Document:

EX-4.1

 Exhibit 4.1 
  

 
  

HSBC HOLDINGS PLC, 
 as Issuer 

THE BANK OF NEW YORK MELLON, LONDON BRANCH, 

as Trustee 
 HSBC BANK USA,
NATIONAL ASSOCIATION, 
 as Paying Agent, Registrar and Calculation Agent 

 
  

THIRTEENTH SUPPLEMENTAL INDENTURE 

Dated as of May 29, 2019 
  

 
 To the Senior
Indenture, dated as of August 26, 2009, 
 among the Issuer, the Trustee and the Paying Agent, Registrar and Exchange Rate Agent 

£750,000,000 3.000% Resettable Senior Unsecured Notes due 2030 
  

 
  

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
		
	 ARTICLE 1 DEFINITIONS 
	  	 	3	 
		
	 SECTION 1.01. Definition of Terms
	  	 	3	 
	 SECTION 1.02. Supplemental Definitions
	  	 	4	 
		
	 ARTICLE 2 THE NOTES 
	  	 	7	 
		
	 SECTION 2.01. Terms relating to principal and interest on the Notes.
	  	 	7	 
	 SECTION 2.02. General terms applicable to the Notes
	  	 	8	 
		
	 ARTICLE 3 INTEREST CALCULATION IN RESPECT OF THE NOTES 
	  	 	9	 
		
	 SECTION 3.01. Interest Rate on the Notes.
	  	 	9	 
	 SECTION 3.02. Calculation Agent.
	  	 	10	 
		
	 ARTICLE 4 AMENDMENTS TO THE BASE INDENTURE APPLICABLE TO THE NOTES ONLY

	  	 	12	 
		
	 SECTION 4.01. Definitions.
	  	 	12	 
	 SECTION 4.02. Redemption of Debt Securities.
	  	 	12	 
	 SECTION 4.03. Events of Default and Defaults.
	  	 	12	 
		
	 ARTICLE 5 MISCELLANEOUS 
	  	 	14	 
		
	 SECTION 5.01. Effect of this Supplemental Indenture; Ratification and Integral Part
	  	 	14	 
	 SECTION 5.02. Priority
	  	 	14	 
	 SECTION 5.03. Successors and Assigns
	  	 	14	 
	 SECTION 5.04. Subsequent Holders’ Agreement
	  	 	14	 
	 SECTION 5.05. Compliance
	  	 	14	 
	 SECTION 5.06. Relation to Calculation Agent Agreement
	  	 	14	 
	 SECTION 5.07. Governing Law
	  	 	14	 
	 SECTION 5.08. Counterparts
	  	 	15	 
	 SECTION 5.09. Entire Agreement
	  	 	15	 
		
	 EXHIBIT A – Form of 3.000% Resettable Senior Unsecured Notes due 2030
	  			

 THIRTEENTH SUPPLEMENTAL INDENTURE, dated as of May 29, 2019 (this “Supplemental
Indenture”), by and among HSBC Holdings plc, a public limited company duly organized and existing under the laws of England and Wales (the “Company”), having its principal office at 8 Canada Square, London E14 5HQ, England,
The Bank of New York Mellon, London Branch, a New York banking corporation, as trustee (the “Trustee”), having its principal corporate trust office at 101 Barclay Street, Floor 7-East, New
York, New York 10286, and HSBC Bank USA, National Association, as Paying Agent, Registrar and Calculation Agent (together, the “Agent”), having its principal office at 452 Fifth Avenue, New York, New York 10018. 

W I T N E S S E T H: 

WHEREAS, the Company, the Trustee and the Agent have executed and delivered an indenture dated as of August 26, 2009 (as amended
or supplemented from time to time, the “Base Indenture” and, together with this Supplemental Indenture, the “Indenture”), to provide for the issuance of the Company’s Debt Securities; 

WHEREAS, Section 9.01(5) of the Base Indenture provides that the Company and the Trustee may enter into a supplemental indenture
to establish the forms or terms of the Debt Securities of any series without the consent of the Holders as permitted under Sections 2.01 and 3.01 of the Base Indenture; 

WHEREAS, the Company desires to issue one series of Debt Securities under the Base Indenture (as supplemented and amended by this
Supplemental Indenture), the £750,000,000 3.000% Resettable Senior Unsecured Notes due 2030 (such series of Debt Securities, the “Notes”), such series to be issued pursuant to this Supplemental Indenture; 

WHEREAS, all conditions and requirements necessary to make this Supplemental Indenture a valid and binding instrument in accordance
with the terms of the Base Indenture have been performed and fulfilled and the execution and delivery hereof have been in all respects duly authorized; 

NOW, THEREFORE, each party agrees as follows for the benefit of the other parties and the equal and ratable benefit of the Holders.

 ARTICLE 1 

DEFINITIONS 

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

(a)    capitalized terms used herein but not otherwise defined shall have the meanings assigned to them in
the Base Indenture; 
 (b)    all other terms used herein that are defined in the Trust Indenture Act,
either directly or by reference therein, have the meanings assigned to them therein; 
 (c)    the
singular includes the plural and vice versa; 
 (d)    the use of “or” is not intended to be
exclusive unless expressly indicated otherwise; 
 (e)    the section headings herein are for convenience
only and shall not affect the construction of this Supplemental Indenture; 

  
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 (f)    wherever the words “include,”
“includes” or “including” are used in this Supplemental Indenture, they shall be deemed to be followed by the words “without limitation”; 

(g)    the words “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; and 

(h)    references herein to a specific Section, Article or Exhibit refer to Sections or
Articles of, or an Exhibit to, this Supplemental Indenture, unless otherwise specified. 

SECTION 1.02.    Supplemental Definitions. The following definitions shall apply to the Notes
only: 
 (a)    “Adjusted Reset Date” has the meaning set forth in
Section 3.01(b); 
 (b)    “Agent” has the meaning set forth
in the introduction to this Supplemental Indenture; 
 (c)    “Alternative Base Rate”
means the rate that has replaced LIBOR in customary market usage for determining floating interest rates in respect of bonds denominated in the Applicable Currency or, if the Independent Financial Adviser or the Company (in consultation with the
Calculation Agent and acting in good faith and a commercially reasonable manner), as applicable, determine that there is no such rate, such other rate as the Independent Financial Adviser or the Company (in consultation with the Calculation Agent
and acting in good faith and a commercially reasonable manner), as applicable, determine in its or the Company’s sole discretion is most comparable to LIBOR. If the Alternative Base Rate is determined, such Alternative Base Rate will be the
Alternative Base Rate for the entire Reset Period; 
 (d)    “Alternative Screen Page”
means the alternative screen page, information service or source on which the Alternative Base Rate appears (or such other page, information service or source as may replace the alternative screen page, information service or source, in each case,
as may be nominated by the person providing or sponsoring the information appearing on such page for purposes of displaying comparable rates); 

(e)    “Applicable Currency” means Pounds Sterling. 

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

(g)    “Calculation Agent” means HSBC Bank USA, National Association, or its successor
appointed by the Company pursuant to the Calculation Agent Agreement; 
 (h)    “Calculation
Agent Agreement” means the Calculation Agent agreement dated as of the Issue Date between the Company and the Calculation Agent; 

(i)    “Calculation Changes” has the meaning set forth in
Section 3.02(c); 
 (j)    “Capital Instruments Regulations”
means any regulatory capital rules, regulations or standards which are applicable to the Company at any time (on a solo or consolidated basis and including any implementation thereof or supplement thereto by the

  
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PRA from time to time) and which lay down the requirements to be fulfilled by financial instruments for inclusion in the Company’s regulatory capital (on a solo or consolidated basis) as may
be required by (i) the CRR and/or (ii) the CRD, including (for the avoidance of doubt) any delegated acts and implementing acts made by the European Commission (such as regulatory technical standards and implementing technical standards)
and European Banking Authority guidelines all as amended from time to time and as implemented in the United Kingdom; 

(k)    “Clearing Systems” means Clearstream Luxembourg and Euroclear; 

(l)    “Clearing System Business Day” means a day on which each Clearing System for which
any global security is being held is open for business; 
 (m)    “Clearstream
Luxembourg” means Clearstream Banking S.A.; 
 (n)    “Common Depositary” means
HSBC Bank plc, or any successor in such capacity, as common depositary for the Clearing Systems; 

(o)    “Company” has the meaning set forth in the introduction to this Supplemental
Indenture; 
 (p)    “CRD” means Directive 2013/36/EU of the European Parliament and of
the Council of June 26, 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC, as amended, and repealing Directives 2006/48/EC and
2006/49/EC, as amended, supplemented or replaced from time to time, and (where relevant) any applicable successor EU or UK legislation; 

(q)    “CRD IV” means, taken together, (i) the CRR, (ii) the CRD and
(iii) the Capital Instruments Regulations; 
 (r)    “CRR” means regulation (EU) No
575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms and amending regulation (EU) No 648/2012, as amended, supplemented or replaced from time to time,
and (where relevant) any applicable successor EU or UK legislation; 

(s)    “Euroclear” means Euroclear Bank SA/NV; 

(t)    “HSBC Group” means the Company together with its subsidiary undertakings; 

(u)    “Independent Financial Adviser” means an independent financial institution of
international repute or other independent financial adviser experienced in the international capital markets, in each case appointed by the Company at the Company’s own expense; 

(v)    “Initial Interest Rate” means 3.000% per annum; 

(w)    “Interest Payment Date” means May 29 of each year, beginning on May 29, 2020;

 (x)    “Issue Date” means May 29, 2019. 

  
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 (y)    “LIBOR” means the interest rate
benchmark known as the London interbank offered rate, which is calculated and published by a designated distributor (on the Issue Date, Thomson Reuters) in accordance with the requirements from time to time of ICE Benchmark Administration Limited
(or any other person which takes over the administration of that rate) based on the estimated interbank borrowing rate for the Applicable Currency that is provided by a panel of contributor banks; 

(z)    “London Banking Day” means any day on which dealings in the Applicable Currency are
transacted in the London interbank market; 
 (aa)    “Loss Absorption Regulations”
means, at any time, the laws, regulations, requirements, guidelines, rules, standards and policies from time to time relating to minimum requirements for own funds and eligible liabilities and/or loss absorbing capacity instruments in effect in the
United Kingdom, including, without limitation to the generality of the foregoing, any delegated or implementing acts (such as implementing or regulatory technical standards) adopted by the European Commission and applicable to the Company from time
to time (whether or not such requirements, guidelines or policies are applied generally or specifically to the Company or to the Company and any of its holding or subsidiary companies or any subsidiary of any such holding company); 

(bb)    “Margin” means 1.770% per annum. 

(cc)    “Maturity Date” means May 29, 2030; 

(dd)    “Notes” has the meaning set forth in the recitals to this Supplemental Indenture;

 (ee)     “Optional Redemption Date” has the meaning set forth in
Section 4.02; 
 (ff)    “PRA” means the UK Prudential
Regulation Authority or any successor entity; 
 (gg)    “Reference Banks” has the
meaning set forth in Section 3.02(a); 
 (hh)     “Regulated
Entity” means any BRRD Undertaking as such term is defined under the PRA Rulebook promulgated by the PRA, as amended from time to time, which includes certain credit institutions, investment firms, and certain of their parent or holding
companies or any comparable future definition intended to designate entities within the scope of the UK recovery and resolution regime; 

(ii)    “Relevant Regulator” means the PRA or any successor entity or other entity
primarily responsible for the prudential supervision of the Company; 
 (jj)    “Relevant
Rules” means, at any time, the laws, regulations, requirements, guidelines and policies relating to capital adequacy (including, without limitation, as to leverage) then in effect in the United Kingdom including, without limitation to the
generality of the foregoing, as may be required by CRD IV or BRRD or any applicable successor legislation or any delegated or implementing acts (such as regulatory technical standards) adopted by the European Commission and applicable to the Company
from time to time and any regulations, requirements, guidelines and policies relating to capital adequacy adopted by the Relevant Regulator from time to time (whether or not such requirements, guidelines or policies are applied generally or
specifically to the Company or to the Company and any of its holding or subsidiary companies or any subsidiary of any such holding company); 

  
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 (kk)    “Relevant Screen Page” has the
meaning set forth in Section 3.02(a); 
 (ll)    “Relevant Supervisory
Consent” means as (and to the extent) required, a consent or waiver to the relevant redemption or purchase from the Relevant Regulator or the relevant UK resolution authority (as applicable). For the avoidance of doubt, Relevant Supervisory
Consent will not be required if either (i) none of the Notes qualify as part of the Company’s regulatory capital, or own funds and eligible liabilities or loss absorbing capacity instruments, as the case may be, each pursuant to the Loss
Absorption Regulations, (ii) the relevant Notes are repurchased for market-making purposes in accordance with any permission given by the Relevant Regulator pursuant to the Relevant Rules (including, without limitation, Article 29(3) of
Commission Delegated Regulation (EU) No. 241/2014) within the limits prescribed in such permission or (iii) the relevant Notes are being redeemed or repurchased pursuant to any general prior permission granted by the Relevant Regulator or
the relevant UK resolution authority (as applicable) pursuant to the Relevant Rules or the Loss Absorption Regulations within the limits prescribed in such permission; 

(mm)    “Reset Date” means May 29, 2029; 

(nn)    “Reset Determination Cut-off Date” has the
meaning set forth in Section 3.02(b); 
 (oo)    “Reset Determination
Date” means the second London Banking Day preceding the Reset Date; 
 (pp)    “Reset
Period” means the period from (and including) the Reset Date to (but excluding) the Maturity Date; 

(qq)    “Trustee” has the meaning set forth in the introduction to this Supplemental
Indenture; and 
 (rr)    “UK Bail-in Power”
means any write-down, conversion, transfer, modification, or suspension power existing from time to time under, and exercised in compliance with, any laws, regulations, rules or requirements in effect in the United Kingdom, relating to the
transposition of the BRRD or otherwise, including but not limited to the Banking Act and the instruments, rules and standards created thereunder, pursuant to which (i) any obligation of a Regulated Entity (or other affiliate of such Regulated
Entity) can be reduced, cancelled, modified, or converted into shares, other securities, or other obligations of such Regulated Entity or any other person (or suspended for a temporary period); and (ii) any right in a contract governing an
obligation of a Regulated Entity may be deemed to have been exercised. 
 ARTICLE 2 

THE NOTES 

SECTION 2.01.    Terms relating to principal and interest on the Notes. 

The following terms relating to the Notes are hereby established: 

  
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 (a)    the title of the Notes shall be “3.000%
Resettable Senior Unsecured Notes due 2030;” 
 (b)    the aggregate principal amount of the Notes
that may be authenticated and delivered under the Indenture shall not initially exceed £750,000,000 (except as otherwise provided in the Indenture); 

(c)    the principal on the Notes shall be payable on the Maturity Date; 

(d)    interest on the Notes shall be payable annually in arrear on May 29 of each year, beginning on
May 29, 2020, and the interest rate on the Notes shall be determined as set forth in Section 3.01; 

(e)    the Regular Record Dates for the Notes shall be the close of business (in the relevant Clearing
System) on the Clearing System Business Day immediately preceding each Interest Payment Date (or, if the Notes are held in definitive form, the 15th calendar day preceding each Interest Payment
Date, whether or not a Business Day). 
 SECTION 2.02.    General terms applicable to the Notes 

The following terms relating to the Notes are hereby established: 

(a)    the Notes shall be issued on the Issue Date; 

(b)    principal of, and any interest on, the Notes shall be paid to the Holder through the Agent in its
capacity as Paying Agent, having offices in New York City, New York; 
 (c)    the Notes shall not be
redeemable except as provided in Article Eleven of the Base Indenture, as amended by Section 4.01. The Notes shall not be redeemable at the option of the Holders at any time. Notwithstanding anything to the contrary in the
Indenture or the Notes, including Section 11.01 of the Base Indenture, the Company may only redeem or repurchase the Notes prior to the Maturity Date pursuant to Article Eleven of the Base Indenture if the Company has obtained any Relevant
Supervisory Consent; 
 (d)    the Notes are not issued as Discount Debt Securities or as Indexed
Securities and are not subject to a Solvency Condition; 
 (e)    the Company shall have no obligation to
redeem or purchase the Notes pursuant to any sinking fund or analogous provision; 
 (f)    the Notes
shall be issued only in denominations of £100,000 and integral multiples of £1,000 in excess thereof; 

(g)    the Notes shall be denominated in the Applicable Currency; 

(h)    the payment of principal of, and interest on, the Notes shall be payable only in the coin or
currency in which the Notes are denominated which, pursuant to clause (g) above, shall be in the Applicable Currency; 

(i)    the Notes shall not be converted into or exchanged at the option of the Company or otherwise for
stock or other securities of the Company pursuant to Article Twelve of the Base Indenture; 

  
 8 

 (j)    the Notes shall be issued in the form of one or
more global securities in registered form, without coupons attached, and the initial Holder with respect to each such global security shall be HSBC Issuer Services Common Depository Nominee (UK) Limited, a nominee of the Common Depositary. Any
proposed transfer of an interest in Notes held in the form of a global security deposited with the Common Depositary shall be effected in the ordinary way following the applicable rules and operating procedures of Clearstream Luxembourg and/or
Euroclear; 
 (k)    except in limited circumstances, the Notes will not be issued in definitive form;

 (l)    the Notes shall be evidenced by one or more global securities in registered form substantially
in the form of Exhibit A; 
 (m)    to the fullest extent permitted by law, the Holders and the
Trustee, in respect of any claims of such Holders to payment of any principal, premium or interest in respect of the Notes, by their acceptance of the Notes, shall be deemed to have waived any right of
set-off or counterclaim that such Holders or, as the case may be, the Trustee in such respect, might otherwise have; and 

(n)    members of the HSBC Group other than the Company may purchase or otherwise acquire any of the Notes
then Outstanding at the same or differing prices in the open market, negotiated transactions or otherwise without giving prior notice to or obtaining any consent from Holders, in accordance with the Relevant Rules and, if required, subject to
obtaining any Relevant Supervisory Consent. 
 ARTICLE 3 

INTEREST CALCULATION IN RESPECT OF THE NOTES 

SECTION 3.01.    Interest Rate on the Notes. 

(a)     

(i)    From (and including) the Issue Date to (but excluding) the Reset Date, the interest rate on the
Notes shall be the Initial Interest Rate. From (and including) the Reset Date to (but excluding) the Maturity Date, the per annum interest rate shall be equal to the sum of (i) the Mid-Market Swap Rate on
the Reset Determination Date and (ii) the Margin. The interest rate on the Notes during the Reset Period shall in no event be higher than the maximum rate permitted by law or lower than 0% per annum. 

(ii)    Notwithstanding Section 3.01 of the Base Indenture, interest on the Notes will be computed on
the basis of the actual number of days in the period for which interest is being calculated divided by the actual number of days from and including the last day interest was paid on the Notes, to but excluding the next scheduled Interest Payment
Date. 
 (b)    If any scheduled Interest Payment Date is not a Business Day, the Company shall pay
interest on the next succeeding Business Day, but interest on that payment shall not accrue during the period from and after the scheduled Interest Payment Date. If the date of redemption or repayment is not a Business Day, the Company shall pay
interest and principal on the next succeeding Business Day, but interest on that payment shall not accrue during the period from and after the date of redemption or repayment. If the Reset Date is not a Business

  
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Day, the Reset Date shall occur on the next succeeding Business Day (the “Adjusted Reset Date”). For the avoidance of doubt, if the Reset Date is not a Business Day and
accordingly the Reset Date occurs on the Adjusted Reset Date, the annual payment of interest on the next Interest Payment Date shall reflect interest for the entire Reset Period (including any portion of the Reset Period occurring between the
originally scheduled Reset Date and the Adjusted Reset Date) at the interest rate determined based on the Adjusted Reset Date, and not at the Initial Interest Rate. In addition and for the avoidance of doubt, in connection with any optional
redemption of the Notes, if the Reset Date is not a Business Day, as described above, the Company shall pay interest together with the principal on the Adjusted Reset Date, but interest on that payment shall not accrue during the period from and
after the Reset Date. 
 SECTION 3.02.    Calculation Agent. 

(a)    The “Mid-Market Swap Rate” is the Mid-Market Swap Rate Quotation that appears for “GBP LIBOR IRS & Swap Spreads” as displayed on the Bloomberg ICAP page (or such other page as may replace such page on Bloomberg or such other
information service, in each case, as may be nominated by the person providing or sponsoring the information appearing on such page for purposes of displaying comparable rates) (the “Relevant Screen Page”) as of approximately 11:00
a.m. (London time) on the Reset Determination Date, all as determined by the Calculation Agent; provided, however, that if no such rate appears on the Relevant Screen Page for a one-year term,
then the Mid-Market Swap Rate shall be determined through the use of straight-line interpolation by reference to two rates, one of which shall be determined in accordance with the above provisions, but as if
the Reset Period were the period of time for which rates are available next shorter than the length of the actual Reset Period and the other of which shall be determined in accordance with the above provisions, but as if the Reset Period were the
period of time for which rates are available next longer than the length of the actual Reset Period; provided further that if on the Reset Determination Date the Relevant Screen Page is not available or the Mid-Market Swap Rate does not appear on the Relevant Screen Page, subject to the first proviso in the definition of Mid-Market Swap Rate Quotation, the Calculation Agent shall
request the principal office in London of four major banks in the swap, money, securities or other market most closely connected with the relevant Mid-Market Swap Rate (as selected by the Company on the advice
of an investment bank of international repute) (the “Reference Banks”) to provide it with its Mid-Market Swap Rate Quotation as of approximately 11:00 a.m. (London time) on the Reset
Determination Date. If two or more of the Reference Banks provide the Calculation Agent with Mid-Market Swap Rate Quotations, the interest rate for the Reset Period shall be the sum of (i) the Margin and
(ii) the arithmetic mean) of the relevant Mid-Market Swap Rate Quotations, as determined by the Calculation Agent. If only one or none of the Reference Banks provides the Calculation Agent with a Mid-Market Swap Rate Quotation, the interest rate shall be determined to be the Initial Interest Rate. 

(b)    A “Mid-Market Swap Rate Quotation” means a
quotation (expressed as a percentage rate per annum) for the mean of the bid and offered rates for the fixed leg payable semi-annually (calculated on the basis of the actual number of days in the relevant period from (and including) the date on
which interest begins to accrue to (but excluding) the date on which it falls due divided by 365) of a fixed-for-floating interest rate swap transaction in the
Applicable Currency which transaction (i) has a one-year term commencing on the Reset Date, (ii) is in an amount that is representative for a single transaction in the Applicable Currency swap rate
market at 11:00 a.m. (London time) with an acknowledged dealer of good credit in the swap market and (iii) has a floating leg based on six-month LIBOR (calculated on the basis of the actual number of days
in the relevant period from (and including) the date on which 

  
 10 

 
interest begins to accrue to (but excluding) the date on which it falls due divided by 365); provided that, notwithstanding the second proviso in the definition of Mid-Market Swap Rate, if the Company (in consultation with the Calculation Agent) determines that the Mid-Market Swap Rate has ceased to be published on the Relevant Screen
Page as a result of LIBOR ceasing to be calculated or administered for publication, the Company shall use reasonable efforts to appoint an Independent Financial Adviser to determine the Alternative Base Rate and the Alternative Screen Page by no
later than five Business Days prior to the Reset Determination Date (the “Reset Determination Cut-off Date”). If the Company is unable to appoint an Independent Financial Adviser, or if the
Independent Financial Adviser fails to determine the Alternative Base Rate and the Alternative Screen Page prior to the Reset Determination Cut-off Date, Company shall determine the Alternative Base Rate and
the Alternative Screen Page for the Reset Period. In either case, the Mid-Market Swap Rate Quotation shall then be the quotation for the mean of bid and offered rates determined as provided above but as if the
reference to LIBOR was a reference to the Alternative Base Rate on the Alternative Screen Page with any required Calculation Changes. Notwithstanding the foregoing, if the Company does not determine the Alternative Base Rate and the Alternative
Screen Page prior to the Reset Determination Date, the interest rate for the Reset Period shall be equal to the Initial Interest Rate. 

(c)    If the Independent Financial Adviser or the Company determines the Alternative Base Rate, the
Independent Financial Adviser or the Company, as applicable, may also, following consultation with the Calculation Agent, make changes to the day count fraction, the business day convention and the definition of Business Day, in each case in order
to follow market practice, as well as any other changes (including to the Margin) that the Company, following consultation with the Independent Financial Adviser (if appointed), determines in good faith are reasonably necessary to ensure the proper
operation of the Alternative Base Rate or the Mid-Market Swap Rate, as well as the comparability of the interest rate determined by reference to the Alternative Base Rate to the interest rate determined by
reference to LIBOR (the “Calculation Changes”). 
 (d)    The Company shall promptly
give notice of the determination of the Alternative Base Rate, the Alternative Screen Page and any Calculation Changes to the Trustee, the Paying Agent, the Calculation Agent and the Holders, provided that failure to provide such
notice shall have no impact on the effectiveness of, or otherwise invalidate, any such determination. 

(e)    All percentages resulting from any calculation in connection with any interest rate on the Notes
shall be rounded, if necessary, to the nearest one hundred thousandth of a percentage point, with five one-millionths of a percentage point rounded upward, and all Applicable Currency amounts shall be rounded
to the nearest pence or cent, as applicable, with one-half pence or one-half cent, as applicable, being rounded upward. 

(f)    All determinations and any calculations made by the Calculation Agent for the purposes of
calculating the applicable interest on the Notes shall be conclusive and binding on the Holders, the Company, the Trustee and the Paying Agent, absent manifest error. The Calculation Agent shall not be responsible to the Company, the Holders or any
third party for any failure of the Reference Banks to provide quotations as requested of them or as a result of the Calculation Agent having acted on any quotation or other information given by any Reference Bank which subsequently may be found to
be incorrect or inaccurate in any way. 

  
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 (g)    By its acquisition of the Notes, each Holder
(which, for these purposes, includes each beneficial owner) (i) acknowledges, accepts, consents and agrees to be bound by the Independent Financial Adviser’s or the Company’s determination of the Alternative Base Rate, the Alternative
Screen Page and any Calculation Changes, including as may occur without any prior notice from the Company and without the need for the Company to obtain any further consent from such Holder, (ii) waives any and all claims, in law and/or in
equity, against the Trustee, the Paying Agent and the Calculation Agent for, agrees not to initiate a suit against the Trustee, the Paying Agent and the Calculation Agent in respect of, and agrees that none of the Trustee, the Paying Agent or the
Calculation Agent shall be liable for, the determination of or the failure to determine any Alternative Base Rate, any Alternative Screen Page, and any Calculation Changes and any losses suffered in connection therewith and (iii) agrees that
none of the Trustee, the Paying Agent or the Calculation Agent shall have any obligation to determine any Alternative Base Rate, any Alternative Screen Page and any Calculation Changes (including any adjustments thereto), including in the event of
any failure by the Company to determine any Alternative Base Rate, any Alternative Screen Page and any Calculation Changes. The Trustee shall be entitled to rely on this deemed consent in connection with any supplemental indenture and/or amendment
to the Indenture or the Notes necessary to effectuate any Alternative Base Rate, any Alternative Screen Page or any Calculation Changes. 

ARTICLE 4 
 AMENDMENTS
TO THE BASE INDENTURE 
 APPLICABLE TO THE NOTES ONLY 

SECTION 4.01.    Definitions. With respect to the Notes only: 

(a)    Any reference to “Depositary” in the Base Indenture and any amendment thereto shall be
deemed to refer to the Clearing Systems; 
 (b)    Any reference to “DTC” in the Base Indenture
and any amendment thereto shall be deemed to refer to the Clearing Systems. 
 SECTION 4.02.    Redemption of
Debt Securities. With respect to the Notes only, Article Eleven of the Base Indenture is amended by adding Section 11.09, which shall read as follows:  

Section 11.09.     Optional Redemption of the Notes. The Company may redeem the Notes in
whole (but not in part) in its sole discretion on the Reset Date (the “Optional Redemption Date”). The redemption price shall be equal to 100% of their principal amount plus any accrued and unpaid interest to (but excluding) the
Optional Redemption Date. 
 SECTION 4.03.    Events of Default and Defaults. With respect to the
Notes only, Article Five of the Base Indenture is amended by amending and restating Section 5.01 in its entirety, which shall read as follows: 

Section 5.01.     Events of Default and Defaults. 

(i)    An “Event of Default” with respect to the Notes means any one of the following events:

 (A)    an order is made by an English court which is not successfully appealed within 30 days after
the date such order was made for winding up of the Company other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency; or 

  
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 (B)    an effective resolution is validly adopted by
the Company’s shareholders for winding up of the Company other than in connection with a scheme of amalgamation or reconstruction not involving bankruptcy or insolvency. 

(ii)    A “Default” with respect to the Notes means any one of the following events: 

(A)    failure to pay principal or premium, if any, on the Notes at maturity, and such default continues
for a period of 30 days; or 
 (B)    failure to pay any interest on the Notes when due and payable,
which failure continues for 30 days. 
 (iii)    If a Default occurs, the Trustee may institute
proceedings in England (but not elsewhere) for the Company’s winding-up; provided that the Trustee may not, upon the occurrence of a Default, accelerate the maturity of any Notes then Outstanding,
unless an Event of Default has occurred and is continuing. 
 (iv)    Notwithstanding the foregoing,
failure to make any payment in respect of the Notes shall not be a Default in respect of the Notes if such payment is withheld or refused: 

(A)    in order to comply with any fiscal or other law or regulation or with the order of any court of
competent jurisdiction, in each case applicable to such payment; or 
 (B)    in case of doubt as to the
validity or applicability of any such law, regulation or order, in accordance with advice given as to such validity or applicability at any time during the said grace period of 30 days by independent legal advisers acceptable to the Trustee; 

provided, however, that the Trustee may, by notice to the Company, require the Company to take such action (including but not
limited to proceedings for a declaration by a court of competent jurisdiction) as the Trustee may be advised in an opinion of counsel, upon which opinion the Trustee may conclusively rely, is appropriate and reasonable in the circumstances to
resolve such doubt, in which case the Company shall forthwith take and expeditiously proceed with such action and shall be bound by any final resolution of the doubt resulting therefrom. If any such resolution determines that the relevant payment
can be made without violating any applicable law, regulation or order then the preceding sentence shall cease to have effect and the payment shall become due and payable on the expiration of the relevant grace period of 30 days after the Trustee
gives written notice to the Company informing the Company of such resolution. 
 (v)    Agreements
with Respect to the Events of Default and Defaults. 
 By its acquisition of the Notes, each Holder (which, for these
purposes, includes each beneficial owner), to the extent permitted by the Trust Indenture Act, will waive any and all claims, in law and/or in equity, against the Trustee for, agree not to initiate a suit against the Trustee in respect of, and agree
that the Trustee will not be liable for, any action that the Trustee takes, or abstains from taking, in either case in accordance with the exercise of the limited remedies available under the Indenture and the Notes for a non-payment of principal and/or interest on the Notes. 

  
 13 

 ARTICLE 5 

MISCELLANEOUS 

SECTION 5.01.    Effect of this Supplemental Indenture; Ratification and Integral Part. This Supplemental
Indenture shall become effective upon its execution and delivery. 
 Except as hereby amended, the Base Indenture is in all respects
ratified and confirmed and all the terms, provisions and conditions thereof (including any prior amendments thereto) shall be, and remain in, full force and effect, including, without limitation, Section 4.06 of the first supplemental indenture
dated March 8, 2016 (amending the Base Indenture to add Section 15) and Section 4.01 of the second supplemental indenture dated May 25, 2016 (amending Section 6.07 of the Base Indenture). This Supplemental Indenture shall be
deemed an integral part of the Base Indenture in the manner and to the extent herein and therein provided. 

SECTION 5.02.    Priority. This Supplemental Indenture shall be deemed part of the Base Indenture in the
manner and to the extent herein and therein provided. The provisions of this Supplemental Indenture shall, with respect to the Notes and as otherwise provided herein and subject to the terms hereof, supersede the provisions of the Base Indenture to
the extent the Base Indenture is inconsistent herewith. 
 SECTION 5.03.    Successors and Assigns. All
covenants and agreements in the Base Indenture, as supplemented and amended by this Supplemental Indenture, by the Company shall bind its successors and assigns, whether so expressed or not. 

SECTION 5.04.    Subsequent Holders’ Agreement. Any Holder (which, for these purposes, includes each
beneficial owner of the Notes) that acquires the Notes in the secondary market and any successors, assigns, heirs, executors, administrators, trustees in bankruptcy and legal representatives of any Holder or beneficial owner of the Notes shall be
deemed to acknowledge, agree to be bound by and consent to the same provisions specified herein to the same extent as the Holders or beneficial owners of the Notes that acquire the Debt Securities upon their initial issuance, including, without
limitation, with respect to the acknowledgement and agreement to be bound by and consent to the terms of the Notes related to the UK Bail-in Power, LIBOR and the limited remedies available under the Indenture
and the Notes for a non-payment of principal and/or interest on the Notes. 

SECTION 5.05.    Compliance. The Agent shall be entitled to take any action or to refuse to take any action
which the Agent regards as necessary for the Agent to comply with any applicable law, regulation or fiscal requirement, court order, or the rules, operating procedures or market practice of any relevant stock exchange or other market or clearing
system. 
 SECTION 5.06.    Relation to Calculation Agent Agreement. In the event of any conflict between
the Indenture and the Calculation Agent Agreement relating to the rights or obligations of the Calculation Agent in the Indenture in connection with the calculation of the interest rate on the Notes, the relevant terms of the Calculation Agent
Agreement shall govern such rights and obligations. 
 SECTION 5.07.    Governing Law. This Supplemental
Indenture and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York. 

  
 14 

 SECTION 5.08.    Counterparts. This Supplemental
Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. 

SECTION 5.09.    Entire Agreement. This Supplemental Indenture constitutes the entire agreement of the parties
hereto with respect to the Notes and the amendments to the Base Indenture set forth herein. 

  
 15 

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

			
	 HSBC HOLDINGS PLC,

        as Issuer
  

	By:	 	 /s/ Iain MacKinnon

	Name:	 	Iain MacKinnon
	Title:	 	Group Treasurer

  

			
	 THE BANK OF NEW YORK MELLON, LONDON BRANCH,

        as Trustee
  

	By:	 	 /s/ Jonathan Rogers

	Name:	 	Jonathan Rogers
	Title:	 	Authorised Signatory

  

			
	 HSBC BANK USA, NATIONAL ASSOCIATION,

        as Paying Agent, Registrar and Calculation Agent

 

	By:	 	 /s/ Deirdra N. Ross

	Name:	 	Deirdra N. Ross
	Title:	 	Vice President

  
 [Signature Page to
the Thirteenth Supplemental Indenture] 

 EXHIBIT A 

FORM OF 3.000% RESETTABLE GLOBAL SECURITY 

CUSIP No.: 404280CD9 

ISIN: XS2003500142 
 THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS GLOBAL SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED,
AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

BY ITS ACQUISITION OF THE DEBT SECURITIES REPRESENTED BY THIS GLOBAL SECURITY, EACH HOLDER (WHICH, FOR THESE PURPOSES, INCLUDES EACH BENEFICIAL OWNER OF THE
DEBT SECURITIES) ACKNOWLEDGES, ACCEPTS, CONSENTS AND AGREES, NOTWITHSTANDING ANY OTHER TERM OF THE DEBT SECURITIES, THE INDENTURE OR ANY OTHER AGREEMENTS, ARRANGEMENTS OR UNDERSTANDINGS BETWEEN THE ISSUER AND ANY HOLDER, TO BE BOUND BY (A) THE
EFFECT OF THE EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK RESOLUTION AUTHORITY THAT MAY INCLUDE AND RESULT IN ANY OF THE FOLLOWING, OR SOME COMBINATION THEREOF: (I) THE REDUCTION OF ALL, OR A
PORTION, OF THE AMOUNTS DUE (AS DEFINED ON THE REVERSE OF THIS GLOBAL SECURITY); (II) THE CONVERSION OF ALL, OR A PORTION, OF THE AMOUNTS DUE INTO THE ISSUER’S OR ANOTHER PERSON’S ORDINARY SHARES, OTHER SECURITIES OR OTHER OBLIGATIONS (AND
THE ISSUE TO, OR CONFERRAL ON, THE HOLDER OF SUCH ORDINARY SHARES, OTHER SECURITIES OR OTHER OBLIGATIONS), INCLUDING BY MEANS OF AN AMENDMENT, MODIFICATION OR VARIATION OF THE TERMS OF THE DEBT SECURITIES OR THE INDENTURE; (III) THE
CANCELLATION OF THE DEBT SECURITIES; AND/OR (IV) THE AMENDMENT OR ALTERATION OF THE MATURITY OF THE DEBT SECURITIES OR AMENDMENT OF THE AMOUNT OF INTEREST PAYABLE ON THE DEBT SECURITIES, OR THE INTEREST PAYMENT DATES, INCLUDING BY SUSPENDING
PAYMENT FOR A TEMPORARY PERIOD; AND (B) THE VARIATION OF THE TERMS OF THE DEBT SECURITIES OR THE INDENTURE, IF NECESSARY, TO GIVE EFFECT TO THE EXERCISE OF ANY UK BAIL-IN POWER BY THE RELEVANT UK
RESOLUTION AUTHORITY. 
 THERE IS NO RIGHT OF ACCELERATION IN THE CASE OF NON-PAYMENT OF PRINCIPAL AND/OR INTEREST
ON THE NOTES OR OF THE COMPANY’S FAILURE TO PERFORM ANY OF ITS OBLIGATIONS UNDER OR IN RESPECT OF THE NOTES. PAYMENT OF THE PRINCIPAL AMOUNT OF THE NOTES MAY BE ACCELERATED ONLY UPON CERTAIN EVENTS OF A
WINDING-UP AS SET FORTH IN THE INDENTURE. 

  
 A-1 

 GLOBAL SECURITY 

HSBC Holdings plc 

£[●] 
 3.000%
RESETTABLE SENIOR UNSECURED NOTES DUE 2030 
 This is a Global Security in respect of a duly authorized issue by HSBC Holdings plc (the
“Issuer,” which term includes any successor Person under the Indenture hereinafter referred to) of debt securities, designated as specified in the title hereof, in the aggregate face amount of £[●] (the “Debt
Securities”). 
 The Issuer, for value received, hereby promises to pay HSBC Issuer Services Common Depository Nominee (UK) Limited, or
registered assigns on May 29, 2030 (the “Maturity Date”) or on such earlier date as this Global Security may be redeemed, the principal amount hereof and to pay interest on the said principal amount from May 29, 2019 (the
“Issue Date”) or the most recent Interest Payment Date on which interest has been paid or duly provided for until maturity in accordance with the following provisions: 

(1)    Interest on the Debt Securities shall be payable annually in arrear on May 29 of each year, beginning on May 29,
2020. 
 (2)    From (and including) Issue Date to (but excluding) the Reset Date, the interest rate on the Debt
Securities shall be 3.000% per annum (the “Initial Interest Rate”). During the Reset Period, the per annum interest rate shall be equal to the sum of (i) the Mid-Market Swap Rate on the
Reset Determination Date and (ii) 1.770% (the “Margin”). The interest rate on the Debt Securities during the Reset Period shall in no event be higher than the maximum rate permitted by law or lower than 0% per annum. 

(3)    Interest on the Debt Securities shall be calculated on the basis of the actual number of days in the period for
which interest is being calculated divided by the actual number of days from and including the last day interest was paid on the Debt Securities, to but excluding the next scheduled Interest Payment Date. 

(4)    If any scheduled Interest Payment Date is not a Business Day, the Issuer shall pay interest on the next succeeding
Business Day, but interest on that payment shall not accrue during the period from and after the scheduled Interest Payment Date. If the date of redemption or repayment is not a Business Day, the Issuer shall pay interest and principal on the next
succeeding Business Day, but interest on that payment shall not accrue during the period from and after the date of redemption or repayment. If the Reset Date is not a Business Day, the Reset Date shall occur on the next succeeding Business Day (the
“Adjusted Reset Date”). For the avoidance of doubt, if the Reset Date is not a Business Day and accordingly the Reset Date occurs on the Adjusted Reset Date, the annual payment of interest on the next Interest Payment Date shall
reflect interest for the entire Reset Period (including any portion of the Reset Period occurring between the originally scheduled Reset Date and the Adjusted Reset Date) at the interest rate determined based on the Adjusted Reset Date, and not at
the Initial Interest Rate. In addition and for the avoidance of doubt, in connection with any optional redemption of the Debt Securities, if the Reset Date is not a Business Day, as described above, the Issuer shall pay interest together with the
principal on the Adjusted Reset Date, but interest on that payment shall not accrue during the period from and after the Reset Date. 

“Reset Date” means May 29, 2029. 

  
 A-2 

 “Reset Determination Date” means the second London Banking Day immediately
preceding the Reset Date. 
 “Reset Period” means the period from (and including) the Reset Date to (but excluding) the
Maturity Date. 
 The “Mid-Market Swap Rate” is the
Mid-Market Swap Rate Quotation that appears for “GBP LIBOR IRS & Swap Spreads” as displayed on the Bloomberg ICAP page (or such other page as may replace such page on Bloomberg or such other
information service, in each case, as may be nominated by the person providing or sponsoring the information appearing on such page for purposes of displaying comparable rates) (the “Relevant Screen Page”) as of approximately 11:00
a.m. (London time) on the Reset Determination Date, all as determined by the Calculation Agent; provided, however, that if no such rate appears on the Relevant Screen Page for a one-year term, then the Mid-Market Swap Rate will be determined through the use of straight-line interpolation by reference to two rates, one of which will be determined in accordance with the above provisions, but as if the Reset Period
were the period of time for which rates are available next shorter than the length of the actual Reset Period and the other of which will be determined in accordance with the above provisions, but as if the Reset Period were the period of time for
which rates are available next longer than the length of the actual Reset Period; provided further that if on the Reset Determination Date the Relevant Screen Page is not available or the Mid-Market Swap Rate
does not appear on the Relevant Screen Page, subject to the first proviso in the definition of Mid-Market Swap Rate Quotation below, the Calculation Agent will request the principal office in London of four
major banks in the swap, money, securities or other market most closely connected with the relevant Mid-Market Swap Rate (as selected by the Issuer on the advice of an investment bank of international repute)
(the “Reference Banks”) to provide it with its Mid-Market Swap Rate Quotation as of approximately 11:00 a.m. (London time) on the Reset Determination Date. If two or more of the Reference
Banks provide the Calculation Agent with Mid-Market Swap Rate Quotations, the interest rate for the Reset Period will be the sum of the Margin and the arithmetic mean of the relevant Mid-Market Swap Rate Quotations, as determined by the Calculation Agent. If only one or none of the Reference Banks provides the Calculation Agent with a Mid-Market Swap Rate
Quotation, the interest rate will be determined to be the Initial Interest Rate. 
 A
“Mid-Market Swap Rate Quotation” means a quotation (expressed as a percentage rate per annum) for the mean of the bid and offered rates for the fixed leg payable semi- annually (calculated on
the basis of the actual number of days in the relevant period from (and including) the date on which interest begins to accrue to (but excluding) the date on which it falls due divided by 365) of a fixed-for-floating interest rate swap transaction in the Applicable Currency which transaction (i) has a one-year term commencing on the Reset Date, (ii) is
in an amount that is representative for a single transaction in the Applicable Currency swap rate market at 11:00 a.m. (London time) with an acknowledged dealer of good credit in the swap market and (iii) has a floating leg based on six-month LIBOR (calculated on the basis of the actual number of days in the relevant period from (and including) the date on which interest begins to accrue to (but excluding) the date on which it falls due divided
by 365); provided that, notwithstanding the second proviso in the definition of Mid-Market Swap Rate, if the Issuer (in consultation with the Calculation Agent) determine that the Mid-Market Swap Rate has ceased to be published on the Relevant Screen Page as a result of LIBOR ceasing to be calculated or administered for publication, the Issuer will use reasonable efforts to appoint an
Independent Financial Adviser to determine the Alternative Base Rate and the Alternative Screen Page by no later than five Business Days prior to the Reset Determination Date (the “Reset Determination
Cut-off Date”). If the Issuer is unable to appoint an Independent Financial Adviser, or if the Independent Financial Adviser fails to determine the Alternative Base Rate and the Alternative Screen
Page prior to the Reset Determination Cut-off Date, the Issuer will determine the Alternative Base Rate and the Alternative Screen Page for the Reset Period. In either case, the
Mid-Market Swap Rate Quotation will then be the quotation for the mean of bid and offered rates determined as provided above 

  
 A-3 

 
but as if the reference to LIBOR was a reference to the Alternative Base Rate on the Alternative Screen Page with any required Calculation Changes (as defined below). Notwithstanding the
foregoing, if the Issuer does not determine the Alternative Base Rate and the Alternative Screen Page prior to the Reset Determination Date, the interest rate for the Reset Period will be equal to the Initial Interest Rate. 

If the Independent Financial Adviser or the Issuer determines the Alternative Base Rate, the Independent Financial Adviser or the Issuer, as
applicable, may also, following consultation with the Calculation Agent, make changes to the day count fraction, the business day convention and the definition of business day, in each case in order to follow market practice, as well as any other
changes (including to the Margin) that the Issuer, following consultation with the Independent Financial Adviser (if appointed), determine in good faith are reasonably necessary to ensure the proper operation of the Alternative Base Rate or the Mid-Market Swap Rate, as well as the comparability of the interest rate determined by reference to the Alternative Base Rate to the interest rate determined by reference to LIBOR (the “Calculation
Changes”). 
 The Issuer shall promptly give notice of the determination of the Alternative Base Rate, the Alternative Screen Page and
any Calculation Changes to the Trustee, the Paying Agent, the Calculation Agent and the Holders; provided that failure to provide such notice shall have no impact on the effectiveness of, or otherwise invalidate, any such determination. 

All percentages resulting from any calculation in connection with any interest rate in respect of this Global Security shall be rounded, if
necessary, to the nearest one hundred thousandth of a percentage point, with five one-millionths of a percentage point rounded upward (for example, 9.876545% (or 0.09876545) would be rounded to 9.87655% (or
0.0987655)), and all the Applicable Currency amounts shall be rounded to the nearest pence or cent, as applicable, with one-half pence or one-half cent, as applicable,
being rounded upward. 
 All determinations and any calculations made by the Calculation Agent for the purposes of calculating the
applicable interest on this Global Security shall be conclusive and binding on the Holders, the Issuer, the Trustee and the Paying Agent, absent manifest error. The Calculation Agent shall not be responsible to the Issuer, the Holders or any third
party for any failure of the Reference Banks to provide quotations as requested of them or as a result of the Calculation Agent having acted on any quotation or other information given by any Reference Bank which subsequently may be found to be
incorrect or inaccurate in any way. 
 Each Holder of the Debt Securities (which, for these purposes, includes each beneficial owner of the
Debt Securities) (i) acknowledges, accepts, consents and agrees to be bound by the Independent Financial Adviser’s or the Issuer’s determination of the Alternative Base Rate, the Alternative Screen Page and any Calculation Changes,
including as may occur without any prior notice from the Issuer and without the need for the Issuer to obtain any further consent from such Holder, (ii) waives any and all claims, in law and/or in equity, against the Trustee, the Paying Agent
and the Calculation Agent for, agrees not to initiate a suit against the Trustee, the Paying Agent and the Calculation Agent in respect of, and agrees that none of the Trustee, the Paying Agent or the Calculation Agent shall be liable for, the
determination of or the failure to determine any Alternative Base Rate, any Alternative Screen Page, and any Calculation Changes and any losses suffered in connection therewith and (iii) agrees that none of the Trustee, the Paying Agent or the
Calculation Agent shall have any obligation to determine any Alternative Base Rate, any Alternative Screen Page and any Calculation Changes (including any adjustments thereto), including in the event of any failure by the Issuer to determine any
Alternative Base Rate, any Alternative Screen Page and any Calculation Changes. The Trustee shall be entitled to rely on this deemed consent in connection with any supplemental indenture and/or amendment to the Indenture or the Debt Securities
necessary to effectuate any Alternative Base Rate, any Alternative Screen Page or any Calculation Changes. 

  
 A-4 

 “Alternative Base Rate” means the rate that has replaced LIBOR in customary
market usage for determining floating interest rates in respect of bonds denominated in the Applicable Currency or, if the Independent Financial Adviser or the Issuer (in consultation with the Calculation Agent and acting in good faith and a
commercially reasonable manner), as applicable, determine that there is no such rate, such other rate as the Independent Financial Adviser or the Issuer (in consultation with the Calculation Agent and acting in good faith and a commercially
reasonable manner), as applicable, determine in its or the Issuer’s sole discretion is most comparable to LIBOR. If the Alternative Base Rate is determined, such Alternative Base Rate will be the Alternative Base Rate for the entire Reset
Period. 
 “Alternative Screen Page” means the alternative screen page, information service or source on which the
Alternative Base Rate appears (or such other page, information service or source as may replace the alternative screen page, information service or source, in each case, as may be nominated by the person providing or sponsoring the information
appearing on such page for purposes of displaying comparable rates). 
 “Applicable Currency” means Pounds Sterling. 

“Independent Financial Adviser” means an independent financial institution of international repute or other independent
financial adviser experienced in the international capital markets, in each case appointed by the Issuer at the Issuer’s own expense. 

“LIBOR” means the interest rate benchmark known as the London interbank offered rate, which is calculated and published by a
designated distributor (on the Issue Date, Thomson Reuters) in accordance with the requirements from time to time of ICE Benchmark Administration Limited (or any other person which takes over the administration of that rate) based on the estimated
interbank borrowing rate for the Applicable Currency that is provided by a panel of contributor banks. 
 “London Banking
Day” means any day on which dealings in the Applicable Currency are transacted in the London interbank market. 
 Interest in
respect of this Global Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name this Global Security (or one or more Predecessor Global Securities) is registered at
the close of business on the Regular Record Date for such interest. 
 Payment of interest, if any, in respect of this Global Security may
be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Register, or by wire transfer or transfer by any other means to an account designated in writing by such Person to the Paying Agent at least 15
days prior to such payment date. 
 Any interest in respect of this Global Security that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holders thereof on the relevant Regular Record Date by virtue of their having been such Holders; and such
Defaulted Interest may be paid by the Issuer, at its election in each case, as provided in Clause (1) or (2) below: 
  

	 	(1)	 The Issuer may elect to make payment of such Defaulted Interest to the Persons in whose names this Global
Security (or its respective Predecessor Global Securities) is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the manner provided for in the Indenture.

  
 A-5 

	 	(2)	 The Issuer may make payment of any Defaulted Interest on this Global Security in any other lawful manner not
inconsistent with the requirements of any securities exchange on which this Global Security may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Issuer to the Trustee of the proposed payment pursuant
to this clause, such manner of payment shall be deemed practicable by the Trustee. 

 All payments made under or with
respect to this Global Security shall be paid by the Issuer, without deduction or withholding for, or on account of, any and all present and future taxes, levies, imposts, duties, charges, fees, deductions or withholdings whatsoever imposed, levied,
collected, withheld or assessed by or on behalf of the United Kingdom or any political subdivision or taxing authority thereof or therein having the power to tax (each, a “Taxing Jurisdiction”), unless required by law. If such
deduction or withholding shall at any time be required by the law of the Taxing Jurisdiction, the Issuer shall pay such additional amounts in respect of any payments of principal or interest on this Global Security (“Additional
Amounts”) as may be necessary so that the net amounts (including Additional Amounts) paid to the Holders, after such deduction or withholding, shall be equal to the respective amounts of principal or interest which the Holders would have
been entitled to receive in respect of this Global Security in the absence of such deduction or withholding; provided that the foregoing shall not apply to any such tax, levy, impost, duty, charge, fee, deduction or withholding which:
(i) would not be payable or due but for the fact that the Holder or the beneficial owner of this Global Security is domiciled in, or is a national or resident of, or engaging in business or maintaining a permanent establishment or being
physically present in, the Taxing Jurisdiction or otherwise has some connection or former connection with the Taxing Jurisdiction other than the holding or ownership of this Global Security, or the collection of principal or interest payments on, or
the enforcement of, this Global Security; (ii) would not be payable or due but for the fact that this Global Security (x) is presented for payment in the Taxing Jurisdiction or (y) is presented for payment more than 30 days after the
date payment became due or was provided for, whichever is later, except to the extent that the Holder would have been entitled to such Additional Amount on presenting the same for payment at the close of such 30 day period; (iii) would not have
been imposed if presentation for payment of this Global Security had been made to a paying agent other than the paying agent to which the presentation was made; (iv) is imposed in respect of a Holder that is not the sole beneficial owner of the
principal or the interest, or a portion of either, or that is a fiduciary or partnership, but only to the extent that a beneficiary or settlor with respect to the fiduciary, a beneficial owner or member of the partnership would not have been
entitled to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment; (v) is imposed because of the failure to comply by the Holder or the
beneficial owner of this Global Security or the beneficial owner of any payment on this Global Security with a request from the Issuer addressed to the Holder or the beneficial owner, including a written request from the Issuer related to a claim
for relief under any applicable double tax treaty (x) to provide information concerning the nationality, residence, identity or connection with a taxing jurisdiction of the Holder or the beneficial owner or (y) to make any declaration or
other similar claim to satisfy any information or reporting requirement, if the information or declaration is required or imposed by a statute, treaty, regulation, ruling or administrative practice of the Taxing Jurisdiction as a precondition to
exemption from withholding or deduction of all or part of the tax, duty, assessment or other governmental charge; (vi) is imposed in respect of any estate, inheritance, gift, sale, transfer, personal property, wealth or similar tax, duty,
assessment or other governmental charge; or (vii) is imposed in respect of any combination of the above items. 
 Whenever in this
Global Security there is mentioned, in any context, the payment of any principal or interest on or in respect of any Debt Security or the net proceeds received on the sale or exchange of any Debt Security, such mention shall be deemed to include
mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof and express mention of the payment of Additional Amounts (if applicable) in any provisions hereof
shall not be construed as excluding Additional Amounts in those provisions hereof where such express mention is not made. 

  
 A-6 

 Upon any exchange of a portion of this Global Security for a definitive Debt Security, the
portion of the principal amount hereof so exchanged shall be endorsed by the Registrar on Schedule A hereto. The principal amount hereof shall be reduced for all purposes by the amount so exchanged and endorsed. 

Reference is hereby made to the further provisions of this Global Security set forth on the reverse hereof, which further provisions shall for
the purposes hereof have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been executed
by the Trustee or an authenticating agent by manual signature, this Global Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purposes. 

  
 A-7 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed under its
corporate seal. 
  

			
	
		
	By:	 	  

	[●]	 	

  

			
	HSBC Holdings plc,
	as Issuer

 Dated: May 29, 2019 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Debt Securities of a series issued under the within-mentioned Indenture. 

 

			
	
		
	By:	 	  

	[●]	 	

 Dated: May 29, 2019 
  

			
	 The Bank of New York Mellon, London Branch,

as Trustee

  
 A-8 

 REVERSE OF GLOBAL SECURITY 

£ [●] 
 3.000% FIXED
RATE/FLOATING RATE SENIOR UNSECURED NOTES DUE 2030 
 This Global Security is one of a duly authorized issue of Debt Securities issued and
to be issued in one or more series under and governed by an Indenture dated as of August 26, 2009 (as amended or supplemented from time to time), by and among the Issuer, The Bank of New York Mellon, London Branch, as trustee (the
“Trustee,” which term includes any successor trustee under the Indenture), and HSBC Bank USA, National Association (“HBUS”), as registrar and paying agent (the “Base Indenture”), as amended and
supplemented by a Thirteenth Supplemental Indenture dated as of May 29, 2019 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), among the Issuer, the Trustee and HBUS, as paying
agent, registrar and Calculation Agent (the “Agent”), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Issuer, the Trustee, the Holders and of the terms upon which the Debt Securities are, and are to be, authenticated and delivered. 

Under the terms of the Indenture, the Debt Securities may be redeemed, in whole but not in part, at the Issuer’s option, on not less than
30 nor more than 60 days’ notice, at any time at a redemption price equal to the principal amount thereof, together with accrued interest, if any, to the date fixed for redemption, if, at any time, the Issuer determines that: 

(a) in making payment under the Debt Securities in respect of principal (or premium, if any) or interest the Issuer has or
shall or would become obligated to pay Additional Amounts as provided in the Indenture and in this Global Security provided such obligation results from a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the official
application or interpretation of such laws (including a decision of any court or tribunal), or any change in, or in the official application or interpretation of, or execution of, or amendment to, any treaty or treaties affecting taxation to which
the United Kingdom is a party, which change, amendment or execution becomes effective after the Issue Date; or 
 (b) the
payment of interest in respect of the Debt Securities has become or will or would be treated as a “distribution” within the meaning of Section 1000 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory modification
or reenactment thereof for the time being) as a result of a change in or amendment to the laws of the Taxing Jurisdiction, or any change in the official application or interpretation of such laws, including a decision of any court, which change or
amendment becomes effective on or after the Issue Date; provided, however that, in the case of (a) above, no notice of redemption shall be given earlier than 90 days prior to the earliest date on which the Issuer would be obliged
to pay such Additional Amounts were a payment in respect of the Debt Securities then due. 
 Under the terms of the Indenture, the Debt
Securities may be redeemed, in whole but not in part, at the Issuer’s sole discretion, on not less than 30 nor more than 60 days’ notice, on the Reset Date (the “Optional Redemption Date”). The redemption price shall be
equal to 100% of their principal amount plus any accrued and unpaid interest to (but excluding) the Optional Redemption Date. 

Notwithstanding anything to the contrary in the Indenture, the Issuer may only redeem or repurchase the Debt Securities prior to the Maturity
Date pursuant to the Indenture if the Issuer has obtained any Relevant Supervisory Consent. 

  
 A-9 

 An “Event of Default” with respect to the Debt Securities means any one of
the following events: (A) an order is made by an English court which is not successfully appealed within 30 days after the date such order was made for winding up of the Issuer other than in connection with a scheme of amalgamation or
reconstruction not involving bankruptcy or insolvency; or (B) an effective resolution is validly adopted by the Issuer’s shareholders for winding up of the Issuer other than in connection with a scheme of amalgamation or reconstruction not
involving bankruptcy or insolvency. 
 A “Default” with respect to the Debt Securities means any one of the following
events: (A) failure to pay principal or premium, if any, on the Debt Securities at maturity, and such default continues for a period of 30 days; or (B) failure to pay any interest on the Debt Securities when due and payable, which failure
continues for 30 days. 
 If a Default occurs, the Trustee may institute proceedings in England (but not elsewhere) for the Issuer’s winding-up; provided that the Trustee may not, upon the occurrence of a Default, accelerate the maturity of any Debt Securities then Outstanding, unless an Event of Default has occurred and is continuing.

 Notwithstanding the immediately preceding two paragraphs, failure to make any payment in respect of the Debt Securities shall not be a
Default in respect of the Debt Securities if such payment is withheld or refused: (A) in order to comply with any fiscal or other law or regulation or with the order of any court of competent jurisdiction, in each case applicable to such
payment; or (B) in case of doubt as to the validity or applicability of any such law, regulation or order, in accordance with advice given as to such validity or applicability at any time during the said grace period of 30 days by independent
legal advisers acceptable to the Trustee; provided, however, that the Trustee may, by notice to the Issuer, require the Issuer to take such action (including but not limited to proceedings for a declaration by a court of competent
jurisdiction) as the Trustee may be advised in an opinion of counsel, upon which opinion the Trustee may conclusively rely, is appropriate and reasonable in the circumstances to resolve such doubt, in which case the Issuer shall forthwith take and
expeditiously proceed with such action and shall be bound by any final resolution of the doubt resulting therefrom. If any such resolution determines that the relevant payment can be made without violating any applicable law, regulation or order
then the preceding sentence shall cease to have effect and the payment shall become due and payable on the expiration of the relevant grace period of 30 days after the Trustee gives written notice to the Issuer informing the Issuer of such
resolution. 
 “Loss Absorption Regulations” means, at any time, the laws, regulations, requirements, guidelines, rules,
standards and policies from time to time relating to minimum requirements for own funds and eligible liabilities and/or loss absorbing capacity instruments in effect in the United Kingdom, including, without limitation to the generality of the
foregoing, any delegated or implementing acts (such as implementing or regulatory technical standards) adopted by the European Commission and applicable to the Issuer from time to time (whether or not such requirements, guidelines or policies are
applied generally or specifically to the Issuer or to the Issuer and any of its holding or subsidiary companies or any subsidiary of any such holding company). 

By its acquisition of the Debt Securities represented by this Global Security, each Holder (which, for these purposes, includes each
beneficial owner of the Debt Securities) acknowledges, accepts, consents and agrees to be bound by the terms of the Debt Securities related to the limited remedies available under the Indenture and the Debt Securities for a non-payment of principal and/or interest on the Debt Securities. 
 If an Event of Default with respect to
the Debt Securities of this series shall occur and be continuing, the principal of all of the Debt Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture and this Global Security. The
Indenture provides that in certain circumstances such declaration and its consequences may be rescinded and annulled by the Holders of a 

  
 A-10 

 
majority in aggregate principal amount of the Outstanding Debt Securities of such series. If a Default with respect to Debt Securities of this series occurs and is continuing, the Trustee may
pursue certain remedies as set forth in the Indenture. The Holders of not less than a majority in aggregate principal amount of the Outstanding Debt Securities of this series may on behalf of all the Holders waive any past Event of Default or any
Default under the Indenture or the Debt Securities and its consequences except a default (i) in the payment of principal of (or premium, if any, on) or any installment of interest on any of the Debt Securities or (ii) in respect of a
covenant or provision which under the Indenture cannot be modified or amended without the consent of the Holder of this Debt Security, and any such consent or waiver shall bind every future Holder of this Debt Security and of any Debt Security
issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Debt Security or such other Debt Securities. 

The Indenture contains provisions permitting the Issuer and the Trustee (i) without the consent of the Holders of any Debt Securities
issued under the Indenture to execute one or more supplemental indentures for certain enumerated purposes, such as to cure any ambiguity or to secure the Debt Securities, and (ii) with the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series of Debt Securities affected thereby, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of modifying in any manner the rights of Holders under the Indenture; provided that, with respect to certain enumerated provisions, no such supplemental indenture may be entered into without the consent of the
Holder of each Outstanding Debt Security affected thereby. The Indenture also permits the Holders of at least a majority in aggregate principal amount of the Outstanding Debt Securities of each series to be affected, on behalf of the Holders of all
Debt Securities of such series, to waive compliance by the Issuer with certain restrictive provisions of the Indenture. Any such consent or waiver by the Holder of this Global Security shall bind every future Holder of this Global Security and of
any Global Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Global Security or such other Global Securities. 

Subject to the terms of the Indenture, the Depositary may surrender this Global Security or any portion hereof in exchange, in whole or in
part, for definitive Debt Securities, of this series in registered form and the Registrar, acting on behalf of the Issuer, shall authenticate and deliver in exchange for this Global Security or the portions thereof to be exchanged, an equal
aggregate face amount of definitive Debt Securities (duly countersigned) in the numbers and in the names advised by the Depositary. 
 By
its acquisition of the Debt Securities represented by this Global Security, each Holder (which, for these purposes, includes each beneficial owner of the Debt Securities) acknowledges, accepts, consents and agrees, notwithstanding any other term of
the Debt Securities, the Indenture or any other agreements, arrangements or understandings between the Issuer and any Holder, to be bound by (a) the effect of the exercise of any UK Bail-in Power by the
Relevant UK Resolution Authority that may include and result in any of the following, or some combination thereof: (i) the reduction of all, or a portion, of the Amounts Due; (ii) the conversion of all, or a portion, of the Amounts Due
into the Issuer’s or another Person’s ordinary shares, other securities or other obligations (and the issue to, or conferral on, the Holder of such ordinary shares, other securities or other obligations), including by means of an
amendment, modification or variation of the terms of the Debt Securities or the Indenture; (iii) the cancellation of the Debt Securities; and/or (iv) the amendment or alteration of the maturity of the Debt Securities or amendment of the
amount of interest payable on the Debt Securities, or the Interest Payment Dates, including by suspending payment for a temporary period; and (b) the variation of the terms of the Debt Securities or the Indenture, if necessary, to give effect
to the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority. No repayment or payment of Amounts Due shall become due and payable or be paid after the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority if and to the extent such amounts have 

  
 A-11 

 
been reduced, converted, cancelled, amended or altered as a result of such exercise. Moreover, each Holder (which, for these purposes, includes each beneficial owner of the Debt Securities)
consents to the exercise of any UK Bail-in Power as it may be imposed without any prior notice by the Relevant UK Resolution Authority of its decision to exercise such power with respect to the Debt
Securities. 
 “Amounts Due” means the principal amount of, and any accrued but unpaid interest, including any Additional
Amounts, on, the Debt Securities. References to such amounts will include amounts that have become due and payable, but which have not been paid, prior to the exercise of any UK Bail-in Power by the Relevant
UK Resolution Authority. 
 “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of
credit institutions and investment firms, as amended, supplemented or replaced from time to time. 
 “UK Bail-in Power” means any write-down, conversion, transfer, modification or suspension power existing from time to time under, and exercised in compliance with, any laws, regulations, rules or requirements
in effect in the United Kingdom, relating to the transposition of the BRRD or otherwise, including but not limited to the Banking Act and the instruments, rules and standards created thereunder, pursuant to which (i) any obligation of a
Regulated Entity (or other affiliate of such Regulated Entity) can be reduced, cancelled, modified or converted into shares, other securities or other obligations of such Regulated Entity or any other person (or suspended for a temporary period);
and (ii) any right in a contract governing an obligation of a Regulated Entity may be deemed to have been exercised. 

“PRA” means the UK Prudential Regulation Authority or any successor entity. 

“Regulated Entity” means any BRRD Undertaking as such term is defined under the PRA Rulebook promulgated by the PRA, as
amended from time to time, which includes certain credit institutions, investment firms and certain of their parent or holding companies or any comparable future definition intended to designate entities within the scope of the UK recovery and
resolution regime. 
 “Relevant Regulator” means the PRA or any successor entity or other entity primarily responsible for
the prudential supervision of the Issuer. 
 “Relevant Rules” means, at any time, the laws, regulations, requirements,
guidelines and policies relating to capital adequacy (including, without limitation, as to leverage) then in effect in the United Kingdom including, without limitation to the generality of the foregoing, as may be required by CRD IV or BRRD or any
applicable successor legislation or any delegated or implementing acts (such as regulatory technical standards) adopted by the European Commission and applicable to the Issuer from time to time and any regulations, requirements, guidelines and
policies relating to capital adequacy adopted by the Relevant Regulator from time to time (whether or not such requirements, guidelines or policies are applied generally or specifically to the Issuer or to the Issuer and any of its holding or
subsidiary companies or any subsidiary of any such holding company). 
 “Relevant Supervisory Consent” means as (and to the
extent) required, a consent or waiver to the relevant redemption or purchase from the Relevant Regulator or the relevant UK resolution authority (as applicable). For the avoidance of doubt, Relevant Supervisory Consent will not be required if either
(i) none of the Debt Securities qualify as part of the Issuer’s regulatory capital, or own funds and eligible liabilities or loss absorbing capacity instruments, as the case may be, each pursuant to the Loss Absorption Regulations,
(ii) the relevant Debt Securities are repurchased for market-making purposes in accordance with any permission given by the Relevant Regulator pursuant to the Relevant Rules (including, without limitation, Article 29(3) of Commission Delegated
Regulation (EU) No. 241/2014) within the limits prescribed in such permission or (iii) the relevant Debt Securities are being redeemed or repurchased 

  
 A-12 

 
pursuant to any general prior permission granted by the Relevant Regulator or the relevant UK resolution authority (as applicable) pursuant to the Relevant Rules or the Loss Absorption
Regulations within the limits prescribed in such permission. 
 “Relevant UK Resolution Authority” means any authority with
the ability to exercise a UK Bail-in Power. 
 By its acquisition of the Debt Securities, each
Holder (which, for these purposes, includes each beneficial owner of the Debt Securities): (i) acknowledges and agrees that the exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with
respect to the Debt Securities shall not give rise to a Default or Event of Default for purposes of Section 315(b) (Notice of Default) and Section 315(c) (Duties of the Trustee in Case of Default) of the Trust Indenture Act;
(ii) to the extent permitted by the Trust Indenture Act, waives any and all claims, in law and/or in equity, against the Trustee for, agrees not to initiate a suit against the Trustee in respect of, and agrees that the Trustee shall not be
liable for, any action that the Trustee takes, or abstains from taking, in either case in accordance with the exercise of (x) the UK Bail-in Power by the Relevant UK Resolution Authority with respect to
the Debt Securities or (y) the limited remedies available under the Indenture and the Debt Securities for a non-payment of principal and/or interest on the Debt Securities; and (iii) acknowledges and
agrees that, upon the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority, the Trustee shall not be required to take any further directions from Holders under Section 4.11 (Control
by Holders of Debt Securities) of the Base Indenture; and that the Indenture shall not impose any duties upon the Trustee whatsoever with respect to the exercise of any UK Bail-in Power by the Relevant UK
Resolution Authority. 
 Notwithstanding clause (iii) of the immediately preceding paragraph, if, following the completion of the
exercise of the UK Bail-in Power by the Relevant UK Resolution Authority, the Debt Securities remain outstanding (for example, if the exercise of the UK Bail-in Power
results in only a partial write-down of the principal of the Debt Securities), then the Trustee’s duties under the Indenture shall remain applicable with respect to the Debt Securities following such completion to the extent that the Issuer and
the Trustee shall agree pursuant to a supplemental indenture or an amendment to the Indenture; provided, however that notwithstanding the exercise of the UK Bail-in Power by the Relevant UK
Resolution Authority, there shall at all times be a Trustee hereunder pursuant to, and in accordance with Section 6.09 of the Base Indenture, and the resignation and/or removal of the Trustee and the appointment of a successor trustee shall
continue to be governed by Section 6.10 and Section 6.11 of the Base Indenture, including to the extent no supplemental indenture or amendment to the Indenture is agreed upon pursuant to the Indenture in the event the Debt Securities
remain outstanding following the completion of the exercise of the UK Bail-in Power. 
 It is the
intention of the Issuer and the Trustee that the Issuer’s obligations to indemnify the Trustee and the Agent in accordance with Section 6.07 of the Base Indenture (for the avoidance of doubt, as amended by Section 4.01 of the second
supplemental indenture dated May 25, 2016) shall survive any exercise of the UK Bail in Power by the Relevant UK Resolution Authority. 

The exercise of the UK Bail-in Power by the Relevant UK Resolution Authority with respect to the Debt
Securities shall not constitute an Event of Default or a Default. 
 In addition to the right to enter into supplemental indentures pursuant
to Section 9.01 and Section 9.02 of the Base Indenture, the Issuer and the Trustee may enter into one or more indentures supplemental to the Indenture to modify and amend the terms of the Indenture or the Debt Securities, without the
further consent of any Holders, to the extent necessary to give effect to the exercise by the Relevant UK Resolution Authority of the UK Bail-in Power. 

  
 A-13 

 Upon the exercise of the UK Bail-in Power by the
Relevant UK Resolution Authority with respect to the Debt Securities, the Issuer shall provide a written notice to the Holders through the Clearing Systems as soon as practicable regarding such exercise of the UK
Bail-in Power for purposes of notifying Holders and beneficial owners of the Debt Securities of such occurrence. The Issuer shall also deliver a copy of such notice to the Trustee for information purposes.

 Upon the exercise of any UK Bail-in Power by the Relevant UK Resolution Authority that results in
the reduction or cancellation of all, or a portion, of the principal amount of this Global Security and/or the conversion of all, or a portion, of the principal amount of this Global Security into shares or other securities or other obligations of
the Issuer or another person, the portion of the principal amount hereof so reduced, cancelled and/or converted shall be endorsed by the Registrar on Schedule B hereto. The principal amount hereof shall be reduced for all purposes by the amount so
reduced, cancelled and/or converted. 
 By its acquisition of a Debt Security, each Holder (which, for these purposes, includes each
beneficial owner of the Debt Securities) of the Debt Securities shall be deemed to have authorized, directed and requested the Clearing Systems and any direct participant in the Clearing Systems or other intermediary through which it holds the Debt
Securities to take any and all necessary action, if required, to implement the exercise of any UK Bail-in Power with respect to the Debt Securities as it may be imposed, without any further action or direction
on the part of such Holder or beneficial owner, the Trustee and the Agent (and any other agent acting in connection with the relevant series of Debt Securities). 

To the fullest extent permitted by law, the Holders and the Trustee, in respect of any claims of such Holders to payment of any
principal, premium or interest in respect of the Debt Securities, by their acceptance of the Debt Securities, shall be deemed to have waived any right of set-off or counterclaim that such Holders or, as the
case may be, the Trustee in such respect, might otherwise have. 
 ANY HOLDER (WHICH, FOR THESE PURPOSES, INCLUDES EACH BENEFICIAL OWNER OF
THE DEBT SECURITIES) THAT ACQUIRES THE DEBT SECURITIES IN THE SECONDARY MARKET AND ANY SUCCESSORS, ASSIGNS, HEIRS, EXECUTORS, ADMINISTRATORS, TRUSTEES IN BANKRUPTCY AND LEGAL REPRESENTATIVES OF ANY HOLDER OR BENEFICIAL OWNER OF THE DEBT SECURITIES
SHALL BE DEEMED TO ACKNOWLEDGE, AGREE TO BE BOUND BY AND CONSENT TO THE SAME PROVISIONS SPECIFIED HEREIN TO THE SAME EXTENT AS THE HOLDERS OR BENEFICIAL OWNERS OF THE DEBT SECURITIES THAT ACQUIRE THE DEBT SECURITIES UPON THEIR INITIAL ISSUANCE,
INCLUDING, WITHOUT LIMITATION, WITH RESPECT TO THE ACKNOWLEDGEMENT AND AGREEMENT TO BE BOUND BY AND CONSENT TO THE TERMS OF THE DEBT SECURITIES RELATED TO THE UK BAIL-IN POWER, LIBOR AND THE LIMITED REMEDIES
AVAILABLE UNDER THE INDENTURE AND THE DEBT SECURITIES FOR A NON-PAYMENT OF PRINCIPAL AND/OR INTEREST ON THE DEBT SECURITIES. 

The Indenture and the Debt Securities may be amended and modified as provided in the Indenture. 

All terms used in this Global Security and not otherwise defined shall have the meanings ascribed to them in the Indenture. 

The Indenture and the Debt Securities shall be governed by, and construed in accordance with, the laws of the State of New York. 

  
 A-14 

 SCHEDULE A 

EXCHANGES FOR DEFINITIVE DEBT SECURITIES 

The following exchanges of parts of this Global Security for Definitive Debt Securities have been made: 

 

									
	 Date Made
	 	 	  	 Principal amount

exchanged for Definitive

Debt Securities
	 	 	  	 Remaining principal

amount following such

exchange

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

  
 A-15 

 SCHEDULE B 

REDUCTION, CANCELLATION OR CONVERSION OF DEBT SECURITIES UPON THE EXERCISE OF ANY UK BAIL-IN POWER BY
THE RELEVANT UK RESOLUTION AUTHORITY 
  

									
	 Date made
	 	 	  	 Principal amount

reduced, cancelled

and/or converted
	 	 	  	 Remaining principal

amount following
 reduction,
cancellation
 and/or conversion

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

	  
	 		  	  
	 		  	  

  
 A-16Ladenburg
Thalmann Financial Services Inc.

 

and

 

U.S.
Bank National Association,

 

as
Trustee

 

FOURTH
SUPPLEMENTAL INDENTURE

 

Dated
as of May 29, 2019

 

to
the Indenture dated as of November 21, 2017

 

7.75%
Senior Notes due 2029

 

    	 	 

    	 

    

 

TABLE
OF CONTENTS

 

	 	Page
	 	 
	Article
    1 APPLICATION OF FOURTH SUPPLEMENTAL INDENTURE	2
	Section
    1.01.	Application
    of Fourth Supplemental Indenture.	2
	 	 	 
	Article
    2 DEFINITIONS	2
	Section
    2.01.	Certain
    Terms Defined in the Indenture.	2
	Section
    2.02.	Definitions	2
	 	 	 
	Article
    3 FORM AND TERMS OF THE NOTES	3
	Section
    3.01.	Form
    and Dating.	3
	Section
    3.02.	Terms
    of the Notes	3
	Section
    3.03.	Optional
    Redemption.	5
	 	 	 
	Article
    4 CERTAIN COVENANTS	5
	Section
    4.01.	Merger,
    Consolidation or Sale of Assets.	5
	Section
    4.02.	Reporting.	6
	Section
    4.03.	Payment
    of Taxes.	6
	 	 	 
	Article
    5 EVENTS OF DEFAULT	7
	Section
    5.01.	Events
    of Default.	7
	 	 	 
	Article
    6 MISCELLANEOUS	8
	Section
    6.01.	Action
    By Consent of the Holders	8
	Section
    6.02.	Trust
    Indenture Act Controls.	9
	Section
    6.03.	New
    York Law to Govern.	9
	Section
    6.04.	Counterparts.	9
	Section
    6.05.	Severability	9
	Section
    6.06.	Ratification.	9
	Section
    6.07.	Effectiveness.	9
	Section
    6.08.	Trustee
    Makes No Representation.	9
	 	 	 
	EXHIBIT A - Form of 7.75% Senior Note due 2029	A-1

 

    	 	i	 

    	 

    

 

fourth
SUPPLEMENTAL INDENTURE

 

FOURTH
SUPPLEMENTAL INDENTURE (this “Fourth Supplemental Indenture”), dated as of May 29, 2019, between Ladenburg Thalmann
Financial Services Inc., a Florida corporation (the “Company”), and U.S. Bank National Association, as trustee (the
“Trustee”).

 

RECITALS
OF THE COMPANY

 

WHEREAS,
the Company and the Trustee executed and delivered an Indenture, dated as of November 21, 2017 (the “Base Indenture”),
as supplemented by the First Supplemental Indenture, dated as of November 21, 2017, as further supplemented by the Second Supplemental
Indenture, dated as of May 30, 2018, as further supplemented by the Third Supplemental Indenture, dated as of August 16, 2018,
and as further supplemented by this Fourth Supplemental Indenture (the “Fourth Supplemental Indenture,” and together
with the Base Indenture, the “Indenture,” for purposes of this Fourth Supplemental Indenture), to provide for the
issuance by the Company from time to time of Securities to be issued in one or more series as provided in the Indenture;

 

WHEREAS,
Section 9.1 of the Base Indenture provides, among other things, that the Company and the Trustee may enter into indentures supplemental
to the Base Indenture, without the consent of any Holders of Securities, to establish the form of any Security, as permitted by
Section 2.2 of the Base Indenture, and to provide for the issuance of the Notes (as defined below), as permitted by Section 2.1
of the Base Indenture, and to set forth the terms thereof;

 

WHEREAS,
the Company desires to execute this Fourth Supplemental Indenture, pursuant to Section 2.1 of the Base Indenture, to establish
the form and, pursuant to Section 2.2 of the Base Indenture, to provide for the issuance, of a series of its senior notes designated
as its 7.75% Senior Notes due 2029 (the “Notes”), in an initial aggregate principal amount of up to $57,500,000. The
Notes are a series of securities as referred to in Section 2.2 of the Base Indenture;

 

WHEREAS,
the Company has requested that the Trustee execute and deliver this Fourth Supplemental Indenture;

 

WHEREAS,
all things necessary have been done by the Company to make this Fourth Supplemental Indenture, when executed and delivered by
the Company, a valid supplement to the Indenture; and

 

WHEREAS,
all things necessary have been done by the Company to make the Notes, when executed by the Company and authenticated and delivered
in accordance with the provisions of the Indenture, the valid obligations of the Company.

 

NOW,
THEREFORE, in consideration of the premises stated herein and the purchase of the Notes by the Holders thereof, the Company and
the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of
the Notes as follows:

 

    	 	1	 

    	 

    

 

Article
1

APPLICATION OF fourth SUPPLEMENTAL INDENTURE

 

Section
1.01. Application of Fourth Supplemental Indenture.

 

Notwithstanding
any other provision of this Fourth Supplemental Indenture, all provisions of this Fourth Supplemental Indenture are expressly
and solely for the benefit of the Holders of the Notes, and any such provisions shall not be deemed to apply to any other securities
issued under the Base Indenture and shall not be deemed to amend, modify or supplement the Base Indenture for any purpose other
than with respect to the Notes. Unless otherwise expressly specified, references in this Fourth Supplemental Indenture to specific
Article numbers or Section numbers refer to Articles and Sections contained in this Fourth Supplemental Indenture as they amend
or supplement the Base Indenture, and not the Base Indenture or any other document. All Initial Notes and Additional Notes, if
any, shall be treated as a single class for all purposes of the Indenture, including waivers, amendments, redemptions and offers
to purchase. To the extent that the provisions of this Fourth Supplemental Indenture conflict with any provision of the Base Indenture,
the provisions of this Fourth Supplemental Indenture shall govern and be controlling, but solely with respect to the Notes.

 

Article
2

DEFINITIONS

 

Section
2.01. Certain Terms Defined in the Indenture.

 

For
purposes of this Fourth Supplemental Indenture, all capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in the Base Indenture, as amended hereby.

 

Section
2.02. Definitions. (a) For the benefit of the Holders of the Notes, the following
terms shall have the meanings set forth in this Section 2.02:

 

“Additional
Notes” has the meaning specified in Section 3.02(b) of this Fourth Supplemental Indenture.

 

“Depositary”
has the meaning specified in Section 3.01(c) of this Fourth Supplemental Indenture.

 

“Global
Notes” means the Notes in the form of Global Securities issued to the Depositary or its nominee, substantially in the form
of Exhibit A.

 

“Initial
Notes” has the meaning specified in Section 3.02(b) of this Fourth Supplemental Indenture. “Notes” has the meaning
specified in the recitals of this Fourth Supplemental Indenture.

 

“person”
has the meaning given thereto in Section 13(d)(3) of the Exchange Act.

 

    	 	2	 

    	 

    

 

Article
3

FORM AND TERMS OF THE NOTES

 

Section
3.01. Form and Dating.

 

(a)
Form of Notes. The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit
A attached hereto. Notwithstanding anything in the Base Indenture to the contrary, the Notes shall be executed on behalf of the
Company by an Officer of the Company. The Notes may have notations, legends or endorsements required by law, stock exchange rules
or usage. Each Note shall be dated the date of its authentication. The Notes and any beneficial interest in the Notes shall be
in minimum denominations of $25 and integral multiples of $25 in excess thereof.

 

(b)
Incorporation of Notes. The terms and notations contained in the Notes shall constitute, and are hereby expressly made,
a part of the Indenture, and the Company and the Trustee, by their execution and delivery of this Fourth Supplemental Indenture,
expressly agree to such terms and provisions and to be bound thereby.

 

(c)
Global Notes. The Notes shall be issued initially in the form of fully registered Global Securities, which shall be deposited
on behalf of the purchasers of the Notes represented thereby with The Depository Trust Company, New York, New York (the “Depositary”),
and registered in the name of Cede & Co., the Depositary’s nominee, duly executed by the Company and authenticated by
the Trustee.

 

(d)
Book-Entry Provisions. This Section 3.01(d) shall apply only to the Global Notes deposited with or on behalf of the Depositary.
The Company shall execute and the Trustee shall, in accordance with this Section 3.01(d), authenticate and deliver the Global
Notes that shall be registered in the name of the Depositary or the nominee of the Depositary and shall be delivered by the Trustee
to the Depositary or pursuant to the Depositary’s instructions.

 

(e)
Registrar, Paying Agent and Notice Agent. The Company initially appoints the Trustee as Registrar where Notes may be surrendered
for registration of transfer or exchange, Paying Agent for the payment of the principal of (and premium, if any) and interest
on the Notes, and Notice Agent where notices and demands to or upon the Company in respect of the Notes and the Indenture may
be delivered. The office of the Trustee at U.S. Bank National Association, 200 South Biscayne Blvd., Suite 1870, Miami, Florida
33131, is hereby designated as the location for the Registrar, Paying Agent and Notice Agent.

 

Section
3.02. Terms of the Notes. The following terms relating to the Notes are hereby established: 

 

(a)
Title. The Notes shall constitute a series of Securities having the title “7.75% Senior Notes due 2029.”

 

(b)
Principal Amount. The aggregate principal amount of the Notes that may be initially authenticated and delivered under the
Indenture (the “Initial Notes”) shall be up to $57,500,0000 (except for Notes authenticated and delivered upon registration
of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 2.8, 2.11, 2.12, 2.14.2, 3.6 or 9.6 of the
Base Indenture). The Company may from time to time, without the consent of the Holders of Notes, issue additional Notes (in any
such case “Additional Notes”) having the same ranking and the same interest rate, Maturity and other terms as the
Initial Notes. Any Additional Notes and the Initial Notes shall constitute a single series under the Indenture and all references
to the Notes shall include the Initial Notes and any Additional Notes unless the context otherwise requires.

 

    	 	3	 

    	 

    

 

(c)
Maturity Date. The entire outstanding principal amount of the Notes shall be payable on June 30, 2029.

 

(d)
Interest Rate. The rate at which the Notes shall bear interest shall be 7.75% per annum; the date from which interest shall
accrue on the Notes shall be May 29, 2019, or the most recent Interest Payment Date to which interest has been paid or provided
for; the Interest Payment Dates for the Notes shall be March 31, June 30, September 30 and December 31 of each year, beginning
September 30, 2019; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid,
in immediately available funds, to the Persons in whose names the Notes (or predecessor Notes) are registered (which shall initially
be the Depositary) at the close of business on the Regular Record Date for such interest, which shall be the March 15, June 15,
September 15 or December 15 (whether or not a Business Day), as the case may be, preceding such Interest Payment Date. Interest
shall be computed on the basis of a 360-day year comprised of twelve 30-day months. For so long as the Notes are represented in
global form by one or more Global Securities, all payments of principal (and premium, if any) and interest shall be made by wire
transfer of immediately available funds to the Depositary or its nominee, as the case may be, as the registered owner of the Global
Security representing such Notes. In the event that definitive Notes shall have been issued, all payments of principal (and premium,
if any) and interest shall be made by wire transfer of immediately available funds to the accounts of the registered Holders thereof;
provided, that the Company may elect to make such payments at the office of the Paying Agent in The City of Miami, Florida; and
provided further, that the Company may at its option pay interest by check to the registered address of each Holder of a definitive
Note.

 

(e)
Currency. The currency of denomination of the Notes is United States Dollars. Payment of principal of and interest and
premium, if any, on the Notes shall be made in United States Dollars.

 

(f)
Sinking Fund. The Notes are not subject to any sinking fund.

 

(g)
Additional Interest. At the Company’s election, the sole remedy with respect to an Event of Default due to a failure
to comply with reporting requirements under the Trust Indenture Act or under Section 4.02 below, for the first 180 calendar days
after the occurrence of such Event of Default, consists exclusively of the right to receive additional interest on the Notes at
an annual rate equal to (1) 0.25% for the first 90 calendar days after such default and (2) 0.50% for calendar days 91 through
180 after such default. On the 181st day after such Event of Default, if such violation is not cured or waived, the Trustee or
the Holders of not less than 25% of the outstanding principal amount of the Notes may declare the principal, together with accrued
and unpaid interest, if any, on the Notes to be due and payable immediately. If the Company chooses to pay such additional interest,
the Company must notify the Trustee and the Holders of the Notes by an Officer’s Certificate with the Company’s election
at any time on or before the close of business on the first business day following the Event of Default.

 

    	 	4	 

    	 

    

 

Section
3.03. Optional Redemption.

 

(a)
The provisions of Article 3 of the Base Indenture, as amended and supplemented by the provisions of this Fourth Supplemental Indenture,
shall apply with respect to the Notes.

 

(b)
The Notes shall be redeemable as a whole or in part at any time and from time to time on or after June 30, 2022 at the Company’s
option, upon notice not fewer than 30 days and not more than 60 days prior to the date fixed for redemption to each Holder of
Notes to be redeemed, at a redemption price equal to the principal amount plus any unpaid interest payable thereon accrued to,
but excluding, the date fixed for redemption.

 

(c)
If less than all of the Notes are to be redeemed, the particular Notes to be redeemed will be selected not more than 45 days prior
to the redemption date by the Trustee from the outstanding Notes not previously called for redemption, by lot, or in the Trustee’s
discretion, on a pro-rata basis, provided that the unredeemed portion of the principal amount of any Notes will be in an authorized
denomination (which will not be less than the minimum authorized denomination) for such Notes. The Trustee will promptly notify
us in writing of the Notes selected for redemption and, in the case of any Notes selected for partial redemption, the principal
amount thereof to be redeemed.

 

(d)
Unless the Company defaults on the payment of the redemption price, on and after the date of redemption, interest will cease to
accrue on the Notes called for redemption.

 

Article
4

CERTAIN COVENANTS

 

The
following covenants shall be applicable to the Company solely with respect to the Notes for so long as any of the Notes are outstanding.
Nothing in this Article will, however, affect the Company’s rights or obligations under any other provision of the Indenture.

 

Section
4.01. Merger, Consolidation or Sale of Assets.

 

Section
5.1 of the Base Indenture is hereby deleted in its entirety and replaced with the following:

 

“Section
5.1 When the Company May Merge, Etc.

 

The
Company shall not merge or consolidate with or into any other person or sell, transfer, lease, convey or otherwise dispose of
all or substantially all of its property (provided that, for the avoidance of doubt, a pledge of assets pursuant to any secured
debt instrument of the Company or its Subsidiaries shall not be deemed to be any such sale, transfer, lease, conveyance or disposition,
but the foreclosure on any such pledge shall be such a sale, transfer, lease, conveyance or disposition) in one transaction or
series of related transactions unless:

 

    	 	5	 

    	 

    

 

(a)
the Company shall be the surviving person or the surviving person (if other than the Company) formed by such merger or consolidation
or to which such sale, transfer, lease, conveyance or disposition is made shall be a corporation or limited liability company
organized and existing under the laws of the United States of America, any state thereof or the District of Columbia;

 

(b)
the surviving person (if other than the Company) expressly assumes, by supplemental indenture in form reasonably satisfactory
to the Trustee, executed and delivered to the Trustee by such surviving person, the due and punctual payment of the principal
of, and premium, if any, and interest on, all the Notes outstanding, and the due and punctual performance and observance of all
the covenants and conditions of the Indenture to be performed by the Company;

 

(c)
immediately before and immediately after giving effect to such transaction or series of related transactions, no Default or Event
of Default shall have occurred and be continuing; and

 

(d)
in the case of such a transaction or series of related transactions where the surviving person is other than the Company, the
Company shall deliver, or cause to be delivered, to the Trustee, an Officer’s Certificate and an Opinion of Counsel, each
stating that such transaction or series of related transactions and the supplemental indenture, if any, in respect thereto comply
with this Section 4.01 and that all conditions precedent in the Indenture relating to such transaction or series of related transactions
have been complied with.

 

Notwithstanding
the above, any Subsidiary of the Company may consolidate with, merge into or transfer all or part of its properties to the Company.
Neither an Officer’s Certificate nor an Opinion of Counsel shall be required to be delivered in connection therewith.”

 

Section
4.02. Reporting.

 

If,
at any time, the Company is not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act to file any
periodic reports with the Securities and Exchange Commission, the Company agrees to furnish to Holders and Trustee, for the period
of time during which the Notes are outstanding, its audited annual consolidated financial statements, within 90 days of its fiscal
year end, and unaudited interim consolidated financial statements, within 45 days of its fiscal quarter end (other than our fourth
fiscal quarter). All such financial statements will be prepared, in all material respects, in accordance with Generally Accepted
Accounting Principles, as applicable.

 

Section
4.03. Payment of Taxes.

 

The
Company will pay or discharge or cause to be paid or discharged, before the same shall become delinquent, all taxes, assessments
and governmental charges levied or imposed upon the Company or upon the income, profits or property of the Company, except where
the failure to do so would not be reasonably expected to have a material adverse effect on the business, assets, financial condition
or results of operations of the Company; provided, however, that the Company shall not be required to pay or discharge or cause
to be paid or discharged any such tax, assessment or charge whose amount, applicability or validity is being contested in good
faith by appropriate proceedings.

 

    	 	6	 

    	 

    

 

Article
5

EVENTS OF DEFAULT

 

Section
5.01. Events of Default.

 

Section
6.1 of the Base Indenture is hereby deleted in its entirety and replaced with the following:

 

“Section
6.1 Events of Default.

 

“Event
of Default,” wherever used herein with respect to the Notes means any one of the following events (whatever the reason
for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

 

(a)
default in the payment of any interest upon any Note when it becomes due and payable, and continuance of such default for a period
of 30 days;

 

(b)
default in the payment of the principal of any Note when due and payable;

 

(c)
default in the performance, or breach, of any covenant of the Company in this Indenture with respect to the Notes, and continuance
of such default or breach for a period of 60 days after there has been sent to the Company by the Trustee or to the Company and
the Trustee by the Holders of at least 25% in principal amount of the Notes, a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;

 

(d)
the entry by a court having jurisdiction in the premises of (A) a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable federal or state bankruptcy, insolvency, reorganization or other similar law or (B) a
decree or order adjudging the Company as bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company under any applicable federal or state law, or appointing
a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial
part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order
for relief or any such other decree or order unstayed and in effect for a period of 90 consecutive days; or

 

(e)
the commencement by the Company of a voluntary case or proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent
by it to the entry of a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable
federal or state bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency
case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any
applicable federal or state law, or the consent by it to the filing of such petition or to the appointment of or taking possession
by a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Company or of any substantial
part of its property, or the making by the Company of an assignment for the benefit of creditors, or the admission by the Company
in writing of its inability to pay its debts generally as they become due, or the taking of corporate action by the Company in
furtherance of any such action.

 

    	 	7	 

    	 

    

 

The
term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors. The
term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

The
Company will, so long as any of the Notes are outstanding, deliver to the Trustee, within 30 days of becoming aware of any Default
or Event of Default, an Officer’s Certificate specifying such Default or Event of Default and what action the Company is
taking or proposes to take with respect thereto.

 

Subject
to the provisions of this Section 6.1, the Trustee shall not be deemed to have knowledge of an Event of Default hereunder (except
for those described in paragraphs (a) and (b) above if the Trustee is then the Paying Agent) unless a Responsible Officer of the
Trustee shall have actual knowledge thereof or shall have received written notice thereof and such notice references the Notes
and this Indenture.”

 

Article
6

MISCELLANEOUS

 

Section
6.01. Action By Consent of the Holders. In addition to the provisions of Sections
2.9 and 9.5 of the Base Indenture, the following provisions shall apply with respect to the Notes:

 

The
amount of Notes deemed to be outstanding for the purpose of determining the holders entitled to give their consent or take any
other action described in the Indenture or required or permitted to be taken pursuant to the Indenture will include all Notes
authenticated and delivered under the Indenture as of the date of determination, except:

 

(a)
Notes cancelled by the trustee or delivered to the Trustee for cancellation;

 

(b)
Notes for which the Company has deposited with the Trustee or Paying Agent or set aside in trust money for their payment or redemption
and, if money has been set aside for the redemption of the Notes, notice of such redemption has been duly given pursuant to the
Indenture to the satisfaction of the Trustee;

 

(c)
Notes held by the Company, its subsidiaries or any other entity which is an obligor under the Notes, unless such Notes have been
pledged in good faith and the pledgee is not the Company, an affiliate of the Company or an obligor under the Notes; and

 

(d)
Notes which have been paid or exchanged for other Notes due to the loss, destruction or mutilation of such Notes, with the exception
of any such Notes held by bona fide purchasers who have presented proof to the Trustee that such Notes are valid obligations of
the Company.

 

    	 	8	 

    	 

    

 

The
Company will be entitled, but is not obligated, to set any day as a record date for the purpose of determining the holders of
the Notes that are entitled to give their consent or take other action under the Indenture, and the trustee will be entitled to
set any day as a record date for the purpose of determining the holders of the Notes that are entitled to join in the giving or
making of any Notice of Default, any declaration of acceleration of maturity of the Notes, any request to institute proceedings
or the reversal of such declaration. If the Company or the trustee sets a record date for a consent or other action to be taken
by the holders of the Notes, that consent or action can only be taken by persons who are holders of the Notes on the record date
and, unless otherwise specified, such consent or action must take place on or prior to the 180th day after the record date. The
Company may change the record date at its option, and the Company will provide written notice to the trustee and to each holder
of the Notes of any such change of record date.

 

Section
6.02. Trust Indenture Act Controls.

 

If
any provision of this Fourth Supplemental Indenture limits, qualifies or conflicts with another provision which is required to
be included in this Fourth Supplemental Indenture by the Trust Indenture Act, the required provision shall control. If any provision
of this Fourth Supplemental Indenture modifies or excludes any provision of the Trust Indenture Act which may be so modified or
excluded, the latter provision shall be deemed to apply to this Fourth Supplemental Indenture as so modified or to be excluded,
as the case may be.

 

Section
6.03. New York Law to Govern.

 

This
Fourth Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New
York.

 

Section
6.04. Counterparts.

 

This
Fourth Supplemental Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same instrument. The exchange of copies of this
Fourth Supplemental Indenture and of signature pages by facsimile, PDF or other electronic transmission shall constitute effective
execution and delivery of this Fourth Supplemental Indenture as to the parties hereto and may be used in lieu of the original
Fourth Supplemental Indenture and signature pages for all purposes.

 

Section
6.05. Severability.

 

If
any provision of this Fourth Supplemental Indenture or the Notes shall be held to be illegal or unenforceable under applicable
law, then the remaining provisions hereof shall be construed as though such invalid, illegal or unenforceable provision were not
contained therein.

 

Section
6.06. Ratification.

 

The
Base Indenture, as supplemented and amended by this Fourth Supplemental Indenture, is in all respects ratified and confirmed.
The Indenture shall be read, taken and construed as one and the same instrument. All provisions included in this Fourth Supplemental
Indenture supersede any conflicting provisions included in the Base Indenture unless not permitted by law. The Trustee accepts
the trusts created by the Indenture, and agrees to perform the same upon the terms and conditions of the Indenture.

 

Section
6.07. Effectiveness.

 

The
provisions of this Fourth Supplemental Indenture shall become effective as of the date hereof.

 

Section
6.08. Trustee Makes No Representation.

 

The
recitals contained herein are made by the Company and not by the Trustee, and the Trustee assumes no responsibility for the correctness
thereof. The Trustee makes no representation as to the validity or sufficiency of this Fourth Supplemental Indenture. All rights,
protections, privileges, indemnities and benefits granted or afforded to the Trustee under the Indenture shall be deemed incorporated
herein by this reference and shall be deemed applicable to all actions taken, suffered or omitted by the Trustee in each of its
capacities hereunder, and each agent, custodian and other Person employed to act under this Fourth Supplemental Indenture.

 

    	 	9	 

    	 

    

 

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

 

	 	LADENBURG
    THALMANN FINANCIAL SERVICES INC.
	 	 
	 	By:	/s/
    Joseph Giovanniello
	 	Name:	Joseph
    Giovanniello
	 	Title:
    	Senior
    Vice President–Corporate and Regulatory Affairs
	 	 	 
	 	U.S.
    Bank National Association, as Trustee
	 	 
	 	By:	/s/
    Michael C. Daly
	 	Name:	Michael
    C. Daly
	 	Title:	Vice
    President

 

[Signature
Page to Supplemental Indenture]

 

    	 	10	 

    	 

    

 

EXHIBIT
A

 

THIS
NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
(AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF. THIS GLOBAL SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME
OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR ITS NOMINEE ONLY IN LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT
AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE
OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.

 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

 

All
terms used in this Note which are defined in the Indenture (as defined herein) shall have the meanings assigned to them in the
Indenture.

 

LADENBURG
THALMANN FINANCIAL SERVICES INC.

 

7.75%
Senior Note due 2029 ($25.00

Par Value Per Note)

 

	No.
    [●] 	Principal
    Amount
	CUSIP
    No. 50575Q 508	$[●]

 

Ladenburg
Thalmann Financial Services Inc., a Florida corporation (hereinafter called the “Company”, which term includes any
successor person under the Indenture referred to below), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of [●] (U.S. $[●]) on June 30, 2029 and to pay interest thereon from May 29, 2019 or from
the most recent Interest Payment Date to which interest has been paid or duly provided for, quarterly on March 31, June 30, September
30 and December 31 in each year (each an “Interest Payment Date”), beginning September 30, 2019 at the rate of 7.75%
per annum, until the principal hereof is paid or duly made available for payment. The interest so payable and punctually paid
or duly provided for on any Interest Payment Date shall, as provided in such Indenture, be paid to the person in whose name this
Note is registered at the close of business on the regular record date for such interest, which shall be the March 15, June 15,
September 15 or December 15 (whether or not a Business Day), as the case may be, preceding such Interest Payment Date. Any such
interest which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease
to be payable to the Holder hereof on the relevant regular record date by virtue of having been such Holder, and may be paid to
the person in whose name this Note is registered at the close of business on a special record date for the payment of such defaulted
interest to be fixed by the Trustee, notice whereof shall be given to Holders of the Notes and the Trustee not less than 10 days
prior to such special record date, or may be paid at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture.

 

    	 	A-1	 

    	 

    

 

Payment
of the principal of and the interest on this Note shall be made at the designated office of the Trustee at U.S. Bank National
Association, 200 South Biscayne Blvd., Suite 1870, Miami, Florida 33131, in such currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts; provided, however, for so long as the Notes are represented
in global form by one or more Global Securities, all payments of principal and interest shall be made by wire transfer of immediately
available funds to the Depositary or its nominee, as the case may be, as the registered owner of the Global Security representing
such Notes. In the event that definitive Notes shall have been issued, all payments of principal and interest shall be made by
wire transfer of immediately available funds to the accounts of the registered Holders thereof; provided, that the Company may
at its option pay interest by check to the registered address of each Holder of a definitive Note.

 

This
Note is one of the duly authorized series of Securities of the Company, designated as the Company’s “7.75% Senior
Notes due 2029,” initially limited to an aggregate principal amount of up to $57,500,000, all issued or to be issued under
and pursuant to an Indenture, dated as of November 21, 2017 (the “Base Indenture”), between the Company and U.S. Bank
National Association, as trustee (hereinafter referred to as the “Trustee”), as supplemented by the First Supplemental
Indenture thereto, dated as of November 21, 2017, as further supplemented by the Second Supplemental Indenture thereto, dated
as of May 30, 2018, as further supplemented by the Third Supplemental Indenture thereto, dated as of August 16, 2018, and as further
supplemented by the Fourth Supplemental Indenture thereto, dated as of May 29, 2019 (the “Fourth Supplemental Indenture,”
and together with the Base Indenture, the “Indenture,” for purposes of this Note). Reference is hereby made to the
Indenture for a description of the respective rights, limitation of rights, obligations, duties and immunities thereunder of the
Trustee, the Company and the Holders of the Notes.

 

The
Company may redeem the Notes as a whole or in part, at any time and from time to time on or after June 30, 2022 at the Company’s
option, upon notice sent not fewer than 30 days and not more than 60 days prior to the date fixed for redemption to each Holder
of Notes to be redeemed, at a redemption price equal to the principal amount plus any unpaid interest payable thereon accrued
to, but excluding, the date fixed for redemption.

 

    	 	A-2	 

    	 

    

 

If
less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected not more than 45 days prior to the redemption
date by the Trustee from the outstanding Notes not previously called for redemption, by lot, or in the Trustee’s discretion,
on a pro-rata basis, provided that the unredeemed portion of the principal amount of any Notes will be in an authorized denomination
(which will not be less than the minimum authorized denomination) for such Notes. The Trustee will promptly notify the Company
in writing of the Notes selected for redemption and, in the case of any Notes selected for partial redemption, the principal amount
thereof to be redeemed.

 

The
Notes are not subject to any sinking fund.

 

If
an Event of Default with respect to the Notes shall occur and be continuing, the principal amount of and accrued and unpaid interest
on, if any, the Notes may be declared due and payable in the manner and with the effect provided in the Indenture.

 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities
at the time outstanding of each series affected thereby. The Indenture also permits certain amendments thereof by the Company
and the Trustee, without the consent of any of the Holders. The Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities of any series at the time outstanding, on behalf of the Holders of
all Securities of such series, to waive certain past defaults under the Indenture and their consequences, and compliance by the
Company with any provision of the Indenture or the Notes, subject to certain exceptions set forth in the Indenture. Any such consent
or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note
and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Note.

 

No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the right of the Holder
of this Note, which is absolute and unconditional, to receive payment of the principal of and interest on this Note at the times
herein and in the Indenture prescribed and to institute suit for the enforcement of any such payment unless the Holder of this
Note shall have consented to the impairment of such right.

 

As
provided in the Indenture and subject to certain limitations set forth therein, the transfer or exchange of this Note may be registered
upon surrender of this Note for registration of transfer or exchange at the trust office of the Trustee, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar, duly executed by the Holder
hereof or by his, her or its attorney, duly authorized in writing, and thereupon one or more new Notes of this series and of any
authorized denominations and of a like aggregate principal amount and tenor, shall be issued to the designated transferee or transferees.
Notwithstanding the foregoing, any Global Notes shall be exchangeable for Notes registered in the names of Holders other than
the Depositary for such Notes or its nominee only if (i) such Depositary notifies the Company that it is unwilling or unable to
continue as Depositary for such Global Notes or if at any time such Depositary ceases to be a clearing agency registered under
the Securities Exchange Act of 1934, as amended (“Exchange Act”), and, in either case, the Company fails to appoint
a successor Depositary registered as a clearing agency under the Exchange Act within 90 days of such event or (ii) the Company
executes and delivers to the Trustee an Officer’s Certificate to the effect that such Global Notes shall be so exchangeable.

 

    	 	A-3	 

    	 

    

 

The
Notes are issuable only in registered form without coupons in minimum denominations of $25 and integral multiples of $25 in excess
thereof. Subject to certain limitations therein set forth in the Indenture and in this Note, the Notes are exchangeable for a
like aggregate principal amount of Notes of this series in different authorized denominations, as requested by the Holders surrendering
the same.

 

No
service charge shall be made for any such registration of transfer or for exchange of this Note, but the Company or the Trustee
may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of a Note, other than in certain cases provided in the Indenture.

 

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

 

The
Indenture contains provisions whereby (i) the Company may be discharged from its obligations with respect to the Notes (subject
to certain exceptions) or (ii) the Company may be released from its obligations under specified covenants and agreements in the
Indenture, in each case if the Company irrevocably deposits with the Trustee money and/or U.S. Government Obligations sufficient
to pay and discharge the entire indebtedness on all Notes of this series, and satisfies certain other conditions, all as more
fully provided in the Indenture.

 

This
Note shall be governed by and construed in accordance with the laws of the State of New York.

 

Unless
the certificate of authentication hereon has been executed by or on behalf of the Trustee under the Indenture by the manual signature
of one of its authorized signatories, this Note shall not be entitled to any benefits under the Indenture or be valid or obligatory
for any purpose.

 

[Remainder
of page intentionally left blank.]

 

    	 	A-4	 

    	 

    

 

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

 

Dated:
[●]

 

	 	LADENBURG
    THALMANN FINANCIAL SERVICES INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	           

 

TRUSTEE’S
CERTIFICATE OF AUTHENTICATION

 

This
is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Dated:
[●]

 

	 	U.S.
    BANK NATIONAL ASSOCIATION, as Trustee
	 	 	 
	 	By:	
	 	 	Authorized
    Signatory

 

[Signature
Page to Global Note]

 

    	 	A-5	 

    	 

    

 

ABBREVIATIONS

 

The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations.

 

	TEN
    COM - as tenants in common 	UNIF
    GIFT MIN ACT - . . .Custodian
	 	(Cust)
    (Minor)
	TEN
    ENT - as tenants by the entireties	Under
    Uniform Gifts to Minor Act
	JT
    TEN - as joint tenants with right of survivorship and not as tenants in common	________________________
	 	(State)

 

	Additional abbreviations may also be used though not in the above list.

                                                                                 

	FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

                                                                                 

	(Please insert Assignee’s legal name)

                                                                                 

	(Please insert Social Security or other identifying number of Assignee)

                                                                                 

	 

                                                                                 

	(Please
    print or typewrite name and address including postal zip code of Assignee)

 

the
within Note of LADENBURG THALMANN FINANCIAL SERVICES INC. and does hereby irrevocably constitute and appoint attorney to transfer
the said Note on the books of the Company, with full power of substitution in the premises.

 

Dated:

 

	 	Your
    Signature: ______________________ 
	 	Sign
    exactly as your name appears on the face of this Note)

 

[NOTICE:
The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatever.]

 

    	 	A-6

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