Document:

Exhibit 4.21

 

 

DATED 25 APRIL 2018

 

 

 

 

THE COMMISSIONERS OF HER MAJESTY’S TREASURY

 

 

 

and

 

 

 

THE ROYAL BANK OF SCOTLAND GROUP PLC

 

 

 

 

 

 

 

	
 
    	
 
    	
 
    

 

DEED OF INDEMNITY

	
 
    	
 
    	
 
    

 

 

THIS DEED is made on 25 April 2018

 

BETWEEN:

 

(1)                                THE COMMISSIONERS OF HER MAJESTY’S TREASURY of 1 Horse Guards Road, London SW1A 2HQ (“HMT”); and

 

(2)                                THE ROYAL BANK OF SCOTLAND GROUP PLC, a public company incorporated in Scotland with registered number 45551 and whose registered office is at 36 St Andrew Square, Edinburgh, Scotland EH2 2YB (“RBS”).

 

WHEREAS:

 

(A)                              On 14 December 2009, the European Commission, in its state aid decision in cases N422/2009 and N621/2009 addressed to Her Majesty’s Government of the United Kingdom (the “Government”), approved a series of measures undertaken by HMT in respect of RBS (the “Original State Aid Approvals”).

 

(B)                              In connection with the Original State Aid Approvals, HMT gave a set of commitments to the European Commission (the “Original Commitments”) and RBS undertook in a State Aid Commitment Deed dated 26 November 2009 (the “Original Deed”) to do all acts and things necessary to ensure that HMT was able to comply with the Original State Aid Approvals.

 

(C)                              On 23 November 2009 RBS entered into a State Aid Costs Reimbursement Deed with HMT (the “Costs Deed”), and undertook to reimburse HMT for certain fees, costs and expenses relating to, inter alia, the Original State Aid Approvals (as may be supplemented, modified or replaced).

 

(D)                             On 9 April 2014, the European Commission, in its state aid decision in case number SA.38304 addressed to the Government, approved a further series of measures undertaken by HMT in respect of RBS (the “Revised State Aid Approvals”).

 

(E)                              In connection with the Revised State Aid Approvals, HMT gave a set of revised commitments to the European Commission (the “Revised Commitments”), which replaced the Original Commitments, and RBS undertook in a State Aid Commitment Deed dated 9 April 2014 (the “Revised Deed”) to do all acts and things necessary to ensure that HMT was able to comply with the Revised State Aid Approvals.

 

(F)                               On 18 September 2017, the European Commission, in its state aid decision in case number SA.47702 addressed to the Government, approved a set of new commitments given by HMT to replace the Revised Commitments (the “New Commitments”).

 

(G)                             HMT is bound by the New Commitments and RBS has agreed to do all acts and things necessary to ensure that HMT is able to comply with the New Commitments.

 

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(H)                              RBS and HMT, amongst others, have entered into a framework and state aid deed dated on or about the date of this Deed to replace the Revised Deed (the “Framework and State Aid Deed”).

 

(I)                                    In connection with the Commitments and its obligations under the Framework and State Aid Deed, RBS has agreed to indemnify HMT on the terms of this Deed.

 

NOW THIS DEED WITNESSES AS FOLLOWS:

 

1.                                    DEFINITIONS AND INTERPRETATION

 

1.1                             Capitalised terms used but not defined in this Deed shall have the respective meanings given to them in the Framework and State Aid Deed.

 

1.2                             In this Deed, unless otherwise specified:

 

(A)                              references to clauses and sub-clauses are to clauses and sub-clauses of this Deed;

 

(B)                              the words “include” and “including” shall be deemed to be followed by the phrase “without limitation”;

 

(C)                              headings and sub-headings in this Deed are included for ease of reference only and shall not affect the interpretation of this Deed;

 

(D)                             any reference to a “person” shall be construed so as to include any individual, firm, company, corporation, body corporate, government, state or agency of a state, local or municipal authority or governmental body or any joint venture, association or partnership (whether or not having separate legal personality);

 

(E)                              any reference to a statute, statutory provision or rules or regulations made thereunder shall be construed as a reference to the same as it may have been, or may from time to time be, amended, modified, re-enacted or replaced;

 

(F)                               the expressions “subsidiary” and “subsidiary undertaking” shall have the meaning given in the Companies Act 2006;

 

(G)                             any reference to any other document is a reference to that document as amended, varied or supplemented at any time;

 

(H)                              any reference to a “day” shall mean a period of 24 hours running from midnight to midnight;

 

(I)                                    the rule known as the ejusdem generis rule shall not apply and accordingly general words introduced by the word “other” shall not be given a restrictive meaning by reason of the fact that they are preceded by words indicating a particular class of acts, matters or things; and

 

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(J)                                general words shall not be given a restrictive meaning by reason of the fact that they are followed by particular examples intended to be embraced by the general words.

 

1.3                             References in this Deed to RBS shall be read as including, where applicable, a reference to any relevant subsidiary of RBS undertaking the relevant activity within the Group and, in this context, any obligation on RBS shall be read as including, where applicable, an obligation on RBS to procure that the relevant subsidiary complies with the relevant obligation.

 

2.                                    EFFECTIVENESS

 

All provisions of this Deed shall have full force and effect upon execution and delivery of this Deed by the parties to it.

 

3.                                    COSTS AND EXPENSES; INDEMNITY

 

3.1                             Subject to Clauses 3.3 and 4, RBS shall indemnify HMT in respect of all costs and expenses reasonably and properly incurred by HMT in connection with the negotiation, preparation, execution and carrying into effect of this Deed, the Framework and State Aid Deed and each of the other Package Documents, including (but not limited to):

 

(A)                              the fees of all external legal and other advisers and their disbursements and out-of-pocket expenses, in each case as are reasonably and properly incurred; and

 

(B)                              any and all reasonable costs in relation to the set-up and ongoing administration of the Independent Body (including, without limitation, employees’ salaries and benefits, directors’ fees, audit fees and/or any reasonable fees payable under third party service agreements),

 

(i) except to the extent that such costs and expenses are proven to have arisen as a result of the fraud, gross negligence or wilful default of HMT; (ii) except to the extent such costs and expenses constitute amounts of or in respect of Excluded Taxes; (iii) except to the extent such costs and expenses are to be paid out of income, profits or other gains of the Trust Fund in accordance with clause 5.2 of the Framework and State Aid Deed; and (iv) in respect of any and all reasonable costs in relation to the set up and ongoing administration of the Independent Body, only to the extent that such costs and expenses exceed the amount paid by RBS pursuant to clause 5.1 of the Framework and State Aid Deed.

 

3.2                             Subject to Clauses 3.3 and 4, RBS shall indemnify HMT and its Representatives from and against all loss, payments, costs, expenses or damage which HMT or its Representatives may incur in relation to or arising out of any action, claim or demand that may be brought against HMT or its Representatives under or in connection with this Deed, the Framework and State Aid Deed or any other Package Document by a person (other than a Tax Authority) who is not a party to this Deed or the Framework and State Aid Deed, except to the extent that such action, claim or demand is proven to have arisen as a result of the fraud, gross negligence or wilful default of the person making the claim against RBS.

 

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3.3                             The parties acknowledge and agree that RBS’s obligations and liability pursuant to this Clause 3 shall only relate to:

 

(A)                              in relation to Clause 3.1, those costs and expenses reasonably and properly incurred; and

 

(B)                              in relation to Clause 3.2, those actions, claims or demands brought relating to conduct or events occurring,

 

prior to the date falling six months after the IB Termination Date.

 

4.                                    LIMITATION OF LIABILITY; COSTS DEED

 

4.1                             The total aggregate liability of RBS to HMT and its Representatives under Clause 3 shall not in any event exceed ***.

 

4.2                             HMT acknowledges and agrees that, from the date of this Deed, it shall make no claims for costs and expenses from RBS pursuant to clause 2.2(B) of the Costs Deed in relation to any costs or expenses incurred in connection with the negotiation, preparation, execution and carrying into effect of this Deed, the Framework and State Aid Deed or any other Package Document other than in respect of any costs and expenses of Slaughter and May, N M Rothschild & Sons Limited and PA Consulting Services Limited incurred in connection therewith on or prior to the date of the Framework and State Aid Deed. For the avoidance of doubt, this Clause 4.2 will not prevent HMT from making any claims for costs and expenses from RBS pursuant to clause 2.2(B) of the Costs Deed in relation to any costs or expenses incurred in connection with the Original State Aid Approval, the Original Commitments, the Original Deed, the Revised State Aid Approval, the Revised Commitments or the Revised Deed.

 

4.3                             HMT may not recover under this Deed, or otherwise, more than once in respect of the same losses, payments, costs, expenses or damages suffered, with the intent that there will be no double counting under this Deed or otherwise.

 

5.                                    WARRANTIES

 

RBS represents and warrants to HMT that:

 

(A)                              RBS has the requisite capacity, power and authority to enter into and perform its obligations under this Deed;

 

(B)                              this Deed constitutes a legal, valid and binding obligation of RBS, enforceable against it in accordance with its terms; and

 

(C)                              the execution and delivery of, and the performance by RBS of its obligations under, this Deed will not:

 

(i)                                    result in a material breach of any provision of its memorandum or articles of association or other constitutional documents; or

 

*** Material has been omitted pursuant to a request for confidential treatment and has been filed separately.

 

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(ii)                                 result in a material breach of, or constitute a default under, any instrument to which it is a party or by which it is bound.

 

6.                                    TAX MATTERS

 

Clause 15 of the Framework and State Aid Deed shall apply in relation to this Deed, with any necessary modifications, as they would apply if any reference therein to the Framework and State Aid Deed were instead a reference to this Deed.

 

7.                                    ASSIGNMENT

 

Clause 19 of the Framework and State Aid Deed shall apply in relation to this Deed, with any necessary modifications, as they would apply if any reference therein to the Framework and State Aid Deed were instead a reference to this Deed.

 

8.                                    REMEDIES

 

Clause 20 of the Framework and State Aid Deed shall apply in relation to this Deed, with any necessary modifications, as they would apply if any reference therein to the Framework and State Aid Deed were instead a reference to this Deed.

 

9.                                    INVALIDITY

 

If any provision of this Deed shall be held to be illegal, invalid or unenforceable, in whole or in part, under any enactment or rule of law, such provision or part shall to that extent be deemed not to form part of this Deed but the legality, validity and enforceability of the remainder of this Deed shall not be affected.

 

10.                             NOTICES

 

10.1                      Except as otherwise provided in this Deed, a notice under this Deed shall only be effective if it is in writing. E-mail transmissions are permitted.

 

10.2                      Notices under this Deed shall be sent to a party to this Deed at its postal address, number or email address and for the attention of the individual set out below:

 

	
Party and title
    	
Address
    	
Email   address
    	
 
    
	
of individual
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
RBS
    	
Secretariat
    	
None
    	
 
    
	
 
    	
RBS
    	
 
    	
 
    
	
 
    	
Gogarburn,   PO Box 1000,
    	
 
    	
 
    
	
 
    	
Edinburgh   EH12 1HQ
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Attention:   Company Secretary
    	
 
    	
 
    

 

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HMT
    	
1   Horse Guards Road
    	
***
    	
 
    
	
 
    	
London   SW1A 2HQ  
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Attention:   Director of the
    	
 
    	
 
    
	
 
    	
Financial   Stability Group
    	
 
    	
 
    

 

 

provided that a party may change its notice details on giving notice to the other party of the change in accordance with this Clause 10. That notice shall only be effective on the day falling five clear Business Days after the notification has been received or such later date as may be specified in the notice.

 

10.3                      Any notice given under this Deed shall, in the absence of earlier receipt, be deemed to have been duly given as follows:

 

(A)                              if delivered personally, on delivery;

 

(B)                              if sent by first class post, two clear Business Days after the date of posting; and

 

(C)                              if sent by email, when despatched.

 

10.4                      Any notice given under this Deed outside Working Hours in the place to which it is addressed shall be deemed not to have been given until the start of the next period of Working Hours in such place.

 

11.                             CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

11.1                      Clause 3 confers benefits on the Representatives of HMT and Clause 5 confers benefits on Indemnified Persons and, subject to the remaining provisions of this Clause, such clauses are intended to be enforceable by such Representatives and Indemnified Persons, as applicable, by virtue of the Contracts (Rights of Third Parties) Act 1999.

 

11.2                      Subject to Clause 11.1, the parties to this Deed do not intend that any term of this Deed should be enforceable, by virtue of the Contracts (Rights of Third Parties) Act 1999, by any person who is not a party to this Deed.

 

11.3                      Notwithstanding the provisions of Clause 11.1, and save in respect of (i) Clause 3 and this Clause 11 which in each case may not be rescinded or varied in a way which would be adverse to the rights of the Representatives of HMT without the prior written consent of the Representatives of HMT; and (ii) Clause 5 and this Clause 11 which in each case may not be rescinded or varied in a way which would be adverse to the rights of the Indemnified Persons without the prior written consent of the Indemnified Persons, this Deed may be rescinded or varied in any way and at any time by the parties to this Deed without the consent of any third party.

 

12.                             COUNTERPARTS

 

This Deed may be executed in any number of counterparts, and by the parties on separate counterparts, but shall not be effective until each party has executed at least

 

*** Material has been omitted pursuant to a request for confidential treatment and has been filed separately.

 

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one counterpart.  Each counterpart shall constitute an original of this Deed, but all the counterparts together shall constitute one and the same instrument.

 

13.                             VARIATION

 

Subject to Clause 11, any term of this Deed may be amended, and the observance of any term of this Deed may be waived (either generally or in a particular instance and either retroactively or prospectively), only in writing and signed by or on behalf of each of the parties.

 

14.                             GOVERNING LAW AND JURISDICTION

 

14.1                      Any matter, claim or dispute arising out of or in connection with this Deed, whether such matter, claim or dispute is contractual or non-contractual, shall be governed by and determined in accordance with the laws of England.

 

14.2                      The courts of England have exclusive jurisdiction to hear and decide any suit, action or proceedings, and to settle any disputes, arising out of or in connection with this Deed, and for these purposes, the parties irrevocably submit to the jurisdiction of the courts of England.

 

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IN WITNESS WHEREOF this document has been executed and delivered as a deed the day and year first before written.

 

 

	
Executed as a deed for and on behalf   of
    	
 
    	
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LORD   COMMISSIONER OF HER
    	
 
    	
)
    	
 
    	
 
    
	
MAJESTY’S   TREASURY
    	
 
    	
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in the presence of:
    	
 
    	
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Witness’s   signature:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name   (print):
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Executed as a deed for and on behalf   of
    	
 
    	
)
    	
 
    	
 
    
	
LORD   COMMISSIONER OF HER
    	
 
    	
)
    	
 
    	
 
    
	
MAJESTY’S   TREASURY
    	
 
    	
)
    	
 
    	
 
    
	
in the presence of:
    	
 
    	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Witness’s   signature:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name   (print):
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Executed as a deed by
    	
 
    	
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THE ROYAL   BANK OF SCOTLAND
    	
 
    	
)   By:
    	
 
    	
 
    
	
GROUP PLC
    	
 
    	
)
    	
 
    	
Director
    
	
acting by a director and its   secretary /
    	
 
    	
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two directors
    	
 
    	
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)   By:
    	
 
    	
 
    
	
 
    	
 
    	
)
    	
 
    	
Director   / Secretary
    

 

9Exhibit 4.23

 

EXECUTION VERSION

 

Dated 7 February 2019

 

 

 

 

 

 

 

 

The Royal Bank of Scotland Group plc

 

 

and

 

 

The Commissioners of Her Majesty’s Treasury

 

 

 

 

 

 

 

SHARE PURCHASE DEED

 

 

 

 

 

 

 

 

 

 

 

 

 

Linklaters LLP 
 One Silk Street 
 London EC2Y 8HQ

 

Telephone: (44-20) 7456 2000

Facsimile: (44-20) 7456 2222

 

Ref: L-257105

 

 

Share Purchase Deed

 

This Deed is made on 7 February 2019 between:

 

(1)                            The Royal Bank of Scotland Group plc,  a company incorporated in Scotland with company number SC045551 whose registered office is at 36 St Andrew Square, Edinburgh, EH2 2YB (the “Company”); and

 

(2)                            The Commissioners of Her Majesty’s Treasury of 1 Horse Guards Road, London SW1A 2HQ (“HM Treasury”).

 

Whereas:

 

(A)                               HM Treasury beneficially holds Ordinary Shares (as defined below) and has publicly announced its intention to sell such shares over a period of time.

 

(B)                               The Company and HM Treasury have agreed that the Company may, with HM Treasury’s agreement, make off-market purchases of Ordinary Shares from HM Treasury (or its nominee).

 

(C)                               Such off-market purchases of Ordinary Shares may be made at such times and on such number of occasions as the Company and HM Treasury may agree, including through a Directed Trading Programme or in conjunction with a Share Offering (each as described below).

 

(D)                              This Deed sets out the terms and conditions of any such off-market purchase referred to in Recital (B) and constitutes the contract required by section 694 of the Companies Act 2006 for such off-market purchases of its own shares by the Company.

 

It is agreed as follows:

 

1                                        Interpretation

 

In this Deed, unless the context otherwise requires, the provisions in this Clause 1 apply: 

 

1.1                              Definitions

 

“Approved Price Range” means a price per Ordinary Share (exclusive of expenses) that is:

 

(a)                            greater than or equal to the nominal value of an Ordinary Share at the relevant time (being £1.00 at the date of this Deed); and

 

(b)                           less than or equal to the higher of:

 

(i)                                     105 per cent. of the average of the midmarket quotations for an Ordinary Share as derived from The Daily Official List of The London Stock Exchange for the five Trading Days immediately preceding the day on which the Ordinary Share is contracted to be purchased; and

 

(ii)                                  that stipulated by Commission–adopted Regulatory Technical Standards pursuant to Article 5(6) of the Market Abuse Regulation (2014/596/EU);

 

“Business Day”  means any day (other than a Saturday or Sunday) on which clearing banks are open for a full range of banking transactions in London;

 

“Company Nominated Broker(s)”  has the meaning set out in Clause 3.2.2(i);

 

 

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“Directed Trading Programme”  means an arrangement under which one or more Company Nominated Brokers and one or more HM Treasury Nominated Brokers may (in their sole discretion and acting on behalf of the Company or HM Treasury, as the case may be) agree purchases and sales of Ordinary Shares at the Relevant Market Price on any Trading Day during a Directed Trading Programme Period;

 

“Directed Trading Programme Period”  has the meaning set out in Clause 3.2.1;

 

“Encumbrance”  means any pledge, mortgage, charge, lien or encumbrance or other claim;

 

“FSMA”  means the Financial Services and Markets Act 2000, including any regulations made pursuant thereto;

 

“HM Treasury Nominated Broker(s)”  has the meaning set out in Clause 3.2.2(ii);

 

“Listing Rules”  means the Listing Rules made by the Financial Conduct Authority pursuant to section 73A of FSMA, as amended from time to time;

 

“Main Market”  means the main market for listed securities of London Stock Exchange plc;

 

“Off-Market Purchase Completion”  means completion of any off-market purchase of Ordinary Shares from HM Treasury (or its nominee) by the Company in accordance with Clause 4;

 

“Ordinary Share”  means an ordinary share of £1.00 in the capital of the Company;

 

“Relevant Market Price”  means the price per Ordinary Share prevailing as at the relevant Time of Sale as appearing on, or derived from, Bloomberg page (quote/RBS:LN) (or any successor page) in respect of the Ordinary Shares or, when the Time of Sale is outside of trading hours on the Main Market, such price as at the most recent close of trading on the Main Market;

 

“Share Offering”  means any offer or sale of Ordinary Shares by HM Treasury (or its nominee) by way of or including an institutional placement, whether to persons located in the United Kingdom and/or in any other jurisdiction excluding, for the avoidance of doubt, any sale of Ordinary Shares to the Company pursuant to this Deed;

 

“Share Offering Price”  means, in respect of any Share Offering, the price at which each Ordinary Share is to be sold in such Share Offering (as determined through a bookbuilding process) or, if different, the price at which each Ordinary Share is to be sold in the institutional placement that forms part of that Share Offering (as determined through a bookbuilding process);

 

“Shareholder Approval”  means a special resolution of the Company’s members approving the terms of this Deed pursuant to section 694 of the Companies Act 2006 and authorising the Company to make off-market purchases from HM Treasury (or its nominee);

 

“Time of Sale”  means the time and date on which the Company (or the Company Nominated Broker(s) acting on its behalf) agrees to make an off-market purchase other than an off-market purchase in conjunction with a Share Offering;

 

“Trading Day”  means any day during which the Ordinary Shares are traded on the Main Market; and

 

“Wholly Owned Entity”  has the meaning set out in Clause 11.2.

 

 

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1.2                              Interpretation

 

1.2.1              The Interpretation Act 1978 shall apply to this Deed in the same way as it applies to an enactment.

 

1.2.2              References to a statutory provision include any subordinated legislation made from time to time under that provision.

 

1.2.3              References to a statutory provision include that provision as from time to time modified, supplemented, replaced or re-enacted so far as such modification, supplement, replacement or re-enactment applies or is capable of applying to any transactions entered into in accordance with this Deed.

 

1.2.4                   References in this Deed to clauses are to Clauses of this Deed.

 

1.2.5              Headings shall be ignored in construing this Deed.

 

2                                        Right to make off-market purchases of Ordinary Shares

 

2.1                              Subject to the agreement of HM Treasury, the Company shall be entitled to make an off-market purchase of Ordinary Shares from HM Treasury (or its nominee), provided that:

 

2.1.1              Shareholder Approval has been obtained;

 

2.1.2              the proposed off-market purchase will, when aggregated with any other related party transactions (as such term is defined in the Listing Rules) entered into between the Company or any member of its corporate group and HM Treasury (or an associate (as such term is defined in the Listing Rules) of HM Treasury) within the previous 12 months and which has not been approved by the Company’s members be treated as a “smaller” related party transaction under Listing Rule 11.1.10R;

 

2.1.3              without prejudice to Clause 2.2.2, the proposed off-market purchase will not result in more than the lower of 4.99 per cent. of:

 

(i)                                     the Company’s issued ordinary share capital as at the date of this Deed; and

 

(ii)                                  the Company’s issued ordinary share capital as at the date of the relevant off-market purchase,

 

having been purchased within the previous 12 months;

 

2.1.4              subject to Clause 2.2.1, the price payable by the Company to HM Treasury (or its nominee) for any off-market purchase of an Ordinary Share shall be the Relevant Market Price provided that such price is within the Approved Price Range;

 

2.1.5              the consideration payable by the Company to HM Treasury (or its nominee) for any off-market purchase pursuant to this Deed expressed as a percentage of the Company’s market capitalisation at the date of such off-market purchase (the “Consideration Percentage”) will not (when aggregated with the Consideration Percentage for any other purchases by the Company from HM Treasury (or its nominee) within the previous 12 months) exceed 4.99 per cent.;

 

2.1.6              written confirmation has been received from a sponsor in accordance with Listing Rule 11.1.10R(2)(b); and

 

2.1.7              the Prudential Regulation Authority has approved the relevant off-market purchase.

 

 

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2.2                         If an off-market purchase is made in conjunction with a Share Offering pursuant to Clause 3.2, then the following additional conditions shall apply:

 

2.2.1                   the price payable by the Company to HM Treasury (or its nominee) for such off-market purchase of an Ordinary Share shall be the relevant Share Offering Price (and, for the avoidance of doubt, Clause 2.1.4 shall not apply); and

 

2.2.2                   the number of Ordinary Shares which the Company may elect to purchase off-market at the time of such Share Offering shall not exceed 50 per cent. of the number of Ordinary Shares, which are the subject of the relevant Share Offering.

 

3                                   Procedure for off-market purchases

 

3.1                         In respect of any off-market purchase other than an off-market purchase conducted through a Directed Trading Programme or in conjunction with a Share Offering:

 

3.1.1                   the Company or HM Treasury may notify the other party in accordance with Clause 7 of the number of Ordinary Shares it offers to purchase or sell, as the case may be, off-market at the Relevant Market Price and the proposed Time of Sale and completion date for such off-market purchase and the time by which such offer must be accepted;

 

3.1.2                   on receipt of any notification pursuant to Clause 3.1.1, HM Treasury or the Company, as the case may be, may notify the other party in accordance with Clause 7 of its decision to accept the Company’s offer to purchase or HM Treasury’s offer to sell, as the case may be, off-market such number of Ordinary Shares on the terms specified in the notification. Any notification pursuant to this Clause 3.1.2 must be given to the other party by the time specified in the notification of the offer. If HM Treasury or the Company does not so notify the other party pursuant to this Clause 3.1.2 then it shall be deemed to have declined the relevant offer; and

 

3.1.3                   on giving notice of the acceptance of an offer pursuant to Clause 3.1.2, HM Treasury shall be bound to sell and the Company shall be bound to purchase the number of Ordinary Shares specified in the relevant notice at the Relevant Market Price at the relevant Off-Market Purchase Completion.

 

3.2                         In respect of any off-market purchase conducted through a Directed Trading Programme:

 

3.2.1                   the Company and HM Treasury shall agree to commence a Directed Trading Programme for a specified period of time which shall end no later than the date of termination of this Deed (the “Directed Trading Programme Period”);

 

3.2.2                   on or prior to the commencement of the Directed Trading Programme Period:

 

(i)                                the Company shall appoint one or more broker(s) (the “Company Nominated Broker(s)”) to purchase on behalf of the Company (at the sole discretion of such Company Nominated Broker(s)) Ordinary Shares from HM Treasury or its nominee (or the HM Treasury Nominated Broker(s) acting on behalf of HM Treasury) at the Relevant Market Price (subject to a maximum price) on any Trading Day for the duration of the Directed Trading Programme Period (up to a maximum aggregate number of Ordinary Shares); and

 

 

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(ii)                             HM Treasury shall appoint one or more broker(s) (the “HM Treasury Nominated Broker(s)”) to sell on behalf of HM Treasury (at the sole discretion of such HM Treasury Nominated Broker(s)) Ordinary Shares to the Company (or the Company Nominated Broker(s)) at the Relevant Market Price on any Trading Day for the duration of the Directed Trading Programme Period (up to a maximum aggregate number of Ordinary Shares); and

 

3.2.3              the Company Nominated Broker(s) and the HM Treasury Nominated Broker(s) may (in their sole discretion and acting on behalf of the Company or HM Treasury, as the case may be) agree purchases and sales of Ordinary Shares in accordance with any instructions given to them by the Company and HM Treasury as the case may be (including those referred to in Clause 3.2.2) and subject to the conditions in Clause 2.1.

 

3.3                              In respect of any off-market purchase in conjunction with a Share Offering:

 

3.3.1     subject to applicable laws and HM Treasury agreeing to sell Ordinary Shares to the Company, HM Treasury shall notify the Company in accordance with Clause 7 of a proposed Share Offering prior to the announcement of such Share Offering;

 

3.3.2     on receipt of any notification pursuant to Clause 3.3.1 and subject to applicable laws, the Company shall notify HM Treasury in accordance with Clause 7 of any decision to make an off-market purchase in conjunction with the proposed Share Offering referred to in Clause 3.3.1. Any such notice shall specify the number of Ordinary Shares to be purchased off-market and may not be given following the announcement of such Share Offering; and

 

3.3.3     on giving notice pursuant to Clause 3.3.2, the Company shall be bound to purchase and, if it agrees to sell, HM Treasury shall be bound to sell the number of Ordinary Shares specified in the relevant notice at the relevant Share Offering Price at the relevant Off-Market Purchase Completion.

 

3.4                              Subject to applicable law, each party shall provide the other party with a reasonable opportunity to comment on any references to any proposed off-market purchase in any announcement relating to such an off-market purchase or, if applicable, a Share Offering.

 

4                                        Off-Market Purchase Completion

 

4.1                              On any Off-Market Purchase Completion:

 

4.1.1              the Company (or the Company Nominated Broker(s) acting on its behalf) shall pay to HM Treasury (or the HM Treasury Nominated Broker(s) acting on its behalf) an amount equal to the product of (i) the number of Ordinary Shares the subject of the relevant off-market purchase; and (ii) the price payable for each Ordinary Share in accordance with Clause 2.1.4 or 2.2.1, as applicable; and

 

4.1.2              HM Treasury (or the HM Treasury Nominated Broker(s) acting on its behalf) shall procure the transfer to the Company (or the Company Nominated Broker(s) acting on its behalf) of Ordinary Shares the subject of the relevant off-market purchase.

 

4.2                              An Off-Market Purchase Completion shall take place at such time as the Company (or the Company Nominated Broker(s) acting on its behalf) and HM Treasury (or the HM Treasury Nominated Broker(s) acting on its behalf) may agree in writing, provided that if an off-

 

 

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market purchase is made in conjunction with a Share Offering it shall take place at the same time as, or immediately following and on the same business day as, settlement of the relevant Share Offering.

 

4.3                              If any condition in Clause 2 is not satisfied or, in the case of an off-market purchase in conjunction with a Share Offering, the relevant Share Offering does not proceed to settlement, neither the Company (or the Company Nominated Broker(s) acting on its behalf) nor HM Treasury (or the HM Treasury Nominated Broker(s) acting on its behalf) shall have any obligations in respect of the relevant proposed off-market purchase or any claim against the other in respect of it.

 

4.4                              Ordinary Shares sold in an off-market purchase pursuant to this Deed shall be sold free from Encumbrances.

 

5                                        Termination

 

5.1                              Subject to Clause 5.2, this Deed shall terminate with immediate effect and all rights and obligations of the parties under this Deed shall cease forthwith upon the earlier of:

 

5.1.1              the date that the Shareholder Approval expires; and

 

5.1.2              agreement in writing between the parties to terminate this Deed, provided that, if either party requests that this Deed be terminated, the other party shall not unreasonably withhold or delay its agreement.

 

5.2          Termination of this Deed shall be without prejudice to the rights of either party that may have arisen prior to termination. The whole of this Clause 5 and Clauses 6 to 15 shall survive termination of this Deed.

 

6                                        Warranties/Undertakings

 

6.1          HM Treasury warrants and undertakes to the Company that the following warranties will be true and not misleading (i) as at the date of each notification by the Company or HM Treasury pursuant to Clause 3, (ii) on each Trading Day during a Directed Trading Programme Period on which a Company Nominated Broker agrees to purchase Ordinary Shares from HM Treasury or its nominee (or the HM Treasury Nominated Broker(s) acting on behalf of HM Treasury), and (iii) as at the date of each Off-Market Purchase Completion:

 

6.1.1              each of the Ordinary Shares the subject of the relevant off-market purchase is beneficially owned by the Crown and HM Treasury (or its nominee) has the power to sell or procure the sale of the Ordinary Shares the subject of the relevant off-market purchase, in each case free from all Encumbrances; and

 

6.1.2              the Ordinary Shares the subject of the relevant off-market purchase are all fully paid.

 

7                                        Notices

 

7.1                              Any notice or other communication in connection with this Deed shall be in writing and shall be sufficiently given or served if delivered or sent:

 

7.1.1              in the case of the Company to:

Corporate Governance & Regulatory Affairs

 

 

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RBS Gogarburn 
 PO BOX 1000 
 Edinburgh

EH12 1HQ

 

Attention: The Company Secretary 

with a copy to:

 

Head of Investor Relations

The Royal Bank of Scotland Group plc

280 Bishopsgate

London

EC2M 4RB

 

Email address: Matthew.Waymark@rbs.co.uk

 

7.1.2                   in the case of HM Treasury to:

1 Horse Guards Road 
 London SW1A 2HQ

 

Attention: Director, Financial Stability

Email address: FinancialStabilityGMS@HMTreasury.gov.uk

 

7.2                              A copy of each notice delivered by email shall be sent by hand or post to the recipient in accordance with Clause 7.1, but failure to send such a copy shall not render any notice ineffective.

 

7.3                              Any such notice or other communication shall be delivered by hand, post or email. In the absence of evidence of earlier receipt, a notice or other communication is deemed given:

 

7.3.1              if sent by email, when sent (provided that an email shall be deemed not to have been sent if the sender receives a delivery failure notification); or

 

7.3.2              if delivered by hand or post, at the time of actual delivery.

 

7.4                              A party may change its notice details for the purposes of Clause 7.1 by notifying the other party of such change, provided that such notification shall only be effective on:

 

7.4.1              the date specified in the notification as the date on which the change is to take place, being not less than five Business Days after the date of such notice; or

 

7.4.2              if no date is specified or the date specified is less than five Business Days after the date on which notice is given, the date falling five Business Days after notice of any such change has been given.

 

8                                        Entire agreement

 

The Deed contains the whole agreement between the parties in relation to the subject matter of this Deed to the exclusion of any terms implied by law which may be excluded by contract and supersedes any previous written or oral agreement between the parties in relation to the matters dealt with in this Deed.

 

 

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9                                        Stamp Duty

 

The Company shall pay (or, if applicable, reimburse HM Treasury, its nominee and/or any HM Treasury Nominated Broker for) all stamp duty or stamp duty reserve tax (and associated fines, penalties and interest) arising as a result of:

 

9.1.1              the execution and delivery of this Deed;

 

9.1.2              the purchase or repurchase of (or agreement to purchase or repurchase) Ordinary Shares by, or the transfer (or agreement to transfer) Ordinary Shares to, the Company, a Company Nominated Broker or any other agent or nominee of the Company as contemplated in this Deed (whether pursuant to a Directed Trading Programme, in conjunction with a Share Offering or otherwise); and/or

 

9.1.3              the transfer (or agreement to transfer) Ordinary Shares to any HM Treasury Nominated Broker acting as agent for HM Treasury (and not, for the avoidance of doubt, as principal) as contemplated in this Deed,

 

in each case other than:

 

(i)                                     fines, penalties or interest payable as a result of any unreasonable delay or wilful default by HM Treasury or a HM Treasury Nominated Broker in accounting for the relevant stamp duty or stamp duty reserve tax; and

 

(ii)                                  for the avoidance of doubt, stamp duty or stamp duty reserve tax (and associated fines, interest and penalties) arising in respect of: (x) transfers of, or agreements to transfer, Ordinary Shares to persons other than the Company, any HM Treasury Nominated Broker, any Company Nominated Broker or another agent or nominee of the Company; or (y) transfers of, or agreements to transfer, Ordinary Shares to an HM Treasury Nominated Broker where the Ordinary Shares are to be purchased from such broker by a person other than the Company or a Company Nominated Broker or any other agent or nominee of the Company.

 

10                                Further Assurances

 

Each party agrees to do all things and execute all deeds, instruments, transfers or other documents as may be necessary or desirable to give full effect to the provisions of this Deed and the transactions contemplated by it.

 

11                                Assignment

 

11.1                       Subject to Clause 11.2, neither party to this Deed shall be permitted to assign, transfer or novate, or purport to assign, transfer or novate, all or any of its rights, benefits or obligations under this Deed to any other person without the prior written consent of the other party.

 

11.2                       HM Treasury shall be permitted to transfer, assign or novate its rights and obligations under this Deed to any entity which is wholly owned, directly or indirectly, by HM Treasury (a “Wholly Owned Entity”). In the event of any such assignment, transfer or novation of rights or obligations, HM Treasury shall procure that, immediately prior to any such Wholly Owned Entity ceasing to be wholly owned directly or indirectly by HM Treasury, such rights or obligations (as appropriate) shall be novated, assigned or transferred to HM Treasury or to any other Wholly Owned Entity.

 

 

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12       Counterparts

 

This Deed may be executed in any number of counterparts. All counterparts together will be taken to constitute one instrument.

 

13       Variation

 

No variation of this Deed shall be effective unless in writing and signed by or on behalf of each party.

 

14       Third Party Rights

 

A person who is not a party to this Deed has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of, or enjoy any benefit under, this Deed.

 

15       Governing Law and Jurisdiction

 

This Deed and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with English law. Each party submits to the exclusive jurisdiction of the English courts to settle any dispute which may arise out of or in connection with this Deed.

 

 

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In witness whereof this Deed has been duly executed and delivered as a Deed by the Parties on the day and year first before written.

 

 

	
SIGNED as a Deed by THE ROYAL BANK OF   SCOTLAND GROUP PLC, acting by
    	

    	
 
    
	
 
    	
 
    
	
___________________________, a Director
    	
 
    
	
 
    	
Signature of Director
    
	
 
    	
 
    
	
 
    	
 
    
	
In the presence of:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name of witness:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    

 

 

 

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Executed as a deed by
    	
)
    	
 
    
	
 
    	
)
    	
 
    	
 
    
	
 
    	
)
    	
 
    	
 
    
	
COMMISSIONER   OF HER MAJESTY’S TREASURY, in the presence of:
    	
)
    	
 
    	
 
    
	
)
    	
Commissioner of Her Majesty’s Treasury
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Witness’s signature:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name (print):
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Executed as a deed by
    	
)
    	
 
    	
 
    
	
 
    	
)
    	
 
    	
 
    
	
 
    	
)
    	
 
    
	
COMMISSIONER   OF HER MAJESTY’S TREASURY, in the presence of:
    	
)
    	
Commissioner of Her Majesty’s Treasury
    
	
)
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Witness’s signature:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name (print):
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
 
    

 

 

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