Document:

Exhibit 10.1

 

WARRANT EXERCISE AGREEMENT

 

This Warrant Exercise Agreement (this “Agreement”), dated as of October 23, 2017, is by and between BioPharmX Corporation, a Delaware corporation (the “Company”), and the undersigned holder (the “Holder”) of warrants to purchase shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”).

 

WHEREAS, the Holder beneficially owns in the aggregate the number of warrants to purchase Common Stock with an exercise price of $0.90 per share that are exercisable until October 28, 2022, as set forth on the Holder’s signature page hereto (the “Original Warrants”).

 

WHERAS, in order to induce the Holder to exercise the Original Warrants, the Company and the Holder hereby agree to amend the Original Warrants to make them immediately exercisable as of the date hereof and to reduce the exercise price thereof to $0.24 (the “Amended Exercise Price”).

 

WHEREAS, the Holder desires to exercise such Original Warrants in the amounts set forth on the applicable signature pages hereto using the Amended Exercise Price and, immediately prior to such exercise and in consideration of the Holder’s exercise of such Original Warrants, the Company has agreed to issue the Holder, in addition to the shares of Common Stock to which such exercising Holder is entitled pursuant to the exercise of the Original Warrants, a number of new warrants equal to 150% of the number of Original Warrants being exercised (rounded down to the nearest whole share in case of fractional shares) with an exercise price of $0.30 per share in the form attached hereto as Exhibit A (the “New Warrants”).  The shares of Common Stock underlying the Original Warrants are referred to herein as the “Warrant Shares”.  The shares of Common Stock underlying the New Warrants are referred to herein as the “New Warrant Shares” and collectively with the New Warrants and Warrant Shares, the “Securities”.

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Holder and the Company agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.1 Definitions.  Capitalized terms not defined in this Agreement shall have the meanings ascribed to such terms in the New Warrants.

 

ARTICLE II

EXERCISE OF ORIGINAL WARRANTS

 

Section 2.1 Exercise of Warrants.  (a) Subject to the conditions in Section 2.3 below and the provisions of Sections 2.5 and 2.6 below, by executing this Agreement, the Company and the Holder hereby agree that the Holder shall be deemed to have exercised the number of Original Warrants set forth on the signature page hereto for aggregate cash proceeds to the Company in the amount set forth on the Holder’s signature page hereto, pursuant to the terms of the Original Warrants, except that the such Original Warrants are immediately exercisable as of the date hereof and the exercise price thereunder shall be the Amended Exercise Price (as defined below).  The Holder shall deliver the aggregate cash exercise price for such Original Warrants to the bank account set forth on the Company’s signature page hereto within two Trading Days after the date hereof and the Company shall deliver the Warrant Shares to the Holder via 

 

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DWAC pursuant to the terms of the Original Warrants, but pursuant to DWAC instructions set forth on the Holder’s signature page hereto. The date of the closing of the exercise of the Original Warrants shall be referred to as the “Closing Date”.

 

Section 2.2 Issuance of New Warrants. The New Warrants to which the Holder is entitled shall be issued on the Closing Date and delivered to such Holder within two Trading Days of the Closing Date.  The Holder shall be entitled to receive a New Warrant issuable for 150% of the number of shares of Common Stock as the Holder exercises for cash (rounded down to the nearest whole share in the case of fractional shares) pursuant to Section 2.1(a) above.

 

Section 2.3 Legends; Restricted Securities.  (a) The Holder understands that the New Warrants and the shares of Common Stock underlying New Warrants are not, and may never be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state and, accordingly, each certificate, if any, representing such securities shall bear a legend substantially similar to the following:

 

“NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.”

 

(b)   Certificates evidencing shares of Common Stock underlying the New Warrants shall not contain any legend (including the legend set forth in Section 2.3(a) hereof), (i) while a registration statement covering the resale of such Common Stock is effective under the Securities Act, (ii) following any sale of such Common Stock pursuant to Rule 144, (iii) if such Common Stock is eligible for sale under Rule 144 (assuming cashless exercise of the New Warrants), without the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Common Stock and without volume or manner-of-sale restrictions, (iv) if such Common Stock may be sold under Rule 144 (assuming cashless exercise of the New Warrants) and the Company is then in compliance with the current public information required under Rule 144 as to such Common Stock, or (v) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Securities and Exchange Commission (the “Commission”)). The Company shall cause its counsel to issue a legal opinion to the transfer agent promptly after the Delegend Date (as defined below) if required by the Company and/or the transfer agent to effect the removal of the legend hereunder, which opinion shall be in form and substance reasonably acceptable to the Holder. If such Common Stock may be sold under Rule 144 (assuming cashless exercise of the New Warrants) without the requirement for the Company to be in compliance with the current public information required under Rule 144 or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission) then such Common Stock shall be issued free of all legends. The Company agrees that following the Delegend Date or at such time as such legend is no longer required under this 

 

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Section 2.3(b), it will, no later than two (2) Trading Days following  the delivery by the Holder to the Company or the transfer agent of a certificate representing the Common Stock underlying the New Warrants issued with a restrictive legend (such second Trading Day, the “Legend Removal Date”), deliver or cause to be delivered to the Holder a certificate representing such shares that is free from all restrictive and other legends or, at the request of the Holder shall credit the account of the Holder’s prime broker with the Depository Trust Company System as directed by the Holder. The Company may not make any notation on its records or give instructions to the transfer agent that enlarge the restrictions on transfer set forth in this Section 2.3(b).  “Delegend Date” means the earliest of the date that (a) a registration statement with respect to the Common Stock has been declared effective by the Commission or (b) all of the Common Stock has been sold pursuant to Rule 144 or may be sold pursuant to Rule 144 without the requirement for the Company to be in compliance with the current public information required under Rule 144 and without volume or manner-of-sale restrictions or (c) following the six (6) month anniversary of (I) the Closing Date if a New Warrant is exercised pursuant to a cashless exercise or (II) the date of the related cash exercise of the New Warrants provided, in each case that the applicable holder of the New Warrants or the Common Stock, as the case may be, is not an Affiliate (as defined in the New Warrants) of the Company, the Company is in compliance with the current public information required under Rule 144 (“Current Public Information Requirement”) and all such Common Stock may be sold pursuant to Rule 144 or an exemption from registration under Section 4(a)(1) of the Securities Act without volume or manner-of-sale restrictions; provided, further, however, that if the Company fails to comply with the Current Public Information Requirement at any time following the applicable six (6) month anniversary set forth above and the one (1) year anniversary of the Closing Date, the Company shall promptly provide notice to the Holder and the Holder undertakes not to sell such Common Stock pursuant to Rule 144 until the Company notifies the Holder that it has regained compliance with the Current Public Information Requirement; and provided further, that if a delegending is in effect solely as the result of the effectiveness of a registration statement covering the resale of any Common Stock, the Holder undertakes not to sell any such Common Stock if the Holder is notified or otherwise becomes aware that such registration statement has been withdrawn or suspended, contains a material misstatement or omission or has become stale.  The Holder agrees with the Company that the Holder will sell or transfer any New Warrants or shares of Common Stock underlying New Warrants pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if such securities are sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates representing any such securities as set forth in this Section 2.3 or otherwise  is predicated upon the Company’s reliance upon this understanding.

 

Section 2.4 Filing of Form 8-K and Supplement to Registration Statement. Prior to 9:00 am ET on October 23, 2017, the Company shall issue a Current Report on Form 8-K, reasonably acceptable to the Holder disclosing the material terms of the transactions contemplated hereby, which shall include this form of Agreement (the “8-K Filing”). From and after the issuance of the 8-K Filing, the Company represents to the Holder that it shall not be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries (as defined below) or any of their respective officers, directors, employees or agents, that is not disclosed in the 8-K Filing. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, employees or agents, on the one hand, and the Holder or any of its Affiliates, on the other hand, shall terminate.  The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers, directors, employees and agents, not to, provide the Holder with any material, nonpublic information regarding the Company or any of its Subsidiaries from and after the date hereof without the express prior written consent of the Holder. To the extent that the Company, any of its Subsidiaries or any of their respective officers, directors, employees or agents, delivers any material, non-public information to the Holder without the Holder’s consent, the Company 

 

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hereby covenants and agrees that the Holder shall not have any duty of confidentiality with respect to, or a duty not to trade on the basis of, such material, non-public information.  On or prior to the Closing Date, the Company hereby covenants and agrees to file a prospectus supplement to have the registration statement registering the issuance of the Warrant Shares contemplate the amendment to the exercise price contemplated by Sections 2.5 below and the amendment to the Issuance Exercise Date contemplated by Section 2.6 below. As used herein, “Subsidiary” means any subsidiary of the Company, and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date hereof.

 

Section 2.5.  Amendment to Exercise Price in Original Warrants.  The Company and the Holder hereby agree to amend and restate Section 2(b) of the Original Warrants as follows: “b) Exercise Price.  The exercise price per share of the Common Stock under this Warrant shall be (i) $0.24, subject to adjustment hereunder (the “Exercise Price”).”

 

Section 2.6.  Amendment to Initial Exercise Date in Original Warrants.  The Company and the Holder hereby agree to amend and restate the definition of “Initial Exercise Date” in the Original Warrants from October 28, 2017 to October 23, 2017.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.1 Representations and Warranties of the Company. The Company hereby makes the representations and warranties set forth below to the Holder that as of the date of its execution of this Agreement:

 

(a) Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of such Company and no further action is required by such Company, its board of directors or its stockholders in connection therewith other than in connection with (i) the filings required pursuant to Section 2.4 of this Agreement, (ii) application to the NYSE American for the listing of the New Warrant Shares for trading thereon in the time and manner required thereby and (iv) such filings as are required to be made under applicable state securities laws (the “Required Approvals”). This Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b) Organization. The Company is a duly organized and validly existing corporation in good standing under the laws of the State of Delaware.

 

(c) Registration Statement. The Warrant Shares are registered for issuance on a registration statement on Form S-3 (File No. 333-209026) and the Company knows of no reasons why such registration statement shall not remain available for the issuance by the Company of such Warrant Shares.

 

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(d) No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien upon any of the properties or assets of the Company, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any material agreement, credit facility, debt or other material instrument (evidencing Company debt or otherwise) or other material understanding to which the Company is a party or by which any property or asset of the Company is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity or enforceability of this Agreement, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and its subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a “Material Adverse Effect”).

 

(e) Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by this Agreement, the Company confirms that neither it nor any other individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind (each a “Person”) acting on its behalf has provided any of Holder or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information which is not otherwise disclosed in the SEC Reports (as defined below). The Company understands and confirms that the Holder will rely on the foregoing representation in effecting transactions in securities of the Company. As of the date of this Agreement, all of the disclosure when furnished by or on behalf of the Company to the Holder regarding the Company and its Subsidiaries, their respective businesses and the transactions contemplated hereby is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. None of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As used herein, “SEC Reports” means all reports, schedules, forms, statements and other documents required to be filed by the Company as of the date of this Agreement with the Commission pursuant to the reporting requirements of the Exchange Act, including all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein.

 

(f) Issuance of Securities.  The issuance of the New Warrants are duly authorized and, upon issuance in accordance with the terms of this Agreement, the New Warrants shall be validly issued and free from all preemptive or similar rights (except for those which have been validly waived prior to the date hereof), taxes, liens and charges and other encumbrances with respect to the issue thereof, other than restrictions on transfer under applicable state and federal securities laws and liens or encumbrances created by or imposed by the Holder.  As of the Closing Date, a number of shares of Common Stock shall have been duly authorized and reserved for issuance which equals or exceeds the maximum number of New Warrant Shares issuable upon exercise of the New Warrants (without taking into account any limitations on the exercise of the New Warrants set forth therein).  Upon exercise of the New Warrants in accordance with the New Warrants, the New Warrant Shares when issued will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens, charges and other 

 

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encumbrances with respect to the issue thereof, other than restrictions on transfer under applicable state and federal securities laws and liens or encumbrances created by or imposed by the Holder, with the holders being entitled to all rights accorded to a holder of Common Stock.  Assuming the accuracy of each of the representations and warranties set forth in Section 3.2 of this Agreement, the offer and issuance by the Company of the New Warrants is exempt from registration under the Securities Act.

 

(g) No General Solicitation.  Neither the Company, nor any of its Subsidiaries or Affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the New Warrants.

 

(h) No Integrated Offering.  None of the Company, its Subsidiaries or any of their Affiliates, nor any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the New Warrants or the New Warrant Shares (collectively, the “New Securities”) under the Securities Act, whether through integration with prior offerings or otherwise, or cause this offering of the New Securities to require approval of shareholders of the Company for purposes of the Securities Act or any applicable shareholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated for quotation.  None of the Company, its Subsidiaries, their Affiliates nor any Person acting on their behalf will take any action or steps that would require registration of the issuance of any of the New Securities under the Securities Act or cause the offering of any of the New Securities to be integrated with other offerings for purposes of any such applicable shareholder approval provisions.

 

Section 3.2 Representations and Warranties of the Holder. The Holder hereby makes the representations and warranties set forth below to the Company that as of the date of its execution of this Agreement.

 

(a) Organization; Due Authorization. The Holder is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The Holder represents and warrants that (i) the execution and delivery of this Agreement by it and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on its behalf and (ii) this Agreement has been duly executed and delivered by the Holder and constitutes the valid and legally binding obligation of the Holder, enforceable against it in accordance with its terms.

 

(b) Understandings or Arrangements.  The Holder is acquiring the Securities as principal for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting the Holder’s right to sell the Securities pursuant to a registration statement or otherwise in compliance with applicable federal and state securities laws).  The Holder is acquiring the Securities hereunder in the ordinary course of its business.

 

(c) No Conflicts. The Holder represents and warrants that the execution, delivery and performance of this Agreement by the Holder and the consummation by the Holder of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Holder’s organizational or charter documents, or (ii) conflict with or result in a violation of any agreement, law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority which would interfere with the ability of the Holder to perform its obligations under this Agreement.

 

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(c) Access to Information. The Holder acknowledges that it has had the opportunity to review this Agreement and the SEC Reports and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the exercise of the Original Warrants and the merits and risks of investing in the Warrant Shares, the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

(d) Holder Status. The Holder represents and warrants that at the time the Holder was offered the Securities, it was, and as of the date hereof it is, and on each date on which it exercises any New Warrants, it was or will be an “accredited investor” as defined in Rule 501 under the Securities Act.

 

(e) Knowledge.  The Holder, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Warrant Shares, and has so evaluated the merits and risks of such investment. The Holder is able to bear the economic risk of an investment in the Warrant Shares and, at the present time, is able to afford a complete loss of such investment.

 

ARTICLE IV

MISCELLANEOUS

 

Section 4.1 [Intentionally Omitted].

 

Section 4.2 Subsequent Equity Sales.

 

(a)           From the date hereof until November 11, 2017, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance of any shares of Common Stock or Common Stock Equivalents; provided, that for the avoidance of doubt, the foregoing shall not prevent the Company from filing one or more amendments or supplements to the Company’s registration statement on Form S-1 (File No. 333-221027), including an amendment to such registration statement that would constitute a “red herring” containing offering size and pricing-related information based on an assumed offering price with which the Company would commence an offering of securities under such registration statement (including the commencement of a roadshow), and issuing a press release announcing such amendment and commencement of an offering, during such period.  As used herein “Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

(b)           Notwithstanding the foregoing, this Section 4.2 shall not apply in respect of an Exempt Issuance.  “Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company pursuant to any stock or option plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose for services rendered to the Company, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or 

 

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exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities (other than in connection with stock splits or combinations) or to extend the term of such securities, and (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person (or to the equity holders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities; provided that such securities are issued as “restricted securities” (as defined in Rule 144) and the recipients of such securities are not granted registration rights that enable or require the filing of a resale registration statement until after the time period specified in the first sentence of Section 4.2(a) above.

 

Section 4.3 Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be made by email to the email address of the Holder set forth on Holders’ signature page.

 

Section 4.4 Survival. All warranties and representations (as of the date such warranties and representations were made) made herein or in any certificate or other instrument delivered by it or on its behalf under this Agreement shall be considered to have been relied upon by the parties hereto and shall survive the issuance of the New Warrants. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties; provided however that no party may assign this Agreement or the obligations and rights of such party hereunder without the prior written consent of the other parties hereto.

 

Section 4.5 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof.

 

Section 4.6 Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

Section 4.7 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined pursuant to Section 5(e) of the New Warrants.

 

Section 4.8 Entire Agreement. The Agreement, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

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Section 4.9 Construction. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

Section 4.10 Fees and Expenses. Except as expressly set forth herein, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Warrant Shares.

 

Section 4.11 Previous Participation Rights. The Holder, who is a party (or an Affiliate of a party) to that certain Securities Purchase Agreement dated September 25, 2016, as amended, by and between the Company and each purchaser identified on the signature pages thereto (the “Previous Agreement”) hereby agrees that all notice and participation rights set forth in Section 4.11 of the Previous Agreement have been satisfied or irrevocably and unconditionally waived with respect to the execution of this Agreement by the Company and the Holder and the transactions contemplated thereby, including the amendment of the Original Warrants and offer and issuance of any Securities to the Holder pursuant to this Agreement by the Company.

 

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IN WITNESS WHEREOF, the undersigned have executed this Warrant Exercise Agreement as of the date first written above.

 

COMPANY:

 

BIOPHARMX CORPORATION

 

	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

Bank Account and Wire Instructions

 

[insert]

 

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[HOLDER SIGNATURE PAGES TO BPMX

WARRANT EXERCISE AGREEMENT]

 

IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
Name of Holder:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of Authorized Signatory of Holder:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name of Authorized Signatory:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title of Authorized Signatory:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Email Address of Holder:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Number of Original   Warrants held:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Number of Original Warrants deemed   exercised:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Aggregate Exercise Price of    Warrants deemed Exercised:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Warrant Shares underlying    Warrants deemed exercised:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Instructions for Warrant Shares to be issued upon   exercise of Original Warrants:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Number of New Warrants   to be issued to Holder upon deemed exercise:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address for Delivery of   New Warrants for Holder:
    	
 
    	
 
    
														

 

DWAC

Instructions:

 

11EX-4.1

 Exhibit 4.1 

 
  

BANCO SANTANDER, S.A. 
 as
Issuer, 
 and 
 THE BANK OF
NEW YORK MELLON, 
 acting through its London Branch 

as Trustee 
  

 
 SECOND
SUPPLEMENTAL INDENTURE 
 dated as of October 23, 2017 

to 
 THE SECOND RANKING SENIOR
DEBT SECURITIES INDENTURE 
 dated as of April 11, 2017 

 
  

 

 SECOND SUPPLEMENTAL INDENTURE (“Second Supplemental Indenture”), dated as of
October 23, 2017, between BANCO SANTANDER, S.A., a sociedad anónima incorporated under the laws of the Kingdom of Spain (the “Company”), having its principal executive office located at Ciudad Grupo Santander,
Avenida de Cantabria s/n, 28660 Boadilla del Monte, Madrid, Spain, and THE BANK OF NEW YORK MELLON acting through its London Branch, a banking corporation duly organized and existing under the laws of the State of New York, as Trustee (the
“Trustee”), having its Corporate Trust Office at One Canada Square, London, E14 5AL, United Kingdom. 
 WITNESSETH 

WHEREAS, the Company and the Trustee have executed and delivered a Second Ranking Senior Debt Securities Indenture dated as of April 11,
2017 (the “Base Indenture”, and together with this Second Supplemental Indenture, the “Senior Non Preferred Indenture”) to provide for the issuance of the Company’s senior non preferred debt securities (the
“Senior Non Preferred Debt Securities”), including the Senior Non Preferred Notes (as defined below). 
 WHEREAS,
Section 9.01(d) of the Base Indenture permits the Company and the Trustee to change or eliminate any provisions of the Base Indenture without the consent of Holders as permitted under Sections 2.01 and 3.01 of the Base Indenture, subject to
certain conditions; 
 WHEREAS, Section 9.01(f) of the Base Indenture permits the Company and the Trustee to enter into a supplemental
indenture to establish the forms or terms of Senior Non Preferred Debt Securities of any series as permitted under Sections 2.01 and 3.01 of the Base Indenture without the consent of Holders; 

WHEREAS, there are no debt securities Outstanding of any series created prior to the execution of this Second Supplemental Indenture that are
entitled to the benefit of the provisions set forth herein or that would be adversely affected by such provisions; 
 WHEREAS, the Executive
Committee of the Company have authorized the entry into this Second Supplemental Indenture and the establishment of the Senior Non Preferred Notes (as defined below), as required by Section 9.01 of the Base Indenture; 

WHEREAS, the parties hereto desire to establish (i) a series of Senior Non Preferred Debt Securities to be known as the Series 24 3.125%
Senior Non Preferred Fixed Rate Notes due 2023 (the “2023 Fixed Rate Notes”), (ii) a series of Senior Non Preferred Debt Securities to be known as the Series 26 3.800% Senior Non Preferred Fixed Rate Notes due 2028 (the
“2028 Fixed Rate Notes”) and (iii) a series of Senior Non Preferred Debt Securities to be known as the Series 25 U.S. $500,000,000 Senior Non Preferred Floating Rate Notes due 2023 (the “Floating Rate Notes”)
and, together with the 2023 Fixed Rate Notes and the 2028 Fixed Rate Notes, the “Senior Non Preferred Notes”), each pursuant to Sections 2.01 and 3.01 of the Base Indenture. Each of the 2023 Fixed Rate Notes, the 2028 Fixed Rate
Notes and the Floating Rate Notes 

  
 1 

 
may be issued from time to time and any 2023 Fixed Rate Notes, 2028 Fixed Rate Notes and Floating Rate Notes issued as part of the relevant series created herein will constitute a single series
of Senior Non Preferred Debt Securities under the Senior Non Preferred Indenture and shall be included in the definition of “2023 Fixed Rate Notes,” “2028 Fixed Rate Notes” or “Floating Rate Notes,” as applicable, where
the context requires; 
 WHEREAS, the Company has requested and hereby requests that the Trustee execute and deliver this Second
Supplemental Indenture and the Company has provided the Trustee with an Executive Committee Resolution authorizing the execution of this Second Supplemental Indenture; 

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

WHEREAS, where indicated, this Second Supplemental Indenture shall amend and supplement the Base Indenture; and to the extent that the terms
of the Base Indenture are inconsistent with such provisions of this Second Supplemental Indenture, the terms of this Second Supplemental Indenture shall govern. 

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

ARTICLE 1 
 DEFINITIONS 

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

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

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

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

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

(e) for the purposes of this Second Supplemental Indenture and the Base Indenture, the term “series” shall mean a series of the
Senior Non Preferred Debt Securities. 

  
 2 

 ARTICLE 2 

FORM OF SENIOR NON PREFERRED NOTES 

Section 2.01. Terms of the 2023 Fixed Rate Notes. The following terms relating to the 2023 Fixed Rate Notes are hereby established
pursuant to Section 3.01 of the Base Indenture: 
 (a) The title of the 2023 Fixed Rate Notes shall be: the Series 24 3.125% Senior Non
Preferred Fixed Rate Notes due February 2023; 
 (b) the price at which the 2023 Fixed Rate Notes shall be issued is 99.808% of the principal
amount thereof; 
 (c) The aggregate principal amount of the 2023 Fixed Rate Notes that may be authenticated and delivered under the Senior
Non Preferred Indenture shall not exceed $1,000,000,000, except as otherwise provided in the Senior Non Preferred Indenture, including Section 2.01(t) hereof; 

(d) Principal on the 2023 Fixed Rate Notes shall be payable on February 23, 2023 (the “2023 Fixed Rate Maturity Date”);

 (e) The 2023 Fixed Rate Notes shall be issued in global registered form on October 23, 2017 and shall bear interest from and
including October 23, 2017 payable semi-annually in arrears on February 23 and August 23 (each, a “2023 Fixed Rate Interest Payment Date”), commencing February 23, 2018. The 2023 Fixed Rate Notes shall bear an
annual interest rate of 3.125%; 
 Interest on the 2023 Fixed Rate Notes will be calculated on the basis of a 360-day year divided into
twelve months of 30 days each and, in the case of an incomplete month, the actual number of days elapsed in such month. The Regular Record Dates for the 2023 Fixed Rate Notes will be 15 calendar days immediately preceding the relevant 2023 Fixed
Rate Interest Payment Date, whether or not a Business Day; 
 (f) No premium, upon redemption or otherwise, shall be payable by the Company
on the 2023 Fixed Rate Notes; 
 (g) Principal of and any interest on the 2023 Fixed Rate Notes shall be paid to the Holder through The Bank
of New York Mellon, as paying agent of the Company having offices in London, United Kingdom and the Borough of Manhattan, The City of New York; 

(h) The 2023 Fixed Rate Notes shall not be redeemable except as provided in Article 11 of the Base Indenture, as supplemented by this Second
Supplemental Indenture; 
 (i) The Company shall have no obligation to redeem or purchase the 2023 Fixed Rate Notes pursuant to any sinking
fund or analogous provision; 
 (j) The 2023 Fixed Rate Notes shall be issued only in minimum denominations of $200,000 and integral
multiples of $200,000 in excess thereof; 

  
 3 

 (k) The principal amount of the 2023 Fixed Rate Notes shall be payable upon the declaration of
acceleration thereof pursuant to Section 5.02 of the Base Indenture; 
 (l) Additional Amounts in respect of the 2023 Fixed Rate Notes
shall be payable as set forth in the Base Indenture, as supplemented by this Second Supplemental Indenture; 
 (m) The 2023 Fixed Rate Notes
shall be denominated in, and payments thereon shall be made in, U.S. Dollars only; 
 (n) The payment of principal of or interest, if any, on
the 2023 Fixed Rate Notes shall be payable only in the coin or currency in which the 2023 Fixed Rate Notes are denominated; 
 (o) The 2023
Fixed Rate Notes will be issued in the form of one or more global securities in registered form, without coupons attached, and initially registered in the name of Cede & Co., as nominee of The Depository Trust Company, the Depositary; 

(p) The 2023 Fixed Rate Notes will not be initially issued in definitive form; 

(q) The Events of Default on the 2023 Fixed Rate Notes are as provided for in the Base Indenture, as supplemented by the Second Supplemental
Indenture; 
 (r) With respect to the 2023 Fixed Rate Notes, Section 12.01 of the Base Indenture is hereby deleted in its entirety and
replaced with the following: 
 The Company, for itself, its successors and assigns, covenants and agrees, and each Holder of the 2023 Fixed
Rate Notes by his acceptance thereof, likewise covenants and agrees, that the payment obligations of the Company under the 2023 Fixed Rate Notes will constitute direct, unconditional, unsubordinated and unsecured senior non preferred obligations
(créditos ordinarios no preferentes) of the Company and, in accordance with Additional Provision 14.2o of Law 11/2015, but subject to any other ranking that may apply as a result of any mandatory provision of law (or otherwise),
upon the insolvency of the Company (and unless they qualify as subordinated claims (créditos subordinados) pursuant to Article 92.1o or 92.3o to 92.7o of Law 22/2003 (Ley Concursal) dated 9 July 2003 (the
“Spanish Insolvency Law”)), rank (i) pari passu among themselves and with any Senior Non Preferred Liabilities (as defined below), (ii) junior to the Senior Higher Priority Liabilities (as defined below) (and, accordingly,
upon the insolvency of the Company, the claims in respect of the 2023 Fixed Rate Notes will be met after payment in full of the Senior Higher Priority Liabilities), and (iii) senior to any present and future subordinated obligations
(créditos subordinados) of the Company in accordance with Article 92 of the Spanish Insolvency Law. 
 Claims of holders of
2023 Fixed Rate Notes in respect of interest accrued but unpaid as of the commencement of any insolvency procedure in respect of the Company shall constitute subordinated claims (créditos subordinados) against the Company ranking in
accordance with the provisions of Article 92.3o of the Spanish Insolvency Law and no further interest shall accrue from the date of the declaration of insolvency of the Company. 

  
 4 

 “Law 11/2015” means Law 11/2015 of 18 June on recovery and resolution of credit
institutions and investment firms, as amended from time to time. 
 “Senior Higher Priority Liabilities” means any obligations of
the Company which specify their status as ordinary senior instruments and any other unsecured and unsubordinated obligations (créditos ordinarios) of the Company, other than the Senior Non Preferred Liabilities. 

“Senior Non Preferred Liabilities” means any unsubordinated and unsecured senior non preferred obligations (créditos
ordinarios no preferentes) of the Company under Additional Provision 14.2o of Law 11/2015, as amended by Royal Decree-Law 11/2017, of 23 June, on urgent measures in financial matters, and as further amended from time to time (including
any 2023 Fixed Rate Notes), and any other obligations which, by law and/or by their terms, and to the extent permitted by Spanish law, rank pari passu with the Senior Non Preferred Liabilities. 

The provisions of this Section 2.01(r) shall apply only to rights or claims payable with respect to the 2023 Fixed Rate Notes and nothing
herein shall affect or prejudice the payment of the costs, charges, expenses, liabilities, indemnity or remuneration of the Trustee, the first lien rights of the Trustee under Section 6.08 of the Base Indenture, or the rights and remedies of
the Trustee in respect thereof. 
 The Company agrees with respect to the 2023 Fixed Rate Notes and each holder of the 2023 Fixed Rate
Notes, by his or her acquisition of the 2023 Fixed Rate Notes will be deemed to have agreed to the ranking as described herein. Each such holder will be deemed to have irrevocably waived his or her rights of priority which would otherwise be
accorded to him or her under the laws of Spain, to the extent necessary to effectuate the ranking provisions of the 2023 Fixed Rate Notes. In addition, each holder of the 2023 Fixed Rate Notes by his or her acquisition of such 2023 Fixed Rate Notes
authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to effectuate the ranking of such 2023 Fixed Rate Notes as provided in the Base Indenture and appoints the Trustee his or her
attorney-in-fact for any and all such purposes; 
 (s) The form of the 2023 Fixed Rate Notes to be issued on the date hereof shall be
substantially in the form of Exhibit A hereto; 
 (t) The Company may issue additional 2023 Fixed Rate Notes (“Additional 2023
Fixed Rate Notes”) after the date hereof having the same ranking and same interest rate, maturity date, redemption terms and other terms, except for the price to the public, original interest accrual date, issue date and first 2023 Fixed
Rate Interest Payment Date, as the 2023 Fixed Rate Notes; provided, however, that such Additional 2023 Fixed Rate Notes will not have the same CUSIP, ISIN or other identifying number as the outstanding 2023 Fixed Rate Notes unless the
Additional 2023 Fixed Rate Notes are fungible with the 2023 Fixed Rate Notes for U.S. federal income tax purposes. Any such Additional 2023 Fixed Rate Notes, together with the 2023 Fixed Rate Notes, will constitute a single series of securities
under the Senior Non Preferred Indenture; and 

  
 5 

 (u) There is no Calculation Agent for the 2023 Fixed Rate Notes. 

Section 2.02. Terms of the 2028 Fixed Rate Notes. The following terms relating to the 2028 Fixed Rate Notes are hereby established
pursuant to Section 3.01 of the Base Indenture: 
 (a) The title of the 2028 Fixed Rate Notes shall be: the Series 26 3.800% Senior Non
Preferred Fixed Rate Notes due February 2028; 
 (b) the price at which the 2028 Fixed Rate Notes shall be issued is 99.539% of the principal
amount thereof; 
 (c) The aggregate principal amount of the 2028 Fixed Rate Notes that may be authenticated and delivered under the Senior
Non Preferred Indenture shall not exceed $1,000,000,000, except as otherwise provided in the Senior Non Preferred Indenture, including Section 2.02(t) hereof; 

(d) Principal on the 2028 Fixed Rate Notes shall be payable on February 23, 2028 (the “2028 Fixed Rate Maturity Date”);

 (e) The 2028 Fixed Rate Notes shall be issued in global registered form on October 23, 2017 and shall bear interest from and
including October 23, 2017 payable semi-annually in arrears on February 23 and August 23 (each, a “2028 Fixed Rate Interest Payment Date”), commencing February 23, 2018. The 2028 Fixed Rate Notes shall bear an
annual interest rate of 3.800%; 
 Interest on the 2028 Fixed Rate Notes will be calculated on the basis of a 360-day year divided into
twelve months of 30 days each and, in the case of an incomplete month, the actual number of days elapsed in such month. The Regular Record Dates for the 2028 Fixed Rate Notes will be 15 calendar days immediately preceding the relevant 2028 Fixed
Rate Interest Payment Date, whether or not a Business Day; 
 (f) No premium, upon redemption or otherwise, shall be payable by the Company
on the 2028 Fixed Rate Notes; 
 (g) Principal of and any interest on the 2028 Fixed Rate Notes shall be paid to the Holder through The Bank
of New York Mellon, as paying agent of the Company having offices in London, United Kingdom and the Borough of Manhattan, The City of New York; 

(h) The 2028 Fixed Rate Notes shall not be redeemable except as provided in Article 11 of the Base Indenture, as supplemented by this Second
Supplemental Indenture; 

  
 6 

 (i) The Company shall have no obligation to redeem or purchase the 2028 Fixed Rate Notes pursuant
to any sinking fund or analogous provision; 
 (j) The 2028 Fixed Rate Notes shall be issued only in minimum denominations of $200,000 and
integral multiples of $200,000 in excess thereof; 
 (k) The principal amount of the 2028 Fixed Rate Notes shall be payable upon the
declaration of acceleration thereof pursuant to Section 5.02 of the Base Indenture; 
 (l) Additional Amounts in respect of the 2028
Fixed Rate Notes shall be payable as set forth in the Base Indenture, as supplemented by this Second Supplemental Indenture; 
 (m) The 2028
Fixed Rate Notes shall be denominated in, and payments thereon shall be made in, U.S. Dollars only; 
 (n) The payment of principal of or
interest, if any, on the 2028 Fixed Rate Notes shall be payable only in the coin or currency in which the 2028 Fixed Rate Notes are denominated; 

(o) The 2028 Fixed Rate Notes will be issued in the form of one or more global securities in registered form, without coupons attached, and
initially registered in the name of Cede & Co., as nominee of The Depository Trust Company, the Depositary; 
 (p) The 2028 Fixed
Rate Notes will not be initially issued in definitive form; 
 (q) The Events of Default on the 2028 Fixed Rate Notes are as provided for in
the Base Indenture, as supplemented by the Second Supplemental Indenture; 
 (r) With respect to the 2028 Fixed Rate Notes,
Section 12.01 of the Base Indenture is hereby deleted in its entirety and replaced with the following: 
 The Company, for itself, its
successors and assigns, covenants and agrees, and each Holder of the 2028 Fixed Rate Notes by his acceptance thereof, likewise covenants and agrees, that the payment obligations of the Company under the 2028 Fixed Rate Notes will constitute direct,
unconditional, unsubordinated and unsecured senior non preferred obligations (créditos ordinarios no preferentes) of the Company and, in accordance with Additional Provision 14.2o of Law 11/2015, but subject to any other ranking
that may apply as a result of any mandatory provision of law (or otherwise), upon the insolvency of the Company (and unless they qualify as subordinated claims (créditos subordinados) pursuant to Article 92.1o or 92.3o to
92.7o of Law 22/2003 (Ley Concursal) dated 9 July 2003 (the “Spanish Insolvency Law”)), rank (i) pari passu among themselves and with any Senior Non Preferred Liabilities (as defined below), (ii) junior to the
Senior Higher Priority Liabilities (as defined below) (and, accordingly, upon the insolvency of the Company, the claims in respect of the 2028 Fixed Rate Notes will be met after payment in full of the Senior Higher Priority Liabilities), and
(iii) senior to any present and future subordinated obligations (créditos subordinados) of the Company in accordance with Article 92 of the Spanish Insolvency Law. 

  
 7 

 Claims of holders of 2028 Fixed Rate Notes in respect of interest accrued but unpaid as of the
commencement of any insolvency procedure in respect of the Company shall constitute subordinated claims (créditos subordinados) against the Company ranking in accordance with the provisions of Article 92.3o of the Spanish
Insolvency Law and no further interest shall accrue from the date of the declaration of insolvency of the Company. 
 “Law
11/2015” means Law 11/2015 of 18 June on recovery and resolution of credit institutions and investment firms, as amended from time to time. 

“Senior Higher Priority Liabilities” means any obligations of the Company which specify their status as ordinary senior instruments
and any other unsecured and unsubordinated obligations (créditos ordinarios) of the Company, other than the Senior Non Preferred Liabilities. 

“Senior Non Preferred Liabilities” means any unsubordinated and unsecured senior non preferred obligations (créditos
ordinarios no preferentes) of the Company under Additional Provision 14.2o of Law 11/2015, as amended by Royal Decree-Law 11/2017, of 23 June, on urgent measures in financial matters, and as further amended from time to time (including
any 2028 Fixed Rate Notes), and any other obligations which, by law and/or by their terms, and to the extent permitted by Spanish law, rank pari passu with the Senior Non Preferred Liabilities. 

The provisions of this Section 2.02(r) shall apply only to rights or claims payable with respect to the 2028 Fixed Rate Notes and nothing
herein shall affect or prejudice the payment of the costs, charges, expenses, liabilities, indemnity or remuneration of the Trustee, the first lien rights of the Trustee under Section 6.08 of the Base Indenture, or the rights and remedies of
the Trustee in respect thereof. 
 The Company agrees with respect to the 2028 Fixed Rate Notes and each holder of the 2028 Fixed Rate
Notes, by his or her acquisition of the 2028 Fixed Rate Notes will be deemed to have agreed to the ranking as described herein. Each such holder will be deemed to have irrevocably waived his or her rights of priority which would otherwise be
accorded to him or her under the laws of Spain, to the extent necessary to effectuate the ranking provisions of the 2028 Fixed Rate Notes. In addition, each holder of the 2028 Fixed Rate Notes by his or her acquisition of such 2028 Fixed Rate Notes
authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to effectuate the ranking of such 2028 Fixed Rate Notes as provided in the Base Indenture and appoints the Trustee his or her
attorney-in-fact for any and all such purposes; 
 (s) The form of the 2028 Fixed Rate Notes to be issued on the date hereof shall be
substantially in the form of Exhibit B hereto; 

  
 8 

 (t) The Company may issue additional 2028 Fixed Rate Notes (“Additional 2028 Fixed Rate
Notes”) after the date hereof having the same ranking and same interest rate, maturity date, redemption terms and other terms, except for the price to the public, original interest accrual date, issue date and first 2028 Fixed Rate Interest
Payment Date, as the 2028 Fixed Rate Notes; provided, however, that such Additional 2028 Fixed Rate Notes will not have the same CUSIP, ISIN or other identifying number as the outstanding 2028 Fixed Rate Notes unless the Additional 2028 Fixed
Rate Notes are fungible with the 2028 Fixed Rate Notes for U.S. federal income tax purposes. Any such Additional 2028 Fixed Rate Notes, together with the 2028 Fixed Rate Notes, will constitute a single series of securities under the Senior Non
Preferred Indenture; and 
 (u) There is no Calculation Agent for the 2028 Fixed Rate Notes. 

Section 2.03. Terms of the Floating Rate Notes. The following terms relating to the Floating Rate Notes are hereby established
pursuant to Section 3.01 of the Base Second Ranking Senior Indenture: 
 (a) The title of the Floating Rate Notes shall be: the Series
25 Senior Non Preferred Floating Rate Notes due 2023; 
 (b) the price at which the Floating Rate Notes shall be issued is 100.000% of the
principal amount thereof; 
 (c) The aggregate principal amount of the Floating Rate Notes that may be authenticated and delivered under the
Senior Non Preferred Indenture shall not exceed $500,000,000, except as otherwise provided in the Senior Non Preferred Indenture, including Section 2.03(t) hereof; 

(d) Principal on the Floating Rate Notes shall be payable on February 23, 2023 (the “Floating Rate Notes Maturity Date”
and, together with the 2023 Fixed Rate Maturity Date and the 2028 Fixed Rate Maturity Date, a ‘Maturity Date”); 
 (e) The
Floating Rate Notes shall be issued in global registered form on October 23, 2017 and shall bear interest from and including October 23, 2017 payable quarterly in arrears on February 23, May 23, August 23 and
November 23 (each, a “Floating Rate Note Interest Payment Date” and, together with the 2023 Fixed Rate Interest Payment Date and the 2028 Fixed Rate Interest Payment Date, an “Interest Payment Date” ),
commencing November 23, 2017. The Floating Rate Notes shall bear interest at a floating rate determined in the manner provided below. 

The Regular Record Dates for the Floating Rate Notes will be 15 calendar days immediately preceding the relevant Floating Rate Note Interest
Payment Date, whether or not a Business Day; provided, however, that interest payable on the maturity date or any redemption date shall be payable to the person to whom the principal of such Floating Rate Notes shall be payable. 

  
 9 

 If any Floating Rate Notes Interest Payment Date (other than the Floating Rate Notes Maturity
Date or any redemption date) falls on a day that is not a Business Day, the Floating Rate Notes Interest Payment Date will be postponed to the next succeeding Business Day and interest will accrue to but excluding such Floating Rate Notes Interest
Payment Date, except that if such Business Day falls in the next succeeding calendar month, the applicable Floating Rate Notes Interest Payment Date will be the immediately preceding Business Day. If the maturity date or any redemption date of the
Floating Rate Notes falls on a day that is not a Business Day, the payment of principal, premium and Additional Amounts, if any, and interest, if any, otherwise payable on such date will be postponed to the next succeeding Business Day, and no
interest on such payment will accrue from and after the maturity date or such redemption date, as applicable. 
 The interest rate on the
Floating Rate Notes will be reset quarterly on February 23, May 23, August 23 and November 23 of each year, beginning on November 23, 2017 through November 23, 2022 (each an “Interest Reset Date”).
However, if any Interest Reset Date would otherwise be a day that is not a Business Day, such Interest Reset Date will be the next succeeding day that is a Business Day, except that if the next succeeding Business Day falls in the next succeeding
calendar month, the applicable Interest Reset Date will be the immediately preceding Business Day. 
 The interest rate in effect during the
initial interest period from, and including, October 23, 2017 to, but excluding November 23, 2017 will be equal to Three-Month USD LIBOR, determined by the Calculation Agent two London Business Days prior to October 23, 2017, plus 109
basis points. 
 A “London Business Day” is a day on which dealings in deposits in U.S. dollars are transacted in the
London interbank market and the Trans-European Automated Real-time Gross Settlement Express Transfer system (the “TARGET2 System”), or any successor thereto, is open for business. 

After the initial interest period, the interest periods will be the periods from and including an Interest Reset Date to but excluding the
immediately succeeding Interest Reset Date, except that the final interest period will be the period from and including the Interest Reset Date immediately preceding the Floating Rate Notes Maturity Date to but excluding the Floating Rate Notes
Maturity Date (each a “Floating Rate Notes Interest Period”). The interest rate per year for the Floating Rate Notes in any Floating Rate Notes Interest Period (which, for the avoidance of doubt, does not include the initial
interest period) will be equal to Three-Month USD LIBOR plus 109 basis points (the “Floating Rate Notes Interest Rate”), as determined by the Calculation Agent. The Floating Rate Notes Interest Rate in effect for the 15 calendar
days prior to any redemption date earlier than the maturity date will be the Floating Rate Notes Interest Rate in effect on the 15th day preceding such earlier redemption date. 

The Floating Rate Notes Interest Rate will be limited to the maximum rate permitted by New York law, as the same may be modified by United
States law of general application. 

  
 10 

 Upon the request of any holder of Floating Rate Notes, the Calculation Agent will provide the
Floating Rate Notes Interest Rate then in effect and, if determined, the Floating Rate Notes Interest Rate that will become effective on the next Interest Reset Date. 

The Calculation Agent will determine Three-Month USD LIBOR for each Interest Period on the second London Business Day prior to the first day
of such Interest Period (the “Interest Determination Date”). 
 Three-Month USD LIBOR” with respect to any Interest
Determination Date, will be the offered rate for deposits of U.S. dollars having a maturity of three months that appears on “Reuters Page LIBOR01” at approximately 11:00 a.m., London time, on such Interest Determination Date. If on an
Interest Determination Date, such rate does not appear on the “Reuters Page LIBOR01” as of 11:00 a.m., London time, or if “Reuters Page LIBOR01” is not available on such date, the Calculation Agent will obtain such rate from
Bloomberg L.P.’s page “BBAM.” 
 If no offered rate appears on “Reuters Page LIBOR01” or Bloomberg L.P.
page “BBAM” on an Interest Determination Date, LIBOR will be determined for such Interest Determination Date on the basis of the rates at approximately 11:00 a.m., London time, on such Interest Determination Date at which deposits in
U.S. dollars are offered to prime banks in the London inter-bank market by four major banks in such market selected by the Company, for a term of three months commencing on the applicable Interest Reset Date and in a principal amount equal to an
amount that in the judgment of the Calculation Agent is representative for a single transaction in U.S. dollars in such market at such time. The Calculation Agent will request the principal London office of each of such banks to provide a quotation
of its rate. If at least two such quotations are provided, Three-Month LIBOR for such Floating Rate Notes Interest Period will be the arithmetic mean of such quotations. If fewer than two such quotations are provided, Three-Month LIBOR for such
Floating Rate Notes Interest Period will be the arithmetic mean of the rates quoted at approximately 11:00 a.m. in New York City on such Interest Determination Date by three major banks in New York City, selected by the Company, for loans in
U.S. dollars to leading European banks, for a term of three months commencing on the applicable Floating Rate Notes Interest Reset Date and in a principal amount equal to an amount that in the judgment of the Calculation Agent is representative for
a single transaction in U.S. dollars in such market at such time; provided, however, that if the banks so selected are not quoting as mentioned above, the then-existing Three-Month LIBOR rate will remain in effect for such Floating Rate Notes
Interest Period, or, if none, the interest rate will be the initial interest rate 
 All percentages resulting from any calculation of any
Floating Rate Notes Interest Rate will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point, with five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) would be rounded to
9.87655% (or .0987655)), and all U.S. dollar amounts will be rounded to the nearest cent, with one-half cent being rounded upward. The amount of interest payable in respect of each Floating Rate Note will be calculated by applying the applicable
Floating Rate Notes Interest Rate for such Floating Rate Notes Interest Period to the outstanding principal amount of such Floating Rate Notes, 

  
 11 

 
multiplying the product by the actual number of days in such Interest Period and dividing by 360. Each calculation of the Floating Rate Notes Interest Rate by the Calculation Agent will (in the
absence of manifest error) be final and binding on the Company, the Trustee and the Holders of the Floating Rate Notes. 
 Promptly upon
such determination, the Calculation Agent will notify the Company and the Trustee (if the Calculation Agent is not the Trustee) of the Floating Rate Notes Interest Rate for the new Floating Rates Notes Interest Period; 

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

(g) Principal of and any interest on the Floating Rate Notes shall be paid to the Holder through The Bank of New York Mellon, as paying agent
of the Company having offices in London, United Kingdom and the Borough of Manhattan, The City of New York; 
 (h) The Floating Rate Notes
shall not be redeemable except as provided in Article 11 of the Base Indenture, as supplemented by this Second Supplemental Indenture; 
 (i)
The Company shall have no obligation to redeem or purchase the Floating Rate Notes pursuant to any sinking fund or analogous provision; 

(j) The Floating Rate Notes shall be issued only in minimum denominations of $200,000 and integral multiples of $200,000 in excess thereof;

 (k) The principal amount of the Floating Rate Notes shall be payable upon the declaration of acceleration thereof pursuant to
Section 5.02 of the Base Indenture; 
 (l) Additional Amounts in respect of the Floating Rate Notes shall be payable as set forth in the
Base Indenture, as supplemented by this Second Supplemental Indenture; 
 (m) The Floating Rate Notes shall be denominated in, and payments
thereon shall be made in, U.S. Dollars only; 
 (n) The payment of principal of or interest, if any, on the Floating Rate Notes shall be
payable only in the coin or currency in which the Floating Rate Notes are denominated; 
 (o) The Floating Rate Notes will be issued in the
form of one or more global securities in registered form, without coupons attached, and initially registered in the name of Cede & Co., as nominee of The Depository Trust Company, the Depositary; 

(p) The Floating Rate Notes will not be initially issued in definitive form; 

(q) The Events of Default on the Floating Rate Notes are as provided for in the Base Indenture, as supplemented by the Second Supplemental
Indenture; 

  
 12 

 (r) With respect to the Floating Rate Notes, Section 12.01 of the Base Indenture is hereby
deleted in its entirety and replaced with the following: 
 The Company, for itself, its successors and assigns, covenants and agrees, and
each Holder of the Floating Rate Notes by his acceptance thereof, likewise covenants and agrees, that the payment obligations of the Company under the Floating Rate Notes will constitute direct, unconditional, unsubordinated and unsecured senior non
preferred obligations (créditos ordinarios no preferentes) of the Company and, in accordance with Additional Provision 14.2o of Law 11/2015, but subject to any other ranking that may apply as a result of any mandatory provision of
law (or otherwise), upon the insolvency of the Company (and unless they qualify as subordinated claims (créditos subordinados) pursuant to Article 92.1o or 92.3o to 92.7o of Law 22/2003 (Ley Concursal) dated 9 July
2003 (the “Spanish Insolvency Law”)), rank (i) pari passu among themselves and with any Senior Non Preferred Liabilities (as defined below), (ii) junior to the Senior Higher Priority Liabilities (as defined below) (and,
accordingly, upon the insolvency of the Company, the claims in respect of the Floating Rate Notes will be met after payment in full of the Senior Higher Priority Liabilities), and (iii) senior to any present and future subordinated obligations
(créditos subordinados) of the Company in accordance with Article 92 of the Spanish Insolvency Law. 
 Claims of holders of
Floating Rate Notes in respect of interest accrued but unpaid as of the commencement of any insolvency procedure in respect of the Company shall constitute subordinated claims (créditos subordinados) against the Company ranking in
accordance with the provisions of Article 92.3o of the Spanish Insolvency Law and no further interest shall accrue from the date of the declaration of insolvency of the Company. 

“Law 11/2015” means Law 11/2015 of 18 June on recovery and resolution of credit institutions and investment firms, as amended
from time to time. 
 “Senior Higher Priority Liabilities” means any obligations of the Company which specify their status as
ordinary senior instruments and any other unsecured and unsubordinated obligations (créditos ordinarios) of the Company, other than the Senior Non Preferred Liabilities. 

“Senior Non Preferred Liabilities” means any unsubordinated and unsecured senior non preferred obligations (créditos
ordinarios no preferentes) of the Company under Additional Provision 14.2o of Law 11/2015, as amended by Royal Decree-Law 11/2017, of 23 June, on urgent measures in financial matters, and as further amended from time to time (including
any Floating Rate Notes), and any other obligations which, by law and/or by their terms, and to the extent permitted by Spanish law, rank pari passu with the Senior Non Preferred Liabilities. 

The provisions of this Section 2.03(r) shall apply only to rights or claims payable with respect to the Floating Rate Notes and nothing
herein shall affect or prejudice the payment of the costs, charges, expenses, liabilities, indemnity or remuneration of the Trustee, the first lien rights of the Trustee under Section 6.08 of the Base Indenture, or the rights and remedies of
the Trustee in respect thereof. 

  
 13 

 The Company agrees with respect to the Floating Rate Notes and each holder of the Floating Rate
Notes, by his or her acquisition of the Floating Rate Notes will be deemed to have agreed to the ranking as described herein. Each such holder will be deemed to have irrevocably waived his or her rights of priority which would otherwise be accorded
to him or her under the laws of Spain, to the extent necessary to effectuate the ranking provisions of the Floating Rate Notes. In addition, each holder of the Floating Rate Notes by his or her acquisition of such Floating Rate Notes authorizes and
directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to effectuate the ranking of such Floating Rate Notes as provided in the Base Indenture and appoints the Trustee his or her attorney-in-fact for any and
all such purposes; 
 (s) The form of the Floating Rate Notes to be issued on the date hereof shall be substantially in the form of
Exhibit C hereto; 
 (t) The Company may issue additional Floating Rate Notes (“Additional Floating Rate Notes” and,
together with the Additional 2023 Fixed Rate Notes and Additional 2028 Fixed Rate Notes, “Additional Notes”) after the date hereof having the same ranking and same interest rate, maturity date, redemption terms and other terms,
except for the price to the public, original interest accrual date, issue date and first Interest Payment Date, as the Floating Rate Notes; provided, however, that such Additional Floating Rate Notes will not have the same CUSIP, ISIN or
other identifying number as the outstanding Floating Rate Notes unless the Additional Floating Rate Notes are fungible with the Floating Rate Notes for U.S. federal income tax purposes. Any such Additional Floating Rate Notes, together with the
Floating Rate Notes, will constitute a single series of securities under the Senior Non Preferred Indenture; and 
 (u) The initial
Calculation Agent for the Floating Rate Notes shall be the Trustee. 
 ARTICLE 3 

ADDITIONAL TERMS APPLICABLE TO THE SENIOR NON PREFERRED NOTES 

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

“Issue Date” means October 23, 2017, being the date of the initial issue of the Senior Non Preferred
Notes. 
 “Maturity Date” has the meaning provided in Section 2.02(d) hereof. 

“Business Day” means any day, other than Saturday or Sunday, that is not a Legal Holiday nor a day on which
banking institutions are authorized or required by law, regulation or executive order to close in the City of New York or London nor a day when the Trans-European Automated Real-time Gross Settlement Express Transfer system (the “TARGET2
System”), or any successor thereto, is closed for business. 

  
 14 

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

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

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

“U.S. Government Obligations” means non-callable (i) direct obligations of the United States for which
its full faith and credit are pledged and/or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States, the payment of which is unconditionally guaranteed as a full faith and credit
obligation of the United States, and shall also include a depository receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to any such U.S. Government Obligation or a
specific payment of principal of or interest on any such U.S. Government Obligation held by such custodian for the account of the holder of such depository receipt, provided that (except as required by law) such custodian is not authorized to make
any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation or the specific payment of principal of or interest on the U.S. Government
Obligation evidenced by such depository receipt. 
 Section 3.03. Replacement of Definitions. With respect to the Senior Non
Preferred Notes only, Section 1.01 of the Base Indenture is amended to replace in their entirety the following definitions: 

  
 15 

 An “Alignment Event” is deemed to have occurred if there is a change in or
amendment to, the Applicable TLAC/MREL Regulations, or any change in the application or interpretation thereof, that results in the requirements of unsubordinated and unsecured instruments qualifying as senior non preferred obligations
(créditos ordinarios no preferentes) under Additional Provision 14.2o of Law 11/2015, as amended or superseded from time to time, or qualifying as TLAC/MREL-Eligible Instruments being different in any respect from the terms and
conditions of the Senior Non Preferred Notes of any of the series issued. Further, an Alignment Event will be deemed to have occurred if as a result of the relevant change or amendment, only securities issued on or following a certain date which is
after the issue date of the Senior Non Preferred Notes may qualify as unsubordinated and unsecured senior non preferred obligations (créditos ordinarios no preferentes) of the Company under Additional Provision 14.2o of Law
11/2015, as amended or superseded from time to time. 
 Section 3.04. Amendment of Definitions. Any references to
“Second Ranking Senior Debt Securities” in the Base Indenture (as amended by this Second Supplemental Indenture) shall be deemed to include the Senior Non Preferred Debt Securities. 

Section 3.05. Collection of Indebtedness and Suits for Enforcement by the Trustee. With respect to the Senior Non Preferred Notes
only, Section 5.03 of the Base Indenture is amended in part to add the following sentences at the end of the section: 
 No remedy
against the Company other than as referred to in this Article 5 shall be available to the Holders, whether for the recovery of amounts owing to the Holders in respect of the Senior Non Preferred Debt Securities or under this Senior Non Preferred
Debt Securities Indenture or in respect of any breach by the Company of any of its other obligations under or in respect of the Senior Non Preferred Debt Securities or under this Senior Non Preferred Debt Securities Indenture, except that the
Holders shall have such rights and powers as they are required to have under the Trust Indenture Act. 
 Section 3.06. Deletion of
Satisfaction and Discharge Provisions. With respect to the Senior Non Preferred Notes only, Article 4 of the Base Indenture is deleted in its entirety. 

Section 3.07. Deletion of Provisions with Respect to Selection by the Trustee of Senior Non Preferred Debt Securities to Be
Redeemed. With respect to the Senior Non Preferred Notes only, the first paragraph of Section 11.03 of the Base Indenture is deleted in its entirety. 

Section 3.08. Deletion of Provisions with Respect to Optional Early Redemption (Call). With respect to the Senior Non Preferred
Notes only, Section 11.10 of the Base Indenture is deleted in its entirety. 
 Section 3.09. Payment. Notwithstanding
Section 3.07 of the Base Indenture, payments of interest, if any, and any Additional Amounts on the Senior Non Preferred Notes may be made by wire transfer of immediately available funds. 

  
 16 

 Section 3.10. Replacement of Provisions with Respect to Events of Default. With
respect to the Senior Non Preferred Notes only, Section 5.01(ii) of the Base Indenture is hereby replaced with the following: 

Winding up: any order is made by any competent court or resolution passed for the winding up or dissolution of Banco Santander (except in any
such case for the purpose of reconstruction or a merger or amalgamation which has been previously approved by the holders of at least a majority of the outstanding principal amount of the second ranking senior debt securities of that series, or a
merger, reconstruction or amalgamation, in this case even without being approved by holders of the second ranking senior debt securities of such series, provided that such merger, reconstruction or amalgamation is carried out in compliance with the
requirements set forth in Section 8.01 of the Base Indenture). 
 ARTICLE 4 

MISCELLANEOUS 
 Section 4.01.
Effect Of Supplemental Indenture. Upon the execution and delivery of this Second Supplemental Indenture by each of the Company and the Trustee, the Base Indenture shall be supplemented in accordance herewith, and this Second Supplemental
Indenture shall form a part of the Base Indenture for all purposes in respect of the Senior Non Preferred Notes or otherwise as applicable. 

Section 4.02. Confirmation Of Indenture. The Base Indenture, as supplemented and amended by this Second Supplemental Indenture
with respect to the Senior Non Preferred Notes or otherwise as applicable, is in all respects ratified and confirmed, and the Base Indenture, this Second Supplemental Indenture and all indentures supplemental thereto shall, in respect of the Senior
Non Preferred Notes or otherwise as applicable, be read, taken and construed as one and the same instrument. This Second Supplemental Indenture constitutes an integral part of the Senior Non Preferred Indenture and, where applicable, with respect to
the Senior Non Preferred Notes. In the event of a conflict between the terms and conditions of the Base Indenture and the terms and conditions of this Second Supplemental Indenture, the terms and conditions of this Second Supplemental Indenture
shall prevail where applicable. 
 Section 4.03. Concerning The Trustee. The Trustee does not make any representations as to the
validity, sufficiency or adequacy of this Second Supplemental Indenture or the Senior Non Preferred Notes. The recitals and statements herein and in the Senior Non Preferred Notes are deemed to be those of the Company and not the Trustee. In
entering into this Second Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the Base Indenture relating to the conduct of or affecting the liability of or affording protection to the Trustee. 

Section 4.04. Governing Law. The Senior Non Preferred Indenture and the Senior Non Preferred Notes shall be governed by and
construed in accordance with the laws of the State of New York (without giving effect to the choice of law provisions), except for Section 12.01 of the Base Indenture, Sections 2.01(r), 2.02(r) and 2.03(r) of

  
 17 

 
this Second Supplemental Indenture and the status provisions of the Senior Non Preferred Notes, which shall be governed by and construed in accordance with the laws of the Kingdom of Spain, and
except that the authorization and execution by the Company of the Senior Non Preferred Indenture and the Senior Non Preferred Notes shall be governed by (in addition to the laws of the State of New York relevant to execution) the respective
jurisdictions of the Company and the Trustee, as the case may be. 
 Section 4.05. Separability. In case any provision contained
in this Second Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 4.06. Counterparts. This Second 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. The exchange of copies of this Second Supplemental Indenture and of signature pages by facsimile or electronic format (i.e., “pdf” or
“tif”) transmission shall constitute effective execution and delivery of this Second Supplemental Indenture as to the parties hereto and may be used in lieu of the original Second Supplemental Indenture for all purposes. 

[Signature Pages Follow] 

  
 18 

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

			
	BANCO SANTANDER, S.A., as Issuer
		
	By:	 	 /s/ José Antonio Soler Ramos

	Name:	 	José Antonio Soler Ramoes
	Title:	 	Authorized Representative

 [Signature Page to Second Supplemental Indenture] 

  
 19 

 
			
	THE BANK OF NEW YORK MELLON, as Trustee
		
	By:	 	 /s/ Maria Bertolin

	Name:	 	Maria Bertolin
	Title:	 	Authorised Signatory

 [Signature Page to Second Supplemental Indenture] 

 EXHIBIT A 

FORM OF GLOBAL NOTE 
 THIS NOTE IS A
GLOBAL SECURITY AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY AS THE DEPOSITARY (AS DEFINED IN THE SENIOR NON PREFERRED INDENTURE GOVERNING THIS NOTE), OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS
NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE BASE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO
SECTION 3.05 OF THE BASE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 3.09 OF THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SENIOR NON PREFERRED NOTES IN DEFINITIVE FORM, THIS NOTE 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 GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY GLOBAL SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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. 
 THE RANKING OF THIS NOTE IS SET FORTH IN
SECTION 2.01(r) OF THE SECOND SUPPLEMENTAL INDENTURE AND THIS NOTE IS ISSUED SUBJECT TO THE PROVISIONS OF THAT SECTION 2.01(r), AND THE HOLDER OF THIS NOTE, BY ACCEPTING THE SAME, AGREES TO AND SHALL BE BOUND BY SUCH PROVISIONS. THE PROVISIONS OF
SECTION 2.01(r) OF THE SECOND SUPPLEMENTAL INDENTURE AND THE TERMS OF THIS PARAGRAPH ARE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE KINGDOM OF SPAIN. 

  
 A-1 

 CUSIP No. 05964H AE5 

ISIN No. US05964HAE53 
 SERIES 24
3.125% SENIOR NON PREFERRED FIXED RATE NOTES DUE 2023 
 Issued by 

BANCO SANTANDER, S.A. 
  

			
	No.	  	$

 BANCO SANTANDER, S.A., a sociedad anónima unipersonal, incorporated under the laws of the Kingdom of Spain
(herein called the “Company”, which term includes any successor person under the Senior Non Preferred Indenture (as defined on the reverse hereof)), for value received, hereby promises to pay to CEDE & CO., or registered assigns,
the principal sum of $             (             dollars) on February 23, 2023 or on such earlier date as the principal
hereof may become due in accordance with the terms hereof and to pay interest thereon semi-annually in arrears on February 23 and August 23 of each year, commencing on February 23, 2018, and ending on February 23, 2023 (each, a
“Payment Date”). Interest so payable on any Payment Date shall be paid to the Holder in whose name this Note is registered on the 15th calendar day immediately preceding the relevant Payment Date, whether or not such day is a Business Day,
as defined in the Senior Non Preferred Indenture (each a “Regular Record Date”). 
 Interest shall accrue on this Note from day to
day from the date of issuance hereof or from the most recent Payment Date at the rate of 3.125% per annum, until the principal amount hereof is paid or made available for payment. 

Payments of interest on this Note shall be computed on the basis of a 360-day year divided into twelve months of 30 days each and, in the case
of an incomplete month, the actual number of days elapsed in such month. 
 Payment of the principal amount of and any interest on, this
Note will be made by wire transfer of immediately available funds in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. Such payment shall be made to the Holder
including through a Paying Agent of the Company for collection by the Holder. If the date for payment of the principal amount hereof or interest thereon is not a Business Day, then (subject as provided in the Senior Non Preferred Indenture) such
payment shall be made on the next succeeding Business Day with the same force and effect as if made on such date for payment, provided that no interest shall accrue on such payment for the period from and after such payment date. 

  
 A-2 

 The 2023 Fixed Rate Notes are issuable in minimum denominations of $200,000 and integral
multiples of $200,000 in excess thereof. 
 For information purposes only, without any substantive effect whatsoever and solely in order to
comply with Article 413(d) of the Spanish Companies Law (Ley de Sociedades de Capital), approved by Royal Decree 1/2010, of July 2, to the extent applicable, it is hereby noted that the initial aggregate principal amount of the 2023
Fixed Rate Notes, i.e., US$1,000,000,000, was equivalent to approximately €849,906,510.28, based on the exchange rate as of October 17, 2017 of US $1.1766 per €1.00. Amounts due on the Notes shall not under any circumstances
whatsoever be payable in any currency other than U.S. Dollars. 
 Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner of such Note for the purpose of receiving payment of principal and interest, if any, on and any Additional
Amounts with respect to such Note and for all other purposes whatsoever, whether or not such Note be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary. 

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

Notwithstanding any other term of this Note or any other agreements, arrangements, or understandings between the Company and any Holder of the
2023 Fixed Rate Notes, by its acquisition of this Note, each Holder (which, for the purposes of this clause, includes each holder of a beneficial interest in this Note) acknowledges, accepts, consents to and agrees to be bound by the exercise of any
Bail-in Power by the Relevant Resolution Authority that may result in the write-down or cancellation of all or a portion of the Amounts Due on this Note and/or the conversion of all or a portion of the Amounts Due on this Note into shares or other
securities or other obligations of the Company or another person, including by means of a variation to the terms of this Note to give effect to the exercise by the Relevant Resolution Authority of such Bail-in Power. Each Holder of this Note further
acknowledges and agrees that the rights of the Holder of this Note are subject to—and will be varied, if necessary, so as to give effect to— the exercise of any Bail-in Power by the Relevant Resolution Authority: 

For these purposes, “Amounts Due” means the principal amount of, premium, if any, together with any accrued but unpaid interest, and
Additional Amounts, if any, due on this Note. References to such amounts will include amounts that have become due and payable, but which have not been paid, prior to the exercise of the Bail-in Power by the Relevant Resolution Authority. 

For these purposes, “Bail-in Power” means any statutory write-down and/or conversion power existing from time to time under any
laws, regulations, rules or requirements in effect in the Kingdom of Spain relating to the resolution of Regulated Entities applicable to the Company or other Regulated Entities of the group, including (but not limited to) (i) the transposition
of the 

  
 A-3 

 
BRRD (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time, (ii) Regulation (EU)
No. 806/2014 of the European Parliament and of the Council of 15 July 2014, establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of the Single Resolution
Mechanism and the Single Resolution Fund and amending Regulation (EU) No. 1093/2010 (as amended or superseded from time to time, the “SRM Regulation”) and (iii) the instruments, rules and standards created thereunder, pursuant to
which any obligation of a Regulated Entity (or an affiliate of such Regulated Entity) can be reduced, cancelled and/or converted into shares or other securities or obligations of such Regulated Entity (or affiliate of such Regulated Entity) or any
other person. 
 The term “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit
institutions and investment firms, as amended or superseded from time to time. 
 The term “Regulated Entity” means any legal
person to which BRRD, as implemented in the Kingdom of Spain (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time), the SRM Regulation, or any other
Spanish law relating to Bail-in Power, applies, which includes, certain credit entities, investment firms, and certain parent or holding companies. 

The term “Relevant Resolution Authority” means the Spanish Fund for the Orderly Restructuring of Banks or the European Single
Resolution Mechanism, as the case may be, according to Law 11/2015, and any other entity with the authority to exercise the Bail-in Power or any other resolution power from time to time. 

The public deed of issuance (escritura de emisión) related to the Notes represented hereby was executed on October 19, 2017
before Mr. Miguel Ruiz-Gallardón García de la Rasilla with the number 4425 of his records. 

  
 A-4 

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

Dated: [•] 
  

			
	BANCO SANTANDER, S.A.

 
			
		
	By:	 	  

	Name:
	Title:

 
			
		
	By:	 	  

	Name:
	Title:

 [Global Note Signature Page] 

  
 A-5 

 CERTIFICATE OF AUTHENTICATION 

This is one of the 2023 Fixed Rate Notes referred to in the within-mentioned Senior Non Preferred Indenture. 

Dated: [•] 
  

			
	THE BANK OF NEW YORK MELLON,
	        as Trustee
		
	By:	 	  

		 	Authorized Signatory

 [Global Note Signature Page] 

  
 A-6 

 [REVERSE OF SECURITY] 

This Note is one of a duly authorized issue of securities of the Company (herein called the “2023 Fixed Rate Notes”) issued and to
be issued in one or more series under a Second Ranking Senior Debt Securities Indenture, dated as of April 11, 2017 (herein called the “Base Indenture”), among the Company, as issuer and The Bank of New York Mellon acting through its
London Branch, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Base Indenture), as supplemented by the Second Supplemental Indenture, dated as of October 23, 2017, among the Company and the
Trustee (the “Second Supplemental Indenture”, and, together with the Base Indenture, the “Senior Non Preferred Indenture”) to which Senior Non Preferred 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 Company and the Trustee and the Holders of the 2023 Fixed Rate Notes and of the terms upon which the 2023 Fixed Rate Notes are, and are to be,
authenticated and delivered. Capitalized terms used herein are used as defined in the Senior Non Preferred Indenture unless otherwise indicated. The terms of the 2023 Fixed Rate Notes include those stated in the Senior Non Preferred
Indenture. The 2023 Fixed Rate Notes are subject to all such terms, and Holders are referred to the Senior Non Preferred Indenture for a statement of all such terms. To the extent permitted by applicable law, in the event of any
inconsistency between the terms of this 2023 Fixed Rate Note and the terms of the Senior Non Preferred Indenture, the terms of the Senior Non Preferred Indenture will control. 

This Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $1,000,000,000; provided,
that the Company may, from time to time, without the consent of the Holders of the 2023 Fixed Rate Notes, issue additional Senior Non Preferred Debt Securities under the Senior Non Preferred Indenture, having the same ranking and same interest rate,
maturity, redemption terms and other terms, except for the price to the public, original interest accrual date, issue date and first Interest Payment Date, as the 2023 Fixed Rate Notes; provided, however, that such additional 2023 Fixed Rate
Notes will not have the same CUSIP, ISIN or other identifying number as the outstanding 2023 Fixed Rate Notes unless the additional 2023 Fixed Rate Notes are fungible with the 2023 Fixed Rate Notes for U.S. federal income tax purposes. Any such
additional 2023 Fixed Rate Notes, together with the 2023 Fixed Rate Notes, will constitute a single series of 2023 Fixed Rate Notes under the Senior Non Preferred Indenture and shall be included in the definition of “Second Ranking Senior Debt
Securities” in the Base Indenture where the context requires. 
 The payment obligations of the Company under the 2023 Fixed Rate Notes
will constitute direct, unconditional, unsubordinated and unsecured senior non preferred obligations (créditos ordinarios no preferentes) of the Company and, in accordance with Additional Provision 14.2o of Law 11/2015, but
subject to any other ranking that may apply as a result of any mandatory provision of law (or otherwise), upon the insolvency of the Company (and unless they qualify as subordinated claims (créditos subordinados) pursuant to Article
92.1o or 92.3o to 92.7o of Law 22/2003 (Ley Concursal) dated 9 July 2003 (the “Spanish Insolvency Law”)), rank (i) pari passu among themselves and with any Senior Non Preferred Liabilities (as defined
below), (ii) junior to the Senior Higher Priority Liabilities (as defined below) (and, accordingly, upon the insolvency of the Company, the claims in respect of the 2023 Fixed Rate Notes will be met after payment in full of the Senior Higher
Priority Liabilities), and (iii) senior to any present and future subordinated obligations (créditos subordinados) of the Company in accordance with Article 92 of the Spanish Insolvency Law. 

  
 A-7 

 Claims of holders of 2023 Fixed Rate Notes in respect of interest accrued but unpaid as of the
commencement of any insolvency procedure in respect of the Company shall constitute subordinated claims (créditos subordinados) against the Company ranking in accordance with the provisions of Article 92.3o of the Spanish
Insolvency Law and no further interest shall accrue from the date of the declaration of insolvency of the Company. 
 “Law
11/2015” means Law 11/2015 of 18 June on recovery and resolution of credit institutions and investment firms, as amended from time to time. 

“Senior Higher Priority Liabilities” means any obligations of the Company which specify their status as ordinary senior instruments
and any other unsecured and unsubordinated obligations (créditos ordinarios) of the Company, other than the Senior Non Preferred Liabilities. 

“Senior Non Preferred Liabilities” means any unsubordinated and unsecured senior non preferred obligations (créditos
ordinarios no preferentes) of the Company under Additional Provision 14.2o of Law 11/2015, as amended by Royal Decree-Law 11/2017, of 23 June, on urgent measures in financial matters, and as further amended from time to time (including
any 2023 Fixed Rate Notes), and any other obligations which, by law and/or by their terms, and to the extent permitted by Spanish law, rank pari passu with the Senior Non Preferred Liabilities. 

The provisions of Section 2.01(r) of the Second Supplemental Indenture shall apply only to rights or claims payable with respect to the
2023 Fixed Rate Notes and nothing herein shall affect or prejudice the payment of the costs, charges, expenses, liabilities, indemnity or remuneration of the Trustee, the first lien rights of the Trustee under Section 6.08 of the Base
Indenture, or the rights and remedies of the Trustee in respect thereof. 
 The Company agrees with respect to the 2023 Fixed Rate Notes and
each holder of the 2023 Fixed Rate Notes, by his or her acquisition of the 2023 Fixed Rate Notes will be deemed to have agreed to the ranking as described herein. Each such holder will be deemed to have irrevocably waived his or her rights of
priority which would otherwise be accorded to him or her under the laws of Spain, to the extent necessary to effectuate the ranking provisions of the 2023 Fixed Rate Notes. In addition, each holder of the 2023 Fixed Rate Notes by his or her
acquisition of such 2023 Fixed Rate Notes authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to effectuate the ranking of such 2023 Fixed Rate Notes as provided in the Base Indenture and
appoints the Trustee his or her attorney-in-fact for any and all such purposes. 
 Notwithstanding any other term of this Note or any other
agreements, arrangements, or understandings between the Company and any Holder of the 2023 Fixed Rate Notes, by its acquisition of this Note, each Holder (which, for the purposes of this clause, includes each holder of a beneficial interest in this
Note) acknowledges, accepts, consents to and agrees to be bound by the exercise of any Bail-in Power by the Relevant Resolution Authority that may result in the write-down or cancellation of all or a portion of the Amounts Due on this Note and/or
the conversion of all or a portion of the Amounts Due on this Note into shares or other securities or other obligations of the Company or another person, including by means of a variation 

  
 A-8 

 
to the terms of the 2023 Fixed Rate Notes to give effect to the exercise by the Relevant Resolution Authority of such Bail-in Power. Each Holder of this Note further acknowledges and agrees that
the rights of the Holders of the 2023 Fixed Rate Notes are subject to—and will be varied, if necessary, so as to give effect to— the exercise of any Bail-in Power by the Relevant Resolution Authority: 

For these purposes, “Amounts Due” means the principal amount of, premium, if any, together with any accrued but unpaid interest, and
Additional Amounts, if any, due on the 2023 Fixed Rate Notes. References to such amounts will include amounts that have become due and payable, but which have not been paid, prior to the exercise of the Bail-in Power by the Relevant Resolution
Authority. 
 For these purposes, “Bail-in Power” means any statutory write-down and/or conversion power existing from time to
time under any laws, regulations, rules or requirements in effect in the Kingdom of Spain relating to the resolution of Regulated Entities applicable to the Company or other Regulated Entities of the group, including (but not limited to)
(i) the transposition of the BRRD (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time, (ii) Regulation (EU) No. 806/2014 of the European
Parliament and of the Council of 15 July 2014, establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of the Single Resolution Mechanism and the Single
Resolution Fund and amending Regulation (EU) No. 1093/2010 (as amended or superseded from time to time, the “SRM Regulation”) and (iii) the instruments, rules and standards created thereunder, pursuant to which any obligation of
a Regulated Entity (or an affiliate of such Regulated Entity) can be reduced, cancelled and/or converted into shares or other securities or obligations of such Regulated Entity (or affiliate of such Regulated Entity) or any other person. 

The term “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and
investment firms, as amended or superseded from time to time. 
 The term “Regulated Entity” means any legal person to which BRRD,
as implemented in the Kingdom of Spain (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time), the SRM Regulation, or any other Spanish law relating to
Bail-in Power, applies, which includes, certain credit entities, investment firms, and certain parent or holding companies. 
 The term
“Relevant Resolution Authority” means the Spanish Fund for the Orderly Restructuring of Banks or the European Single Resolution Mechanism, as the case may be, according to Law 11/2015, and any other entity with the authority to exercise
the Bail-in Power or any other resolution power from time to time. 
 Upon the Company being informed or notified by the Relevant Resolution
Authority of the actual exercise of the date from which the Bail-in Power is effective with respect to the 2023 Fixed Rate Notes, the Company will provide a written notice to the holders of the 2023 Fixed Rate Notes through DTC without delay
regarding such exercise of Bail-in Power. The Company will also deliver a copy of such notice to the Trustee for information purposes. Any delay or failure by the Company to give notice shall not affect the validity and enforceability of the Bail-in
Power nor the effects on the 2023 Fixed Rate Notes described in this clause. 

  
 A-9 

 No repayment or payment of Amounts Due, if any, on the 2023 Fixed Rate Notes, will become due and
payable or be paid after the exercise of any Bail-in Power by the Relevant Resolution Authority if and to the extent such amounts have been reduced, converted, cancelled, amended or altered as a result of such exercise. 

By its acquisition of this Note, each Holder of this Note, (which, for the purposes of this clause, includes each holder of a beneficial
interest in this Note), 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 Bail-in Power by the Relevant Resolution Authority with respect to this Note. 

Additionally, by its acquisition of this Note, each Holder of this Note acknowledges and agrees that, upon the exercise of the Bail-in Power
by the Relevant Resolution Authority: 
 (i) the Trustee will not be required to take any further directions from the Holders of the 2023
Fixed Rate Notes with respect to any portion of the 2023 Fixed Rate Notes that are written-down, converted to equity and/or cancelled under the Senior Non Preferred Indenture, which authorizes holders of a majority in aggregate outstanding principal
amount of the outstanding 2023 Fixed Rate Notes to direct certain actions relating to the 2023 Fixed Rate Notes; and 
 (ii) the Senior Non
Preferred Indenture will not impose any duties upon the Trustee whatsoever with respect to the exercise of the Bail-in Power by the Relevant Resolution Authority; 

provided, however, that notwithstanding the exercise of the Bail-in Power by the Relevant Resolution Authority, so long as the 2023
Fixed Rate Notes remain outstanding, there will at all times be a Trustee for the 2023 Fixed Rate Notes in accordance with the Senior Non Preferred Indenture, and the resignation and/or removal of the Trustee and the appointment of a successor
Trustee will continue to be governed by the Base Indenture, including to the extent no additional supplemental indenture or amendment is agreed upon in the event the 2023 Fixed Rate Notes remain outstanding following the completion of the exercise
of the Bail-in Power. 
 By its acquisition of this Note, each Holder of this Note acknowledges and agrees that neither a cancellation or
deemed cancellation of the principal or interest (in each case, in whole or in part), nor the exercise of the Bail-in Power by the Relevant Resolution Authority with respect to the 2023 Fixed Rate Notes will give rise to a 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. 
 By
purchasing this Note, each Holder (including each beneficial owner) of this Note shall be deemed to have authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it holds this Note to take any and
all necessary action, if required, to implement the exercise of the Bail-in Power with respect to the 2023 Fixed Rate Notes as it may be imposed, without any further action or direction on the part of such Holder. 

Each Holder of this Note also acknowledges and agrees that the foregoing description of the Bail-in Power and its exercise is exhaustive on
the matters described herein to the exclusion of any other agreements, arrangements or understandings relating to the application of any Bail-in Power to the 2023 Fixed Rate Notes. 

  
 A-10 

 Each Holder of this Note that acquires such 2023 Fixed Rate Notes in the secondary market
(including each beneficial owner) 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 of the 2023 Fixed Rate Notes that acquire the 2023 Fixed Rate Notes upon
their initial issuance, including, without limitation, with respect to the acknowledgment and agreement to be bound by and consent to the terms of the 2023 Fixed Rate Notes, including in relation to the Bail-in-Power. 

Additional terms of the 2023 Fixed Rate Notes, including but not limited to events of default, remedies, payment of additional amounts in
respect of withholding tax, substitution and variation of the 2023 Fixed Rate Notes upon certain regulatory events, and amendment are set forth in the Senior Non Preferred Indenture. 

The Senior Non Preferred Indenture and the 2023 Fixed Rate Notes shall be governed by and construed in accordance with the laws of the State
of New York (without giving effect to the choice of law provisions), except for Section 12.01 of the Base Indenture and Sections 2.01(r), 2.02(r) and 2.03(r) of the Second Supplemental Indenture and the status of the 2023 Fixed Rate Notes,
which shall be governed by and construed in accordance with the laws of the Kingdom of Spain, and except that the authorization and execution by the Company of the Senior Non Preferred Indenture and the 2023 Fixed Rate Notes shall be governed by (in
addition to the laws of the State of New York relevant to execution) the respective jurisdictions of the Company and the Trustee, as the case may be. 

The 2023 Fixed Rate Notes and this Note have been issued in the State of New York. 

  
 A-11 

 EXHIBIT B 

FORM OF GLOBAL NOTE 
 THIS NOTE IS A
GLOBAL SECURITY AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY AS THE DEPOSITARY (AS DEFINED IN THE SENIOR NON PREFERRED INDENTURE GOVERNING THIS NOTE), OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS
NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE BASE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO
SECTION 3.05 OF THE BASE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 3.09 OF THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SENIOR NON PREFERRED NOTES IN DEFINITIVE FORM, THIS NOTE 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 GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY GLOBAL SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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. 
 THE RANKING OF THIS NOTE IS
SET FORTH IN SECTION 2.02(r) OF THE SECOND SUPPLEMENTAL INDENTURE AND THIS NOTE IS ISSUED SUBJECT TO THE PROVISIONS OF THAT SECTION 2.02(r), AND THE HOLDER OF THIS NOTE, BY ACCEPTING THE SAME, AGREES TO AND SHALL BE BOUND BY SUCH PROVISIONS. THE
PROVISIONS OF SECTION 2.02(r) OF THE SECOND SUPPLEMENTAL INDENTURE AND THE TERMS OF THIS PARAGRAPH ARE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE KINGDOM OF SPAIN. 

  
 B-1 

 CUSIP No. 05964H AF2 

ISIN No. US05964HAF29 
 SERIES 26
3.800% SENIOR NON PREFERRED FIXED RATE NOTES DUE 2028 
 Issued by 

BANCO SANTANDER, S.A. 
  

			
	No.	  	$

 BANCO SANTANDER, S.A., a sociedad anónima unipersonal, incorporated under the laws of the Kingdom of Spain
(herein called the “Company”, which term includes any successor person under the Senior Non Preferred Indenture (as defined on the reverse hereof)), for value received, hereby promises to pay to CEDE & CO., or registered assigns,
the principal sum of $            (             dollars) on February 23, 2028 or on such earlier date as the principal
hereof may become due in accordance with the terms hereof and to pay interest thereon semi-annually in arrears on February 23 and August 23 of each year, commencing on February 23, 2018, and ending on February 23, 2028 (each, a
“Payment Date”). Interest so payable on any Payment Date shall be paid to the Holder in whose name this Note is registered on the 15th calendar day immediately preceding the relevant
Payment Date, whether or not such day is a Business Day, as defined in the Senior Non Preferred Indenture (each a “Regular Record Date”). 

Interest shall accrue on this Note from day to day from the date of issuance hereof or from the most recent Payment Date at the rate of
3.800% per annum, until the principal amount hereof is paid or made available for payment. 
 Payments of interest on this Note shall
be computed on the basis of a 360-day year divided into twelve months of 30 days each and, in the case of an incomplete month, the actual number of days elapsed in such month. 

Payment of the principal amount of and any interest on, this Note will be made by wire transfer of immediately available funds in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. Such payment shall be made to the Holder including through a Paying Agent of the Company for collection by the Holder. If the
date for payment of the principal amount hereof or interest thereon is not a Business Day, then (subject as provided in the Senior Non Preferred Indenture) such payment shall be made on the next succeeding Business Day with the same force and effect
as if made on such date for payment, provided that no interest shall accrue on such payment for the period from and after such payment date. 

  
 B-2 

 The 2028 Fixed Rate Notes are issuable in minimum denominations of $200,000 and integral
multiples of $200,000 in excess thereof. For information purposes only, without any substantive effect whatsoever and solely in order to comply with Article 413(d) of the Spanish Companies Law (Ley de Sociedades de Capital), approved by Royal
Decree 1/2010, of July 2, to the extent applicable, it is hereby noted that the initial aggregate principal amount of the 2028 Fixed Rate Notes, i.e., US$1,000,000,000, was equivalent to approximately €849,906,510.28, based on the exchange
rate as of October 17, 2017 of US$1.1766 per €1.00. Amounts due on the Notes shall not under any circumstances whatsoever be payable in any currency other than U.S. Dollars. 

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

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

Notwithstanding any other term of this Note or any other agreements, arrangements, or understandings between the Company and any Holder of the
2028 Fixed Rate Notes, by its acquisition of this Note, each Holder (which, for the purposes of this clause, includes each holder of a beneficial interest in this Note) acknowledges, accepts, consents to and agrees to be bound by the exercise of any
Bail-in Power by the Relevant Resolution Authority that may result in the write-down or cancellation of all or a portion of the Amounts Due on this Note and/or the conversion of all or a portion of the Amounts Due on this Note into shares or other
securities or other obligations of the Company or another person, including by means of a variation to the terms of this Note to give effect to the exercise by the Relevant Resolution Authority of such Bail-in Power. Each Holder of this Note further
acknowledges and agrees that the rights of the Holder of this Note are subject to—and will be varied, if necessary, so as to give effect to— the exercise of any Bail-in Power by the Relevant Resolution Authority: 

For these purposes, “Amounts Due” means the principal amount of, premium, if any, together with any accrued but unpaid interest, and
Additional Amounts, if any, due on this Note. References to such amounts will include amounts that have become due and payable, but which have not been paid, prior to the exercise of the Bail-in Power by the Relevant Resolution Authority. 

For these purposes, “Bail-in Power” means any statutory write-down and/or conversion power existing from time to time under any
laws, regulations, rules or requirements in effect in the Kingdom of Spain relating to the resolution of Regulated Entities applicable to the Company or other Regulated Entities of the group, including (but not limited to) (i) the transposition
of the BRRD (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time, (ii) Regulation (EU) No. 806/2014 of the European Parliament and of the
Council of 15 July 2014, establishing uniform 

  
 B-3 

 
rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of the Single Resolution Mechanism and the Single Resolution Fund and
amending Regulation (EU) No. 1093/2010 (as amended or superseded from time to time, the “SRM Regulation”) and (iii) the instruments, rules and standards created thereunder, pursuant to which any obligation of a Regulated Entity
(or an affiliate of such Regulated Entity) can be reduced, cancelled and/or converted into shares or other securities or obligations of such Regulated Entity (or affiliate of such Regulated Entity) or any other person. 

The term “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and
investment firms, as amended or superseded from time to time. 
 The term “Regulated Entity” means any legal person to which BRRD,
as implemented in the Kingdom of Spain (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time), the SRM Regulation, or any other Spanish law relating to
Bail-in Power, applies, which includes, certain credit entities, investment firms, and certain parent or holding companies. 
 The term
“Relevant Resolution Authority” means the Spanish Fund for the Orderly Restructuring of Banks or the European Single Resolution Mechanism, as the case may be, according to Law 11/2015, and any other entity with the authority to exercise
the Bail-in Power or any other resolution power from time to time. 
 The public deed of issuance (escritura de emisión)
related to the Notes represented hereby was executed on October 19, 2017 before Mr. Miguel Ruiz-Gallardón García de la Rasilla with the number 4425 of his records. 

  
 B-4 

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

Dated: [•] 
  

			
	BANCO SANTANDER, S.A.
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

 [Global Note Signature Page] 

  
 B-5 

 CERTIFICATE OF AUTHENTICATION 

This is one of the 2028 Fixed Rate Notes referred to in the within-mentioned Senior Non Preferred Indenture. 

Dated: [•] 
  

 

			
	THE BANK OF NEW YORK MELLON,
	 as Trustee

		
	By:	 	  

		 	Authorized Signatory

 [Global Note Signature Page] 

  
 B-6 

 [REVERSE OF SECURITY] 

This Note is one of a duly authorized issue of securities of the Company (herein called the “2028 Fixed Rate Notes”) issued and to
be issued in one or more series under a Second Ranking Senior Debt Securities Indenture, dated as of April 11, 2017 (herein called the “Base Indenture”), among the Company, as issuer and The Bank of New York Mellon acting through its
London Branch, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Base Indenture), as supplemented by the Second Supplemental Indenture, dated as of October 23, 2017, among the Company and the
Trustee (the “Second Supplemental Indenture”, and, together with the Base Indenture, the “Senior Non Preferred Indenture”) to which Senior Non Preferred 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 Company and the Trustee and the Holders of the 2028 Fixed Rate Notes and of the terms upon which the 2028 Fixed Rate Notes are, and are to be,
authenticated and delivered. Capitalized terms used herein are used as defined in the Senior Non Preferred Indenture unless otherwise indicated. The terms of the 2028 Fixed Rate Notes include those stated in the Senior Non Preferred
Indenture. The 2028 Fixed Rate Notes are subject to all such terms, and Holders are referred to the Senior Non Preferred Indenture for a statement of all such terms. To the extent permitted by applicable law, in the event of any
inconsistency between the terms of this 2028 Fixed Rate Note and the terms of the Senior Non Preferred Indenture, the terms of the Senior Non Preferred Indenture will control. 

This Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $1,000,000,000; provided,
that the Company may, from time to time, without the consent of the Holders of the 2028 Fixed Rate Notes, issue additional Senior Non Preferred Debt Securities under the Senior Non Preferred Indenture, having the same ranking and same interest rate,
maturity, redemption terms and other terms, except for the price to the public, original interest accrual date, issue date and first Interest Payment Date, as the 2028 Fixed Rate Notes; provided, however, that such additional 2028 Fixed Rate
Notes will not have the same CUSIP, ISIN or other identifying number as the outstanding 2028 Fixed Rate Notes unless the additional 2028 Fixed Rate Notes are fungible with the 2028 Fixed Rate Notes for U.S. federal income tax purposes. Any such
additional 2028 Fixed Rate Notes, together with the 2028 Fixed Rate Notes, will constitute a single series of 2028 Fixed Rate Notes under the Senior Non Preferred Indenture and shall be included in the definition of “Second Ranking Senior Debt
Securities” in the Base Indenture where the context requires. 
 The payment obligations of the Company under the 2028 Fixed Rate Notes
will constitute direct, unconditional, unsubordinated and unsecured senior non preferred obligations (créditos ordinarios no preferentes) of the Company and, in accordance with Additional Provision 14.2o of Law 11/2015, but
subject to any other ranking that may apply as a result of any mandatory provision of law (or otherwise), upon the insolvency of the Company (and unless they qualify as subordinated claims (créditos subordinados) pursuant to Article
92.1o or 92.3o to 92.7o of Law 22/2003 (Ley Concursal) dated 9 July 2003 (the “Spanish Insolvency Law”)), rank (i) pari passu among themselves and with any Senior Non Preferred Liabilities (as defined
below), (ii) junior to the Senior Higher Priority Liabilities (as defined below) (and, accordingly, upon the insolvency of the Company, the claims in respect of the 2028 Fixed Rate Notes will be met after payment in full of the Senior Higher
Priority Liabilities), and (iii) senior to any present and future subordinated obligations (créditos subordinados) of the Company in accordance with Article 92 of the Spanish Insolvency Law. 

  
 B-7 

 Claims of holders of 2028 Fixed Rate Notes in respect of interest accrued but unpaid as of the
commencement of any insolvency procedure in respect of the Company shall constitute subordinated claims (créditos subordinados) against the Company ranking in accordance with the provisions of Article 92.3o of the Spanish
Insolvency Law and no further interest shall accrue from the date of the declaration of insolvency of the Company. 
 “Law
11/2015” means Law 11/2015 of 18 June on recovery and resolution of credit institutions and investment firms, as amended from time to time. 

“Senior Higher Priority Liabilities” means any obligations of the Company which specify their status as ordinary senior instruments
and any other unsecured and unsubordinated obligations (créditos ordinarios) of the Company, other than the Senior Non Preferred Liabilities. 

“Senior Non Preferred Liabilities” means any unsubordinated and unsecured senior non preferred obligations (créditos
ordinarios no preferentes) of the Company under Additional Provision 14.2o of Law 11/2015, as amended by Royal Decree-Law 11/2017, of 23 June, on urgent measures in financial matters, and as further amended from time to time (including
any 2028 Fixed Rate Notes), and any other obligations which, by law and/or by their terms, and to the extent permitted by Spanish law, rank pari passu with the Senior Non Preferred Liabilities. 

The provisions of Section 2.02(r) of the Second Supplemental Indenture shall apply only to rights or claims payable with respect to the
2028 Fixed Rate Notes and nothing herein shall affect or prejudice the payment of the costs, charges, expenses, liabilities, indemnity or remuneration of the Trustee, the first lien rights of the Trustee under Section 6.08 of the Base
Indenture, or the rights and remedies of the Trustee in respect thereof. 
 The Company agrees with respect to the 2028 Fixed Rate Notes and
each holder of the 2028 Fixed Rate Notes, by his or her acquisition of the 2028 Fixed Rate Notes will be deemed to have agreed to the ranking as described herein. Each such holder will be deemed to have irrevocably waived his or her rights of
priority which would otherwise be accorded to him or her under the laws of Spain, to the extent necessary to effectuate the ranking provisions of the 2028 Fixed Rate Notes. In addition, each holder of the 2028 Fixed Rate Notes by his or her
acquisition of such 2028 Fixed Rate Notes authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to effectuate the ranking of such 2028 Fixed Rate Notes as provided in the Base Indenture and
appoints the Trustee his or her attorney-in-fact for any and all such purposes. 
 Notwithstanding any other term of this Note or any other
agreements, arrangements, or understandings between the Company and any Holder of the 2028 Fixed Rate Notes, by its acquisition of this Note, each Holder (which, for the purposes of this clause, includes each holder of a beneficial interest in this
Note) acknowledges, accepts, consents to and agrees to be bound by the exercise of any Bail-in Power by the Relevant Resolution Authority that may result in the write-down or cancellation of all or a portion of the Amounts Due on this Note and/or
the conversion of all or a portion of the Amounts Due on this Note into shares or other securities or other obligations of the Company or another person, including by means of a variation to the terms of the 2028 Fixed Rate Notes to give effect to
the exercise by the Relevant Resolution Authority of such Bail-in Power. Each Holder of this Note further acknowledges and agrees that the rights of the Holders of the 2028 Fixed Rate Notes are subject to—and will be varied, if necessary, so as
to give effect to— the exercise of any Bail-in Power by the Relevant Resolution Authority: 

  
 B-8 

 For these purposes, “Amounts Due” means the principal amount of, premium, if any,
together with any accrued but unpaid interest, and Additional Amounts, if any, due on the 2028 Fixed Rate Notes. References to such amounts will include amounts that have become due and payable, but which have not been paid, prior to the exercise of
the Bail-in Power by the Relevant Resolution Authority. 
 For these purposes, “Bail-in Power” means any statutory write-down
and/or conversion power existing from time to time under any laws, regulations, rules or requirements in effect in the Kingdom of Spain relating to the resolution of Regulated Entities applicable to the Company or other Regulated Entities of the
group, including (but not limited to) (i) the transposition of the BRRD (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time, (ii) Regulation
(EU) No. 806/2014 of the European Parliament and of the Council of 15 July 2014, establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of the Single
Resolution Mechanism and the Single Resolution Fund and amending Regulation (EU) No. 1093/2010 (as amended or superseded from time to time, the “SRM Regulation”) and (iii) the instruments, rules and standards created thereunder,
pursuant to which any obligation of a Regulated Entity (or an affiliate of such Regulated Entity) can be reduced, cancelled and/or converted into shares or other securities or obligations of such Regulated Entity (or affiliate of such Regulated
Entity) or any other person. 
 The term “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and
resolution of credit institutions and investment firms, as amended or superseded from time to time. 
 The term “Regulated Entity”
means any legal person to which BRRD, as implemented in the Kingdom of Spain (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time), the SRM Regulation,
or any other Spanish law relating to Bail-in Power, applies, which includes, certain credit entities, investment firms, and certain parent or holding companies. 

The term “Relevant Resolution Authority” means the Spanish Fund for the Orderly Restructuring of Banks or the European Single
Resolution Mechanism, as the case may be, according to Law 11/2015, and any other entity with the authority to exercise the Bail-in Power or any other resolution power from time to time. 

Upon the Company being informed or notified by the Relevant Resolution Authority of the actual exercise of the date from which the Bail-in
Power is effective with respect to the 2028 Fixed Rate Notes, the Company will provide a written notice to the holders of the 2028 Fixed Rate Notes through DTC without delay regarding such exercise of Bail-in Power. The Company will also deliver a
copy of such notice to the Trustee for information purposes. Any delay or failure by the Company to give notice shall not affect the validity and enforceability of the Bail-in Power nor the effects on the 2028 Fixed Rate Notes described in this
clause. 

  
 B-9 

 No repayment or payment of Amounts Due, if any, on the 2028 Fixed Rate Notes, will become due and
payable or be paid after the exercise of any Bail-in Power by the Relevant Resolution Authority if and to the extent such amounts have been reduced, converted, cancelled, amended or altered as a result of such exercise. 

By its acquisition of this Note, each Holder of this Note, (which, for the purposes of this clause, includes each holder of a beneficial
interest in this Note), 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 Bail-in Power by the Relevant Resolution Authority with respect to this Note. 

Additionally, by its acquisition of this Note, each Holder of this Note acknowledges and agrees that, upon the exercise of the Bail-in Power
by the Relevant Resolution Authority: 
 (i) the Trustee will not be required to take any further directions from the Holders of the 2028
Fixed Rate Notes with respect to any portion of the 2028 Fixed Rate Notes that are written-down, converted to equity and/or cancelled under the Senior Non Preferred Indenture, which authorizes holders of a majority in aggregate outstanding principal
amount of the outstanding 2028 Fixed Rate Notes to direct certain actions relating to the 2028 Fixed Rate Notes; and 
 (ii) the Senior Non
Preferred Indenture will not impose any duties upon the Trustee whatsoever with respect to the exercise of the Bail-in Power by the Relevant Resolution Authority; 

provided, however, that notwithstanding the exercise of the Bail-in Power by the Relevant Resolution Authority, so long as the 2028
Fixed Rate Notes remain outstanding, there will at all times be a Trustee for the 2028 Fixed Rate Notes in accordance with the Senior Non Preferred Indenture, and the resignation and/or removal of the Trustee and the appointment of a successor
Trustee will continue to be governed by the Base Indenture, including to the extent no additional supplemental indenture or amendment is agreed upon in the event the 2028 Fixed Rate Notes remain outstanding following the completion of the exercise
of the Bail-in Power. 
 By its acquisition of this Note, each Holder of this Note acknowledges and agrees that neither a cancellation or
deemed cancellation of the principal or interest (in each case, in whole or in part), nor the exercise of the Bail-in Power by the Relevant Resolution Authority with respect to the 2028 Fixed Rate Notes will give rise to a 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. 
 By
purchasing this Note, each Holder (including each beneficial owner) of this Note shall be deemed to have authorized, directed and requested DTC and any direct participant in DTC or other intermediary through which it holds this Note to take any and
all necessary action, if required, to implement the exercise of the Bail-in Power with respect to the 2028 Fixed Rate Notes as it may be imposed, without any further action or direction on the part of such Holder. 

Each Holder of this Note also acknowledges and agrees that the foregoing description of the Bail-in Power and its exercise is exhaustive on
the matters described herein to the exclusion of any other agreements, arrangements or understandings relating to the application of any Bail-in Power to the 2028 Fixed Rate Notes. 

  
 B-10 

 Each Holder of this Note that acquires such 2028 Fixed Rate Notes in the secondary market
(including each beneficial owner) 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 of the 2028 Fixed Rate Notes that acquire the 2028 Fixed Rate Notes upon
their initial issuance, including, without limitation, with respect to the acknowledgment and agreement to be bound by and consent to the terms of the 2028 Fixed Rate Notes, including in relation to the Bail-in-Power. 

Additional terms of the 2028 Fixed Rate Notes, including but not limited to events of default, remedies, payment of additional amounts in
respect of withholding tax, substitution and variation of the 2028 Fixed Rate Notes upon certain regulatory events, and amendment are set forth in the Senior Non Preferred Indenture. 

The Senior Non Preferred Indenture and the 2028 Fixed Rate Notes shall be governed by and construed in accordance with the laws of the State
of New York (without giving effect to the choice of law provisions), except for Section 12.01 of the Base Indenture, Sections 2.01(r), 2.02(r) and 2.03(r) of the Second Supplemental Indenture and the status of the 2028 Fixed Rate Notes, which
shall be governed by and construed in accordance with the laws of the Kingdom of Spain, and except that the authorization and execution by the Company of the Senior Non Preferred Indenture and the 2028 Fixed Rate Notes shall be governed by (in
addition to the laws of the State of New York relevant to execution) the respective jurisdictions of the Company and the Trustee, as the case may be. 

The 2028 Fixed Rate Notes and this Note have been issued in the State of New York. 

  
 B-11 

 EXHIBIT C 

FORM OF GLOBAL NOTE 
 THIS NOTE IS A
GLOBAL SECURITY AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY AS THE DEPOSITARY (AS DEFINED IN THE SENIOR NON PREFERRED INDENTURE GOVERNING THIS NOTE), OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS
NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE BASE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO
SECTION 3.05 OF THE BASE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 3.09 OF THE BASE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF THE COMPANY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SENIOR NON PREFERRED NOTES IN DEFINITIVE FORM, THIS NOTE 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 GLOBAL SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY GLOBAL SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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. 
 THE RANKING OF THIS NOTE IS SET FORTH IN
SECTION 2.03(r) OF THE SECOND SUPPLEMENTAL INDENTURE AND THIS NOTE IS ISSUED SUBJECT TO THE PROVISIONS OF THAT SECTION 2.03(r), AND THE HOLDER OF THIS NOTE, BY ACCEPTING THE SAME, AGREES TO AND SHALL BE BOUND BY SUCH PROVISIONS. THE PROVISIONS OF
SECTION 2.03(r) OF THE BASE INDENTURE AND THE TERMS OF THIS PARAGRAPH ARE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE KINGDOM OF SPAIN. 

  
 C-1 

 CUSIP No. 05964H AD7 

ISIN No. US05964HAD70 
 SERIES 25
SENIOR NON PREFERRED FLOATING RATE NOTES DUE 2023 
 Issued by 

BANCO SANTANDER, S.A. 
  

			
	No.	  	$

 BANCO SANTANDER, S.A., a sociedad anónima unipersonal, incorporated under the laws of the Kingdom of Spain
(herein called the “Company,” which term includes any successor person under the Senior Non Preferred Indenture (as defined on the reverse hereof), for value received, hereby promises to pay to CEDE & CO., or registered assigns,
the principal sum of $            (             dollars) on February 23, 2023 or on such earlier date as the principal
hereof may become due in accordance with the terms hereof and to pay interest thereon quarterly in arrears on February 23, May 23, August 23 and November 23, commencing on November 23, 2017, and ending on
February 23, 2023 (each, a “Floating Rate Note Interest Payment Date”). Interest so payable on any Floating Rate Note Interest Payment Date shall be paid to the Holder in whose name this Note is registered on the 15th calendar day immediately preceding the relevant Floating Rate Note Interest Payment Date, whether or not such day is a Business Day, as defined in the Senior Non Preferred Indenture;
provided, however, that interest payable on the maturity date or any redemption date shall be payable to the person to whom the principal of such Floating Rate Notes shall be payable (each such date a “Regular Record Date”).

 This Note shall bear interest at a floating rate determined in the manner provided herein. 

If any Floating Rate Notes Interest Payment Date (other than the maturity date or any redemption date) falls on a day that is not a Business
Day, the Floating Rate Notes Interest Payment Date will be postponed to the next succeeding Business Day and interest will accrue to but excluding such Floating Rate Notes Interest Payment Date, except that if such Business Day falls in the next
succeeding calendar month, the applicable Floating Rate Notes Interest Payment Date will be the immediately preceding Business Day. If the maturity date or any redemption date of the Floating Rate Notes falls on a day that is not a Business Day, the
payment of principal, premium and Additional Amounts, if any, and interest, if any, otherwise payable on such date will be postponed to the next succeeding Business Day, and no interest on such payment will accrue from and after the maturity date or
such redemption date, as applicable. 
 Payment of the principal amount of and any interest on, this Note will be made by wire transfer of
immediately available funds in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. Such payment 

  
 C-2 

 
shall be made to the Holder including through a Paying Agent of the Company for collection by the Holder. If the date for payment of the principal amount hereof or interest thereon is not a
Business Day, then (subject as provided in the Senior Non Preferred Indenture) such payment shall be made on the next succeeding Business Day with the same force and effect as if made on such date for payment, provided that no interest shall accrue
on such payment for the period from and after such payment date. 
 The Floating Rate Notes are issuable in minimum denominations of
$200,000 and integral multiples of $200,000 in excess thereof. 
 For information purposes only, without any substantive effect whatsoever
and solely in order to comply with Article 413(d) of the Spanish Companies Law (Ley de Sociedades de Capital), approved by Royal Decree 1/2010, of July 2, to the extent applicable, it is hereby noted that the initial aggregate principal
amount of the Floating Rate Notes, i.e., US $500,000,000, was equivalent to approximately €424,953,255.14, based on the exchange rate as of October 17, 2017 of US $1.1766 per €1.00. Amounts due on the Notes shall not under any
circumstances whatsoever be payable in any currency other than U.S. Dollars. 
 Prior to due presentment of this Note for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner of such Note for the purpose of receiving payment of principal and interest, if any, on and any
Additional Amounts with respect to such Note and for all other purposes whatsoever, whether or not such Note be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.

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

Notwithstanding any other term of this Note or any other agreements, arrangements, or understandings between the Company and any Holder of the
Floating Rate Notes, by its acquisition of this Note, each Holder (which, for the purposes of this clause, includes each holder of a beneficial interest in this Note) acknowledges, accepts, consents to and agrees to be bound by the exercise of any
Bail-in Power by the Relevant Resolution Authority that may result in the write-down or cancellation of all or a portion of the Amounts Due on this Note and/or the conversion of all or a portion of the Amounts Due on this Note into shares or other
securities or other obligations of the Company or another person, including by means of a variation to the terms of this Note to give effect to the exercise by the Relevant Resolution Authority of such Bail-in Power. Each Holder of this Note further
acknowledges and agrees that the rights of the Holder of this Note are subject to—and will be varied, if necessary, so as to give effect to— the exercise of any Bail-in Power by the Relevant Resolution Authority: 

For these purposes, “Amounts Due” means the principal amount of, premium, if any, together with any accrued but unpaid interest, and
Additional Amounts, if any, due on this Note. References to such amounts will include amounts that have become due and payable, but which have not been paid, prior to the exercise of the Bail-in Power by the Relevant Resolution Authority. 

  
 C-3 

 For these purposes, “Bail-in Power” means any statutory write-down and/or conversion
power existing from time to time under any laws, regulations, rules or requirements in effect in the Kingdom of Spain relating to the resolution of Regulated Entities applicable to the Company or other Regulated Entities of the group, including (but
not limited to) (i) the transposition of the BRRD (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time, (ii) Regulation (EU) No. 806/2014
of the European Parliament and of the Council of 15 July 2014, establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of the Single Resolution Mechanism and the
Single Resolution Fund and amending Regulation (EU) No. 1093/2010 (as amended or superseded from time to time, the “SRM Regulation”) and (iii) the instruments, rules and standards created thereunder, pursuant to which any
obligation of a Regulated Entity (or an affiliate of such Regulated Entity) can be reduced, cancelled and/or converted into shares or other securities or obligations of such Regulated Entity (or affiliate of such Regulated Entity) or any other
person. 
 The term “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit
institutions and investment firms, as amended or superseded from time to time. 
 The term “Regulated Entity” means any legal
person to which BRRD, as implemented in the Kingdom of Spain (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time), the SRM Regulation, or any other
Spanish law relating to Bail-in Power, applies, which includes, certain credit entities, investment firms, and certain parent or holding companies. 

The term “Relevant Resolution Authority” means the Spanish Fund for the Orderly Restructuring of Banks or the European Single
Resolution Mechanism, as the case may be, according to Law 11/2015, and any other entity with the authority to exercise the Bail-in Power or any other resolution power from time to time. 

The public deed of issuance (escritura de emisión) related to the Notes represented hereby was executed on October 19, 2017
before Mr. Miguel Ruiz-Gallardón García de la Rasilla with the number 4425 of his records. 

  
 C-4 

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

Dated: [•] 
  

			
	BANCO SANTANDER, S.A.

 
			
		
	By:	 	  

	Name:
	Title:
		
	By:	 	  

	Name:
	Title:

 [Global Note Signature Page] 

  
 C-5 

 CERTIFICATE OF AUTHENTICATION 

This is one of the Floating Rate Notes referred to in the within-mentioned Senior Non Preferred Indenture. 

Dated: [•] 
  

	
	THE BANK OF NEW YORK MELLON,
	 as Trustee

	
	By:                                     
                                         
                  
	Authorized Signatory

 [Global Note Signature Page] 

  
 C-6 

 [REVERSE OF SECURITY] 

This Note is one of a duly authorized issue of securities of the Company (herein called the “Floating Rate Notes”) issued and to be
issued in one or more series under a Second Ranking Senior Debt Securities Indenture, dated as of April 11, 2017 (herein called the “Base Indenture”), among the Company, as issuer and The Bank of New York Mellon acting through its
London Branch, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Base Second Ranking Senior Indenture), as supplemented by the Second Supplemental Indenture, dated as of October 23, 2017,
among the Company and the Trustee (the “Second Supplemental Indenture”, and, together with the Base Indenture, the “Senior Non Preferred Indenture”) to which Senior Non Preferred 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 Company and the Trustee and the Holders of the Floating Rate Notes and of the terms upon which the Floating Rate Notes
are, and are to be, authenticated and delivered. Capitalized terms used herein are used as defined in the Senior Non Preferred Indenture unless otherwise indicated. The terms of the Floating Rate Notes include those stated in the Senior Non
Preferred Indenture. The Floating Rate Notes are subject to all such terms, and Holders are referred to the Senior Non Preferred Indenture for a statement of all such terms. To the extent permitted by applicable law, in the event of any
inconsistency between the terms of this Floating Rate Note and the terms of the Senior Non Preferred Indenture, the terms of the Senior Non Preferred Indenture will control. 

The initial Calculation Agent for the Floating Rate Notes shall be the Trustee 

This Note is one of the series designated on the face hereof, initially limited in aggregate principal amount to $500,000,000; provided, that
the Company may, from time to time, without the consent of the Holders of the Floating Rate Notes, issue additional Senior Non Preferred Debt Securities under the Senior Non Preferred Indenture, having the same ranking and same interest rate,
maturity, redemption terms and other terms, except for the price to the public, original interest accrual date, issue date and first Interest Floating Rate Note Interest Payment Date, as the Floating Rate Notes; provided, however, that such
additional Floating Rate Notes will not have the same CUSIP, ISIN or other identifying number as the outstanding Floating Rate Notes unless the additional Floating Rate Notes are fungible with the Floating Rate Notes for U.S. federal income tax
purposes. Any such additional Floating Rate Notes, together with the Floating Rate Notes, will constitute a single series of Floating Rate Notes under the Senior Non Preferred Indenture and shall be included in the definition of “Second Ranking
Senior Debt Securities” in the Base Indenture where the context requires. 
 The interest rate with respect to the Floating Rate Notes
will be reset quarterly on February 23, May 23, August 23 and November 23 of each year, beginning on November 23, 2017 through November 23, 2022 (each an “Interest Reset Date”). However, if any
Interest Reset Date would otherwise be a day that is not a Business Day, such Interest Reset Date will be the next succeeding day that is a Business Day, except that if the next succeeding Business Day falls in the next succeeding calendar month,
the applicable Interest Reset Date will be the immediately preceding Business Day. 
 The interest rate in effect during the initial
interest period from, and including, October 23, 2017 to, but excluding, November 23, 2017 will be equal to Three-Month USD LIBOR, determined by the Calculation Agent two London Business Days prior to October 23, 2017, plus 109 basis
points. 

  
 C-7 

 A “London Business Day” is a day on which dealings in deposits in U.S. dollars are
transacted in the London interbank market and the Trans-European Automated Real-time Gross Settlement Express Transfer system (the “TARGET2 System”), or any successor thereto, is open for business. 

After the initial interest period, the interest periods will be the periods from and including an Interest Reset Date to but excluding the
immediately succeeding Interest Reset Date, except that the final interest period will be the period from and including the Interest Reset Date immediately preceding the maturity date to but excluding the maturity date (each a “Floating Rate
Notes Interest Period”). The interest rate per year for the Floating Rate Notes in any Floating Rate Notes Interest Period (which, for the avoidance of doubt, does not include the initial interest period) will be equal to Three-Month USD LIBOR
plus 109 basis points (the “Floating Rate Notes Interest Rate”), as determined by the Calculation Agent. The Floating Rate Notes Interest Rate in effect for the 15 calendar days prior to any redemption date earlier than the maturity date
will be the Floating Rate Notes Interest Rate in effect on the 15th day preceding such earlier redemption date. 
 The Floating Rate
Notes Interest Rate will be limited to the maximum rate permitted by New York law, as the same may be modified by United States law of general application. 

Upon the request of any holder of Floating Rate Notes, the Calculation Agent will provide the Floating Rate Notes Interest Rate then in effect
and, if determined, the Floating Rate Notes Interest Rate that will become effective on the next Interest Reset Date. 
 The Calculation
Agent will determine Three-Month USD LIBOR for each Interest Period on the second London Business Day prior to the first day of such Interest Period (the “Interest Determination Date”). 

“Three-Month USD LIBOR” with respect to any Interest Determination Date, will be the offered rate for deposits of U.S. dollars
having a maturity of three months that appears on “Reuters Page LIBOR01” at approximately 11:00 a.m., London time, on such Interest Determination Date. If on an Interest Determination Date, such rate does not appear on the
“Reuters Page LIBOR01” as of 11:00 a.m., London time, or if “Reuters Page LIBOR01” is not available on such date, the Calculation Agent will obtain such rate from Bloomberg L.P.’s page “BBAM.” 

If no offered rate appears on “Reuters Page LIBOR01” or Bloomberg L.P. page “BBAM” on an Interest Determination Date,
LIBOR will be determined for such Interest Determination Date on the basis of the rates at approximately 11:00 a.m., London time, on such Interest Determination Date at which deposits in U.S. dollars are offered to prime banks in the London
inter-bank market by four major banks in such market selected by the Company, for a term of three months commencing on the applicable Interest Reset Date and in a principal amount equal to an amount that in the judgment of the Calculation Agent is
representative for a single transaction in U.S. dollars in such market at such time. The Calculation Agent will request the principal London office of each of such banks to provide a quotation of its rate. If at least two

  
 C-8 

 
such quotations are provided, Three-Month LIBOR for such Interest Period will be the arithmetic mean of such quotations. If fewer than two such quotations are provided, Three-Month LIBOR for such
Interest Period will be the arithmetic mean of the rates quoted at approximately 11:00 a.m. in New York City on such Interest Determination Date by three major banks in New York City, selected by the Company, for loans in U.S. dollars to
leading European banks, for a term of three months commencing on the applicable Interest Reset Date and in a principal amount equal to an amount that in the judgment of the Calculation Agent is representative for a single transaction in U.S. dollars
in such market at such time; provided, however, that if the banks so selected are not quoting as mentioned above, the then-existing Three-Month LIBOR rate will remain in effect for such Interest Period, or, if none, the interest rate will be the
initial interest rate 
 All percentages resulting from any calculation of any Floating Rate Notes Interest Rate will be rounded, if
necessary, to the nearest one hundred thousandth of a percentage point, with five one-millionths of a percentage point rounded upward (e.g., 9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and all U.S. dollar amounts will
be rounded to the nearest cent, with one-half cent being rounded upward. The amount of interest payable in respect of each Floating Rate Note will be calculated by applying the applicable Floating Rate Notes Interest Rate for such Interest Period to
the outstanding principal amount of such Floating Rate Notes, multiplying the product by the actual number of days in such Interest Period and dividing by 360. Each calculation of the Floating Rate Notes Interest Rate by the Calculation Agent will
(in the absence of manifest error) be final and binding on the Company, the Trustee and the Holders of the Floating Rate Notes. 
 Promptly
upon such determination, the Calculation Agent will notify the Company and the Trustee (if the Calculation Agent is not the Trustee) of the Floating Rate Notes Interest Rate for the new Floating Rates Notes Interest Period 

The payment obligations of the Company under the Floating Rate Notes will constitute direct, unconditional, unsubordinated and unsecured
senior non preferred obligations (créditos ordinarios no preferentes) of the Company and, in accordance with Additional Provision 14.2o of Law 11/2015, but subject to any other ranking that may apply as a result of any mandatory
provision of law (or otherwise), upon the insolvency of the Company (and unless they qualify as subordinated claims (créditos subordinados) pursuant to Article 92.1o or 92.3o to 92.7o of Law 22/2003 (Ley Concursal) dated
9 July 2003 (the “Spanish Insolvency Law”)), rank (i) pari passu among themselves and with any Senior Non Preferred Liabilities (as defined below), (ii) junior to the Senior Higher Priority Liabilities (as defined
below) (and, accordingly, upon the insolvency of the Company, the claims in respect of the Floating Rate Notes will be met after payment in full of the Senior Higher Priority Liabilities), and (iii) senior to any present and future subordinated
obligations (créditos subordinados) of the Company in accordance with Article 92 of the Spanish Insolvency Law. 
 Claims
of holders of Floating Rate Notes in respect of interest accrued but unpaid as of the commencement of any insolvency procedure in respect of the Company shall constitute subordinated claims (créditos subordinados) against the Company
ranking in accordance with the provisions of Article 92.3o of the Spanish Insolvency Law and no further interest shall accrue from the date of the declaration of insolvency of the Company. 

  
 C-9 

 “Law 11/2015” means Law 11/2015 of 18 June on recovery and resolution of credit
institutions and investment firms, as amended from time to time. 
 “Senior Higher Priority Liabilities” means any obligations of
the Company which specify their status as ordinary senior instruments and any other unsecured and unsubordinated obligations (créditos ordinarios) of the Company, other than the Senior Non Preferred Liabilities. 

“Senior Non Preferred Liabilities” means any unsubordinated and unsecured senior non preferred obligations (créditos
ordinarios no preferentes) of the Company under Additional Provision 14.2o of Law 11/2015, as amended by Royal Decree-Law 11/2017, of 23 June, on urgent measures in financial matters, and as further amended from time to time (including
any Floating Rate Notes), and any other obligations which, by law and/or by their terms, and to the extent permitted by Spanish law, rank pari passu with the Senior Non Preferred Liabilities. 

The provisions of Section 2.03(r) of the Second Supplemental Indenture shall apply only to rights or claims payable with respect to the
Floating Rate Notes and nothing herein shall affect or prejudice the payment of the costs, charges, expenses, liabilities, indemnity or remuneration of the Trustee, the first lien rights of the Trustee under Section 6.08 of the Base Indenture,
or the rights and remedies of the Trustee in respect thereof. 
 The Company agrees with respect to the Floating Rate Notes and each holder
of the Floating Rate Notes, by his or her acquisition of the Floating Rate Notes will be deemed to have agreed to the ranking as described herein. Each such holder will be deemed to have irrevocably waived his or her rights of priority which would
otherwise be accorded to him or her under the laws of Spain, to the extent necessary to effectuate the ranking provisions of the Floating Rate Notes. In addition, each holder of the Floating Rate Notes by his or her acquisition of such Floating Rate
Notes authorizes and directs the Trustee on his or her behalf to take such action as may be necessary or appropriate to effectuate the ranking of such Floating Rate Notes as provided in the Base Indenture and appoints the Trustee his or her
attorney-in-fact for any and all such purposes. 
 Notwithstanding any other term of this Note or any other agreements, arrangements, or
understandings between the Company and any Holder of the Floating Rate Notes, by its acquisition of this Note, each Holder (which, for the purposes of this clause, includes each holder of a beneficial interest in this Note) acknowledges, accepts,
consents to and agrees to be bound by the exercise of any Bail-in Power by the Relevant Resolution Authority that may result in the write-down or cancellation of all or a portion of the Amounts Due on this Note and/or the conversion of all or a
portion of the Amounts Due on this Note into shares or other securities or other obligations of the Company or another person, including by means of a variation to the terms of the Floating Rate Notes to give effect to the exercise by the Relevant
Resolution Authority of such Bail-in Power. Each Holder of this further acknowledges and agrees that the rights of the Holders of the Floating Rate Notes are subject to—and will be varied, if necessary, so as to give effect to— the
exercise of any Bail-in Power by the Relevant Resolution Authority: 
 For these purposes, “Amounts Due” means the principal
amount of, premium, if any, together with any accrued but unpaid interest, and Additional Amounts, if any, due on the Floating Rate Notes. References to such amounts will include amounts that have become due and payable, but which have not been
paid, prior to the exercise of the Bail-in Power by the Relevant Resolution Authority. 

  
 C-10 

 For these purposes, “Bail-in Power” means any statutory write-down and/or conversion
power existing from time to time under any laws, regulations, rules or requirements in effect in the Kingdom of Spain relating to the resolution of Regulated Entities applicable to the Company or other Regulated Entities of the group, including (but
not limited to) (i) the transposition of the BRRD (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time, (ii) Regulation (EU) No. 806/2014
of the European Parliament and of the Council of 15 July 2014, establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of the Single Resolution Mechanism and the
Single Resolution Fund and amending Regulation (EU) No. 1093/2010 (as amended or superseded from time to time, the “SRM Regulation”) and (iii) the instruments, rules and standards created thereunder, pursuant to which any
obligation of a Regulated Entity (or an affiliate of such Regulated Entity) can be reduced, cancelled and/or converted into shares or other securities or obligations of such Regulated Entity (or affiliate of such Regulated Entity) or any other
person. 
 The term “BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit
institutions and investment firms, as amended or superseded from time to time. 
 The term “Regulated Entity” means any legal
person to which BRRD, as implemented in the Kingdom of Spain (including but not limited to, Law 11/2015, Royal Decree 1012/2015 and any other implementing regulations) as amended or superseded from time to time), the SRM Regulation, or any other
Spanish law relating to Bail-in Power, applies, which includes, certain credit entities, investment firms, and certain parent or holding companies. 

The term “Relevant Resolution Authority” means the Spanish Fund for the Orderly Restructuring of Banks or the European Single
Resolution Mechanism, as the case may be, according to Law 11/2015, and any other entity with the authority to exercise the Bail-in Power or any other resolution power from time to time. 

Upon the Company being informed or notified by the Relevant Resolution Authority of the actual exercise of the date from which the Bail-in
Power is effective with respect to the Floating Rate Notes, the Company will provide a written notice to the holders of the Floating Rate Notes through DTC without delay regarding such exercise of Bail-in Power. The Company will also deliver a copy
of such notice to the Trustee for information purposes. Any delay or failure by the Company to give notice shall not affect the validity and enforceability of the Bail-in Power nor the effects on the Floating Rate Notes described in this clause 

No repayment or payment of Amounts Due, if any, on the Floating Rate Notes, will become due and payable or be paid after the exercise of any
Bail-in Power by the Relevant Resolution Authority if and to the extent such amounts have been reduced, converted, cancelled, amended or altered as a result of such exercise. 

By its acquisition of this Note, each Holder of this Note, (which, for the purposes of this clause, includes each holder of a beneficial
interest in this Note), to the extent permitted by the Trust Indenture Act, will waive any and all claims, in law and/or in equity, against the Trustee 

  
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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 Bail-in Power by the Relevant Resolution Authority with respect to this Note. 
 Additionally, by its
acquisition of this Note, each Holder of this Note acknowledges and agrees that, upon the exercise of the Bail-in Power by the Relevant Resolution Authority: 

(i) the Trustee will not be required to take any further directions from the Holders of the Floating Rate Notes with respect to any portion of
the Floating Rate Notes that are written-down, converted to equity and/or cancelled under the Senior Non Preferred Indenture, which authorizes holders of a majority in aggregate outstanding principal amount of the outstanding Floating Rate Notes to
direct certain actions relating to the Floating Rate Notes; and 
 (ii) the Senior Non Preferred Indenture will not impose any duties upon
the Trustee whatsoever with respect to the exercise of the Bail-in Power by the Relevant Resolution Authority; 
 provided, however, that
notwithstanding the exercise of the Bail-in Power by the Relevant Resolution Authority, so long as the Floating Rate Notes remain outstanding, there will at all times be a Trustee for the Floating Rate Notes in accordance with the Base Indenture,
and the resignation and/or removal of the Trustee and the appointment of a successor Trustee will continue to be governed by the Base Indenture, including to the extent no additional supplemental indenture or amendment is agreed upon in the event
the Floating Rate Notes remain outstanding following the completion of the exercise of the Bail-in Power. 
 By its acquisition of this
Note, each Holder of this Note acknowledges and agrees that neither a cancellation or deemed cancellation of the principal or interest (in each case, in whole or in part), nor the exercise of the Bail-in Power by the Relevant Resolution Authority
with respect to the Floating Rate Notes will give rise to a 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. 

By purchasing this Note, each Holder (including each beneficial owner) of this Note shall be deemed to have authorized, directed and requested
DTC and any direct participant in DTC or other intermediary through which it holds this Note to take any and all necessary action, if required, to implement the exercise of the Bail-in Power with respect to the Floating Rate Notes as it may be
imposed, without any further action or direction on the part of such Holder. 
 Each Holder of this Note also acknowledges and agrees that
the foregoing description of the Bail-in Power and its exercise is exhaustive on the matters described herein to the exclusion of any other agreements, arrangements or understandings relating to the application of any Bail-in Power to the Floating
Rate Notes. 
 Each Holder of this Note that acquires such Floating Rate Notes in the secondary market (including each beneficial owner)
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 of the Floating Rate Notes that acquire the Floating Rate Notes upon their initial issuance, including,
without limitation, with respect to the acknowledgment and agreement to be bound by and consent to the terms of the Floating Rate Notes, including in relation to the Bail-in-Power. 

  
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 Additional terms of the Floating Rate Notes, including but not limited to events of default,
remedies, payment of additional amounts in respect of withholding tax, substitution and variation of the Floating Rate Notes upon certain regulatory events, and amendment are set forth in the Senior Non Preferred Indenture 

The Senior Non Preferred Indenture and the Floating Rate Notes shall be governed by and construed in accordance with the laws of the State of
New York (without giving effect to the choice of law provisions), except for Section 12.01 of the Base Indenture, Sections 2.01(r), 2.02(r) and 2.03 (r) of the Second Supplemental Indenture and the status of the Floating Rate Notes, which
shall be governed by and construed in accordance with the laws of the Kingdom of Spain, and except that the authorization and execution by the Company of the Senior Non Preferred Indenture and the Floating Rate Notes shall be governed by (in
addition to the laws of the State of New York relevant to execution) the respective jurisdictions of the Company and the Trustee, as the case may be. 

The Floating Rate Notes and this Note have been issued in the State of New York. 

  
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