Document:

Document

Exhibit 10.5

EMPLOYMENT AGREEMENT

This Employment Agreement (“Agreement”) is hereby made between Cantaloupe, Inc. a Pennsylvania corporation (“Company”), and Ravi Venkatesan (“Executive”).  Each of Company and Executive is a “Party” to this Agreement, and collectively are the “Parties” to this Agreement.

RECITALS

A.The Company is engaged in the business of cashless payments processing (“Business”).  

B.The Company desires to promote Executive to Chief Operating Officer of the Company and Executive desires to accept such promotion effective February 4, 2022 (“Effective Date”), subject to the terms and conditions of this Agreement.

AGREEMENT

NOW, THEREFORE, upon the foregoing premises, and for good and valuable consideration, the Company and Executive, intending to be legally bound, agree as follows:

1.Employment. Effective as of the Effective Date, the Company shall continue to employ Executive, and Executive shall accept such continued employment and perform services for the Company, upon the terms and conditions set forth in this Agreement.

2.Term of Employment. The term of Executive’s employment under this Agreement with the Company shall be for the period commencing on the Effective Date and continuing until terminated in accordance with Section 8 hereof. The period of Executive’s employment under this Agreement shall be the “Employment Term”.

3.Position and Duties.

(a)Employment with the Company. While Executive is employed by the Company during the Employment Term, Executive shall hold the position of Chief Operating Officer and shall report to the Company’s Chief Executive Officer (“CEO”).  Executive shall perform such duties and responsibilities for the Company and its Affiliates consistent with his position and as may otherwise be established from time to time by the CEO, but in all cases consistent with the duties and responsibilities associated with the chief operating officer and chief technology officer positions for companies of comparable size and nature.  Such duties and positions may include service as an officer or director of the Company or its Affiliates, which duties shall be performed without additional compensation. For purposes of this Agreement, “Affiliate” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, or an unincorporated organization, that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company. 
(b)Performance of Duties and Responsibilities. During the Employment Term Executive shall serve the Company faithfully and to the best of his ability and shall devote his full working time, attention and efforts to the business of the Company. Executive will follow and comply with applicable policies and procedures adopted by the Company from time to time, including without limitation the Company’s Code of Business Ethics and other policies relating to business ethics, conflict of interest, non-discrimination and non-harassment, confidentiality and protection of trade secrets. Executive will not engage in other employment or other material 

business activity. During his employment with the Company, Executive may participate (i) in civic, religious and charitable activities and personal investment activities, in each case subject to Board approval and (ii) as a member of the board of directors (or similar governing body) of up to two (2) outside companies identified to the CEO (with any further such outside positions to be subject to pre-approval by the CEO in his or her discretion), in each case to a reasonable extent, so long as such activities do not interfere with the performance of his duties and responsibilities hereunder nor conflict with Executive’s obligations hereunder (including, without limitation, Executive’s obligations under Section 10 below).
(c)Work Location. During the Employment Term, Executive’s primary place of work will be Atlanta, Georgia. 
4.Compensation.
(a)Base Salary. During the Employment Term, the Company shall pay to Executive a base salary for services at the annual rate of $384,000 (“Base Salary”), which Base Salary shall be paid in accordance with the Company’s normal payroll procedures and policies, as such procedures and policies may be modified from time to time. The Base Salary shall be reviewed and adjusted in the sole discretion of the Board’s Compensation Committee (“Committee”).  
(b)Annual Incentive Compensation. Executive will be eligible to earn an annual incentive bonus with a target opportunity equal to 50% of Executive’s Base Salary (the “Target Bonus”), pursuant to the terms and conditions of the Company’s Annual Incentive Plan (“AIP”) as in effect during the applicable period. Except as otherwise expressly set forth in this Agreement, Executive must be employed on the date of payment to be eligible to receive any annual incentive bonus in respect of any applicable fiscal year.
(c)Equity Award. Executive shall be eligible to receive grants of equity and/or equity-based awards in the sole discretion of the Committee and the Board under the Company’s then-current equity plan, subject to the terms and conditions of such plan and an award agreement issued thereunder (including, without limitation, vesting and forfeiture conditions).
(d)Employee Benefits. During the Employment Term, Executive shall be entitled to participate in each employee benefit plan and program of the Company, including health, dental, vision, long-term disability and life insurance, and deferred compensation plans, and annual executive physical examinations, to the extent that Executive meets the eligibility requirements for such individual plan or program. The benefit programs may be changed, amended, or terminated from time-to-time in the discretion of the Company, and the Company makes no assurances of the continuation of any particular benefit plans or programs. 
(e)Paid Time Off.  During the Employment Term, Executive will be entitled to 18 business days of paid time off during each year of service with the Company, to be accrued and used in accordance with the Company’s policies as in effect from time to time. Employee will use paid time off at times and in a manner so as to minimize disruption to the operations of the Company.  
(f)Expenses. During the Employment Term, the Company shall reimburse Executive for all reasonable and necessary out-of-pocket business, travel and entertainment expenses incurred by him in the performance of his duties and responsibilities hereunder, subject to the Company’s normal policies and procedures for expense verification and documentation.  Extraordinary and recurring expenses will require prior authorization from the CEO.
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5.Confidential Information.
(a)Definition of Confidential Information.  For purposes of this Agreement, “Confidential Information” means any information in any form related to the Business, that the Company has not made public and that is not generally known to the public, including, without limitation, information relating to the operations, research, development, manufacturing, accounting, purchasing, finances, forecasting, performance, engineering, human resources, customers, vendors, sales, marketing, strategy, future plans and other proprietary matters of the Company and its Affiliates, and information that is entrusted to the Company or its Affiliates in confidence by third parties (“Confidential Information”).  
(b)Duty Not to Disclose. During Executive’s employment with the Company and at all times thereafter, except as expressly permitted by the Board in writing, Executive shall keep confidential and not disclose, divulge, furnish or make accessible to anyone or use in any way or form, other than in the ordinary course of the business of the Company, any Confidential Information. Executive shall take reasonable steps to protect the confidentiality of Confidential Information and shall refrain from any acts or omissions that would reduce the value of Confidential Information to the Company or any of its Affiliates.  
(c)Acknowledgement. Executive acknowledges that the Confidential Information constitutes a unique and valuable asset of the Company and its Affiliates and represents a substantial investment of time and expense by the Company and its Affiliates, and that any disclosure or other use of such knowledge or information other than for the sole benefit of the Company would be wrongful and would cause irreparable harm to the Company and its Affiliates. The Parties acknowledge and agree that Executive’s obligations under this Agreement to maintain the confidentiality of the Confidential Information are in addition to any obligations of Executive under applicable statutory or common law.
(d)Exceptions. The foregoing obligations of confidentiality shall not apply to any Confidential Information to the extent that it (i) is now or subsequently becomes generally publicly known or generally known in the industry in which the Company operates in the form in which it was obtained from the Company (or its applicable Affiliate), (ii) is independently made available to Executive in good faith by a third party who has not violated an obligation of confidentiality to the Company or any of its Affiliates, or (iii) is required to be disclosed by legal process, but solely for such purpose and in which case before making any disclosure Executive shall first notify the Company that he believes he is required to disclose Confidential Information pursuant to legal process and allow the Company reasonable time to oppose such disclosure. Notwithstanding any other provision of this Agreement, Executive understands that he may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (x) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney if such disclosure is made solely for the purpose of reporting or investigating a suspected violation of law or for pursuing an anti-retaliation lawsuit; or (y) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and Executive does not disclose the trade secret except pursuant to a court order.  In addition, nothing in this Agreement shall prohibit Executive from reporting possible violations of federal law or regulation to or otherwise cooperating with or providing information requested by any governmental agency or entity, including, but not limited to, the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures or receiving an award for information provided to any governmental agency or entity, in each case that are protected under the whistleblower provisions of federal law or regulation.  Executive does not need the prior authorization of the Company to make any such reports or disclosures described in the preceding sentence and is not required to notify the Company that Executive has made such reports or disclosures.
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6.Ventures. If, during Executive’s employment with the Company, Executive is engaged in or associated with the planning or implementation of any project, program or venture involving the Company (or any of its Affiliates) and a third party or parties, all rights in such project, program or venture shall belong to the Company. Except as approved in writing by the Board, Executive shall not be entitled to any interest in any such project, program or venture or to any commission, finder’s fee or other compensation in connection therewith, other than the compensation to be paid to Executive by the Company as provided herein. Executive shall have no interest, direct or indirect, in any customer or supplier that conducts business with the Company (or any of its Affiliates), unless such interest has been disclosed in writing to and approved by the Board in writing before such customer or supplier seeks to do business with the Company (or any of its Affiliates). Ownership by Executive, as a passive investment, of less than 1.0% of the outstanding shares of any class of stock that is regularly traded on a recognized domestic or foreign securities exchange or over-the-counter market shall not constitute a breach of this Section 6.  
7.Patents, Copyrights and Related Matters.
(a)Disclosure and Assignment. Executive shall immediately disclose to the Company any and all improvements, discoveries, processes, know-how, trade-secrets and inventions (“Discoveries”) that Executive may conceive and/or reduce to practice individually or jointly or commonly with others while he is employed with the Company or any of its Affiliates.  Executive agrees to assign and does hereby immediately assign, transfer and set over to the Company his entire right, title and interest in and to any and all Discoveries, and in and to any and all intellectual property rights thereto.  Executive agrees to execute all instruments deemed necessary by the Company to protect and perfect rights in and to the Discoveries.  This Section 7(a) shall not apply to any Discoveries for which no equipment, supplies, facilities, confidential, proprietary or secret knowledge or information, or other trade secret information of the Company or any of its Affiliates was used and that was developed entirely on Executive’s own time, and (i) that does not relate (A) directly to the business of the Company or any of its Affiliates, or (B) to the Company’s or any Affiliate’s actual or demonstrably anticipated research or development, or (ii) that does not result from any work performed by Executive for the Company or any of its Affiliates.
(b)Copyrightable Material. Executive agrees to assign and does hereby assign to the Company all right, title and interest in all copyrightable material (including intellectual property rights therein) that Executive conceives or originates individually or jointly or commonly with others, and that arise during his employment with the Company or any of its Affiliates and out of the performance of his duties and responsibilities under this Agreement.  Executive shall execute any and all papers and perform all other acts necessary to assist the Company to obtain and register copyrights on such materials.  Where applicable, works of authorship created by Executive for the Company or any of its Affiliates in performing his duties and responsibilities hereunder shall be considered “works made for hire,” as defined in the U.S. Copyright Act.
8.Termination of Employment.
(a)Executive’s employment with the Company and the Employment Term shall terminate immediately upon:
(i)Executive’s receipt of written notice from the Company of the termination of Executive’s employment with or without Cause (or effective on such later date specified in such written notice from the Company);
(ii)Executive’s abandonment of employment or resignation with or without Good Reason;
(iii)Executive’s Disability (as defined below); or
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(iv)Executive’s death. 
(b)The date upon which Executive’s termination of employment with the Company is effective is the “Termination Date.” For purposes of Section 9 of this Agreement only, with respect to the entitlement to and timing of any payments thereunder, the Termination Date shall mean the date on which a “separation from service” has occurred for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance thereunder (“Code”). Upon receipt of any notice from Executive of his intended resignation, the Company may in its sole discretion relieve Executive of some or all duties, responsibilities and/or positions hereunder. 
9.Payments upon Termination of Employment.
(a)Except as provided in Section 9(h) below, if Executive’s employment with the Company is terminated (i) by the Company without Cause or (ii) by Executive for Good Reason, then, subject to Section 9(g) below, and in addition to the Earned Amounts (as defined below), the Company shall provide Executive:
(i)Cash severance in an amount equal to six (6) months of the Base Salary in effect on the Termination Date (without giving effect to any reduction that is the basis for Executive’s resignation for Good Reason), payable in equal installments following the effective date of the release described in Section 9(g) over the Severance Period (defined below) in accordance with the Company’s regular payroll practices; provided, that if the sixty (60) day period described in Section 9(g) spans two calendar years, then such payments shall commence in the second calendar year (and the first payment in such second calendar year shall include all payments described in this clause (i) that would have been paid absent this proviso); and
(ii)    If Executive is eligible for and takes all steps necessary to continue his and his eligible dependent’s group health insurance coverage with the Company following termination of employment with the Company, the Company will pay for the COBRA premium costs for such coverage, at the same level of coverage that was in effect as of the Termination Date, after the Termination Date for the duration of the Severance Period, or such earlier date COBRA coverage is no longer available to Executive under applicable law or plan.
(b)If Executive’s employment with the Company is terminated for any reason other than under circumstances provided in Section 9(a) above, the Company shall pay to Executive or his beneficiary or his estate, as the case may be only any accrued but unpaid Base Salary and the amount of any other benefits to which Executive is legally entitled as of the Termination Date under the terms and conditions of any benefit plans of the Company in which Executive is participating as of the Termination Date (including, unless such termination of employment is for Cause, any earned but unpaid AIP bonus for the prior fiscal year) (“Earned Amounts”).  For the avoidance of doubt, no severance or benefits (other than the Earned Amounts) will be payable to Executive in connection with a termination of employment by reason of: (i) Executive’s abandonment of his employment or resignation other than for Good Reason; (ii) termination of Executive’s employment by the Company for Cause; or (iii) Executive’s death or Disability.  The foregoing terms do not waive or compromise or limit any other rights of the Company that may arise from Executive’s conduct that constitutes Cause for termination.
(c)“Cause” hereunder shall mean that one of the following events or conditions has occurred during the Employment Term:
(i)willful act or acts of dishonesty undertaken by Executive that result in substantial gain or personal enrichment of Executive at the expense of the Company, or 
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misappropriation of assets or business opportunities, embezzlement, or fraud committed (or committed at the direction of) or attempted by the Executive; 
(ii)unlawful conduct, gross misconduct, or gross negligence on Executive’s part, that is or is reasonably likely to be injurious to the business, finances or reputation of the Company; 
(iii)the conviction or indictment of Executive of, or plea of guilty or no-contest by Executive to, a misdemeanor involving moral turpitude or a felony; 
(iv)willful failure or refusal by Executive to perform in any material respect Executive’s duties and responsibilities to the Company; or
(v)material breach by Executive of any terms, conditions or representations of this Agreement, any other written agreement with the Company, or of any written policies of the Company, which failure or breach, if curable, has not been cured by Executive to the reasonable satisfaction of the Board within thirty (30) days after written notice thereof to Executive from the Company.
Executive’s termination for Cause shall be effective when approved at a meeting of the Board (excluding Executive) based upon its determination that Executive engaged in an act or omission that constitutes Cause, and the Board shall cause a written notice to Executive of that determination and of the consequent termination of the Executive for Cause.
(d)“Disability” hereunder shall have the meaning set forth in the Company’s group long-term disability plan applicable to Executive for purposes of eligibility for long-term disability benefits; provided, if no such plan or definition exists, then “Disability” shall mean the inability of Executive to perform on a full-time basis the duties and responsibilities of his position with the Company by reason of his illness or other physical or mental impairment or condition, if such inability continues for an uninterrupted period of 60 days, or for more than 90 days during any 180-day period.  A period of inability shall be “uninterrupted” unless and until Executive returns to full-time work for a continuous period of at least thirty 30 days.
(e)“Good Reason” hereunder shall mean the occurrence of any of the following without Executive’s consent and not caused by Executive: 
(i)the assignment of Executive to any position other than chief operating officer, or any action that causes a material and continuing diminution in Executive’s position, authority, duties or responsibilities as chief operating officer, excluding any diminution attributable solely to the fact that the Company is no longer a public company; 
(ii)any material reduction in Executive’s Base Salary or Target Bonus; 
(iii)any material breach of this Agreement by the Company, including but not limited to a requirement that Executive report to anyone other than the CEO or the failure of any successor to all or substantially all of the business or assets of the Company to assume this Agreement in writing (other than in the case of merger by which transfer of this Agreement occurs by operation of law); or
(iv)a requirement that Executive relocate his primary work location(s) by more than 50 miles (and that increases Executive’s one-way commute to such location(s));
provided, however, that such events shall constitute Good Reason only if :(A) within thirty (30) days following the occurrence of an event claimed to constitute Good Reason, Executive gives the 
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Company written notice of such event with an express contention that such event constitutes Good Reason under this Agreement, (B) the Company fails to cure such event within thirty (30) days after receipt of such written notice, and (C) the effective date of Executive’s termination of employment is within ninety (90) days following expiration of such cure period.
(f)In the event of termination of Executive’s employment, the sole obligation of the Company shall be its obligation to make the payments called for by Section 9(a) or Section 9(b) hereof, as the case may be, and the Company shall have no other obligation to Executive or to his beneficiary or his estate, except as specifically provided under the terms of any employee benefit plans or programs maintained by the Company in which Executive then participates or any other written agreement between Executive and the Company.  
(g)Notwithstanding the foregoing provisions of this Section 9, the Company shall not be obligated to make any payments to Executive under Sections 9(a) or 9(h) hereof unless Executive has signed, returned to the Company, and not revoked a release of claims in favor of the Company in a form acceptable to the Company, that has become fully effective and irrevocable in accordance with its terms within sixty (60) days following the Termination Date, and Executive is in material compliance with the terms of this Agreement and such release as of the applicable payment dates.
(h)Notwithstanding any other provision of this Agreement, if Executive’s employment with the Company is terminated upon or within twenty-four (24) months following a Change of Control either (i) by the Company without Cause or (ii) by Executive for Good Reason, then, in addition to the Earned Amounts, and in lieu of any payments or benefits under Section 9(a) above and subject to Section 9(g) above, the Company shall pay to Executive an amount equal to the sum of Executive’s annual Base Salary (without giving effect to any reduction that is the basis for Executive’s resignation for Good Reason) plus the cash bonus paid to Executive under the AIP for the last fiscal year of the Company completed prior to the Termination Date, each as in effect as of the Termination Date. Such amount shall be payable in a lump sum not later than 30 days following the effective date of the release of claims provided in Section 9(g).  In addition, upon the occurrence of a Change of Control, any then-outstanding and unvested portion of the Equity Award shall immediately vest, subject to Executive’s continued employment with the Company as of immediately prior to the Change of Control in accordance with the Award Agreement.
(i)“Change of Control” shall have the meaning given to such term in the Company’s 2018 Equity Incentive Plan, as amended (or any successor plan). With respect to any amount that is non-qualified deferred compensation subject to Section 409A that becomes payable upon or in connection with the occurrence of a Change of Control, a transaction shall not be considered to constitute a Change of Control unless it also constitutes a change in control event for purposes of Section 409A, and any transaction that constitutes a change in control event for purposes of Section 409A shall be considered a Change of Control.
(j)Notwithstanding anything in this Agreement or any written or unwritten policy of the Company to the contrary, (i) if it shall be determined that any payment, benefit, or distribution by the Company to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, any other agreement between the Company and Executive or otherwise (a “Payment” or “Payments”),  would constitute a parachute payment (“Parachute Payment”) within the meaning of Section 280G of the Code and would, but for this Section 9(j), be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”), then prior to making the Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) to the Executive of the Payments after payment of the Excise Tax to (ii) the Net Benefit to Executive if the Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i) above is less than the amount under (ii) above will the 
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Payments be reduced to the minimum extent necessary to ensure that no portion of the Payments is subject to the Excise Tax. “Net Benefit” shall mean the present value of the Payments net of all federal, state, local, foreign income, employment and excise taxes. The Payments shall be reduced in a manner that maximizes Executive’s economic position. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code, and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero. Any determination required under this Section 9(j), including whether any payments or benefits are Parachute Payments, shall be made by a nationally-recognized accounting firm retained by the Company after consultation with Executive and his advisers. Executive shall provide the Company with such information and documents as the Company may reasonably request to enable the accounting firm to make the determination required by this Section 9(j).   The accounting firm’s determination shall be final and binding on the Company and Executive. 
10.Non-Competition/Non-Solicitation.  Executive acknowledges that the Company has spent significant time, effort and resources protecting its Confidential Information, including, without limitation, its trade secrets, customer goodwill, and employee, supplier, and vendor relationships. During his employment, Executive will have access to the Company’s Confidential Information, and will have significant control and influence over the Company’s customers, suppliers, vendors and employees.  In order to protect the Company’s Confidential Information, trade secrets, customer goodwill and the stability of the Company’s workforce, and other legitimate business interests, Executive agrees to the following covenants: 
(a)    Non-Competition. During Executive’s employment with the Company or any Affiliate and for a period of two (2) years following the termination of such employment, whether initiated by Executive or the Company, Executive shall not, either directly or indirectly on behalf of himself or any third party, own, operate, lend money to, be a guarantor for, consult with, license intellectual property to, render services as an employee or otherwise to, be a director or officer of (or hold a position similar to a director or officer of), act as agent for, or acquire or hold any interest in or otherwise invest in any person or entity that engages in any business that competes with any segment, division or portion of the Business or any other business then engaged in by the Company or any Affiliates from time to time (including such products and services similar to or competitive with any products or services being developed, produced and/or sold by the Company or any of its Affiliates after the date of this Agreement), in whole or in part, anywhere in the Restricted Area. For purposes of this Agreement, “Restricted Area” means North America and any other geographic location where the Company conducts the Business, or is actively planning to conduct the Business, as of the Termination Date. 

Notwithstanding the foregoing, nothing in this Section 10(a) prohibits or otherwise restricts Executive from (i) passively owning or holding less than 1% of the outstanding shares of any class of stock that is regularly traded on a recognized domestic or foreign securities exchange or over the counter market, (ii) investing in hedge or private equity funds or other similar alternative investment vehicles as long as such investment represents less than 2% of the equity interests in any such fund or vehicle and Executive does not play any active role in the activities of the fund or vehicle, (iii) providing services to an entity that does compete with the Business within the meaning of the foregoing paragraph as long as the competitive lines of business represent in the aggregate less than 10% of the revenue of such entity and Executive does not supervise such lines of business at less than two levels above the active day-to-day operations of the lines of business that compete with the business of the Company, or (iv) providing services to an entity that does compete with the Business in excess of the revenue threshold set forth in sub-clause (iii), provided that Executive is employed in a division, unit or operating segment of such business that is not directly or indirectly involved in any competitive line of business, Executive has no supervisory or operational responsibility for such competitive line(s) of business, and Executive and the new employer each provide written assurances reasonably satisfactory to the Company describing 
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Executive’s expected role and confirming that Executive will not have involvement in or responsibility for such competitive line(s) of business.

(b)    Non-Solicitation of Customers and Suppliers. During Executive’s employment with the Company or any Affiliate and for a period of two (2) years following the termination of such employment, whether initiated by Executive or the Company, Executive shall not, either directly or indirectly on behalf of himself or any third party: (i) call on or solicit any customers or prospective customers for the purpose of marketing or selling any products or services that are directly competitive with products or services offered by the Company and its Affiliates, or for the purpose of diverting to a competitor of the Company and its Affiliates any business from the Company or any of its Affiliates; (ii) persuade or attempt to persuade, or induce or attempt to induce, any actual or prospective customer, or actual client, vendor, service provider, supplier, contractor or any other person having material business dealings with the Company or any of its Affiliates to cease doing business or otherwise transacting business with the Company or any of its Affiliates or to reduce the amount of business it conducts or will conduct with the Company; (iii) call on or solicit any material suppliers of the Company or any of its Affiliates; or (iv) otherwise interfere with the relationship between the Company or any Affiliate and its actual or prospective customers, or clients, vendors, service providers, or suppliers.  Executive acknowledges that the Company has invested material time and resources in the identification and qualification of its customers and/or suppliers and that the identity, nature and details of its relationships with customers and/or suppliers are unique and proprietary.  For purposes of this Agreement, a “prospective customer” means (i) any person solicited by Executive on behalf of the Company for any purpose relating to the Business at any time during Executive’s employment with the Company, and in the case of termination, within the twelve (12) month period immediately preceding the Termination Date and (ii) any person solicited by the Company with Executive’s knowledge for any purpose relating to the Business at any time during Executive’s employment with the Company, and in the case of termination, within the twelve (12) month period immediately preceding the Termination Date. 

(c)    Non-Solicitation/No-Hire of Employees.  During Executive’s employment with the Company or any Affiliate and for a period of two (2) years following the termination of such employment, whether initiated by Executive or the Company, Executive shall not, either directly or indirectly on behalf of himself or any third party, hire, employ, engage, or attempt to employ or engage any individual who is then a director or officer (or individual holding a similar position) or employee of the Company or any of its Affiliates, or who at any time during the one-year period prior to the Termination Date was an employee of the Company or any Affiliate, or otherwise solicit, request, advise or induce any such employee of the Company or any Affiliate to terminate or otherwise adversely change its relationship with the Company or any Affiliate.  The foregoing will not prohibit Executive from (i) soliciting or hiring any individual who served at any time during the Employment Term as Executive’s personal secretary and/or assistant, (ii) following Executive’s termination from employment with the Company, serving solely as a reference for any employee of the Company as long as in serving as a reference Executive does not take any actions that encourages such employee to terminate the employee’s employment with the Company, (iii) encouraging an employee to leave employment with the Company in the good faith performance of Executive’s duties to the Company, for example, as part of Executive’s responsibility to terminate an employee’s employment, or (iv) general advertisement or solicitation for employment that is not specifically directed at employees of the Company (provided, Executive does not hire such a person).  
(d)    Reasonableness of Covenants. Executive agrees that the scope and duration of Section 10 are reasonable and necessary to protect the Company’s legitimate business interests.  If, at any time, any term or provision contained in Section 10 is finally adjudicated by a court or arbitrator of competent jurisdiction as invalid or unenforceable, the Parties hereby agree that the court or arbitrator making this determination will have the power to reform the scope and/or duration of the term or provision to delete specific words or phrases, or to replace any invalid or 
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unenforceable term or provision with a term or provision that is valid and enforceable which comes closest to expressing the intention of the invalid or unenforceable term or provision; and that such reformation will not impact the other provisions of this Agreement and will be enforceable as so modified.  

11.Non-Disparagement. During Executive’s employment with the Company or any Affiliate and at all times thereafter, to the fullest extent permitted by law, Executive shall not make any statement that is disparaging or reflects negatively upon the Company or its Affiliates, or any of their officers, directors or employees, to, or that is likely to come to the attention of, (a) any customer, vendor, supplier, distributor or other trade related business relation of the Company or any of its Affiliates, (b) any employee of the Company or its Affiliates, or (c) the media, or any member thereof. Nothing in this Section 11 shall or shall be deemed to prevent or impair Executive from (i) pleading or testifying, to the extent that he or she reasonably believes such pleadings or testimony to be true, in any legal or administrative proceeding if such testimony is compelled or requested, (ii) otherwise complying with legal requirements, (iii) enforcing any rights under this Agreement, or (iv) taking any action Executive in good faith believes to be necessary or appropriate in fulfilling his fiduciary responsibilities to the Company or any Affiliate.

12.Other Post-Termination Obligations.

(a)Resignation from Positions. Immediately upon termination of Executive’s employment with the Company for any reason, Executive will resign from all positions then held as a director, officer or employee of the Company or its Affiliates.
(b)Return of Property. Upon termination of his employment with the Company, or at such earlier time requested by the Company, Executive shall promptly deliver to the Company any and all records and property of the Company or its Affiliates in his possession or under his control, including without limitation manuals, books, blank forms, documents, letters, memoranda, notes, notebooks, reports, printouts, computer disks, computer tapes, source codes, data, digital media, tables or calculations and all copies thereof, documents that in whole or in part contain any trade secrets or confidential, proprietary or other secret information of the Company or any of its Affiliates, and all copies thereof, and keys, vehicles, access cards, access codes, passwords, credit cards, personal computers, telephones and other electronic equipment belonging to the Company or any of its Affiliates; provided, however, that Executive may retain a copy of information solely relating to his personal employment terms and arrangements with the Company. 
(c)Cooperation. Following termination of Executive’s employment with the Company for any reason, Executive will, upon reasonable request of the Company or its designee, respond to inquiries and cooperate with the Company in connection with the transition of his duties and responsibilities for the Company; consult with the Company regarding business matters that he was directly and substantially involved with while employed by the Company; and be reasonably available, with or without subpoena, to be interviewed, review documents or things, give depositions, testify, or engage in other reasonable activities in connection with any litigation or investigation, with respect to matters that Executive then has or may have knowledge of by virtue of his employment by or service to the Company or any of its Affiliates. In connection with such cooperation requested by the Company, the Company shall reimburse Executive for reasonable out-of-pocket costs incurred as a result of his compliance with his obligations. 
(d)Indemnification. Executive shall be entitled to indemnification to the fullest extent permitted by the Company’s governing documents and applicable law. Upon termination of Executive’s employment, the Company will provide indemnification and insurance defense in the same manner and to the same extent as provided to other former officers and directors of the Company. 
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13.Remedies.
(a)Remedies. Executive acknowledges that it would be difficult to fully compensate the Company for monetary damages resulting from any breach by him of the provisions of Sections 5, 6, 7, 10, 11 or 12 hereof. Accordingly, in the event of any actual or threatened breach of any such provisions, the Company shall, in addition to any other remedies it may have, be entitled to injunctive and other equitable relief to enforce such provisions, and such relief may be granted without the necessity of proving actual monetary damages. 
(b)Dispute Resolution. Except as provided in the last sentence of this Section 13(b), in the event of any dispute between Executive and the Company relating to this Agreement or Executive’s employment hereunder, before proceeding with any legal claim or process Executive agrees to first notify the Board in writing of the existence and nature of the dispute and to enter into discussions in good faith to resolve such dispute. In the event that the Parties are unable to resolve such dispute within thirty (30) days after written notice of the dispute was first given, either party may proceed with such claim in any other manner permitted by law.  This Section 13(b) does not affect any rights that Executive or the Company may have in law or equity to immediately seek emergency or temporary injunctive and other equitable relief.
14.Miscellaneous.
(a)Taxes. The Company will deduct or withhold from any payment made or benefit provided hereunder all federal, state and local taxes which the Company is required or authorized by law to deduct or withhold therefrom or otherwise collect in connection with the wages and benefits provided in connection with Executive’s employment with the Company. This Agreement and the payments and benefits provided hereunder are intended to satisfy, or be exempt from, the requirements of Section 409A of the Code, including current and future guidance and regulations interpreting such provisions (“Section 409A”), to the maximum extent possible, whether pursuant to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4), the involuntary separation pay plan exception described in Treasury Regulation Section 1.409A-1(b)(9)(iii), or otherwise. To the extent Section 409A is applicable to this Agreement or the payments or benefits provided hereunder, it is intended that this Agreement and such payments and benefits comply with the deferral, payout and other limitations and restrictions imposed under Section 409A. Notwithstanding anything in this Agreement to the contrary, this Agreement and the payments and benefits provided hereunder shall be interpreted, operated and administered in a manner consistent with such intentions. Without limiting the generality of the foregoing, if and to the extent required to comply with Section 409A, (i) each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments; (ii) any expenses eligible for reimbursement in one taxable year shall not affect the expenses eligible for reimbursement in any other taxable year, the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred, and the right to reimbursement shall not be subject to liquidation or exchange for another benefit; and (iii) no payment or benefit required to be paid under this Agreement on account of a termination of Executive’s employment shall be made unless and until Executive incurs a “separation from service” within the meaning of Section 409A. If Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i), then to the extent necessary to avoid subjecting Executive to the imposition of any additional tax under Section 409A, amounts that would otherwise be payable under this Agreement during the six-month period immediately following a “separation from service” within the meaning of Section 409A(a)(2)(A)(i) shall not be paid during such period, but shall instead be accumulated and paid in a lump sum on the first business day following the earlier of (a) the date that is six months after the separation from service or (b) Executive’s death.
(b)Jurisdiction and Venue. Executive and the Company consent to jurisdiction of the courts of the State of Delaware and/or the federal district courts of the District of Delaware 
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for the purpose of resolving all issues of law, equity, or fact, arising out of or in connection with this Agreement. Any action involving claims for interpretation, breach or enforcement of this Agreement shall be brought in such courts.  Each party consents to personal jurisdiction over such party in the state and/or federal courts of Delaware and hereby waives any defense of lack of personal jurisdiction or inconvenient forum.
(c)Waiver of Jury Trial.  To the fullest extent permitted under applicable law, Executive and the Company expressly waive any and all rights to a jury trial with respect to any dispute arising out of or in connection with this Agreement.
(d)Governing Law.  All matters relating to the interpretation, construction, application, validity and enforcement of this Agreement shall be governed by the laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule, whether of the State of Delaware or any other jurisdiction, that would cause the application of laws of any jurisdiction other than the State of Delaware. 
(e)Entire Agreement. This Agreement contains the entire agreement and understanding of the Parties concerning the subject matter hereof. The Parties hereto have made no agreements, representations or warranties relating to the subject matter of this Agreement that are not set forth herein.  
(f)Amendments. No amendment or modification of this Agreement shall be deemed effective unless made in writing and signed by the Parties hereto. 
(g)No Waiver. No term or condition of this Agreement shall be deemed to have been waived, except by a statement in writing signed by the party against whom enforcement of the waiver is sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived. 
(h)Assignment. Neither party may, without the written consent of the other, assign or delegate any of its rights or obligations under this Agreement, except that the Company may, without the consent of Executive, assign or delegate any of its rights or obligations under this Agreement to (i) any corporation or other business entity with which the Company may merge or consolidate, (ii) any corporation or other business entity to which the Company may sell or transfer all or substantially all of its assets or capital stock or equity, or (iii) any Affiliate. The Company shall require any successor to all or substantially all of the business or assets of the Company to acknowledge and assume this Agreement in writing. Upon such assignment and assumption, the Company shall be discharged from all further liability hereunder and such assignee shall thereafter be deemed to be the “Company” for purposes of all terms and conditions of this Agreement, including this Section 14. If the Company fails to obtain assumption of this Agreement from any successor in writing or by operation of law, the Company will remain bound by this Agreement. 
(i)Representations, Warranties and Covenants. Executive hereby represents and confirms that he is under no contractual or legal commitments that would prevent him from fulfilling his duties and responsibilities as set forth in this Agreement, including without limitation any employment, consulting, confidentiality, non-competition, trade secret or similar agreement to which Executive is a party, nor any judgment, order, decision or decree to which Executive is subject. Executive warrants he is free to enter into this Agreement and to perform the services contemplated herein. Executive is not currently (and will not, to the best knowledge and ability of Executive, at any time during employment with the Company be) subject to any conflicting agreement, understanding, obligation, claim, litigation or condition from any third party. Executive further agrees and covenants that he will not improperly use or disclose in connection with Executive’s employment with the Company any confidential, proprietary or trade secret information of any former employer or third party, and will not bring onto Company premises or 
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copy onto Company equipment or systems any unpublished documents, data or information of any former employer or third party. 
(j)Survival. The provisions of this Agreement that by their terms or implications extend beyond the Employment Term, including without limitation Sections 5, 6, 7, 9, 10, 11, and 12 of this Agreement, shall survive the termination of the Employment Term and of Executive’s employment with the Company for any reason.
(k)Counterparts. This Agreement may be executed in two counterparts and delivered by facsimile or other means of electronic communication, each of which shall be deemed an original but both of which shall constitute but one instrument.
(l)Notices. All notices, requests, demands or other communications required by or otherwise with respect to this Agreement shall be in writing and shall be deemed to have been duly given to the other party on the date delivered when delivered personally, on the date delivered by email if receipt of the message is acknowledged or proven, one (1) business day following the date when sent by nationally recognized overnight delivery service for next business day delivery, provided in each case such notice is properly addressed to the applicable addresses set forth below (or such other address as such party may indicate by notice given pursuant to this Section 14(l)):
If to the Company:
Cantaloupe, Inc.
Attention: Chair, Board of Directors 
Attention: General Counsel
100 Deerfield Lane, #300
Malvern, Pennsylvania 19355
Email: legal@cantaloupe.com 

If to Executive:
At the last known address and email address in the personnel records of the Company.

(m)Severability. To the extent that any portion of any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted herefrom and the remainder of such provision and this Agreement shall be unaffected and shall continue in full force and effect. 
(n)Captions and Headings. The captions and paragraph headings used in this Agreement are for convenience of reference only and shall not affect the construction or interpretation of this Agreement or any of the provisions hereof. 
Signature page follows
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IN WITNESS WHEREOF, the undersigned have executed this Employment Agreement as of the date set forth above.

CANTALOUPE, INC.

/s/ Sean Feeney
By: Sean Feeney
Its: Chief Executive Officer

EXECUTIVE

/s/ Ravi Venkatesan
Ravi Venkatesan

[Signature Page to Venkatesan Employment Agreement]Exhibit
4.1

 

BYLAWS OF BANCO SANTANDER,
S.A.

 

CHAPTER I. THE COMPANY AND
ITS CAPITAL

 

Section 1. Name of the Company

 

Article 1. Corporate name

 

The name of the Company is BANCO
SANTANDER, S.A. (hereinafter, the “Bank”
or the “Company”).

 

The Bank was founded in the city
for which it was named, by means of a public instrument executed on 3 March 1856 before notary public Mr. José Dou Martínez;
such public instrument was ratified and partially amended by another one dated 21 March 1857 and executed before notary public Mr. José
María Olarán, of the above-mentioned capital city.

 

As a result of the enactment of
the Decree-Law dated 19 March 1874, whereby the circulation of a single paper currency was established in Spain, the privilege of issuing
paper money which the Bank had and which it had exercised from the date it commenced operations expired. Thus, the Bank became a credit
company [“sociedad anónima de crédito”] pursuant to the provisions of the Law dated 19 October 1869.
Such credit company took over the assets and liabilities of what had been, until that time, an issuing Bank. All of the foregoing was
formalized by public instrument executed on 14 January 1875 before notary public Mr. Ignacio Pérez, of the City of Santander, which
public instrument was recorded in the Commercial Registry book of the Trade Promotion Section of the Government of the Province of Santander.

 

Article 2. Corporate purpose

 

		1.	The corporate purpose of the Company consists of:

 

		a)	The conduct of activities and operations and the provision of services of any kind
which are typical of the banking business in general and which are permitted under current law.

 

		b)	The acquisition, possession, enjoyment and disposition of all types of securities.

 

    1 
 
	This document is a translation of an original text in Spanish. In case of any discrepancy between both texts, the Spanish version will prevail.

 

    
 

    

 

		2.	The activities that make up the corporate purpose may be carried out totally or
partially in an indirect manner, in any of the manners permitted by Law and, in particular, through the ownership of shares or the holding
of interests in Companies whose purpose is identical, similar, incidental or supplemental to such activities.

 

Article 3. Registered office and other offices

 

		1.	The registered office of the Bank is located in the city of Santander, Paseo de
Pereda, numbers 9-12.

 

		2.	The board of directors may resolve to change the location of the registered office
within the same municipal area.

 

Article 4. Commencement of activities and duration

 

		1.	The Company commenced its activities on 20 August 1857.

 

		2.	The duration of the Company is indefinite.

 

Section 2. Share capital
and shares

 

Article 5. Share capital

 

		1.	The share capital is 8,670,320,651 euros.

 

		2.	The share capital is represented by 17,340,641,302 shares having a nominal value
of fifty euro cents each, all of which belong to the same class and series.

 

		3.	All the shares have been fully paid-up.

 

Article 6. Form of the shares

 

		1.	The shares are represented in book-entry form and are governed by the Securities
Market Law [Ley del Mercado de Valores] and such other provisions as may be applicable.

 

    2 
 
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		2.	The book-entry registry of the Company shall be maintained by the entity or entities
charged by the law with such duty.

 

The entity in charge of the book-entry
registry shall notify the Bank of transactions involving the shares and the Bank shall keep its own stock ledger with the name of the
shareholders.

 

		3.	The person whose name appears as the holder in the entries in the records of the
entity in charge of the book-entry registry shall be deemed the legitimate holder thereof, and therefore, such person may request from
the Bank the benefits to which the shares entitle them.

 

		4.	In the event of persons or entities formally acting as shareholders under a fiduciary
agreement, trust, or any other similar title, the Bank may require such persons to provide the particulars of the beneficial owners of
the shares, as well as information regarding all acts entailing the transfer of such shares or the creation of liens thereon.

 

Article 7. Shareholders’ rights

 

		1.	Shares confer on the lawful holders thereof the status of shareholder and give them
the rights set forth in the law and in these bylaws and, specifically, the following:

 

		a)	The right to share in the distribution of corporate earnings and in the net assets resulting from liquidation.

 

		b)	The pre-emptive right to subscribe to the issuance of new shares or debentures convertible into shares.

 

		c)	The right to attend and vote at the General Shareholders’ Meetings and
to challenge corporate resolutions.

 

		d)	The right to receive information.

 

		2.	Shareholders shall exercise their rights vis-à-vis the Company with loyalty
and good faith.

 

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	This document is a translation of an original text in Spanish. In case of any discrepancy between both texts, the Spanish version will prevail.

 

    
 

    

 

		3.	In such manner as is set forth in legal and administrative provisions, the Company
shall not acknowledge the exercise of voting and related rights arising from interests in the Company held by persons who acquire shares
thereof in violation of mandatory legal rules of any type or rank. Likewise, the Company shall make public, in such manner as determined
by the above-mentioned regulations, the interest held by the shareholders in the capital of the Company, whenever the circumstances requiring
such publication arise.

 

Article 8. Unpaid subscriptions

 

		1.	Unpaid subscription amounts on partially paid-up shares shall be paid up by the
shareholders at the time determined by the board of directors, within five years of the date of the resolution providing for the capital
increase. The manner and other details of such payment shall be determined by the resolution providing for the capital increase.

 

		2.	Without prejudice to the effects of default as set forth by law, any late payment of unpaid subscriptions
shall bear, for the benefit of the Bank, such interest as is provided by law in respect of late payments, starting from the day when payment
is due and without any judicial or extra-judicial demand being required. In addition, the Bank shall be entitled to bring such legal actions
as may be permitted by law in these cases.

 

Article 9. Non-voting shares

 

		1.	The Company may issue non-voting shares for a nominal amount of not more than one
half of the paid-up share capital.

 

		2.	Non-voting shares shall attribute to the holders thereof the rights established
in the resolution for the issuance thereof, in accordance with law and by means of an appropriate amendment of the bylaws.

 

Article 10. Redeemable shares

 

		1.	The Company may, on the terms established by law, issue redeemable shares for a
nominal amount not to exceed one-fourth of its share capital.

 

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		2.	Redeemable shares shall give the holders thereof the rights that are established
in the resolution providing for the issuance thereof, in accordance with law and by means of the appropriate bylaw amendment.

 

Article 11. Co-ownership

 

		1.	Each share is indivisible.

 

		2.	Shares that are jointly owned shall be registered in the respective book-entry
registry in the name of all co-owners. However, the co-owners of a share shall appoint a single person to exercise shareholder rights
and shall be jointly and severally liable to the Company for all obligations entailed by the status of shareholders.

 

The same rule shall apply in all other
instances of co-ownership of rights over shares.

 

		3.	In the case of usufruct of shares, the status of shareholder lies with the bare
owner, but the usufructuary shall in every case be entitled to receive the dividends the Company resolves to distribute during the usufruct.
The bare owner shall exercise all other shareholder rights.

 

The usufructuary has the obligation
to facilitate the exercise of such rights by the bare owner.

 

		4.	If the shares are pledged, the owner thereof shall be entitled to exercise shareholder
rights. The pledgee shall have the obligation to facilitate the exercise of such rights.

 

In the event that the owner fails
to comply with his obligation to pay unpaid contribution amounts, the pledgee may perform such obligation himself or foreclose on the
pledge.

 

		5.	In all other cases of limited in rem rights on shares, voting and related
rights shall be exercised by the direct owner thereof.

 

Article 12. Transfer of shares

 

		1.	Shares and the economic rights attaching thereto, including pre-emptive rights,
may be transferred by any means permitted by Law.

 

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		2.	New shares may not be transferred until the capital increase is registered with the Commercial Registry.

 

		3.	Shares shall be transferred by means of book-entries.

 

		4.	The registration of the transfer in favor of the transferee shall have the same effect as the delivery
of the securities.

 

		5.	The creation of limited in rem rights or other liens on shares shall be registered in the respective
account of the book-entry registry.

 

		6	Registration of the pledge is equivalent to transfer of title.

 

Section 3. Capital increase
and reduction

 

Article 13. Capital increase

 

Capital increases may be effected
by issuing new shares or by increasing the par value of existing shares and, in both cases, the consideration therefore may consist of
non monetary or monetary contributions, including the set-off of receivables, or of the transformation of available profits or reserves.
Capital increases may be made partly with a charge to new contributions and partly with a charge to unappropriated profits or reserves.

 

Article 14. Authorized capital

 

		1.	The shareholders acting at the general shareholders’
meeting may delegate to the board of directors the power to resolve, on one or more occasions, to increase the share capital up
to a specified amount, at the time and in the amount it may decide and within the limits established by the law. Such delegation may include
the power to exclude pre-emptive rights.

 

		2.	The shareholders at the
general shareholders’ meeting may also delegate to the board of directors the power to determine the date on which the adopted
resolution to increase the share capital is to be implemented and to set the terms thereof regarding all
matters not specified by the shareholders at the general shareholders’ meeting.

 

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Article 15. Exclusion of pre-emptive rights

 

		1.	The shareholders acting
at the general shareholders’ meeting or the board of directors approving an increase in share capital, as the case may be,
may resolve to exclude the pre-emptive rights of the shareholders to further the best interests of the Company.

 

		2.	The pre-emptive rights of existing shareholders shall be excluded when the capital
increase is due to the conversion of debentures into shares, the merger of another company into the Company or of all or part of the assets
split off from another company, or when the Company has made a tender offer for securities the consideration for which consists, in whole
or in part, of securities to be issued by the Company or, in general, when the increase is carried out in consideration for non-cash contributions.

 

Article 16. Capital reduction

 

		1.	Capital reductions may be effected by reducing the par value of the shares or by
repurchasing them or dividing them into groups for exchange. Capital reductions may be effected in order to return the value of contributions,
to release unpaid subscriptions, establish or increase reserves or to restore the balance between the share capital and net assets.

 

		2.	In the event of a capital reduction to return contributions, payment to shareholders
may be made in kind in whole or in part, provided the three conditions set forth in Article 64 are concurrently met.

 

Section 4. Issuance of
debentures and other securities

 

Article 17. Issuance of debentures

 

The Company may issue debentures on the terms and with the
limits established by law.

 

Article 18. Convertible debentures

 

		1.	Convertible debentures may be issued at a fixed (determined or determinable) or variable exchange ratio.

 

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		2.	The pre-emptive rights of the shareholders in connection with the issuance of convertible
debentures may be excluded as provided by law.

 

		3.	The shareholders acting
at a general shareholders’ meeting may delegate to the board of directors the power to issue convertible debentures, including,
if applicable, the power to exclude preemptive rights. The board of directors may make use of this delegation on one or more occasions
within a maximum period of five years. The shareholders acting at a general shareholders’
meeting may also authorize the board of directors to determine the time when the issuance approved is to be carried out and to
set the other terms not specified in the resolution of the shareholders.

 

Article 19. Issuance of other securities

 

		1.	The Company may issue notes, warrants, preferred stock or other negotiable securities
other than those described in the preceding articles.

 

		2.	The shareholders acting
at a general shareholders’ meeting may delegate to the board of directors the power to issue such securities. The board of
directors may exercise such delegated power on one or more occasions and during a maximum period of five years.

 

		3.	The shareholders at a general
shareholders’ meeting may likewise authorize the board of directors to determine the time when the issuance approved is to
be effected, and to set all other terms not specified in the resolution adopted at the general shareholders’
meeting, on the terms established by law.

 

CHAPTER II. GOVERNANCE OF
THE COMPANY

 

Section 1. Corporate decision-making
bodies

 

Article 20. Distribution of powers

 

		1.	The corporate decision-making bodies of the Company are the shareholders acting at a
general shareholders’ meeting and the board of directors.

 

    8 
 
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		2.	The general shareholders’
meeting has the power to decide on all matters assigned to it by the law or the bylaws. Specifically and merely by way of example,
it has the following powers:

 

		(i)	To appoint and remove the directors and to ratify or revoke the interim appointments
of such directors made by the board itself, as well as to examine and approve their performance and to exempt the directors from the legal
prohibitions regarding conflicts of interest when the law necessarily assigns such power to the shareholders at the general shareholders’
meeting;

 

		(ii)	To appoint and remove the external auditor and liquidators;

 

		(iii)	To commence claims for liability against directors, liquidators and the external
auditor;

 

		(iv)	To approve, if appropriate, the annual accounts and corporate management and adopt resolutions on the
allocation of results, as well as to approve, also if appropriate, the consolidated annual accounts;

 

		(v)	To adopt resolutions on the issuance of debentures or other fixed-income securities
that are convertible into shares of the Company, any capital increase or reduction, the transformation, merger or split off, the overall
assignment of assets and liabilities, the relocation of the registered office abroad and the dissolution of the Company and, in general,
any amendment of the bylaws, except when the law assigns such power to the directors with respect to any of the aforementioned matters;

 

		(vi)	To authorize the board of directors to increase the share capital, pursuant to the
provisions of the Spanish Capital Corporations Law and of these bylaws;

 

		(vii)	To authorize the acquisition of the Company’s own stock;

 

		(viii)	To decide on the exclusion or limitation of pre-emptive rights, without prejudice
to the possibility of delegating this power to the directors as provided by law;

 

		(ix)	To decide upon matters submitted to the shareholders at the general shareholders’
meeting by resolution of the board of directors;

 

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		(x)	To approve the director remuneration policy as provided by law and to decide on
the application of compensation systems consisting of the delivery of shares or rights thereto, as well as any other compensation system
referenced to the value of the shares, when the beneficiaries of such compensation systems are directors of the Bank;

 

		(xi)	To approve the transfer to subsidiaries of the essential activities carried out
until that time by the Company itself, though it retains full ownership thereof;

 

		(xii)	To approve the acquisition, disposition or contribution to another company of essential
operating assets; and

 

		(xiii)	To approve transactions whose effect is tantamount to the liquidation of the Company.

 

For purposes of the provisions in
sub-sections (xi) and (xii), the asset or activity shall be presumed essential if the amount of the transaction exceeds twenty-five percent
of the value of the assets as recorded in the last balance sheet.

 

		3.	The powers not assigned by law or the bylaws to the shareholders acting at a general
shareholders’ meeting shall be exercised by the board of directors.

 

Section 2. General shareholders’
meeting

 

Article
21. Regulations applicable to the general shareholders’ meeting

 

		1.	The shareholders acting at the general shareholders’ meeting are the
sovereign decision making body of the Company,
and the resolutions adopted thereat bind all of the shareholders, including those who are absent, dissent, abstain from voting or do not
have the right to vote, all without prejudice to the rights and actions granted to them by the law.

 

		2.	The general shareholders’
meeting shall be governed by the provisions of the bylaws and the law. The legal and bylaw regulation of the meeting shall be further
developed and supplemented by the Rules and regulations for the general shareholders’
meeting, which shall contain detailed provisions regarding the call to meeting, the preparation of, provision of information prior
to, attendance at and progress of the Meeting and the

 

 

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exercise of political rights by the shareholders thereat.
The rules and regulations shall be approved by the shareholders at a meeting at the proposal of the board of directors.

 

Article 22. Types of general shareholders’ meetings

 

		1.	General shareholders’ meetings may be ordinary or extraordinary.

 

		2.	The ordinary general shareholders’ meeting
must be held within the first six months of each fiscal year in order for the shareholders to review corporate management, approve
the annual accounts from the prior fiscal year, if appropriate, and resolve upon the allocation of profits or losses from such fiscal
year, to approve, if appropriate, the consolidated annual accounts, without prejudice to their competence to deliberate and resolve
on any other matter included in the agenda. An ordinary general shareholders’ meeting shall still be valid even if called
or held outside of the applicable time period.

 

		3.	Any general shareholders’ meeting not provided
for in the foregoing sub-section shall be deemed an extraordinary general
shareholders’ meeting.

 

		4.	All general shareholders’
meetings, whether ordinary or extraordinary, shall be subject to the same rules regarding procedure and powers of the shareholders
thereat. The foregoing shall be without prejudice to the specific rules for extraordinary general shareholders’
meetings established by law or the bylaws.

 

Article 23. Power and duty to call a meeting

 

		1.	The board of directors must call a general shareholders’ meeting:

 

		(a)	When required pursuant to the provisions applicable to the ordinary general shareholders’
meeting as set forth in the preceding article.

 

		(b)	When so requested by shareholders holding at least three percent of share capital,
and such request sets forth the matters to be addressed at the meeting; in such
case, the general shareholders’ meeting must be called by the board of directors to be held within two months of the date
on which a notarial request for such purpose is submitted to the board.

 

		(c)	When it deems it appropriate in the interest of the Company.

 

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		2.	The board of directors shall prepare the agenda, which shall necessarily include
the matters requested to be addressed.

 

		3.	If the ordinary general
shareholders’ meeting is not called within the statutory time period, it may be called, at the request of the shareholders
and upon notice thereof being given to the directors, by the court clerk or by the company registrar of the place where the registered
office is located.

 

Article 24. Call of a general shareholders’ meeting

 

		1.	Notice of all types of meetings shall be given by means of a public announcement
in the Official Bulletin of the Commercial Registry or in one of the more widely circulated newspapers in Spain, on the website of the
National Securities Market Commission and on the Company’s website (www.santander.com),
at least one month prior to the date set for the Meeting, except in those instances in which a different period is established
by law

 

		2.	Shareholders representing at least three percent of the share capital may request the publication of a
supplement to the call to meeting including one or more items in the agenda, so long as such new items are accompanied by a rationale
or, if appropriate, by a substantiated proposal for a resolution. For such purposes, shareholders shall indicate the number of shares
held or represented by them. This right must be exercised by means of verifiable notice that must be received at the registered office
within five days of the publication of the call to Meeting. The supplement to the call shall be published at least fifteen days in advance
of the date set for the meeting. In no event may this right be exercised
in connection with the call to extraordinary general shareholders’ meetings.

 

		3.	An
                                            extraordinary general shareholders’ meeting may be called at least fifteen days in
                                            advance of the date set for such meeting by means of
                                            a prior resolution expressly adopted
                                            at an ordinary general shareholders’ meeting by shareholders representing at least
                                            two-thirds of the subscribed capital carrying voting rights. Such resolution shall not remain
                                            in effect beyond the date set for the holding of the next ordinary general shareholders’
                                            meeting.

 

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Article 25. Establishment of the general shareholders’
meeting

 

		1.	The general shareholders’
meeting shall be validly established on first call if the shareholders present in person or by proxy hold at least twenty-five
percent of the subscribed share capital carrying the right to vote. On second call, the meeting shall be validly established regardless
of the capital in attendance.

 

		2.	However, if the shareholders are called upon to deliberate on amendments to the
bylaws, including the increase and reduction of share capital, on the transformation, merger, split-off, the overall assignment of assets
and liabilities, the relocation of the registered office abroad, on the issuance of debentures or on the exclusion or limitation of pre-emptive
rights, the required quorum on first call shall be met by the attendance of shareholders representing at least fifty percent of the subscribed
share capital with the right to vote. If a sufficient quorum is not available, the general meeting shall be held upon second call.

 

		3.	Shareholders casting their vote from a distance shall be deemed present for the
purposes of constituting a quorum for the meeting in question.

 

		4.	In the event that, in order to validly adopt a resolution regarding one or more
of the items on the agenda for the general shareholders’ meeting, applicable
law or these bylaws require the presence of a particular quorum and such quorum is not met, the agenda shall be reduced to such other
items thereon as do not require such quorum in order for resolutions to be validly adopted.

 

Article 26. Right to attend the Meeting

 

		1.	The holders of any number of shares registered in their name in the respective
bookentry registry five days prior to the date on which the general shareholders’
meeting is to be held and who are current in the payment of pending subscriptions shall
be entitled to attend general shareholders’ meetings.

 

In
order to attend the general shareholders’ meeting, one must obtain the corresponding name-bearing attendance card to be issued
with reference to the list of shareholders having such right.

 

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		2.	The directors must attend
general shareholders’ meetings, but their attendance shall not be required for the meeting to be validly established.

 

		3.	The Chairman of the general
shareholders’ meeting may give economic journalists and financial analysts access to the Meeting and, in general, may authorize
the attendance of any person he deems fit. However, the shareholders may revoke any such authorization.

 

		4.	Shareholders having the right to attend may cast their vote regarding proposals
relating to items included in the agenda for any kind of general shareholders’
meeting, pursuant to the provisions of Articles 33 and 34 of these bylaws.

 

Article 27. Attendance at the general shareholders’
meeting by proxy

 

		1.	All shareholders having the right to attend the meeting may be represented at a
general shareholders' meeting by giving their proxy to another person, even if such person is not a shareholder. The proxy shall be granted
in writing or by electronic means.

 

		2.	Proxies shall be granted specially for each meeting, except where the representative
is the spouse or an ascendant or descendant of the shareholder giving the proxy, or where the proxy-holder holds a general power of attorney
executed as a public instrument with powers to manage the assets of the represented party in the Spanish territory.

 

		3.	If the directors or another person acting on behalf or in the interest of any of
them have made a public solicitation for proxies, the director or other person obtaining such proxy may not exercise the voting rights
attaching to the represented shares in connection with any items in respect of which the director or such other person is subject to a
conflict of interest, and in any event in connection with decisions relating to (i) his appointment, re-election or ratification, removal,
dismissal or withdrawal as director, (ii) the institution of a derivative
action [acción social de responsabilidad] against him, or (iii) the approval or ratification of transactions between the
Company and the director in question, companies controlled or represented by him, or persons acting for his account. The foregoing provisions
shall not apply to those cases in which a director has received precise voting instructions from the represented party with respect to

 

 

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each
of the items submitted to the shareholders at the general shareholders’ meeting, as provided by the Spanish Capital Corporations
Law.

 

In contemplation of the possibility that a conflict arises,
a proxy may be granted to another person in the alternative.

 

		4.	If the proxy has been obtained by means of public solicitation, the document evidencing
the proxy must contain or have the agenda attached thereto, as well as the solicitation of instructions for the exercise of voting rights
and the way in which the proxy-holder will vote in the event that specific instructions are not given, subject in all cases to the provisions
of the law.

 

		5.	When a proxy is granted or notified to the Company by remote means of communication,
it shall only be deemed valid if the grant is made:

 

		a)	by hand-delivery or postal correspondence, sending the Company the duly signed and
completed attendance and proxy card, or by other written means that, in the judgment of the board of directors recorded in a resolution
adopted for such purpose, allows for due confirmation of the identity of the shareholder granting the proxy and of the representative
being appointed, or

 

		b)	by electronic correspondence or communication with the Company, including an electronic
copy of the attendance and proxy card; such electronic copy shall specify the representation being granted and the identity of the party
represented, and shall include the electronic signature or other form of identification of the shareholder being represented, in accordance
with the conditions set by the board of directors recorded in a resolution adopted for such purpose in order to ensure that this system
of representation includes adequate assurances regarding authenticity and the identity of the shareholder represented.

 

		6.	In order to be valid, a proxy granted or notified by any of the foregoing means of remote communication
must be received by the Company before midnight of the third working day prior
to the date the shareholders’ meeting is to be held on first call, with working days being understood as Monday to Friday
on days that are not public holidays at the place of the registered office. In the resolution approving the call to the meeting in question,
the board of directors may reduce the required notice period, disseminating

 

 

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this information in the same manner
as it disseminates the announcement of the call to meeting. Pursuant to the provisions of Article 34.5 below, the board may further develop
the foregoing provisions regarding proxies granted by remote means of communication.

 

		7.	A proxy is always revocable. In order to be enforceable, the revocation of a
                                                                proxy must be notified to the Company by complying with the same requirements established for notification of the appointment of a
                                                                representative or otherwise result from application of the rules of priority among proxy-granting, distance voting and personal
                                                                attendance at the meeting that are set forth in the respective announcement of the call to meeting. In particular, attendance at the
                                                                shareholders’ meeting, whether physically or by casting a
                                                                distance vote, shall entail the revocation of any proxy that may have been granted, regardless of the date thereof. A proxy shall
                                                                also be rendered void by any transfer of shares of which the Company becomes aware.

  

		8.	The proxy may include items which, even if not included in the agenda, may be discussed
at the shareholders’ meeting because the law so permits. If the proxy does not include such items, it shall be deemed that
the shareholder granting the proxy instructs his representative to abstain when such items are put to the vote.

 

Article 28. Place and time of the Meeting

 

		1.	The general shareholders’
meeting shall be held at the place indicated in the call to meeting, within the municipal area where the Company’s
registered office is located. However, the meeting may be held at any other place within Spain if so resolved by the board of directors
on occasion of the call to meeting.

 

		2.	The general shareholders’
meeting may be attended by going to the place where the meeting is to be held or, if applicable, to other places provided by the
Company and indicated in the call to meeting, and which are connected therewith by video conference systems that allow recognition and
identification of the parties attending, permanent communication among the attendees regardless of their location, and participation and
voting. The principal place of the meeting must be located in the municipal area
of the Company’s registered office, but supplemental locations need not be
so located. For all purposes relating to the general shareholders’ meeting, attendees at any of the sites shall be deemed attendees
at the same individual meeting. The meeting shall be deemed to be held at the principal location thereof.

 

 

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		3.	If the place of the meeting is not specified in the call to meeting, it shall be
deemed that it will be held at the registered office.

 

Article 29. Presiding committee of the general shareholders’
meeting

 

		1.	The Presiding Committee (Mesa) of the general shareholders’
meeting shall be comprised of its chairman and secretary.

 

		2.	The chairman of the board of directors or, in his absence, the vice chairman serving
in his stead pursuant to Article 44, and in the absence of both the chairman and the vice chairman, the director designated by the board
of directors, shall preside over general shareholders’ meetings.

 

		3.	The chairman shall be assisted by the secretary for the meeting. The secretary of the board of directors
shall serve as secretary for the general shareholders’ meeting. In the event
of absence, impossibility to act or vacancy of the secretary, the vice secretary shall serve in his stead, and in the absence of the vice
secretary, the director designated by the board itself shall act as secretary.

 

		4.	The chairman shall declare
the existence of a valid quorum for the shareholders’ meeting, direct the debate, resolve any questions that may arise in
connection with the agenda, end the debate when he deems that an issue has been sufficiently discussed, and in general, exercise all powers
necessary for the proper organization and progress of the general shareholders’
meeting.

 

Article 30. List of attendees

 

		1.	Before the agenda is taken up, the list of attendees shall be prepared, setting
forth the name of the shareholders present and that of the shareholders represented and their proxies, as well as the number of shares
they hold.

 

For purposes of a quorum, non-voting shares shall only be
counted in the specific cases established in the Spanish Capital Corporations Law.

 

		2.	The list of attendees may also be prepared by means of a file or be supported by
computer media. In such cases, the means used shall be set forth in the minutes, and

 

 

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the sealed cover of the file or
media shall show the appropriate identification procedure signed by the secretary with the approval of the chairman.

 

		3.	At the end of the list, the number of shareholders present in person and by proxy
shall be determined, indicating separately those who have voted from a distance, as well as the amount of share capital they hold, specifying
the capital represented by shareholders with voting rights.

 

		4.	During the meeting, any
shareholder entitled to attend the shareholders’ meeting may consult the list of attendees, provided, however, that such
request shall not require delaying or postponing the meeting once the chairman has called it to order and that the chairman shall not
be required to read the list or provide copies thereof.

 

Article 31. Right to receive information

 

		1.	From the same date of publication
of the call to the general shareholders’ meeting through and including the seventh day prior to the date provided for the
Meeting to be held on first call, the shareholders may request in writing such information or clarifications as they deem are required,
or ask written questions that they deem pertinent, regarding the matters contained in the agenda.

 

In addition, upon the same prior
notice and in the same manner, the shareholders may request in writing such clarifications as they deem are necessary regarding information
accessible to the public which has been provided by the Company to the National Securities
Market Commission since the holding of the last general shareholders’ meeting, and regarding the report submitted by the
Company’s external auditor.

 

In
the case of the ordinary general shareholders’ meeting and in such other cases as are established by law, the notice of the
call to meeting shall contain appropriate information with respect to the right to examine at the Bank’s
registered office, and to obtain immediately and free of charge, the documents to be submitted for approval by the shareholders
acting at the meeting and any reports required by the law.

 

		2.	During the course of the
general shareholders’ meeting, all shareholders may verbally request information or clarifications that they deem are necessary
regarding the matters contained in the agenda or request clarifications regarding information accessible to the public which has been
provided by the Company to the National

 

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Securities
Market Commission since the holding of the last general shareholders’ meeting and regarding the report submitted by the Company’s
external auditor. A violation of the right to receive information established in this sub-section shall only entitle the shareholders
to demand compliance with the duty of information and the harm and loss that have been caused thereto, but shall not be a ground to challenge
the general shareholders’ meeting.

 

		3.	The directors shall be required to provide the information requested under the
provisions of the two preceding sub-sections in the manner and within the periods provided by the law, except in those cases in which
it is legally inadmissible and, in particular, if it is not necessary for the protection of shareholder rights or there are objective
reasons to consider that it might be used for ultra vires purposes or the publication thereof would harm the Company or related
companies. This exception shall not apply when the request is supported by shareholders representing at least one-fourth of the share
capital.

 

		4.	Valid requests for information, clarification or questions in writing in exercise
of the right to receive information and the answers provided in writing by the directors shall be
published on the Company’s website.

 

		5.	If the information requested is clearly, expressly and directly made available to
all the shareholders on the Company’s website in question-and-answer
form, the directors may limit their answers to a reference to the information provided in such form.

 

		6.	In the event of abusive or prejudicial use of the information requested, the shareholder
shall be liable for the harm and loss caused.

 

Article 32. Deliberations at the general shareholders’
meeting

 

		1.	Once the list of attendees has been prepared, the chairman shall, if appropriate,
declare the general shareholders’ meeting to be validly established and
shall determine whether the shareholders at the Meeting may address all of the matters included in the agenda or should instead
limit themselves to addressing some of them.

 

		2.	The chairman shall call the meeting to order, submit to a debate the matters included in the agenda, and
direct the debate in a manner such that the meeting progresses in

 

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an orderly fashion, pursuant to the provisions of the rules
and regulations for the general shareholders’ meeting and other applicable
regulations.

 

		3.	Once a matter has been sufficiently debated, the chairman shall submit it to a vote.

 

Article 33. Voting

 

		1.	Each item on the agenda shall be separately submitted to a vote.

 

		2.	As a general rule, and without prejudice to the possibility of using other alternative
means as determined by the chairman, the voting on the proposed resolutions referred to in the preceding sub-section shall be carried
out in accordance with the voting procedure contemplated in the rules and regulations
for the general shareholders’ meeting and other applicable regulations.

 

Article 34. Distance voting

 

		1.	Shareholders entitled to attend and to vote may cast their vote on proposals relating
to items on the agenda for any general shareholders’ meeting by the following
means:

 

		(i)	by hand-delivery or postal correspondence, sending the Company the duly signed
attendance and voting card (together with the ballot form, if any, provided by the company), or other written means that, in the judgment
of the board of directors recorded in a resolution adopted for such purpose, allows for the due verification of the identity of the shareholder
exercising his voting rights; or

 

		(ii)	by electronic correspondence or communication with the Company, which shall include
an electronic copy of the attendance and voting card (together with the ballot form, if any, provided by the Company); such electronic
copy shall include the shareholder’s electronic signature or other form
of identification of the shareholder, in accordance with the conditions set by the board of directors recorded in a resolution
adopted for such purpose to ensure that this voting system includes adequate assurances regarding authenticity and the identity of the
shareholder exercising his vote.

 

		2.	In order to be valid, a vote cast by any of the aforementioned means must be received
by the Company before midnight on the third working day prior to the date the

 

 

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shareholders’
meeting is to be held on first call, with working days being understood as Monday to Friday on days that are not public holidays
at the place of the registered office. Otherwise, the vote shall be deemed not to have been cast. The board of directors may reduce the
required notice period, disseminating this information in the same manner as it disseminates the announcement of the call to meeting.

 

		3.	Shareholders casting their vote from a distance pursuant to the provisions of this
article shall be deemed present for the purposes of constituting a quorum for the general
shareholders’ meeting in question. Therefore, any proxies granted prior to the casting of such vote shall be deemed revoked
and any such proxies thereafter granted shall be deemed not to have been granted.

 

		4.	Any vote cast from a distance as set forth in this article shall be rendered void
by physical attendance at the Meeting by the shareholder who cast such vote or by a transfer of shares of which the Company becomes aware.

 

		5.	The board of directors may expand upon the foregoing provisions, establishing such
instructions, rules, means and procedures to document the casting of votes and grant of proxies by remote means of communication as may
be appropriate, in accordance with the state of technology and conforming to any regulations issued in this regard and to the provisions
of these bylaws.

 

Furthermore, in order to prevent
potential deception, the board of directors may take any measures required to ensure that anyone who has cast a distance vote or granted
a proxy is duly empowered to do so pursuant to the provisions of these bylaws.

 

Any implementing rules adopted
by the board of directors pursuant to the provisions hereof shall be published
on the Company’s website.

 

Article 34 bis. Remote shareholders’ meeting

 

		1.	Attendance at the shareholders’ meeting
by remote and simultaneous means and the casting of a remote electronic vote during the meeting shall be governed by the rules
and regulations for the general meeting.

 

The rules and regulations for the
general meeting may give the board of directors the power to set regulations regarding all required procedural aspects, including, among

 

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other issues, how early a shareholder
must connect in order to be deemed present, the procedure and rules applicable for shareholders attending remotely to exercise their
rights, the length of the period, if any, prior to the meeting within which those who will attend remotely must send their presentations
and proposed resolutions, the identification that may be required of such remote attendees, and their impact on how the list of attendees
is compiled, all in compliance with the law, the bylaws and the rules and regulations for the general shareholders’
meeting.

 

		2.	In addition, when permitted by applicable legal provisions and subject to the conditions established
therein, general shareholders’ meetings may be called to be held exclusively by remote means, without the physical attendance
of shareholders or their representatives.

 

A meeting can be held exclusively
by remote means only if the identity and standing of the shareholders and their representatives are duly guaranteed and if all attendees
are able to participate effectively in the meeting by the remote means of communication allowed by applicable legal provisions from time
to time in effect, both to exercise in real time their rights to make presentations, receive information, make proposals and vote, as
well as to follow the presentations of the other attendees by the means made available,
based on the state of the art and the Company’s circumstances, particularly the number of shareholders. The provisions of
section 1 above shall also apply. The members of the board of directors may attend the meeting by remote connection or, as the case may
be, from the actual place where it is broadcast.

 

The announcement of the call to
meeting shall state the reasons for holding the meeting exclusively by remote means and shall describe the steps and procedures to register
and to prepare the list of attendees, for the attendees to exercise their rights, and for the proceedings of the meeting to be accurately
reflected in the minutes.

 

		3.	Replies to shareholders or their representatives attending the meeting through real-time remote means of communication who exercise their right to request information during the meeting shall be provided during the meeting,
unless it is not possible to do so at that time, in which case the directors shall be required to provide the information requested in
writing within seven days of the close of the meeting. In the latter case, the answers provided shall be published on the corporate website.

 

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Article 35. Approval of resolutions

 

		1.	Corporate resolutions shall be adopted by simple majority of the voting shares
represented in person or by proxy at the general shareholders’ meeting.
A resolution shall be deemed approved when it obtains more votes in favour than against of the share capital represented in person
or by proxy.

 

		2.	For the valid approval of the resolutions referred to in sub-section 2 of article 25, the favourable vote
of more than half of the votes corresponding to the shares represented in person
or by proxy at the general shareholders’ meeting shall be required, except when on second call shareholders representing
less than fifty percent of the subscribed share capital with the right to vote are in attendance, in which case the favourable vote of
two-thirds of the share capital represented in person or by proxy at the general
shareholders’ meeting shall be required.

 

		3.	Excepted from the foregoing shall be those instances in which the law or these
bylaws require a greater majority.

 

		4.	The attendees at the general shareholders’
meeting shall have one vote for each share which they hold or represent. Non-voting shares shall have the right to vote in the
specific cases laid down in the Spanish Capital Corporations Law.

 

Article 36. Minutes of the meeting

 

		1.	The secretary for the meeting shall draw up the minutes of the meeting, which, once
approved, shall be recorded in the corresponding minute book.

 

		2.	The minutes of the meeting may be approved by the shareholders after the meeting
has been held, or otherwise within a period of fifteen days by the chairman and two inspectors, one on behalf of the majority and the
other on behalf of the minority.

 

		3.	The board of directors may request the presence of a notary to draw up minutes
of the meeting.

 

		4.	The rules and regulations for the general shareholders’
meeting may require that the minutes of the general shareholders’ meeting be notarized in all cases.

 

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		5.	The secretary, and if applicable, the vice secretary, with the approval of the
chairman, or if applicable, of the vice chairman acting in his stead, shall have the power to issue certifications of the minutes of the
meetings and of the resolutions adopted by the shareholders thereat.

 

		6.	Any shareholder that has voted against a particular resolution shall be entitled
to have its opposition to the resolution adopted recorded in the minutes of the general shareholders’
meeting.

 

Section 3. The board
of directors

 

Article
37. Structure of the board of directors

 

		1.	The Company shall be managed by a board of directors.

 

		2.	The board of directors shall be governed by such legal provisions as are applicable
thereto and by these bylaws. In addition, the board shall approve a set of rules and regulations of the board of directors, which shall
contain rules of operation and internal organization by way of further development of the aforementioned legal and bylaw provisions. The
shareholders at a general shareholders' meeting shall be informed of the approval of the rules and regulations of the board of directors
and of any subsequent amendments thereto.

 

Article 38. Management and supervisory powers

 

		1.	The board of directors has the widest powers to manage the company, and except
for those matters exclusively within the purview of the shareholders at a general shareholders' meeting, is the highest decision-making
body of the company.

 

		2.	Notwithstanding the foregoing, the board shall exercise, without the power of delegation,
such powers as are reserved for it by law, as well as such other powers as are required for a responsible discharge of the general duty
of supervision.

 

		3.	The rules and regulations of the board shall set forth a detailed description of
the responsibilities reserved for the board of directors.

 

Article 39. Powers of representation

  

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		1.	The power to represent the company, in court and out of court, is vested in the
board of directors acting collectively.

 

		2.	The chairman of the board also has the power to represent the company.

 

		3.	The secretary of the board and the vice secretary, if any, have the necessary representative
powers to convert into public instruments the resolutions adopted by the shareholders
at a general shareholders’ meeting and the resolutions of the board and to apply for registration thereof.

 

		4.	The provisions of this article are without prejudice to any other powers of attorney,
whether general or special, that may be granted.

 

Article 40. Creation of shareholder value

 

		1.	The board of directors and its representative decision-making bodies shall exercise
their powers and, in general, perform their duties guided by the corporate interest, understood as the achievement of a business that
is profitable and sustainable over the long term and that promotes the continuity thereof and the maximisation of the value of the company.

 

		2.	Additionally, the board shall ensure that the Company faithfully complies with
applicable law, respects the uses and good practices of the industries or countries where it carries out its activities and observes the
additional principles of sustainability and responsible business that it has voluntarily accepted.

 

Article 41. Quantitative composition of the board

 

		1.	The board of directors shall be composed of not less than twelve and not more than
seventeen members, appointed by the shareholders acting at a general shareholders' meeting.

 

		2.	It falls upon the shareholders
at a general shareholders’ meeting to set the number of members of the board within the aforementioned range. Such number
may be set

 

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indirectly by the resolutions adopted by the shareholders
at a general shareholders' meeting whereby directors are appointed or their appointment is revoked.

 

Article 42. Qualitative composition of the board

 

		1.	The shareholders at the
general shareholders’ meeting shall endeavor to ensure that the board of directors is made up such that external or non-executive
directors represent a large majority over executive directors, and that a reasonable number of the
former are independent directors. The shareholders at the general shareholders’ meeting shall likewise endeavor to ensure
that independent directors represent at least one-third of the total number of directors.

 

		2.	The provisions of the preceding paragraph do not affect the sovereignty of the
shareholders acting at the general shareholders’ meeting or detract
from the effectiveness of the proportional system, which shall be mandatory whenever there is a voting trust pursuant to the provisions
of the Spanish Capital Corporations Law.

 

		3.	For purposes of these bylaws, the terms executive director and external or non-
executive director (which, in turn, includes the terms proprietary director, independent director and other external directors) shall
have the meaning ascribed to such terms in applicable law, in these bylaws or in the rules and regulations of the board of directors.

 

		4.	The board of directors must ensure that the procedures for selecting its members encourage diversity of
gender, experience and knowledge and do not suffer from implicit biases that might entail any discrimination and, in particular, the procedures
shall favour the selection of female directors.

 

Article 43. Chairman of the board

 

		1.	The chairman of the board shall be chosen from among its members, upon a prior
reasoned proposal of the appointments committee.

 

		2.	The chairman is ultimately responsible for the effective operation of the board
of directors. In addition to the powers delegated thereto by law, the bylaws or the rules

 

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and regulations of the board of directors, the chairman shall
have the following powers:

 

		a)	To call and preside over meetings of the board of directors, establishing the agenda for the meetings
and directing the debates and deliberations.

 

		b)	To ensure that directors receive sufficient information in advance to debate the items on the agenda.

 

		c)	To stimulate debate and active participation by the directors during the meetings, safeguarding their
freedom to take a position.

 

		d)	To preside over the general shareholders’ meeting.

 

Article 44. Vice chairman of the board

 

		1.	The board of directors, upon a prior reasoned proposal of the appointments committee,
shall designate, from among its members, one or more vice chairmen, who shall replace the chairman according to their seniority on the
board. However, if one of the vice chairmen of the board is the lead director (consejero coordinador), such director shall be the
first in the order of replacement of the chairman, and the remainder shall follow the aforementioned criteria of seniority.

 

		2.	The vice chairman or vice chairmen, in accordance with the foregoing paragraph,
and in their absence, the appropriate director according to a numerical sequence established by the board of directors, shall replace
the chairman in the event of absence or impossibility to act or illness.

 

		3.	The re-election of a director who has been designated vice chairman shall entail
his continuity in such position, not being necessary to re-designate him, without prejudice to the powers of revocation that belongs to
the board in respect of the position of vice chairman.

 

Article 45. Secretary of the board

 

		1.	The board of directors, upon a prior report of the appointments committee, shall
appoint a secretary. The secretary of the board of directors shall always be the general secretary of the company.

 

 

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		2.	The secretary, in addition to the duties assigned thereto by law, the bylaws or
the rules and regulations of the board, must perform the following:

 

		a)	Keep the documentation of the board of directors, record the events of the meetings
in the minute books and attest to the content thereof and of the resolutions adopted.

 

		b)	Ensure the actions of the board of directors observe applicable law and are in
accordance with the bylaws and other internal rules and regulations of the Company.

 

		c)	Assist the chairman to ensure that the directors receive the information relevant
to the performance of their duties sufficiently in advance and in the proper form.

 

		d)	Ensure that the board of directors carries out its activities and adopts its decisions
being mindful of the good governance recommendations applicable to the Company.

 

		e)	Guarantee that the governance procedures and rules are respected and regularly reviewed.

 

		3.	The board of directors, upon a prior report of the appointments committee, may appoint
a vice secretary in order that he shall assist the secretary of the board of directors or replace him in the event of absence, impossibility
to act or illness.

 

		4.	In the event of absence or impossibility to act, the secretary and the vice secretary
of the board may be replaced by the director appointed by the board itself from among the directors present at the meeting in question.
The board may also resolve that any employee of the company act as such interim replacement.

 

		5.	The general secretary shall also be the secretary of all the committees of the board.

 

Article 46. Meetings of the board of directors

 

		1.	The board shall meet with the frequency required for the proper performance of
its duties and, in any event, at least once per quarter, and shall be called to meeting by

 

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the chairman. The chairman shall call board meetings on his
own initiative or at the request of at least three directors.

 

		2.	The agenda shall be approved by the board at the meeting itself. Any board member
may propose the inclusion of any other item not included in the draft agenda proposed by the chairman to the board.

 

		3.	Any person invited by the chairman may attend board meetings.

 

Article 47. Conduct of the meetings

 

		1.	Meetings of the board shall be validly held when more than one-half of its members
are present in person or by proxy.

 

		2.	The directors must attend the meetings held in person. However, if they cannot attend they may grant a
proxy to another director, for each meeting and in writing, in order that the latter shall represent them at the meeting for all purposes.
The non-executive directors may only grant a proxy to another non-executive director.

 

		3.	Board meetings may be held in several rooms at the same time, provided interactivity and intercommunication
among them in real time is ensured by audiovisual means or by telephone and the concurrent holding of the meeting at all such rooms is
thereby ensured. In such case, the resolutions shall be deemed to have been adopted at the place where the majority of the directors are
and, in the event of equal numbers, at the registered office.

 

		4.	On an exceptional basis, and provided no director is opposed thereto, the board
may also act in writing and without a meeting. In this latter case, the directors may cast their votes and make such comments as they
wish to have recorded in the minutes by e-mail.

 

		5.	Except in those cases in which a greater majority is specifically required pursuant
to a provision of the law, the bylaws or the rules and regulations of the board, resolutions shall be adopted by an absolute majority
of the directors present in person or by proxy. The chairman shall have a tie-breaking vote.

 

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		6.	All resolutions adopted by the board of directors shall be recorded in minutes authorized
under the signature of the chairman and the secretary. Board of directors’
resolutions shall be evidenced by means of a certificate issued by the secretary of the board or by the vice secretary, as the
case may be, with the approval of the chairman or the vice chairman, as applicable.

 

		7.	Any of the chairman, the vice chairman or vice chairmen, the chief executive officer(s)
and the secretary of the board, acting severally, shall have standing powers to have the resolutions of the board of directors converted
into a public instrument, all without prejudice to the express authorizations established in applicable laws and regulations.

 

Section 4. Delegation of
the powers by the board

 

Article 48. The executive chairman

 

		1.	The chairman of the board of directors shall have the status of executive chairman of the Bank and shall
be considered as the highest executive in the Company, vested with such powers as are required to hold office in such capacity. Considering
his particular status, the executive chairman shall have the following powers and duties, among others set forth in the law, in these
bylaws or in the rules and regulations of the board:

 

		a)	To ensure that the bylaws are fully complied with and that the resolutions adopted
at the general shareholders' meeting and by the board of directors are duly carried out.

 

		b)	To be responsible for the overall inspection of the Bank and all services thereof.

 

		c)	To hold discussions with the chief executive officer and the senior management in order to inform himself
of the progress of the business.

 

		2.	The board of directors shall delegate to the chairman all its powers, except for
those that are legally non-delegable or that may not be delegated pursuant to the provisions of these bylaws or the rules and regulations
of the board, without prejudice to entrusting to the chief executive officer the duties set forth in article 49 of these bylaws.

 

		3.	The chairman shall be appointed to hold office for an indefinite period and shall
require the favorable vote of two-thirds of the members of the board. The chairman may not at the same time hold the position of chief
executive officer provided for in article 49 of these bylaws.

 

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Article 49. The chief executive officer

 

		1.	The board of directors shall appoint from among its members a chief executive officer,
to whom the day-to-day management of the business shall be entrusted, with the highest executive duties.

 

		2.	The board of directors shall delegate all its powers to the chief executive officer,
except for those that are legally non-delegable or that may not be delegated pursuant to the provisions of the law, these bylaws or the
rules and regulations of the board.

 

		3.	The appointment of the chief executive officer shall require the favourable vote
of two thirds of the members of the board.

 

		4.	The board of directors may appoint more than one director to hold office as chief
executive officer, with such powers as the board may determine.

 

Article 49 bis. The lead director

 

		1.	The board of directors shall appoint from among the independent directors a lead
director, who shall be especially authorised to:

 

		(i)	request that a meeting of the board of directors be called or that new items be
added to the agenda for a meeting of the board of directors that has already been called.

 

		(ii)	coordinate and organise meetings of non-executive directors; and

 

		(iii)	direct the regular evaluation of the chairman of the board of directors.

 

		2.	The appointment of the lead director shall be made for an indefinite period, with
executive directors abstaining.

 

Article 50. Committees of the board of directors

 

		1.	Without prejudice to such powers as may be delegated individually to the chairman, the chief executive
officer or any other director and to the power of the board of directors to establish committees for each specific area of business, the
board of directors may establish an executive committee, to which general decision-making powers shall be delegated. If such committee
is established, its operation shall be governed by the provisions of article 51 below.

 

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		2.	The board may also establish committees with supervisory, reporting, advisory and
proposal-making powers in connection with the matters within their scope of authority, and must in any event create the committees required
by applicable law, including an appointments committee, a remuneration committee, a risk supervision, regulation and compliance committee
and an audit committee, which for the purposes of sub-section 4(v) of article 52 will also have decision-making powers.

 

		3.	To the extent not provided for in these bylaws, the operation of the committees
of the board shall be governed by the provisions of the rules and regulations of the board.

 

Section 5. Committees of
the board of directors

 

Article 51. Executive committee

 

		1.	The executive committee shall consist of a minimum of five and a maximum of twelve
directors. The chairman of the board of directors shall also be the chairman of the executive committee.

 

		2.	Any permanent delegation of powers to the executive committee and all resolutions
adopted for the appointment of its members shall require the favorable vote of not less than two-thirds of the members of the board of
directors. 3. The permanent delegation of powers by the board of directors to the executive committee shall include all of the powers
of the board, except for those which cannot legally be delegated or which may not be delegated pursuant to the provisions of these bylaws
or of the rules and regulations of the board.

 

		4.	The executive committee shall meet as many times as it is called to meeting by its
chairman or by the vice chairman replacing him.

 

		5.	The executive committee shall report to the board of directors on the affairs discussed and the decisions
made at its meetings and shall make available to the members of the board a copy of the minutes of such meetings.

 

Article 52. Audit committee

 

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		1.	The audit committee shall consist of a minimum of three directors and a maximum
of nine, all of whom shall be external or non-executive, with independent directors having majority representation.

 

		2.	The board of directors shall appoint the members of the audit committee taking into
account their knowledge, skills and experience in the areas of accounting, auditing or risk management, such that, as a whole, the audit
committee has the appropriate technical knowledge regarding the Company’s
sector of activity.

 

		3.	The audit committee must in all events be presided over by an independent director, who shall also be
knowledgeable about and experienced in matters of accounting, auditing or risk management. The chairman of the audit committee shall be
replaced every four years, and may be re-elected once after the passage of one year from the date on which his term of office expired.

 

		4.	The audit committee shall have at least the following powers and duties:

 

		(i)	Have its chairman and/or
secretary report to the general shareholders’ meeting with respect to matters raised therein by shareholders regarding its
powers and, in particular, regarding the result of the audit, explaining how such audit has contributed to the integrity of the financial
information and the role that the committee has performed in the process.

 

		(ii)	Supervise the effectiveness
of the Bank’s internal control and internal audit, and discuss with the external auditor any significant weaknesses detected
in the internal control system during the conduct of the audit, all without violating its independence. For such purposes, if applicable,
the audit committee may submit recommendations or proposals to the board of directors and set the corresponding period for compliance
therewith.

 

		(iii)	Supervise the process of preparation and submission of regulated financial information
and submit recommendations or proposals intended to safeguard its integrity to the board of directors.

 

		(iv)	Propose to the board of directors the selection, appointment, re-election and replacement
of the external auditor, taking responsibility for the selection process in accordance with applicable law, as well as the terms of its
engagement, and regularly gather information therefrom regarding the audit

  

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plan and the implementation thereof,
in addition to preserving its independence in the performance of its duties.

 

		(v)	Establish appropriate relations with the external auditor to receive information on those issues that
might entail a threat to its independence, for examination by the audit committee, and on any other issues relating to the financial statements
audit process, and, when applicable, the authorisation of services other than those which are prohibited, under the terms established
in the law applicable to the activity of audit of accounts, as well as maintain such other communication as is provided for therein.

 

In any event, the audit committee
shall receive annually from the external auditor written confirmation of its independence in relation to the Company or to entities directly
or indirectly related thereto, as well as detailed and individualized information regarding additional services of any kind provided by
the aforementioned auditor, or by persons or entities related thereto, and the fees received by such entities pursuant to the provisions
in the law on the activity of audit of accounts.

 

		(vi)	Issue, on an annual basis and prior to the issuance of the auditor’s
report, a report stating an opinion on whether the independence of the external auditor is compromised. Such report shall, in all
cases, contain a reasoned evaluation regarding the provision of each and every one of the additional services mentioned in subsection
(v) above, considered individually and as a whole, other than of legal audit and with relation to the rules on independence or to the
law on the activity of audit of accounts.

 

		(vii)	Previously report to the board of directors regarding all the matters established
by law, the bylaws and in the rules and regulations of the board, and in particular regarding:

 

		a)	the financial information that the company must publish from time to time;

 

		b)	the creation or acquisition of interests in special-purpose entities or with registered office in countries
or territories that are considered tax havens; and

 

		c)	related-party transactions.

 

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The provisions in paragraphs (iv), (v) and (vi) are without
prejudice to the law on auditing of accounts.

 

		5.	The audit committee shall meet as many times as it is called to meeting upon resolution
made by the committee itself or by the chairman thereof, and at least four times
per year. Any member of the management team or of the Company’s personnel shall, when so required, attend the meetings of
the audit committee, provide it with his cooperation and make available to it such information as he may have in his possession. The audit
committee may also require that the external auditor attend such meetings. One of its meetings shall be devoted to preparing the information
within the committee’s scope of authority that the board is to approve and
include in the annual public documents.

 

		6.	Meetings of the audit committee shall be validly held when at least one half of
its members are present in person or by proxy. The committee shall adopt its resolutions upon a majority vote of those present in person
or by proxy. In the event of a tie, the chairman of the committee shall have a tie-breaking vote. The committee members may grant a proxy
to another member. The resolutions of the audit committee shall be recorded in a minute book, and every one of such minutes shall be signed
by the chairman and the secretary.

 

		7.	The rules and regulations of the board shall further develop the rules applicable
to the audit committee established in this article.

 

 

Article 53. Appointments committee

 

		1.	An appointments committee shall be established and entrusted with general proposal-
making and reporting powers on matters relating to appointment and withdrawal of directors on the terms established by law.

 

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		2.	The appointments committee shall be composed of a minimum of three directors and a maximum of nine, all
of whom shall be external or non-executive directors, with independent directors having majority representation.

 

		3.	The members of the appointments committee shall be appointed by the board of directors
taking into account the directors’ knowledge, skills and experience and the responsibilities of the committee.

 

		4.	The appointments committee must in all events be presided over by an independent
director.

 

		5.	The rules and regulations of the board of directors shall govern the composition,
operation and powers and duties of the appointments committee.

 

Article 54. Remuneration committee

 

		1.	A remuneration committee shall be established and entrusted with general proposal-making and reporting powers on matters relating to remuneration on the terms established by law.

 

		2.	The remuneration committee shall be composed of a minimum of three directors and a maximum of nine, all
of whom shall be external or non-executive directors, with independent directors having majority representation.

 

		3.	The board of directors shall appoint the members of the remuneration committee
taking into account the directors’ knowledge, skills and experience and
the responsibilities of the committee.

 

		4.	The remuneration committee must in all events be presided over by an independent
director.

 

		5.	The rules and regulations of the board of directors shall govern the composition, operation and powers
and duties of the remuneration committee.

 

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Article 54 bis. Risk supervision, regulation and compliance
committee

 

		1.	A risk supervision, regulation and compliance committee shall be established and
entrusted with general powers to support and advise the board of directors in its risk control and oversight duties, in the definition
of the risk policies of the Group, in relations with supervisory authorities and in compliance matters.

 

		2.	The risk supervision, regulation, and compliance committee shall consist of a minimum of three and a maximum
of nine directors, all of whom shall be external or non-executive, with independent directors having majority representation.

 

		3.	The members of the risk supervision, regulation and compliance committee shall
be appointed by the board of directors, taking into account the directors' knowledge, skills and experience and the tasks of the committee.

 

		4.	The risk supervision, regulation and compliance committee must in all events be
presided over by an independent director.

 

		5.	The rules and regulations of the board shall govern the composition, operation
and powers of the risk supervision, regulation and compliance committee.

 

Article 54 ter. Responsible banking, sustainability and
culture committee

 

		1.	The board of directors may create a responsible banking, sustainability and culture
committee. If created, this committee shall assist the board of directors in complying with its duties of supervision with respect to
the responsible business strategy and the sustainability issues of the Company and its Group.

 

		2.	The responsible banking, sustainability and culture committee shall consist of
a minimum of three and a maximum of nine directors.

 

		3.	The rules and regulations of the board shall govern the composition, operation and
powers of the responsible banking, sustainability and culture committee.

  

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Section 6. Status of Directors

 

Article 55. Term of office

 

		1.	The term of office of directors shall be three years. One-third of the board shall be renewed every year,
following the order established by the length of service on the board, according to the date and order of the respective appointment.
This means that the term of office of directors shall be of three years. Outgoing directors may be re-elected.

 

		2.	The directors who have been designated by interim appointment to fill vacancies may be
ratified in their position at the first general shareholders’ meeting that is held following such designation. The candidate
who has been designated by the board may not be, necessarily, a shareholder of the Company. If the interim vacancy arises after the call
to the general meeting and before it is held, the board of directors may, before or after such general meeting, appoint a director who
may in turn hold his office until the next general shareholders’ meeting
is held.

 

		3.	A director who ends his term of office or, for any other reason, ceases to act as
such, shall, for a term of two years, be barred from serving in another entity that is a competitor of the company.

 

The board of directors, may, if it deems it appropriate,
relieve the outgoing director from this restriction or reduce it to a lesser period.

 

Article 56. Withdrawal of directors

 

		1.	Directors shall cease to hold office upon the expiration of the term of office
for which they have been appointed, and when it is so resolved by the shareholders at the general
shareholders’ meeting in the exercise of the powers granted to them. In the first case, such withdrawal from office shall
take effect on the date of the first general shareholders’ meeting following
the date of expiration of the term of office for which they were appointed, or upon expiration of the statutory period for calling
the general shareholders’ meeting that is to resolve on the approval of
the financial statements for the prior fiscal year.

 

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		2.	The directors shall tender their resignation to the board of directors and formally
resign from their position if the board, upon the prior report of the appointments committee, deems it appropriate, in those cases that
might adversely affect the operation of the board or the credit and reputation of the Company and, particularly, when they are prevented
by any legal prohibition against or incompatibility with holding such office.

 

Article 57. Liability of directors

 

		1.	The directors shall be liable to the Company,
to the shareholders, and to the Company’s creditors for any damage they may cause by acts or omissions contrary to law or
to the bylaws or by any acts or omissions contrary to the duties inherent in the exercise of their office, provided that there has been
wilful misconduct or negligence.

 

		2.	All the members of the board of directors that carried out such act or adopted
the prejudicial resolution shall be jointly and severally liable, except for those members who can prove that, not having participated
in the adoption and execution of such act or resolution, they were unaware of its existence, or, if aware of it, did all that was appropriate
to avoid the damage caused, or at least expressly opposed it.

 

		3.	Under no circumstances shall the fact that the prejudicial act or resolution was
approved, authorized or ratified by the shareholders at the general shareholders’
meeting be considered grounds for a release from liability.

 

Article 58. Compensation of directors

 

		1.	The directors shall be entitled to receive compensation for performing the duties
entrusted to them in their capacity as such, this is, by reason of their appointment as mere members of the board of directors by the
shareholders at the general shareholders’ meeting or by the board itself
exercising its power to make interim appointments to fill vacancies.

 

		2.	The compensation referred to in the preceding paragraph shall consist of a fixed
annual amount determined by the shareholders at the general shareholders’
meeting. Such amount shall remain in effect to the extent that the shareholders at the general shareholders’
meeting do not resolve to change it, although the board may reduce the amount thereof in those years in which it so believes justified.
Such compensation shall have two components: (a) a fixed annual amount, and (b) attendance fees.

 

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The specific amount payable for
the above-mentioned items to each of the directors and the form of payment shall be determined by the board of directors. For such purpose,
it shall take into consideration the duties and responsibilities assigned to each director, the positions held by each director on the
board, their membership in and attendance at the meetings of the various committees and such other objective circumstances as it deems
relevant.

 

		3.	In addition to the compensation systems set forth in the preceding paragraphs, the
directors shall be entitled to receive compensation by means of the delivery of shares or share options, or by any other compensation
system referenced to the value of shares, provided the application of such compensation systems is previously approved by the shareholders
at the general shareholders’ meeting. Such resolution shall determine, as the case may be, the maximum number of shares that
may be assigned in each financial year, the exercise price or the system for calculating the exercise price of the share options, the
value of the shares that may be used as a reference and the duration of the plan.

 

		4.	Independently of the provisions of the preceding paragraphs, the directors shall also be entitled to receive
such other compensation as is appropriate for the performance of executive duties.

 

For such purposes, when executive
duties are delegated to a member of the board of directors in any capacity, it shall be necessary for the director and the Company to
sign an agreement, which must have been previously approved by the board of directors with the favourable vote of two-thirds of its members.
The affected director must abstain from attending the meeting and from participating in the vote. The approved agreement must be included
as an exhibit in the minutes of the meeting.

 

Such agreements shall establish
all the items for which the directors may receive remuneration for the performance of executive duties (including, if applicable, salaries,
incentives, bonuses, possible severance payments relating to such duties and the amounts to be paid by the Company in insurance or contributions
to savings plans). The directors may not receive any remuneration for the performance of executive duties which amounts or items are not
established in such agreement.

 

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The remuneration to be paid pursuant to such agreements shall
be adjusted to the director remuneration policy.

 

		5.	The Company shall take out liability insurance for its directors on such terms as are customary and commensurate
with the circumstances of the Company itself.

 

		6.	The variable components of compensation shall be set such that there is an appropriate ratio between
the fixed and variable components of total compensation. The variable components shall not exceed one hundred percent of the fixed components
of the total compensation of each director, unless the shareholders at a general
shareholders’ meeting approve a higher ratio, which shall under no circumstances exceed two hundred percent of the fixed
components of the total compensation, on the terms established by law.

 

Article 59. Approval of the director remuneration policy

 

		1.	The director remuneration policy shall be approved by the shareholders at the general shareholders’
meeting at least every three years as a separate item on the agenda.

 

		2.	The remuneration policy shall conform as appropriate to the remuneration system established in article
58 and must necessarily include:

 

		(i)	with regard to the remuneration of the directors in their capacity as such, the
maximum total amount of annual remuneration to be paid to the directors; and

 

		(ii)	with regard to the remuneration of the directors for the performance of executive
duties, the amount of the fixed annual remuneration and changes thereto during the period to which the policy refers, the various parameters
to set the variable components and the principal terms and conditions of their agreements, including, in particular, term, other fixed
components of remuneration, compensation for early withdrawal or termination of the contractual relationship and exclusivity, post-contractual
attendance and continuity or loyalty agreements.

 

		3.	The proposal by the board of directors of the director remuneration policy shall
be reasoned and must be accompanied by a specific report of the remuneration committee. As from the call
to the general shareholders’ meeting, both documents

 

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shall
be made available on the Company’s website for the shareholders, who may also request that the documents be delivered or
sent free of charge. The announcement of the call to the general shareholders’
meeting shall mention such right.

 

		4.	The duly approved director remuneration policy shall remain effective for the three
fiscal years subsequent to the year in which it was approved by the shareholders at the general
shareholders’ meeting, unless the policy itself or the resolution of the general shareholders’
meeting establishes a lesser term or on the occurrence of the event established in sub-section 4 of article 59 bis below. Any amendment
or replacement thereof during such term shall require the prior approval of the shareholders at the general
shareholders’ meeting, in accordance with the procedure established for its approval.

 

		5.	Any remuneration the directors received for the exercise or termination of their
office or for the performance of executive duties shall be in accordance with the director remuneration policy then in effect. Excepted
from the foregoing is remuneration expressly approved by the shareholders at the
general shareholders’ meeting.

 

Article 59 bis. Transparency of the director compensation
system

 

		1.	The board of directors shall, on an annual basis, approve and publish the annual
report on directors’ remuneration. Such report shall include the remuneration
that the directors receive or must receive in their capacity as such, as well as any remuneration for the performance of executive
duties.

 

		2.	The annual report on directors’
remuneration must include complete, clear and understandable information regarding the director remuneration policy applicable
to the then-current fiscal year. It shall also include an overall summary of the application of the remuneration policy during the prior
fiscal year, as well as a breakdown of the individual compensation accrued for all the items by each director during such fiscal year.

 

		3.	During each fiscal year, such report shall be submitted to a consultative vote of the shareholders
at the general shareholders’ meeting as a separate item on the agenda. It shall also be made available to the shareholders
upon the call to the aforementioned general shareholders’ meeting.

 

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		4.	If the annual report on director remuneration is rejected by the consultative vote
of the shareholders at any general shareholders’ meeting, the remuneration
policy applicable to the fiscal year subsequent to that in which the aforementioned general shareholders’
meeting is held must be submitted for the approval of the shareholders at the general shareholders’ meeting prior to its application,
though the maximum term of such policy may not have expired. It shall not be necessary to re-approve the policy
if it would have been approved at the same general shareholders’ meeting that rejected the annual report on directors’ remuneration
on a consultative basis.

 

		5.	In the annual report, the board shall set forth, on an individual basis, the compensation received by
each director, specifying the amounts corresponding to each compensation item. It shall also set forth therein, on an individual basis
and for each item of compensation, the compensation payable for the executive duties entrusted to the executive directors of the Company.

 

Section 7. Corporate governance
report and website

 

Article
60. Annual corporate governance report

 

		1.	The board of directors shall prepare an annual corporate governance report which,
with the content required by law, shall specifically focus on (i) the level of compliance with the corporate governance recommendations;
(ii) the conduct of the general shareholders’ meeting and proceedings therein;
(iii) related-party transactions and intragroup transactions; (iv) the ownership structure of the Company; (v) the management structure
of the Company (including a description of the diversity policy applied); (vi) risk control systems, including financial risk (riesgo
fiscal), and a description of the principal characteristics of the internal risk control and management systems relating to the process
of issuing financial information; and (vii) any restriction on the transferability of securities or on voting rights.

 

		2.	The annual corporate governance report shall be made available to the shareholders
on the Company’s website no later than the date of publication of the call
to the ordinary general shareholders’ meeting that is to review the annual accounts for the fiscal year to which such report
refers.

 

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Article 61. Corporate website.

 

		1.	The Company shall have a corporate website (www.santander.com) through which it
shall report to its shareholders, investors and the market at large the relevant or significant events that occur in connection with the
Company and on which it shall disseminate any other information for which publication on the corporate website is required by applicable
law.

 

The creation of the corporate website
must be resolved upon by the shareholders at the general shareholders’ meeting.
Such resolution must expressly appear in the agenda included in the call to the meeting that must adopt it.

 

The
resolution to create the website shall be recorded on the Bank’s page maintained with the Commercial Registry and shall be
published on the Official Gazette of the Commercial Registry.

 

		2.	The board of directors may approve the amendment, removal or relocation of the corporate
website.

 

The amendment, removal or relocation
of the corporate website shall be recorded on the Bank’s page maintained
with the Commercial Registry and published in the Official Gazette of the Commercial Registry, as well as on the website resolved
to be amended, removed or relocated for thirty days following insertion of the resolution in the Official Gazette of the Commercial Registry.

 

		3.	Without prejudice to any additional documentation required by applicable regulations,
the Company’s website shall include at least the information and documents
set forth in the rules and regulations of the board.

 

		4.	On occasion of the call
to general shareholders’ meetings, an electronic shareholders’ forum shall be enabled for use on the Company’s website,
to which both individual shareholders and any voluntary associations that they may create as provided by law will have access,
with all due assurances, in order to facilitate their communication prior to the
holding of general shareholders’ meetings. The regulations for the electronic
shareholders’ forum may be further developed by the rules and regulations for
the general shareholders’ meeting, which, in turn, may entrust to the board of directors the regulation of all required
procedural aspects.

  

 

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CHAPTER III. OTHER PROVISIONS

 

Section 1. Annual accounts

 

Article 62. Submission of the annual accounts

 

		1.	The company’s fiscal
year shall coincide with the calendar year, commencing on 1 January and ending on 31 December of each year.

 

		2.	Within a maximum period of three months from the closing date of each fiscal year,
the board of directors shall draft the annual accounts, which shall include the balance sheet, the profit and loss statement, the annual
report to the accounts, the statement of recognised income and expense, the consolidated statement of changes in total equity and the
statement of cash flows, the management report and the proposed allocation of profits and losses and, if applicable, the consolidated
accounts and management report.

 

		3.	The board of directors shall use its best efforts to prepare the accounts such that
there is no room for qualifications by the external auditor. However, when the board believes that its opinion must prevail, it shall
provide a public explanation, through the chairman of the audit committee, of the content and scope of the discrepancy, and shall also
endeavor to ensure that the external auditor likewise discloses its considerations in this regard.

 

		4.	The annual accounts and the management report of the Company shall be reviewed
by the external auditor, appointed by the shareholders at the general shareholders’
meeting prior to the end of the fiscal year to be audited, for a specified term in accordance with applicable law.

 

Article 63. Approval of the accounts and allocation of
results

 

		1.	The annual accounts shall be submitted to the shareholders for approval at the general shareholders’
meeting.

 

		2.	Once the annual accounts have been approved, the shareholders at the general shareholders’
meeting shall resolve on the allocation of the results for the fiscal year.

 

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		3.	Dividends may only be distributed out of the earnings for the fiscal year or with
a charge to unappropriated reserves, once the payments required by the law and these bylaws
have been made and provided the shareholders’ equity disclosed in the accounts is not or, as a result of the distribution,
is not reduced to less than the share capital. If there are any losses from prior
fiscal years that reduce the Company’s shareholders’ equity below the amount of the share capital, the earnings shall be used
to offset such losses.

 

		4.	The shareholders at the
general shareholders’ meeting shall decide the amount, time and form of payment of the dividends, which shall be distributed
among the shareholders in proportion to their paid-up capital.

 

		5.	The shareholders at the general shareholders’
meeting and the board of directors may make resolutions as to the distribution of interim dividends, subject to such limitations and in
compliance with such requirements as are established by the law.

 

Article 64. Dividends in kind

 

The dividend and the amounts payable
on account of dividends may be paid in kind in whole or in part, provided that:

 

		(i)	the property or securities to be distributed are of the same nature;

 

		(ii)	they have been admitted to listing on an official market as of the effective date
of the resolution, or liquidity is duly guaranteed by the Company within a maximum period of one year; and

 

		(iii)	they are not distributed for a value that is lower than the value at which they
are recorded on the Company’s balance sheet.

 

Article 65. Deposit of the annual
accounts

 

Within the month following the approval
of the annual accounts, the board of directors shall file with the commercial registry of the place where the registered office of the
Bank is located, for deposit, a certificate setting forth the resolutions adopted at the general shareholders’
meeting approving the annual accounts and setting forth the allocation of

 

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results. It shall also attach to such certificate a copy
of each of such accounts as well as of the management report, if applicable, and of the external auditors’
report.

 

Section 2. Dissolution
and liquidation of the Company

 

Article 66. Dissolution of the Company

 

The Company shall be dissolved in
the instances and subject to the requirements established by applicable law.

 

Article 67. Liquidators

 

		1.	Once the Company has been dissolved, all of the members of the board of directors
whose appointment is current and registered with the commercial registry shall become liquidators by operation of law, unless the shareholders
acting at a general shareholders’ meeting have appointed other liquidators
in the resolution providing for the dissolution of the Company.

 

		2.	If there is not an odd number of directors, the youngest director shall not act
as liquidator.

 

Article 68. Representation of the
dissolved Company

 

In the event of dissolution of the
Company, each of the liquidators acting jointly and severally shall have the power to represent it.

 

Article 69. Supervening assets and
liabilities

 

		1.	If corporate property appears after the entries relating to the Company have been
cancelled, the liquidators shall assign to the former shareholders the additional share to which they may be entitled, for which purpose
such property shall be first converted into cash where necessary.

 

After the passage of six months
from the date on which the liquidators were required to comply with the provisions of the foregoing, without the former shareholders having
been assigned the additional share, or in the absence of liquidators, any interested
party may file a petition with the court of the place where the company’s

 

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last registered office was located for the appointment of
a person to replace the liquidators in the performance of their duties.

 

		2.	The former shareholders shall be jointly and severally liable for all unpaid corporate
liabilities up to the amount of what they may have received as their share in liquidation, without prejudice to the liability of the liquidators
in the event of fraudulent or negligent conduct.

 

		3.	In order to comply with formal requirements relating to legal acts performed prior
to the cancellation of the entries of the Company, or whenever necessary, the former liquidators may formalize legal acts in the name
of the defunct company following its cancellation in the registry. In the absence of liquidators, any interested party may file a petition
for formalization by the court of the place where the last registered office of the Company was located.

 

Section 3. General provisions

 

Article 70. Forum

 

The shareholders hereby waive the
jurisdiction otherwise applicable to them and expressly submit to the jurisdiction of the courts sitting in the place where the registered
office of the Bank is located.

 

Article 71. Communications

 

Without prejudice to the provisions
of these bylaws with respect to proxy-granting, distance voting, and attendance
at shareholders’ meetings via teleconference, any required or voluntary communications and information among the company,
its shareholders, and the directors, regardless of the party issuing or receiving them, may be effected by electronic or data-transmission
means, except in the cases expressly excluded by the law and respecting at all times the guarantees of security and the rights of shareholders,
to which end the board of directors may establish appropriate technical mechanisms and procedures, which it shall publish
on the Company’s website.

 

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