Document:

Document

Exhibit 10.18dd

Each of the Stock Plan Subcommittee of the Compensation Committee and the Compensation Committee of the Board of Directors of The Estée Lauder Companies Inc. reserves the right to change provisions of this Agreement to comply with the American Jobs Creation Act of 2004.

Non-Annual Restricted Stock Unit Agreement for Executive Officers Under
The Estée Lauder Companies Inc.
Amended and Restated Fiscal 2002 Share Incentive Plan (the “Plan”)

This RESTRICTED STOCK UNIT AGREEMENT (“Agreement”) provides for the granting by The Estée Lauder Companies Inc., a Delaware corporation (the “Company”), to the participant, an employee of the Company or one of its subsidiaries (the “Participant”), of Stock Units under the Plan representing a notional account equal to a corresponding number of shares of the Company’s Class A Common Stock, par value $0.01 (the “Shares”), subject to the terms below (the “Restricted Stock Units”).  The name of the “Participant,” the “Grant Date” (or “Award Date”), the “Number of Restricted Stock Units,” the “Vesting Schedule,” and the “Vesting Period” are stated in the “Notice of Grant” attached or posted electronically together with this Agreement and are incorporated by reference.  The other terms of this award are stated in this Agreement and in the Plan. Terms not defined in this Agreement are defined in the Plan, as amended.  The Plan is referred to as the “Grant Plan” in the electronic Notice of Grant.
1.Award Grant. The Company hereby awards to the Participant an award of Restricted Stock Units in respect of the number of Shares set forth in the Notice of Grant.  
2.Vesting.  The Restricted Stock Units granted to the Participant will vest and become payable in accordance with the Vesting Schedule set forth in the Notice of Grant.  This schedule indicates the vesting date upon which the Participant will be entitled to receive Shares.  Except as otherwise provided in this Agreement, any Restricted Stock Units that are unvested when the Participant terminates employment with the Company or any of its subsidiaries will be forfeited.  
3.Payment of Awards.  
(a)Each Restricted Stock Unit represents the right to receive one (1) Share when the Restricted   Stock Unit vests.
(b)In addition, each Restricted Stock Unit carries a Dividend Equivalent Right, payable in shares at the same time as payment of Restricted Stock Units in Shares in accordance with this Section 3 and Section 4.  Dividend Equivalent Rights are deemed part of the related Restricted Stock Units under this Agreement.
(c)In the event of a Change in Control that constitutes a “change in control event” within the meaning of Section 409A of the Code, the Company may, in its sole discretion and in accordance with Treasury Regulation § 1.409A-3(j)(4)(ix)(B), vest and settle the Restricted Stock Units and terminate this Agreement.  In such event, settlement of the Restricted Stock Units shall be made within two (2) weeks following the Change in Control.  In the event that Restricted Stock Units are not settled pursuant to the immediately preceding sentence, such Restricted Stock Units shall be assumed by an acquirer in which case, vesting will be subject to Sections 2 and 4.  If the Shares cease to be outstanding immediately after the Change in Control (e.g., due to a merger with and 

into another entity), then the consideration to be received per Share will equal the consideration paid to each shareholder per Share generally upon the Change in Control.   
(d)Any dividends or other distributions on Shares received after vesting of the Restricted Stock Units, after applicable withholding, that are held in an account for the Participant at the agent engaged by the Company for the purposes of holding the Shares for the Participant upon Vesting (the “Agent”), will be automatically reinvested by default, in accordance with the Agent’s applicable procedures, in additional whole and/or fractional Shares.  If the Participant does not wish to have dividends or other distributions reinvested or if the Participant would like to change a current election, the Participant must notify the Agent prior to the record date for such dividend or distribution (or such earlier date as may be required by the Agent).
4.Termination of Employment. If the Participant’s employment terminates during the Vesting Period, all unvested Restricted Stock Units will be forfeited except as follows, subject to Section 3:
(a)Death.  If the Participant dies, unvested Restricted Stock Units will vest on the date of death.  Payment of the vested Restricted Stock Units will occur on the seventy-fifth (75th) day following the Participant’s death and in accordance with any applicable laws or Company procedures regarding the payments.  Notwithstanding anything to the contrary contained in this section 4(a), if the Participant dies during active employment after the attainment of age fifty-five (55) and the completion of ten (10) or more years of service, or after the attainment of age sixty-five (65) and the completion of five (5) or more years of service, without formally retiring under the terms of the Estée Lauder Inc. Retirement Growth Account Plan (or an affiliate or a successor plan or program of similar purpose), unvested Restricted Stock Units will continue to vest and be paid in accordance with the Vesting Schedule to the Participant’s estate/heirs/beneficiaries.   
(b)Disability.  If the Participant becomes totally and permanently disabled (as determined under the Company’s long-term disability program, or an affiliate or a successor plan or program of similar purpose), the unvested Restricted Stock Units will continue to vest and be paid in accordance with the Vesting Schedule. Notwithstanding anything to the contrary contained in this Section 4(c), if the Participant becomes totally and permanently disabled (as determined under the Company’s long-term disability program) during active employment after the attainment of age fifty-five (55) and the completion of ten (10) or more years of service, or after the attainment of age sixty-five (65) and the completion of five (5) or more years of service, without formally retiring under the terms of the Estée Lauder Inc. Retirement Growth Account Plan (or an affiliate or a successor plan or program of similar purpose), unvested Restricted Stock Units will continue to vest and be paid in accordance with the Vesting Schedule.  
(c)Termination of Employment Without Cause.  If the Participant’s employment is terminated by the Company or relevant subsidiary without Cause (as defined below), any unvested Restricted Stock Units will vest pro rata for each full month in which the Participant is paid salary during the Vesting Period after the last vesting date (i.e., the proration equals a fraction, the numerator of which is the number of full calendar months of service completed during the Vesting Period after the last vesting date through the Participant’s last day paid and the denominator of which is the number of full calendar months after the last vesting date that are remaining in the Vesting Period). For this purpose, “last vesting date” is the Grant Date if the first vesting date has not yet occurred. Such prorated Restricted Stock Units will be paid in accordance with the Vesting Schedule and payment in respect of any unvested Restricted Stock Unit after last day of active employment (last 

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day worked) will be subject to satisfaction of the conditions precedent that the Participant neither (i) accepts an offer to work for, or otherwise agrees to actively participate in or render services to any business on behalf of any competitor of the Company, any of its subsidiaries, or affiliates (whether as an employee, consultant or otherwise); nor (ii) conducts himself or herself in a manner adversely affecting the Company.  The term “competitor” means any business that is engaged in, or is preparing to become engaged in, the makeup, skin care, hair care, toiletries or fragrance business or other business in which the Company is engaged or preparing to become engaged, or that otherwise competes with, or is preparing to compete with, the Company.  Notwithstanding anything to the contrary contained in this Section 4(d), if the Participant’s employment is terminated without Cause within six (6) months of the Grant Date, the Restricted Stock Units shall not vest and shall become null and void on the last day of active employment (last day worked).
(d)Resignation.  If the Participant voluntarily terminates his or her employment (e.g., by voluntarily resigning or retiring) other than due to disability, which is subject to Sections 4(b) above, all Restricted Stock Units that are not vested as of the effective date of resignation will be forfeited.
(e)Termination of Employment with Cause.  If the Participant is terminated for Cause, all Restricted Stock Units that are not vested as of the effective date of the termination will be forfeited.  For this purpose, “Cause” means any breach by the Participant of any of his or her material obligations under any Company policy or procedure, including, without limitation, the Code of Conduct.  Notwithstanding the foregoing, in the case of a Participant who has an employment agreement that includes a definition of “Cause,” “Cause” for purposes of this Section 4(f) shall have the same meaning as defined in such employment agreement in effect between the Participant and the Company or its U.S. subsidiary, including an employment agreement entered into after the Grant Date.
(f)Termination after a Change in Control.  If, on or after a Change in Control, the Participant terminates for Good Reason (as defined below), dies, becomes disabled, formally retires, or is terminated at the instance of the Company or relevant subsidiary without Cause, in each case as described in this Section 4, the unvested Restricted Stock Units will immediately vest in full and, solely if such Change in Control constitutes a “change in control event” within the meaning of Section 409A of the Code and such termination occurs within two (2) years of such “change in control event,” will be immediately paid.  Otherwise, such Restricted Stock Units will immediately vest, but will only be paid at such times as they would otherwise be paid in accordance with this Agreement.  For this purpose, “Good Reason” means the occurrence of any of the following, without the express written consent of the Participant:
(i)the assignment to the Participant of any duties inconsistent in any material adverse respect with the Participant’s position, authority or responsibilities immediately prior to the Change in Control, or any other material adverse change in such position, including title, authority or responsibilities;
(ii)any failure by the Company to pay any amounts for compensation or benefits owed to the Participant or a material reduction of the overall amounts of compensation and benefits in effect prior to the Change in Control, other than an insubstantial or inadvertent failure remedied by the Company promptly after receipt of notice thereof given by the Participant; 

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(iii)the Company’s requiring the Participant to be based at any office or location more than fifty (50) miles (eighty (80) Kilometers) from that location at which he performed his or her services for the Company immediately prior to the Change in Control, except for travel reasonably required in the performance of the Participant’s responsibilities; or
(iv)any failure by the Company to obtain the assumption and agreement to perform this Agreement by a successor, unless such assumption occurs by operation of law.
5.No Rights of Stock Ownership. This grant of Restricted Stock Units does not entitle the Participant to any interest in or to any voting or other rights normally attributable to Share ownership other than the Dividend Equivalent Rights granted under paragraph 3 above.
6.Withholding Taxes. Regardless of any action the Company or the Participant’s employer (the “Employer”) takes with respect to any or all income tax, social security (or social insurance), payroll tax, fringe benefits tax, payment on account or other tax-related items related to the participation in the Plan and this Agreement and legally applicable to the Participant (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally due by the Participant is and remains his or her responsibility and may exceed the amount actually withheld by the Company or the Employer.  Furthermore, the Participant acknowledges that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Restricted Stock Units, including, but not limited to, the grant, vesting or settlement of the Restricted Stock Units, the subsequent sale of Shares acquired under the Plan and the receipt of any dividends and/or any Dividend Equivalent Rights, and (ii) do not commit to and are under no obligation structure the terms of the grant of the Restricted Stock Units or any aspect of the Participant’s participation in the Plan to reduce or eliminate his or her liability for Tax-Related Items or achieve any particular tax result.  If the Participant is or becomes subject to Tax-Related Items in more than one jurisdiction, the Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.
Prior to any relevant taxable event, or tax withholding event, as applicable, the Participant agrees to pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all withholding obligations of the Company and/or the Employer.  In this regard, the Participant authorizes the Company and/or the Employer, or his or her respective agents, at the Company’s discretion, to satisfy any applicable withholding obligations with regard to all Tax-Related Items by one or a combination of the following: (i) withholding from the Participant’s wages or other cash compensation paid by the Company and/or the Employer; (ii) withholding from proceeds of the sale of the Shares acquired upon settlement of the Restricted Stock Units either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization); and/or (iii) withholding in whole Shares to be issued upon settlement of the Restricted Stock Units, provided that the Company only withholds the amount of whole Shares necessary to satisfy the withholding requirements, not to exceed the maximum withholding tax rate in the Participant’s applicable jurisdiction. If the Company satisfies the withholding obligation for the Tax-Related Item by withholding a number of Shares as described herein, the Participant will be deemed to have been issued the full number of Shares due to Participant at vesting, notwithstanding that a number of the Shares is held back solely for purposes of such Tax-Related Items.
Finally, the Participant further agrees to pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of his or her participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if the Participant fails to comply with his or 

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her obligations in connection with the Tax-Related Items. 
7.Nonassignability. This award may not be assigned, pledged, or transferred, except, if the Participant dies, to a designated beneficiary or by will or by the laws of descent and distribution. The foregoing restrictions do not apply to transfers under a court order, including, but not limited to, any domestic relations order.
8.Effect Upon Employment. The Participant’s right to continue to serve the Company or any of its subsidiaries as an officer, employee, or otherwise, is not enlarged or otherwise affected by an award hereunder.  Nothing in this Agreement or the Plan gives the Participant any right to continue in the employ of the Company or any of its subsidiaries to interfere in any way with any right the Company or any of its subsidiaries may have to terminate his or her employment at any time.  Payment of Shares is not secured by a trust, insurance contract or other funding medium, and the Participant does not have any interest in any fund or specific asset of the Company by reason of this Award or the account established on his or her behalf.  A Restricted Stock Unit award confers no rights as a shareholder of the Company until Shares are delivered to the Participant.
9.Electronic Notice, Delivery Acceptance.  The Company may, in its sole discretion, decide to deliver any documents related to Restricted Stock Units awarded under the Plan or future Restricted Stock Units that may be awarded under the Plan by email or other electronic means.  The Participant hereby consents to receive such documents by email or other electronic delivery and agrees to access information concerning the Plan through an on-line or electronic system established and maintained by the Company or by another third party designated by the Company. 
10.Data Privacy. 
As a condition of this Restricted Stock Unit grant, the Participant hereby expressly consents to the collection, use, disclosure, transfer and other processing of his or her personal data as set out in this Section 10 and as otherwise required by applicable law. 
The Company, any of its subsidiaries, affiliates, or agents, the Employer, and the Company’s stock plan service provider will process personal data of the Participant for the purposes of implementing, managing and administering the Participant’s grant of Restricted Stock Units and the Plan.  Such personal data, in electronic or other form, may include the Participant's name, home address, telephone number, email address, date of birth, social insurance number or other national identification number, beneficiary information (including beneficiary name, address social insurance number or other national identification number, and date of birth), hire date, salary and deductions, banking details, tax certification information, any shares or directorships held in the Company, details of all equity grants or any other entitlement to Shares awarded, canceled, vested, unvested, or outstanding in the Participant’s favor.
For the purposes set out above, personal data may be transferred to countries other than the country in which the Participant resides, including to the United States and Australia.  As required by applicable law, when personal data is transferred to a country outside of the country in which the Participant resides, measures will be put in place to ensure that the personal data is protected as required by law.  These measures may include European Union Standard Contractual Clauses.
The Participant’s personal data will be retained for as long as necessary to implement, manage and administer the Participant’s grant of Restricted Stock Units and participation in the Plan.  The Participant may request to access, modify or delete his or her personal data, request additional information about the processing of his or her personal data, or refuse or withdraw consent to the processing of his or her personal data by contacting the local human resources representative in writing.  Refusal or withdrawal of consent may affect the 

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Participant’s ability to participate in the Plan but will not affect the Participant’s employment status or service and career with the Company.
11.Discretionary Nature and Acceptance of Award.  The Participant agrees to be bound by the terms of this Agreement and acknowledges, understands and agrees that:
a.The Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement;
b.The award is exceptional, voluntary and occasional, and does not create any contractual or other right to receive future awards, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been awarded in the past; 
c.All decisions with respect to future awards, if any, will be at the sole discretion of the Company;  
d.The Participant’s participation in the Plan is voluntary;  
e.The Restricted Stock Units and any Shares acquired under the Plan, and the income and value of the same, are not intended to replace any pension rights or compensation;
f.The Participant’s participation in the Plan shall not create a right to further employment with the Employer and shall not interfere with the ability of the Company or the Employer to terminate the Participant’s employment at any time;  
g.This award will be deemed accepted unless it is declined by way of written notice by the Participant within thirty (30) days of the Grant Date to the Equity Based Compensation Department of the Company located at 767 Fifth Avenue, New York, NY 10153;
h.The Restricted Stock Units are an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or any of its subsidiaries, and which is outside the scope of Participant’s employment or service contract, if any; 
i.The Restricted Stock Units and any Shares acquired under the Plan, and the income and value of the same, are not part of the Participant’s normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal end of service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Employer, the Company or any of its subsidiaries; 
j.In the event the Participant is not an employee of the Company, the Restricted Stock Units and the Participant’s participation in the Plan will not be interpreted to form an employment or service contract or relationship with the Company or any subsidiary of the Company; 
k.The future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty; 

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l.In consideration of the award, no claim or entitlement to compensation or damages shall arise from forfeiture of the Restricted Stock Units or diminution in value of the Restricted Stock Units, or Shares acquired upon vesting of the Restricted Stock Units, resulting from termination of the Participant’s employment (for any reason whatsoever and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed, or the terms of the Participant’s employment), and in consideration of the award, the Participant irrevocably releases the Employer, the Company and any of its subsidiaries from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by acknowledging and agreeing to or signing the Notice of Grant, the Participant shall be deemed irrevocably to have waived his or her right to pursue or seek remedy for any such claim or entitlement against the Employer, the Company or subsidiary;
m.For purposes of the Restricted Stock Units, the Participant’s employment or service relationships will be considered terminated as of the date of the Participant is no longer actively providing services to the Employer, the Company or any of its subsidiaries as determined by the Administrator in its sole discretion (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or the terms of the Participant’s employment agreement, if any);
n.The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan or the Participant’s acquisition or sale of the underlying Shares; and
o.The Participant is hereby advised to consult with Participant’s own personal tax, legal and financial advisors regarding the Participant’s participation in the Plan before taking any action related to the Plan.
12.Failure to Enforce Not a Waiver.  The Company’s failure to enforce at any time any provision of this Agreement does not constitute a waiver of that provision or of any other provision of this Agreement.
13.Governing Law.  This Agreement is governed by and is to be construed according to the laws of the State of New York, that apply to agreements made and performed in that state, without regard to its choice of law provisions.  For purposes of litigating any dispute that arises under the Restricted Stock Units or this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of New York, and agree that such litigation will be conducted in the courts of New York County, New York, or the federal courts for the United States for the Southern District of New York, and no other courts, where the Restricted Stock Units are made and/or to be performed.
14.Partial Invalidity.  The invalidity or illegality of any provision of this Agreement will be deemed not to affect the validity of any other provision.  Furthermore, it is the parties’ intent that any order striking any portion of this Agreement and/or the Plan should modify the stricken terms as narrowly as possible to give as much effect as possible to the intentions of the parties hereunder.
15.Entire Agreement.  This Agreement and the Plan constitute the entire agreement between the Participant and the Company regarding the award and supersede all prior and contemporaneous agreements and understandings, oral or written, between the parties regarding the award.  Except as expressly set forth herein, this Agreement (and any provision of this Agreement) may not be modified, changed, clarified, or interpreted by the parties, except in a writing specifying the modification, change, clarification, or interpretation, and signed by a duly authorized Company officer.

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16.Section 409A Compliance. This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and any regulations, rulings, or guidance provided thereunder.  Each payment under this Agreement shall be treated as a separate payment for purposes of Section 409A of the Code.  In no event may the Participant, directly or indirectly, designate the calendar year of any payment to be made under this Agreement.  The Company reserves the unilateral right to amend this Agreement upon written notice to the Participant in order to prevent taxation under Section 409A of the Code.
17.Recoupment.  Notwithstanding any other provision of this Agreement to the contrary, the Participant acknowledges and agrees that the Restricted Stock Units, any Shares acquired pursuant thereto and/or any amount received with respect to any sale of such Shares are subject to potential cancellation, recoupment, rescission, payback or other action in accordance with the terms of the Company’s recoupment policy as in effect on the Grant Date and as such policy may be amended from time to time in order to comply with changes in laws, rules or regulations that are applicable to the Restricted Stock Units and Shares.  The Participant agrees and consents to the Company’s application, implementation and enforcement of (a) the recoupment policy, and (b) any provision of applicable law relating to cancellation, recoupment, rescission or payback of compensation and expressly agrees that the Company may take such actions as are necessary to effectuate the recoupment policy (as applicable to the Participant) or applicable law without further consent or action being required by the Participant.  For purposes of the foregoing, the Participant expressly and explicitly authorizes the Company to issue instructions, on his or her behalf, to any brokerage firm and/or third party administrator engaged by the Company to hold his or her Shares and other amounts acquired under the Plan to re-convey, transfer or otherwise return such Shares and/or other amounts to the Company upon the enforcement of the provisions contained in this Section 17.  To the extent that the terms of this Agreement and the recoupment policy conflict, the terms of the recoupment policy shall prevail.
18.Insider Trading/Market Abuse Laws.  By participating in the Plan, the Participant agrees to comply with the Company’s Insider Trading Policy.  Further, the Participant acknowledges that the Participant’s country of employment (and country of residence, if different) may also have laws or regulations governing insider trading and that such laws or regulations may impose additional restrictions on the Participant’s ability to participate in the Plan (e.g., acquiring or selling Shares) and that the Participant is solely responsible for complying with such laws or regulations.
19.Private Placement.  The grant of the Restricted Stock Units is not intended to be a public offering of securities in the Participant’s country of employment (and country of residence, if different).  The Company has not submitted any registration statement, prospectus or other filings with the local securities authorities (unless otherwise required under law), and this grant of Restricted Stock Units is not subject to the supervision of the local authorities.
20.Exchange Control, Tax and/or Foreign Asset/Account Reporting.  The Participant acknowledges that there may be exchange control, tax, foreign asset and/or account reporting requirements that may affect the Participant’s ability to acquire or hold Shares acquired under the Plan or cash received from participating in the Plan (including from any Dividend Equivalents Rights paid with respect to the Restricted Stock Units or dividends paid on Shares acquired under the Plan) in a brokerage/bank account or legal entity outside the Participant’s country of employment (and country of residence, if different).  The Participant may be required to report such accounts, assets, the balances therein, the value thereof and/or the transactions related thereto to the tax or other authorities in the Participant’s country of employment (and country of residence, if different) .  The Participant also may be required to repatriate sale proceeds or other funds received as a result of the Participant’s participation in the Plan to the Participant’s country of employment (and country of residence, if different) through a designated bank or broker within a certain time after receipt.  The Participant acknowledges 

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that it is the Participant’s responsibility to be compliant with such regulations, and the Participant should consult his or her personal legal advisor for any details.
21.Language. If the Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control, unless otherwise prescribed by local law.
22.Imposition of Other Requirements.  The Company reserves the right to impose other requirements on the Participant’s participation in the Plan, on the Restricted Stock Units and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.
23.Addendum.  The award shall be subject to any terms and conditions for the Participant’s country of employment (and country of residence, if different) set forth an addendum attached hereto (“Addendum”).  Moreover, if the Participant transfers residence and/or employment to another country reflected in an Addendum to this Agreement, the terms and conditions for such country will apply to the Participant to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law, rules and regulations or to facilitate the operation and administration of the Restricted Stock Units and the Plan (or the Company may establish alternative terms and conditions as may be necessary or advisable to accommodate the Participant’s transfer). Any applicable Addendum constitutes part of this Agreement.
24.Hedging Policy and Pledging Policy.  Employees are subject to the Company’s Hedging Policy that, among other things, prohibits employees from hedging outstanding equity grants.  This means you may not hedge the equity award represented by this Agreement or any outstanding equity awards represented by previous agreements.  Employees are also subject to the Company’s Pledging Policy.  The Hedging Policy and Pledging Policy are available on the Corporate Intranet.
IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer as of the Grant Date set forth in the Notice of Grant.

												
		The Estée Lauder Companies Inc.		
				
				
		By:
		
			Michael O’Hare
	
			Executive Vice President,	
			Global Human Resources	

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ADDENDUM
COUNTRY-SPECIFIC PROVISIONS FOR NON-U.S. PARTICIPANTS

In addition to the terms and conditions set forth in the Agreement, the Restricted Stock Units awarded are subject to the following terms and conditions.  If the Participant is employed in a country identified in this Addendum, the additional terms and conditions for such country will apply.  If the Participant transfers to one of the countries identified in this Addendum, the special terms and conditions for such country will apply to the Participant, to the extent the Company determines, in its sole discretion, that the application of such terms and conditions is necessary or advisable to comply with local laws, rules and/or regulations or to facilitate the operation and administration of the Restricted Stock Units awarded and the Plan (or the Company may establish alternative terms and conditions as may be necessary or advisable to accommodate the Participant’s transfer).
All defined terms contained in this Addendum shall have the same meaning as set forth in the Plan and the Agreement.
ARGENTINA
Securities Law Notification.  Neither the Restricted Stock Units nor the underlying Shares are publicly offered or listed on any stock exchange in Argentina.  The Company’s grant of Restricted Stock Units is private and is not subject to the supervision of any Argentine governmental authority. 
AUSTRALIA
Breach of Law.  Notwithstanding anything to the contrary in the Agreement or the Plan, the Participant will not be entitled to, and shall not claim any benefit (including without limitation a legal right) under the Plan if the provision of such benefit would give rise to a breach of Part 2D.2 of the Corporations Act 2001 (Cth), any other provision of that Act, or any other applicable statute, rule or regulation which limits or restricts the giving of such benefits.
Tax Deferral.  Restricted Stock Units awarded under the Agreement are intended to be subject to tax deferral under Subdivision 83A-C of the Income Tax Assessment Act 1997 (Cth) (subject to the conditions in that act). 
Australian Offer Document.  In addition to the Agreement and the Plan, the Participant must review the Australian Offer Document for additional important information pertaining to the Restricted Stock Units.  By accepting the Restricted Stock Units, the Participant acknowledges and confirms that the Participant has reviewed these documents.
BRAZIL
Compliance with Law.  By accepting the Restricted Stock Units, the Participant acknowledges and agrees to comply with applicable Brazilian laws to pay any and all applicable taxes associated with the vesting of the Restricted Stock Units, the receipt of any dividends or dividend equivalents, and the sale of Shares acquired under the Plan. 
Labor Law Acknowledgment.  The Participant expressly acknowledges and agrees, for all legal purposes, (a) the benefits provided under the Agreement and the Plan are the result of commercial transactions unrelated to the Participant’s employment; (b) the Agreement and the Plan are not a part of the terms and conditions of the 

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Participant’s employment; and (c) the income from the Restricted Stock Units, if any, is not part of the Participant’s remuneration from employment.
CANADA
Settlement in Shares Only.  Notwithstanding anything to the contrary in the Agreement or the Plan, if the Participant is a resident of Canada, all Restricted Stock Units shall be settled only in Shares (and may not be settled in cash).  English Language.  The parties to the Agreement acknowledge that it is their express wish that the Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.  Les parties reconnaissent avoir exigé la rédaction en anglais de la présente convention, ainsi que de tous documents exécutés, avis donnés et procédures judiciaires intentées, directement ou indirectement, relativement à ou suite à la présente convention.
CHILE
Private Placement.  The following provision shall supplement Section 19 (Private Placement) of the Agreement: 
The grant of the Restricted Stock Units hereunder is not intended to be a public offering of securities in Chile but instead is intended to be a private placement.
a) The starting date of the offer is the Grant Date (as defined in the Agreement), a) and this offer conforms to General Ruling no. 336 of the Chilean Superintendence of Securities and
Insurance; 
b) The offer deals with securities not registered in the registry of securities or in the registry of foreign securities of the Chilean Superintendence of Securities and Insurance, and therefore such securities are not subject to its oversight; 
c) The Company is not obligated to provide public information in Chile regarding the foreign securities, as such securities are not registered with the Chilean Superintendence of Securities and Insurance; and 
d) The foreign securities shall not be subject to public offering as long as they are not registered with the corresponding registry of securities in Chile.
a) La fecha de inicio de la oferta será el de la fecha de otorgamiento (o “Grant Date”, según este término se define en el documento denominado “Agreement”) y esta oferta se acoge a la norma de Carácter General n° 336 de la Superintendencia de Valores y Seguros Chilena; 
b) La oferta versa sobre valores no inscritos en el registro de valores o en el registro de valores extranjeros que lleva la Superintendencia de Valores y Seguros Chilena, por lo que tales valores no están sujetos a la fiscalización de ésta; 
c) Por tratar de valores no inscritos no existe la obligación por parte del emisor de entregar en Chile información pública respecto de esos valores; y
 d) Esos valores no podrán ser objeto de oferta pública mientras no sean inscritos en el registro de valores correspondiente.

11

CHINA
Foreign Exchange Control Laws.  The following provisions shall govern the Participant’s participation in the Plan if the Participant is a national of the People’s Republic of China (“China”) resident in mainland China, or if determined to be necessary or appropriate by the Company in its sole discretion:
The Participant agrees to hold the Shares received upon settlement of the Restricted Stock Units with the Company’s designated broker.  Upon a termination of employment or service for any reason, the Participant shall be required to sell all Shares issued pursuant to the Restricted Stock Units as soon as administratively possible (or such period as may be required by the State Administration of Foreign Exchange or the Company) of the termination date and repatriate the sales proceeds to China in the manner designated by the Company.  For purposes of the foregoing, the Company shall establish procedures for effectuating the forced sale of the Shares (including procedures whereby the Company may issue sell instructions on behalf of the Participant), and the Participant hereby agrees to comply with such procedures and take any and all actions as the Company determines, in its sole discretion, are necessary or advisable for purposes of complying with local laws, rules and regulations in China.
The Participant understands and agrees that the repatriation of dividends and sales proceeds may need to be effected through a special exchange control account established by the Company or its subsidiaries, and the Participant hereby consents and agrees that dividends issued on Shares and sales proceeds from the sale of Shares acquired under the Plan may be transferred to such account by the Company on the Participant’s behalf prior to being delivered to the Participant.  Dividends and/or sales proceeds may be paid to the Participant in U.S. dollars or local currency at the Company’s discretion.  If dividends and/or sales proceeds are paid to the Participant in U.S. dollars, the Participant understands that the Participant will be required to set up a U.S. dollar bank account in China so that the dividends or proceeds may be deposited into this account.  If dividends and/or sales proceeds are paid to the Participant in local currency, the Participant acknowledges that the Company is under no obligation to secure any particular exchange conversion rate and that the Company may face delays in converting the dividends and/or proceeds to local currency due to exchange control restrictions.  The Participant agrees to bear any currency fluctuation risk between the time dividends are issued or Shares are sold and the net proceeds are converted into local currency and distributed to the Participant.  The Participant further agrees to comply with any other requirements that may be imposed by the Company or its subsidiaries in China in the future in order to facilitate compliance with exchange control requirements in China.  The Participant acknowledges and agrees that the processes and requirements set forth herein shall continue to apply following the Participant’s termination of employment.
Neither the Company nor any of its subsidiaries shall be liable for any costs, fees, lost interest or dividends or other losses the Participant may incur or suffer resulting from the enforcement of the terms of this Addendum or otherwise from the Company’s operation and enforcement of the Plan, the Agreement and the Restricted Stock Units in accordance with Chinese law including, without limitation, any applicable State Administration of Foreign Exchange rules, regulations and requirements.
COLOMBIA
Labor Law Acknowledgement.  The Participant acknowledges that, pursuant to Article 128 of the Colombian Labor Code, the Plan and related benefits do not constitute a component of his or her “salary” for any legal purpose.

12

DENMARK
Stock Option Act.  Notwithstanding any provisions in the Agreement to the contrary, if the Participant is determined to be an “Employee,” as defined in section 2 of the Danish Act on the Use of Rights to Purchase or Subscribe for Shares etc. in Employment Relationships (the “Stock Option Act”), the treatment of the Restricted Stock Units upon Termination shall be governed by Sections 4 and 5 of the Stock Option Act.  However, if the provisions in the Agreement or the Plan governing the treatment of the Restricted Stock Unit upon a Termination are more favorable, the provisions of the Agreement or the Plan will govern. 
FRANCE 
English Language.  The Participant acknowledges and agrees that it is the Participant’s wish that the Agreement, this addendum, as well as all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Restricted Stock Units, either directly or indirectly, be drawn up in English.
Langue anglaise.  Le bénéficiaire admet et convient que c’est l’intention exprès du bénéficiaire que l’Accord, le Plan et tous les autres documents, remarque et les poursuites judiciaires entrées, données ou instituées conformément au Restricted Stock Units, être établi dans l’anglais.  Si le bénéficiaire a reçu l’Accord, le Plan ou autres documents rattachés au Restricted Stock Units traduit dans une langue autre que l’anglais et si le sens de la version traduite est différent que la version anglaise, la version anglaise contrôlera
HONG KONG
IMPORTANT NOTICE.  WARNING: The contents of the Agreement, this Addendum, the Plan, and all other materials pertaining to the Restricted Stock Units and/or the Plan have not been reviewed by any regulatory authority in Hong Kong.  The Participant is hereby advised to exercise caution in relation to the offer thereunder.  If the Participant has any doubts about any of the contents of the aforesaid materials, the Participant should obtain independent professional advice.
Settlement is Shares Only.  Notwithstanding anything to the contrary in the Agreement or the Plan, if the Participant is a resident of Hong Kong, all Restricted Stock Units shall be settled only in Shares (and may not be settled in cash).
Nature of the Plan.  The Company specifically intends that the Plan will not be treated as an occupational retirement scheme for purposes of the Occupational Retirement Scheme Ordinance (“ORSO”).  To the extent any court, tribunal or legal/regulatory body in Hong Kong determines that the Plan constitutes an occupational retirement scheme for the purpose of ORSO, the grant of Restricted Stock Units shall be null and void.
INDIA
Repatriation Requirements.  The Participant understand that he or she must repatriate any cash dividends paid on Shares acquired under the Plan and any proceeds from the sale of such Shares to India within a certain period of time after receipt of the proceeds. It is the Participant’s sole responsibility to comply with applicable exchange control laws in India.

13

ISRAEL
Indemnification for Tax Liabilities.  The Participant expressly consents and agrees to indemnify the Company and/or its subsidiaries and hold them harmless from any and all liability attributable to taxes, interest or penalties thereon, including without limitation, liabilities relating to the necessity to withhold any taxes from the settlement of the Restricted Stock Units or any other payments made to the Participant pursuant to the Restricted Stock Units.
ITALY
Data Privacy.  The following provision shall replace Section 10 (Data Privacy) of the Agreement in its entirety:
The Participant understands that the Employer and/or the Company hold certain personal information about the Participant, including but not limited to, the Participant’s name, home address, email address and telephone number, date of birth, national insurance number or other identification number, salary, nationality, job title, any Shares or directorship held in the Company, details of all awards or other entitlement to Shares awarded, cancelled, vested, unvested or outstanding in the Participant’s favor (“Data”), for purpose of implementing, administering and managing the Plan.  The Participant is aware that providing the Company with Data is necessary for the performance of the Agreement and that the Participant’s refusal to provide such Data would make it impossible for the Company to perform its contractual obligations and may affect the Participant’s ability to participate in the Plan.
The Controller of personal data processing is Estée Lauder Companies Inc., 767 Fifth Avenue, New York, New York 10153, U.S.A., its representative in Italy Estée Lauder S.r.l. with registered offices at Via Turati, 3, Milano, 20121 Italy.  The Participant understands that Data may be transferred to third parties assisting in the implementation, administration and management of the Plan, including any transfer required to a broker or other third party with whom Shares acquired pursuant to this grant of Restricted Stock Units or cash from the sale of such Shares may be deposited.  Furthermore, the recipients that may receive, possess, use, retain and transfer such Data for the above mentioned purposes may be located in the Participant’s country, or elsewhere, including outside of the European Union and the recipient’s country may have different data privacy laws and protections than the Participant’s country.  The processing activity, including the transfer of the Participant’s personal data abroad, out of the European Union, as herein specified and pursuant to applicable laws and regulations, does not require the Participant’s consent thereto as the processing is necessary for the performance of contractual obligations related to the implementation, administration and management of the Plan.  The Participant understands that Data processing relating to the purposes above specified shall take place under automated or non-automated conditions, anonymously when possible, that comply with the purposes for which Data are collected and with confidentiality and security provisions as set forth by applicable laws and regulations, with specific reference to D.lgs. 196/200
The Participant understands that Data will be held only as long as is required by law or as necessary to implement, administer and manage the Participant’s participation in the Plan.  The Participant understands that, pursuant to art 7 of D.lgs 196/2003, the Participant has the right, including but not limited to, to access, delete, update, request the rectification of the Data and cease, for legitimate reasons, Data processing.  Furthermore, the Participant is aware that Data will not be used for direct marketing purposes.  In addition, the Data provided can be reviewed and questions or complaints can be addressed by contacting a local representative available at the following address, Via Turati, 3, Milano, 20121 Italy.

14

MALAYSIA
Data Privacy.  The following provision shall replace Section 10 (Data Privacy) of the Agreement in its entirety:
						
	The Participant hereby explicitly and
unambiguously consents to the collection, use
and transfer, in electronic or other form, of
the Participant's personal data, as described
in this addendum and any other grant
materials by and among, as applicable, the
Company and Subsidiaries for the exclusive purpose of implementing, administering and managing the Participant's participation in the Plan.
The Participant understands that the
Company and subsidiaries may hold certain
personal information about the Participant,
including, but not limited to, the Participant's
name, home address and telephone number,
date of birth, social insurance number or
other identification number, e-mail address,
salary, nationality, job title, any Shares or
directorships held in the Company, details of
all awards or any other entitlement to Shares
awarded, canceled, exercised, vested, unvested
or outstanding in the Participant's favor, for
the exclusive purpose of implementing,
administering and managing the Plan
(“Data”).  The Data is supplied by the
Company and also by the Participant through
information collected in connection with the
Agreement and the Plan.
The Participant understands that Data will be transferred to the current stock plan service providers or a stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  The Participant
understands that the recipients of Data may
be located in the United States or elsewhere,
and that the recipients’ country (e.g., the
United States) may have different data privacy laws and protections than the Participant's country.  The Participant understands that if
the Participant resides outside the United
States, the Participant may request a list with
the names and addresses of any potential
	Peserta dengan ini secara eksplisit dan tanpa
sebarang keraguan mengizinkan pengumpulan,
penggunaan dan pemindahan, dalam bentuk
elektronik atau lain-lain, data peribadi seperti
yang diterangkan dalam Lampiran ini dan
apa-apa bahan pemberian yang lain oleh dan
di antara, seperti yang berkenaan, Syarikat
dan Anak-anak Syarikat untuk tujuan eksklusif
bagi melaksanakan, mentadbir dan
menguruskan penyertaan Peserta di dalam
Pelan.
Peserta memahami bahawa Syarikat
Anak-anak Syarikat mungkin memegang
maklumat peribadi tertentu tentang Peserta,
termasuk, tetapi tidak terhad kepada, nama
Peserta, alamat rumah dan nombor telefon,
tarikh lahir, nombor insurans sosial atau
nombor pengenalan lain, e-mel, gaji,
kewarganegaraan, jawatan, apa-apa Saham
atau jawatan pengarah yang dipegang dalam
Syarikat, butir-butir semua Anugerah, atau
apa-apa hak lain atas Saham yang
dianugerahkan, dibatalkan, dilaksanakan,
terletak hak, tidak diletak hak ataupun yang
belum dijelaskan bagi faedahanda, untuk
tujuan eksklusif bagi melaksanakan, mentadbir
dan menguruskan Pelan tersebut ("Data").
Data tersebut dibekalkan oleh Syarikat dan
juga oleh Peserta berkenaan dengan
Perjanjian dan Pelan.
Peserta memahami bahawa Data ini akan dipindahkan kepada pembekal perkhidmatan
pelan saham semasa atau pembekal
perkhidmatan pelan saham yang mungkin
dipilih oleh Syarikat pada masa depan, yang
membantu Syarikat dengan pelaksanaan,
pentadbiran dan pengurusan Pelan.  Peserta
memahami bahawa penerima-penerima Data
mungkin berada di Amerika Syarikat atau
mana-mana tempat lain, dan bahawa negara
penerima-penerima (contohnya, Amerika
Syarikat) mungkin mempunyai undang-undang
privasi data dan perlindungan yang berbeza
daripada negara Peserta.  Peserta memahami

15

						
	recipients of the Data by contacting the
Participant's local human resources representative at Estée Lauder Malaysia Sdn. Bhd, Suite 18.01, Level 18, Centrepoint South, The Boulevard, Mid Valley City, Lingkaran Syed Putra, Kuala lumpur 59200, Malaysia.
The Participant authorizes the Company, the
stock plan service provider and any other
possible recipients which may assist the
Company (presently or in the future) with
implementing, administering and managing
the Plan to receive, possess, use, retain and
transfer the Data, in electronic or other form,
for the purposes of implementing,
administering and managing the Participant's participation in the Plan, including any transfer of such Data as may be required to a broker, escrow agent or other third party with whom the Shares received upon vesting of the awards may be deposited.  The Participant understands that Data will be held only as long as is necessary to implement, administer and manage the Participant's participation in the Plan.  The Participant understands that if
the Participant resides outside the United
States, the Participant may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data, limit the processing of Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Participant's local human resources representative.  Further, the Participant understands that the Participant is providing the consent herein on a purely voluntary basis.  If the Participant does not
consent, or if the Participant later seeks to
revoke the Participant's consent, the
Participant's employment status or service
and career with the Company will not be adversely affected; the only adverse
consequence of refusing or withdrawing the
Participant's consent is that the Company may not be able to grant the Participant equity awards or administer or maintain such awards. Therefore, the Participant
understands that refusing or withdrawing the Participant's consent may affect the
	bahawa sekiranya Peserta menetap di luar
Amerika Syarikat, Peserta boleh meminta satu
senarai yang mengandungi nama-nama dan
alamat-alamat penerima-penerima Data yang
berpotensi dengan menghubungi wakil sumber
manusia tempatan Peserta di Estée Lauder Malaysia Sdn. Bhd, Suite 18.01, Level 18, Centrepoint South, The Boulevard, Mid Valley City, Lingkaran Syed Putra, Kuala lumpur 59200, Malaysia.  Peserta memberi kuasa kepada
Syarikat, pembekal perkhidmatan pelan saham
dan mana-mana penerima-penerima
kemungkinan lain yang mungkin akan
membantu Syarikat (pada masa sekarang atau
pada masa depan) dengan melaksanakan,
mentadbir dan menguruskan Pelan untuk
menerima, memiliki, menggunakan,
mengekalkan dan memindahkan Data, dalam
bentuk elektronik atau lain-lain, bagi tujuan
melaksanakan, mentadbir dan menguruskan
penyertaan Peserta di dalam Pelan, termasuk
segala pemindahan Data tersebut
sebagaimana yang dikehendaki kepada broker,
egen eskrow atau pihak ketiga dengan siapa
Saham diterima semasa peletakhakan
Anugerah mungkin didepositkan.  Peserta
memahami bahawa Data hanya akan disimpan
selagi ia adalah diperlukan untuk
melaksanakan, mentadbir, dan menguruskan
penyertaan Peserta dalam Pelan.  Peserta
memahami bahawa sekiranya Peserta menetap
di luar Amerika Syarikat, Peserta boleh, pada
bila-bila masa, melihat Data, meminta
maklumat tambahan mengenai penyimpanan
dan pemprosesan Data, meminta bahawa
pindaan-pindaan dilaksanakan ke atas Data,
mengehadkan pemprosesan Data atau menolak
atau menarik balik persetujuan dalam ini,
dalam mana-mana kes, tanpa kos, dengan
menghubungi secara bertulis tempatan wakil sumber manusia Peserta.  Selanjutnya, Peserta
memahami bahawa Peserta memberikan
persetujuan di sini secara sukarela
semata-mata.  Sekiranya Peserta tidak
bersetuju, atau sekiranya Peserta kemudian
membatalkan persetujuan, status Peserta
pekerjaan atau perkhidmatan dan kerjaya
dengan Syarikat tidak akan terjejas;

16

						
	Participant's ability to participate in the Plan.
For more information on the consequences of
the Participant's refusal to consent or
withdrawal of consent, the Participant
understands that the Participant may contact
the Participant's local human resources representative.
Please take note that by electronically accepting this Agreement, the Participant has confirmed that the Participant explicitly, voluntarily and unambiguously consents to the collection, use and transfer of the Participant's personal data in accordance with the terms in this notification. However, if for any reason the Participant does not consent to the processing of the Participant's personal data, the Participant has the right to reject such consent by contacting the Participant's local human resources representative at Estée Lauder Malaysia Sdn. Bhd, Suite 18.01, Level 18, Centrepoint South, The Boulevard, Mid Valley City, Lingkaran Syed Putra, Kuala lumpur 59200, Malaysia.
	satu-satunya akibat buruk sekiranya Peserta
tidak bersetuju atau menarik balik Peserta
persetujuan adalah bahawa Syarikat tidak
akan dapat memberikan Peserta anugerah
ekuiti lain atau mentadbir atau mengekalkan
anugerah-anugerah tersebut.  Oleh itu, Peserta
memahami bahawa keengganan atau
penarikan balik persetujuan boleh menjejaskan
keupayaan Peserta untuk mengambil bahagian
dalam Pelan.  Untuk maklumat lebih lanjut
mengenai akibat-akibat keengganan Peserta
untuk memberikan keizinan atau penarikan
balik keizinan, Peserta memahami bahawa
Peserta boleh menghubungi wakil sumber
manusia tempatan.
Sila ambil perhatian bahawa dengan menerima
Perjanjian ini secara elektronik, Peserta
mengesahkan bahawa Peserta secara eksplisit,
sukarela, dan tanpa sebarang keraguan
bersetuju dengan pengumpulan, penggunaan,
dan pemindahan data peribadi Peserta
mengikut terma-terma dalam notis ini.
Walaubagaimanapun, jika atas apa-apa
sebab-sebab tertentu Peserta tidak bersetuju
dengan pemprosesan data peribadi, Peserta
mempunyai hak untuk menolak persetujuan
Peserta dengan menghubungi wakil sumber
manusia tempatan di masukkan Estée Lauder Malaysia Sdn. Bhd, Suite 18.01, Level 18, Centrepoint South, The Boulevard, Mid Valley City, Lingkaran Syed Putra, Kuala lumpur 59200, Malaysia.

MEXICO
Commercial Relationship.  The Participant expressly recognizes acknowledges that the Participant’s participation in the Plan and the Company’s grant of Restricted Stock Units do not constitute an employment relationship between the Participant and the Company.  The Participant has been granted the Restricted Stock Units as a consequence of the commercial relationship between the Company and his or her Employer ECLA S.A. de C.V. or Lauder Cosmeticos S.A. de C.V. (“Estée Lauder Mexico”), and Estée Lauder Mexico is the Participant’s sole Employer.  Based on the foregoing, (a) the Participant expressly recognizes that the Plan and the benefits the Participant may derive from the Participant’s participation in the Plan do not establish any rights between the Participant and Estée Lauder Mexico, (b) the Plan and the benefits the Participant may derive from the Participant’s participation in the Plan are not part of the employment conditions and/or benefits provided by Estée Lauder Mexico, and (c) any modifications or amendments of the Plan by the Company, or a termination of the Plan by the Company, shall not constitute a change or impairment of the terms and conditions of the Participant’s employment with Estée Lauder Mexico.

17

Extraordinary Item of Compensation.  The Participant expressly recognizes and acknowledges that the Participant’s participation in the Plan is a result of the discretionary and unilateral decision of the Company, as well as the Participant’s free and voluntary decision to participate in the Plan in accordance with the terms and conditions of the Plan, the Agreement and this Addendum.  As such, the Participant acknowledges and agrees that the Company, in its sole discretion, may amend and/or discontinue the Participant’s participation in the Plan at any time and without any liability.  The value of the Restricted Stock Units is an extraordinary item of compensation outside the scope of the Participant’s employment contract, if any.  The Restricted Stock Units are not part of the Participant’s regular or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits, or any similar payments, which are the exclusive obligations of the Company’s subsidiary in Mexico that employs the Participant.
NETHERLANDS
Waiver of Termination Rights.  The Participant waives any and all rights to compensation or damages as a result of a termination of employment or service, insofar as those rights result or may result from: (a) the loss or diminution in value of such rights or entitlements under the Plan; or (b) the Participant ceasing to have rights, or ceasing to be entitled to any Restricted Stock Unit awards under the Plan as a result of such termination.
NEW ZEALAND
Securities Law Notice.
Warning
This is an offer of Restricted Stock Units which, upon vesting and settlement in accordance with the terms of the Plan and the Agreement, will be converted into Shares.  Shares give the Participant a stake in the ownership of the Company.  The Participant may receive a return on the Shares acquired under the Plan if dividends are paid.
If the Company runs into financial difficulties and is wound up, the Participant will be paid only after all creditors and holders of preference shares have been paid.  The Participant may lose some or all of his or her investment, if any.
New Zealand law normally requires people who offer financial products to give information to investors before they invest.  This information is designed to help investors to make an informed decision.  The usual rules do not apply to this offer because it is made under an employee share purchase scheme.  As a result, the Participant may not be given all the information usually required.  The Participant also will have fewer other legal protections for this investment.  On this basis, the Participant is advised to ask questions, read all documents carefully, and seek independent financial advice before committing.
The Shares are quoted on the New York Stock Exchange (“NYSE”).  This means that if the Participant acquires Shares under the Plan, the Participant may be able to sell the Shares on the NYSE if there are interested buyers.  The price will depend on the demand for the Shares.
For information on risk factors impacting the Company’s business that may affect the value of the Shares, the Participant should refer to the risk factors discussion on the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are filed with the U.S. Securities and Exchange Commission and are 

18

available online at www.sec.gov, as well as on the Company’s “Investor Relations” website at www.elcompanies.com/investors.
PANAMA
Securities Law Notice.  The grant of the Restricted Stock Units and the issuance of Shares at vesting are not subject to registration under Panamanian law as they are not intended for the public, but solely for the Participant’s benefit.
PERU
Labor Law Acknowledgement.  In accepting the Restricted Stock Units, the Participant acknowledges that the Restricted Stock Units are granted ex gratia for the purpose of rewarding the Participant as set forth in the Plan.
Securities Law Notice.  The grant of the Restricted Stock Units is considered a private offering in Peru; therefore, neither the grant of Restricted Stock Units, nor the issuance of Shares at vesting of the Restricted Stock Units, is subject to securities registration in Peru.  For more information concerning the offer, the Participant should refer to the Plan, this Agreement and any other grant documents made available to the Participant by the Company.  For more information regarding the Company, the Participant should refer to the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q available at www.sec.gov, as well as on the Company’s “Investor Relations” website at www.elcompanies.com/investors.
PORTUGAL
Language Consent.  The Participant hereby expressly declares that he or she has full knowledge of the English language and has read, understood and freely accepted and agreed with the terms and conditions established in the Plan and this Agreement.
Conhecimento da Língua.  Pela presente, o Participante declara expressamente que tem pleno conhecimento da língua inglesa e que leu, compreendeu e livremente aceitou e concordou com os termos e condições estabelecidas no Plano e no Acordo (Agreement em inglés).
ROMANIA
Termination. The following provision shall supplement Section 4 (Termination of Employment) of the Agreement:
Termination of employment shall include the situation where the Participant’s employment contract is terminated by operation of law on the date the Participant reaches the standard retirement age and has completed the minimum contribution record for receipt of state retirement pension or the relevant authorities award the Participant an early-retirement pension of any type.
English Language.  The Participant hereby expressly agrees that this Agreement, the Plan as well as all documents, notices and proceedings entered into, relating directly or indirectly hereto, be drawn up or communicated only in the English language.  Angajatul consimte în mod expres prin prezentul ca acest Contract, Planul precum şi orice alte documente, notificări, înştiinţări legate direct sau indirect de acest Contract să fie redactate sau efectuate doar în limba engleză.

19

RUSSIA
Securities Law Notification.  The Agreement, the Plan and all other materials that the Participant may receive regarding participation in the Plan do not constitute advertising or an offering of securities in Russia.  Absent any requirement under local law, the issuance of securities pursuant to the Plan has not and will not be registered in Russia; hence, the securities described in any Plan-related documents may not be used for offering or public circulation in Russia.
Repatriation Requirements.  The Participant expressly agrees to promptly repatriate proceeds resulting from the sale of Shares acquired under the Plan to a foreign currency account at an authorized bank in Russia if legally required at the time the Shares are sold and to comply with all applicable local foreign exchange rules and regulations.  Neither the Company nor any of its subsidiaries shall be liable for any fines or penalties resulting from the Participant’s failure to comply with applicable law. Russian residents are advised to contact their personal advisor regarding their obligation resulting from their participation in the Plan as significant penalties may apply in the case of non-compliance with exchange control requirements and because such exchange control requirements may change.
Data Privacy.  This provision shall supplement Section 10 (Data Privacy) of the Agreement: 
The Participant hereby acknowledges that the Participant has read and understood the terms regarding collection, processing and transfer of Data contained in Section 10 (Data Privacy) of the Agreement and, by participating in the Plan, the Participant agrees to provide an executed data privacy consent to the Employer or the Company (or any other agreements or consent that may be required by the Employer or the Company) that the Company and/or the Employer may deem necessary to obtain under the data privacy laws in Russia, either now or in the future.  The Participant understand that the Participant may not be able to participate in the Plan if the Participant fails to execute any such consent or agreement.
SINGAPORE
Qualifying Person Exemption.  The grant of the Restricted Stock Units under the Plan is being made pursuant to the “Qualifying Person” exemption under section 273(1)(f) of the Securities and Futures Act (Chapter 289, 2006 Ed.) (the “SFA”).  The Plan has not been and will not be lodged or registered as a prospectus with the Monetary Authority of Singapore and is not regulated by any financial supervisory authority pursuant to any legislation in Singapore.  Accordingly, statutory liability under the SFA in relation to the content of prospectuses would not apply.  The Participant should note that, as a result, the Restricted Stock Units are subject to section 257 of the SFA and the Participant will not be able to make: (a) any subsequent sale of the Shares underlying the Restricted Stock Units in Singapore; or (b) any offer of such subsequent sale of the Shares subject to the Restricted Stock Units in Singapore, unless such sale or offer is made pursuant to the exemptions under Part XIII Division 1 Subdivision (4) (other than section 280) of the SFA.
SOUTH AFRICA
Securities Law Notice.  Neither the Restricted Stock Units nor the underlying Shares shall be publicly offered or listed on any stock exchange in South Africa.  The offer is intended to be private pursuant to Section 96 of the Companies Act and is not subject to the supervision of any South African governmental authority.
Withholding Taxes.  The following provision supplements Section 6 (Withholding Taxes) of the Agreement:

20

By accepting the Restricted Stock Units, the Participant agrees to notify his or her Employer of the amount of any gain realized upon vesting of the Restricted Stock Units.  If the Participant fails to advise the Employer of the gain realized upon vesting of the Restricted Stock Units, the Participant may be liable for a fine.  The Participant will be responsible for paying any difference between the actual tax liability and the amount withheld.
Exchange Control Obligations.  The Participant is solely responsible for complying with applicable exchange control regulations and rulings (the “Exchange Control Regulations”) in South Africa.  As the Exchange Control Regulations change frequently and without notice, the Participant should consult the Participant’s legal advisor prior to the acquisition or sale of Shares under the Plan to ensure compliance with current Exchange Control Regulations.  Neither the Company nor any of its subsidiaries shall be liable for any fines or penalties resulting from the Participant’s failure to comply with applicable laws, rules or regulations.
SPAIN
Securities Law Notice. No “offer of securities to the public,” within the meaning of Spanish law, has taken place or will take place in the Spanish territory in connection with the Restricted Stock Unit. The Plan, the Agreement (including this Addendum) and any other documents evidencing the grant of the Restricted stock Units have not, nor will they be, registered with the Comisión Nacional del Mercado de 25 Valores (the Spanish securities regulator) and none of those documents constitute a public offering prospectus.
Acknowledgement of Discretionary Nature of the Plan; No Vested Rights.  By accepting the Restricted Stock Units, the Participant consents to participation in the Plan and acknowledges receipt of a copy of the Plan.
The Participant understands that the Company has unilaterally, gratuitously and in its sole discretion granted Restricted Stock Units under the Plan to individuals who may be Participants of the Company or its subsidiaries throughout the world.  The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Company or any of its subsidiaries on an ongoing basis.  Consequently, the Participant understands that the Restricted Stock Units are granted on the assumption and condition that the Restricted Stock Units and the Shares acquired upon settlement of the Restricted Stock Units shall not become a part of any employment contract (either with the Company or any of its subsidiaries) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever. In addition, the Participant understands that this grant would not be made to the Participant but for the assumptions and conditions referenced above; thus, the Participant acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason the Restricted Stock Units shall be null and void.
The Participant understands and agrees that, as a condition of the Restricted Stock Units, unless otherwise provided in Section 4 (Termination of Employment) of the Agreement, any unvested Restricted Stock Units as of the date the Participant ceases active employment will be forfeited without entitlement to the underlying Shares or to any amount of indemnification in the event of termination of employment or service.  The Participant acknowledges that the Participant has read and specifically accepts the conditions referred to in the Agreement regarding the impact of a termination on the Restricted Stock Units.
Termination for Cause.  Notwithstanding anything to the contrary in the Plan or the Agreement, “Cause” shall be as defined as set forth in the Agreement, regardless of whether the termination is considered a fair termination (i.e., “despido procedente”) under Spanish legislation.

21

SWITZERLAND
Securities Law Notification.  The grant of the Restricted Stock Units and the issuance of any Shares is not intended to be a public offering in Switzerland.  Neither this Addendum nor any other materials relating to the Restricted Stock Units constitute a prospectus as such term is understood pursuant to article 652a of the Swiss Code of Obligations. Neither this document nor any other offering or marketing materials relating to the Restricted Stock Units have been or will be filed with, or approved or supervised by, any Swiss regulatory authority (in particular, the Swiss Financial Market Supervisory Authority (FINMA)).
TURKEY
Securities Law Notification.  The sale of Shares acquired under the Plan is not permitted within Turkey.  The Shares are currently traded on the New York Stock Exchange (“NYSE”), which is located outside of Turkey, under the symbol “EL” and the Shares may be sold through the NYSE.
UNITED ARAB EMIRATES
Securities Law Notification.  The Agreement, the Plan and other incidental communication materials concerning the Restricted Stock Units are intended for distribution only to Participants of the Company or its subsidiaries.  The Dubai Technology and Media Free Zone Authority, Emirates Securities and Commodities Authority and/or the Central Bank has no responsibility for reviewing or verifying any documents in connection with the Restricted Stock Units.  Neither the Ministry of Economy nor the Dubai Department of Economic Development have approved these communications nor taken steps to verify the information set out in them, and have no responsibility for them.  Further, the Shares underlying the Restricted Stock Units may be illiquid and/or subject to restrictions on their resale.  Participant should conduct his or her own due diligence on the Restricted Stock Units and the Shares.  If Participant is in any doubt about any of the contents of the grant or other incidental documents, he or she should obtain independent professional advice.
UNITED KINGDOM
Withholding Taxes.  The following provision shall supplement Section 6 (Withholding Taxes) of the Agreement:
If payment or withholding of the income tax due in connection with the awarded Restricted Stock Units is not made within ninety (90) days after the end of the U.K. tax year in which the event giving rise to the income tax liability occurred or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected income tax shall constitute a loan owed by the Participant to his or her Employer, effective as of the Due Date.  The Participant agrees that the loan will bear interest at the then-current official rate of Her Majesty’s Revenue & Customs (“HMRC”), it shall be immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 6 (Withholding Taxes) of the Agreement.  Notwithstanding the foregoing, if the Participant is a director or executive officer of the Company (within the meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), he or she shall not be eligible for a loan from the Company to cover the income tax liability.  In the event that the Participant is a director or executive officer and the income tax is not collected from or paid by him or her by the Due Date, the amount of any uncollected income tax may constitute a benefit to the Participant on which additional income tax and national insurance contributions (“NICs”) will be payable.  The Participant will be responsible for paying and reporting any income tax due on this additional benefit directly to HMRC under the self-assessment regime, and for 

22

reimbursing the Company or the Employer (as applicable) the value of any Participant NICs due on this additional benefit.
Exclusion of Claim.  The Participant acknowledges and agrees that the Participant will have no entitlement to compensation or damages insofar as such entitlement arises or may arise from the Participant’s ceasing to have rights under or to be entitled to the Restricted Stock Units, whether or not as a result of termination of employment or service (whether the termination is in breach of contract or otherwise), or from the loss or diminution in value of the Restricted Stock Units.  Upon the grant of the Restricted Stock Units, the Participant shall be deemed to have waived irrevocably any such entitlement.
VENEZUELA
Securities Law Notification.  The Restricted Stock Units granted under the Plan and the Shares issued under the Plan are offered as a personal, private, exclusive transaction and are not subject to Venezuelan securities regulations.  This offering does not qualify as a public offering under the laws of the Bolivarian Republic of Venezuela and, therefore, it is not required to request the previous authorization of the National Superintendent of Securities.
Investment Representation. As a condition of the Restricted Stock Units, the Participant acknowledges and agrees that any Shares the Participant may acquire upon the vesting of the Restricted Stock Units are acquired as and intended to be an investment rather than the resale of the Shares and conversion of Shares into foreign currency.

23

NOTICE OF GRANT
UNDER
THE ESTÉE LAUDER COMPANIES INC. 
AMENDED AND RESTATED FISCAL 2002 SHARE INCENTIVE PLAN (The “Plan”)

This is to confirm that you were awarded a grant of Restricted Stock Units at the most recent meeting of the Stock Plan Subcommittee of the Compensation Committee of the Board of Directors representing the right upon vesting of such units to receive shares of Class A Common Stock of The Estée Lauder Companies Inc. (the “Shares”), subject to the terms of the Plan and the Restricted Stock Unit Agreement.  This award was made in recognition of the significant contributions you have made as a key employee of the Company, and to motivate you to achieve future successes by aligning your interests more closely with those of our stockholders.  This Restricted Stock Unit award is granted under and governed by the terms and conditions of the Plan and the Restricted Stock Unit Agreement (the “Agreement”) made part hereof.  The Agreement and Summary Plan Description can be viewed via your online account.  Please read these documents and keep them for future reference.  The specific terms of your award are as follows:

Participant:          Name

Employee Number:  #

Number of Restricted Stock Units:   #

Grant Date:   XXX

Vesting Commencement Date:   XXX

Grant Plan:  The Estée Lauder Companies Inc.  Amended and Restated Fiscal 2002 Share Incentive Plan

Vesting Schedule:  Subject to Participant’s continuous employment, this Restricted Stock Unit grant shall vest as to the number of Shares set forth below:

															
		Shares		Vesting Date	
		#		XXX	

          
Vesting Period:  The Vesting Commencement Date through and including the applicable date set forth in the Vesting Schedule

Questions regarding the award can be directed to XXX.

 If you wish to accept this grant, please sign this Notice of Grant and return immediately to:

        The Estée Lauder Companies Inc.
        Compensation Department
        767 Fifth Avenue
        New York, NY  10153
        

The undersigned hereby accepts, and agrees to, all terms and provisions of the Agreement, including those contained in this Notice of Grant.

By_____________________________________________________________________   Date_________________________________________

24Exhibit 4.4

 

 

 

 

 

NATWEST GROUP PLC

 

as Company

 

and

 

THE BANK OF NEW YORK MELLON,

acting through its London Branch

 

as Trustee

 

 

 

SEVENTH SUPPLEMENTAL INDENTURE

 

dated as of August 28,
2020

 

to the

 

SUBORDINATED DEBT SECURITIES INDENTURE

 

dated as of December 4, 2012

 

and the

 

FIRST SUPPLEMENTAL INDENTURE

 

dated as of December 4, 2012

 

and the

 

FOURTH SUPPLEMENTAL INDENTURE

 

dated as of May 28, 2014

 

and the

 

SIXTH SUPPLEMENTAL INDENTURE

 

dated as of August 19, 2020

 

$850,000,000
FIXED-TO-FIXED RESET RATE SUBORDINATED TIER 2 NOTES DUE 2035

 

     

     

    

This SEVENTH SUPPLEMENTAL INDENTURE dated as of August 28, 2020,
among NATWEST GROUP PLC, a corporation incorporated in Scotland with registered number SC045551, as issuer (the “Company”),
and THE BANK OF NEW YORK MELLON, acting through its London Branch, a banking corporation duly organized and existing under the
laws of the State of New York, as trustee (the “Trustee”) having its Corporate Trust Office at One Canada Square,
London E14 5AL.

 

WITNESSETH:

 

WHEREAS, the Company and the Trustee have
executed and delivered a Subordinated Debt Securities Indenture dated as of December 4, 2012, as amended and supplemented by the
First Supplemental Indenture dated as of December 4, 2012, the Fourth Supplemental Indenture dated as of May 28, 2014 and the Sixth
Supplemental Indenture dated as of August 19, 2020 (collectively, the “Base Indenture”) to provide for the issuance
of the Company’s Subordinated Debt Securities from time to time;

 

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

 

WHEREAS, the Company desires to issue, as
a further series of Subordinated Debt Securities under the Base Indenture, $850,000,000 Fixed-to-Fixed Reset Rate Subordinated
Tier 2 Notes due 2035 (the “Notes”) to be issued pursuant to this SEVENTH Supplemental Indenture dated as of
August 28, 2020 (the “Seventh Supplemental Indenture” and, together with the Base Indenture, the “Indenture”);

 

WHEREAS, where indicated, this Seventh Supplemental
Indenture shall amend and supplement the Base Indenture, but only with respect to the Notes; to the extent that the terms of the
Base Indenture are inconsistent with the provisions of this Seventh Supplemental Indenture, the terms of this Seventh Supplemental
Indenture shall govern;

 

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

 

WHEREAS, the entry into of this Seventh
Supplemental Indenture has been authorized pursuant to a Board Resolution as required by Section 9.01 of the Base Indenture;

 

    1 

     

    

WHEREAS, the Company has requested that
the Trustee execute and deliver this Seventh Supplemental Indenture, and whereas all actions required by it to be taken in order
to make this Seventh Supplemental Indenture a valid, binding and enforceable instrument in accordance with its terms, have been
taken and performed, and the execution and delivery of this Seventh Supplemental Indenture has been duly authorized in all respects;
and

 

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

 

Article
1

DEFINITIONS

 

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

 

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

 

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

 

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

 

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

 

(e)           
for purposes of this Seventh Supplemental Indenture and the Base Indenture, the term “series” shall mean
the series of securities designated as the Notes.

 

Article
2

THE NOTES

 

Section 2.01.     
Terms of the Notes. The following terms relating to the Notes are hereby established pursuant to Section 3.01 of
the Base Indenture:

 

(a)           
The title of the Notes shall be “Fixed-to-Fixed Reset Rate Subordinated Tier 2 Notes due 2035”;

 

(b)           
The aggregate principal amount of the Notes that may be authenticated and delivered under the Indenture shall not initially
exceed $850,000,000 (except as otherwise provided in the Indenture);

 

    2 

     

    

(c)           
Principal on the Notes shall be payable on November 28, 2035 (the “Maturity Date”), unless earlier redeemed
in accordance with the provisions set forth in Article 11 of the Indenture;

 

(d)           
The Notes shall be issued in global registered form on or about August 28, 2020;

 

(e)           
The Notes shall bear interest from (and including) August 28, 2020 to (but excluding) November 28, 2030 (the “Reset
Date”), at a rate of 3.032% per annum, and from (and including) the Reset Date to (but excluding) the Maturity Date (the
“Reset Period”), at a rate per annum equal to the applicable U.S. Treasury Rate (as defined below) as determined
by the Calculation Agent on the Reset Determination Date (as defined below), plus 2.35%. Interest on the Notes will be paid semi-annually
in arrear on May 28 and November 28 of each year (each, an “Interest Payment Date”), beginning on November 28,
2020, to (and including) the Maturity Date.

 

The “Reset Determination Date”
will be the second business day immediately preceding the Reset Date.

 

A “business day” means
any day, other than Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorised
or required by law or regulation to close in the City of New York or in the City of London.

 

Interest on the Notes will be calculated
on the basis of a 360-day year divided into twelve months of 30 days each and, in the case of an incomplete month, the actual number
of days elapsed in such period.

 

The “Regular Record Dates”
for the Notes will be the 15th calendar day preceding each Interest Payment Date, whether or not a business day.

 

If any scheduled Interest Payment Date
is not a business day, the Company will pay interest on the next day that is a business day, but interest on such payment will
not accrue during the period from and after such scheduled Interest Payment Date.

 

If the scheduled Maturity Date or date
of redemption or repurchase or repayment of the Notes is not a business day, the Company may pay interest and principal on the
next succeeding business day, but interest on that payment will not accrue during the period from and after the scheduled maturity
date or date of redemption, repurchase or repayment;

 

    3 

     

    

(f)            
The Calculation Agent for the Notes is National Westminster Bank plc or its successor appointed by the Company, pursuant
to a calculation agent agreement entered into on August 28, 2020;

 

(g)           
The U.S. Treasury Rate shall be determined by the Calculation Agent in accordance with the following provisions:

 

“U.S. Treasury Rate” means,
with respect to the Reset Date, the rate per annum equal to: (1) the average of the yields on actively traded U.S. Treasury securities
adjusted to constant maturity, for five-year maturities, for the five business days immediately prior to the Reset Determination
Date and appearing under the caption “Treasury constant maturities” at 5:00 p.m. (New York City time) on the Reset
Determination Date in the applicable most recently published statistical release designated “H.15 Daily Update”, or
any successor publication that is published by the Board of Governors of the Federal Reserve System that establishes yields on
actively traded U.S. Treasury securities adjusted to constant maturity, under the caption “Treasury Constant Maturities”,
for the maturity of five years; or (2) if such release (or any successor release) is not published during the week immediately
prior to the Reset Determination Date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield
to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for the Reset Date.

 

If the U.S. Treasury Rate cannot be determined,
for whatever reason, as described under (1) or (2) above, “U.S. Treasury Rate” means the rate in percentage per annum
as notified by the Calculation Agent to the Company equal to the yield on U.S. Treasury securities having a maturity of five years
as set forth in the most recently published statistical release designated “H.15 Daily Update” under the caption “Treasury
constant maturities” (or any successor publication that is published weekly by the Board of Governors of the Federal Reserve
System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury constant maturities” for the maturity of five years) at 5:00 p.m. (New York City time) on the Reset Determination
Date on which such rate was set forth in such release (or any successor release).

 

“Comparable Treasury Issue”
means, with respect to the Reset Period, the U.S. Treasury security or securities selected by the Company with a maturity date
on or about the last day of the Reset Period and that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities denominated in U.S. dollars and having a maturity of five
years.

 

    4 

     

    

“Comparable Treasury Price”
means, with respect to the Reset Date, (i) the arithmetic average of the Reference Treasury Dealer Quotations for the Reset Date
(calculated on the Reset Determination Date preceding the Reset Date), after excluding the highest and lowest such Reference Treasury
Dealer Quotations, or (ii) if fewer than five such Reference Treasury Dealer Quotations are received, the arithmetic average of
all such quotations, or (iii) if fewer than two such Reference Treasury Dealer Quotations are received, then such Reference Treasury
Dealer Quotation as quoted in writing to the Calculation Agent by a Reference Treasury Dealer.

 

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

 

“Reference Treasury Dealer Quotations”
means with respect to each Reference Treasury Dealer and the Reset Date, the arithmetic average, as determined by the Calculation
Agent, of the bid and offered prices for the applicable Comparable Treasury Issue, expressed in each case as a percentage of its
principal amount, at 11:00 a.m. (New York City time), on the Reset Determination Date.

 

All percentages resulting from any calculation
of any interest rate on the Notes will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point, with
five one-millionths of a percentage point rounded upward, and all dollar amounts would be rounded to the nearest cent, with one-half
cent being rounded upward;

 

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

 

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

 

(j)            
The Notes shall not be redeemable except as provided in Article 11 of the Indenture. The Notes shall not be redeemable at
the option of the Holders at any time. In connection with any redemption of Notes pursuant to Section 11.08 of the Indenture, the
date referenced therein shall be any day from (and including) August 28, 2030 to (and including) the Reset Date;

 

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

 

    5 

     

    

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

 

(m)          
The principal amount of, and any accrued interest on, the Notes shall be payable upon the declaration of acceleration thereof
pursuant to Section 5.02 of the Indenture;

 

(n)           
Additional Amounts shall only be payable on the Notes pursuant to Section 10.04 of the Indenture;

 

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

 

(p)           
The Notes shall be denominated in U.S. Dollars;

 

(q)           
The payment of principal of and interest, if any, on the Notes shall be payable in U.S. Dollars;

 

(r)            
The payment of principal of and interest, if any, on the Notes shall be payable only in the coin or currency in which the
Notes are denominated which, pursuant to (p) above, shall be U.S. Dollars;

 

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

 

(t)            
Except in limited circumstances, the Notes will not be issued in definitive form;

 

(u)           
The Events of Default on the Notes are as set forth in Section 5.01 of the Indenture and Defaults are set forth in Section
5.03 of the Indenture;

 

(v)           
The subordination terms of the Notes are as set forth in Article 12 of the Indenture; and

 

(w)            
The form of the Notes shall be evidenced by one or more global notes in registered form (each, a “Global Note”)
substantially in the form of Exhibit A attached to this Seventh Supplemental Indenture and made part thereof.

 

Article
3

SUPPLEMENTAL TERMS APPLICABLE TO THE NOTES ONLY

 

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

 

    6 

     

    

“Bail-in
Legislation” means Part I of the U.K. Banking Act 2009 and any other law, regulation, rule or requirement applicable
from time to time in the U.K. relating to the resolution of unsound or failing banks, investment firms or other financial institutions
or their affiliates (otherwise than through liquidation, administration or other insolvency proceedings).

 

“Bail-in
Powers” means any Write-down and Conversion Powers.

 

“Banking
Act” has the meaning set forth in the definition of U.K. bail-in power.

 

“Banking
Reform Act 2013” has the meaning set forth in the definition of U.K. bail-in power.

 

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

 

“BRRD”
means Directive 2014/59/EU (as amended) establishing a framework for the recovery and resolution of credit institutions and investment
firms, as the same may be amended or replaced from time to time.

 

“BRRD
Liability” has the same meaning as in such laws, regulations, rules or requirements implementing the BRRD under the applicable
Bail-in Legislation.

 

“business
day” means any day, other than Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorised or required by law or regulation to close in the City of New York or in the City of London.

 

“Calculation
Agent” shall mean National Westminster Bank Plc or its successor appointed by the Company, pursuant to a calculation
agent agreement entered into on August 28, 2020.

 

“Capital
Disqualification Event” shall be deemed to have occurred if at any time the Company determines that, as a result of

 

    7 

     

    

any amendment to,
or change in the regulatory classification of the Notes under, the Capital Regulations (or official interpretation thereof), in
any such case becoming effective on or after the Issue Date of the Notes, the whole or any part of the Notes are, or are likely
to be, excluded from Tier 2 Capital of the Company and/or the Regulatory Group.

 

“Capital
Regulations” means, at any time, the laws, regulations, requirements, guidelines and policies relating to capital adequacy
and/or minimum requirement for own funds and eligible liabilities and/or loss absorbing capacity binding on credit institutions
(including, without limitation, as to leverage) then in effect as applicable to the Company or the Regulatory Group including if
and to the extent applicable to the Company or the Regulatory Group and, without limitation to the generality of the foregoing,
any delegated or implementing acts (such as regulatory technical standards) adopted by the European Commission and any laws or
regulations, as well as requirements, guidelines and policies adopted by the PRA and/or any other national or European authority
from time to time (whether or not such laws, regulations, requirements, guidelines or policies are applied generally or specifically
to the Company or to the Regulatory Group), in each case relating to capital adequacy and/or minimum requirement for own funds
and eligible liabilities and/or loss absorbing capacity.

 

“Comparable Treasury
Issue” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

“Comparable
Treasury Price” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

“CRD”
means, taken together, (i) the CRD Directive and (ii) the CRD Regulation to the extent applicable to the Company or the Regulatory
Group.

 

“CRD Directive”
means Directive 2013/36/EU of the European Parliament and of the Council of June 26, 2013 on access to the activity of credit institutions
and the prudential supervision of credit institutions and investment firms, as amended or replaced from time to time (including
as amended by Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019) and/or any Capital Regulations
applicable in the UK.

 

“CRD Regulation”
means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of June 26, 2013 on

 

    8 

     

    

prudential requirements
for credit institutions and investment firms amending Regulation (EU) No. 648/2012, as amended or replaced from time to time (including
as amended by Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 to the extent then in application)
and/or any Capital Regulations applicable in the UK.

 

“FATCA”
means (i) sections 1471 to 1474 of the U.S. Internal Revenue Code of 1986, as amended, any U.S. Treasury regulations promulgated
thereunder, or any official guidance with respect thereto; (ii) any intergovernmental agreement between the United States and any
other jurisdiction which facilitates the implementation of clause (i), or any law, regulation or other official guidance enacted
or issued in any jurisdiction to implement such intergovernmental agreement; or (iii) any agreement entered into with the U.S.
Internal Revenue Service, the U.S. Treasury or any governmental or taxation authority in any other jurisdiction for the implementation
of clauses (i) or (ii).

 

“FATCA
Withholding” means any amount required to be deducted or withheld from any payment under the Subordinated Debt Securities
or this Subordinated Debt Securities Indenture pursuant to FATCA.

 

“Global
Note” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

“Interest
Payment Date” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

“Issue
Date” means August 28, 2020, being the date of the initial issue of the Notes.

 

“Junior
Creditors” means creditors of the Company who are holders of any additional Tier 1 capital (within the meaning of the
Capital Regulations) issued by the Company, and in each case any other obligations of the Company which rank or are expressed to
rank pari passu with any of such obligations.

 

“Maturity
Date” means November 28, 2035.

 

“Notes”
has the meaning set forth in the recitals to the Seventh Supplemental Indenture.

 

    9 

     

    

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

 

“Parity
Creditors” means creditors of the Company who are holders of any Tier 2 Capital issued by the Company, and in each case
any other obligations of the Company which rank or are expressed to rank pari passu with any of such obligations.

 

“PRA”
means the Prudential Regulation Authority or such other governmental authority in the United Kingdom (or, if the Company becomes
domiciled in a jurisdiction other than the United Kingdom, in such other jurisdiction) having primary supervisory authority with
respect to the Company’s business.

 

“Ranking
Legislation” means the Order and any other law or regulation applicable to the Company which is amended by the Order.

 

“Reference
Treasury Dealer” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

“Reference
Treasury Dealer Quotations” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

“Regulatory
Group” means the Company, the Company’s subsidiary undertakings, participations, participating interests and any
subsidiary undertakings, participations or participating interests held (directly or indirectly) by any of the Company’s
subsidiary undertakings from time to time and any other undertakings from time to time consolidated with the Company for regulatory
purposes, in each case in accordance with the rules and guidance of the PRA then in effect.

 

“Relevant
Resolution Authority” means the resolution authority with the ability to exercise any Bail-in Powers in relation to the
Company.

 

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

 

“Reset
Date” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

“Reset
Determination Date” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

    10 

     

    

“Reset
Period” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

“secondary
non-preferential debts” shall have the meaning given to it in the Ranking Legislation, as amended from time to time.
Currently, the Ranking Legislation states that “secondary non-preferential debts” means non-preferential debts issued
by a relevant financial institution under an instrument where (i) the original contractual maturity of the instrument is of at
least one year, (ii) the instrument is not a derivative and contains no embedded derivative, and (iii) the relevant contractual
documentation and where applicable the prospectus related to the issue of the debts explain the priority of the debts under the
Insolvency Act 1986.

 

“Senior
Creditors” means, in respect of the Company, the creditors of the Company whose claims are admitted to proof in the winding
up, administration or other insolvency procedure of the Company and (i) who are unsubordinated creditors of the Company or (ii)
who are subordinated creditors of the Company (whether in the event of a winding up or administration of the Company or otherwise)
other than (x) those whose claims by law rank, or by their terms are expressed to rank, pari passu with or junior to the
claims of the holders of the Notes, or (y) those who are Parity Creditors or Junior Creditors or (iii) who are creditors in respect
of any secondary non-preferential debts.

 

“Seventh
Supplemental Indenture” means this Seventh Supplemental Indenture under the Subordinated Debt Securities Indenture, dated
as of August 28, 2020, among the Company and the Trustee.

 

“Tier
2 Capital” means Tier 2 capital for the purposes of the Capital Regulations.

 

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

 

    11 

     

    

series. For purposes
of Section 6.07 herein, the term Trustee shall also include the Trustee acting in all other capacities.

 

“U.K.
bail-in power” means any write-down, conversion, transfer, modification or suspension power existing from time to time
under any laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions
and/or investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company or other
members of the Group, including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted
or enacted within the context of a European Union directive or regulation of the European Parliament and of the Council establishing
a framework for the recovery and resolution of credit institutions and investment firms (notwithstanding that the U.K. is no longer
a member of the European Union) and/or within the context of a U.K. resolution regime under the Banking Act 2009, as the same has
been or may be amended from time to time (whether pursuant to the U.K. Financial Services (Banking Reform) Act 2013 (the “Banking
Reform Act 2013”), secondary legislation or otherwise, the “Banking Act”), pursuant to which any obligations
of a bank, banking group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled, modified,
transferred and/or converted into shares or other securities or obligations of the obligor or any other person (or suspended for
a temporary period) or pursuant to which any right in a contract governing such obligations may be deemed to have been exercised.

 

“U.K.
Taxing Jurisdiction” has the meaning set forth in Section 10.04.

 

“U.S.
Treasury Rate” has the meaning set forth in Section 2.01 of the Seventh Supplemental Indenture.

 

“Write-down
and Conversion Powers” means the powers under the Bail-In Legislation to cancel, transfer or dilute shares issued by
a person that is a bank or investment firm or affiliate of a bank or investment firm, to cancel, reduce, modify or change the form
of a liability of such a person or any contract or instrument under which that liability arises, to convert all or part of that
liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument
is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability.

 

    12 

     

    

Section 3.02.     
Deletion of Definitions. With respect to the Notes only, the following definitions shall be deleted in their
entirety in Section 1.01 of the Base Indenture:

 

“ADR Custodian”
means the custodian under the ADR Deposit Agreement.

 

“ADR Deposit
Agreement” means the Deposit Agreement dated as of August 17, 1992, amended and restated as of February 8,
1999, as further amended and restated as of November 2, 2001, and as may be further amended from time to time between the
Company and The Bank of New York Mellon (previously named The Bank of New York) and the holders from time to time of American Depositary
Receipts issued thereunder.

 

“ADR Depositary”
means the depositary under the ADR Deposit Agreement.

 

“Clearstream
Luxembourg” means, Clearstream Banking, société anonyme, or its nominee or its or their successor.

 

“Deferred
Interest” has the meaning specified in Section 3.07.

 

“Deferred
Payment Date” has the
meaning specified in Section 3.07.

 

“Deferred
Record Date”, when used
for the interest payable on any Deferred Payment Date on Subordinated Debt Securities of any series, means the date specified for
the purpose pursuant to Section 3.01.

 

“Dollar
Preference Shares” means a designated series of non-cumulative dollar preference shares, nominal value of $.01 each,
of the Company for which, if applicable to a particular series of Subordinated Debt
Securities, the Company may exchange or convert any series of Subordinated Debt Securities.

 

“Exchange
Date”, when used with respect to any applicable series of Subordinated Debt Securities, has the meaning specified in
Section 13.03.

 

“Exchange
Securities” has the meaning specified in Section 3.01(l).

 

    13 

     

    

“Foreign
Currency” means the euro or any currency issued by the government of any country (or a group of countries or participating
member states) other than the United States which as at the time of payment is legal tender for the payment of public and private
debts

 

“Foreign
Government Securities” means with respect to Subordinated Debt Securities of any series that are denominated in a Foreign
Currency, non-callable (i) direct obligations of the participating member state or government that issued such Foreign Currency
for the payment of which obligations its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised
by and acting as an agency or instrumentality of such participating member state or government, the payment of which obligations
is unconditionally guaranteed as a full faith and credit obligation of such participating member state or government. For the avoidance
of doubt, for all purposes hereof, euro shall be deemed to have been issued by each participating member state from time to time.

 

“Taxing
Jurisdiction” has the meaning specified in Section 10.04.

 

Section 3.03.     
Notices, Etc. to Trustee and Company. With respect to the Notes only, Section 1.05 of the Base Indenture is amended
and restated in its entirety and shall read as follows:

 

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

 

(a)       the
Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided)
if made, given, furnished or filed in writing (which may be via facsimile or email delivery of a copy of such document) to the
Trustee at its Corporate Trust Office with a copy to The Bank of New York Mellon, Merck House, Seldown, Poole, Dorset BH15 1PX,
United Kingdom (Facsimile : +44 207 964 2536; email : corpsov4@bnymellon.com), and the Trustee agrees to accept and act upon facsimile
or email transmission of written instructions pursuant to this Subordinated Debt Securities Indenture; provided, however,
that (x) the party providing such written instructions, subsequent to such transmission of written instructions, shall provide
the originally executed instructions or directions to the Trustee in a timely manner, and (y) such originally executed instructions
or

 

    14 

     

    

directions
shall be signed by an authorized representative of the party providing such instructions or directions; or

 

(b)       the
Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided)
if in writing and mailed, first-class air mail postage prepaid, to the Company, to RBS Gogarburn, P.O. Box 1000, Edinburgh EH12
1HQ (Attention: Group Secretariat) or at any other address previously furnished in writing to the Trustee by the Company.

 

If the Company
elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in
its discretion elects to act upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling.
The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance
upon and compliance with such instructions notwithstanding a conflict or inconsistency between such instructions and a subsequent
written instruction. The Company agrees to assume all risks arising out of the use of such electronic methods to submit instructions
and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the
risk or interception and misuse by third parties.

 

Section 3.04.     
Notice to Holders; Waiver. With respect to the Notes only, Section 1.06 of the Base Indenture is amended in part
to delete the last paragraph therein and to amend and restate the second paragraph therein, which shall read as follows:

 

For so long
as the Subordinated Debt Securities of any series are represented by Global Securities, the Company will deliver a copy of all
notices with respect to such series to the Holder through the Depositary, in accordance with its applicable procedures from time
to time. Otherwise, notices to the Holders will be provided to the addresses that appear on the Subordinated Debt Security Register.

 

Section 3.05.     
Appointment of Agent for Service. With respect to the Notes only, Section 1.14 of the Base Indenture is amended and
restated in its entirety and shall read as follows:

 

Section 1.14. Appointment
of Agent for Service. The Company has designated and appointed CT Corporation System, 28 Liberty Street New York, NY 10005,
United States, as its authorized agent upon which process may be served in any suit or proceeding in any Federal or State court
in the Borough of Manhattan, The City of New York arising out of or relating to the Subordinated Debt Securities or this Subordinated
Debt Securities Indenture, but for that

 

    15 

     

    

purpose
only, and agrees that service of process upon said CT Corporation System shall be deemed in every respect effective service of
process upon it in any such suit or proceeding in any Federal or State court in the Borough of Manhattan, The City of New York,
New York. Such appointment shall be irrevocable so long as any of the Notes remain Outstanding until the appointment of a successor
by the Company and such successor’s acceptance of such appointment. Upon such acceptance, the Company shall notify the Trustee
of the name and address of such successor. The Company further agrees to take any and all action, including the execution and
filing of any and all such documents and instruments, as may be necessary to continue such designation and appointment of said
CT Corporation System in full force and effect so long as any of the Notes shall be Outstanding. The Trustee shall not be obligated
and shall have no responsibility with respect to any failure by the Company to take any such action. The Company hereby submits
(for the purposes of any such suit or proceeding) to the jurisdiction of any such court in which any such suit or proceeding is
so instituted, and waives, to the extent it may effectively do so, any objection it may have now or hereafter to the laying of
the venue of any such suit or proceeding.

 

Section 3.06.     
Execution, Authentication, Delivery and Dating. With respect to the Notes only, the first paragraph of Section 3.03
of the Base Indenture is amended and restated in its entirety and shall read as follows:

 

In authenticating such
Subordinated Debt Securities and accepting the additional responsibilities under this Subordinated Debt Securities Indenture in
relation to such Subordinated Debt Securities, the Trustee shall be entitled to receive (in the case of subparagraph 3.03(b) below
only at or before the time of the first request of the Company to the Trustee to authenticate the first Subordinated Debt Security
of the series), and (subject to ‎Section 6.01) shall be fully protected in relying upon:

 

(a)       the
Company Order (x) requesting such authentication and setting forth delivery instructions, and (y) attaching the form of Subordinated
Debt Securities setting forth the terms thereof established pursuant to ‎Section 3.01 of this Subordinated Debt Securities
Indenture and stating the recitals contained in ‎Section 1.02 of this Subordinated Debt Securities Indenture, including that
all conditions precedent for the authentication of such Subordinated Debt Securities have been complied with; and

 

(b)       an
Opinion of Counsel stating that (x) the form and terms thereof have been established in conformity with the provisions of this
Subordinated Debt Securities Indenture and (y) that such Subordinated Debt Securities, when authenticated and delivered by the
Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will

 

    16 

     

    

constitute valid
and binding obligations of the Company enforceable in accordance with their terms, except as the enforceability thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting creditor’s rights and
by general principles of equity.

 

Section 3.07.     
Deletion of Deferred Payment Provisions. With respect to the Notes only, the following Sections of the Base Indenture
are amended and restated in their entirety and shall read as follows:

 

Section 3.01 Amount
Unlimited, Issuable in Series.

 

...

 

(d)       the
rate or rates, if any, at which the Subordinated Debt Securities of the series shall accrue interest or the manner of calculation
of such rate or rates, if any, the date or dates from which such interest shall accrue, the Interest Payment Dates on which such
interest shall be payable or the manner of determination of such Interest Payment Dates, if other than as specified in Section
3.07, and, in the case of registered Subordinated Debt Securities, the Regular Record Date for the interest payable on any Interest
Payment Date, and any dates required to be established pursuant to Section 7.01;

 

...

 

Section 3.07. Payment;
Interest Rights Preserved. Except as otherwise provided as contemplated by Section 3.01 with respect to any series of Subordinated
Debt Securities, interest, if any, on any Subordinated Debt Securities which is payable, and is paid or duly provided for, on any
Interest Payment Date shall be paid, in the case of registered Subordinated Debt Securities, to the Person in whose name that Subordinated
Debt Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest or, in the case of Global Securities held by any Holder, to the Holder including through a Paying Agent of the Company
designated pursuant to Section 3.01 outside the United Kingdom for collection by the Holder.

 

In the case of
registered Subordinated Debt Securities where payment is to be made in Dollars, payment at any Paying Agent’s office outside
The City of New York will be made in Dollars by check drawn on, or, at the request of the Holder, by

 

    17 

     

    

transfer to a Dollar
account maintained by the payee with, a bank in The City of New York.

 

...

 

Section 11.06.
Subordinated Debt Securities Payable on Redemption Date. Notice of redemption having been given as aforesaid, the Subordinated
Debt Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified,
and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest, if
any) such Subordinated Debt Securities shall cease to accrue interest. Upon surrender of any such Subordinated Debt Security for
redemption in accordance with said notice, such Subordinated Debt Security shall be paid by the Company at the Redemption Price,
together with accrued but unpaid interest to (but excluding) the Redemption Date; provided, however, that with respect
to any Subordinated Debt Securities in registered form, unless otherwise specified as contemplated by Section 3.01, a payment of
interest which is payable on an Interest Payment Date which is the Redemption Date, shall be payable to the Holders of such Subordinated
Debt Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Regular Record
Date according to the terms of the Subordinated Debt Securities and the provisions of Section 3.07. Subordinated Debt Securities
in definitive form shall be presented for redemption to the Paying Agent.

 

If any Subordinated
Debt Security called for redemption shall not be so paid upon surrender thereof for redemption, the Subordinated Debt Security
shall, until paid, continue to accrue interest from and after the Redemption Date in accordance with its terms and the provisions
of Section 3.07.

 

Section 3.08.     
Deletion of Exchange Provisions. With respect to the Notes only, (i) Section 1.13 of the Base Indenture is amended
by deleting the reference to “Exchange Date” therein, (ii) Section 3.01(l) of the Base Indenture is amended and restated
in its entirety and shall read as follows:

 

(l) [Reserved];

 

and (iii)
Section 3.05 of the Base Indenture is amended by deleting the following paragraph:

 

    18 

     

    

In the event that
a Global Security is surrendered for redemption or exchange for Dollar Preference Shares or Exchange Securities in part pursuant
to Section 11.07 or Section 13.05, the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such
Global Security, without service charge, a new Global Security in a denomination equal to and in exchange for the unredeemed or
unexchanged portion of the principal of the Global Security so surrendered.

 

Section 3.09.     
Correction of Minor Defects in or Amendment of Subordinated Debt
Securities. With respect to the Notes only, Article 3 of the Base Indenture is
amended by adding Section 3.13, which shall read as follows:

 

Section
3.13.Correction of Minor Defects in or Amendment of Subordinated Debt
Securities. If, after issuance of any Subordinated
Debt Security (including any Global Security), the Company or the Trustee shall become aware of any ambiguity, defect or inconsistency
in any term thereof, the Company and the Trustee agree to amend such Subordinated Debt Security (including any Global Security)
as contemplated by ‎Section 9.01(h) and the parties hereto shall provide for the execution, authentication, delivery and dating
of one or more replacement Subordinated Debt Securities or Global Securities, as the case may be, pursuant to ‎Section 3.03
hereto, provided, however, that such amendment is not materially adverse to Holders of any Outstanding Subordinated
Debt Securities. 

 

Section 3.10.     
Satisfaction and Discharge of Subordinated Debt Securities Indenture. With respect to the Notes only, Article 4 of
the Base Indenture is amended by amending and restating Section 4.01 in its entirety, which shall read as follows:

 

Section 4.01.Satisfaction
and Discharge of Subordinated Debt Securities Indenture. This Subordinated Debt Securities Indenture shall upon Company Request
(subject to Section 4.04) cease to be of further effect with respect to Subordinated Debt Securities of any series (except as to
any surviving rights of registration of transfer or exchange of Subordinated Debt Securities of such series herein expressly provided
for), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge
of this Subordinated Debt Securities Indenture with respect to the Subordinated Debt Securities of such series when:

 

(a)       all
Subordinated Debt Securities of such series theretofore authenticated and delivered (other than (i) Subordinated Debt

 

    19 

     

    

Securities which have been destroyed,
lost or stolen and which have been replaced or paid as provided in Section 3.06 and (ii) Subordinated Debt Securities for whose
payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust, as provided in Section 10.03) have been delivered to the Trustee for cancellation; or

 

(b)       the
Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to the Subordinated Debt Securities
of such series; and

 

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

 

Notwithstanding any satisfaction
and discharge of this Subordinated Debt Securities Indenture, the obligations of the Company to the Trustee under Section 6.07,
the obligations of the Trustee to any Authenticating Agent under Section 6.14 and the last paragraph of Section 10.03 shall survive
such satisfaction and discharge, including any termination under any bankruptcy law.

 

Section 3.11.     
Application of Trust Money. With respect to the Notes only, Article 4 of the
Base Indenture is amended by amending and restating Section 4.02 in its entirety, which shall read as follows:

 

Section
4.02.[Reserved].

 

Section 3.12.     
Repayment to Company. With respect to the Notes only, Article 4 of the Base
Indenture is amended by amending and restating Section 4.03 in its entirety, which shall read as follows:

 

Section 4.03. Repayment to
Company. The Trustee, the Calculation Agent and any Paying Agent promptly shall pay to the Company upon Company Request any
excess money and/or U.S. Government Obligations held by them at any time with respect to any series of Subordinated Debt Securities.

 

Section 3.13.     
PRA. With respect to the Notes only, Article 4 of the Base Indenture is amended
by adding Section 4.04, which shall read as follows:

 

    20 

     

    

Section 4.04.PRA.
The Company may only make a Company Request as provided under Article 4 of this Subordinated Debt Securities Indenture provided
that (a) such right shall only apply to the extent not prohibited by CRD and (b) the Company (except to the extent that the Capital
Regulations do not so require) has notified the PRA of its intention to do so before the Company makes such Company Request, the
PRA has granted permission and the Company has complied with any other requirement of the Capital Regulations and/or PRA applicable
at the time.

 

Section 3.14.         
Events of Default. With respect to the Notes only, Section 5.01 of the Base Indenture is amended and restated in
its entirety and shall read as follows:

 

Section
5.01.Events of Default. “Event of Default”, wherever used herein with respect to the Subordinated
Debt Securities, means the making of an order by a court of competent jurisdiction which is not successfully appealed within 30
days of the making of such order, or valid adoption by the shareholders of the Company of an effective resolution, for the winding-up
of the Company (in each case, other than under or in connection with a scheme of amalgamation or reconstruction not involving a
bankruptcy or insolvency). The exercise of any U.K. bail-in power by the relevant U.K. authority shall not constitute a default
or an Event of Default under this Section 5.01 or a Default under Section 5.03.

 

Section 3.15.         
Acceleration of Maturity; Rescission and Annulment. With respect to the Notes only, Section 5.02 of the Base Indenture
is amended by adding the following paragraph at the end of the section:

 

If the Subordinated
Debt Securities become due and payable and the Company fails to pay such amounts (or any damages awarded for breach of any obligations
in respect of the Subordinated Debt Securities or this Subordinated Debt Securities Indenture) forthwith upon demand, notwithstanding
the continuing right of any Holder to receive payment of the principal of and interest on the Subordinated Debt Securities, or
to institute suit for the enforcement of any such payment, each as provided for under Section 316(b) (Directions and Waivers
by Bondholders; Prohibition of Impairment of Holders’ Right to Repayment) of the Trust Indenture Act, the Trustee, in
its own name and as trustee of an express trust, may institute proceedings for the winding up of the Company, and/or prove in a
winding up of the Company for all such due and payable amounts (including any damages awarded for breach of any obligations in
respect of the Subordinated Debt Securities or this Subordinated Debt Securities Indenture) but no other remedy shall be available
to the Trustee or the Holders.

 

    21 

     

    

Section 3.16.      
Defaults; Collection of Indebtedness and Suits for Enforcement by Trustee. With respect to the Notes only, Section
5.03 of the Base Indenture is amended and restated in its entirety and shall read as follows:

 

Section 5.03.Defaults;
Collection of Indebtedness and Suits for Enforcement by Trustee. “Default” wherever used herein with respect
to the Subordinated Debt Securities of a particular series, means any one of the following events (subject as provided below, whatever
the reason for such Default and whether it shall be voluntary or involuntary or be effected by operation of law pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

		(a)	the Company fails to pay any installment of interest in respect of the Subordinated Debt Securities of such series on or before
the relevant Interest Payment Date and such failure continues for 14 days; or

 

		(b)	the Company fails to pay all or any part of the principal amount of the Subordinated Debt Securities of such series when it
otherwise becomes due and payable, whether upon redemption or otherwise, and such failure continues for 7 days.

 

If a Default occurs and is continuing,
the Trustee may commence a proceeding for the winding up of the Company, provided that the Trustee may not declare the principal
amount of any Outstanding Subordinated Debt Securities of any series to be due and payable.

 

Subject to applicable law, the
Trustee (acting on behalf of the Holders) and the Holders of the Subordinated Debt Securities by their acceptance thereof will
be deemed to have waived to the fullest extent permitted by law any right of set-off, counterclaim or combination of accounts with
respect to the Subordinated Debt Securities, the Seventh Supplemental Indenture or this Subordinated Debt Securities Indenture
(or between the Company’s obligations under or in respect of any Subordinated Debt Security and any liability owed by a Holder
to the Company) that they (or the Trustee acting on their behalf) might otherwise have against the Company, whether before or during
any winding-up, liquidation or administration of the Company. Notwithstanding the above, if any of such rights and claims of any
such Holder (or the Trustee acting on behalf of such Holders) against the Company are discharged by set-off, such Holder (or the
Trustee acting on behalf of such Holders) will immediately pay an amount equal to the amount of such discharge to the Company or,
in the event of any winding-up, liquidation or administration of the Company, the liquidator or administrator (or other relevant

 

    22 

     

    

insolvency official), as the case
may be, to be held on trust for the Senior Creditors and until such time as payment is made will hold a sum equal to such amount
on trust for the Senior Creditors and accordingly such discharge shall be deemed not to have taken place.

 

Notwithstanding the foregoing
and any other provisions, a failure to make any payment on the Subordinated Debt Securities of any series shall not be a Default
if it is withheld or refused, upon independent counsel’s advice addressed and delivered to the Trustee, (i) in order to comply
with any applicable fiscal or other law or regulation or order of any court of competent jurisdiction or (ii) as a result of the
exercise of any U.K. bail-in power by the relevant U.K. authority, provided, however, that the Trustee may require the Company
to take any action which, upon independent counsel’s advice delivered to the Trustee, is appropriate and reasonable in the
circumstances (including proceedings for a court declaration), in which case the Company shall immediately take and expeditiously
proceed with the action and shall be bound by any final resolution resulting therefrom. If any such action results in a determination
that the relevant payment can be made without violating any applicable law, regulation or order then the payment shall become due
and payable on the expiration of the applicable 14-day or seven-day period after the Trustee gives written notice to the Company
informing it of such determination.

 

Upon the occurrence of any Event
of Default or Default, the Company shall give prompt written notice to the Trustee. Except as otherwise provided in this Article
5, the Trustee may proceed to protect and enforce its rights and the rights of the Holders of the Subordinated Debt Securities
whether in connection with any breach by the Company of its obligations under the Subordinated Debt Securities, this Subordinated
Debt Securities Indenture or otherwise, including by judicial proceedings, provided that the Company shall not, as a result of
any such action by the Trustee, be required to pay any amount representing or measured by reference to principal or interest on
the Subordinated Debt Securities of any series prior to any date on which the principal of, or any interest on, the Subordinated
Debt Securities of any such series would have otherwise been payable.

 

No recourse for the payment of
the principal of (or premium, if any) or interest, if any, on any Subordinated Debt Security, or for any claim based thereon and
no recourse under or upon any obligation, covenant or agreement of the Company in this Subordinated Debt Securities Indenture,
or in any Subordinated Debt Security, or because of the creation of any indebtedness represented thereby, shall be had against
any incorporator, stockholder, officer or director, past, present or future, of the Company or

 

    23 

     

    

of any successor corporation of
the Company, either directly or through the Company or any successor corporation whether by virtue of any constitution, statute
or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that to the extent
lawful all such liability is hereby expressly waived and released as a condition of, and as a consideration for, the execution
of this Subordinated Debt Securities Indenture and the issue of the Subordinated Debt Securities.

 

No remedy against the Company,
other than as referred to in this Article 5 of this Subordinated Debt Securities Indenture, shall be available to the Trustee or
the Holders of the Subordinated Debt Securities whether for the recovery of amounts owing in respect of such Subordinated Debt
Securities or under this Subordinated Debt Securities Indenture or in respect of any breach by the Company of its obligations under
this Subordinated Debt Securities Indenture or in respect of the Subordinated Debt Securities, except that the Trustee and the
Holders shall have such rights and powers as they are entitled to have under the Trust Indenture Act, including the Trustee’s
prior lien on any amounts collected following a Default or Event of Default for payment of the Trustee’s fees and expenses,
and provided that any payments on the Subordinated Debt Securities are subject to the subordination provisions set forth in this
Subordinated Debt Securities Indenture.

 

Notwithstanding
any contrary provisions, nothing shall impair the right of a Holder, absent the Holder’s consent, to sue for any payments
due but unpaid with respect to the Subordinated Debt Securities.

 

Section 3.17.     
Unconditional Right of Holders to Receive Principal, Premium and Interest, if any. With respect to the Notes only,
Section 5.08 of the Base Indenture is amended and restated in its entirety, which shall read as follows:

 

Section 5.08. Unconditional
Right of Holders to Receive Principal, Premium and Interest, if any. Subject to Article 12 in relation to subordination of
Subordinated Debt Securities, and notwithstanding any other provision in this Subordinated Debt Securities Indenture, the Holder
of any Subordinated Debt Security shall have the right, which is absolute and unconditional, to receive payment of the principal
of (and premium, if any) and (subject to Section 3.07) interest, if any, on such Subordinated Debt Security on the respective Stated
Maturities as expressed in such Subordinated Debt Security (or, in the case of redemption, on the Redemption Date) and, subject
to Section 5.07, to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent
of such Holder or holder.

 

    24 

     

    

Section 3.18.     
Control by Holders. With respect to the Notes only, Section 5.12 of the Base Indenture is amended in part to amend
and restate paragraph (c) in its entirety and add a paragraph (d), which shall read as follows:

 

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

 

(d)       no
provision herein shall be deemed to require the Trustee to take any action or forebear from any action directed by Holders unless
the Trustee has received security and/or indemnity satisfactory to it in its sole discretion and if the Trustee does act in accordance
with a Holders’ direction given under this ‎Section 5.12 it shall not be liable for such action.

 

Section 3.19.     
Waiver of Past Defaults. With respect to the Notes only, the first paragraph of Section 5.13 of the Base Indenture
is amended and restated in its entirety, which shall read as follows:

 

The Trustee
may without prejudice to its rights in respect of any subsequent Event of Default or Default from time to time and at any time
waive any Event of Default or Default or authorize any proposed Event of Default or Default by the Company, provided that in its
opinion the interests of the Holders shall not be materially prejudiced thereby and, provided further, that the Trustee shall not
exercise any powers conferred on it by this clause in contravention of any notice in writing to the Company and the Trustee made
pursuant to Section 5.02 hereof but so that no such notice shall affect any waiver or authorization previously given or made. The
Holders of not less than a majority in aggregate principal amount of the Outstanding Subordinated Debt Securities of any series
may on behalf of the Holders of all the Subordinated Debt Securities of such series waive any past Event of Default or Default
hereunder with respect to such series and its consequences, except an Event of Default or Default:

 

Section 3.20.     
Undertaking for Costs. With respect to the Notes only, Section 5.14 of the Base Indenture is amended and restated
in its entirety, which shall read as follows:

 

Section 5.14. Undertaking
for Costs. All parties to this Subordinated Debt Securities Indenture agree, and each Holder of any Subordinated Debt Security
by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement
of any right or remedy under this Subordinated Debt Securities Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant to such suit of an undertaking to pay the costs of such
suit, and that such court may in its discretion

 

    25 

     

    

assess reasonable
costs, including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply
to any suit instituted by the Trustee, to any suit instituted by any Holder or group of Holders holding in the aggregate more than
10% in principal amount of the Outstanding Subordinated Debt Securities of any series, or to any suit instituted by any Holder
for the enforcement of the payment of the principal of (or premium, if any) or interest, if any, on any Subordinated Debt Security
on or after the respective Stated Maturities expressed in such Subordinated Debt Security (or, in the case of redemption, on or
after the Redemption Date).

 

Section 3.21.     
Compensation and Reimbursement. With respect to the Notes only, Section 6.07 of the Base Indenture is amended in
part to add the following paragraphs after the last paragraph of Section 6.07:

 

The Trustee’s
right to reimbursement and indemnity under this ‎Section 6.07 shall survive the payment in full of the Subordinated Debt Securities,
the discharge of this Subordinated Debt Securities Indenture, the resignation or removal of the Trustee and any termination of
the Subordinated Debt Securities Indenture, including any termination under any bankruptcy law and (without prejudice to ‎Section
4.02 of the Seventh Supplemental Indenture if, and to the extent applicable, as set out therein) any exercise of the U.K. bail-in
power by the relevant U.K. authority with respect to the obligations owed or owing to Holders pursuant to or in connection with
the Subordinated Debt Securities.

 

To the extent
the Company’s obligations to reimburse and indemnify the Trustee pursuant to this ‎Section 6.07 are excluded liabilities
under the Banking Act or otherwise excluded from any exercise of the U.K. bail-in power by the relevant U.K. authority by legislation,
rule, regulation or regulatory technical standard, such liabilities shall survive the application of such U.K. bail-in power.

 

Section 3.22.     
Reports by the Company. With respect to the Notes only, Section 7.04 of the Base Indenture is amended in part to
add the following sentence at the end of sub-section (a):

 

The Company
will be deemed to have delivered such reports or information referred to in this Section to the Trustee if the Company has filed
such reports or information with the Commission via the EDGAR filing system (or any successor thereto) and such reports or information
are publicly available;

 

    26 

     

    

Section 3.23.     
Reports by the Company. With respect to the Notes only, Section 7.04 of the Base Indenture is amended in part to
add the following paragraph at the end of Section 7.04:

 

Delivery of
such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such
shall not constitute actual or constructive knowledge or notice of any information contained therein.

 

Section 3.24.     
Assumption of Obligations. With respect to the Notes only, Section 8.03 of the Base Indenture is amended in part
by amending and restating sub-sections 8.03(a) and 8.03(b), which shall read as follows:

 

(a)       the
successor entity shall expressly assume such obligations by an amendment to the Subordinated Debt Securities Indenture, executed
by the Company and such successor entity, if applicable, and delivered to the Trustee, in form satisfactory to the Trustee, and
the Company shall, by amendment to the Subordinated Debt Securities Indenture, unconditionally guarantee (such guarantee shall
be given on a subordinated basis consistent with Article 12 hereof) all of the obligations of such successor entity under the Subordinated
Debt Securities of such series and the Subordinated Debt Securities Indenture as so modified by such amendment (provided, however,
that, for the purposes of the Company’s obligation to pay Additional Amounts, if any, payable pursuant to Section 10.04 in
respect of the Subordinated Debt Securities, references to such successor entity’s country of organization and tax residence
will be added to references to the United Kingdom in the definition of U.K. Taxing Jurisdiction);

 

(b)       such
successor entity shall confirm in writing in such amendment to the Subordinated Debt Securities Indenture that such successor entity
will pay all Additional Amounts, if any, payable pursuant to Section 10.04 in respect of all the Subordinated Debt Securities (provided,
however, that for these purposes such successor entity’s country of organization and tax residence will be substituted for
the references to the United Kingdom in the definition of U.K. Taxing Jurisdiction);

 

Section 3.25.     
Notification of Assumption or Substitution to the PRA. With respect to the Notes only, Article 8 of the Base Indenture
is amended by adding Section 8.04, which shall read as follows:

 

Section
8.04.Notification of Assumption or Substitution to the PRA. No such assumption or substitution as is referred to in
Sections 8.01, 8.02 and 8.03 shall be effected in relation to any series of Subordinated Debt Securities, unless (except to the
extent

 

    27 

     

    

that
the Capital Regulations do not so require) the Company has notified the PRA of its intention to do so before the date scheduled
therefor and the PRA has granted consent thereto.

 

Section 3.26.     
Notification of Modification or Supplemental Indenture. With respect to the Notes only, Article 9 of the Base Indenture
is amended by adding Section 9.07, which shall read as follows:

 

Section
9.07.Notification of Modification or Supplemental Indenture. No such modification shall be effected in relation to any
series of Subordinated Debt Securities or the Seventh Supplemental Indenture pursuant to this Article 9 or Section 3.13 herein,
unless (except to the extent that the Capital Regulations do not so require) the Company has notified the PRA of its intention
to do so before the proposed modification and the PRA has granted permission thereto.

 

Section 3.27.     
Additional Amounts. With respect to the Notes only, Section 10.04 of the Base Indenture is amended and restated in
its entirety, which shall read as follows:

 

Section 10.04.Additional
Amounts. All amounts of principal, premium, if any, and interest, if any, on any series of Subordinated Debt Securities will
be paid by the Company without deduction or withholding for, or on account of, any and all present and future income, stamp and
other taxes, levies, imposts, duties, charges, fees, deductions or withholdings now or hereafter imposed, levied, collected, withheld
or assessed by or on behalf of the United Kingdom or any political subdivision or any authority thereof or therein having the power
to tax (the “U.K. Taxing Jurisdiction”), unless such deduction or withholding is required by law.

 

Unless otherwise specified in
any Board Resolution, or an Officer’s Certificate, establishing the terms of Subordinated Debt Securities of a series in
accordance with ‎Section 3.01, if deduction or withholding of any such taxes, levies, imposts, duties, charges, fees, deductions
or withholdings shall at any time be required by the U.K. Taxing Jurisdiction, the Company will pay such additional amounts with
respect to interest and any redemption premium, on any series of Subordinated Debt Securities (“Additional Amounts”)
as may be necessary in order that the net amounts paid to the Holders of Subordinated Debt Securities of the particular series,
after such deduction or withholding, shall equal the amounts of such payments which would have been payable in respect of such
Subordinated Debt Securities had no such deduction or withholding been required; provided, however, that the

 

    28 

     

    

foregoing will not apply to any
such tax, levy, impost, duty, charge, fee, deduction or withholding that would not have been payable or due but for the fact that:

 

(i)       the
Holder or the beneficial owner of the Subordinated Debt Security is a domiciliary, national or resident of, or engaging in business
or maintaining a permanent establishment or physically present in, the U.K. Taxing Jurisdiction or otherwise has some connection
with the U.K. Taxing Jurisdiction other than the mere holding or ownership of a Subordinated Debt Security, or the collection of
the payment on any Subordinated Debt Security of the relevant series,

 

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

 

(iii)       the
relevant Subordinated Debt Security is presented (where presentation is required) for payment more than 30 days after the date
payment became due or was provided for, whichever is later, except to the extent that the Holder would have been entitled to such
Additional Amount on presenting (where presentation is required) the Subordinated Debt Security for payment at the close of such
30 day period,

 

(iv)       the
Holder or the beneficial owner of the relevant Subordinated Debt Security or the payment on such Subordinated Debt Security failed
to comply with a request by the Company or its liquidator or other authorized person addressed to the Holder (x) to provide information
concerning the nationality, residence or identity of the Holder or such beneficial owner or (y) to make any declaration or other
similar claim to satisfy any requirement, which in the case of (x) or (y), is required or imposed by a statute, treaty, regulation
or administrative practice of the U.K. Taxing Jurisdiction as a precondition to exemption or relief from all or part of such deduction
or withholding,

 

(v)       the
withholding or deduction is required to be made pursuant to European Council Directive 2003/48/EC on the taxation of savings income
or any Directive amending, supplementing or replacing such Directive, or any law implementing or complying with, or introduced
in order to conform to, such Directive or Directives,

 

(vi)       the
withholding or deduction is required to be made pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986,
as amended, any agreement with the U.S. Treasury entered into with respect thereto, any U.S. Treasury regulation issued thereunder
or any other official interpretations or guidance issued with respect thereto;

 

    29 

     

    

any intergovernmental agreement
entered into with respect thereto, or any law, regulation, or other official interpretation or guidance promulgated pursuant to
such an intergovernmental agreement,

 

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

 

(viii)       any
combination of subclauses ‎(i) through ‎(vii) above,

 

nor shall Additional Amounts
be paid with respect to a payment on the Subordinated Debt Securities to any Holder who is a fiduciary or partnership or person
other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the U.K. Taxing
Jurisdiction to be included in the income for tax purposes of a beneficiary or settlor with respect to such fiduciary or a member
of such partnership or a beneficial owner who would not have been entitled to such Additional Amounts, had it been the Holder.

 

Whenever in this Subordinated
Debt Securities Indenture there is mentioned, in the context of any Subordinated Debt Security, the payment of the principal, premium,
if any, or interest, if any, on, or in respect of, any Subordinated Debt Security, such mention shall be deemed to include mention
of the payment of Additional Amounts provided for in this Section to the extent that, in such context, Additional Amounts are,
were or would be payable in respect thereof pursuant to the provisions of this Section and as if express mention of the payment
of Additional Amounts (if applicable) were made in any provisions hereof where such express mention is not made.

 

Section 3.28.     
FATCA. With respect to the Notes only, Article 10 of the Base Indenture is amended by adding Section 10.08, which
shall read as follows:

 

Section
10.08.FATCA. The Paying Agent shall be entitled to make any FATCA Withholding, and neither the Company nor the Paying
Agent shall have any obligation to gross-up any payment hereunder or under the Subordinated Debt Securities as a result of any
such FATCA Withholding. Each of the Company and the Paying Agent shall provide to the other party, upon request, such forms and
documentation as may be reasonably necessary for the other party to determine whether it has any withholding or reporting obligations
pursuant to FATCA in relation to the 

 

    30 

     

    

Subordinated
Debt Securities, provided that the requested information is within the first party’s possession and such party is legally
entitled to provide such information.

 

Section 3.29.     
Redemption and Repurchases of Subordinated Debt Securities. With respect to the Notes only, Article 11 of the Base
Indenture is amended by amending and restating Sections 11.01, 11.04, 11.08 and 11.09 in their entirety, and by adding Sections
11.10, 11.11 and 11.12, which shall read as follows:

 

Section
11.01.Applicability of Article. Subordinated Debt Securities of any series shall be redeemable in accordance with their
terms and (except as otherwise specified pursuant to Section 3.01 for Subordinated Debt Securities of any series) in accordance
with this Article 11. Subordinated Debt Securities of any series may not be redeemed except in accordance with provisions of applicable
law, applicable provisions of the Capital Regulations and Section 11.12 below. The Subordinated Debt Securities of any series may
not be redeemed in whole or in part at the option of the Holder thereof.

 

...

 

Section 11.04.Notice
of Redemption. Unless otherwise provided as contemplated by Section 3.01 with respect to any series of Subordinated Debt Securities,
notice of redemption shall be given (i) not less than 5 calendar days nor more than 30 calendar days prior to the Redemption Date
to each Holder of Subordinated Debt Securities to be redeemed and (ii) to Trustee at least 5 business days prior to such date,
unless a shorter notice period shall be satisfactory to the Trustee in the manner and to the extent provided in Section 1.06. Except
as otherwise provided herein, such notice should be irrevocable but may be conditioned on the occurrence of any event or circumstance.

 

Any redemption notice will state:

 

		a)	the Redemption Date;

 

		b)	the Redemption Price;

 

		c)	that, and subject to what conditions, the Redemption
Price will become due and payable on the Redemption Date and that payments will cease to accrue on such date;

 

    31 

     

    

		d)	the place or places at which each Holder may obtain payment
of the Redemption Price; and

 

		e)	the CUSIP, Common Code and/or ISIN number or numbers,
if any, with respect to such series of Subordinated Debt Securities.

 

Notice
of redemption of Subordinated Debt Securities to be redeemed at the selection of the Company shall be given by the Company or,
at the Company’s request, by the Trustee in the name and at the expense of the Company.

 

If
the Company has elected to redeem Subordinated Debt Securities but prior to the payment of the redemption amount with respect to
such redemption the relevant UK authority exercises its U.K. bail-in power in respect of the Subordinated Debt Securities, the
relevant redemption notice shall be automatically rescinded and shall be of no force and effect, and no payment of the redemption
amount will be due and payable.

 

...

 

Section
11.08.Optional Redemption Due to Changes in Tax Treatment. Unless otherwise provided as contemplated by Section 3.01
with respect to any series of Subordinated Debt Securities and subject to the conditions set out in Section 11.12 below, the Company
will have the option to redeem Subordinated Debt Securities of any series at its sole discretion, in whole but not in part, on
not less than 5 calendar days nor more than 30 calendar days’ notice, at any time, at a Redemption Price equal to 100% of
the principal amount, together with accrued but unpaid interest, if any, in respect of any such series of Subordinated Debt Securities
to (but excluding) the Redemption Date, if, at any time, the Company shall determine that as a result of a change in or amendment
to the laws or regulations of the U.K. Taxing Jurisdiction (including any treaty to which a U.K. Taxing Jurisdiction is a party),
or any change in the official application or interpretation of such laws or regulations (including a decision of any court or tribunal)
which change or amendment becomes effective or applicable on or after a date included in the terms of such series of Subordinated
Debt Securities pursuant to Section 3.01:

 

(a)       in
making any payment under the Subordinated Debt Securities, including any payment in respect of principal or premium, if any, or
interest, the Company has or will or would on

 

    32 

     

    

the
next Interest Payment Date become obligated to pay Additional Amounts;

 

(b)       the
payment of interest on the next Interest Payment Date in respect of any of the Subordinated Debt Securities would be treated as
a “distribution” within the meaning of Section 1000 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory
modification or re-enactment thereof for the time being);

 

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

 

(d)       the
Company would not, as a result of the Subordinated Debt Securities being in issue, be able, to any material extent, to have 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 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); or

 

(e)       a
future conversion into equity or write-down of the principal amount of the Subordinated Debt Securities would result in (A) a United
Kingdom tax liability, or the receipt of income or profit which would be subject to United Kingdom tax, or (B) the Subordinated
Debt Securities or any part thereof being treated as a derivative or an embedded derivative for United Kingdom tax purposes.

 

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

 

    33 

     

    

Section
11.09.Optional Redemption Due to a Capital Disqualification Event. Unless otherwise provided as contemplated by Section
3.01 with respect to any series of Subordinated Debt Securities and subject to the conditions set out in Section 11.12 below, the
Company will have the option to redeem Subordinated Debt Securities of any series at its sole discretion, in whole but not in part,
on not less than 5 calendar days nor more than 30 calendar days’ notice, at a Redemption Price equal to 100% of the principal
amount, together with accrued but unpaid interest, if any, in respect of such series of Subordinated Debt Securities to (but excluding)
the Redemption Date if, at any time immediately prior to the giving of the notice referred to above, a Capital Disqualification
Event has occurred and is continuing.

 

Section 11.10.Optional
Redemption. Unless otherwise provided as contemplated by Section 3.01 with respect to any series of Subordinated Debt Securities
and subject to the conditions set out in Section 11.12 below, the Company may, at the Company’s option and in its sole discretion
on not less than 5 calendar days nor more than 30 calendar days’ notice, redeem Subordinated Debt Securities of any series,
in whole but not in part, any day from (and including) August 28, 2030 to (and including) November 28, 2030, at a Redemption Price
equal to 100% of the principal amount of the Subordinated Debt Securities of any series together with any accrued but unpaid interest
to, but excluding, the Redemption Date.

 

Section
11.11.Repurchases. Subject to the conditions set out in Section 11.12 below, the Company may from time to time purchase
Subordinated Debt Securities in the open market or by tender or by private agreement, in any manner and at any price or at differing
prices. Subordinated Debt Securities purchased or otherwise acquired by the Company may be (i) held, (ii) resold or (iii) at the
Company’s sole discretion, surrendered to the Trustee for cancellation (in which case all Subordinated Debt Securities so
surrendered will forthwith be cancelled in accordance with applicable law and thereafter may not be re-issued or resold).

 

Section
11.12.Early Redemption or Repurchases – PRA. Subordinated Debt Securities may only be redeemed (and notice thereof
given to the Holders of the Subordinated Debt Securities) or purchased by the Company prior to the Maturity Date pursuant to this
Article 11, provided that (except to the extent that the Capital Regulations does not so require):

 

    34 

     

    

(a) the Company has given such
notice to the PRA as the PRA may then require before the Company becomes committed to the proposed redemption or repurchase; and

 

(b) the PRA has granted permission
for the Company to make such redemption or repurchase and the Company has complied with any other requirements of the Capital Regulations
and/or the PRA applicable to such redemptions or repurchases at the time; and

 

(c) with respect to Sections
11.08 and 11.09 only, and except to the extent that the Capital Regulations does not so require, the Company may only redeem the
Subordinated Debt Securities before five years after the date of issuance of the Subordinated Debt Securities if, in addition to
the conditions set out in (a) and (b) above, the following conditions are met:

 

		(i)	in the case of an optional redemption due to changes in tax treatment pursuant to Section 11.08, the Company demonstrates to
the satisfaction of the PRA that the change in the applicable tax treatment relating to the Subordinated Debt Securities is material
and was not reasonably foreseeable at the time of issuance of the Subordinated Debt Securities; or

 

		(ii)	in the case of an optional redemption due to the occurrence of a Capital Disqualification Event pursuant to Section 11.09,
(i) the PRA considers such change in the regulatory classification of such Subordinated Debt Securities to be sufficiently certain
and (ii) the Company demonstrates to the satisfaction of the PRA that the Capital Disqualification Event was not reasonably foreseeable
at the time of the issuance of the Subordinated Debt Securities.

 

Section 3.30.     
Exchanges Not Deemed Payment. With respect to the Notes only, Section 12.10 of the Base Indenture is deleted in its
entirety.

 

Section 3.31.     
Exchange of Subordinated Debt Securities. With respect to the Notes only, Article 13 of the Base Indenture is deleted
in its entirety.

 

Article
4 

 

Section 4.01.     
Agreement with Respect to Exercise of U.K. Bail-In Power

 

(a)           
Notwithstanding any other term of any Notes, the Indenture, or any other agreements, arrangements, or understandings between
the Company and any Holder or Beneficial Owner, by its acquisition of Notes, each Holder (including each Beneficial Owner) of the
Notes acknowledges, accepts, agrees to be bound

 

    35 

     

    

by
and consents to the exercise of any U.K. bail-in power by the relevant U.K. authority which may result in (i) the reduction or
cancellation of all, or a portion, of the principal amount of, or interest on, the Notes; (ii) the conversion of all, or a portion,
of the principal amount of, or interest on, the Notes into ordinary shares or other securities or other obligations of the Company
or another person; and/or (iii) the amendment or alteration of the Maturity of the Notes, or amendment of the amount of interest
due on the Notes, or the Interest Payment Dates, including by suspending payment for a temporary period; which U.K. bail-in power
may be exercised by means of variation of the terms of the Notes solely to give effect to the exercise by the relevant U.K. authority
of such U.K. bail-in power. Each Holder (including each Beneficial Owner) of the Notes further acknowledges and agrees that the
rights of the Holders and Beneficial Owners under the Notes are subject to, and will be varied, if necessary, solely to give effect
to, the exercise of any U.K. bail-in power by the relevant U.K. authority.

 

(b)           
By its acquisition of Notes each Holder and Beneficial Owner:

 

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

 

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

 

(iii)           
acknowledges and agrees that, upon the exercise of any U.K. bail-in power by the relevant U.K. authority, (a) the Trustee
shall not be required to take any further directions from Holders of the Notes under Section 5.12 of the Indenture, and (b) neither
the Base Indenture nor this Seventh Supplemental Indenture shall impose any duties upon the Trustee whatsoever with respect to
the exercise of any U.K. bail-in power by the relevant U.K. authority;

 

Notwithstanding paragraph (b),
if, following the completion of the exercise of the U.K. bail-in power by the relevant U.K. authority, the Notes remain outstanding
(for example, if the exercise of the U.K. bail-in power results in only a partial write-down of the principal of the Notes), then
the Trustee’s duties under the Indenture shall remain applicable with respect to the Notes following such completion to the
extent that the

 

    36 

     

    

Company and the Trustee shall
agree pursuant to a supplemental indenture or an amendment to the Seventh Supplemental Indenture; and

 

(iv) (a) consented to the exercise
of any U.K. bail-in power which may be imposed without any prior notice by the relevant U.K. authority of its decision to exercise
such power with respect to the Notes; and

 

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

 

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

 

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

 

(e)           
If the Company has elected to redeem Notes of this series but prior to the payment of the redemption amount with respect
to such redemption the relevant U.K. authority exercises its U.K. bail-in power with respect to any Notes, the relevant redemption
notices shall be automatically rescinded and shall be of no force and effect, and no payment of the redemption amount will be due
and payable.

 

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

 

Section 4.02.     
Concerning BRRD Liability. Notwithstanding and to the exclusion of any other term of the Indenture or any other agreements,

 

    37 

     

    

arrangements,
or understanding between the Company and the Trustee, the Trustee acknowledges and accepts that a BRRD Liability arising under
the Indenture with respect to the Notes may be subject to the exercise of Bail-in Powers by the Relevant Resolution Authority,
and acknowledges, accepts and agrees to be bound by:

 

(a)       the
effect of the exercise of Bail-in Powers by the Relevant Resolution Authority in relation to any BRRD Liability of the Company
to the Trustee under the Indenture, that (without limitation) may include and result in any of the following, or some combination
thereof:

 

(i)the reduction of all, or a portion,
of the BRRD Liability or outstanding amounts due thereon;

 

(ii)the conversion of all, or a
portion, of the BRRD Liability into shares, other securities or other obligations of the Company or another person (and the issue
to or conferral on the Trustee of such shares, securities or obligations);

 

(iii)the cancellation of the BRRD
Liability; and/or

 

(iv)the amendment or alteration
of any interest, if applicable, thereon, the maturity or the dates on which any payments are due, including by suspending payment
for a temporary period; and

 

(b)       the
variation of the terms of this the Indenture, as deemed necessary by the Relevant Resolution Authority, to give effect to the exercise
of Bail-in Powers by the Relevant Resolution Authority.

 

Article
5

MISCELLANEOUS

 

Section 5.01.     
Effect of Supplemental Indenture. Upon the execution and delivery of this Seventh Supplemental Indenture by the Company
and the Trustee, and the delivery of the documents referred to in ‎Section 5.02 herein, the Base Indenture shall be amended
and supplemented in accordance herewith, and this Seventh Supplemental Indenture shall form a part of the Base Indenture for all
purposes in respect of the Notes.

 

Section 5.02.     
Other Documents to Be Given to the Trustee. As specified in Section 9.03 of the Indenture and subject to the provisions
of Section 6.03 of the Indenture, the Trustee shall be entitled to receive an Officer’s Certificate and an Opinion of Counsel
stating the recitals contained in Section 1.02 of the Indenture, and in the case of such Opinion of Counsel, that this Seventh
Supplemental Indenture is authorized or permitted by the Indenture, conforms to

 

    38 

     

    

the
requirements of the Trust Indenture Act, and (subject to Section 1.03 of the Indenture) constitutes valid and binding obligations
of the Company enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability and may be subject
to possible judicial or regulatory actions giving effect to governmental actions or foreign laws affecting creditors’ rights,
as conclusive evidence that this Seventh Supplemental Indenture complies with the applicable provisions of the Base Indenture.

 

Section 5.03.     
Confirmation of Indenture. The Base Indenture and this Seventh Supplemental Indenture with respect to the Notes,
is in all respects ratified and confirmed, and the Base Indenture, this Seventh Supplemental Indenture and all indentures supplemental
thereto shall, in respect of the Notes, be read, taken and construed as one and the same instrument. This Seventh Supplemental
Indenture constitutes an integral part of the Base Indenture with respect to the Notes. In the event of a conflict between the
terms and conditions of the Base Indenture and the terms and conditions of this Seventh Supplemental Indenture, the terms and conditions
of this Seventh Supplemental Indenture shall prevail with respect to the Notes.

 

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

 

Section 5.05.     
Governing Law. This Seventh Supplemental Indenture and the Notes shall be governed by and construed in accordance
with the laws of the State of New York, irrespective of conflicts of laws principles, except as stated in Section 1.12 of the Indenture,
and except that the authorization and execution by the Company of this Seventh Supplemental Indenture and the Notes shall be governed
by (in addition to the laws of the State of New York relevant to execution) the respective jurisdictions of the Company and the
Trustee, as the case may be.

 

Section 5.06.     
Reparability. In case any provision contained in this Seventh 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.

 

    39 

     

    

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

 

[Signature Page Follows] 

 

    40 

     

    

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

 

	 	NATWEST GROUP PLC, as Company
	 	 
	 	 
	 	By:	/s/ Donal Quaid
	 	Name:Donal Quaid
	 	Title: NatWest Group Treasurer

	 	 
	 	 
	 	THE BANK OF NEW YORK MELLON, LONDON BRANCH, as Trustee
	 	 
	 	 
	 	By:	/s/ Thomas Bolton
	 	Name: Thomas Bolton
	 	Title:  Authorized Signatory

 

 

[Signature Page to Seventh Supplemental
Indenture] 

 

    41 

     

    

EXHIBIT A

 

FORM OF GLOBAL NOTE

 

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

 

THE RIGHTS OF THE HOLDER
OF THIS NOTE ARE, TO THE EXTENT AND IN THE MANNER SET FORTH IN SECTION 12.01 OF THE INDENTURE, SUBORDINATED TO THE CLAIMS OF OTHER
CREDITORS OF THE COMPANY, AND THIS NOTE IS ISSUED SUBJECT TO THE PROVISIONS OF THAT SECTION 12.01, AND THE HOLDER OF THIS NOTE,
BY ACCEPTING THE SAME, AGREES TO AND SHALL BE BOUND BY SUCH PROVISIONS. THE PROVISIONS OF SECTION 12.01 OF THE INDENTURE AND THE
TERMS OF THIS PARAGRAPH ARE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF SCOTLAND.

 

CUSIP No. [·]

 

ISIN No. [·]

 

NATWEST
GROUP plc

 

$[·]
FIXED-TO-FIXED RESET RATE SUBORDINATED TIER 2 NOTES DUE 20[·]
(THE “NOTES”)

 

No. [•]$[•]

 

NATWEST GROUP plc (herein called the “Company,”
which term includes any successor person under the Indenture (as defined on the reverse hereof)), for value received, hereby promises
to pay to CEDE & CO., or registered assignees, the principal sum of $[•] ([•] million dollars) on [·]
(the “Maturity Date”) or on such earlier date as the principal hereof may become due in accordance with the
terms hereof and to pay interest thereon in accordance with the terms set out below.

 

    A-1 

     

    

The Notes shall bear interest from (and
including) [●], 2020 to (but excluding) [·] (the “Reset Date”),
at a rate of [●]% per annum, and from (and including) the Reset Date to (but excluding) the Maturity Date (the “Reset
Period”), at a rate per annum equal to the applicable U.S. Treasury Rate (as defined below) as determined by the Calculation
Agent on the Reset Determination Date (as defined below), plus [●]%. Interest on the Notes will be paid semi-annually in
arrear on [·] and [·] of each year
(each, an “Interest Payment Date”), beginning on [●], 2020, to (and including) the Maturity Date. The
Company’s obligation to pay the principal of and any interest on the Notes shall not be deferrable.

 

The “Reset Determination Date”
will be the second business day immediately preceding the Reset Date.

 

A “business day” means
any day, other than Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorised
or required by law or regulation to close in the City of New York or in the City of London.

 

The “Calculation Agent”
for the Notes is National Westminster Bank plc or its successor appointed by the Company, pursuant to a calculation agent agreement
entered into on [●], 2020. The Calculation Agent shall determine the U.S. Treasury Rate in accordance with the following
provisions:

 

(i)       “U.S.
Treasury Rate” means, with respect to the Reset Date, the rate per annum equal to: (1) the average of the yields on actively
traded U.S. Treasury securities adjusted to constant maturity, for five-year maturities, for the five business days immediately
prior to the Reset Determination Date and appearing under the caption “Treasury constant maturities” at 5:00 p.m. (New
York City time) on the Reset Determination Date in the applicable most recently published statistical release designated “H.15
Daily Update”, or any successor publication that is published by the Board of Governors of the Federal Reserve System that
establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity, under the caption “Treasury
Constant Maturities”, for the maturity of five years; or (2) if such release (or any successor release) is not published
during the week immediately prior to the Reset Determination Date or does not contain such yields, the rate per annum equal to
the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the Reset Date.

 

(ii)If the U.S. Treasury Rate cannot
be determined, for whatever reason, as described under (1) or (2) above, “U.S. Treasury Rate” means the rate in percentage
per annum as notified by the Calculation Agent to the Company equal to the yield on U.S. Treasury securities having a maturity
of five years as

 

    A-2 

     

    

set
forth in the most recently published statistical release designated “H.15 Daily Update” under the caption “Treasury
constant maturities” (or any successor publication that is published weekly by the Board of Governors of the Federal Reserve
System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury constant maturities” for the maturity of five years) at 5:00 p.m. (New York City time) on the Reset Determination
Date on which such rate was set forth in such release (or any successor release).

 

“Comparable Treasury Issue”
means, with respect to the Reset Period, the U.S. Treasury security or securities selected by the Company with a maturity date
on or about the last day of the Reset Period and that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities denominated in U.S. dollars and having a maturity of five
years.

 

“Comparable Treasury Price”
means, with respect to the Reset Date, (i) the arithmetic average of the Reference Treasury Dealer Quotations for the Reset Date
(calculated on the Reset Determination Date preceding the Reset Date), after excluding the highest and lowest such Reference Treasury
Dealer Quotations, or (ii) if fewer than five such Reference Treasury Dealer Quotations are received, the arithmetic average of
all such quotations, or (iii) if fewer than two such Reference Treasury Dealer Quotations are received, then such Reference Treasury
Dealer Quotation as quoted in writing to the Calculation Agent by a Reference Treasury Dealer.

 

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

 

“Reference Treasury Dealer Quotations”
means with respect to each Reference Treasury Dealer and the Reset Date, the arithmetic average, as determined by the Calculation
Agent, of the bid and offered prices for the applicable Comparable Treasury Issue, expressed in each case as a percentage of its
principal amount, at 11:00 a.m. (New York City time), on the Reset Determination Date.

 

All percentages resulting from any calculation
of any interest rate on the Notes will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point, with
five one-millionths of a percentage point rounded upward, and all dollar amounts would be rounded to the nearest cent, with one-half
cent being rounded upward.

 

    A-3 

     

    

Interest on the Notes will be calculated
on the basis of a 360-day year divided into twelve months of 30 days each and, in the case of an incomplete month, the actual number
of days elapsed in such period.

 

The “Regular Record Dates”
for the Notes will be the 15th calendar day preceding each Interest Payment Date, whether or not a business day.

 

If any scheduled Interest Payment Date
is not a business day, the Company will pay interest on the next day that is a business day, but interest on such payment will
not accrue during the period from and after such scheduled Interest Payment Date.

 

If the scheduled Maturity Date or date of
redemption or repurchase or repayment of the Notes is not a business day, the Company may pay interest and principal on the next
succeeding business day, but interest on that payment will not accrue during the period from and after the scheduled maturity date
or date of redemption, repurchase or repayment

 

If (i) the Company fails to pay any installment
of interest in respect of this Note on or before the relevant Interest Payment Date and such failure continues for 14 days, or
(ii) the Company fails to pay all or any part of the principal amount of this Note when it otherwise becomes due and payable, whether
upon redemption or otherwise, and such failure continues for 7 days (each of (i) and (ii), a “Default”), the Trustee
may commence a proceeding for the winding up of the Company, provided that the Trustee may not declare the principal amount of
any Outstanding Notes to be due and payable.

 

Payment of the principal amount of, and
any interest on, this Note will be made in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. Such payment shall be made to the Holder including through a Paying Agent of the
Company outside the United Kingdom for collection by the Holder.

 

Prior to due presentment of this Note for
registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name
this Note is registered as the owner of such Note for the purpose of receiving payment of principal and interest, if any, on such
Note and for all other purposes whatsoever, whether or not such Note be overdue, and neither the Company, the Trustee nor any agent
of the Company or the Trustee shall be affected by notice to the contrary.

 

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

 

    A-4 

     

    

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

 

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

 

For these purposes, a “U.K. bail-in power”
is any write-down, conversion, transfer, modification or suspension power existing from time to time under any laws, regulations,
rules or requirements relating to the resolution of banks, banking group companies, credit institutions and/or investment firms
incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company or other members of the Group,
including but not limited to any such laws, regulations, rules or requirements which are implemented, adopted or enacted within
the context of a European Union directive or regulation of the European Parliament and of the Council establishing a framework
for the recovery and resolution of credit institutions and investment firms (notwithstanding that the U.K. is no longer a member
state of the European Union) and/or within the context of a U.K. resolution regime under the Banking Act 2009, as the same has
been or may be amended from time to time (whether pursuant to the U.K. Financial Services (Banking Reform) Act 2013 (the “Banking
Reform Act 2013”), secondary legislation or otherwise, the “Banking Act”), pursuant to which any obligations
of a bank, banking group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled, modified,
transferred and/or converted into shares or other securities or obligations of the obligor or any other person (or suspended for
a temporary period) or pursuant to which any right in a contract governing such obligations may be deemed to have

 

    A-5 

     

    

been exercised (and a reference to the “relevant U.K.
authority” is to any authority with the ability to exercise a U.K. bail-in power).

 

    A-6 

     

    

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

 

Dated: [●], 2020

 

 

	 	 
	 	 
	 	NATWEST GROUP PLC
	 	 
	 	 
	 	By:	            
	 	Name: 
	 	Title:  

 

 

    A-7 

     

    

CERTIFICATE
OF AUTHENTICATION

 

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

 

Dated: [●], 2020

	 	 
	 	 
	 	THE
BANK OF NEW YORK,

MELLON, LONDON BRANCH
	 	 
	 	as Trustee
	 	 
	 	 
	 	By:	            
	 	Authorized Signatory

 

 

 

 

    A-8 

     

    

[Reverse of Note]

 

This
note is one of a duly authorized issue of securities of the Company
(herein called the “Notes”) issued and to be issued in one or more series under a Subordinated Debt Securities
Indenture dated as of December 4, 2012, as amended and supplemented by the First Supplemental Indenture dated as of December 4,
2012, the Fourth Supplemental Indenture dated as of May 28, 2014 and the Sixth Supplemental Indenture dated as of August 19, 2020
(collectively, the “Base Indenture”) and the Seventh Supplemental Indenture dated as of [●], 2020 (the
“Seventh Supplemental Indenture” and, together with the Base Indenture, the “Indenture”),
in each case among the Company, as issuer, and The Bank of New York Mellon, acting through its London Branch, as trustee (herein
called the “Trustee” which term includes any successor trustee under the Indenture). Reference is hereby made
to the Indenture and all indentures supplemental thereto for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and
are to be, authenticated and delivered.

 

This
Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $[●].

 

The Company may, from time to time, without
the consent of the Holders of the Notes, issue Additional Subordinated Debt Securities having the same ranking and same interest
rate, Maturity, redemption terms and other terms as the Notes of this series, except for the price to the public and issue date
and first Interest Payment Date, of the Notes of this series. Any such Additional Subordinated Debt Securities, together with the
Notes of this series, may constitute a single series of Notes under the Indenture and shall be included in the definition of “Subordinated
Debt Securities” in the Indenture where the context requires; provided, however, that if the original Notes
of this series are determined by the Company to be debt for U.S. federal income tax purposes and the Additional Subordinated Debt
Securities are not fungible with the Outstanding Notes of this series for U.S. federal income tax purposes, the Additional Subordinated
Debt Securities must have a CUSIP, ISIN and/or other identifying number different from those used for the Outstanding Notes of
this series.

 

The Notes will initially be issued in the
form of one or more global Notes (each, a “Global Note”). Except as provided in the Indenture, a Global Note
shall not be exchangeable for one or more definitive Notes.

 

The Notes of this series will constitute
direct unconditional, unsecured and subordinated obligations of the Company, as described herein, and will rank pari passu
without any preference among themselves and junior in right of payment to

 

    A-9 

     

    

the
claims of any existing and future unsecured and unsubordinated indebtedness of the Company.

 

The rights of the Holders of the Notes of
this series are, to the extent and in the manner set forth in Section 12.01 of the Indenture, subordinated to the claims of all
Senior Creditors of the Company, and this series of Notes is issued subject to the provisions of that Section 12.01, and the holders
of this series of Notes, by accepting the same, agree to and shall be bound by such provisions. The provisions of Section 12.01
of the Indenture and the terms of this paragraph are governed by, and shall be construed in accordance with, the laws of Scotland.

 

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

 

Except as otherwise provided in Article
5 of the Indenture, the Trustee may proceed to protect and enforce its rights and the rights of the Holders of the Notes whether
in connection with any breach by the Company of its obligations under the Notes, the Indenture or otherwise, including by judicial
proceedings, provided that the Company shall not, as a result of any such action by the Trustee, be required to pay any amount
representing or measured by reference to principal or interest on the Notes prior to any date on which the principal of, or any
interest on, the Notes would have otherwise been payable.

 

If a Default occurs and is continuing, the
Trustee may commence a proceeding for the winding up of the Company, provided that the Trustee may not declare the principal amount
of any Outstanding Notes to be due and payable.

 

Notwithstanding any other provisions of
the Indenture, failure to make any payment on the Notes shall not be a Default if it is withheld or refused, upon independent counsel’s
advice delivered to the Trustee, in order to comply with any applicable fiscal or other law or regulation or order of any court
of competent jurisdiction, provided, however, that the Trustee may require the Company to take any action which, upon independent
counsel’s advice delivered to the Trustee, is appropriate and reasonable in the circumstances (including proceedings for
a court declaration), in which case the Company shall immediately take and expeditiously proceed with the action and shall be bound
by any final resolution resulting therefrom. If any such action results in a determination that the relevant payment can be made
without violating any applicable law, regulation or order then the payment shall become due and payable on the expiration of the

 

    A-10 

     

    

applicable
14-day or seven-day period after the Trustee gives written notice to the Company informing it of such determination.

 

Subject to applicable law, the Trustee (acting
on behalf of the Holders) and the Holders of the Notes by their acceptance thereof will be deemed to have waived to the fullest
extent permitted by law any right of set-off, counterclaim or combination of accounts with respect to the Notes, the Seventh Supplemental
Indenture or the Base Indenture (or between the Company’s obligations under or in respect of the Notes and any liability
owed by a Holder to the Company) that they (or the Trustee acting on their behalf) might otherwise have against the Company, whether
before or during any winding-up, liquidation or administration of the Company. Notwithstanding the above, if any of such rights
and claims of any such Holder (or the Trustee acting on behalf of such Holders) against the Company are discharged by set-off,
such Holder (or the Trustee acting on behalf of such Holders) will immediately pay an amount equal to the amount of such discharge
to the Company or, in the event of any winding-up, liquidation or administration of the Company, the liquidator or administrator
(or other relevant insolvency official), as the case may be, to be held on trust for the Senior Creditors and until such time as
payment is made will hold a sum equal to such amount on trust for the Senior Creditors and accordingly such discharge shall be
deemed not to have taken place. The terms of this paragraph are governed
by, and shall be construed in accordance with, the laws of Scotland.

 

No remedy against the Company, other than
as referred to in Article 5 of the Indenture, shall be available to the Trustee or the Holders of the Notes whether for the recovery
of amounts owing in respect of such Notes or under the Indenture or in respect of any breach by the Company of its obligations
under the Indenture or in respect of the Notes, except that the Trustee and the Holders shall have such rights and powers as they
are entitled to have under the Trust Indenture Act, including the Trustee’s prior lien on any amounts collected following
a Default or Event of Default for payment of the Trustee’s fees and expenses, and provided that any payments on the Notes
are subject to the subordination provisions set forth in the Indenture.

 

All amounts of principal, premium, if any,
and interest on the Notes will be paid by the Company without deduction or withholding for, or on account of, any and all present
and future income, stamp and other taxes, levies, imposts, duties, charges, fees, deductions or withholdings now or hereafter imposed,
levied, collected, withheld or assessed by or on behalf of the United Kingdom or any political subdivision or any authority thereof
or therein having the power to tax (the “U.K. Taxing Jurisdiction”), unless such deduction or withholding is
required by law.

 

If deduction or withholding of any such
taxes, levies, imposts, duties, charges, fees, deductions or withholdings shall at any time be required by the U.K.

 

    A-11 

     

    

Taxing Jurisdiction, the Company will pay
such additional amounts with respect to interest and any redemption premium on the Notes (“Additional Amounts”)
as may be necessary in order that the net amounts paid to the Holders of the Notes, after such deduction or withholding, shall
equal the amounts of such payments which would have been payable in respect of such Notes had no such deduction or withholding
been required; provided, however, that the foregoing will not apply to any such tax, levy, impost, duty, charge, fee, deduction
or withholding that would not have been payable or due but for the fact that:

 

(i) the Holder or the beneficial owner of
the Note is a domiciliary, national or resident of, or engaging in business or maintaining a permanent establishment or physically
present in, the U.K. Taxing Jurisdiction or otherwise has some connection with the U.K. Taxing Jurisdiction other than the mere
holding or ownership of a Note, or the collection of the payment on any Note,

 

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

 

(iii) the Note is presented (where presentation
is required) for payment more than 30 days after the date payment became due or was provided for, whichever is later, except to
the extent that the Holder would have been entitled to such Additional Amount on presenting (where presentation is required) the
Note for payment at the close of such 30 day period,

 

(iv) the Holder or the beneficial owner
of the Note or the payment on such Note failed to comply with a request by the Company or its liquidator or other authorized person
addressed to the Holder (x) to provide information concerning the nationality, residence or identity of the Holder or such beneficial
owner or (y) to make any declaration or other similar claim to satisfy any requirement, which in the case of (x) or (y), is required
or imposed by a statute, treaty, regulation or administrative practice of the U.K. Taxing Jurisdiction as a precondition to exemption
or relief from all or part of such deduction or withholding,

 

(v) the withholding or deduction is required
to be made pursuant to European Council Directive 2003/48/EC on the taxation of savings income or any Directive amending, supplementing
or replacing such Directive, or any law implementing or complying with, or introduced in order to conform to, such Directive or
Directives,

 

(vi) the withholding or deduction is required
to be made pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended, any agreement with the
U.S. Treasury entered into with respect thereto, any U.S. Treasury regulation issued thereunder or any other official interpretations
or guidance issued with respect thereto; any intergovernmental

 

    A-12 

     

    

agreement
entered into with respect thereto, or any law, regulation, or other official interpretation or guidance promulgated pursuant to
such an intergovernmental agreement,

 

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

 

(viii) any combination of subclauses (i)
through (vii) above,

 

nor shall Additional Amounts be paid with
respect to a payment on the Notes to any Holder who is a fiduciary or partnership or person other than the sole beneficial owner
of such payment to the extent such payment would be required by the laws of the U.K. Taxing Jurisdiction to be included in the
income for tax purposes of a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial
owner who would not have been entitled to such Additional Amounts, had it been the Holder.

 

Whenever in the Indenture there is mentioned,
in the context of Notes, the payment of the principal, premium, if any, or interest on, or in respect of, any Notes, such mention
shall be deemed to include mention of the payment of Additional Amounts provided for herein to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof pursuant to the provisions of the foregoing paragraph and as
if express mention of the payment of Additional Amounts (if applicable) were made in any provisions hereof where such express mention
is not made.

 

The Notes of this series may not be redeemed
by the Company except as provided in the Indenture. The Notes of this series may not be redeemed in whole or in part at the option
of the Holder thereof.

 

Subject to the conditions set forth below,
the Company will have the option to redeem Notes of this series at its sole discretion, in whole but not in part, on not less than
5 calendar days nor more than 30 calendar days’ notice, at any time, at a Redemption Price equal to 100% of the principal
amount, together with accrued but unpaid interest, if any, in respect of the Notes to (but excluding) the Redemption Date, if,
at any time, the Company shall determine that as a result of a change in or amendment to the laws or regulations of the U.K. Taxing
Jurisdiction (including any treaty to which a U.K. Taxing Jurisdiction is a party), or any change in the official application or
interpretation of such laws or regulations (including a decision of any court or tribunal) which change or amendment becomes effective
on or after [●], 2020:

 

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		(a)	in making any payment under the Notes, including any payment in respect of principal or premium, if any, or interest, the Company
has or will or would on the next Interest Payment Date become obligated to pay Additional Amounts;

 

		(b)	payment of interest on the next Interest Payment Date in respect of any of the Notes would be treated as a “distribution”
within the meaning of Section 1000 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being);

 

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

 

		(d)	the Company would not, as a result of the Notes being in issue, be able, to any material extent, to have 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 grouped for applicable United Kingdom tax purposes (whether under the group relief system current as at [●],
2020, or any similar system or systems having like effect as may from time to time exist); or

 

		(e)	a future conversion into equity or write-down of the principal amount of the Notes would result in (A) a United Kingdom tax
liability, or the receipt of income or profit which would be subject to United Kingdom tax, or (B) the Notes or any part thereof
being treated as a derivative or an embedded derivative for United Kingdom tax purposes.

 

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

 

Subject to the conditions set forth below,
the Company will have the option to redeem Notes of this series at its sole discretion, in whole but not in part, on not less than
5 calendar days nor more than 30 calendar days’ notice, at any time, at a Redemption Price equal to 100% of the principal
amount, together with accrued but unpaid interest, if any, in respect of the Notes to (but excluding) the

 

Redemption Date, if, at any time immediately
prior to the giving of the notice referred to above, a Capital Disqualification Event has occurred and is continuing.

 

Subject to the conditions set forth below,
the Company may, at the Company’s option and in its sole discretion, redeem Notes of this series, in whole but not in part,
any day from (and including) [●], 20[●] to (and including) [●], 20[●], at a Redemption Price equal to 100%
of the principal amount of the Notes of this series together with any accrued but unpaid interest to, but excluding, the Redemption
Date.

 

Subject to the conditions set forth below,
the Company may also from time to time purchase Notes in the open market or by tender or by private agreement, in any manner and
at any price or at differing prices. Notes purchased or otherwise acquired by the Company may be (i) held, (ii) resold or (iii)
at the Company’s sole discretion, surrendered to the Trustee for cancellation (in which case all Notes so surrendered will
forthwith be cancelled in accordance with applicable law and thereafter may not be re-issued or resold).

 

Notwithstanding any other provision, the
Notes may only be redeemed (and notice thereof given to the Holders of the Notes) or purchased by the Company prior to the Maturity
Date as set forth in the foregoing paragraphs provided that (except to the extent that the Capital Regulations does not so require):

 

(a)           
the Company has given such notice to the PRA as the PRA may then require before the Company becomes committed to the proposed
redemption or repurchase; and

 

(b)           
the PRA has granted permission for the Company to make such redemption or repurchase and the Company has complied with any
other requirements of the Capital Regulations and/or the PRA applicable to such redemptions or repurchases at the time; and

 

(c)           
with respect to redemption of the Notes only, and except to the extent the Capital Regulations does not so require, the
Company may only redeem the Notes before five years after the date of issuance of the Notes if, in addition to the conditions set
out in (a) and (b) above, the following conditions are met:

 

		(i)	in the case of an optional redemption due to changes in tax treatment, the Company demonstrates to the satisfaction of the
PRA that the change in the applicable tax treatment relating to the Notes is material and was not reasonably foreseeable at the
time of issuance of the Notes; or

 

    A-14 

     

    

		(ii)	in the case of an optional redemption due to the occurrence of a Capital Disqualification Event, (i) the PRA considers the
change in the regulatory classification of the Notes to be sufficiently certain and (ii) the Company demonstrates to the satisfaction
of the PRA that the Capital Disqualification Event was not reasonably foreseeable at the time of the issuance of the Notes; and

 

(d)           
the Company has complied with any alternative or additional preconditions set out in the relevant Capital Regulations and/or
required by the PRA as a prerequisite to its consent to such redemptions or repurchases at the time.

 

If the Company elects to redeem the Notes
of this series, the Notes will cease to accrue interest from the Redemption Date, provided the Redemption Price has been
paid in accordance with the Indenture.

 

Upon
payment of (i) the amount of principal so declared due and payable
and (ii) accrued and unpaid interest, all of the Company’s obligations in respect of the payment of the principal of, and
accrued and unpaid interest on, the Notes of this series shall terminate.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Notes of each series to be affected thereby by the Company and the Trustee
with the consent of the Holders of not less than 662⁄3% in principal amount of the Notes at the time Outstanding of each such
series provided, however, that no such amendment or modification shall be effected in relation to any Note, unless (except to the
extent that the Capital Regulations do not so require) the Company
has notified the PRA of its intention to do so before the proposed modification and the PRA has granted its permission thereto.
The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount of the Outstanding Notes
of each series, on behalf of the Holders of all Notes of such series, to waive compliance by the Company with certain provisions
of the Indenture and certain past Events of Default and Defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and
of any Note issued in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

 

No reference herein to the Indenture and
no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay, if and when due and payable, the principal of,

 

    A-15 

     

    

and
interest on, this Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

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

 

Subject to the subordination provisions
herein, no provision of this Note or of the Indenture shall alter or impair the right of the Holder of this Note, which is absolute
and unconditional, to receive payment of the principal of, and interest on, this Note when due and payable in accordance with the
provisions of this Note and the Indenture and to institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder.

 

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

 

For these purposes, a “U.K. bail-in
power” is any write-down, conversion, transfer, modification or suspension power existing from time to time under any
laws, regulations, rules or requirements relating to the resolution of banks, banking group companies, credit institutions and/or
investment firms incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company or other members
of the Group, including but not limited to any such laws, regulations, rules or requirements which are

 

    A-16 

     

    

implemented,
adopted or enacted within the context of a European Union directive or regulation of the European Parliament and of the Council
establishing a framework for the recovery and resolution of credit institutions and investment firms (notwithstanding that the
U.K. is no longer a member state of the European Union) and/or within the context of a U.K. resolution regime under the Banking
Act 2009, as the same has been or may be amended from time to time (whether pursuant to the U.K. Financial Services (Banking Reform)
Act 2013 (the “Banking Reform Act 2013”), secondary legislation or otherwise, the “Banking Act”),
pursuant to which any obligations of a bank, banking group company, credit institution or investment firm or any of its affiliates
can be reduced, cancelled, modified, transferred and/or converted into shares or other securities or obligations of the obligor
or any other person (or suspended for a temporary period) or pursuant to which any right in a contract governing such obligations
may be deemed to have been exercised (and a reference to the “relevant U.K. authority” is to any authority
with the ability to exercise a U.K. bail-in power).

 

By its acquisition of Notes each Holder
(including each Beneficial Owner) of the Notes:

 

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

 

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

 

(c)       acknowledges
and agrees that, upon the exercise of any U.K. bail-in power by the relevant U.K. authority, (a) the Trustee shall not be required
to take any further directions from Holders of the Notes under Section 5.12 of the Indenture, and (b) neither the Base Indenture
nor this Seventh Supplemental Indenture shall impose any duties upon the Trustee whatsoever with respect to the exercise of any
U.K. bail-in power by the relevant U.K. authority.

 

Notwithstanding the foregoing, if, following
the completion of the exercise of the U.K. bail-in power by the relevant U.K. authority, the Notes remain outstanding (for example,
if the exercise of the U.K. bail-in power results in only a partial write-down of the principal of the Notes), then the Trustee’s
duties under the Indenture shall remain applicable with respect to the Notes following such completion to the extent that the Company
and the Trustee shall

 

    A-17 

     

    

agree
pursuant to a supplemental indenture or an amendment to the Seventh Supplemental Indenture.

 

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

 

By its acquisition of Notes, each Holder
and Beneficial Owner shall be deemed to have:

 

(i)           
consented to the exercise of any U.K. bail-in power as it may be imposed without any prior notice by the relevant U.K. authority
of its decision to exercise such power with respect to the Notes; and

 

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

 

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

 

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

 

If the Company has elected to redeem Notes
of this series but prior to the payment of the redemption amount with respect to such redemption the relevant U.K. authority exercises
its U.K. bail-in power with respect to any Notes, the relevant redemption notices shall be automatically rescinded and shall be
of no force and effect, and no payment of the redemption amount will be due and payable.

 

Any Holder (including each Beneficial Owner)
that acquires Notes in the secondary market shall be deemed to acknowledge and agree to be bound by and consent to the same provisions
specified in the Indenture to the same extent as the

 

    A-18 

     

    

Holders
and Beneficial Owners of the Notes that acquire the Notes upon their initial issuance, including, without limitation, with respect
to the acknowledgement and agreement to be bound by and consent to the terms of the Notes related to the U.K. bail-in power.

 

This Note will be governed by the laws of
the State of New York except that the subordination provisions and the waiver of the right to set-off by the Holders and by the
Trustee acting on behalf of Holders contained herein will be governed by the laws of Scotland.

 

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

 

 

 

    A-19

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