO”) form) under which the insurer agrees to indemnify, defend with counsel reasonably satisfactory to Landlord, and hold Landlord, Landlord’s Managing Agent, and those in privity of estate with Landlord, harmless from and against all cost, expense and/or liability arising out of or based upon any and all claims, accidents, injuries and damages set forth in Section 13.1.

 

(b)           Worker’s Compensation/Employer’s Liability Insurance. If the nature of Tenant’s use of the Premises requires that any or all of its employees be provided coverage under State Worker’s Compensation Insurance or similar statutes, Tenant shall keep in force Worker’s Compensation Insurance or similar statutory coverage containing statutorily prescribed limits and Employer’s Liability with limits of at least $1,000,000.00 Bodily Injury by Accident for Each Accident, $1,000,000.00 Bodily Injury by Disease for Each Person and $1,000,000.00 Bodily Injury by Disease policy limit.

 

(c)           Insureds/Umbrella Policy. With respect to the above-referenced commercial general liability and property insurance policies:

 

(i)            Insured/Named Insureds. Tenant shall be named as an insured and Landlord, Landlord’s Managing Agent and such other persons as are in privity of estate with Landlord as may be set out in a notice to Tenant from time to time, shall be

 

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named as additional insureds; and

 

(ii)           Umbrella Policy. Tenant may satisfy such insurance requirements by including the Premises in a so-called “blanket” and/or “umbrella” insurance policy, provided that the amount of coverage allocated to the Premises shall fulfill the requirements set forth herein. Tenant’s commercial general liability insurance policy shall be written on an “occurrence” basis, and shall be in at least the amounts of the General Liability Insurance specified in Section 1.1 or such greater amounts as Landlord in its reasonable discretion shall from time to time request.

 

(d)           Tenant Casualty Insurance. Tenant agrees to maintain in full force from the date upon which Tenant first enters the Premises for any reason, throughout the Term of this Lease, and thereafter so long as Tenant is in occupancy of all or any part of the Premises, property insurance (ISO Causes of Loss — Special Form) on a “replacement cost” basis with a business income endorsement and a utility services — time element endorsement, insuring Tenant’s Removable Property, the Tenant’s Work and any Alterations made by Tenant pursuant to ARTICLE 7, to the extent that the same have not become the property of Landlord.

 

(e)           Tenant’s General Insurance Requirements. To the extent commercially available, each policy required hereunder shall be (i) issued by a reputable and financially sound, duly licensed and admitted insurance company qualified to do business in the Commonwealth of Massachusetts for the issuance of the type of coverage required by each such policy that shall have a minimum A.M. Best rating of A-/VII and that is otherwise reasonably acceptable to Landlord, and (ii) non-cancelable and non-amendable with respect to Landlord, Landlord’s Managing Agent and Landlord’s said designees without thirty (30) days’ prior written notice to Landlord (a “Cancellation Notice Provision”). In the event such a Cancellation Notice Provision is not commercially available, Tenant shall be obligated to provide Landlord with thirty (30) days’ prior written notice of amendment or cancellation of any policy required hereunder. With respect to all insurance which Tenant is required to carry hereunder, Tenant shall, prior to entering the Premises for any reason, deliver to Landlord a duplicate original policy or a certificate of insurance reasonably satisfactory to Landlord with respect thereto.

 

(f)            Tenant’s Risk. Tenant agrees to use and occupy the Premises, and to use such other portions of the Property as Tenant is herein given the right to use, at Tenant’s own risk. Landlord shall not be liable to Tenant, or Tenant’s Agents, contractors or invitees for any damage, injury, loss, compensation, or claim (including, but not limited to, claims for the interruption of or loss to Tenant’s business) based on, arising out of or resulting from any cause whatsoever, including, but not limited to, repairs to any portion of the Premises or the Property, any fire, robbery, theft, mysterious disappearance and/or any other crime or casualty, the actions of any other tenants of the Building or of any other person or persons, or any leakage in any part or portion of the Premises or the Building, or from water, rain or snow that may leak into, or flow from any part of the Premises or the Building, or from drains, pipes or plumbing fixtures in the Building, except for personal injury or property damage to Tenant, Tenant’s Agents, invitees and/or independent contractors when due to the negligence or willful misconduct of Landlord or Landlord’s Agents. Any goods, property or personal effects stored or placed in or about the Premises shall be at the sole risk of Tenant, and neither Landlord nor Landlord’s insurers shall in any manner be held responsible therefor, except to the extent of any loss or damage arising from

 

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the negligence or willful misconduct of Landlord or Landlord’s Agents. In no event shall Landlord be liable to Tenant for any indirect or consequential damages resulting from Landlord’s acts or omissions.

 

13.3        Waiver of Subrogation. The parties hereto shall each procure an appropriate clause in, or endorsement to, any property insurance policy on the Premises or any personal property, fixtures or equipment located thereon or therein, pursuant to which the insurer waives subrogation or consents to a waiver of right of recovery in favor of either party and its respective Agents. Having obtained such clauses and/or endorsements, each party hereby agrees that it will not make any claim against or seek to recover from the other or its Agents for any loss or damage to its property or the property of others resulting from fire or other perils covered by such property insurance.

 

ARTICLE 14

FIRE, EMINENT DOMAIN, ETC.

 

14.1        Landlord’s Right of Termination. If (a) the Premises or the Building are substantially damaged by fire or casualty (the term “substantially damaged” meaning damage of such a character that the same cannot, in the ordinary course, reasonably be expected to be repaired within sixty (60) days from the time that repair work would commence), or (b) the Premises or Building are damaged and all or a portion of such damage is uninsured, or (c) part of the Building or the Property is taken by any exercise of the right of eminent domain, then Landlord shall have the right to terminate this Lease (even if Landlord’s entire interest in the Premises may have been divested) by giving notice to Tenant of Landlord’s election so to do within ninety (90) days after the occurrence of such casualty or the effective date of such taking, whereupon this Lease shall terminate on the earlier of (i) thirty (30) days after the date of such notice or (ii) the effective date of such taking with the same force and effect as if such date were the date originally established as the expiration date hereof.

 

14.2        Restoration; Tenant’s Right of Termination. If (a) the Premises or the Building are damaged by fire or other casualty, or (b) all or part of the Building is taken by right of eminent domain, and this Lease is not terminated pursuant to Section 14.1, then Landlord shall thereafter use reasonable efforts (to the extent practicable in Landlord’s reasonable determination in light of the nature of any taking or the election by Landlord’s lender to apply all or a portion of any resulting insurance proceeds to the repayment of Landlord’s loan) to restore the Building and the Premises (excluding the Tenant’s Exclusive Facilities and any Alterations) to proper condition for Tenant’s use and occupation, provided that Landlord’s obligation shall be limited to the amount of insurance and eminent domain proceeds available therefor. If, for any reason, such restoration shall not be substantially completed within two hundred ten (210) days after the expiration of the ninety (90) day period referred to in Section 14.1 (which two hundred ten (210) day period may be extended for such periods of time as Landlord is prevented from proceeding with or completing such restoration due to Force Majeure, but in no event for more than an additional sixty (60) days, then Tenant shall have the right to terminate this Lease by giving notice to Landlord thereof within thirty (30) days after the expiration of such period as so extended, provided that such restoration is not completed within such period. This Lease shall cease and come to an end without further liability or obligation on the part of either party (except with respect to obligations which are expressly stated herein to survive a termination) thirty (30)

 

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days after such giving of notice by Tenant unless, within such thirty (30) day period, Landlord substantially completes such restoration, subject to the completion of minor “punch list” items, the completion of which will not materially interfere with Tenant’s business operations. Such right of termination shall be Tenant’s sole and exclusive remedy at law or in equity for Landlord’s failure so to complete such restoration, and time shall be of the essence with respect thereto.

 

14.3        Abatement of Rent. If the Premises or the Building are damaged by fire or other casualty, Basic Rent and Additional Rent payable by Tenant shall abate proportionately for the period during which, by reason of such damage, Tenant’s use of the Premises is prevented, having regard for the extent to which Tenant may be required to discontinue Tenant’s use of all or an undamaged portion of the Premises due to such damage, but such abatement or reduction shall end if and when either (a) Landlord shall have substantially completed sufficient restoration that Tenant is able to use the Premises and the Premises are in substantially the condition it was in prior to such damage (excluding any Tenant’s Exclusive Facilities and Alterations made by Tenant pursuant to ARTICLE 7 and Tenant’s Removable Property), or (b) Tenant shall have commenced occupancy and use of the Building. If the Premises shall be affected by any exercise of the power of eminent domain, Basic Rent and Operating Expenses payable by Tenant shall be justly and equitably abated and reduced according to the nature and extent of the loss of use of the Premises suffered by Tenant. In no event shall Landlord have any liability for damages to Tenant for inconvenience, annoyance, or interruption of business arising from any fire or other casualty or eminent domain.

 

14.4        Condemnation Award. Landlord shall have and hereby reserves and excepts, and Tenant hereby grants and assigns to Landlord, all rights to recover for damages to the Property and the leasehold interest hereby created, and to compensation accrued or hereafter to accrue by reason of any taking, by exercise of the right of eminent domain, and by way of confirming the foregoing, Tenant hereby grants and assigns, and covenants with Landlord to grant and assign to Landlord, all rights to such damages or compensation, and covenants to deliver such further assignments and assurances thereof as Landlord may from time to time request, and Tenant hereby irrevocably appoints Landlord its attorney-in-fact to execute and deliver in Tenant’s name all such assignments and assurances. Nothing contained herein shall be construed to prevent Tenant from prosecuting in a separate condemnation proceeding a claim for the value of any of Tenant’s Removable Property installed in the Premises by Tenant at Tenant’s expense and for relocation expenses, provided that such action shall not affect the amount of compensation otherwise recoverable by Landlord from the taking authority.

 

ARTICLE 15

ADDITIONAL COVENANTS

 

15.1        Tenant.

 

(a)           Estoppel Certificate. Tenant shall, at any time and from time to time, upon not less than ten (10) days prior written notice by Landlord, execute, acknowledge and deliver to Landlord an estoppel certificate containing such statements of fact with respect to this Lease as Landlord reasonably requests and as are customary for inclusion in tenant estoppel certificates.

 

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(b)              Financial Statements. Unless Tenant is a publicly traded entity and such financial statements are available publicly, Tenant shall, without charge therefor, at any time (but not more than once annually unless a Default of Tenant exists and is continuing uncured beyond the expiration of any applicable grace or notice and cure period or the same are requested in connection with a sale, financing, refinancing or recapitalization of the Building), within ten (10) days following a request by Landlord, deliver to Landlord, or to any other party designated by Landlord, a true and accurate copy of Tenant’s most recent financial statements.

 

15.2        Landlord.

 

(a)           Covenant of Quiet Enjoyment. Subject to the terms and conditions of this Lease, on payment of the Rent and observing, keeping and performing all of the other terms and conditions of this Lease on Tenant’s part to be observed, kept and performed, Tenant shall lawfully, peaceably and quietly enjoy the Premises during the Term hereof, without hindrance or ejection by Landlord or any persons lawfully claiming under Landlord to have title to the Premises superior to Tenant. The foregoing covenant of quiet enjoyment is in lieu of any other covenant, express or implied.

 

15.3        Intentionally Omitted.

 

ARTICLE 16

HOLDING OVER; SURRENDER

 

16.1        Holding Over. Any holding over by Tenant after the expiration of the Term of this Lease shall be treated as a daily tenancy at sufferance at a rent equal to one and one-half times the Basic Rent in effect immediately prior to such expiration plus one and one-half times the Additional Rent herein provided (prorated on a daily basis). Tenant shall also pay to Landlord all damages, direct and/or indirect, sustained by reason of any such holding over. In all other respects, such holding over shall be on the terms and conditions set forth in this Lease as far as applicable.

 

16.2        Surrender of Premises. Upon the expiration or earlier termination of the Term, Tenant shall peaceably quit and surrender to Landlord the Premises in the condition in which the same are required to be kept pursuant to Section 9.2, together with all Alterations (except as hereinafter provided), excepting only ordinary wear and use and damage by fire or other casualty for which, under other provisions of this Lease, Tenant has no responsibility to repair or restore. Upon such expiration or earlier termination of the Term, Tenant shall remove from the Premises (i) all of Tenant’s Removable Property, (ii) to the extent specified by Landlord at the time of their installation, all Alterations and all partitions wholly within the Premises unless installed initially by Landlord in preparing the Premises for Tenant’s occupancy, and shall repair any damages to the Premises or the Building caused by such removal, and (iii) all telecommunications lines and cabling installed by Tenant within the Premises or elsewhere in the Building to the extent exclusively serving the Premises. Any Tenant’s Removable Property which shall remain in the Building or on the Premises after the expiration or earlier termination of the Term shall be deemed conclusively to have been abandoned, and either may be retained by Landlord as its property or may be disposed of in such manner as Landlord may see fit, at Tenant’s sole cost and expense.

 

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ARTICLE 17

RIGHTS OF MORTGAGEES

 

17.1        Rights of Mortgagees. This Lease shall be subject and subordinate to all ground leases and/or underlying leases and to all matters currently of record, including without limitation, deeds, easements and land disposition agreements, and the lien and terms of any mortgage, deed of trust or ground lease or similar encumbrance (collectively, with any renewals, modifications, consolidations, replacements and extensions thereof, a “Mortgage,” and the holder thereof from time to time the “Holder”) from time to time encumbering the Premises and to each advance made thereunder, whether executed and delivered prior to or subsequent to the date of this Lease, unless the Holder shall elect otherwise. In the event that any Mortgage is executed and delivered subsequent to the Effective Date, this Lease shall not be subject and subordinate to such Mortgage unless and until Landlord shall have delivered to Tenant a commercially reasonable subordination, non-disturbance agreement executed by the Holder (and the Tenant) in proper form for recording, and on such Holder’s standard form with such commercially reasonable changes thereto as may be agreed to by Tenant and such Holder (an “SNDA”). If this Lease is subordinate to any Mortgage and the Holder or any other party shall succeed to the interest of Landlord (such Holder or other party, a “Successor”), at the election of the Holder or Successor, Tenant shall attorn to the Holder or Successor and this Lease shall continue in full force and effect between the Holder or Successor and Tenant; provided, that, if Tenant and such Successor have executed and delivered an SNDA, then the terms and provisions of such SNDA shall govern such attornment and subordination. Tenant agrees to execute such instruments of subordination or attornment in confirmation of the foregoing agreement as the Holder or Successor reasonably may request, provided that the Holder or Successor have executed and delivered to Tenant an SNDA, and Tenant hereby appoints the Holder or Successor as Tenant’s attorney-in-fact to execute such subordination or attornment agreement upon default of Tenant in complying with the Holder’s or Successor’s request.

 

Notwithstanding the foregoing, Landlord shall obtain and deliver to Tenant an SNDA from the current Holder of the Mortgage encumbering the Building prior to the Delivery Date.

 

17.2        Assignment of Rents. With reference to any assignment by Landlord of Landlord’s interest in this Lease, or the rents payable hereunder, conditional in nature or otherwise, which assignment is made to the Holder of a Mortgage on property which includes the Premises, Tenant agrees that the execution thereof by Landlord, and the acceptance thereof by the Holder of such Mortgage shall never be treated as an assumption by such Holder of any of the obligations of Landlord hereunder unless such Holder shall, by notice sent to Tenant, specifically otherwise elect and, except as aforesaid, such Holder shall be treated as having assumed Landlord’s obligations hereunder only upon foreclosure of such Holder’s Mortgage and the taking of possession of the Premises.

 

17.3        Notice to Holder. After Tenant shall have received written notice from Landlord identifying the Holder of a Mortgage which includes the Premises, no notice from Tenant to Landlord alleging any default by Landlord shall be effective unless and until a copy of the same is given to such Holder (provided Tenant shall have been furnished with the name and address of such Holder), and the curing of any of Landlord’s defaults by such Holder shall be treated as performance by Landlord.

 

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ARTICLE 18

SECURITY DEPOSIT

 

18.1        Letter of Credit. Concurrently with the execution hereof, Tenant agrees that is shall deliver to Landlord a Letter of Credit in accordance with the provisions of this Section 18.1.

 

(a)              Letter of Credit Requirements. As used herein the term “Letter of Credit” means an unconditional irrevocable standby commercial letter of credit that is: (i) in the amount of the Security Deposit set forth in Section 1.1, (ii) issued by a reputable domestic commercial bank or other financial institution, the long-term debt of which is rated at least A or the equivalent thereby Standard & Poors Ratings Group, or A or the equivalent thereof by Moody’s Investors Services, Inc., and having capital and surplus in excess of Five Hundred Million and 00/100 Dollars ($500,000,000.00), (iii) either (1) binding for the period through sixty (60) days after the expiration of the Term hereof, as the same may be extended, or (2) binding for one (1) year and automatically renewed annually unless the issuer of such Letter of Credit provides to Landlord a written notice of non-renewal at least thirty (30) days prior to the expiration of such one-year period, and (iv) substantially in the form attached hereto as Exhibit F. The amount of the Letter of Credit shall be reduced by an amount corresponding to the reduction in the Security Deposit as provided below in this ARTICLE 18, as and when the Security Deposit amount is reduced, or Tenant shall cause a replacement Letter of Credit for the reduced amount to be issued.

 

(b)              Substitute Letter of Credit. In the event that (i) any issuer of a Letter of Credit gives notice to Landlord of the expiration or non-renewal of such Letter of Credit, or (ii) evidence of the renewal of any Letter of Credit is not delivered to Landlord at least thirty (30) days prior to the scheduled expiration of said Letter of Credit (the first date on which either of such events occurs being referred to as, the “Deadline”), Tenant shall, within ten (10) days of the Deadline, deliver to Landlord a substitute Letter of Credit, satisfying the requirements set forth above. If Tenant fails to substitute a new Letter of Credit by such date, Landlord shall have the right, without notice or demand, to draw on the Letter of Credit currently in its possession and hold and apply the cash proceeds thereof as the Security Deposit as set forth in this Lease. In addition, if the credit rating, as determined by any commercially recognized rating agency, of the issuer of the Letter of Credit falls from the level of its credit rating on the date of this Lease, Landlord shall have the right to require Tenant to provide a substitute Letter of Credit from an issuer with a credit rating equal to the credit rating of such original issuer on the date of this Lease. If Tenant fails to deliver to Landlord a substitute Letter of Credit, satisfying the requirements set forth above, Landlord shall have the right, without notice or demand, to draw on the Letter of Credit currently in its possession and hold and apply the cash proceeds thereof as the Security Deposit as set forth in this Lease.

 

(c)              Drawing Upon Letter of Credit. From and after the occurrence of any Default of Tenant hereunder, Landlord may draw in full, or in part from time to time, upon the Letter of Credit and immediately apply all or a portion of the cash proceeds thereof to remedy said Default of Tenant, and any cash proceeds not so immediately applied shall be held by Landlord and shall constitute a Security Deposit hereunder, and Tenant hereby grants to Landlord a first priority security interest therein.

 

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In the event a petition is filed by the Tenant seeking an adjudication of itself as bankrupt or insolvent under any bankruptcy law or similar law or if any petition shall be filed or action taken to declare Tenant a bankrupt or to delay, reduce or modify Tenant’s debts or obligations or to reorganize or modify Tenant’s capital structure or indebtedness or to appoint a trustee, receiver or liquidator of Tenant or if an involuntary petition in bankruptcy is filed against Tenant, Landlord may draw against the Letter of Credit for any amount up to the full amount thereof paid by Tenant to Landlord within the applicable preference period on account of its obligations under this Lease. The amount so drawn shall be held by Landlord in a segregated account until expiration of the preference period. If a preference claim is brought against Landlord requiring Landlord to repay to the debtor’s estate the amount of any payments made by Tenant to Landlord as a preference, Landlord may reimburse itself out of the funds drawn under the Letter of Credit and so held the amount of the preference payments that Landlord is required to pay back to the debtor’s estate, together with reasonable attorneys’ fees and disbursements incurred by Landlord in connection with any claim by the debtor’s estate for such payment. Any amounts drawn down in accordance with this subparagraph that are unexpended after expiration of the preference period shall be paid over to Tenant, or its estate, as applicable.

 

18.2        Security Deposit. Any Security Deposit which Landlord may, from time to time, receive pursuant to this Lease shall secure the full and prompt payment and performance of Tenant’s obligations under this Lease.

 

18.3        Application of Security Deposit. Any Security Deposit shall be held and applied by the Landlord as set forth in this Lease. Landlord shall hold any Security Deposit (or so much thereof as has not been applied by Landlord pursuant hereto) until that date which is sixty (60) days following the expiration or earlier termination of the Term as security for the payment and performance of all of Tenant’s obligations hereunder. Landlord shall have the right from time to time, without prejudice to any other remedy Landlord may have, to apply such Security Deposit, or any part thereof, to Landlord’s damages arising from, or to cure, any Default of Tenant. If Landlord shall so apply any or all of such Security Deposit, Tenant shall immediately upon demand deposit with Landlord the amount so applied to restore the Security Deposit to the full original amount of the Letter of Credit. Landlord shall return the Security Deposit, or so much thereof as shall not have theretofore been applied in accordance with the terms of this Section, to Tenant on or before that date which is sixty (60) days following the expiration or earlier termination of the Term of this Lease and surrender of possession of the Premises by Tenant to Landlord at such time, provided that there is then existing no Default of Tenant (nor any circumstance which, with the passage of time or the giving of notice, or both, would constitute a Default of Tenant). Landlord shall have no obligation to pay interest on the Security Deposit and may commingle the same with Landlord’s other funds. If Landlord assigns Landlord’s interest under this Lease, the Security Deposit, or any part thereof not previously applied, may be turned over by Landlord to Landlord’s assignee, and, if so turned over, Tenant agrees to look solely to such assignee for proper application of the Security Deposit in accordance with the terms of this Lease.

 

Notwithstanding any provision herein to the contrary, following the one (1) year anniversary of the Rent Commencement Date and no more often than once during any twelve (12) consecutive month period thereafter (each, a “Security Deposit Year”), so long as: (a) there has been no Default of Tenant hereunder; (b) this Lease is then in full force and effect; and

 

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(c) Tenant’s financial statements certified by Tenant’s Principal Financial Officer pursuant to a so-called “Section 302 Principal Financial Officer Certification Letter” (“Qualified Financial Statements”) evidence that the Security Deposit Reduction Condition (as defined below) for such applicable Security Deposit Year has been satisfied, then the Security Deposit shall promptly be reduced by an amount equal to $100,000.00 and Tenant may thereafter deliver to Landlord a substitute Letter of Credit, conforming to the requirements hereof, in the sum of such reduced amount, whereupon Landlord shall surrender to Tenant the Letter of Credit being so replaced; provided, however, that (i) in no event shall the Security Deposit hereunder ever be less than $200,000.00, and (ii) upon the occurrence of any Default of Tenant hereunder prior to any such reduction, Tenant shall not be entitled to any reduction in the amount of the Security Deposit below its then current level. Upon Landlord’s receipt of a substitute Letter of Credit in compliance with this ARTICLE 18, Landlord agrees not to draw upon the Letter of Credit being so replaced unless a Default of Tenant occurs hereunder.

 

As used herein, the term “Security Deposit Reduction Condition” means that Tenant has delivered to Landlord Qualified Financial Statements evidencing that Tenant is then holding the greater of (i) $50,000,000.00 in unencumbered, unrestricted, cash, or (ii) an amount that equals no less than the amount required by Tenant to pay its then current total annual operating costs as shown on such Qualified Financial Statements.

 

The Holder of a Mortgage shall not be responsible to Tenant for the return or application of any such Letter of Credit and/or Security Deposit, whether or not it succeeds to the position of Landlord hereunder, unless such Letter of Credit and/or Security Deposit shall have been transferred by Landlord to such Holder.

 

ARTICLE 19

DEFAULT; REMEDIES

 

19.1        Tenant’s Default.

 

(a)           If at any time subsequent to the date of this Lease any one or more of the following events (each a “Default of Tenant”) shall happen:

 

(i)            Tenant shall fail to pay the Basic Rent or Additional Rent hereunder when due and such failure shall continue for five (5) days after written notice to Tenant from Landlord; or

 

(ii)           Tenant shall fail to timely bond off or discharge a lien in accordance with Section 7.4 herein; or

 

(iii)          Tenant shall fail to timely deliver an estoppel certificate in accordance with Section 15.1(a) herein; or

 

(iv)          Any insurance required to be maintained by Tenant pursuant to this Lease shall be canceled or terminated or shall expire or be reduced or materially changed (or any failure of Tenant to provide notice of amendment or cancellation in accordance with Section 13.2(e) herein); or

 

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(v)           Tenant shall neglect or fail to perform or observe any other covenant herein contained on Tenant’s part to be performed or observed and Tenant shall fail to remedy the same within thirty (30) days after written notice to Tenant specifying such neglect or failure; provided, however that if such failure is of such a nature that Tenant cannot reasonably remedy the same within such thirty (30) day period, then Tenant shall have an additional period, not to exceed ninety (90) days after the notice described in this subsection (v), to remedy same, so long as Tenant promptly commences (and in any event within such thirty (30) day period) and prosecutes such remedy to completion with diligence and continuity; or

 

(vi)          Tenant’s leasehold interest in the Premises shall be taken on execution or by other process of law directed against Tenant; or

 

(vii)         Tenant shall make an assignment for the benefit of creditors or shall be adjudicated insolvent, or shall file any petition or answer seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself under any present or future Federal, State or other statute, law or regulation for the relief of debtors (other than the Bankruptcy Code, as hereinafter defined), or shall seek or consent to or acquiesce in the appointment of any trustee, receiver or liquidator of Tenant or of all or any substantial part of its properties, or shall admit in writing its inability to pay its debts generally as they become due; or

 

(viii)        An Event of Bankruptcy (as hereinafter defined) shall occur with respect to Tenant; or

 

(ix)          A petition shall be filed against Tenant under any law (other than the Bankruptcy Code) seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any present or future Federal State or other statute, law or regulation and shall remain undismissed or unstayed for an aggregate of sixty (60) days (whether or not consecutive), or if any trustee, conservator, receiver or liquidator of Tenant or of all or any substantial part of its properties shall be appointed without the consent or acquiescence of Tenant and such appointment shall remain unvacated or unstayed for an aggregate of sixty (60) days (whether or not consecutive); or

 

(x)           If on two separate occasions occurring in any consecutive 365-day period: (x) Tenant shall fail to pay the Basic Rent or Additional Rent hereunder when due or shall fail to perform or observe any other covenant herein contained on Tenant’s part to be performed or observed and Tenant shall cure any such failure within the applicable grace or notice and cure period set forth in clauses (i) or (ii) above; or (y) a Default of Tenant of the kind set forth in clauses (i) or (ii) above shall occur and Landlord shall, in its sole discretion, permit Tenant to cure such Default of Tenant after the applicable grace or notice and cure period has expired; and the same or a similar failure shall occur again within the next 365 days (whether or not such similar failure is cured within any applicable grace or notice and cure period); or

 

(xi)          The occurrence of any of the events described in subsections

 

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(a)(vii)-(a)(ix) with respect to any guarantor of all or any portions of Tenant’s obligations under this Lease;

 

then in any such case Landlord may terminate this Lease as hereinafter provided.

 

(b)           For purposes of subsection (a)(viii) above, an “Event of Bankruptcy” means the filing of a voluntary petition by Tenant, or the entry of an order for relief against Tenant, under Chapter 7, 11, or 13 of the Bankruptcy Code, and the term “Bankruptcy Code” means 11 U.S.C. §101, et seq. If an Event of Bankruptcy occurs, then the trustee of Tenant’s bankruptcy estate or Tenant as debtor-in-possession may (subject to final approval of the court) assume this Lease, and may subsequently assign it, only if it does the following within sixty (60) days after the date of the filing of the voluntary petition, or the entry of the order for relief (or such additional time as a court of competent jurisdiction may grant, for cause, upon a motion made within the original sixty-day period):

 

(i)            files a motion to assume the Lease with the appropriate court;

 

(ii)           satisfies all of the following conditions, which Landlord and Tenant acknowledge to be commercially reasonable:

 

(A)          cures all Defaults of Tenant under this Lease or provides Landlord with Adequate Assurance (as defined below) that it will (x) cure all monetary Defaults of Tenant hereunder within ten (10) days from the date of the assumption; and (y) cure all nonmonetary Defaults of Tenant hereunder within thirty (30) days from the date of the assumption;

 

(B)          compensates Landlord and any other person or entity, or provides Landlord with Adequate Assurance that within ten (10) days after the date of the assumption, it will compensate Landlord and such other person or entity, for any pecuniary loss that Landlord and such other person or entity incurred as a result of any Default of Tenant, the trustee, or the debtor-in-possession;

 

(C)          provides Landlord with Adequate Assurance of Future Performance (as defined below) of all of Tenant’s obligations under this Lease; and

 

(D)          delivers to Landlord a written statement that the conditions herein have been satisfied.

 

(c)           For purposes only of the foregoing subsection (b), and in addition to any other requirements under the Bankruptcy Code, any future federal bankruptcy law and Applicable Law, “Adequate Assurance” means at least meeting the following conditions, which Landlord and Tenant acknowledge to be commercially reasonable:

 

(i)            entering an order segregating sufficient cash to pay Landlord and any other person or entity under subsection (b) above; and

 

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(ii)           granting to Landlord a valid lien and security interest (in form acceptable to Landlord) in all property comprising the Tenant’s “property of the estate,” as that term is defined in Section 541 of the Bankruptcy Code, which lien and security interest secures the trustee’s or debtor-in-possession’s obligation to cure the monetary and nonmonetary defaults under the Lease within the periods set forth in subsection (b) above.

 

(d)           For purposes only of subsection (b) above, and in addition to any other requirements under the Bankruptcy Code, any future federal bankruptcy law and other Applicable Law, “Adequate Assurance of Future Performance” means at least meeting the following conditions, which Landlord and Tenant acknowledge to be commercially reasonable:

 

(i)            the trustee or debtor-in-possession depositing with Landlord, as security for the timely payment of rent and other monetary obligations, an amount equal to the sum of two (2) months’ Basic Rent plus an amount equal to two (2) months’ installments for Taxes and Operating Expenses and such other Additional Rent as may then be due and payable hereunder;

 

(ii)           the trustee or the debtor-in-possession agreeing to pay in advance, on each day that the Basic Rent is payable, the monthly installments on account of Additional Rent;

 

(iii)          the trustee or debtor-in-possession providing adequate assurance of the source of the rent and other consideration due under this Lease; and

 

(iv)          Tenant’s bankruptcy estate and the trustee or debtor-in-possession providing Adequate Assurance that the bankruptcy estate (and any successor after the conclusion of the Tenant’s bankruptcy proceedings) will continue to have sufficient unencumbered assets after the payment of all secured obligations and administrative expenses to assure Landlord that the bankruptcy estate (and any successor after the conclusion of the Tenant’s bankruptcy proceedings) will have sufficient funds to fulfill Tenant’s obligations hereunder.

 

(e)           If the trustee or the debtor-in-possession assumes the Lease under subsection (b) above and applicable bankruptcy law, it may assign its interest in this Lease only if the proposed assignee first provides Landlord with Adequate Assurance of Future Performance of all of Tenant’s obligations under the Lease, and if Landlord determines, in the exercise of its reasonable business judgment, that the assignment of this Lease will not breach any other lease, or any mortgage, financing agreement, or other agreement relating to the Property by which Landlord is then bound or to which the Property is then subject (and Landlord shall not be required to obtain consents or waivers from any third party required under any lease, mortgage, financing agreement, or other such agreement by which Landlord is then bound).

 

(f)            For purposes only of subsection (e) above, and in addition to any other requirements under the Bankruptcy Code, any future federal bankruptcy law and other Applicable Law, “Adequate Assurance of Future Performance” means at least the satisfaction of the following conditions, which Landlord and Tenant acknowledge to be commercially reasonable:

 

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(i)            the proposed assignee submitting a current financial statement, audited by a certified public accountant, that allows a net worth and working capital in amounts determined in the reasonable business judgment of Landlord to be sufficient to assure the future performance by the assignee of Tenant’s obligation under this Lease; and

 

(ii)           if requested by Landlord in the exercise of its reasonable business judgment, the proposed assignee obtaining a guarantee (in form and substance satisfactory to Landlord) from one or more persons who satisfy Landlord’s standards of creditworthiness.

 

19.2        Landlord’s Remedies.

 

(a)           Upon the occurrence of a Default of Tenant, Landlord may terminate this Lease by written notice to Tenant, specifying a date not less than five (5) days after the giving of such notice on which this Lease shall terminate and this Lease shall come to an end on the date specified therein as fully and completely as if such date were the date herein originally fixed for the expiration of the Term of this Lease, and Tenant will then quit and surrender the Premises to Landlord in the condition required in Section 9.2, but Tenant shall remain liable as hereinafter provided.

 

(b)           If this Lease shall have been terminated as provided in this Section 19.2, then Landlord may re-enter the Premises, either by summary proceedings, ejectment or otherwise, and remove and dispossess Tenant and all other persons and any and all property from the same.

 

(c)           If this Lease shall have been terminated as provided in this Section 19.2, Tenant shall pay Rent hereunder up to the time of such termination, and thereafter Tenant, until the end of what would have been the Term of this Lease in the absence of such termination, and whether or not the Premises shall have been relet, shall be liable to Landlord for, and shall pay to Landlord, (x) the Rent due hereunder if such termination had not occurred, less the net proceeds, if any, of any reletting of the Premises, after deducting all expenses in connection with such reletting, including, without limitation, all repossession costs, brokerage commissions, legal expenses, reasonable Attorneys’ Fees, advertising, expenses of employees, alteration costs and expenses of preparation for such reletting; and (y) if this Lease provides that Tenant was entitled to occupy the Premises for any period of time without paying Basic Rent, the amount of Basic Rent that Tenant would have paid for any such period. Tenant shall pay the portion of such damages referred to above to Landlord monthly on the days which the Basic Rent would have been payable hereunder if this Lease had not been terminated, and Tenant shall pay the portion of such damage referred to in clause (y) above to Landlord upon such termination.

 

(d)           At any time after termination of this Lease as provided in this Section 19.2, except to the extent that Landlord shall have collected any damages pursuant to subsection (c) above and in lieu of the extent of such damages, Tenant, at Landlord’s election, shall pay to Landlord as liquidated damages: an amount equal to the excess, if any, of the Rent (including Taxes, Operating Expenses and other charges payable under this Lease) which would be payable hereunder from the date of such demand (assuming that annual payments by Tenant on account of Taxes and Operating Expenses would be the same as the payments required for the immediately

 

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preceding Operating Year or Tax Year for what would be the then unexpired Term of this Lease as if the same remained in effect), over the then fair market rental value of the Premises for the same period.

 

(e)           In case of any Default of Tenant, re-entry, expiration and dispossession by summary proceedings or otherwise, so long as Landlord has exercised its right to terminate this Lease, Landlord shall be obligated to mitigate its damages and to use all commercially reasonable efforts to relet the Premises or any part or parts thereof, either in the name of Landlord or otherwise, for a term or terms which may at Landlord’s option shall be equal to, less than, or in excess of, the period which would otherwise have constituted the balance of the Term of this Lease and may grant concessions or free rent to the extent that Landlord considers necessary or advisable to relet the same, and (ii) make such alterations, repairs and decorations in the Premises as Landlord reasonably considers necessary or advisable for the purpose of reletting the Premises; and the making of such alterations, repairs and decorations shall not operate or be construed to release Tenant from liability hereunder as aforesaid. Tenant hereby expressly waives any and all rights of redemption granted by or under Applicable Law in the event of Tenant being evicted or dispossessed, or in the event of Landlord obtaining possession of the Premises, by reason of the violation by Tenant of any of the terms, covenants or conditions of this Lease.

 

(f)            Landlord shall have the right, but not the obligation to pay such sums or do any act which requires the expenditure of monies which may be necessary or appropriate by reason of the failure or neglect of Tenant to perform any of the provisions of this Lease, and in the event of the exercise of such right by Landlord, Tenant agrees to pay to Landlord forthwith upon demand all such sums, together with interest thereon per annum at a rate equal to the greater of three percent (3%) over the prime rate in effect from time to time at Bank of America or fifteen percent (15%) (but in no event greater than the maximum lawful rate), as Additional Rent. Any payment of Basic Rent and Additional Rent payable hereunder not paid when due shall, at the option of Landlord, bear interest per annum at a rate equal to the greater of three percent (3%) over the prime rate in effect from time to time at Bank of America or fifteen percent (15%) (but in no event greater than the maximum lawful rate) from the due date thereof and shall be payable forthwith on demand by Landlord as Additional Rent.

 

19.3        Additional Rent. As referred to in Section 19.1 and notwithstanding any other provision of this Lease to the contrary, if Tenant shall fail to pay when due Additional Rent, Landlord shall have the same rights and remedies as Landlord has hereunder for Tenant’s failure to pay Basic Rent.

 

19.4        Remedies Cumulative. The specified remedies to which Landlord may resort hereunder are not intended to be exclusive of any remedies or means of redress to which Landlord may at any time be entitled lawfully, and Landlord may invoke any remedy (including the remedy of specific performance) allowed at law or in equity as if specific remedies were not herein provided for.

 

19.5        Attorneys’ Fees. Tenant shall pay to Landlord reasonable Attorneys’ Fees and expenses incurred by or on behalf of Landlord in enforcing its rights hereunder or occasioned by any Default of Tenant.

 

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19.6        Waiver.

 

(a)           Failure on the part of Landlord or Tenant to complain of any action or non-action on the part of the other, no matter how long the same may continue, shall never be a waiver by Tenant or Landlord of any of their respective rights hereunder. Further, no waiver at any time of any of the provisions hereof by Landlord or Tenant shall be construed as a waiver of any of the other provisions hereof, and a waiver at any time of any of the provisions hereof shall not be construed as a waiver at any subsequent time of the same provisions. The consent or approval of Landlord or Tenant to or of any action by the other requiring such consent or approval shall not be construed to waive or render unnecessary Landlord’s or Tenant’s consent or approval to or of any subsequent similar act by the other.

 

(b)              No payment by Tenant, or acceptance by Landlord, of a lesser amount than that due from Tenant to Landlord hereunder shall be treated otherwise than as a payment on account of the earliest installment of any payment due from Tenant hereunder. The acceptance by Landlord of a check for a lesser amount with an endorsement or statement thereon, or upon any letter accompanying such check, that such lesser amount is payment in full, shall be given no effect, and Landlord may accept such check without prejudice to any other rights or remedies which Landlord may have against Tenant.

 

19.7        Landlord’s Default. Landlord shall in no event be in default under this Lease unless Landlord shall neglect or fail to perform any of its obligations hereunder and shall fail to remedy the same within thirty (30) days after notice to Landlord specifying such neglect or failure, or if such failure is of such a nature that Landlord cannot reasonably remedy the same within such thirty (30) day period, Landlord shall fail to commence promptly (and in any event within such thirty (30) day period) to remedy the same and to prosecute such remedy to completion with diligence and continuity.

 

19.8        Tenant’s Remedies. In the event of Landlord’s default under this Lease, and failure to cure same within any applicable notice and cure period, Tenant shall have the remedies available to it at law and in equity, as the same may be limited or waived by the terms hereof. Tenant acknowledges that its covenant to pay Basic Rent and Additional Rent hereunder is independent of Landlord’s obligations hereunder, and that in the event that Tenant shall have a claim against Landlord, Tenant shall not have the right to deduct the amount allegedly owed to Tenant from any Basic Rent or Additional Rent due hereunder except as may be specifically provided for in this Lease, it being understood that Tenant’s sole remedy for recovering upon such claim shall be to bring an independent legal action against Landlord.

 

19.9        Landlord’s Liability.

 

(a)           General. Tenant agrees to look solely to Landlord’s equity interest in the Property at the time of recovery for recovery of any judgment against Landlord, and agrees that neither Landlord nor any Successor shall be personally liable for any such judgment, or for the payment of any monetary obligation to Tenant. The provision contained in the foregoing sentence is not intended to, and shall not, limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord or any Successor, or to take any action not involving the personal liability of Landlord or any Successor to respond in monetary damages from Landlord’s

 

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or any Successor’s assets other than Landlord’s or any Successor’s equity interest in the Property. Notwithstanding any provision herein to the contrary, Landlord shall never be liable to Tenant for any loss of business or any other indirect or consequential damages suffered by Tenant from whatever cause.

 

(b)           Refusal to Give Consent. Where provision is made in this Lease for Landlord’s consent, and Tenant shall request such consent, and Landlord shall fail or refuse to give such consent, Tenant shall not be entitled to any damages for any withholding by Landlord of its consent, it being intended that Tenant’s sole remedy shall be an action for specific performance or injunction, and that such remedy shall be available only in those cases where Landlord has expressly agreed in writing not to unreasonably withhold its consent. Furthermore, whenever Tenant requests Landlord’s consent or approval (whether or not provided for herein), Tenant shall pay to Landlord, on demand, as Additional Rent, any reasonable expenses incurred by Landlord (including without limitation reasonable Attorneys’ Fees and costs, if any) in connection therewith.

 

(c)           Transfer of Title. In no event shall the acquisition of Landlord’s interest in the Property by a purchaser which, simultaneously therewith, leases Landlord’s entire interest in the Property back to the seller thereof be treated as an assumption by operation of law or otherwise, of Landlord’s obligations hereunder, but Tenant shall look solely to such seller-lessee, and its successors from time to time in title, for performance of Landlord’s obligations hereunder. In any such event, this Lease shall be subject and subordinate to the lease to such purchaser. For all purposes, such seller-lessee, and its successors in title, shall be the Landlord hereunder unless and until Landlord’s position shall have been assumed by such purchaser-lessor. Except as provided in this subsection (c), upon any transfer of title to the Property by Landlord, thenceforth Landlord shall be entirely freed and relieved from the performance and observance of all covenants, obligations and liability under this Lease.

 

ARTICLE 20

MISCELLANEOUS PROVISIONS

 

20.1        Brokerage. Tenant warrants and represents that Tenant has dealt with no broker in connection with the consummation of this Lease other than Broker and Landlord shall be obligated to pay a brokerage fee to Broker if, as, and when required by agreement between Landlord and Broker. In the event of any brokerage claims against Landlord predicated upon prior dealings with Tenant by a broker or other person other than Broker, Tenant agrees to defend the same and indemnify and hold harmless Landlord against any such claim.

 

20.2        Invalidity of Particular Provisions. If any term or provision of this Lease, or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

 

20.3        Provisions Binding, Etc. Except as herein otherwise provided, the terms hereof shall be binding upon and shall inure to the benefit of the successors and assigns, respectively, of

 

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Landlord and Tenant (except in the case of Tenant, only such successors and assigns as may be permitted hereunder) and, if Tenant shall be an individual, upon and to his heirs, executors, administrators, successors and permitted assigns. Each term and each provision of this Lease to be performed by Tenant shall be construed to be both a covenant and a condition. Any reference in this Lease to successors and assigns of Tenant shall not be construed to constitute a consent by Landlord to such assignment by Tenant.

 

20.4        Notice. All notices or other communications required or permitted hereunder shall be in writing and shall be deemed duly given if delivered in person (with receipt therefor), if sent by reputable overnight delivery or courier service (e.g., Federal Express) providing for receipted delivery, or if sent by certified or registered mail, return receipt requested, postage prepaid, to the Landlord’s Address and the Tenant’s Address as set forth in Section 1.1 hereof. Receipt of notice or other communication shall be conclusively established by either (i) return of a return receipt or delivery receipt indicating that the notice has been delivered; or (ii) return of the letter containing the notice with an indication from the courier or postal service that the addressee has refused to accept delivery of the notice. Either party may change its address for the giving of notices by notice to the other party given in accordance with this Section 20.4.

 

20.5        When Lease Becomes Binding; Entire Agreement; Modification. The submission of this document for examination and negotiation does not constitute an offer to lease, or a reservation of, or option for, the Premises, and this document shall become effective and binding only upon the execution and delivery hereof by both Landlord and Tenant. This Lease is the entire agreement between the parties and expressly supersedes any negotiations, considerations, representations and understandings and proposals or other written documents relating hereto. This Lease may be modified or altered only by written agreement between Landlord and Tenant, and no act or omission of any Agent of Landlord shall alter, change or modify any of the provisions hereof.

 

20.6        Headings and Interpretation of Sections. The article, section and paragraph headings throughout this Lease are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Lease. The provisions of this Lease shall be construed as a whole, according to their common meaning (except where a precise legal interpretation is clearly evidenced), and not for or against either party. Use in this Lease of the words “including,” “such as,” or words of similar import, when followed by any general term, statement or matter, shall not be construed to limit such term, statement or matter to the specified item(s), whether or not language of non-limitation, such as “without limitation” or “including, but not limited to,” or words of similar import, are used with reference thereto, but rather shall be deemed to refer to all other terms or matters that could fall within a reasonably broad scope of such term, statement or matter.

 

20.7        Waiver of Jury Trial. Landlord and Tenant hereby each waive trial by jury in any action, proceeding or counterclaim brought by either against the other, on or in respect of any matter whatsoever arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, or Tenant’s use or occupancy of the Premises.

 

20.8        Time Is of the Essence. Time is of the essence of each provision of this Lease.

 

47

 

20.9        Multiple Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same document.

 

20.10      Governing Law. This Lease shall be governed by the laws of the Commonwealth of Massachusetts.

 

20.11      OFAC Certification. Tenant certifies that (a) it is not acting, directly or indirectly, for or on behalf of any Person, group or nation named by an Executive Order or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other banned or blocked Person, nation, or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control (collectively, a “Prohibited Person”), and (b) Tenant has not entered into this Lease, directly or indirectly on behalf of any such Person, group, or nation. Tenant hereby agrees to defend, indemnify and hold harmless Landlord from and against any and all claims, damages, losses, risks, liabilities, and reasonably expenses (including, without limitation, reasonable attorney’s fees and costs) to the extent arising from any breach of the foregoing certification.

 

20.12      REIT Provisions. It is intended that all Rent payable by Tenant to Landlord, which includes all sums, charges, or amounts of whatever nature to be paid by Tenant to Landlord in accordance with the provisions of this Lease, shall qualify as “rents from real property” within the meaning of both Sections 512(b)(3) and 856(d) of the Internal Revenue Code of 1986, as amended (the “Code”) and the U.S. Department of Treasury Regulations promulgated thereunder (the “Regulations”). If Landlord, in its sole discretion, determines that there is any risk that all or part of any Rent shall not qualify as “rents from real property” for the purposes of Section 512(b)(3) or 856(d) of the Code and the Regulations, Tenant agrees (i) to cooperate with Landlord by entering into such amendment or amendments to this Lease (or any applicable sublease or assignment of this Lease) as Landlord reasonably deems necessary to qualify all Rent as “rents from real property,” and (ii) to permit an assignment of this Lease; provided, however, that any adjustments required under this Section shall be made so as to produce the substantially equivalent (in economic terms) Rent as payable before the adjustment.

 

20.13      No Relocation. Landlord may not relocate Tenant or substitute other space in the Building for the Premises, but Landlord may relocate or renovate Common Facilities in its sole discretion, at Landlord’s sole cost and expense, without any obligation to Tenant; provided, that, the substitution Common Facilities are substantially equivalent or better than those being replaced.

 

20.14      Notice of Lease. Tenant agrees not to record this Lease, but, at Tenant’s request, each party hereto agrees, on the request of the other, to execute a notice of lease in substantially the form attached hereto as Exhibit E. In no event shall such document set forth the Rent payable by Tenant hereunder and any such document shall expressly state that it is executed pursuant to the provisions contained in this Lease, and is not intended to vary the terms and conditions of this Lease. At Landlord’s request, promptly upon expiration of or earlier termination of the Term, Tenant shall execute and deliver to Landlord a release of any document recorded in the real property records for the location of the Property evidencing this Lease, and Tenant hereby appoints Landlord Tenant’s attorney-in-fact, coupled with an interest, to execute

 

48

 

any such document if Tenant fails to respond to Landlord’s request to do so within ten (10) days. The obligations of Tenant under this Section 20.14 shall survive the expiration or any earlier termination of the Term.

 

[SIGNATURES ON FOLLOWING PAGE]

 

49

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed, under seal, by persons hereunto duly authorized, as of the date first set forth above.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
ND/CR UNICORN LLC, a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
AG-ND MetroNorth Parent   L.L.C., a Delaware limited liability company, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ND   MetroNorth, Inc., a Massachusetts corporation, its co-manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/ Stephen A. Kinsella   
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
Stephen A. Kinsella
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
REPLIMUNE   GROUP, INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
							

 

50

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed, under seal, by persons hereunto duly authorized, as of the date first set forth above.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
ND/CR UNICORN LLC, a   Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
AG-ND MetroNorth Parent   L.L.C., a Delaware limited liability company, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ND   MetroNorth, Inc., a Massachusetts corporation, its manager
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
REPLIMUNE   GROUP, INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ P. Astley-Sparke
    
	
 
    	
 
    	
Name:
    	
Philip Astley-Sparke
    
	
 
    	
 
    	
Title:
    	
Executive Chairman
    
							

 

50

 

EXHIBIT A

 

Plan of Premises

 

 

 

EXHIBIT B

 

Operating Expenses

 

Operating Expenses shall include the following, without limitation:

 

1.                                      All expenses incurred by Landlord or Landlord’s Agents which shall be directly related to employment of personnel in connection with the operation, repair, replacement, maintenance, cleaning, repaving, insuring, protection and management of the Property, including without limitation, amounts incurred for wages, salaries and other compensation for services, payroll, social security, unemployment and similar taxes, workmen’s compensation insurance, disability benefits, pensions, hospitalization, retirement plans and group insurance, uniforms and working clothes and the cleaning thereof, and expenses imposed on Landlord or Landlord’s Agents pursuant to any collective bargaining agreement for the services of employees of Landlord or Landlord’s Agents in connection with the operation, repair, replacement, maintenance, cleaning, repaving, management and protection of the Property, including, without limitation, day and night supervisors, manager, accountants, bookkeepers, janitors, carpenters, engineers, mechanics, electricians and plumbers and personnel engaged in supervision of any of the persons mentioned above; provided that, if any such employee is also employed on other property of Landlord, such compensation shall be suitably prorated among the Property and such other properties.

 

2.                                      The cost of services, utilities, materials and supplies furnished or used in the operation, repair, replacement, maintenance, cleaning, repaving, management and protection of the Property, or any portion thereof and the parking areas, access roads, utilities, and other facilities servicing or benefiting the Property alone or in common with other properties in the Park if applicable, and real estate taxes and betterment assessments with respect to the Park, which costs associated with access roads, utilities and other facilities and real estate taxes and betterment assessments with respect to the Park shall be allocated as set forth in any agreements governing the Park, or if none, then equitably among the Property and other properties in Park, including without limitation, such operation, repair, replacement, maintenance, snow plowing, landscaping, cleaning, repaving, management and protection, and as are required to comply with Applicable Law.

 

3.                                      The cost of maintenance, repairs and replacements for tools and other similar equipment used in the repair, replacement, maintenance, cleaning, repaving, management and protection of the Property, provided that, in the case of any such equipment used jointly on other property of Landlord, such costs shall be suitably prorated among the Property and such other properties.

 

4.                                      Where the Property is managed by Landlord or an affiliate of Landlord, an annual sum equal to the amounts customarily charges by management firms in the metropolitan Boston area for similar properties, whether or not actually paid, or where managed by other than Landlord or an affiliate thereof, the amounts

 

 

actually paid for management, together with, in either case, amounts accrued for reasonable legal and other professional fees relating to the Property, but excluding such fees and commissions paid in connection with services rendered for securing or renewing leases and for matters not related to the normal administration and operation of the Property.

 

5.                                      Premiums and deductibles for insurance against damage or loss to the Property from such hazards as Landlord shall determine, including, but not by way of limitation, insurance covering loss of rent attributable to any such hazards, and public liability insurance.

 

6.                                      If, during the Term of this Lease, Landlord shall make a capital expenditure, the total cost of which is not properly includible in Operating Expenses for the Operating Year in which it was made, there shall nevertheless be included in such Operating Expenses for the Operating Year in which it was made and in Operating Expenses for each succeeding Operating Year the annual charge-off of such capital expenditure. Notwithstanding any provision of this Lease to the contrary, including without limitation Section 8.1 hereof, Landlord shall not be required to make any capital expenditures unless the Landlord, in its sole discretion, determines that the same is necessary. Annual charge-off shall be determined by dividing the original capital expenditure plus an interest factor, reasonably determined by Landlord, as being the interest rate then being charged for long-term mortgages by institutional lenders on like properties within the locality in which the Property is located, but in no event less than 12% per annum, by the number of years of useful life of the capital expenditure; and the useful life shall be determined reasonably by Landlord in accordance with generally accepted accounting principles and practices in effect at the time of making such expenditure. Notwithstanding the foregoing, if any individual capital expenditure shall be less than $25,000.00, the same shall not be included in the annual charge-off but rather shall be directly included in full in Operating Expenses for the Operating Year in which it was made.

 

7.                                      Costs for electricity, water and sewer use charges, gas and other utilities supplied to the Property and not paid for directly by tenants.

 

8.                                      Betterment assessments, provided the same are apportioned equally over the longest period permitted by law, and to the extent, if any, not included in Taxes.

 

9.                                      Amounts paid to independent contractors for services, materials and supplies furnished for the operation, repair, maintenance, cleaning and protection of the Property.

 

Notwithstanding anything to the contrary set forth above, the following costs shall be excluded from Operating Expenses:

 

a.              The cost of maintaining the entity that owns the Property.

 

 

b.              Salaries, wages, payroll taxes and benefits paid to (i) managers above the grade of Senior Property Manager or General Manager, and (ii) executive officers of the Landlord that do not provide services directly to the Property.

 

c.               When employees provide direct services to the Property and other properties, the cost of such employees shall be appropriately prorated amongst the Property and such other properties.

 

d.              Costs of sale and refinancing the Property.

 

e.               Investigation and remediation of any Environmental Condition not caused by Tenant or Tenant’s Agents.

 

f.                Debt service, depreciation and amortization.

 

g.               All capital expenditures except as otherwise expressly set forth above.

 

 

EXHIBIT C

 

Rules and Regulations of Building

 

The following regulations are generally applicable:

 

1.                                      The Common Facilities shall not be obstructed or encumbered by Tenant (except as necessary for deliveries) or used for any purpose other than ingress and egress to and from the Premises.

 

2.                                      No awnings, curtains, blinds, shades, screens or other projections shall be attached to or hung in, or used in connection with, any window of the Premises or any outside wall of the Building. Such awnings, curtains, blinds, shades, screens or other projections must be of a quality, type, design and color, and attached in the manner, approved by Landlord.

 

3.                                      No show cases or other articles shall be put in front of or affixed to any part of the exterior of the Building, nor, if the Building is occupied by more than one tenant, displayed through interior windows into the atrium of the Building, nor placed in the halls, corridors or vestibules, provided that show cases or articles may be displayed through interior windows into the atrium of the Building (if any) with Landlord’s prior written approval, such approval not to be unreasonably withheld or delayed so long as such display does not adversely affect the aesthetic integrity of the Building.

 

4.                                      No tenant shall place a load upon any floor in the Premises that exceeds the floor load per rentable square foot of area which such floor was designed to carry and which is allowed by Applicable Law. Landlord reserves the right to prescribe the weight and position of all business machines and mechanical equipment, including safes, which shall be placed so as to distribute the weight. Business machines and mechanical equipment shall be placed and maintained at Tenant’s expense in settings sufficient, in Landlord’s judgment, to absorb and prevent vibration, noise and annoyance. Tenant shall not move any safe, heavy machinery, heavy equipment, freight, bulky matter or fixtures into or out of the Building without Landlord’s prior consent, which consent may require Tenant to provide insurance naming Landlord as an insured and in such amounts as Landlord may deem reasonable. If any such safe, machinery, equipment, freight, bulky matter or fixtures requires special handling, Tenant agrees to employ only persons holding a Master Rigger’s License to do such work, and that all work in connection therewith shall comply with Applicable Law. Any such moving shall be at the sole risk and hazard of Tenant, and Tenant will exonerate, indemnify and save Landlord harmless with respect thereto as provided in Section 13.1.

 

5.                                      The water and wash closets and other plumbing fixtures shall not be used for any purposes other than those for which they were designed and constructed, and no sweepings, rubbish, rags, acids or like substances shall be deposited therein. All damages resulting from any misuse of the fixtures shall be borne by the Tenant.

 

 

6.                                      Tenant shall not use the Premises or any part thereof or permit the Premises or any part thereof to be used as a public employment bureau or for the sale of property of any kind at auction, except in connection with Tenant’s business.

 

7.                                      Tenant must, upon the termination of its tenancy, return to the Landlord all locks, cylinders and keys to offices and toilet rooms of the Premises.

 

8.                                      Landlord reserves the right to exclude from the Building after Normal Business Hours and at all hours on days other than Business Days all persons connected with or calling upon the Tenant who are not escorted in the Building by an employee of Tenant. Tenant shall be responsible for all persons to whom it allows access and shall be liable to the Landlord for all wrongful acts of such persons.

 

9.                                      The requirements of Tenant will be attended to only upon application at the Building Management Office. Employees of Landlord shall not perform any work or do anything outside of their regular duties, unless under special instructions from the office of the Landlord.

 

10.                               There shall not be used in any space in the Building, or in the public halls of the Building, either by Tenant or by jobbers or others, in the delivery or receipt of merchandise, any hand trucks, except those equipped with rubber tires and side guards.

 

11.                               No bicycles, vehicles or animals of any kind shall be brought into or kept in or about the Premises.

 

12.                               No tenant shall make, or permit to be made, any unreasonably annoying or disturbing noises or disturb or interfere with occupants of this or any neighboring building or premises or those having business with them whether by use of any musical instrument, radio, talking machine, unmusical noise, whistling, singing, or in any other way. No tenant shall throw anything out of the doors, windows or skylights or down the passageways.

 

13.                               The Premises shall not be used for lodging or sleeping or for any immoral or illegal purpose.

 

14.                               No smoking shall be permitted in the Premises or the Building. Smoking shall only be permitted in smoking areas outside of the Building which have been designated by the Landlord.

 

15.                               Tenant shall cause all freight to be delivered to or removed from the Building and the Premises and the Park in accordance with Landlord’s standard procedures.

 

16.                               Tenant shall not cause any offensive odors or loud noise to constitute a nuisance or a menace to any other tenant or tenants or other persons in the Building.

 

17.                               The rules and regulations set forth in Attachment I to this Exhibit, which is by

 

 

this reference made a part hereof, are applicable to any Alterations being undertaken by or for Tenant in the Premises pursuant to ARTICLE 7 of the Lease.

 

18.                               With the exception of food to be consumed by Tenant’s employees and invitees, no food shall be prepared or served on or about the Premises (except in any kitchen areas or areas designated by Tenant for consumption of food within the Premises which may be included in the Plans approved by Landlord); no intoxicating liquors or alcoholic beverages shall be sold, generally distributed to the public or otherwise consumed by gatherings of individuals on or about the Premises without obtaining a license therefor if required by Applicable Law.

 

19.                               Tenant shall give notice to Landlord immediately upon determining that there is a threat to health or safety at the Premises or at the Property.

 

20.                               Tenant shall comply with all rules and regulations of the Park.

 

 

ATTACHMENT I TO EXHIBIT C

 

Rules and Regulations for Tenant Alterations

 

1.                                                General

 

a.                                      All Alterations made by Tenant in, to or about the Premises shall be made in accordance with the requirements of this Exhibit and by contractors or mechanics reasonably approved by Landlord.

 

b.                                      Tenant shall, prior to the commencement of any work, submit for Landlord’s written approval, complete plans for the Alterations, with full details and specifications for all of the Alterations, in compliance with Section 4 below.

 

c.                                       Alterations must comply with the Building Code applicable to the Property and the requirements, rules and regulations and any other Governmental Authority having jurisdiction.

 

d.                                      No work shall be permitted to commence before Tenant obtains and furnishes to Landlord copies of all necessary licenses and permits from all Governmental Authorities having jurisdiction.

 

e.                                       All demolition, removals or other categories of work that may inconvenience other tenants or disturb Building operations, must be scheduled and performed before or after normal business hours, and Tenant shall provide Landlord’s Managing Agent with at least 24 hours’ notice prior to proceeding with such work.

 

f.                                        All inquiries, submissions, approvals and all other matters shall be processed through Landlord’s Managing Agent.

 

g.                                       All work, if performed by a contractor or subcontractor, shall be subject to reasonable supervision and inspection by Landlord’s representative. Such supervision and inspection shall be at Tenant’s sole expense and Tenant shall pay Landlord’s reasonable charges for such supervision and inspection.

 

2.                                                Prior to Commencement of Work

 

a.                                      Tenant shall submit to the Building Manager a request to perform the work. The request shall include the following enclosures:

 

(1)                                 A list of Tenant’s contractors and/or subcontractors for Landlord’s approval.

 

(2)                                 Four complete sets of plans and specifications properly stamped by a registered architect or professional engineer.

 

(3)                                 A properly executed building permit application form.

 

(4)                                 Four executed copies of the Insurance Requirements Agreement in

 

 

the form attached to this Exhibit as Attachment II and made a part hereof from Tenant’s contractor and, if requested by Landlord, from the contractor’s subcontractors.

 

(5)                                 Contractor’s and subcontractor’s insurance certificates.

 

b.                                      Landlord will return the following to Tenant:

 

(1)                                 A letter of approval or disapproval with specific comments as to the reasons therefor (such approval or comments shall not constitute a waiver of approval of Governmental Authorities).

 

(2)                                 Two fully executed copies of the Insurance Requirements Agreement.

 

c.                                       Landlord’s approval of the plans, drawings, specifications or other submissions in respect of any Alterations shall create no liability or responsibility on the part of Landlord for their completeness, design sufficiency or compliance with requirements of Applicable Law.

 

d.                                      Tenant shall obtain a building permit from the Building Department and necessary permits from other Governmental Authorities. Tenant shall be responsible for keeping current all permits. Tenant shall submit copies of all approved plans and permits to Landlord and shall post the original permit on the Premises prior to the commencement of any work.

 

3.                                             Requirements and Procedures

 

a.                                      All structural and floor loading requirements of Tenant shall be subject to the prior approval of Landlord’s structural engineer at Tenant’s sole cost and expense.

 

b.                                      All mechanical (HVAC, plumbing and sprinkler) and electrical requirements shall be subject to the approval of Landlord’s mechanical and electrical engineers and all mechanical and electrical work shall be performed by contractors who are engaged by Landlord in constructing, operating or maintaining the Building. When necessary, Landlord will require engineering and shop drawings, which drawings must be approved by Landlord before work is started. Drawings are to be prepared by Tenant and all approvals shall be obtained by Tenant.

 

c.                                       If shutdown of risers and mains for electrical, life safety system, HVAC, sprinkler and plumbing work is required, such work shall be supervised by Landlord’s representative. No work will be performed in Building mechanical equipment rooms without Landlord’s approval and under Landlord’s supervision.

 

d.                                      Tenant’s contractor shall:

 

(1)                                 have a superintendent or foreman on the Premises at all times;

 

 

(2)                                 police the job at all times, continually keeping the Premises orderly;

 

(3)                                 maintain cleanliness and protection of all areas, including elevators (if any) and lobbies.

 

(4)                                 protect the front and top of all peripheral HVAC units and thoroughly clean them at the completion of work;

 

(5)                                 block off supply and return grills, diffusers and ducts to keep dust from entering into the Building air conditioning system; and

 

(6)                                 avoid the disturbance of other tenants.

 

e.                                       If Tenant’s contractor is negligent in any of its responsibilities, Tenant shall be charged for corrective work.

 

f.                                        All equipment and installations must be equal to the standards generally in effect with respect to the remainder of the Building. Any deviation from such standards will be permitted only if indicated or specified on the plans and specifications and approved by Landlord.

 

g.                                       A properly executed air balancing report signed by a professional engineer shall be submitted to Landlord upon the completion of all HVAC work.

 

h.                                      Upon completion of the Alterations, Tenant shall submit to Landlord a permanent certificate of occupancy and final approval by the other Governmental Authorities having jurisdiction.

 

i.                                          Tenant shall submit to Landlord a final “as-built” set of drawings showing all items of the Alterations in full detail, in both hard copy and electronic form.

 

j.                                         Additional and differing provisions in the Lease, if any, will be applicable and will take precedence.

 

4.                                                Standards for Plans and Specifications

 

Whenever Tenant shall be required by the terms of the Lease (including this Exhibit) to submit plans to Landlord in connection with any Alterations, such plans shall include at least the following:

 

a.                                      Floor plan indicating location of partitions and doors (details required of partition and door types).

 

b.                                      Location of standard electrical convenience outlets and telephone outlets.

 

c.                                       Location and details of special electrical outlets; e.g., photocopiers, etc.

 

d.                                      Reflected ceiling plan showing layout of standard ceiling and lighting

 

 

fixtures. Partitions to be shown lightly with switches located indicating fixtures to be controlled.

 

e.                                       Locations and details of special ceiling conditions, lighting fixtures, speakers, etc.

 

f.                                         Location and specifications of floor covering, paint or paneling with paint colors referenced to standard color system.

 

g.                                       Finish schedule plan indicating wall covering, paint, or paneling with paint colors referenced to standard color system.

 

h.                                      Details and specifications of special millwork, glass partitions, rolling doors and grilles, blackboards, shelves, etc.

 

i.                                          Hardware schedule indicating door number keyed to plan, size, hardware required including butts, latchsets or locksets, closures, stops, and any special items such as thresholds, soundproofing, etc. Keying schedule is required.

 

j.                                         Verified dimensions of all built-in equipment (file cabinets, lockers, plan files, etc.)

 

k.                                      Location and weights of storage files.

 

l.                                          Location of any special soundproofing requirements.

 

m.                                  Location and details of special floor areas exceeding 50 pounds of live load per square foot.

 

n.                                      All structural, mechanical, plumbing and electrical drawings, to be prepared by the base building consulting engineers, necessary to complete the Premises in accordance with Tenant’s Plans.

 

o.                                      All drawings to be uniform size (30” x 46”) and shall incorporate the standard project electrical and plumbing symbols and be at a scale of 1/8” = 1’ or larger.

 

p.                                      All drawings shall be stamped by an architect (or, where applicable, an engineer) licensed in the jurisdiction in which the Property is located and without limiting the foregoing, shall be sufficient in all respects for submission to applicable authorities in connection with a building permit application.

 

 

Attachment II to Exhibit C

 

Contractor’s Insurance Requirements

 

Building: 500 Unicorn Park Drive, Woburn, Massachusetts

 

Landlord: ND/CR Unicorn LLC

 

Tenant:

 

Premises:

 

The undersigned contractor or subcontractor (“Contractor”) has been hired by the tenant named above (hereinafter called “Tenant”) of the Building named above (or by Tenant’s contractor) to perform certain work (“Work”) for Tenant in the Premises identified above. Contractor and Tenant have requested the landlord named above (“Landlord”) to grant Contractor access to the Building and its facilities in connection with the performance of the Work, and Landlord agrees to grant such access to Contractor upon and subject to the following terms and conditions:

 

1.                                      Contractor agrees to indemnify and save harmless Landlord and Landlord’s Agents and their respective affiliates, subsidiaries and partners, and each of them, from and with respect to any claims, demands, suits, liabilities, losses and expenses, including reasonable Attorneys’ Fees, arising out of or in connection with the Work (and/or imposed by law upon any or all of them) because of personal injuries, bodily injury (including death at any time resulting therefrom) and loss of or damage to property, including consequential damages, whether such injuries to person or property are claimed to be due to negligence of the Contractor, Tenant, Landlord or any other party entitled to be indemnified as aforesaid except to the extent specifically prohibited by law (and any such prohibition shall not void this Agreement but shall be applied only to the minimum extent required by law).

 

2.                                      Contractor shall provide and maintain at its own expense, until completion of the Work, the following insurance:

 

a.                                      Workmen’s Compensation and Employers’ Liability Insurance covering each and every workman employed in, about or upon the Work, as may be required by and provided for by applicable law.

 

b.                                      Comprehensive General Liability Insurance including coverages for Protective and Contractual Liability (to specifically include coverage for the indemnification clause of this Agreement) for not less than the following limits:

 

Personal Injury:

$1,000,000 per person

$3,000,000 per occurrence

 

 

Property Damage:

$3,000,000 per occurrence

$3,000,000 aggregate

 

c.                                       Comprehensive Automobile Liability Insurance (covering all owned, non-owned and/or hired motor vehicles to be used in connection with the Work) for not less than the following limits:

 

Bodily Injury:

$1,000,000 per person

$1,000,000 per occurrence

 

Property Damage:

$1,000,000 per occurrence

 

Contractor shall furnish a certificate from its insurance carrier or carriers to the Building office before commencing the Work, showing that it has complied with the above requirements regarding insurance and providing that the insurer will give Landlord ten (10) days’ prior written notice of the cancellation of any of the foregoing policies.

 

3.                                                Contractor shall require all of its subcontractors engaged in the Work to provide

 

a.                                      Comprehensive General Liability Insurance including Protective and Contractual Liability coverages with limits of liability at least equal to the limits stated in paragraph 2(b).

 

b.                                      Comprehensive Automobile Liability Insurance (covering all owned, non-owned and/or hired motor vehicles to be used in connection with the Work) with limits of liability at least equal to the limits stated in paragraph 2(c).

 

Upon the request of Landlord, Contractor shall require all of its subcontractors engaged in the Work to execute an Insurance Requirements agreement in the same form as this Agreement.

 

Agreed to and executed this day of                               ,                  .

 

	
 
    	
Contractor:
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
				

 

 

EXHIBIT D

 

Form of Commencement Date Agreement

 

THIS COMMENCEMENT DATE AGREEMENT is made as of                , 2019, by and between ND/CR Unicorn LLC, a Delaware limited liability company (“Landlord”), and Replimune Group, Inc., a Delaware corporation (“Tenant”).

 

Recitals:

 

A.                                    Landlord and Tenant are parties to that certain Lease dated              , 2019 (the “Lease”) for certain Premises (the “Premises”) consisting of an agreed 18,712 rentable square feet on the third (3rd) floor of the building commonly known and numbered as 500 Unicorn Park Drive, Woburn, Massachusetts.

 

B.                                    Tenant is in possession of the Premises and the Term of the Lease has commenced.

 

C.                                    Landlord and Tenant desire to enter into this Agreement confirming the Term Commencement Date, the Rent Commencement Date and the Expiration Date of the Lease.

 

NOW, THEREFORE, Landlord and Tenant agree as follows:

 

1.                                      Capitalized terms not defined herein shall have the same meaning as set forth in the Lease.

 

2.                                      The Term Commencement Date is                    .

 

3.                                      The Rent Commencement Date is                     .

 

4.                                      The Expiration Date is                       , subject to Tenant’s option to extend the term of the Lease for one (1) term of five (5) years as provided in the Lease.

 

5.                                      This Commencement Date Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns. This Commencement Date Agreement shall not be deemed a waiver or amendment of any of the terms or provisions of the Lease.

 

[signatures on following page]

 

 

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

 

	
LANDLORD:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    	
 
    
	
ND/CR   UNICORN LLC, a Delaware limited liability company
    	
 
    	
REPLIMUNE GROUP INC., a   Delaware corporation
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
AG-ND MetroNorth Parent   L.L.C., a Delaware limited liability company, its sole member
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
By:
    	
ND   MetroNorth, Inc., a Massachusetts corporation, its co-manager
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    	
 
    	
 
    	
 
    

 

 

EXHIBIT E

 

Form of Notice of Lease

 

Pursuant to Massachusetts General Laws, Chapter 183, Section 4, notice is hereby given of the following Lease:

 

	
Landlord:
    	
 
    	
ND/CR Unicorn LLC, a Delaware   limited liability company, having a principal place of business at c/o   National Development, 2310 Washington Street, Newton Lower Falls,   Massachusetts 02462.
    
	
 
    	
 
    	
 
    
	
Tenant:
    	
 
    	
Replimune Group, Inc., a   Delaware corporation, having its principal office at 500 Unicorn Park Drive,   Woburn, Massachusetts 01801.
    
	
 
    	
 
    	
 
    
	
Date of Lease:
    	
 
    	
June     , 2019.
    
	
 
    	
 
    	
 
    
	
Description of Leased Premises:
    	
 
    	
 

Approximately 18,712 rentable square feet of space   in the building known as and numbered 500 Unicorn Park Drive, Woburn, Middlesex   County, Massachusetts. For Landlord’s title, see deed recorded with the   Middlesex South District Registry of Deeds in Book            ,   Page         .
    
	
 
    	
 
    	
 
    
	
Term of Lease:
    	
 
    	
Approximately ten (10) years, one   (1) month.
    
	
 
    	
 
    	
 
    
	
Extension Option:
    	
 
    	
One (1) option to renew the Term of Lease for   five (5) years.
    

 

This instrument is executed as notice of the aforesaid Lease and is not intended, nor shall it be deemed, to vary or govern the interpretation of the terms and conditions thereof.

 

[SIGNATURES ON FOLLOWING PAGE]

 

 

This instrument is executed as notice of the aforesaid Lease and is not intended, nor shall it be deemed, to vary or govern the interpretation of the terms and conditions thereof.

 

EXECUTED as a sealed instrument this   day of June, 2019.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
ND/CR   UNICORN LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
AG-ND MetroNorth Parent   L.L.C., a Delaware limited liability company, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
ND   MetroNorth, Inc., a Massachusetts corporation, its co-manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
REPLIMUNE   GROUP, INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
						

 

[ACKNOWLEDGMENTS ON FOLLOWING PAGE]

 

 

COMMONWEALTH OF MASSACHUSETTS

 

Middlesex, ss.

 

On this      day of                            , 2019, then personally appeared before me the above-named                                           , as                                            of ND MetroNorth, Inc., the co-manager of AG-ND MetroNorth Parent L.L.C., the sole member of ND/CR Unicorn LLC, a Delaware limited liability company, proved to me through satisfactory evidence of identification, which was personal knowledge, to be the person whose name is signed on the preceding or attached documents, and acknowledged to me that he signed it voluntarily for its stated purpose.

 

	
 
    	
 
    
	
 
    	
Notary Public
    
	
 
    	
My commission expires:
    

 

 

                                         OF                                         

 

                                              , ss.

 

On this      day of                            , 2019, then personally appeared before me the above-named                                           , as                                            of Replimune Group, Inc., a Delaware corporation, proved to me through satisfactory evidence of identification, which was personal knowledge, to be the person whose name is signed on the preceding or attached documents, and acknowledged to me that he/she signed it voluntarily for its stated purpose.

 

	
 
    	
 
    
	
 
    	
Notary Public
    
	
 
    	
My commission expires:
    

 

 

EXHIBIT F

 

Form of Letter of Credit

 

	
 
    	
 
    	
                     ,      
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

Re:                             Letter of Credit No.:

 

Gentlemen:

 

We hereby establish in your favor our Irrevocable Letter of Credit No.              , and you are hereby irrevocably authorized to draw on us under this Letter of Credit an amount up to USD                (United States Dollars                   and 00/100).

 

Funds under this Letter of Credit are available to you (the “Beneficiary”) by your sight draft (s) drawn on us, stating on its face: “Drawn under                Irrevocable Letter of Credit No.              ,” accompanied this original Letter of Credit and a certificate (the “Drawing Certificate”) signed by an officer or other representative of Beneficiary certifying

 

“I,               , an officer of                (the “Beneficiary”) hereby certify to                     (the “Bank”), with respect to Irrevocable Letter of Credit No.                issued by the Bank in favor of Beneficiary, that Beneficiary has the right to draw USD                under that certain Lease Agreement dated                (the “Lease”) between Beneficiary, as landlord, and                        , as tenant, for the premises comprising a portion of the building known as and numbered                        .”

 

Partial and multiple drawings are permitted under this Letter of Credit.

 

Presentation of drawings hereunder shall be made at our office located at                        , or at any other office which may be designated by us in a written notice delivered to you.

 

This Letter of Credit is transferable in whole, not in part, and may be successively transferred. Transfer of this Letter of Credit shall be effective upon presentation to us of this original Letter of Credit, accompanied by our standard transfer request form appropriately completed. Upon such transfer, all references to the Beneficiary in the Letter of Credit shall be replaced with the name of the transferee.

 

 

This Letter of Credit is effective on the date hereof and shall expire with our close of business at 5:00 P.M., our time, on                         (the “Expiration Date”) unless extended as hereinafter provided.

 

We hereby engage with you that draft(s) drawn under and in compliance with the terms and conditions of this Letter of Credit will be duly honored. Upon request, we will promptly review and approve in advance any draw under this Letter of Credit facsimile copies of the form of the Drawing Certificate relating to such draw.

 

This Letter of Credit shall be deemed automatically extended, without amendment, for additional periods of one (1) year from the Expiration Date hereof or any future expiration date, unless not less than sixty (60) days prior to any Expiration Date, we notify you in writing, by registered mail, courier service or hand delivery, at the above address, that we elect not to extend this Letter of Credit to any such additional periods. If we so notify you that this Letter of Credit will not be extended, you may draw the full amount then available on or before the then current expiration date by means of your sight draft drawn on us, which draft need not be accompanied by the certificate. In any event, this Letter of Credit will not be extended beyond                         pursuant to the first sentence of this paragraph.

 

This Letter of Credit is subject to Article 5 of the Massachusetts Uniform Commercial Code and where not inconsistent therewith to the Uniform Customs and Practices for Documentary Credits (2007 Revision), International Chamber of Commerce, Paris, France, Publication 590.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
                                       Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
                              , Its                     
    
	
 
    	
 
    	
Hereunto duly   authorized
    

 

2

 

EXHIBIT G

 

Appraisers’ Determination of Fair Market Rent

 

The term “Appraisers’ Determination” refers to the following procedures and requirements:

 

If Landlord and Tenant shall not have been able to agree upon the Fair Market Rent which will be used as an applicable component to calculate the Extension Term Basic Rent (i.e., the portion of such applicable component of the Extension Term Basic Rent that will be multiplied by ninety-five percent (95%)) by the date described in Section 1.1, then such Fair Market Rent shall be fixed by using an Appraisers’ Determination as follows:

 

Landlord and Tenant shall agree upon an appraiser who shall be a Member of the Appraisal Institute (MAI) or Counselors of Real Estate (CRE) (or successor professional organizations) and shall have at least ten (10) years’ experience appraising rental values of property in the metropolitan Boston market area.

 

If Landlord and Tenant are not able to agree upon an appraiser by the date which is ten (10) days after an Impasse, as defined in Section 1.1 (the “Appraiser Selection Deadline”), each of Landlord and Tenant shall, within ten (10) additional days, that is, by the date which is twenty (20) days after an Impasse, select an appraiser with the foregoing qualifications whereupon each of said appraisers shall, within ten (10) days of their selection hereunder, select a third appraiser with the foregoing qualifications. Fair Market Rent shall thereafter be determined to be the amount equal to the average of the two appraisals which are closest in dollar amount to each other except that if all three appraisals are apart in equal amounts, the appraisal which falls in the middle shall be the Fair Market Rent. If either party fails to select an appraiser by the Appraiser Selection Deadline, then the appraiser selected by the other party, if selected by the Appraiser Selection Deadline, shall be the sole appraiser. Landlord and Tenant shall share equally the expense of any and all appraisers. The appraiser(s) shall be obligated to make a determination of Fair Market Rent within thirty (30) days of the appointment of either the single appraiser (if only one) and within thirty (30) days of the appointment of the third appraiser (if three are so appointed).

 

The Fair Market Rent which will be used as an applicable component to calculate the Extension Term Basic Rent (i.e., the portion of such applicable component of the Extension Term Basic Rent that will be multiplied by ninety-five percent (95%)) shall be the then current arms-length basic rent being charged to tenants for comparable buildings in the metropolitan Boston market area (as determined either by mutual agreement of Landlord and Tenant or by the appraisers as set forth hereinabove).

 

The appraisers shall not have the right to modify any provision of this Lease and shall only determine the Fair Market Rent which will be used as an applicable component to calculate the Extension Term Basic Rent (i.e., the portion of such applicable component of the Extension Term Basic Rent that will be multiplied by ninety-five percent (95%)).

 

 

EXHIBIT H

 

Satellite Dish

 

1.                                      Tenant shall have the right, during the Term and any extensions thereof, to install, at Tenant’s sole cost and expense and for Tenant’s exclusive use only (and not for the use by or for the benefit of any third party), a satellite dish of a size reasonably approved by Landlord (together with any cabling, wiring, conduit or component parts thereof or relating thereto, collectively, the “Satellite Dish”) on the roof of the Building for Tenant’s own use only; provided, that, and without limiting the requirements in ARTICLE 7 of this Lease, such installation of any Satellite Dish may occur only after Landlord has approved, in writing, at no cost to Landlord, of the size, make and type of the particular Satellite Dish, the location and means of installation of such Satellite Dish and the plans and specifications relating thereto. In any event, Tenant shall not use more than ten (10) square feet of the Building’s usable roof area in connection with its installation and use of the Satellite Dish. Tenant shall be responsible, at Tenant’s sole cost and expense, to obtain any and all necessary and required permits and approvals from any and all applicable Governmental Authorities in connection with the installation and use of the Satellite Dish and shall (a) at all times comply with any and all such permits and approvals, (b) comply with the provisions of this Lease, including, without limitation, ARTICLE 7 and Section 9.2 of this Lease in connection with its installation of any Satellite Dish, (c) relocate the same, at Tenant’s sole cost and expense, to comparable space on the roof of the Building within a reasonable time following Landlord’s written notice to Tenant requesting such relocation from time to time, and (d) at Landlord’s election, pursuant to Section 16.2 of this Lease, upon the expiration or earlier termination of this Lease, remove the Satellite Dish and restore the roof to its prior condition in accordance with the terms and provisions of this Lease, including, without limitation, ARTICLE 7, Section 9.2 and Section 16.2 of this Lease, with Landlord and Tenant hereby acknowledging and agreeing that such Satellite Dish shall constitute an Alteration pursuant to ARTICLE 7 of this Lease. Tenant’s installation and use of any Satellite Dish shall not at any time (i) affect the waterproofing of the roof, (ii) be visible from any public way, or (iii) cause any interference with (v) the Building Systems, (w) the operations of any tenant in the Building, (x) any preinstalled telecommunications or HVAC equipment in or on the Building, (y) any future HVAC equipment in or on the Building, or (z) any future telecommunications equipment (I) of any telecommunications service provider which makes its services available generally to the tenants of the Building for a fee or (II) serving a larger portion of the Building than the Premises. Tenant shall also cooperate with any rooftop management policy and any telecommunications management policy which Landlord has or may implement for the Building from time to time. Tenant shall not be charged any additional rent as a result of the installation of such Satellite Dish, unless Landlord’s insurance increases as a result of such installation or Tenant damages any portion of the Building or the roof in connection with such installation.

 

2.                                      Notwithstanding anything to the contrary contained herein, if at any time during the Term Landlord determines in its sole discretion that any Satellite Dish materially interferes with the operations of the Building or the Park or the operations of any of the occupants of the Building or the Park, then Tenant shall, upon notice from Landlord, cease any further operation of any Satellite Dish. From and after such notice by Landlord, Tenant shall have no further right to operate any Satellite Dish unless and until Tenant shall have redesigned and modified any Satellite Dish and/or installations in a manner approved by Landlord; provided, however, that Landlord’s approval of such

 

 

redesign and modification shall constitute the mere permission to operate any Satellite Dish, which permission shall in no event be construed to abrogate or diminish Landlord’s rights or Tenant’s obligations under this Section 2 of this Exhibit H.EX-4.2

 Exhibit 4.2 
  

 
  

BARCLAYS PLC, 
 as Issuer, 

THE BANK OF NEW YORK MELLON, LONDON BRANCH, 

as Trustee and Paying Agent 
 and

 THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH, 

as Contingent Convertible Security Registrar 
  

 
 THIRD
SUPPLEMENTAL INDENTURE 
 Dated as of June 13, 2019 
  

 
 To the
Contingent Convertible Securities Indenture, dated as of August 14, 2018, 
 among the Issuer, the Trustee and Paying Agent and the Contingent
Convertible Security Registrar 
 £1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated Contingent 

Convertible Securities (Callable June 15, 2025 and Every Five Years Thereafter) 

 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	ARTICLE I	  

	
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	  

			
	 SECTION 1.01
	  	 Definitions
	  	 	2	 
	 SECTION 1.02
	  	 Effect of Headings
	  	 	15	 
	 SECTION 1.03
	  	 Separability Clause
	  	 	15	 
	 SECTION 1.04
	  	 Benefits of Instrument
	  	 	15	 
	 SECTION 1.05
	  	 Relation to Base Indenture
	  	 	15	 
	 SECTION 1.06
	  	 Construction and Interpretation
	  	 	15	 
	
	ARTICLE II	  

	
	£1,000,000,000 7.125% FIXED RATE RESETTING PERPETUAL SUBORDINATED
CONTINGENT CONVERTIBLE SECURITIES (CALLABLE JUNE 15, 2025 AND
EVERY FIVE YEARS THEREAFTER)	  

			
	 SECTION 2.01
	  	 Creation of Series; Establishment of Form
	  	 	17	 
	 SECTION 2.02
	  	 Interest
	  	 	18	 
	 SECTION 2.03
	  	 Payment of Principal, Interest and Other Amounts
	  	 	19	 
	 SECTION 2.04
	  	 Optional Redemption
	  	 	19	 
	 SECTION 2.05
	  	 Optional Tax Redemption
	  	 	20	 
	 SECTION 2.06
	  	 Regulatory Event Redemption
	  	 	21	 
	 SECTION 2.07
	  	 Notice of Redemption
	  	 	21	 
	 SECTION 2.08
	  	 Automatic Conversion upon Capital Adequacy Trigger Event
	  	 	21	 
	 SECTION 2.09
	  	 Conversion Shares
	  	 	25	 
	 SECTION 2.10
	  	 Conversion Shares Offer
	  	 	26	 
	 SECTION 2.11
	  	 Settlement Procedure
	  	 	27	 
	 SECTION 2.12
	  	 Failure to Deliver a Conversion Shares Settlement Notice
	  	 	29	 
	 SECTION 2.13
	  	 Additional Amounts and FATCA Withholding Tax
	  	 	29	 
	 SECTION 2.14
	  	 DTC
	  	 	29	 
	 SECTION 2.15
	  	 Depositary
	  	 	30	 
	 SECTION 2.16
	  	 Termination of Global Security
	  	 	30	 
	
	ARTICLE III	  

	
	ANTI DILUTION	  

			
	 SECTION 3.01
	  	 Adjustment of Conversion Price
	  	 	30	 
	 SECTION 3.02
	  	 No Retroactive Adjustments
	  	 	33	 
	 SECTION 3.03
	  	 Decision of an Independent Financial Advisor
	  	 	34	 
	 SECTION 3.04
	  	 Rounding Down and Notice of Adjustment to the Conversion Price
	  	 	34	 
	 SECTION 3.05
	  	 Qualifying Takeover Event
	  	 	34	 

  
 -i- 

							
	
	ARTICLE IV	  

	
	MISCELLANEOUS PROVISIONS	  

			
	 SECTION 4.01
	  	 Effectiveness
	  	 	35	 
	 SECTION 4.02
	  	 Original Issue
	  	 	35	 
	 SECTION 4.03
	  	 Ratification and Integral Part
	  	 	36	 
	 SECTION 4.04
	  	 Priority
	  	 	36	 
	 SECTION 4.05
	  	 Successors and Assigns
	  	 	36	 
	 SECTION 4.06
	  	 Counterparts
	  	 	36	 
	 SECTION 4.07
	  	 Governing Law
	  	 	36	 
		
	 EXHIBIT A – Form of Global Security
	  	 	A-1	 
	 EXHIBIT B – Form of Automatic Conversion Notice
	  	 	B-1	 
	 EXHIBIT C – Form of Capital Adequacy Trigger Event Officers’
Certificate
	  	 	C-1	 
	 EXHIBIT D – Form of Conversion Shares Offer Notice
	  	 	D-1	 
	 EXHIBIT E – Form of Conversion Shares Settlement Request Notice
	  	 	E-1	 

  
 -ii- 

 THIRD SUPPLEMENTAL INDENTURE, dated as of June 13, 2019 (the “Third
Supplemental Indenture”), among BARCLAYS PLC, a public limited company registered in England and Wales, as Issuer (hereinafter called the “Company”), having its registered office at 1 Churchill Place, London E14 5HP, United
Kingdom, THE BANK OF NEW YORK MELLON, LONDON BRANCH, a New York banking corporation, as Trustee (herein called the “Trustee”) and Paying Agent, having its Corporate Trust Office at One Canada Square, London E14 5AL, United Kingdom
and THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH, as Contingent Convertible Security Registrar, having an office at 2-4 Rue Eugene Ruppert, Vertigo Building – Polaris, Luxembourg, L-2453,
Luxembourg (herein called the “Contingent Convertible Security Registrar”), to the CONTINGENT CONVERTIBLE SECURITIES INDENTURE, dated as of August 14, 2018 among the Company, the Trustee and the Contingent Convertible Security
Registrar, as amended and supplemented from time to time (the “Base Indenture” and, together with this Third Supplemental Indenture, the “Indenture”). 

RECITALS OF THE COMPANY 

WHEREAS, the Company, the Trustee and the Contingent Convertible Security Registrar are parties to the Base Indenture, which provides for the
issuance by the Company from time to time of Contingent Convertible Securities in one or more series; 
 WHEREAS, Section 9.01(f) of
the Base Indenture permits supplements thereto without the consent of Holders of Contingent Convertible Securities to establish the form or terms of Contingent Convertible Securities of any series as permitted by Sections 2.01 and 3.01 of the Base
Indenture; 
 WHEREAS, as contemplated by Section 3.01 of the Base Indenture, the Company intends to issue a new series of Contingent
Convertible Securities to be known as the Company’s “£1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities (Callable June 15, 2025 and Every Five Years Thereafter)” (the
“Securities”) under the Indenture; 
 WHEREAS, the Company has taken all necessary corporate action to authorize the
execution and delivery of this Third Supplemental Indenture; 

  
 - 4 - 

 NOW, THEREFORE, THIS THIRD SUPPLEMENTAL INDENTURE WITNESSETH: 

For and in consideration of the premises and the other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Company, the Trustee and Paying Agent and the Contingent Convertible Security Registrar mutually agree as follows with regard to the Securities: 

ARTICLE I 
 DEFINITIONS
AND OTHER PROVISIONS OF GENERAL APPLICATION 
 SECTION 1.01.    Definitions. 

Except as otherwise expressly provided or unless the context otherwise requires, all terms used in this Third Supplemental Indenture that are
defined in the Base Indenture shall have the meanings ascribed to them in the Base Indenture. The following terms used in this Third Supplemental Indenture have the following respective meanings with respect to the Securities only: 

“Acquirer” means the Takeover Person that controls the Company following a Takeover Event. For the purposes of
this definition, “control” means the acquisition or holding of legal or beneficial ownership of more than 50% of the votes which may ordinarily be cast on a poll at a general meeting of the Company or the right to appoint or remove a
majority of the board of directors of the Company. 
 “Approved Entity” means a body corporate which, on the
occurrence of the Takeover Event and thereafter, has in issue Approved Entity Shares. On and after the date of a Qualifying Takeover Event, references herein to “Ordinary Shares” shall be read as references to “Approved Entity
Shares.” 
 “Approved Entity Shares” means ordinary shares in the capital of a body corporate that
constitutes equity share capital or the equivalent (or depository or other receipts representing the same) which are listed and admitted to trading on a Recognized Stock Exchange and is not share capital which, if the Securities could convert into
such share capital in accordance with Section 2.09 of this Third Supplemental Indenture, would cause a Relevant Tax Effect in circumstances where, if the Securities could instead only convert into ordinary shares of the Company, would not cause
a Relevant Tax Effect. Such shares shall cease to be “Approved Entity Shares” if they do not satisfy the definition above on the Conversion Date. In relation to an Automatic Conversion in respect of which the Conversion Date falls on or
after the QTE Effective Date, references herein to “Conversion Shares” shall be deemed to be references to “Approved Entity Shares”. 

“Automatic Conversion” means the irrevocable and automatic release of all of the Company’s obligations
under the Securities (other than the CSO Obligations, if any) in consideration of the Company’s issuance of the Conversion Shares at the Conversion Price to the Conversion Shares Depository (on behalf of the Holders and Beneficial Owners of the
Securities) or to the relevant recipient of such Conversion Shares, all in accordance with the terms of the Securities. 

“Automatic Conversion Notice” means the written notice (substantially in the form attached hereto as
Exhibit B) to be delivered by the Company to the Trustee directly and to the Holders of the Securities through the Clearing Systems (or, if the Securities are definitive Securities, by the Company to the Trustee directly and to the Holders at
their 

  
 - 5 - 

 
addresses shown on the Contingent Convertible Security Register) specifying (i) that a Capital Adequacy Trigger Event has occurred, (ii) the Conversion Date or expected Conversion Date,
(iii) the Conversion Price, (iv) that the Company has the option, at its sole and absolute discretion, to elect that a Conversion Shares Offer be conducted and that the Company will issue a Conversion Shares Offer Notice through the
Clearing Systems within ten (10) Business Days following the Conversion Date notifying Holders of the Company’s election and (v) that the Securities shall remain in existence for the sole purpose of evidencing the right of the Holders
to receive Conversion Shares or Conversion Shares Offer Consideration, as applicable, from the Conversion Shares Depository and the Company’s CSO Obligations, if any, and that the Securities may continue to be transferable until the Suspension
Date, which shall be specified in the Conversion Shares Offer Notice. 
 “Base Indenture” has the meaning
set forth in the first paragraph of this Third Supplemental Indenture. 
 “Business Day” means any weekday,
other than one on which banking institutions are authorized or obligated by law, regulation or executive order to close in London, United Kingdom. 

“Calculation Agent” means The Bank of New York Mellon, London Branch, or its successor appointed by the
Company pursuant to the calculation agent agreement between the Company and The Bank of New York Mellon, dated as of the date hereof. 

“Calculation Period” means the relevant period for which interest is to be calculated from (and including) the
first day in such period to (but excluding) the last day in such period. 
 “Cancellation Date” means
(i) with respect to any Security for which a Conversion Shares Settlement Notice is received by the Conversion Shares Depository on or before the Notice Cut-off Date, the applicable Conversion Shares
Settlement Date and (ii) with respect to any Security for which a Conversion Shares Settlement Notice is not received by the Conversion Shares Depository on or before the Notice Cut-off Date, the Final
Cancellation Date. 
 “Capital Adequacy Trigger Event” shall occur if at any time the Fully Loaded CET1
Ratio (as defined herein) is less than 7.00%. Whether a Capital Adequacy Trigger Event has occurred at any time shall be determined by the Company and such determination shall be binding on the Trustee and Holders of the Securities. 

“Capital Adequacy Trigger Event Officers’ Certificate” has the meaning set forth in Section 2.08(o)
hereof. 
 “Capital Regulations” means, at any time, the laws, regulations, requirements, standards,
guidelines and policies relating to capital adequacy and/or minimum requirement for own funds and eligible liabilities and/or loss absorbing capacity for credit institutions of either (i) the PRA and/or (ii) any other national or European
authority, in each case then in effect in the United Kingdom (or in such other jurisdiction in which the Company may be organized or domiciled) and applicable to the Group (as defined below) including, as at the date hereof, CRD IV and related
technical standards. 

  
 - 6 - 

 “Cash Component” means that portion, if any, of the
Conversion Shares Offer Consideration consisting of cash. 
 “Cash Dividend” means any dividend or
distribution in respect of the Ordinary Shares to Shareholders of the Company which is to be paid or made in cash (in whatever currency), however described and whether payable out of share premium account, profits, retained earnings or any other
capital or revenue reserve or account and including a distribution or payment to Shareholders upon or in connection with a reduction of capital. 

“CET1 Capital” means, at any time, the sum, expressed in pounds sterling, of all amounts that constitute
common equity Tier 1 Capital of the Group at such time, less any deductions from common equity Tier 1 Capital required to be made at such time, in each case as determined by the Company on a consolidated basis in accordance with the Capital
Regulations applicable to the Group at such time (which determination shall be binding on the Trustee and the Holders and Beneficial Owners). For the purposes of this definition, the term “common equity Tier 1 Capital” shall have the
meaning assigned to such term in the Capital Regulations then applicable to the Group. 
 “Clearing Systems”
means Clearstream, Luxembourg and Euroclear and shall include any successor clearing systems. 
 “Clearing System
Business Day” means a day on which each Clearing System for which the Global Security is being held is open for business. 

“Clearstream, Luxembourg” means Clearstream Banking, S.A. 

“Common Depositary” means The Bank of New York Mellon, London Branch, or any successor in such capacity, as
common depositary for Euroclear and Clearstream, Luxembourg. 
 “Companies Act” means the Companies Act 2006
(UK). 
 “Company” has the meaning set forth in the first paragraph of this Third Supplemental Indenture,
and includes any successor entity. 
 “Conversion Date” means the date on which the Automatic Conversion
shall take place, or has taken place, as applicable. 
 “Conversion Price” means £1.65 per Conversion
Share (subject to certain anti-dilution adjustments pursuant to Section 3.01 hereof). 

“Conversion Shares” means the Ordinary Shares of the Company to be issued to the Conversion Shares Depository
(or to the relevant recipient in accordance with the terms of the Securities) following an Automatic Conversion, which Ordinary Shares shall be in such number as is determined by dividing the aggregate principal amount of the

  
 - 7 - 

 
Securities Outstanding immediately prior to the Automatic Conversion on the Conversion Date by the Conversion Price, rounded down, if necessary, to the nearest whole number of Ordinary Shares.

 “Conversion Shares Component” means that portion, if any, of the Conversion Shares Offer Consideration
consisting of Conversion Shares. 
 “Conversion Shares Depository” means a financial institution, trust
company, depository entity, nominee entity or similar entity to be appointed by the Company on or prior to any date when a function ascribed to the Conversion Shares Depository in the Indenture is required to be performed, to perform such functions
and which, as a condition of such appointment, such entity will be required to undertake, for the benefit of the Holders and Beneficial Owners of the Securities, to hold the Conversion Shares (and any Conversion Shares Offer Consideration) on behalf
of such Holders and Beneficial Owners of the Securities in one or more segregated accounts, unless otherwise required for the purposes of the Conversion Shares Offer and, in any event, on terms consistent with the Indenture. 

“Conversion Shares Offer” has the meaning set forth in Section 2.10(a) hereof. 

“Conversion Shares Offer Agent” means the agent(s), if any, to be appointed on behalf of the Conversion Shares
Depository by the Company, in its sole and absolute discretion, to act as placement or other agent of the Conversion Shares Depository to facilitate a Conversion Shares Offer. 

“Conversion Shares Offer Consideration” means in respect of each Security (i) if all of the Conversion
Shares are sold in the Conversion Shares Offer, the pro rata share of the cash proceeds in sterling from the sale of the Conversion Shares attributable to such Security, (ii) if some but not all of the Conversion Shares are sold in the
Conversion Shares Offer, (x) the pro rata share of the cash proceeds in sterling from the sale of the Conversion Shares attributable to such Security and (y) the pro rata share of the Conversion Shares not sold pursuant to
the Conversion Shares Offer attributable to such Security rounded down to the nearest whole number of Conversion Shares, and (iii) if no Conversion Shares are sold in a Conversion Shares Offer, the relevant Conversion Shares attributable to
such Security rounded down to the nearest whole number of Conversion Shares, subject in the case of (i) and (ii)(x) above to deduction from any such cash proceeds of an amount equal to the pro rata share of any stamp duty, stamp duty
reserve tax, or any other capital, issue, transfer, registration, financial transaction or documentary tax that may arise or be paid as a consequence of the transfer of any interest in the Conversion Shares to the Conversion Shares Depository as a
consequence of the Conversion Shares Offer. 
 “Conversion Shares Offer Notice” means the written notice
(substantially in the form attached hereto as Exhibit D) to be delivered by the Company to the Trustee directly and to the Holders of the Securities through the Clearing Systems (or, if the Securities are definitive Securities, by the Company
to the Trustee directly and to the Holders at their addresses shown on the Contingent Convertible Security Register) specifying (i) whether 

  
 - 8 - 

 
or not the Company has elected that a Conversion Shares Offer be made and, if so, the Conversion Shares Offer Period, (ii) the Suspension Date, (iii) details of the Conversion Shares
Depository or (iv) if the Company has been unable to appoint a Conversion Shares Depository, such other arrangements for the issuance and/or delivery of the Conversion Shares or the Conversion Shares Offer Consideration, as applicable, to the
Holders of the Securities as it shall consider reasonable in the circumstances. 
 “Conversion Shares Offer
Period” means the period during which the Conversion Shares Offer may occur, which period shall end no later than forty (40) Business Days after the delivery of the Conversion Shares Offer Notice. 

“Conversion Shares Settlement Date” means (i) with respect to any Security in relation to which a
Conversion Shares Settlement Notice is received by the Conversion Shares Depository on or before the Notice Cut-off Date, the later of (a) the date that is two (2) Business Days after the end of the
relevant Conversion Shares Offer Period and (b) the date that is two (2) Business Days after the date on which such Conversion Shares Settlement Notice has been received by the Conversion Shares Depository and (ii) with respect to any
Security in relation to which a Conversion Shares Settlement Notice is not received by the Conversion Shares Depository on or before the Notice Cut-off Date, the date on which the Conversion Shares Depository
delivers the relevant Conversion Shares or Conversion Shares Component, if any, of any Conversion Shares Offer Consideration, as applicable. 

“Conversion Shares Settlement Notice” means a written notice (substantially in the form attached hereto as
Exhibit E) to be delivered by a Holder or Beneficial Owner (or custodian, broker, nominee or other representative thereof) to the Conversion Shares Depository (or to the relevant recipient of the Conversion Shares in accordance with the terms
of the Securities), with a copy to the Trustee, no earlier than the Suspension Date containing the following information: (i) the name of the Holder or Beneficial Owner (or custodian, broker, nominee or other representative thereof), (ii) the
aggregate amount of the Tradable Amount of the book-entry interests in the Securities held by such Holder or Beneficial Owner (or custodian, broker, nominee or other representative thereof) on the date of such
notice, (iii) the name to be entered in the Company’s share register, (iv) the details of the CREST or other clearing system account or, if the Conversion Shares are not a participating security in CREST or another clearing system,
the address to which the Conversion Shares (or the Conversion Shares Component, if any, of any Conversion Shares Offer Consideration) and/or cash (if not expected to be delivered through the Clearing Systems) should be delivered and (v) such
other details as may be required by the Conversion Shares Depository. 
 “Conversion Shares Settlement Request
Notice” means the written notice to be delivered by the Company to the Trustee directly and to the Holders and Beneficial Owner of the Securities through the Clearing Systems (or, if the Securities are definitive Securities, by the Company
to the Trustee directly and to the Holders at their registered addresses as shown on the Contingent Convertible Security Register) on the Suspension Date requesting that Holders and Beneficial Owners complete a Conversion Shares Settlement Notice
and specifying (i) the Notice Cut-off Date and (ii) the Final Cancellation Date. 

  
 - 9 - 

 “CRD IV” means the legislative package consisting of
Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, as the same may be amended or replaced from time to time and the CRD IV Regulation. 

“CRD IV Regulation” means Regulation (EU) No. 575/2013 on prudential requirements for credit institutions
and investment firms of the European Parliament and of the Council of 26 June 2013, as the same may be amended or replaced from time to time. 

“CREST” means the relevant system, as defined in the CREST Regulations, or any successor clearing system. 

“CREST Regulations” means the Uncertificated Securities Regulations 2001 (SI 2001 No. 01/378), as
amended. 
 “CSO Obligations” means the obligations of the Company under the Securities that may arise in
connection with a Conversion Shares Offer to: (i) facilitate the preparation of a prospectus or other offering document, if applicable, and (ii) take responsibility for such prospectus or other offering document, which obligations (and any
claims relating to a failure to facilitate the preparation of, or take responsibility for, such prospectus or other offering document) shall terminate in the event of the winding-up or administration of the
Company. 
 “Current Market Price” means, in respect of an Ordinary Share at a particular date, the average
of the daily Volume Weighted Average Price of an Ordinary Share on each of the five (5) consecutive Dealing Days ending on the Dealing Day immediately preceding such date; provided that, if at any time during the said five-dealing-day period the Volume Weighted Average Price shall have been based on a price ex-Cash Dividend (or ex- any other entitlement) and during some other part of that period the Volume Weighted Average Price shall have been based on a price cum-Cash Dividend (or cum- any other entitlement), then: 
  

	 	(i)	 if the Ordinary Shares to be issued do not rank for the Cash Dividend (or entitlement) in question, the Volume
Weighted Average Price on the dates on which the Ordinary Shares shall have been based on a price cum-Cash Dividend (or cum- any other entitlement) shall, for the
purposes of this definition, be deemed to be the amount thereof reduced by an amount equal to such Cash Dividend or entitlement per ordinary share as at the date of first public announcement relating to such Cash Dividend or entitlement, in any such
case, determined on a gross basis and disregarding any withholding or deduction required to be made on account of tax, and disregarding any associated tax credit; or 

  
 - 10 - 

	 	(ii)	 if the Ordinary Shares to be issued do rank for the Cash Dividend (or entitlement) in question, the Volume
Weighted Average Price on the dates on which the Ordinary Shares shall have been based on a price ex-Cash Dividend (or ex- any other entitlement) shall, for the purposes
of this definition, be deemed to be the amount thereof increased by an amount equal to such Cash Dividend or entitlement per ordinary share as at the date of first public announcement relating to such Cash Dividend or entitlement, in any such case,
determined on a gross basis and disregarding any withholding or deduction required to be made on account of tax, and disregarding any associated tax credit, 

and provided further that, if on each of the said five Dealing Days the Volume Weighted Average Price shall have been based on a
price cum-Cash Dividend (or cum- any other entitlement) in respect of a Cash Dividend (or other entitlement) which has been declared or announced but the Ordinary Shares
to be issued do not rank for that Cash Dividend (or other entitlement), the Volume Weighted Average Price on each of such dates shall, for the purposes of this definition, be deemed to be the amount thereof reduced by an amount equal to such Cash
Dividend or entitlement per ordinary share as at the date of first public announcement relating to such Cash Dividend or entitlement, in any such case, determined on a gross basis and disregarding any withholding or deduction required to be made on
account of tax, and disregarding any associated tax credit, 
 and provided further that, if the Volume Weighted Average Price
of an Ordinary Share is not available on one or more of the said five Dealing Days (disregarding for this purpose the proviso to the definition of Volume Weighted Average Price), then the average of such Volume Weighted Average Prices which are
available in that five-dealing-day period shall be used (subject to a minimum of two such prices) and if only one, or no, such Volume Weighted Average Price is available
in the relevant period, the Current Market Price shall be determined in good faith by an Independent Financial Adviser. 

“Dealing Day” means a day on which the Relevant Stock Exchange or relevant stock exchange or securities market
is open for business and on which Ordinary Shares may be dealt in (other than a day on which the Relevant Stock Exchange or relevant stock exchange or securities market is scheduled to or does close prior to its regular weekday closing time). 

“Distributable Items” shall have the meaning assigned to such term in the Capital Regulations then applicable
to the Company, but amended so that for so long as there is any reference therein to “before distributions to holders of own funds instruments” it shall be read as a reference to “before distributions to holders of Parity Securities,
the Securities or any Junior Securities.” 

  
 - 11 - 

 “EEA Regulated Market” means a regulated market as defined
by Article 4.1(21) of Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments, as the same may be amended, supplemented or replaced from time to time. 

“Effective Date” means, for the purposes of Section 3.01(c) hereof, the first date on which the Ordinary
Shares are traded ex-rights on the Relevant Stock Exchange and, for the purposes of Section 3.01(d) hereof, the first date on which the Ordinary Shares are traded
ex-the relevant Cash Dividend on the Relevant Stock Exchange. 
 “Equity
Share Capital” has the meaning provided in Section 548 of the Companies Act. 
 “Euroclear”
means Euroclear Bank SA/NV. 
 “Extraordinary Dividend” means any Cash Dividend that is expressly declared
by the Company to be a capital distribution, extraordinary dividend, extraordinary distribution, special dividend, special distribution or return of value to shareholders or any analogous or similar term, in which case the Extraordinary Dividend
shall be such Cash Dividend. 
 “Final Cancellation Date” means the date, as specified in the Conversion
Shares Settlement Request Notice, on which the Securities in relation to which no Conversion Shares Settlement Notice has been received by the Conversion Shares Depository on or before the Notice Cut-off Date
shall be cancelled, which date may be up to twelve (12) Business Days following the Notice Cut-off Date. 

“Fully Loaded” means, in relation to a measure that is presented or described as being on a “Fully Loaded
basis,” that such measure is determined without applying the transitional provisions set out in Part Ten of the CRD IV Regulation in accordance with the Capital Regulations applicable to the Company as at the time such measure is determined.

 “Fully Loaded CET1 Ratio” means, at any time, the ratio of CET1 Capital at such time to the Risk Weighted
Assets at such time, expressed as a percentage and on the basis that all measures used in such calculation shall be determined on a Fully Loaded basis. 

“Group” means the Company (or any successor entity) and its consolidated subsidiaries. 

“Governmental Entity” means (i) the United Kingdom Government, (ii) an agency of the United Kingdom
Government or (iii) a Takeover Person or entity (other than a body corporate) controlled by the United Kingdom Government or any such agency referred to in clause (ii) of this definition. If the Company is then organized in another
jurisdiction, the references to “United Kingdom Government” shall be read as references to the government of such other jurisdiction. 

  
 - 12 - 

 “Indenture” has the meaning set forth in the first
paragraph of this Third Supplemental Indenture. 
 “Independent Financial Adviser” means an independent
financial institution of international repute appointed by the Company at its own expense. 
 “Initial Interest
Rate” has the meaning set forth in Section 2.02(a) hereof. 
 “Interest Payment Date” has the
meaning set forth in Section 2.02(a) hereof. 
 “Issue Date” has the meaning set forth in
Section 2.01(f) hereof. 
 “Junior Securities” means any Ordinary Shares, securities or other
obligations (including any guarantee, credit support or similar undertaking) of the Company ranking, or expressed to rank, junior to the Securities in a winding-up or administration of the Company. 

“LSE” means the London Stock Exchange plc (or its successor). 

“Margin” has the meaning set forth in Section 2.02(a) hereof. 

“New Conversion Condition” means the condition that shall be satisfied if (a) by not later than seven
(7) Business Days following the completion of a Takeover Event where the Acquirer is an Approved Entity, there shall be arrangements in place for the Approved Entity to provide for issuance of Approved Entity Shares following an Automatic
Conversion of the Securities on terms mutatis mutandis identical to the provisions under Section 2.08 below, and (b) the Company, in its sole and absolute discretion has determined that such arrangements are in the best interest of
the Company and its shareholders taken as a whole having regard to the interests of its stakeholders (including, but not limited to, the Holders of the Securities) and are consistent with applicable law and regulation (including, without limitation
to, the guidance of any applicable regulatory body). 
 “New Conversion Price” means the amount determined
in accordance with the following formula, which shall apply from the QTE Effective Date: 
 NCP = ECP * (VWAPAES / VWAPOS)

 where: 

“NCP” is the New Conversion Price; 

“ECP” is the Conversion Price in effect on the Dealing Day immediately prior to the QTE Effective Date; 

“VWAPAES” means the average of the Volume Weighted Average Price of the Approved Entity Shares (translated, if
necessary, into the same currency as the price of the Ordinary Shares at the Prevailing Rate on the relevant dealing day) on each of the five 

  
 - 13 - 

 
Dealing Days ending on the Dealing Day prior to the closing date of the Takeover Event (and where references in the definition of “Volume Weighted Average Price” to “ordinary
share” shall be construed as a reference to the Approved Entity Shares and in the definition of “Dealing Day,” references to the “Relevant Stock Exchange” shall be to the relevant Recognized Stock Exchange); and 

“VWAPOS” is the average of the Volume Weighted Average Price of the Ordinary Shares on each of the five Dealing Days
ending on the Dealing Day immediately prior to the closing date of the Takeover Event. 
 “Notice Cut-off Date” means the date specified as such in the Conversion Shares Settlement Request Notice, which date shall be at least forty (40) Business Days following the Suspension Date. 

“Order” means the Banks and Building Societies (Priorities on Insolvency) Order 2018. 

“Ordinary Shares” means (a) prior to the QTE Effective Date, fully paid ordinary shares in the capital of
the Company and (b) on and after the QTE Effective Date, the relevant Approved Entity Shares. 
 “Parity
Securities” means any preference shares, securities or other obligations (including any guarantee, credit support or similar undertaking) of the Company ranking, or expressed to rank, pari passu with the Securities in a winding-up or administration of the Company. 
 “Payment Business Day”
means any day on which banks are open for general business (including dealings in foreign currencies) in London, United Kingdom or, if the Securities are held in definitive form, in the case of payment by transfer to a sterling account, any day on
which dealings in foreign currencies may be carried on in London, United Kingdom; and in the case of surrender (or, in the case of part payment only, endorsement) of any Securities in definitive form, any day on which banks are open for general
business (including dealings in foreign currencies) in the place in which the Securities in definitive form are surrendered (or, as the case may be, endorsed). 

“Prevailing Rate” means, in respect of any currencies on any day, the spot rate of exchange between the
relevant currencies prevailing as at or about 12:00 pm, London time, on that date as appearing on or derived from the relevant page on Bloomberg (or such other information service provider that displays the relevant information) or, if such a rate
cannot be determined at such time, the rate prevailing as at or about 12:00 pm, London time, on the immediately preceding day on which such rate can be so determined or, if such rate cannot be so determined by reference to the relevant page on
Bloomberg (or such other information service provider that displays the relevant information), the rate determined in such other manner as an Independent Financial Adviser shall in good faith prescribe. 

“Prospectus Supplement” means the prospectus supplement with respect to the Securities, dated June 6,
2019, supplementing the prospectus dated April 6, 2018. 

  
 - 14 - 

 “Prudential Regulation Authority” or “PRA”
means the Prudential Regulation Authority of the United Kingdom or such other governmental authority in the United Kingdom (or if the Company becomes domiciled in a jurisdiction other than the United Kingdom, such other jurisdiction) having primary
responsibility for the prudential supervision of the Company. 
 “QTE Effective Date” means the date with
effect from which the New Conversion Condition shall have been satisfied. 
 “Qualifying Takeover Event”
means a Takeover Event with respect to which: (i) the Acquirer is an Approved Entity; and (ii) the New Conversion Condition is satisfied. 

“Ranking Legislation” means the Order and any other law or regulation applicable to the Issuer which is
amended by the Order. 
 “Recognized Stock Exchange” means an EEA Regulated Market or another regulated,
regularly operating, recognized stock exchange or securities market in an OECD member state. 
 “Reference Bond
Price” means, with respect to any Reset Determination Date, (i) the arithmetic average of the Reference Government Bond Dealer Quotations for such Reset Determination Date, after excluding the highest and lowest such Reference
Government Bond Dealer Quotations, or (ii) if fewer than five such Reference Government Bond Dealer Quotations are received, the arithmetic average of all such quotations (or, alternatively, if only one Reference Government Bond Dealer
Quotation is received, the Reference Bond Price shall be equal to such quotation); provided, however, that if no Reference Government Bond Dealer Quotations are received, the Subsequent Interest Rate for the relevant Reset Period shall be equal to
the rate of interest last determined in relation to the Securities in respect of the preceding Reset Period (or, alternatively, if there has not been a first Reset Date, the rate of interest applicable to the first Reset Period shall be the Initial
Interest Rate). 
 “Reference Bond Rate” means, with respect to any Reset Date for which such rate applies,
the gross redemption yield (as calculated by the Calculation Agent on the basis set out by the United Kingdom Debt Management Office in the paper “Formulae for Calculating Gilt Prices from Yields”, page 5, Section One: Price/Yield
Formulae “Conventional Gilts; Double dated and Undated Gilts with Assumed (or Actual) Redemption on a Quasi-Coupon Date” (published June 8, 1998, and updated on January 15, 2002 and March 16, 2005 and as further
amended, updated, supplemented or replaced from time to time) or if such basis is no longer in customary market usage at such time, a gross redemption yield calculated in accordance with generally accepted market practice at such time, as determined
by the Company following consultation with an investment bank or financial institution determined to be appropriate by the Company (which, for the avoidance of doubt, could be the Calculation Agent, if applicable)) on a semi-annual compounding basis
(rounded up (if necessary) to four decimal places) of the Reset Reference Bond (as defined below) in respect of that Reset Period, assuming a price for the Reset Reference Bond (expressed as a percentage of its principal amount) equal to the
Reference Bond Price for the relevant Reset Determination Date. 
 “Reference Government Bond Dealer” means
each of five banks selected by the Company (following, where practicable, consultation with the Calculation Agent), or the affiliates of such banks, which are (i) primary government securities dealers, and their respective successors, or
(ii) market makers in pricing corporate bond issues. 

  
 - 15 - 

 “Reference Government Bond Dealer Quotations” means, with
respect to each Reference Government Bond Dealer and any Reset Determination Date, the arithmetic average, as determined by the Calculation Agent, of the bid and offered prices for the Reset Reference Bond (expressed in each case as a percentage of
its principal amount) as at 11:00 a.m. (London time) on the Reset Determination Date on a dealing basis for settlement on the next following dealing day in London, or such basis as is customarily used at such time, and quoted in writing to the
Calculation Agent by such Reference Government Bond Dealer. 
 “Regular Period” means each period from (and
including) any Interest Payment Date to (but excluding) the next Interest Payment Date. 
 “Regular Record
Date” means the close of business on the Clearing System Business Day immediately preceding each Interest Payment Date (or, if the Securities are held in definitive form, the close of business on the 15th Business Day preceding each
Interest Payment Date). 
 “Regulatory Event” has the meaning set forth in Section 2.06 hereof. 

“Relevant Currency” means sterling or, if at the relevant time or for the purposes of the relevant calculation
or determination the LSE is not the Relevant Stock Exchange, the currency in which the Ordinary Shares are quoted or dealt in on the Relevant Stock Exchange at such time. 

“Relevant Stock Exchange” means the LSE or, if at the relevant time the Ordinary Shares are not at that time
listed and admitted to trading on the LSE, the principal stock exchange or securities market on which the Ordinary Shares are then listed, admitted to trading or quoted or accepted for dealing. 

“Relevant Tax Effect” means a circumstance, as on the date hereof or at any time thereafter, that interest
payments (or funding costs of the Company as recognised in its accounts) under or with respect to the Securities are not or would not be deductible for UK corporation tax purposes (whether for the Company, or for companies with which the Company is
grouped for United Kingdom tax purposes). 
 “Reset Date” means June 15, 2025 and each fifth
anniversary date thereafter. 
 “Reset Determination Date” means the second (2nd) Business Day immediately
preceding each Reset Date. 
 “Reset Period” has the meaning set forth in Section 2.02(a) hereof. 

“Reset Reference Bond” means, for any Reset Period, the U.K. government security or securities selected by the
Company (after consultation with an investment bank or financial institution determined to be appropriate by the Company which, for the avoidance of doubt, could be the Calculation Agent, if applicable) with a maturity date on

  
 - 16 - 

 
or about the last day of such Reset Period and that (in the opinion of the Company) would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new
issuances of corporate debt securities denominated in sterling and of a maturity of five years. 
 “Risk Weighted
Assets” means, at any time, the aggregate amount, expressed in pounds sterling, of the risk weighted assets of the Group at such time, as determined by the Company on a consolidated basis in accordance with the Capital Regulations
applicable to the Group at such time (which determination shall be binding on the Trustee and the Holders). For the purposes of this definition, the term “risk weighted assets” means the risk weighted assets or total risk exposure amount,
as determined by the Company in accordance with the Capital Regulations applicable to the Group. 
 “Secondary
non-preferential debts” shall have the meaning given to it in the Ranking legislation. 

“Securities” has the meaning set forth in the Recitals. 

“Senior Creditors” means creditors of the Company (i) who are unsubordinated creditors; (ii) whose claims are,
or are expressed to be, subordinated (whether only in the event of the winding-up or administration of the Company or otherwise) to the claims of unsubordinated creditors of the Company but not further or otherwise; (iii) who are creditors in
respect of any secondary non-preferential debts; or (iv) whose claims are, or are expressed to be, junior to the claims of other creditors of the Company, whether subordinated or unsubordinated, other than those whose claims rank, or are expressed
to rank, pari passu with, or junior to, the claims of the holders of the Securities. 
 “Shareholders” means
the holders of Ordinary Shares. 
 “Subsequent Interest Rate” has the meaning set forth in
Section 2.02(a) hereof. 
 “Suspension Date” means, with respect to each Clearing System, the date
specified in the Conversion Shares Offer Notice as the date on which such Clearing System shall suspend all clearance and settlement of transactions in the Securities in accordance with its rules and procedures, which date shall be no later than thirty-eight (38) Business Days after the delivery of the Conversion Shares Offer Notice to such Clearing System (and, if the Company elects that a Conversion Shares Offer be made, such date shall be at least
two (2) Business Days prior to the end of the relevant Conversion Shares Offer Period). 
 “Takeover
Event” shall mean an offer made to all (or as nearly as may be practicable all) shareholders (or all (or as nearly as may be practicable all) such shareholders other than the offeror and/or any associate (as defined in Section 988(1)
of the Companies Act) of the offeror), to acquire all or a majority of the issued Ordinary Share Capital (as defined in Section 1119 of the Corporation Tax Act 2010, or any successor provision or legislation) of the Company or if any Takeover
Person proposes a scheme with regard to such acquisition and (such offer or scheme having become or been declared unconditional in all respects or having become effective) the right to cast more than 50% of the votes which may ordinarily be cast on
a poll at a general meeting of the Company has or will become unconditionally vested in any Takeover Person and/or any associate of that Takeover Person (as defined in Section 988(1) of the Companies Act). 

“Takeover Event Notice” means a notice to the Holders of the Securities notifying them that a Takeover Event
has occurred and specifying: (1) the identity of the Acquirer; (2) whether the Takeover Event is a Qualifying Takeover Event or not; (3) in the case of a Qualifying Takeover Event, if determined at such time, the New Conversion Price;
and (4) if applicable, the QTE Effective Date. 
 “Takeover Person” includes any individual, company,
corporation, firm, partnership, joint venture, undertaking, association, organization, trust, state or agency of a state (in each case whether or not being a separate legal entity) or other legal entity. 

  
 - 17 - 

 “Tax Event” has the meaning set forth in
Section 2.05(a) hereof. 
 “Tier 1 Capital” means Tier 1 capital for the purposes of the Capital
Regulations. 
 “Tradable Amount” has the meaning set forth in 2.01(j) hereof. 

“Trustee” has the meaning set forth in the first paragraph of this Third Supplemental Indenture. 

“Volume Weighted Average Price” means, in respect of an Ordinary Share (or an Approved Entity Share, as
applicable) on any Dealing Day, the order book volume-weighted average price of an Ordinary Share (or Approved Entity Shares, as applicable) published by or derived from the relevant page on Bloomberg or such
other source as shall be determined in good faith to be appropriate by an Independent Financial Adviser on such Dealing Day, provided that if on any such Dealing Day such price is not available or cannot otherwise be determined as provided above,
the “Volume Weighted Average Price” of an ordinary share (or an Approved Entity Shares, as applicable) in respect of such Dealing Day shall be the volume weighted average price, determined as provided above, on the immediately preceding
Dealing Day on which the same can be so determined or determined as an Independent Financial Adviser might otherwise determine in good faith to be appropriate. 

SECTION 1.02.    Effect of Headings. 

The Article and Section headings herein are for convenience only and shall not affect the construction hereof. 

SECTION 1.03.    Separability Clause. 

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

SECTION 1.04.    Benefits of Instrument. 

Nothing in this Third Supplemental Indenture, express or implied, shall give to any person, other than the parties hereto and their successors
hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under the Indenture. 

SECTION 1.05.    Relation to Base Indenture. 

This Third Supplemental Indenture constitutes an integral part of the Base Indenture. Notwithstanding any other provision of this Third
Supplemental Indenture, all provisions of this Third Supplemental Indenture are expressly and solely for the benefit of the Holders and Beneficial Owners of the Securities and any such provisions shall not be deemed to apply to any other Contingent
Convertible Securities issued under the Base Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose other than with respect to the Securities. 

  
 - 18 - 

 SECTION 1.06.    Construction and Interpretation. Unless the
express otherwise requires: 
 (a)    the words “hereof”, “herein” and “hereunder” and
words of similar import, when used in this Third Supplemental Indenture, refer to this Third Supplemental Indenture as a whole and not to any particular provision of this Third Supplemental Indenture; 

(b)    the terms defined in the singular have a comparable meaning when used in the plural, and vice versa; 

(c)    the terms “U.S. dollars” and “$” and mean United States Dollars; 

(d)    the terms “pounds sterling,” “sterling” and “£” mean British pounds sterling;

 (e)    references herein to a specific Section, Article or Exhibit refer to Sections or Articles of, or an Exhibit
to, this Third Supplemental Indenture; 
 (f)    wherever the words “include”, “includes” or
“including” are used in this Third Supplemental Indenture, they shall be deemed to be followed by the words “without limitation;” 

(g)    references to a Person are also to its successors and permitted assigns; 

(h)    the use of “or” is not intended to be exclusive unless expressly indicated otherwise; 

(i)    for purposes of Article III of this Third Supplemental Indenture, references therein to any act or statute or any
provision of any act or statute shall be deemed also to refer to any statutory modification or re-enactment thereof or any statutory instrument, order or regulation made thereunder or under such modification
or re-enactment; and 
 (j)    references to any issue or offer or grant to
Shareholders “as a class” or “by way of rights” shall be taken to be references to an issue or offer or grant to all or substantially all Shareholders, as the case may be, other than Shareholders, as the case may be, to whom, by
reason of the laws of any territory or requirements of any recognized regulatory body or any other stock exchange or securities market in any territory or in connection with fractional entitlements, it is determined not to make such issue or offer
or grant. 

  
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 ARTICLE II 

£1,000,000,000 7.125% FIXED RATE RESETTING PERPETUAL SUBORDINATED 

CONTINGENT CONVERTIBLE SECURITIES (CALLABLE JUNE 15, 2025 AND 

EVERY FIVE YEARS THEREAFTER) 

SECTION 2.01.    Creation of Series; Establishment of Form. 

(a)    There is hereby established a new series of Contingent Convertible Securities under the Base Indenture entitled the
“£1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities (Callable June 15, 2025 and Every Five Years Thereafter).” 

(b)    The Securities shall be issued initially in the form of one registered Global Security that shall be deposited with
the Common Depositary on the Issue Date. The Global Security shall be initially registered in the name of The Bank of New York Depositary (Nominees) Limited, a nominee of the Common Depositary, and executed and delivered in substantially the form
attached hereto as Exhibit A. 
 (c)    The Company shall issue the Securities in an aggregate principal amount
of £1,000,000,000. The Company may from time to time, without the consent of the Holders of the Securities, issue additional securities having the same ranking and same interest rate, interest cancellation terms, redemption terms, Conversion
Price and other terms as the Securities described in this Third Supplemental Indenture, except for the price to public and date of issue. Any such additional securities subsequently issued shall rank equally and ratably with the Securities in all
respects, so that such further securities shall be consolidated and form a single series with the Securities. 

(d)    Any proposed transfer of an interest in Securities held in the form of a Global Security deposited with the Common
Depositary shall be effected in the ordinary way following the applicable rules and operating procedures of Clearstream, Luxembourg and/or Euroclear. 

(e)    The Securities shall not have a sinking fund. 

(f)    The Securities shall be issued on June 13, 2019 (the “Issue Date”). 

(g)    The Securities shall have no fixed maturity or fixed redemption date, and shall not be redeemable except as
provided in Sections 2.04, 2.05 and 2.06 hereof. 
 (h)    The interest rate on the Securities shall be determined as
set forth in Section 2.02(a) hereof. 

  
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 (i)    The Securities shall be issued in denominations of £200,000
in principal amount and integral multiples of £1,000 in excess thereof. The denominations cannot be changed without the consent of the Trustee. 

(j)    The denomination of each interest in a Global Security shall be the “Tradable Amount” of such book-entry interest. Prior to an Automatic Conversion, the aggregate Tradable Amount of the interests in each Global Security shall be equal to such Global Security’s outstanding principal amount. Following an
Automatic Conversion, the principal amount of each Security shall be zero, but the Tradable Amount of the book- entry interests in each Security shall remain unchanged as a result of the Automatic Conversion.

 (k)    For the avoidance of doubt, references to “Foreign Currency” in the Base Indenture shall mean pounds
sterling for purposes of the Securities. 
 SECTION 2.02.    Interest. 

(a)    From (and including) the Issue Date to (but excluding) June 15, 2025 the interest rate on the Securities shall
be 7.125% per annum (the “Initial Interest Rate”). From and including each Reset Date to (but excluding) the next following Reset Date (each such period, a “Reset Period”), the applicable per annum interest rate
(the “Subsequent Interest Rate”) will, subject to Section 2.02(b) herein, be equal to the sum, as determined by the Calculation Agent, of the applicable Reference Bond Rate on the relevant Reset Determination Date and 6.579%
(the “Margin”). Each Subsequent Interest Rate shall be determined in compliance with the relevant Capital Regulations. Subject to Sections 3.12 and 3.13 of the Base Indenture and the penultimate sentence of this paragraph, interest,
if any, shall be payable quarterly in arrear on March 15, June 15, September 15 and December 15 of each year (each, an “Interest Payment Date”), commencing on September 15, 2019; provided that
if such Interest Payment Date is not a Business Day, the Interest Payment Date shall be postponed to the next Business Day, but interest on that payment will not accrue during the period from and after the Interest Payment Date. Subject to Sections
3.12 and 3.13 of the Base Indenture, the interest rate on the Securities, if any, will be computed and payable as follows: 

(i)    If the Calculation Period is equal to or shorter than the Regular Period during which it falls,
interest on the Securities, if any, will be computed and payable on the basis of the number of days in the Calculation Period, divided by the product of (1) the number of days in the Regular Period in which the Calculation Period falls and
(2) four; or 
 (ii)    If the Calculation Period is longer than one Regular Period, interest on the
Securities, if any, will be computed and payable on the basis of the sum of: (A) the number of days in such Calculation Period falling in the Regular Period in which it begins divided by the product of (1) the number of days in such
Regular Period and (2) four; and (B) the number of days in such Calculation Period falling in the next Regular Period divided by the product of (1) the number of days in such Regular Period and (2) four. 

  
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 The first date on which interest may be paid will be September 15, 2019 for the period commencing on
(and including) June 13, 2019, and ending on (but excluding) September 15, 2019 (and thus a long first interest period). If a date of redemption is not a Business Day, the Company may pay interest (if any) and principal on the next
Business Day, but interest on that payment will not accrue during the period from and after the date of redemption. 

(b)    In addition to any other restrictions on payments of principal and interest contained in the Indenture, no
repayment of the principal amount of the Securities or payment of interest on the Securities shall become due and payable after the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority
unless such repayment or payment would be permitted to be made by the Company under the laws and regulations of the United Kingdom and the European Union applicable to the Company. 

SECTION 2.03.    Payment of Principal, Interest and Other Amounts. 

(a)    Payments of principal of and interest, if any, on the Securities shall be made in such coin or currency of the
United Kingdom as at the time of payment is legal tender for payment of public and private debts and such payments on Securities represented by a Global Security shall be made through one or more Paying Agents appointed under the Base Indenture to
the Clearing Systems, or the Common Depositary or its nominee, as the Holder or Holders of the Global Security. Initially, the Paying Agent for the Securities shall be The Bank of New York Mellon, London Branch, One Canada Square, London E14 5AL,
United Kingdom and the Contingent Convertible Security Registrar shall be The Bank of New York Mellon SA/NV, Luxembourg Branch, Vertigo Building, Polaris 2-4, rue Eugène Ruppert, L-2453 Luxembourg, Luxembourg. The Company may change the Paying Agent without prior notice to the Holders of the Securities, and in such an event the Company may act as Paying Agent or Contingent Convertible
Security Registrar. Payments of principal of and interest on the Securities represented by a Global Security shall be made by wire transfer of immediately available funds; provided, however, that in the case of payments of principal,
such Global Security is first surrendered to the Paying Agent. 
 (b)    If, on any date on which a payment in respect
of the Securities is contemplated, sterling is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or is no longer used for the settlement of transactions by public
institutions within the international banking community, then all payments in respect of the Securities will be made in U.S. dollars until sterling is again available to the Company or so used. The amount payable on any date in sterling will be
converted into U.S. dollars at the Prevailing Rate as of the close of business on the second Payment Business Day prior to the relevant payment date. Any payment in respect of the Securities so made in U.S. dollars will not constitute a Default
under the Indenture or the Securities. Neither the Trustee nor the Paying Agent will be responsible for obtaining exchange rates, effecting currency conversions or otherwise handling re-denominations. 

SECTION 2.04.    Optional Redemption. Subject to the limitations specified in Section 2.07 of this Third
Supplemental Indenture and Section 11.08 of the Base Indenture, the Company may, at the Company’s option, redeem the Securities, in whole but not in part, on any Reset Date at a redemption price equal to 100% of the principal amount of the
Securities then Outstanding, together with any accrued but unpaid interest (which excludes any interest cancelled or deemed cancelled as described in Sections 3.12 and 3.13 of the Base Indenture to (but excluding) the date fixed for redemption. 

  
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 SECTION 2.05.    Optional Tax Redemption. 

(a)    Subject to Section 2.07 of this Third Supplemental Indenture and Section 11.08 of the Base Indenture, the
Company may, at any time, at the Company’s option, redeem the Securities, in whole but not in part, at a redemption price equal to 100% of the principal amount of the Securities then Outstanding, together with any accrued but unpaid interest
(which excludes any interest cancelled or deemed cancelled as described in Sections 3.12 and 3.13 of the Base Indenture) to (but excluding) the date fixed for redemption, if the Company determines that as a result of a change in, or amendment to,
the laws or regulations of a Taxing Jurisdiction, including any treaty to which the relevant Taxing Jurisdiction is a party, or a change in an official application of those laws or regulations, including any decision of any court or tribunal, which
becomes effective on or after the Issue Date (and, in the case of a successor entity, which becomes effective on or after the date of such successor entity’s assumption of the Company’s obligations): 

(i)    the Company will or would be required to pay to Holders of the Securities Additional Amounts; 

(ii)    the Company would not be entitled to claim a deduction in respect of any payments in respect of the
Securities in computing the Company’s taxation liabilities or the value of such deduction would be materially reduced; 

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

(iv)    the Company would, in the future, have to bring into account a taxable credit if the principal
amount of the Securities were written down or if the Securities were converted into Conversion Shares, or 

(v)    the Securities or any part thereof would become treated as a derivative or an embedded derivative
for U.K. tax purposes, 
 (each such change in tax law or regulation or the official application thereof, a “Tax Event”); provided,
however, that the Securities may only be redeemed pursuant to this Section 2.05 if, in the case of each Tax Event, the consequences of the Tax Event cannot be avoided by the Company’s taking reasonable measures available to the
Company. 
 (b)    Prior to the delivery of any notice of redemption as a result of a Tax Event the Company shall
deliver to the Trustee an opinion of independent counsel of recognized standing, chosen by the Company, in a form satisfactory to the Trustee, confirming that the Company is entitled to exercise its right of redemption under this Section 2.05.

  
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 SECTION 2.06.    Regulatory Event Redemption. Subject to
Section 2.07 of this Third Supplemental Indenture and Section 11.08 of the Base Indenture, the Company may, at the Company’s option, at any time, redeem the Securities, in whole but not in part, at a redemption price equal to 100% of
the principal amount of the Securities then Outstanding, together with any accrued but unpaid interest (which excludes any interest cancelled or deemed cancelled as described in Sections 3.12 and 3.13 of the Base Indenture) to (but excluding) the
date fixed for redemption, if, on or after the Issue Date, there is a change in the regulatory classification of the Securities that does, or would be likely to, result in the whole or any part of the outstanding aggregate principal amount of the
Securities at any time being excluded from, or ceasing to count towards, the Group’s Tier 1 Capital (a “Regulatory Event”). 

SECTION 2.07.    Notice of Redemption. 

(a)    Before the Company may redeem the Securities pursuant to Sections 2.04, 2.05 or 2.06, the Company shall deliver via
Clearstream, Luxembourg and/or Euroclear (or, if the Securities are definitive Securities, to the Holders at their addresses shown on the Contingent Convertible Security Register) prior notice of not less than thirty (30) days, nor more than
sixty (60) days to the Holders of the Securities. The Company shall deliver written notice of such redemption of the Securities to the Trustee at least five (5) Business Days prior to the date on which the relevant notice of redemption is
sent to Holders (unless a shorter notice period shall be satisfactory to the Trustee). Such notice shall specify the Company’s election to redeem the Securities and the date fixed for such redemption and shall be irrevocable except in the
limited circumstances described in Sections 11.04(d), (e) and (f) of the Base Indenture. The Company shall not be entitled to deliver a notice of redemption after an Automatic Conversion Notice has been delivered. 

(b)    If any event specified in Sections 11.04(d), (e) and (f) of the Base Indenture occurs, the Company shall
promptly deliver notice to the Holders of the Securities via Clearstream, Luxembourg and/or Euroclear (or, if the Securities are definitive Securities, to the Holders at their addresses shown on the Contingent Convertible Security Register) and to
the Trustee directly, specifying the occurrence of the relevant event. 
 SECTION 2.08.    Automatic Conversion
upon Capital Adequacy Trigger Event. 
 (a)    If a Capital Adequacy Trigger Event has occurred, then the Automatic
Conversion shall occur on the Conversion Date, at which point all of the Company’s obligations under the Securities (other than the CSO Obligations, if any) shall be irrevocably and automatically released in consideration of the Company’s
issuance of the Conversion Shares to the Conversion Shares Depository (or to the relevant recipient in accordance with the terms of the Securities) on the Conversion Date at the Conversion Price. Under no circumstances shall such released
obligations be reinstated. If the Company has been unable to appoint a Conversion Shares Depository, it shall make such other arrangements for the issuance and/or delivery of the Conversion Shares or Conversion Shares Offer Consideration, as
applicable, to the Holders of the Securities as it shall consider reasonable in the circumstances (including, without limitation, 

  
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issuance of the Conversion Shares to another nominee or to the Holders of the Securities directly), and such issuance shall irrevocably and automatically release all of the Company’s
obligations under the Securities (other than the CSO Obligations, if any) as if the Conversion Shares had been issued to the Conversion Shares Depository. 

(b)    The Automatic Conversion shall occur without delay upon the occurrence of a Capital Adequacy Trigger Event. 

(c)    The Company shall (a) immediately inform the PRA of the occurrence of a Capital Adequacy Trigger Event and
(b) deliver an Automatic Conversion Notice to the Trustee directly and to the Holders through the Clearing Systems as soon as practicable after such time. 

(d)    The date on which the Automatic Conversion Notice shall be deemed to have been given shall be the date on which it
is dispatched by the Company to each of the Clearing Systems (or, if the Securities are definitive Securities, to the Trustee). 

(e)    The Company shall request that each of the Clearing Systems, pursuant to the applicable rules and operating
procedures of such Clearing System then in effect, transmit the Automatic Conversion Notice to the direct participants of such Clearing System holding the Securities at such time. 

(f)    The Automatic Conversion shall occur on the Conversion Date and all of the Company’s obligations under the
Securities (other than the CSO Obligations, if any) shall be irrevocably and automatically released in consideration of the Company’s issuance of the Conversion Shares to the Conversion Shares Depository (or to the relevant recipient in
accordance with the terms of the Securities), and the principal amount of the Securities shall equal zero at all times thereafter (for the avoidance of doubt, the Tradable Amount shall remain unchanged) as a result of the Automatic Conversion. 

(g)    Within ten (10) Business Days following the Conversion Date, the Company shall deliver a Conversion Shares
Offer Notice to the Trustee directly and to the Holders of the Securities through the Clearing Systems (or, if the Securities are definitive Securities, by the Company to the Trustee directly and to the Holders at their addresses shown on the
Contingent Convertible Security Register). 
 (h)    The Conversion Shares shall initially be registered in the name of
the Conversion Shares Depository (or the relevant recipient in accordance with the terms of the Securities, as applicable) and each Holder and Beneficial Owner of the Securities shall be deemed to have irrevocably directed the Company to issue the
Conversion Shares corresponding to the conversion of its holding of Securities to the Conversion Shares Depository (or to such other relevant recipient). 

(i)    The Conversion Shares Depository (or the relevant recipient in accordance with the terms of the Securities, as
applicable) shall hold the Conversion Shares on behalf of the Holders and Beneficial Owners of the Securities, who shall be entitled to direct (each in respect of their pro rata share of the Conversion Shares) the Conversion Shares Depository
or such other relevant recipient, as applicable, to exercise on their behalf all rights of an ordinary shareholder 

  
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(including voting rights and rights to receive dividends); provided, however, that Holders and Beneficial Owners shall not be able to sell or otherwise transfer the Conversion
Shares until such time as the Conversion Shares have been delivered to the Holders or Beneficial Owners in accordance with the procedures set forth under Section 2.11 hereof. A Holder or Beneficial Owner’s pro rata share of the Conversion
Shares at any particular time shall be determined based on the aggregate amount of the Tradable Amount of the Securities held by such Holder or Beneficial Owner as a proportion of the aggregate amount of the Tradable Amount of all Securities
outstanding at the relevant time rounded down, if necessary, to the nearest whole number of Conversion Shares. 

(j)    Provided that the Company issues the Conversion Shares to the Conversion Shares Depository (or the relevant
recipient in accordance with the terms of the Securities) in accordance with the terms of the Securities, with effect from the Conversion Date, Holders and Beneficial Owners of the Securities shall have recourse only to the Conversion Shares
Depository (or to such other relevant recipient, as applicable) for the delivery to them of Conversion Shares or, if the Company elects that a Conversion Shares Offer be made, of any Conversion Shares Offer Consideration to which such Holders and
Beneficial Owners are entitled. 
 (k)    Effective upon, and following, the occurrence of the Automatic Conversion,
Holders and Beneficial Owners shall not have any rights against the Company with respect to repayment of the principal amount of the Securities or payment of interest or any other amount on or in respect of such Securities, which liabilities of the
Company shall be irrevocably and automatically released, and accordingly the principal amount of the Securities shall equal zero at all times thereafter. Any interest in respect of an interest period ending on any Interest Payment Date falling
between the date of a Capital Adequacy Trigger Event and the Conversion Date shall be deemed to have been cancelled pursuant to Section 3.12 of the Base Indenture upon the occurrence of such Capital Adequacy Trigger Event and shall not be due
and payable. 
 (l)    By subscribing for, purchasing or otherwise acquiring the Securities, each Holder and each
Beneficial Owner shall be deemed to have (i) consented to (x) Automatic Conversion of its Securities following a Capital Adequacy Trigger Event and (y) the appointment of the Conversion Shares Depository, the issuance of the
Conversion Shares to the Conversion Shares Depository and the potential sale of the Conversion Shares pursuant to a Conversion Shares Offer and acknowledged that such events in (x) and (y) may occur without any further action on the part of
such Holders or Beneficial Owners or the Trustee and (ii) authorized, directed and requested each of the Clearing Systems and their respective direct or indirect participants or other intermediary through which it holds such Securities to take
any and all necessary action, if required, to implement the Automatic Conversion without any further action or direction on the part of such Holder or Beneficial Owner or the Trustee. 

(m)    The procedures set forth in this Section 2.08 are subject to change to reflect changes in the Clearing
Systems’ practices, and the Company may make changes to the procedures set forth in this Section 2.08 to the extent reasonably necessary, in the opinion of the Company, to reflect such changes in the Clearing Systems’ practices. 

  
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 (n)    Notwithstanding anything to the contrary contained in the
Indenture or the Securities, once the Company has delivered an Automatic Conversion Notice to each of the Clearing Systems following the occurrence of a Capital Adequacy Trigger Event (or following an Automatic Conversion (if sooner)), (i) the
Holders and Beneficial Owners shall have no rights whatsoever under the Indenture or the Securities to instruct the Trustee to take any action whatsoever and (ii) as of the date of the Automatic Conversion Notice, except for any indemnity
and/or security provided by any Holder or by any Beneficial Owner in such direction or related to such direction, any direction previously given to the Trustee by any Holders or by any Beneficial Owners shall cease automatically and shall be null
and void and of no further effect; except in each case of (i) and (ii) of this Section 2.08(n), with respect to any rights of Holders or Beneficial Owners with respect to any payments under the Securities that were unconditionally due and
payable prior to the date of the Automatic Conversion Notice or unless the Trustee is instructed in writing by the Company to act otherwise. 

(o)    On or (if reasonably practicable) prior to delivering the Automatic Conversion Notice, the Company shall deliver to
the Trustee a certificate signed by two Authorized Officers, in the form attached hereto as Exhibit C, specifying that a Capital Adequacy Trigger Event has occurred (the “Capital Adequacy Trigger Event Officers’
Certificate”). The Trustee is entitled to conclusively rely on and accept such Capital Adequacy Trigger Event Officers’ Certificate without any duty whatsoever of further inquiry as sufficient and conclusive evidence of the occurrence
of a Capital Adequacy Trigger Event, and such Capital Adequacy Trigger Event Officers’ Certificate shall be conclusive and binding on the Trustee, the Holders and the Beneficial Owners. 

(p)    All authority conferred or agreed to be conferred by each Holder and Beneficial Owner pursuant to this
Section 2.08, including the consents given by such Holder and Beneficial Owner, shall be binding upon the successors, assigns, heirs, executors, administrators, trustees in bankruptcy and legal representatives of such Holder and Beneficial
Owner. 
 (q)    The Trustee shall not be liable with respect to (i) the calculation or accuracy of the Fully
Loaded CET1 Ratio in connection with the occurrence of a Capital Adequacy Trigger Event and the timing of such Capital Adequacy Trigger Event, (ii) the failure of the Company to post or deliver the underlying Fully Loaded CET1 Ratio
calculations of a Capital Adequacy Trigger Event to the Clearing Systems, the Holders or the Beneficial Owners, (iii) any aspect of the Company’s decision to deliver an Automatic Conversion Notice or the related Automatic Conversion or
(iv) the adequacy of the disclosure of these provisions in the Prospectus Supplement or for the direct or indirect consequences thereof. 

(r)    Following the issuance of the Conversion Shares to the Conversion Shares Depository (or to the relevant recipient
in accordance with the terms of the Securities) on the Conversion Date, the Securities shall remain in existence until the applicable Cancellation Date for the sole purpose of evidencing (a) the Holders’ and Beneficial Owners’ right
to receive Conversion Shares or Conversion Shares Offer Consideration, as applicable, from the Conversion Shares Depository (or such other relevant recipient, as applicable) and (b) the Company’s CSO Obligations, if any. 

  
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 (s)    The Holders and Beneficial Owners shall not at any time have the
option to convert to the Securities into Conversion Shares. 
 (t)    The occurrence of an Automatic Conversion shall
not constitute a Default. 
 (u)    Notwithstanding any other provision herein, by subscribing for, purchasing or
otherwise acquiring the Securities, each Holder and each Beneficial Owner (i) agrees to all of the terms of the Securities, including, without limitation, those related to (x) the occurrence of a Capital Adequacy Trigger Event and any
related Automatic Conversion and (y) the appointment of the Conversion Shares Depository, the issuance of the Conversion Shares to the Conversion Shares Depository (or to the relevant recipient in accordance with the terms of the Securities)
and the potential sale of the Conversion Shares pursuant to a Conversion Shares Offer, (ii) agrees that effective upon, and following, the occurrence of the Automatic Conversion, no amount shall be due and payable to the Holders or the
Beneficial Owners under the Securities and the liability of the Company to pay any such amounts (including the principal amount of, or any interest in respect of, the Securities) shall be automatically released, and the Holders and the Beneficial
Owners shall not have the right to give any direction to the Trustee with respect to the Capital Adequacy Trigger Event and any related Automatic Conversion and (iii) waives, to the extent permitted by the Trust Indenture Act, any claim against
the Trustee arising out of its acceptance of its trusteeship for the Securities, including, without limitation, claims related to or arising out of or in connection with a Capital Adequacy Trigger Event and/or any Automatic Conversion. 

SECTION 2.09.    Conversion Shares. 

(a)    The number of Conversion Shares to be issued to the Conversion Shares Depository on the Conversion Date shall be
determined by dividing the (i) aggregate principal amount of the Outstanding Securities immediately prior to the Automatic Conversion on the Conversion Date by (ii) the Conversion Price rounded down, if necessary, to the nearest whole
number of Conversion Shares. Fractions of Conversion Shares shall not be issued following an Automatic Conversion and no cash payment shall be made in lieu thereof. Upon Automatic Conversion on the Conversion Date, the number of Conversion Shares to
be held by the Conversion Shares Depository for the benefit of each Holder shall be the number of Conversion Shares thus calculated multiplied by a fraction equal to the aggregate amount of the Tradable Amount of the
book-entry interests in the Securities held by such Holder on the Conversion Date divided by the aggregate amount of the Tradable Amount of the book-entry interests of
all the Outstanding Securities immediately prior to the Automatic Conversion on the Conversion Date rounded down, if necessary, to the nearest whole number of Conversion Shares. 

(b)    The Conversion Shares issued following an Automatic Conversion shall be fully paid and non-assessable and shall in all respects rank pari passu with the fully paid Ordinary Shares of the Company in issue on the Conversion Date, except in any such case for any right excluded by mandatory
provisions of applicable law, and except that the Conversion Shares so issued shall not rank for (or, as the case may be, the relevant Holder or Beneficial Owner shall not be entitled to receive) any rights, the entitlement to which falls prior to
the Conversion Date. 

  
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 (c)    Subject to Section 3.05, if a Qualifying Takeover Event
occurs, and the Conversion Date falls on or after the QTE Effective Date, then in such case Approved Entity Shares of the Approved Entity shall be issued to the Conversion Shares Depository on the Conversion Date instead of Conversion Shares with
the same effect as if Conversion Shares had been issued pursuant to Section 2.09(a) above. 
 (d)    The Conversion
Shares or the Conversion Shares Offer Consideration, as the case may be, will be delivered to Holders pursuant to the procedures set forth in Section 2.11 below. 

SECTION 2.10.    Conversion Shares Offer. 

(a)    No later than 10 (ten) Business Days following the Conversion Date, the Company may, in its sole and absolute
discretion and following the occurrence of an Automatic Conversion, elect that the Conversion Shares Depository make an offer of all or some of the Conversion Shares to all or some of the Company’s ordinary shareholders at a cash price per
Conversion Share equal to the Conversion Price, subject as provided in this Section 2.10 (the “Conversion Shares Offer”). The Company may, on behalf of the Conversion Shares Depository, appoint a Conversion Shares Offer Agent
to act as placement or other agent to facilitate the Conversion Shares Offer. The Company will deliver a Conversion Shares Offer Notice to the Trustee directly and to the Holders of the Securities through the Clearing Systems within ten
(10) Business Days following the Conversion Date specifying whether or not it has elected that a Conversion Shares Offer be conducted. If the Company elects a Conversion Shares Offer to be conducted, the Conversion Shares Offer Period, during
which time the Conversion Shares Offer may be made, shall end no later than forty (40) Business Days following the delivery of the Conversion Shares Offer Notice. 

(b)    Any Conversion Shares Offer shall be made subject to applicable laws and regulations in effect at the relevant time
and shall be conducted, if at all, only to the extent that the Company, in its sole and absolute discretion, determines that the Conversion Shares Offer is practicable. The Company or the purchasers of the Conversion Shares sold in any Conversion
Shares Offer shall bear the costs and expenses of any Conversion Shares Offer (with the exception of any stamp duty, stamp duty reserve tax, or any other capital, issue, transfer, registration, financial transaction or documentary tax that may arise
or be paid as a consequence of the transfer of Conversion Shares to the Conversion Shares Depository as a consequence of the Conversion Shares Offer), including the fees of the Conversion Shares Offer Agent, if any. If a prospectus or other offering
document is required to be prepared in connection with a Conversion Shares Offer, the Company shall facilitate the preparation of such prospectus or other offering document, and the Company and/or its directors shall take responsibility for such
prospectus or other offering document, in each case, if and to the extent then required by applicable laws and regulations then in effect. If so requested by the Conversion Shares Depository as offeror, the Company shall indemnify the Conversion
Shares Depository for any losses incurred in connection with any Conversion Shares Offer. 
 (c)    Upon completion of
the Conversion Shares Offer, the Company or the Conversion Shares Depository shall provide notice to the Holders of the Securities of the composition of the Conversion Shares Offer Consideration (and of the deductions to the Cash

  
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Component, if any, of the Conversion Shares Offer Consideration (as set out in the definition of “Conversion Shares Offer Consideration” in Section 1.01)) per £1,000
Tradable Amount of the Securities. The Company reserves the right, in its sole and absolute discretion, to terminate the Conversion Shares Offer at any time during the Conversion Shares Offer Period by providing at least three (3) Business
Days’ notice to the Trustee directly and to the Holders of the Securities through the Clearing Systems (or, if the Securities are definitive Securities, by the Company to the Trustee directly and to the Holders at their addresses shown on the
Contingent Convertible Security Register), and, if it does so, the Company may, in its sole and absolute discretion, take steps (including, without limitation, changing the Suspension Date) to deliver to Holders and Beneficial Owners (or the
custodian, nominee, broker or other representative thereof) of the Securities the Conversion Shares at a time that is earlier than the time at which such Holders and Beneficial Owners (or the custodian, nominee, broker or other representative
thereof) would have otherwise received the Conversion Shares Offer Consideration, had the Conversion Shares Offer been completed. 

(d)    If the Company elects, in its sole and absolute discretion, that a Conversion Shares Offer be conducted by the
Conversion Shares Depository, each Holder or Beneficial Owner, by subscribing for, purchasing or otherwise acquiring the Securities, shall be deemed to have: (i) irrevocably consented to (x) any Conversion Shares Offer and to the
Conversion Shares Depository’s using the Conversion Shares to settle any Conversion Shares Offer in accordance with the terms of the Securities and (y) the transfer of the beneficial interest it holds in the Conversion Shares to the
Conversion Shares Depository in connection with the Conversion Shares Offer in accordance with the terms of the Securities, and (ii) irrevocably agreed that (x) the Company, the Conversion Shares Depository and the Conversion Shares Offer
Agent, if any, may take any and all actions necessary to conduct the Conversion Shares Offer in accordance with the terms of the Securities, (y) none of the Company, the Trustee, the Conversion Shares Depository or the Conversion Shares Offer
Agent, if any, shall, to the extent permitted by applicable law, incur any liability to the Holders or Beneficial Owners in respect of the Conversion Shares Offer (except for the obligations of the Conversion Shares Depository in respect of the
Holders’ and Beneficial Owners’ entitlement to any Conversion Shares Offer Consideration) and (z) each of the Clearing Systems and their respective direct or indirect participants or other intermediary through which it holds such
Securities is authorized, directed and requested to take any and all necessary action, if required, to implement the Automatic Conversion (including any related Conversion Shares Offer). 

SECTION 2.11.    Settlement Procedure. 

(a)    Delivery of the Conversion Shares or Conversion Shares Offer Consideration, as applicable, to the Holders and
Beneficial Owners of the Securities shall be made in accordance with the procedures set forth in this Section 2.11, which remain subject to change to reflect changes in clearing system practices. 

(b)    The Conversion Shares Offer Notice shall specify the Suspension Date. 

(c)    On the Suspension Date, the Company shall deliver, to the Trustee directly and to the Holders and of the Securities
through the Clearing Systems (or, if the Securities are definitive Securities, by cheque mailed to the Holders at their addresses shown on the Contingent 

  
 - 30 - 

 
Convertible Security Register) a Conversion Shares Settlement Request Notice, pursuant to which the Company shall request that Holders and Beneficial Owners complete a Conversion Shares
Settlement Notice and shall specify the Notice Cut-off Date and the Final Cancellation Date. 

(d)    Holders and Beneficial Owners (or the custodian, nominee, broker or other representative thereof) shall not receive
delivery of the relevant Conversion Shares or Conversion Shares Component, as applicable, unless such Holders or Beneficial Owners (or the custodian, nominee, broker or other representative thereof) deliver the applicable Conversion Shares
Settlement Notice to the Conversion Shares Depository on or before the Notice Cut-off Date; provided that, if such delivery is made after the end of normal business hours at the specified office of the
Conversion Shares Depository, such delivery shall be deemed for all purposes to have been made or given on the next following Business Day. 

(e)    With respect to any Securities held through the Clearing Systems, the Conversion Shares Settlement Notice must be
given in accordance with the respective standard procedures of each of the Clearing Systems (which may include, without limitation, delivery of the notice to the Conversion Shares Depository by electronic means) and in a form acceptable to each of
the Clearing Systems and the Conversion Shares Depository. With respect to any definitive Securities, the Conversion Shares Settlement Notice must be delivered to the specified office of the Conversion Shares Depository together with the relevant
Securities. 
 (f)    Subject to satisfaction of the requirements and limitations set forth in this Section 2.11
and provided that the Conversion Shares Settlement Notice and the relevant Securities, if applicable, are delivered on or before the Notice Cut-Off Date, the Conversion Shares Depository shall deliver the
relevant Conversion Shares (rounded down to the nearest whole number of Conversion Shares) or Conversion Shares Component (rounded down to the nearest whole number of Conversion Shares), as applicable, to the Holder or Beneficial Owner (or
custodian, nominee, broker or other representative thereof) of the relevant Securities completing the relevant Conversion Shares Settlement Notice or its nominee in accordance with the instructions given in such Conversion Shares Settlement Notice
on the applicable Conversion Shares Settlement Date. 
 (g)    Each Conversion Shares Settlement Notice shall be
irrevocable. The Conversion Shares Depository shall determine, in its sole and absolute discretion, whether any Conversion Shares Settlement Notice has been properly completed and delivered, and such determination shall be conclusive and binding on
the relevant Holder or Beneficial Owner. If any Holder or Beneficial Owner fails to properly complete and deliver a Conversion Shares Settlement Notice and the relevant Securities, if applicable, the Conversion Shares Depository shall be entitled to
treat such Conversion Shares Settlement Notice as null and void. 
 (h)    Neither the Company, nor any member of the
Group shall be liable for any stamp duty, stamp duty reserve tax, or any other capital, issue, transfer, registration, financial transaction or documentary tax that may arise or be paid as a consequence of the delivery of Conversion Shares or
Conversion Shares Component, as applicable, which tax shall be borne solely by the Holder, Beneficial Owner or, if different, the person to whom the Conversion Shares or that portion, if any, of any Conversion Shares Offer Consideration consisting
of Conversion Shares, as applicable, is delivered. 

  
 - 31 - 

 (i)    The Conversion Shares and any Conversion Shares Component shall
not be available for delivery (i) to, or to a nominee for, Euroclear or Clearstream, Luxembourg or any other person providing a clearance service within the meaning of Section 96 of the Finance Act 1986 of the United Kingdom or
(ii) to a person, or nominee or agent for a person, whose business is or includes issuing depository receipts within the meaning of Section 93 of the Finance Act 1986 of the United Kingdom, in each case at any time prior to the
“abolition day” as defined in Section 111(1) of the Finance Act 1990 of the United Kingdom, or, if earlier, such other time at which the Company, in its absolute discretion, determines that no charge under Section 67, 70, 93 or
96 of the Finance Act 1986 or any similar charge (under any successor legislation) would arise as a result of such delivery or (iii) to the CREST account of such a person described in (i) or (ii). 

(j)    The Company may make changes to the procedures set forth in this Section 2.11 to the extent such changes are
reasonably necessary, in the opinion of the Company, to effect the delivery of the Conversion Shares or Conversion Shares Offer Consideration, as applicable, to the Holders and Beneficial Owners of the Securities. 

SECTION 2.12.    Failure to Deliver a Conversion Shares Settlement Notice. If any Holder or Beneficial Owner
(or custodian, nominee, broker or other representative thereof) fails to deliver a Conversion Shares Settlement Notice and the relevant Securities, if applicable, to the Conversion Shares Depository on or before the Notice Cut-off Date, the Conversion Shares Depository shall continue to hold the Conversion Shares or any Conversion Shares Component, as applicable to such Holder or Beneficial Owner, until a Conversion Shares Settlement
Notice (and the relevant Securities, if applicable) is so delivered; provided, however, that the relevant Securities shall be cancelled on the Final Cancellation Date, and any Holder or Beneficial Owner (or custodian, nominee, broker
or other representative thereof) of Securities delivering a Conversion Shares Settlement Notice after the Notice Cut-off Date shall be required provide evidence of its entitlement to the relevant Conversion
Shares or the Conversion Shares Component of any Conversion Shares Offer Consideration, as applicable, satisfactory to the Conversion Shares Depository in its sole and absolute discretion in order to receive delivery of such Conversion Shares or of
the Conversion Shares Component of any Conversion Shares Offer Consideration, as applicable. The Company shall have no liability to any Holder or Beneficial Owner of the Securities for any loss resulting from such Holder’s or Beneficial
Owner’s failure to receive any Conversion Shares or Conversion Shares Component of any Conversion Shares Offer Consideration, as applicable, or from any delay in the receipt thereof, in each case as a result of such Holder or Beneficial Owner
(or custodian, nominee, broker or other representative thereof) failing to duly submit a Conversion Shares Settlement Notice and the relevant Securities, if applicable, on a timely basis or at all. 

SECTION 2.13.    Additional Amounts and FATCA Withholding Tax. The Company agrees, to the extent the Company
has actual knowledge of such information, to provide the Paying Agent with sufficient information about any modification to the terms of the Securities for the purposes of determining whether FATCA Withholding Tax applies to any payment of principal
or interest on the Securities. 

  
 - 32 - 

 SECTION 2.14.    DTC. For purposes of the Securities, any
references to “The Depository Trust Company” and “DTC” in the Base Indenture shall be deemed to refer to Clearstream, Luxembourg and/or Euroclear, including references to “DTC” in Section 13.01 of the Base
Indenture. 
 SECTION 2.15.    Depositary. For purposes of the Securities, the term Depositary shall include
Clearstream, Luxembourg and/or Euroclear and references to the “Depositary” in the Base Indenture shall be deemed to refer to Clearstream, Luxembourg and/or Euroclear. 

SECTION 2.16.    Termination of Global Security. Definitive securities representing the Securities will only
be issued in limited circumstances described under Section 3.05(c)(ii) of the Base Indenture, provided that the Company shall not have the option described under Section 3.05(c)(ii)(C) of the Base Indenture to determine in its sole
discretion that the Global Security representing the Securities should be exchanged for definitive Securities. 
 ARTICLE III 

ANTI-DILUTION 

SECTION 3.01.    Adjustment of Conversion Price. Upon the occurrence of any of the events described below, the
Conversion Price shall be adjusted as follows: 
 (a)    If and whenever there shall be a consolidation,
reclassification or subdivision in relation to the Ordinary Shares of the Company, the Conversion Price shall be adjusted by multiplying the Conversion Price in effect immediately prior to such consolidation, reclassification or subdivision by the
following fraction: 
 A 

B 
 where: 

 

	 	A	 is the aggregate number of Ordinary Shares of the Company in issue immediately before such consolidation,
reclassification or subdivision, as the case may be; and 

  

	 	B	 is the aggregate number of Ordinary Shares of the Company in issue immediately after, and as a result of, such
consolidation, reclassification or subdivision, as the case may be. 

 Such adjustment shall become effective on the date
the consolidation, reclassification or subdivision, as the case may be, takes effect. 

  
 - 33 - 

 (b)    If and whenever the Company shall issue any Ordinary Shares
credited as fully paid to the Company’s shareholders as a class by way of capitalization of profits or reserves 
 (including any share premium account
or capital redemption reserve) other than (1) where any such Ordinary Shares are or are to be issued instead of the whole or part of a Cash Dividend which the Company’s shareholders would or could otherwise have elected to receive,
(2) where the Company’s shareholders may elect to receive a Cash Dividend in lieu of such Ordinary Shares or (3) where any such Ordinary Shares are or are expressed to be issued in lieu of a dividend (whether or not a Cash Dividend
equivalent or amount is announced or would otherwise be payable to the Company’s Shareholders, whether at their election or otherwise), the Conversion Price shall be adjusted by multiplying the Conversion Price in effect immediately prior to
such issue by the following fraction: 
 A 

B 
 where: 

 

	 	A	 is the aggregate number of Ordinary Shares of the Company in issue immediately before such issue; and

  

	 	B	 is the aggregate number of Ordinary Shares of the Company in issue immediately after such issue.

 Such adjustment shall become effective on the date of issue of such Ordinary Shares. 

(c)    If and whenever the Company shall issue any Ordinary Shares to all or substantially all of the Company’s
shareholders as a class by way of rights at a price per ordinary share which is less than 95% of the Current Market Price per ordinary share on the Effective Date, the Conversion Price shall be adjusted by multiplying the Conversion Price in effect
immediately prior to the Effective Date by the following fraction: 
 A + B 

A + C 
 where: 

 

	 	A	 is the aggregate number of Ordinary Shares of the Company in issue on the Effective Date;

  

	 	B	 is the aggregate number of Ordinary Shares of the Company that the aggregate consideration (if any) receivable
for the Ordinary Shares issued by way of rights would purchase at such Current Market Price per Ordinary Share on the Effective Date; and 

  

	 	C	 is the number of Ordinary Shares to be issued. 

Such adjustment shall become effective on the Effective Date. 

For the purpose of any calculation of the consideration receivable or price pursuant to this Section 3.01(c), the following provisions
shall apply: 

  
 - 34 - 

	 	(1)	 the aggregate consideration receivable or price for Ordinary Shares issued for cash shall be the amount of such
cash; 

  

	 	(2)	 if the consideration or price determined pursuant to (1) above (or any component thereof) shall be
expressed in a currency other than the Relevant Currency, it shall be converted into the Relevant Currency at the Prevailing Rate on the relevant Effective Date; 

 

	 	(3)	 in determining the consideration or price pursuant to the above, no deduction shall be made for any commissions
or fees (howsoever described) or any expenses paid or incurred for any underwriting, placing or management of the issue of the relevant Ordinary Shares or otherwise in connection therewith 

 

	 	(4)	 the consideration or price shall be determined as provided in clauses (1) – (3) above on the basis of the
consideration or price received, receivable, paid or payable, regardless of whether all or part thereof is received, receivable, paid or payable by or to the Company or another entity; and 

 

	 	(5)	 references herein to “cash” shall be construed as cash consideration within the meaning of
Section 583(3) of the Companies Act. 

 (d)    If and whenever the Company shall pay any
Extraordinary Dividend to shareholders of the Company as a class, the Conversion Price shall be adjusted by multiplying the Conversion Price in effect immediately prior to the Effective Date by the following fraction: 

A – B 

   A 

where: 
  

	 	A	 is the Current Market Price of one Ordinary Share on the Effective Date; and 

 

	 	B	 is the portion of the aggregate Extraordinary Dividend attributable to one ordinary share, with such portion
being determined by dividing the aggregate Extraordinary Dividend by the number of Ordinary Shares entitled to receive the relevant Extraordinary Dividend. If the Extraordinary Dividend shall be expressed in a currency other than the Relevant
Currency, it shall be converted into the Relevant Currency at the Prevailing Rate on the relevant Effective Date. 

  
 - 35 - 

 Such adjustment shall become effective on the Effective Date. 

(e)    Notwithstanding provisions of Sections 3.01(a)–(d) above: 

(i)    where the events or circumstances giving rise to any adjustment pursuant to this section have
already resulted or will result in an adjustment to the Conversion Price or where the events or circumstances giving rise to any adjustment arise by virtue of any other events or circumstances that have already given or will give rise to an
adjustment to the Conversion Price or where more than one event that gives rise to an adjustment to the Conversion Price occurs within such a short period of time that, in the opinion of the Company, a modification to the operation of the adjustment
provisions is required to give the intended result, such modification shall be made to the operation of the adjustment provisions as may be determined in good faith by an Independent Financial Adviser to be in its opinion appropriate to give the
intended result; 
 (ii)    such modification shall be made to the operation of the Indenture as may be
determined in good faith by an Independent Financial Adviser to be in its opinion appropriate to ensure that an adjustment to the Conversion Price or the economic effect thereof shall not be taken into account more than once; 

(iii)    for the avoidance of doubt, the issue of Ordinary Shares following an Automatic Conversion or upon
any conversion or exchange or the exercise of any other options, warrants or other rights shall not result in an adjustment to the Conversion Price; 

(iv)    in respect of any adjustment pursuant to
Sections 3.01(a)-(c) above, such adjustment shall be made only up to the extent it does not result in a Conversion Price that, if applied to the number of relevant Securities at the time of such
adjustment, would result in a number of Conversion Shares that constitutes a greater proportion of Conversion Shares as a percentage of the total number of Ordinary Shares issued had the adjustment not been made nor had the corporate event occurred;
and 
 (v)    in respect of any adjustment pursuant to Section 3.01(d) above, such adjustment shall
be made only up to the extent it does not result in a Conversion Price that, if applied to the number of relevant Securities at the time of such adjustment, would result in the issue of an additional number of Conversion Shares having a value that
is greater than the value of the aggregate Extraordinary Dividend which would be attributable to the Ordinary Shares underlying the Securities had such Ordinary Shares been issued. 

SECTION 3.02.    No Retroactive Adjustments. The Company shall not issue any additional Conversion Shares if
the Automatic Conversion occurs after the record date in respect of any consolidation, reclassification or subdivision as described in Section 3.01(a) above, or after the record date or other due date for the establishment of entitlement for
any such issue, distribution, grant or offer (as the case may be) as is described in Sections 3.01(b)–(d) above, but before the relevant adjustment to the Conversion Price becomes effective under such Section. 

  
 - 36 - 

 SECTION 3.03.    Decision of an Independent Financial
Advisor. If any doubt shall arise as to whether an adjustment is required to be made to the Conversion Price or as to the appropriate adjustment to the Conversion Price, and following consultation between the Company and an Independent Financial
Adviser, a written opinion of such Independent Financial Adviser in respect thereof is delivered, such written opinion shall be conclusive and binding on the Company, the Trustee and the Holders and Beneficial Owners, save in the case of manifest
error. 
 SECTION 3.04.    Rounding Down and Notice of Adjustment to the Conversion Price. 

(a)    On any adjustment to the Conversion Price as provided under this Article III, if the resultant Conversion Price is
a number with more decimal places than the initial Conversion Price, that number shall be rounded to the same number of decimal places as the initial Conversion Price. No adjustment shall be made to the Conversion Price where such adjustment
(rounded down if applicable) would be less than 1% of the Conversion Price then in effect. Any adjustment not required to be made, and/or any amount by which the Conversion Price has been rounded down, shall be carried forward and taken into account
in any subsequent adjustment, and such subsequent adjustment shall be made on the basis that the adjustment not required to be made had been made at the relevant time and/or, as the case may be, that the relevant rounding down had not been made.

 (b)    Notice of any adjustments to the Conversion Price shall be given by the Company to Holders via each Clearing
System (or, if the Securities are definitive Securities, via the Trustee) promptly after the determination thereof. 

(c)    The Conversion Price shall not in any event be reduced to below the nominal value of the Ordinary Shares. 

SECTION 3.05.    Qualifying Takeover Event. 

(a)    Within ten (10) Business Days following the occurrence of a Takeover Event, the Company shall give notice
thereof to the Holders and Beneficial Owners of the Securities by means of a Takeover Event Notice. 
 (b)    If the
Takeover Event is a Qualifying Takeover Event, the Securities shall, where the Conversion Date falls on or after the QTE Effective Date, be converted into or exchanged for Approved Entity Shares of the Approved Entity, mutatis mutandis as
provided under Section 2.08 above, at a Conversion Price that shall initially be the New Conversion Price, which may be higher or lower than the Conversion Price and references herein to “Conversion Shares” shall be deemed to be
references to “Approved Entity Shares.” 
 (c)    The New Conversion Price shall be subject to adjustment in
the circumstances provided for under Section 3.01(a) above (if necessary with such modifications and amendments as an Independent Financial Adviser acting in good faith shall determine to be appropriate and references herein to “Conversion
Shares” shall be deemed to be references to “Approved Entity Shares”), and the Company shall give notice to the Holders of the Securities of the New Conversion Price and of any such modifications and amendments thereafter. 

  
 - 37 - 

 (d)    In the case of a Qualifying Takeover Event: 

(i)    the Company shall, to the extent permitted by applicable law and regulation, on or prior to the QTE
Effective Date, enter into such agreements and arrangements (including, without limitation supplemental indentures to the Indenture and amendments and modifications to the terms of the Securities and the Indenture) as may be required to ensure that,
effective upon the QTE Effective Date, the Securities shall be convertible into, or exchangeable for, Approved Entity Shares, mutatis mutandis in accordance with, and subject to, the provisions of Sections 2.08 of this Third Supplemental
Indenture, at the New Conversion Price and any references to the Conversion Price shall be construed as references to the New Conversion Price; and 

(ii)    upon the occurrence of a Capital Adequacy Trigger Event where the Conversion Date falls on or after
the QTE Effective Date, the Company shall procure (to the extent within its control) the issue of the relevant number of Approved Entity Shares mutatis mutandis in the manner provided under Section 2.08 of this Third Supplemental
Indenture. 
 (e)    The Trustee shall be obliged (at the expense of the Company) to concur with the Company in making
any such amendments and modifications to the Indenture, and to execute any supplemental indentures to the Indenture in respect thereof, provided that the Trustee shall not be bound to do so if any such amendments or modifications would, in the
opinion of the Trustee, have the effect of (i) exposing the Trustee to any liability against which it is not indemnified and/or secured and/or pre-funded to its satisfaction, (ii) changing,
increasing or adding to the obligations or duties of the Trustee or (iii) removing or amending any protection or indemnity afforded to, or any other provision in favor of, the Trustee under the Indenture and/or the terms of the Securities. 

(f)    For the avoidance of doubt, if for any reason (including, without limitation, because the Acquirer is a
Governmental Entity), a Takeover Event is not a Qualifying Takeover Event, there is no provision for any automatic adjustment to the terms of the Securities, whether in the manner provided for in this Article III in respect of Qualifying Takeover
Events, or at all, and Section 2.08 shall apply without any automatic adjustment and “Conversion Shares” will continue to have the meaning set out in Section 1.01. 

ARTICLE IV 

MISCELLANEOUS PROVISIONS 

SECTION 4.01.    Effectiveness. This Third Supplemental Indenture shall become effective upon its execution
and delivery. 
 SECTION 4.02.    Original Issue. The Securities may, upon execution of this Third
Supplemental Indenture, be executed by the Company and delivered by the Company to the Trustee for authentication, and the Trustee shall, upon delivery of a Company Order, authenticate and deliver such Securities as in such Company Order provided.

  
 - 38 - 

 SECTION 4.03.    Ratification and Integral Part. The Base
Indenture as supplemented and amended by this Third Supplemental Indenture, is in all respects ratified and confirmed, including without limitation all the rights, immunities and indemnities of the Trustee, and this Third Supplemental Indenture
shall be deemed an integral part of the Base Indenture in the manner and to the extent herein and therein provided. 

SECTION 4.04.    Priority. This Third Supplemental Indenture shall be deemed part of the Base Indenture in the
manner and to the extent herein and therein provided. The provisions of this Third Supplemental Indenture shall, with respect to the Securities and subject to the terms hereof, supersede the provisions of the Base Indenture to the extent the Base
Indenture is inconsistent herewith. 
 SECTION 4.05.    Successors and Assigns. All covenants and agreements
in the Base Indenture, as supplemented and amended by this Third Supplemental Indenture, by the Company shall bind its successors and assigns, whether so expressed or not. 

SECTION 4.06.    Counterparts. This Third Supplemental Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 

SECTION 4.07.    Governing Law. This Third Supplemental Indenture and the Securities shall be governed by and
construed in accordance with the laws of the State of New York, except for the subordination provisions set forth in Section 12.01 of the Base Indenture and the waiver of set-off provisions set forth in
Section 5.04(d) of the Base Indenture, which are governed by, and construed in accordance with, English law. 

  
 - 39 - 

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

			
	 BARCLAYS
PLC

 
			
		
	 By:
	 	 /s/ Stuart Frith

	 Name:
	 	 Stuart Frith

	 Title:
	 	 Vice President

			
	
	 THE BANK OF NEW
YORK MELLON, as Trustee
and Paying Agent

 
			
		
	 By:
	 	 /s/ Thomas Vanson

	 Name:
	 	 Thomas Vanson

	 Title:
	 	 Authorised Signatory

			
	
	THE BANK OF NEW YORK MELLON SA/NV, LUXEMBOURG BRANCH, as Contingent Convertible Security
Registrar

 
			
		
	 By:
	 	 /s/ Thomas Vanson

	 Name:
	 	 Thomas Vanson

	Title:	 	Authorised Signatory

 [Signature Page to the Third Supplemental Indenture] 

 Exhibit A 

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

BY PURCHASING THIS SECURITY, IN THE ABSENCE OF A CHANGE IN LAW OR AN ADMINISTRATIVE OR JUDICIAL RULING TO THE CONTRARY, THE HOLDER AGREES TO CHARACTERIZE THIS
SECURITY FOR ALL U.S. FEDERAL INCOME TAX PURPOSES AS PROVIDED ON THE FACE OF THIS SECURITY. 
 This Security is one of a duly authorized issue of securities
of the Company (as defined below) (herein called the “Securities” and each, a “Security”) issued and to be issued in one or more series under and governed by the Contingent Convertible Securities Indenture, dated as
of August 14, 2018 (the “Base Indenture”), as supplemented and amended by the Third Supplemental Indenture, dated as of June 13, 2019 (the “Third Supplemental Indenture” and, together with the Base
Indenture, the “Indenture”). 
 The rights of the Holder and Beneficial Owners of this Security are, to the extent and in the manner set
forth in Section 12.01 of the Base Indenture and in the subordination provisions of this Security, subordinated to the claims of other creditors of the Company, and this Security is issued subject to the provisions of that Section 12.01
and in the subordination provisions of this Security, and the Holder of this Security, by accepting the same, agrees to, and shall be bound by, such provisions. The provisions of Section 12.01 of the Base Indenture and the terms of this
paragraph are governed by, and shall be construed in accordance with, English law. 
 The rights of the Holder of this Security are subject to
Section 2.08 of the Third Supplemental Indenture. Effective upon, and following, the occurrence of the Automatic Conversion, the Holders and Beneficial Owners of the Securities (and any interest therein) prior to the occurrence of such
Automatic Conversion shall not have any rights against the Company with respect to repayment of the principal amount of this Security or payment of interest or any other amount in respect of this Security, which liabilities of the Company shall be
irrevocably and automatically released, and accordingly the principal amount of this Security shall equal zero at all times thereafter. 
 Notwithstanding
any other agreements, arrangements, or understandings between the Company and any Holder or Beneficial Owner of the Securities, by acquiring the Securities, each Holder and Beneficial Owner of the Securities acknowledges, accepts, agrees to be bound
by, and consents to, the exercise of any U.K. Bail-in Power by the Relevant U.K. Resolution Authority (as those terms are defined in the Base Indenture) and the provisions set forth in Section 13.01 of
the Base Indenture. 

  
 A-1 

 In accordance with Article 14 of the Base Indenture, each Holder and Beneficial Owner that acquires its
Securities in the secondary market shall be deemed to acknowledge and agree to be bound by and consent to the same provisions specified in the Indenture to the same extent as the Holders and Beneficial Owners of the Securities that acquire the
Securities upon their initial issuance, including, without limitation, with respect to the acknowledgement and agreement to be bound by and consent to the terms of the Securities, including in relation to interest cancellation, Automatic Conversion,
the Conversion Shares Offer, the U.K. Bail-in Power and the limitations on remedies specified in in this Security and Article V of the Base Indenture. 

  
 A-2 

 BARCLAYS PLC 

7.125% Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities 

(Callable June 15, 2025 and Every Five Years Thereafter) 
  

			
	No. 00[●]	  	£[●]

 ISIN NO. XS1998799792 

BARCLAYS PLC, a company duly incorporated and existing under the laws of England and Wales (herein called the “Company”,
which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay The Bank of New York Mellon Depository (Nominees) Limited, or registered assigns, the principal sum of £[●]
([●] POUNDS STERLING), if and to the extent due, and to pay interest thereon, if any, in accordance with the terms hereof and the Indenture. 

The Securities shall have no fixed maturity or fixed redemption date. From (and including) the Issue Date to (but excluding) June 15,
2025, the interest rate on the Securities shall be 7.125% per annum (the “Initial Interest Rate”). From and including June 15, 2025 and each fifth anniversary date thereafter, commencing June 15, 2025 (each such date, a
“Reset Date”) to (but excluding) the next following Reset Date (each such period, a “Reset Period”), the applicable per annum interest rate (the “Subsequent Interest Rate”) will, subject to
Section 2.02(b) of the Third Supplemental Indenture, be equal to the sum of the applicable Reference Bond Rate on the relevant Reset Determination Date and 6.579% (the “Margin”). Each Subsequent Interest Rate shall be
determined in compliance with the relevant Capital Regulations. Subject to the provisions on the reverse of this Security relating to cancellation and deemed cancellation of interest and to Sections 3.12 and 3.13 of the Base Indenture and to the
following sentence, interest, if any, shall be payable in four equal quarterly installments in arrear on March 15, June 15, September 15 and December 15 of each year (each, an “Interest Payment Date”). The first
date on which interest may be paid will be September 15, 2019 for the period commencing on (and including) June 13, 2019 and ending (but excluding) September 15, 2019 (and thus a long first interest period). If a date of redemption is
not a Business Day, the Company may pay interest (if any) and principal on the next Business Day, but interest on that payment will not accrue during the period from and after the date of redemption. 

The “Reference Bond Rate” is, with respect to any Reset Date for which such rate applies, the gross redemption yield (as
calculated by the Calculation Agent on the basis set out by the United Kingdom Debt Management Office in the paper “Formulae for Calculating Gilt Prices from Yields”, page 5, Section One: Price/Yield Formulae “Conventional
Gilts; Double dated and Undated Gilts with Assumed (or Actual) Redemption on a Quasi-Coupon Date” (published June 8, 1998, and updated on January 15, 2002 and March 16, 2005 and as further amended, updated, supplemented or
replaced from time to time) or if such basis is no longer in customary market usage at such time, a gross redemption yield calculated in accordance with generally accepted market practice at such time, as determined by the Company following
consultation with an investment bank or financial institution determined to be appropriate by the Company (which, for the avoidance of doubt, could be the Calculation Agent, if applicable)) on a semi-annual compounding basis (rounded up (if
necessary) to four decimal places) of the Reset Reference Bond (as defined below) in respect of that Reset Period, assuming a price for the Reset Reference Bond (expressed as a percentage of its principal amount) equal to the Reference Bond Price
(as defined below) for the relevant Reset Determination Date. 

  
 A-3 

 “Reference Bond Price” means, with respect to any Reset Determination Date,
(i) the arithmetic average of the Reference Government Bond Dealer Quotations for such Reset Determination Date, after excluding the highest and lowest such Reference Government Bond Dealer Quotations, or (ii) if fewer than five such
Reference Government Bond Dealer Quotations are received, the arithmetic average of all such quotations (or, alternatively, if only one Reference Government Bond Dealer Quotation is received, the Reference Bond Price shall be equal to such
quotation); provided, however, that if no Reference Government Bond Dealer Quotations are received, the Subsequent Interest Rate for the relevant Reset Period shall be equal to the rate of interest last determined in relation to the Securities in
respect of the preceding Reset Period (or, alternatively, if there has not been a first Reset Date, the rate of interest applicable to the first Reset Period shall be the Initial Interest Rate). 

“Reference Government Bond Dealer” means each of five banks selected by the Company (following, where practicable,
consultation with the Calculation Agent), or the affiliates of such banks, which are (i) primary government securities dealers, and their respective successors, or (ii) market makers in pricing corporate bond issues. 

“Reference Government Bond Dealer Quotations” means, with respect to each Reference Government Bond Dealer and any Reset
Determination Date, the arithmetic average, as determined by the Calculation Agent, of the bid and offered prices for the Reset Reference Bond (expressed in each case as a percentage of its principal amount) as at 11:00 a.m. (London time) on the
Reset Determination Date on a dealing basis for settlement on the next following dealing day in London, or such basis as is customarily used at such time, and quoted in writing to the Calculation Agent by such Reference Government Bond Dealer. 

“Reset Reference Bond” means, for any Reset Period, the U.K. government security or securities selected by the Company (after
consultation with an investment bank or financial institution determined to be appropriate by the Company which, for the avoidance of doubt, could be the Calculation Agent, if applicable) with a maturity date on or about the last day of such Reset
Period and that (in the opinion of the Company) would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issuances of corporate debt securities denominated in sterling and of a maturity of five
years. 
 If any Interest Payment Date is not a Business Day, the Interest Payment Date shall be postponed to the next Business Day, and no
further interest or other payment shall be owed or made in respect of such delay. 
 Subject to Sections 3.12 and 3.13 of the Base
Indenture, the interest rate on the Securities, if any, will be computed and payable as follows: 
 (a)    If the
Calculation Period is equal to or shorter than the Regular Period during which it falls, interest on the Securities, if any, will be computed and payable on the basis of the number of days in the Calculation Period, divided by the product of
(1) the number of days in the Regular Period in which the Calculation Period falls and (2) four; or 

  
 A-4 

 (b)    If the Calculation Period is longer than one Regular Period,
interest on the Securities, if any, will be computed and payable on the basis of the sum of: (A) the number of days in such Calculation Period falling in the Regular Period in which it begins divided by the product of (1) the number of
days in such Regular Period and (2) four; and (B) the number of days in such Calculation Period falling in the next Regular Period divided by the product of (1) the number of days in such Regular Period and (2) four. 

The interest, if any, so payable, and paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to
the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest which shall be the close of business on the Business Day immediately preceding each
Interest Payment Date (whether or not a Business Day). 
 In addition to any other restrictions on payments of principal and interest
contained in the Indenture, no repayment of the principal amount of the Securities or payment of interest on the Securities shall become due and payable after the exercise of any U.K. Bail-in Power by the
Relevant U.K. Resolution Authority unless such repayment or payment would be permitted to be made by the Company under the laws and regulations of the United Kingdom and the European Union applicable to the Company. 

Interest on the Securities shall be due and payable only at the sole discretion of the Company, and the Company shall have sole and absolute
discretion at all times and for any reason to cancel (in whole or in part) any interest payment that would otherwise be payable on any Interest Payment Date. If the Company does not make an interest payment in respect of the Securities on the
relevant Interest Payment Date (or if the Company elects to make a payment of a portion, but not all, of such interest payment), such non-payment shall evidence the Company’s exercise of its discretion to
cancel such interest payment (or the portion of such interest payment not paid), and accordingly such interest payment (or the portion thereof not paid) shall not be due and payable. If the Company provides notice to cancel a portion, but not all,
of an interest payment in respect of the Securities, and the Company subsequently does not make a payment of the remaining portion of such interest payment on the relevant Interest Payment Date, such
non-payment shall evidence the Company’s exercise of its discretion to cancel such remaining portion of such interest payment, and accordingly such remaining portion of the interest payment shall also not
be due and payable. 
 Interest shall only be due and payable on an Interest Payment Date to the extent it is not cancelled or deemed
cancelled (in each case, in whole or in part) in accordance with the terms of this Security, and any interest cancelled or deemed cancelled (in each case, in whole or in part) pursuant to this Security shall not be due and shall not accumulate or be
payable at any time thereafter, and Holders and Beneficial Owners of the Securities shall have no rights thereto or to receive any additional interest or compensation as a result of such cancellation or deemed cancellation. 

Without limitation on the foregoing paragraph and subject to the extent permitted by the following sentence in respect of partial interest
payments in respect of the Securities, the Company shall not make an interest payment in respect of the Securities on any Interest Payment Date (and such interest payment shall therefore be deemed to have been cancelled and thus shall

  
 A-5 

 
not be due and payable on such Interest Payment Date) if either (a) the Company has an amount of Distributable Items on such Interest Payment Date that is less than the sum of
(i) all distributions or interest payments made or declared by the Company since the end of the last financial year and prior to such Interest Payment Date on or in respect of any Parity Securities, the Securities and any Junior Securities
plus (ii) all distributions or interest payments payable by the Company (and not cancelled or deemed cancelled) on such Interest Payment Date (x) on the Securities and (y) on or in respect of any Parity Securities, in the case
of each of (i) and (ii), excluding any payments already accounted for in determining the Distributable Items; or (b) the Solvency Condition is not satisfied in respect of such interest payment. The Company may, in its sole discretion,
elect to make a partial interest payment in respect of the Securities on any Interest Payment Date, only to the extent that such partial interest payment may be made without breaching the restrictions of this paragraph. Any interest cancelled
pursuant to this paragraph shall be “deemed cancelled” under the terms of this Security and the Indenture and shall not be due and payable. Neither the Trustee nor any agent of the Trustee shall be required to monitor compliance with the
restriction on interest payments contained in this paragraph or to perform any calculations in connection therewith. 
 By subscribing for,
purchasing or other acquiring the Securities, each Holder and each Beneficial Owner shall be deemed to have contracted and agreed that (i) interest is payable solely at the discretion of the Company, and no amount of interest shall become due
and payable in respect of the relevant interest period to the extent that it has been (x) cancelled (in whole or in part) by the Company at the Company’s sole discretion and/or (y) deemed cancelled (in whole or in part) as a result of
the Company’s having insufficient Distributable Items or failing to satisfy the Solvency Condition; and (ii) a cancellation or deemed cancellation of interest (in each case, in whole or in part) in accordance with the terms of the
Indenture shall not constitute a default in payment or otherwise under the terms of the Securities or the Indenture. Interest on the Securities shall only be due and payable on an interest payment date to the extent it is not cancelled or deemed
cancelled under the terms of this Security and Sections 3.12 and 3.13 of the Base Indenture. Any interest cancelled or deemed cancelled (in each case, in whole or in part) in the circumstances described in this Security shall not be due and shall
not accumulate or be payable at any time thereafter, and Holders and Beneficial Owners of the Securities shall have no rights thereto or to receive any additional interest or compensation as a result of such cancellation or deemed cancellation of
interest in respect of the Securities. 
 Payments of principal of and interest, if any, on the Securities shall be made in such coin or
currency of the United Kingdom as at the time of payment is legal tender for payment of public and private debts and such payments shall be made through one or more Paying Agents appointed under the Base Indenture to the Holder or Holders of this
Security. Initially, the Paying Agent for the Securities shall be The Bank of New York Mellon, London Branch, One Canada Square, London E14 5AL, United Kingdom, and the Contingent Convertible Security Registrar shall be The Bank of New York Mellon
SA/NV, Luxembourg Branch, Vertigo Building, Polaris 2 4, rue Eugène Ruppert, L 2453 Luxembourg, Luxembourg. The Company may change the Paying Agent or the Contingent Convertible Security Registrar without prior notice to the Holders of the
Securities, and in such an event the Company may act as Paying Agent or Contingent Convertible Security Registrar. Payments of principal of and interest on the Securities shall be made by wire transfer of immediately available funds; provided,
however, that in the case of payments of principal, this Security is first surrendered to the Paying Agent. 

  
 A-6 

 This Security shall be governed by and construed in accordance with the laws of the State of
New York, except for the subordination provisions referred to herein and set forth in Section 12.01 of Base Indenture, and the waiver of set-off provisions referred to herein and set forth in
Section 5.04(d) of the Base Indenture, which are governed by, and construed in accordance with, English law. 
 Reference is hereby
made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture, as defined
herein. 
 THIS SECURITY IS NOT A DEPOSIT LIABILITY OF BARCLAYS PLC AND IS NOT COVERED BY THE U.K. FINANCIAL SERVICES COMPENSATION SCHEME OR
INSURED BY THE UNITED STATES FEDERAL DEPOSIT INSURANCE CORPORATION, THE CANADA DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY OF THE UNITED STATES, THE UNITED KINGDOM, CANADA OR ANY OTHER JURISDICTION. 

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof, directly or through an
Authenticating Agent, by manual signature of an authorized signatory, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

By purchasing this Security, the Holder of this Security agrees (in the absence of a statutory, regulatory, administrative or judicial ruling
to the contrary) to treat this Security as equity of the Company for U.S. federal income tax purposes. 

  
 A-7 

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

 

							
	Date:	 		 	BARCLAYS PLC
				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	
				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	

 Trustee’s Certificate of Authentication 

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

 

							
	Date:	 		 	THE BANK OF NEW YORK MELLON,
		 		 	              as Trustee
				
		 		 	By:	 	  

		 		 		 	Authorized Signatory

 [Signature Page to Global Security] 

  
 A-8 

 (Reverse of Security) 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities” and each, a
“Security”) issued and to be issued in one or more series under and governed by the Contingent Convertible Securities Indenture, dated as of August 14, 2018 (herein called the “Base Indenture”), between the
Company and The Bank of New York Mellon, London Branch, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Base Indenture), as supplemented and amended by the Third Supplemental Indenture,
dated as of June 13, 2019 (the “Third Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), and reference is hereby made to the Indenture, the terms of which are incorporated herein
by reference, for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated
and delivered. Insofar as the provisions of the Indenture may conflict with the provisions set forth in this Security, the former shall control for purposes of this Security. 

This Security is one of the series designated on the face hereof, limited to a principal amount of £1,000,000,000, which amount may be
increased at the option of the Company if in the future it determines that it may wish to sell additional Securities of this series. References herein to “this series” mean the series designated on the face hereof. 

Any amounts to be paid by the Company on the Securities shall be made without deduction or withholding for, or on account of, any and all
present or future income, stamp and other taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Taxes”) now or hereafter imposed, levied, collected, withheld or assessed by, or on behalf of, the United Kingdom
or any U.K. political subdivision or authority thereof or therein having the power to tax (each a “Taxing Jurisdiction”), unless such deduction or withholding is required by law. If any such Taxes shall at any time be required by a
Taxing Jurisdiction to be deducted or withheld, the Company shall, subject to the exceptions and limitations set forth in Section 10.04 of the Base Indenture and Section 12.01 of the Base Indenture, pay such additional amounts of, or in
respect of, the principal of, and any interest on, the Securities (“Additional Amounts”) as may be necessary in order that the net amounts paid to the Holders of the Securities, after such deduction or withholding, shall equal the
respective amounts of principal and interest that would have been payable in respect of such Securities had no such deduction or withholding been required. 

Any amounts to be paid by the Company or the Paying Agent on the Securities shall be paid net of any deduction or withholding imposed or
required pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to
Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code (or any law
implementing such an intergovernmental agreement) (a “FATCA Withholding Tax”), and neither the Company nor the Paying Agent shall be required to pay Additional Amounts on account of any FATCA Withholding Tax. 

  
 A-9 

 Any Paying Agent shall be entitled to make a deduction or withholding from any payment which
it makes under the Securities and the Indenture for or on account of (i) any present or future taxes, duties or charges if and to the extent so required by any applicable law and (ii) any FATCA Withholding Tax (together,
“Applicable Law”). In either case, the Paying Agent shall make any payment after a deduction or withholding has been made pursuant to Applicable Law and shall report to the relevant authorities the amount so deducted or withheld.
However, such deduction or withholding will not apply to payments made under the Securities and the Indenture through the relevant clearing systems. In all cases, the Paying Agent shall have no obligation to gross up any payment made subject to any
deduction or withholding pursuant to Applicable Law. In addition, amounts deducted or withheld by the Paying Agent as described in this paragraph will be treated as paid to the Holder of the Securities, and the Company will not pay Additional
Amounts in respect of such deduction or withholding, except to the extent the provisions in this paragraph explicitly provide otherwise. The restrictions on interest payments described on the face of this Security apply to any Additional Amounts
mutatis mutandis. 
 The Company agrees, to the extent the Company has actual knowledge of such information, to provide the Paying
Agent with sufficient information about any modification to the terms of the Securities for the purposes of determining whether FATCA Withholding Tax applies to any payment of principal or interest on the Securities. 

Subject to the limitations specified below, the Company may, at the Company’s option, redeem the Securities, in whole but not in part, on
any Reset Date at a redemption price equal to 100% of the principal amount of the Securities then Outstanding, together with any accrued but unpaid interest (which excludes any interest cancelled or deemed cancelled as specified below) to (but
excluding) the date fixed for redemption. 
 Subject to the limitations specified below, the Company may also, at any time, at the
Company’s option, redeem the Securities, in whole but not in part pursuant to Section 2.05 and/or Section 2.06 of the Third Supplemental Indenture. 

Any interest payments that have been cancelled or deemed cancelled pursuant to the terms of this Security and the Indenture shall not be
payable if the Securities are redeemed pursuant to any of the two preceding paragraphs. 
 Before the Company may redeem the Securities
pursuant to any of the preceding paragraphs relating to the Company’s rights of redemption, the Company shall deliver prior notice of not less than thirty (30) days, nor more than sixty (60) days to the Holders of the Securities
pursuant to Section 2.07 of the Third Supplemental Indenture. 
 Notwithstanding any other provision of this Security or the Third
Supplemental Indenture, the Company may redeem the Securities at the Company’s option only subject to the limitations specified in Section 11.08 of the Base Indenture. 

Subject to Section 11.10 of the Base Indenture, the Company or any member of the Group may purchase or otherwise acquire any of the
Outstanding Securities at any price in the open market or otherwise in accordance with the Capital Regulations applicable to the Group in force at the relevant time, and subject to the prior consent of the PRA and/or any other relevant national or
European authority (in either case if such consent is then required by the Capital Regulations) and to applicable law and regulation. 

  
 A-10 

 An Automatic Conversion shall occur without delay upon the occurrence of a Capital Adequacy
Trigger Event as set forth in Section 2.08 of the Third Supplemental Indenture. 
 The Conversion Price shall be subject to adjustment
as provided in Article III of the Third Supplemental Indenture. 
 The Company may, in its sole and absolute discretion, following the
occurrence of an Automatic Conversion and no later than 10 (ten) Business Days following the Conversion Date, elect that the Conversion Shares Depository make an offer of all or some of the Conversion Shares to all or some of the Company’s
ordinary shareholders at a cash price per Conversion Share equal to the Conversion Price, as set forth in and subject to the provisions of Section 2.10 of the Third Supplemental Indenture. 

This Security is subject to the provisions regarding the U.K. Bail-in Power Acknowledgement set forth
in Section 13.01 of the Base Indenture. 
 If a Winding-Up Event occurs before the occurrence
of a Capital Adequacy Trigger Event, subject to the subordination provisions of Section 12.01 of the Base Indenture, the outstanding principal amount of this Security shall become immediately due and payable, without the need of any further
action on the part of the Trustee, the Holders or any other Person. 
 A “Winding-Up
Event” shall result if (i) a court of competent jurisdiction in England (or such other jurisdiction in which the Company may be organized) makes an order for the winding-up of the Company which
is not successfully appealed within thirty (30) days of the making of such order, (ii) the Shareholders of the Company adopt an effective resolution for the winding-up of the Company (other than, in
the case of either (i) or (ii) above, under or in connection with a scheme of reconstruction, merger or amalgamation not involving a bankruptcy or insolvency) or (iii) following the appointment of an administrator of the Company, the
administrator gives notice that it intends to declare and distribute a dividend. 
 If the Company fails to pay any amount that has become
due and payable under this Security and such failure continues for fourteen (14) days, the Trustee may provide a written notice of such failure to the Company. If within a period of fourteen (14) days following the provision of such
notice, the failure continues and has not been cured nor waived (a “Non-Payment Event”), the Trustee may, at its discretion, and without further notice to the Company, institute
proceedings in England (or such other jurisdiction in which the Company may be organized) (but not elsewhere) for the winding-up of the Company and/or prove in a
winding-up of the Company and/or claim in a liquidation or administration of the Company. For the avoidance of doubt, if, pursuant to this Security and Sections 3.12 and 3.13 of the Base Indenture, the Company
cancels any interest payment on any Interest Payment Date or if such interest payment is deemed cancelled (in each case, in whole or in part), then such interest payment shall not be due and payable in respect of such Interest Payment Date, and no Non-Payment Event under the Securities will occur or be deemed to have occurred as a result of such cancellation or deemed cancellation (in each case, in whole or in part). 

In addition to the remedies for a Non-Payment Event provided in the paragraph

  
 A-11 

 
above, the Trustee, may without further notice, institute such proceedings against the Company as the Trustee may deem fit to enforce any term, obligation or condition binding upon the Company
under the Securities or the Indenture (other than any payment obligation of the Company under or arising from the Securities or the Indenture, including, without limitation, payment of any principal or interest) (such obligation, a
“Performance Obligation”), provided always that the Trustee (acting on behalf of the Holders and Beneficial Owners of the Securities) and the Holders and Beneficial Owners of the Securities may not enforce, and may not be
entitled to enforce or otherwise claim, against the Company any judgment or other award given in such proceedings that requires the payment of money by the Company, whether by way of damages or otherwise (a “Monetary Judgment”),
except by proving such Monetary Judgment in a winding-up of the Company and/or by claiming such Monetary Judgment in an administration of the Company. For the avoidance of doubt, the sole and exclusive manner
by which the Trustee (acting on behalf of the Holders and Beneficial Owners of the Securities) and the Holders and Beneficial Owners of the Securities may seek to enforce or otherwise claim a Monetary Judgment against the Company in connection with
the Company’s breach of a Performance Obligation shall be by proving such Monetary Judgment in a winding-up of the Company and/or by claiming such Monetary Judgment in an administration of the Company. By
its acquisition of the Securities, each Holder and Beneficial Owner of the Securities acknowledges and agrees that such Holder and Beneficial Owner shall not seek to enforce or otherwise claim, and will not direct the Trustee (acting on behalf of
the Holders and Beneficial Owners of the Securities) to enforce or otherwise claim, a Monetary Judgment against the Company in connection with the Company’s breach of a Performance Obligation, except by proving such Monetary Judgment in a winding-up of the Company and/or by claiming such Monetary Judgment in an administration of the Company. 

Other than the limited remedies specified in this Security and Article V of the Base Indenture, and subject to the second paragraph below, no
remedy against the Company shall be available to the Trustee (acting on behalf of the Holders and Beneficial Owners of the Securities) and to the Holders and Beneficial Owners, whether for the recovery of amounts owing in respect of the Securities
or under the Indenture, or in respect of any breach by the Company of any of the Company’s obligations under or in respect of the terms of such Securities or under the Indenture in relation thereto; provided, however, that the
Company’s obligations to the Trustee under Section 6.07 of the Base Indenture and the Trustee’s rights to have money collected applied first to pay amounts due to it under such Section pursuant to Section 5.07 of the Base
Indenture expressly survive any such Default and are not subject to the subordination provisions of Section 12.01 of the Base Indenture. 

In the case of a Default under this Security, the Trustee shall exercise such of the rights and powers vested in it by the Indenture, and use
the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs. A “Default” shall occur upon (i) the occurrence of a Winding-Up Event that occurs before the Conversion Date or (ii) the occurrence of a Non-Payment Event or (iii) a breach by the Company of a Performance Obligation.

 Notwithstanding the limitations on remedies specified in this Security and under Article V of the Base Indenture, (1) the Trustee
shall have such powers as are required to be authorized to it under the Trust Indenture Act in respect of the rights of the Holders and 

  
 A-12 

 
Beneficial Owners of the Securities under the provisions of the Indenture, and (2) nothing shall impair the right of a Holder or Beneficial Owner of the Securities under the Trust Indenture
Act, absent such Holder’s or Beneficial Owner’s consent, to sue for any payment due but unpaid with respect to the Securities; provided that, in the case of (1) and (2) above, any payments in respect of, or arising from, the
Securities, including any payments or amounts resulting or arising from the enforcement of any rights under the Trust Indenture Act in respect of the Securities, shall be subject to the subordination provisions set forth in Section 12.01 of the
Base Indenture. Subject to the provisions of the Trust Indenture Act, no Holder shall be entitled to proceed directly against the Company except as set forth in Section 5.08 of the Base Indenture. 

The Securities shall constitute the Company’s direct, unsecured and subordinated obligations, ranking pari passu without any
preference among themselves. In the event of a winding up or administration of the Company, the rights and claims of the Holders and Beneficial Owners of the Securities in respect of or arising from the Securities (including any damages (if
payable)) shall be subordinated to the claims of Senior Creditors. If (a) an order is made, or an effective resolution is passed, for the winding-up of the Company (except in any such case for a solvent winding-up solely for the purpose of a merger, reconstruction or amalgamation); or (b) following the appointment of an administrator of the Company, the administrator gives notice that it intends to declare and
distribute a dividend, then (1) if such events specified in (a) or (b) above occur prior to the date on which a Capital Adequacy Trigger Event occurs, there shall be payable by the Company in respect of each Security (in lieu of any other
payment by the Company), such amount, if any, as would have been payable to a Holder of Securities if, on the day prior to the commencement of the winding-up or such administration and thereafter, such Holder
of Securities were the holder of the most senior class of preference shares in the capital of the Company, having an equal right to a return of assets in the winding-up or such administration to, and so
ranking pari passu with, the holders of such class of preference shares (if any) from time to time issued by the Company that has a preferential right to a return of assets in the winding-up or such
administration, and so ranking ahead of the holders of all other classes of issued shares for the time being in the capital of the Company, but ranking junior to the claims of Senior Creditors, and on the assumption that the amount that such Holder
of Securities was entitled to receive in respect of such preference shares, on a return of assets in such winding-up or such administration, was an amount equal to the principal amount of the relevant
Security, together with any damages (if payable), and (2) if such events specified in (a) or (b) above occur on or after the date on which a Capital Adequacy Trigger Event occurs but prior to the Conversion Date, then for purposes of
determining the claim of a Holder of the Securities in such winding-up or such administration, the Conversion Date in respect of an Automatic Conversion shall be deemed to have occurred immediately prior to
the occurrence of such events specified in (a) or (b) above. Other than in the event of a winding-up or administration of the Company as described in this paragraph, payments in respect of or arising from
the Securities shall be conditional (i) upon the Company’s being solvent at the time of payment by the Company, and (ii) in that no sum in respect of or arising from the Securities may fall due and be paid except to the extent that
the Company could make such payment and still be solvent immediately thereafter (such condition referred to herein as the “Solvency Condition”). For purposes of determining whether the Solvency Condition is met, the Company shall be
considered to be solvent at a particular point in time if (x) it is able to pay its debts owed to Senior Creditors as they fall due and (y) the Balance Sheet Condition has been met. An Officer’s Certificate executed in accordance with
the Indenture as to the Company’s solvency at any 

  
 A-13 

 
particular point in time shall be treated by the Company, the Trustee, the Holders, the Beneficial Owners and all other interested parties as correct and sufficient evidence thereof.
“Senior Creditors” means creditors of the Company (aa) who are unsubordinated creditors; (bb) whose claims are, or are expressed to be, subordinated (whether only in the event of the
winding-up or administration of the Company or otherwise) to the claims of unsubordinated creditors of the Company but not further or otherwise; (cc) who are creditors in respect of any secondary non-preferential debt (“secondary non-preferential debts” shall have the meaning given to it in the Ranking Legislation (as defined below)); or (dd) whose
claims are, or are expressed to be, junior to the claims of other creditors of the Company, whether subordinated or unsubordinated, other than those whose claims rank, or are expressed to rank, pari passu with, or junior to, the claims of the
Holders of the Securities. “Order” means the Banks and Building Societies (Priorities on Insolvency) Order 2018. “Ranking Legislation” means the Order and any other law or regulation applicable to the Company, which
is amended by the Order. The “Balance Sheet Condition” shall be satisfied in relation to the Company if the value of its assets is at least equal to the value of its liabilities (taking into account its contingent and prospective
liabilities), according to the criteria that would be applied by the High Court of Justice of England and Wales (or the relevant authority of such other jurisdiction in which the Company may be organized) in determining whether the Company is
“unable to pay its debts” under section 123(2) of the U.K. Insolvency Act 1986 or any amendment or re-enactment thereof (or in accordance with the corresponding provisions of the applicable laws of
such other jurisdiction in which the Company may be organized). Any payment of interest not due by reason of the provisions contained in this paragraph shall be deemed canceled pursuant to the terms of this Security and Section 3.13 of the Base
Indenture. 
 Subject to applicable law, no Holder of Securities may exercise, claim or plead any right of
set-off, compensation or retention in respect of any amount owed to it by the Company arising under, or in connection with, the Securities and each Holder of Securities shall, by virtue of its holding of any
Securities, be deemed to have waived all such rights of set-off, compensation or retention. Notwithstanding the foregoing, if any amounts due and payable to any Holder of this Security by the Company in
respect of, or arising under, this Security are discharged by set-off, such Holder shall, subject to applicable law, immediately pay an amount equal to the amount of such discharge to the Company (or, in the
event of its winding-up or administration, the liquidator or administrator of the Company, as the case may be) and, until such time as payment is made, shall hold an amount equal to such amount in trust for
the Company (or the liquidator or administrator of the Company, as the case may be) and, accordingly, any such discharge shall be deemed not to have taken place. By its acquisition of the Securities, each Holder and Beneficial Owner agrees to be
bound by these provisions relating to waiver of set-off. 
 The Indenture permits, with certain
exceptions and subject to certain conditions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the
Indenture at any time by the Company and the Trustee with the consent of the Holders of a specified majority in principal amount of the Securities then Outstanding of each series to be affected. The Indenture also contains provisions permitting the
Holders of a majority in aggregate principal amount of the Securities of each series then Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain

  
 A-14 

 
provisions of the Indenture and certain past Defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon
such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. 

As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have any right to institute any
proceeding, judicial or otherwise, with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Default
with respect to the Securities of this series, the Holders of not less than 25% in aggregate principal amount of the Securities of this series then Outstanding shall have made written request to the Trustee to institute proceedings in respect of
such Default as Trustee and offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities to be incurred in compliance with such request, the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series then Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for sixty (60) days after receipt of such notice, request and offer of security
or indemnity, and, in the case of a proceeding in England (or such other jurisdiction in which the Company may be organized) (but not elsewhere) for the winding-up of the Company, such proceeding is in the
name and on behalf of the Trustee to the same extent (but no further or otherwise) as the Trustee would have been entitled so to do. 

Notwithstanding any contrary provisions in this Security, nothing shall impair the right of a Holder of this Security under the Trust
Indenture Act, absent such Holder’s consent, to sue for any payments due but unpaid with respect to this Security. 
 As provided in
the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Contingent Convertible Security Register, upon surrender of this Security for registration of transfer at the office or agency of
the Company in any place where the principal of this Security is payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Contingent Convertible Security Registrar duly executed by,
the Holder hereof or his attorney duly authorized in writing. Thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee
or transferees. 
 This Security, and any other Securities of this series and of like tenor, are issuable only in registered form without
coupons in initial denominations of £200,000 and increments of £1,000 thereafter. The denominations cannot be changed without the consent of the Trustee. The denomination of each interest in this Security shall be the “Tradable
Amount” of such book-entry interest. Prior to an Automatic Conversion, the aggregate Tradable Amount of the interests in this Security shall equal this Security’s outstanding principal amount.
Following an Automatic Conversion, the principal amount of this Security shall equal zero, but the Tradable Amount of the book-entry interests in this Security shall remain unchanged as a result of the
Automatic Conversion. 

  
 A-15 

 No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to
due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not
this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 This
Security shall be governed by and construed in accordance with the laws of the State of New York, except for the subordination provisions referred to herein and set forth in Section 12.01 of the Base Indenture, and the waiver of set-off provisions referred to herein and set forth in Section 5.04(d) of the Base Indenture, which are governed by, and construed in accordance with, English law. 

  
 A-16 

 Exhibit B 

Form of Automatic Conversion Notice1 

NOTICE TO CLEARSTREAM, LUXEMBOURG AND EUROCLEAR, THE TRUSTEE 

AND FOR PUBLICATION 
 AS A
NOTICE TO HOLDERS AND BENEFICIAL OWNERS 
 [Barclays Letterhead] 

 

					
	To:  	  	 [Clearstream Luxembourg / Euroclear
 Contact
Information]
	  	
			
	Cc:	  	 [The Bank of New York Mellon
 Merck House

Seldown
 Poole, Dorset BH15 1PX 
United Kingdom

Attn: International Corporate Trust Services
 Email:
corpsov2@bnymellon.com 
Fax: 01202 689600
 Tel: 01202 689978
	  	 The Bank of New York Mellon
 101 Barclay
Street
 Floor 7-E
 New
York, New York 10286
 United States of America
 Attn:
International Corporate Trust
 Fax: +1 (212) 815-5366]

 Re: Barclays PLC £1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities
(Callable June 15, 2025 and Every Five Years Thereafter) (ISIN: XS1998799792) – Notice to Clearstream, Luxembourg and Euroclear, Holders and Beneficial Owners of the Occurrence of a Capital Adequacy Trigger Event 

This notice is in relation to Barclays PLC’s (the “Company”) £1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated
Contingent Convertible Securities (Callable June 15, 2025 and Every Five Years Thereafter) (ISIN: XS1998799792) issued on June 13, 2019 (the “Securities”) pursuant to the Contingent Convertible Securities Indenture, dated
August 14, 2018, between the Company and The Bank of New York Mellon, London Branch, as Trustee (the “Trustee”) and Paying Agent, as supplemented and amended by the Third Supplemental Indenture, dated June 13, 2019,
between the Company and the Trustee (together, the “Indenture”), and pursuant to the prospectus supplement dated June 6, 2019 supplementing the prospectus dated April 6, 2018. Capitalized terms used herein and not defined
herein shall have the respective meanings ascribed to such terms in the Indenture. 
 Barclays PLC hereby notifies Clearstream, Luxembourg and Euroclear
(the “Clearing Systems”), the Holders and Beneficial Owners of the Securities that a Capital Adequacy Trigger Event has occurred with respect to the Securities. Such Capital Adequacy Trigger Event has occurred because the
Group’s Fully Loaded CET1 Ratio as of [Date], as determined by Barclays PLC on a consolidated basis in accordance with the Capital Regulations applicable to the Group on such date, was less than 7.00%. 

 
  

	1 	 Note: Addresses to be reconfirmed prior to when notice is sent; subject to modification if Securities
are in definitive form and to changes in the Clearing Systems’ (or successor clearing system) policies and procedures. 

  
 B-1 

 Upon the occurrence of the Capital Adequacy Trigger Event, the terms of the Securities provide for an
Automatic Conversion of the Securities on the Conversion Date, which [was] [is expected to be] [Date], based on the Conversion Price, which is [Price]. 2 Upon the Automatic
Conversion, all of Barclays PLC’s obligations under the Securities (other than with respect to the CSO Obligations, if any) shall be irrevocably and automatically released in consideration of Barclays PLC’s issuance of ordinary shares of
Barclays PLC (the “Conversion Shares”) to the Conversion Shares Depository (or other relevant recipient). However, the terms of the Securities provide that the Securities shall remain in existence until the applicable Conversion
Shares Settlement Date for the sole purpose of evidencing (a) a right to receive Conversion Shares or Conversion Shares Offer Consideration, as applicable, from the Conversion Shares Depository and (b) the Company’s CSO Obligations,
if any. 
 In addition, the terms of the Securities provide that Barclays PLC may, in its sole and absolute discretion, elect that a Conversion Shares Offer
be conducted, no later than ten (10) Business Days of the Conversion Date. Barclays PLC will deliver to each of the Clearing Systems, the Holders and the Beneficial Owners a Conversion Shares Offer Notice specifying, among other things, whether
or not Barclays PLC has elected that a Conversion Shares Offer be conducted and the Suspension Date. The Securities may continue to trade until the Suspension Date. 

Accordingly, Barclays PLC hereby instructs each of the Clearing Systems to indicate to all participants that payments of principal and interest are no longer
payable under the Securities as of the Conversion Date and that the Securities will have no further entitlement to interest or principal as of such date by making a note to that effect in its systems. 

Should the Clearing Systems, any Holder or any Beneficial Owner of the Securities have any inquiries, please contact: 

[Barclays Contact Person] 

[Telephone] 
 [Fax]

 [Email] 
  

 

	2 	 Note: To be completed with the Conversion Date and Conversion Price.

  
 B-2 

 Exhibit C 

Form of Capital Adequacy Trigger Event Officers’ Certificate 

BARCLAYS PLC 
 Capital Adequacy
Trigger Event Officers’ Certificate 
 This Capital Adequacy Trigger Event Officers’ Certificate is being delivered in relation to Barclays
PLC’s (the “Company”) £1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities (Callable June 15, 2025 and Every Five Years Thereafter) (ISIN: XS1998799792) issued on
June 13, 2019 (the “Securities”) pursuant to the Contingent Convertible Securities Indenture (the “Base Indenture”), dated August 14, 2018, between the Company and The Bank of New York Mellon, as Trustee
(the “Trustee”) and Paying Agent, as supplemented and amended by the Third Supplemental Indenture, dated June 13, 2019, between the Company and the Trustee (the “Third Supplemental Indenture”), and pursuant to
the prospectus supplement dated June 6, 2019, supplementing the prospectus dated April 6, 2018 (the “Prospectus”). 
 Pursuant to
Section 1.02 of the Base Indenture and Section 2.08 of the Third Supplemental Indenture, the undersigned, being authorized signatories of the Company and authorized by the Company to give this certificate, each hereby certify as follows:

  

	(a)	 I have read the provisions of the Base Indenture and those of the Third Supplemental Indenture, setting forth
certain provisions in respect of the occurrence of a Capital Adequacy Trigger Event (as defined in the Third Supplemental Indenture), including Section 2.08 of the Third Supplemental Indenture, and the definitions relating thereto;

  

	(b)	 I have reviewed such corporate records and such other documents as I have deemed necessary as a basis for the
opinion hereinafter expressed; 

  

	(c)	 I have also made such other examinations and investigations as I have deemed necessary to enable me to express
an informed opinion as to the matters set forth in (d) below; and 

  

	(d)	 a Capital Adequacy Trigger Event has occurred with respect to the Securities. Such Capital Adequacy Trigger
Event has occurred because the Group’s (as defined in the Third Supplemental Indenture) Fully Loaded CET1 Ratio (as defined in the Third Supplemental Indenture) as of [Date], as determined by Barclays PLC on a consolidated basis in
accordance with the capital adequacy standards and guidelines of the Prudential Regulation Authority of the United Kingdom (or such other governmental authority having primary responsibility for the prudential supervision of Barclays PLC) on such
date, was less than 7.00%. 

 Concurrently with the delivery of this Capital Adequacy Trigger Event Officers’ Certificate, the
Company is delivering to Clearstream, Luxembourg and Euroclear (the “Clearing Systems”) an Automatic Conversion Notice (as defined in the Third Supplemental Indenture) as a notice to the Clearing Systems and for publication as a
notice to Holders (as defined in the Base Indenture) and Beneficial Owners (as defined in the Third Supplemental Indenture) in the form set forth in Exhibit B to the Third Supplemental Indenture. 

  
 C-1 

 The Trustee is entitled to conclusively rely on and accept this Capital Adequacy Trigger Event
Officers’ Certificate without any duty whatsoever of further inquiry as sufficient and conclusive evidence of the occurrence of the Capital Adequacy Trigger Event, and this Capital Adequacy Trigger Event Officers’ Certificate shall be
conclusive and binding on the Trustee and the Holders as defined in the Base Indenture) and Beneficial Owners (as defined in the Third Supplemental Indenture). 
  

			
	 Dated:

	
	 BARCLAYS PLC

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  
 C-2 

 Exhibit D 

Form of Conversion Shares Offer Notice3 

NOTICE TO CLEARSTREAM LUXEMBOURG AND EUROCLEAR, THE TRUSTEE 

AND FOR PUBLICATION 
 AS A
NOTICE TO HOLDERS AND BENEFICIAL OWNERS 
 [Barclays Letterhead] 

 

					
	To:  	  	 [Clearstream Luxembourg / Euroclear Contact

Information]
	  	
			
	Cc:	  	 [The Bank of New York Mellon
 Merck House

Seldown
 Poole, Dorset BH15 1PX

United Kingdom
 Attn: International Corporate Trust

Services
 Email: corpsov2@bnymellon.com 
Fax: 01202 689600

Tel: 01202 689978
	  	 The Bank of New York Mellon
 101 Barclay
Street
 Floor 7-E
 New
York, New York 10286
 United States of America
 Attn:
International Corporate Trust 
Fax: +1 (212) 815-5366]

 Re: Barclays PLC £1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities
(Callable June 15, 2025 and Every Five Years Thereafter) (ISIN: XS1998799792) – Notice to Clearstream, Luxembourg and Euroclear, Holders and Beneficial Owners of [Election to Conduct a Conversion Shares Offer][Election Not to Conduct a
Conversion Shares Offer] 
 This notice is in relation to Barclays PLC’s (the “Company”) £1,000,000,000 7.125% Fixed Rate
Resetting Perpetual Subordinated Contingent Convertible Securities (Callable June 15, 2025 and Every Five Years Thereafter) (ISIN: XS1998799792) issued on June 13, 2019 (the “Securities”) pursuant to the Contingent
Convertible Securities Indenture, dated August 14, 2018, between Barclays PLC and The Bank of New York Mellon, London Branch, as Trustee (the “Trustee”) and Paying Agent, as supplemented and amended by the Third Supplemental
Indenture, dated June 13, 2019, between the Company and the Trustee (together, the “Indenture”), and pursuant to the prospectus supplement dated June 6, 2019, supplementing the prospectus dated April 6, 2018, (the
“Prospectus”). Capitalized terms used herein and not defined herein shall have the respective meanings ascribed to such terms in the Indenture. 
  

 

	3 	 Note: Addresses to be reconfirmed prior to when notice is sent; subject to modification if
Securities are in definitive form and to changes in the Clearing Systems’ (or successor clearing system) policies and procedures. 

  
 D-1 

 Barclays PLC hereby notifies Clearstream, Luxembourg and Euroclear (the “Clearing
Systems”), the Holders and the Beneficial Owners of the Securities that it has elected that a Conversion Shares Offer [not] be conducted. [The Conversion Shares Offer Period will extend from the date of this notice until [Date]4. [Conversion Shares Depository] has been appointed as Conversion Shares Depository for the Conversion Shares Offer.]5 

In addition, Barclays PLC hereby notifies each of the Clearing Systems, the Holders and the Beneficial Owners of the Securities that the Suspension Date shall
be [Date].6 Accordingly, Barclays PLC hereby instructs each of the Clearing Systems to implement a “chill” on the clearance and settlement of the Securities on the Suspension
Date. As described in the Prospectus, Holders and Beneficial Owners will not be able to settle the transfer of any Securities through the Clearing Systems following the Suspension Date, and any sale or other transfer of the Securities that a Holder
or Beneficial Owner may have initiated prior to the commencement to the Suspension Date that is scheduled to settle after the Suspension Date will be rejected by the Clearing Systems and will not be settled within the Clearing Systems. 

Should the Clearing Systems, any Holder or any Beneficial Owner of the Securities have any inquiries, please contact: 

[Barclays Contact Person] 
 [Telephone] 

[Fax] 
 [Email] 

 
  
  

 

	4 	 Note: Insert the date that the Conversion Shares Offer expires, which shall be no later than forty
(40) business days after the delivery of this Conversion Shares Offer Notice. 

	5 	 Note: If Barclays PLC has been unable to appoint a Conversion Shares Depository (or other nominee),
it shall also include in this notice such other arrangements for the issuance and/or delivery of the Conversion Shares or the Conversion Shares Offer Consideration, as applicable, to the holders of the Securities as it has put in place.

	6 	 Note: Insert the Suspension Date, which is the date on which the Clearing Systems shall suspend all
clearance and settlement of the Securities, which date shall be no later than thirty-eight (38) business days after the delivery of the Conversion Shares Offer Notice to the Clearing Systems and at least
two (2) business days prior to the end of the Conversion Shares Offer Period, if any). 

  
 D-2 

 Exhibit E 

Form of Conversion Shares Settlement Request Notice7 

NOTICE TO CLEARSTREAM LUXEMBOURG AND EUROCLEAR, THE 

TRUSTEE AND FOR PUBLICATION 

AS A NOTICE TO HOLDERS AND BENEFICIAL OWNERS 

[Barclays Letterhead] 
  

					
	To:  	  	[Clearstream Luxembourg / Euroclear Contact Information]	  	
			
	Cc:	  	 [The Bank of New York Mellon
 Merck House

Seldown
 Poole, Dorset BH15 1PX

United Kingdom
 Attn: International Corporate Trust Services

Email: corpsov2@bnymellon.com
 Fax: 01202 689600

Tel: 01202 689978
	  	 The Bank of New York Mellon
 101 Barclay
Street
 Floor 7-E
 New
York, New York 10286
 United States of America
 Attn:
International Corporate Trust
 Fax: +1 (212) 815-5366]

 Re: Barclays PLC £1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities
(Callable June 15, 2025 and Every Five Years Thereafter) (ISIN: XS1998799792) – Notice to Clearstream, Luxembourg and Euroclear, Holders and Beneficial Owners Requesting that Holders and Beneficial Owners Complete a Conversion Shares
Settlement Notice 
 This notice is in relation to Barclays PLC’s (the “Company”) £1,000,000,000 7.125% Fixed Rate Resetting
Perpetual Subordinated Contingent Convertible Securities (Callable June 15, 2025 and Every Five Years Thereafter) (ISIN: XS1998799792) issued on June 13, 2019 (the “Securities”) pursuant to the Contingent Convertible
Securities Indenture, dated August 14, 2018, between Barclays PLC and The Bank of New York Mellon, London Branch, as Trustee (the “Trustee”) and Paying Agent, as supplemented and amended by the Third Supplemental Indenture,
dated June 13, 2019, between the Company and the Trustee (together, the “Indenture”), and pursuant to the prospectus supplement dated June 6, 2019, supplementing the prospectus dated April 6, 2018. Capitalized terms
used herein and not defined herein shall have the respective meanings ascribed to such terms in the Indenture. 
 Barclays PLC hereby requests that Holders
and Beneficial Owners of the Securities provide notice to [Name of Conversion Shares Depository (or other nominee)], as [Conversion Shares Depository]8, and the Trustee in the form provided
in Appendix A before [Date]9 (the “Notice Cut-off Date”). 

 

	7 	 Note: Addresses to be reconfirmed prior to when notice is sent; subject to modification if Securities
are in definitive form and to changes in the Clearing Systems’ (or successor clearing system) policies and procedures. 

	8 	 Note: If Barclays PLC has been unable to appoint a Conversion Shares Depository, this should refer to
the entity undertaking its functions. 

	9 	 Note: The
Notice-Cut-off Date must be at least forty (40) business days following the Suspension Date. 

  
 E-1 

 If a Holder or Beneficial Owner of the Securities properly completes and delivers a Conversion Shares
Settlement Notice on or before the Notice Cut-off Date, the Conversion Shares Depository shall, in accordance with the terms of the Third Supplemental Indenture, deliver to such Holder or Beneficial Owner the
relevant Conversion Shares (rounded down to the nearest whole number of Conversion Shares) or Conversion Shares Offer Consideration, as applicable, two (2) Business Days after the date on which the Conversion Shares Settlement Notice is
received by the Conversion Shares Depository. 
 If a Holder or Beneficial Owner of the Securities fails to properly complete and deliver a Conversion
Shares Settlement Notice before the Notice Cut-off Date, the Conversion Shares Depository shall continue to hold the relevant Conversion Shares (or Conversion Shares Component, if applicable). However, the
relevant Securities shall be cancelled on the Final Cancellation Date, which shall be [Date],10 and any Holder or Beneficial Owner delivering a Conversion Shares Settlement Notice after the
Notice Cut-off Date will have to provide evidence of its entitlement to the relevant Conversion Shares (or the relevant Conversion Shares Component, if applicable) satisfactory to the [Conversion Shares
Depository] in its sole and absolute discretion in order to receive delivery of such Conversion Shares (or the relevant Conversion Shares Component, if applicable). 

Should the Clearing Systems, any Holder or any Beneficial Owner of the Securities have any inquiries, please contact: 

[Barclays Contact Person] 
 [Telephone] 

[Fax] 
 [Email] 

 
  
  

 

	10 	 Note: The Final Cancellation Date may be up to twelve (12) business days following the Notice Cut-Off Date. 

  
 E-2 

 Appendix A 

Form of Conversion Shares Settlement Notice11 

NOTICE TO THE [CONVERSION SHARES DEPOSITORY AND] CLEARSTREAM 

LUXEMBOURG AND EUROCLEAR 
  

					
	To:  	  	 [Clearstream Luxembourg / Euroclear Contact Information]
	  	[Contact details of [Conversion Shares Depository] to be included.]
			
	Cc:	  	 [The Bank of New York Mellon
 Merck House

Seldown
 Poole, Dorset BH15 1PX

United Kingdom
 Attn: International Corporate Trust Services

Email: corpsov2@bnymellon.com
 Fax: 01202 689600

Tel: 01202 689978
	  	 The Bank of New York Mellon
 101 Barclay
Street
 Floor 7-E
 New
York, New York 10286
 United States of America
 Attn:
International Corporate Trust
 Fax: +1 (212) 815-5366]

 Re: Barclays PLC £1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities
(Callable June 15, 2025 and Every Five Years Thereafter) (ISIN: XS1998799792) – Conversion Shares Settlement Notice to the [Conversion Shares Depository and] Clearstream, Luxembourg and Euroclear 

This notice is in relation to Barclays PLC’s (the “Company”) £1,000,000,000 7.125% Fixed Rate Resetting Perpetual Subordinated
Contingent Convertible Securities (Callable June 15, 2025 and Every Five Years Thereafter) (ISIN: XS1998799792) issued on June 13, 2019 (the “Securities”) pursuant to the Contingent Convertible Securities Indenture, dated
August 14, 2018, between Barclays PLC and The Bank of New York Mellon, London Branch, as Trustee (“Trustee”) and Paying Agent, as supplemented and amended by the Third Supplemental Indenture, dated June 13, 2019, between
the Company and the Trustee (together, the “Indenture”), and pursuant to the prospectus supplement dated June 6, 2019, supplementing the prospectus dated April 6, 2018. Capitalized terms used herein and not defined herein
shall have the respective meanings ascribed to such terms in the Indenture. 
  

 

	11 	 Note: Addresses to be reconfirmed prior to when notice is sent; subject to modification if Securities
are in definitive form and to changes in the Clearing Systems’ and CREST (or successor clearing system) policies and procedures. 

  
 E-3 

			
	
INFORMATION OF THE HOLDER OR BENEFICIAL OWNER FOR DELIVERY OF CONVERSION SHARES OR CONVERSION SHARES OFFER CONSIDERATION

 

	 Surname/Company Name

 
	  	
First name
  

	 Name to be
entered in Barclays PLC’s share register
  

	 Tradable Amount
of the Securities held on the date hereof
  

	
CREST participant ID
  
	  	 CREST member account (if
applicable)
  

	 Cash account
details (if applicable)
  

	 [Account
details of clearing system account]12
  

	
[Address to which any Conversion Shares should be
delivered]13
  

 YOU MUST DELIVER THE CONVERSION SHARES SETTLEMENT NOTICE TO THE CONVERSION SHARES DEPOSITORY AND THE TRUSTEE VIA
CLEARSTREAM LUXEMBOURG AND EUROCLEAR BEFORE [DATE].14 
 If you fail to
properly complete and deliver the Conversion Shares Settlement Notice on or before the Notice Cut-off Date, the Conversion Shares Depository shall continue to hold your Conversion Shares (or Conversion Shares
Component, if applicable). However, your Securities shall be cancelled on the Final Cancellation Date, which shall be [Date],15 and you will have to provide evidence of your entitlement to
the relevant Conversion Shares (or the relevant Conversion Shares Component, if applicable) satisfactory to the Conversion Shares Depository in its sole and absolute discretion in order to receive delivery of such Conversion Shares (or Conversion
Shares Component, if any, of any Conversion Shares Offer Consideration). 
  

 

	12 	 Note: To be included if the Conversion Shares will be delivered through a clearing system account
other than CREST. 

	13 	 Note: To be included if the Conversion Shares are not a participating security in CREST or any
another clearing system. 

	14 	 Note: The Notice Cut-off Date must be at least forty
(40) business days following the Suspension Date. 

	15 	 Note: The Final Cancellation Date may be up to twelve (12) business days following the Notice Cut-off Date. 

  
 E-4

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