Document:

Exhibit 4.1

_______________________________________

 

LLOYDS BANK PLC

 

as Issuer,

 

LLOYDS BANKING GROUP PLC

 

as Guarantor,

 

and

 

THE BANK OF NEW YORK MELLON,

acting through its London Branch

 

as Trustee

 

_______________________________________

 

SEVENTH SUPPLEMENTAL INDENTURE

 

dated as of January 22, 2016

 

to

 

THE SENIOR DEBT SECURITIES INDENTURE

 

dated as of January 21, 2011

 

_______________________________________

 

     

     

    

SEVENTH SUPPLEMENTAL INDENTURE (“Seventh
Supplemental Indenture”), dated as of January 22, 2016, among LLOYDS BANK PLC, a corporation incorporated in England
and Wales with registered number 2065, as issuer (the “Company”), LLOYDS BANKING GROUP PLC, a corporation incorporated
in Scotland with registered number 95000, as guarantor (the “Guarantor”) and THE BANK OF NEW YORK MELLON, acting
through its London Branch, as trustee (the “Trustee”).

 

WITNESSETH

 

WHEREAS, the Company,
the Guarantor and the Trustee have executed and delivered a Senior Debt Securities Indenture dated as of January 21, 2011 (the
“Senior Indenture,” and together with this Seventh Supplemental Indenture, the “Indenture”)
to provide for the issuance of the Company’s Senior Debt Securities, including the Securities (as defined below).

 

WHEREAS, Section 9.01(d)
of the Senior Indenture permits the Company, the Guarantor and the Trustee to add to, change or eliminate any provisions of the
Senior Indenture without the consent of Holders as permitted under Sections 2.01 and 3.01 of the Senior Indenture, subject to certain
conditions;

 

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

 

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

 

WHEREAS, the Board
of Directors and the Guarantor board of directors have authorized the entry into this Seventh Supplemental Indenture, as required
by Section 9.01 of the Senior Indenture;

 

WHEREAS, the parties
hereto desire to establish, as further series of Senior Debt Securities under the Base Indenture, $750,000,000 2.050% Senior Notes
due 2019 (the “Fixed Rate Senior Notes”), and $450,000,000 Floating Rate Notes due 2019 (the “Floating
Rate Notes” and, together with the Fixed Rate Senior Notes, the “Securities”) and the Guarantees to
be endorsed thereon pursuant to Sections 2.01 and 3.01 of the Senior Indenture. The Securities may be issued from time to time
and any Securities issued as part of any series will constitute a single series of Securities under the Indenture and shall be
included in the definition of “Securities” where the context requires;

 

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

 

     

     

    

and the execution and
delivery of this Seventh Supplemental Indenture has been duly authorized in all respects; and

 

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

 

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

 

Article
1

DEFINITIONS

 

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

 

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

 

(b)    
capitalized terms used herein but not otherwise defined shall have the meanings assigned to them in the Senior 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 Seventh Supplemental Indenture and the Senior Indenture, the term “series” shall mean
a series of Securities.

 

Article
2

FORM OF SECURITIES AND GUARANTEE

 

Section 2.01.     
Terms of the Fixed Rate Senior Notes.

 

(a)    
The title of the Fixed Rate Senior Notes shall be the “2.050% Senior Notes due 2019”;

 

(b)    
The aggregate principal amount of the Fixed Rate Senior Notes that may be authenticated and delivered under the Indenture
shall not exceed $750,000,000, except as otherwise provided in the Indenture;

 

(c)    
Principal on the Fixed Rate Senior Notes shall be payable on January 22, 2019;

 

(d)    
The Fixed Rate Senior Notes shall be issued in global registered form on January 22, 2016 and shall bear interest from January
22, 2016 payable semi-annually in

 

    3 

     

    

arrears on January 22
and July 22 (each, an “Interest Payment Date”), commencing July 22, 2016. The Fixed Rate Senior Notes shall
bear an annual interest rate of 2.050%;

 

Interest on the Fixed
Rate Senior Notes will be calculated on the basis of a 360-day year divided into twelve months of 30 days each and, in the case
of an incomplete month, the actual number of days elapsed in such period. The Regular Record Dates for the Fixed Rate Senior Notes
will be 15 calendar days immediately preceding the relevant Interest Payment Date, whether or not a Business Day;

 

(e)    
No premium, upon redemption or otherwise, shall be payable by the Company on the Fixed Rate Senior Notes;

 

(f)    
Principal of and any interest on the Fixed Rate Senior 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;

 

(g)    
The Fixed Rate Senior Notes may be redeemable pursuant to Section 11.08 of the Senior Indenture. In connection with any
redemption of the Fixed Rate Senior Notes pursuant to Section 11.08 of the Senior Indenture, the date referenced therein shall
be January 22, 2016;

 

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

 

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

 

(j)    
The principal amount of the Fixed Rate Senior Notes shall be payable upon the declaration of acceleration thereof pursuant
to Section 5.02 of the Senior Indenture;

 

(k)    
The Fixed Rate Senior Notes shall not be converted into or exchanged at the option of the Company or otherwise for stock
or other securities of the Company;

 

(l)    
The Fixed Rate Senior Notes shall be denominated in, and payments thereon shall be made in, U.S. Dollars;

 

(m)    
The payment of principal of (and premium, if any) or interest, if any, on the Fixed Rate Senior Notes shall be payable only
in the coin or currency in which the Fixed Rate Senior Notes are denominated;

 

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

 

(o)    
The Fixed Rate Senior Notes will not be initially issued in definitive form;

 

(p)    
There is no Calculation Agent for the Fixed Rate Senior Notes;

 

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(q)    
The Events of Default on the Fixed Rate Senior Notes are as provided for in the Senior Indenture;

 

(r)    
The form of the Fixed Rate Senior Notes to be issued on the date hereof and the Guarantee to be endorsed on the Fixed Rate
Senior Notes shall be substantially in the form of Exhibit A hereto;

 

(s)    
The Company may issue additional Fixed Rate Senior Notes (“Additional Notes”) after the date hereof having
the same ranking and same interest rate, maturity date, redemption terms and other terms as the Fixed Rate Senior Notes except
for the price to the public, issue date and first interest payment date, provided that such Additional Notes must be fungible with
the outstanding Fixed Rate Senior Notes for U.S. federal income tax purposes. Any such Additional Notes, together with the Fixed
Rate Senior Notes will constitute a single series of securities under the Indenture;

 

(t)    
Additional Amounts in respect of the Fixed Rate Senior Notes shall be payable as set forth in the Senior Indenture, as
supplemented by this Seventh Supplemental Indenture.

 

Section 2.02.     
Terms of the Floating Rate Notes.

 

(a)    
The title of the Floating Rate Notes shall be the “Floating Rate Notes due 2019”;

 

(b)    
The aggregate principal amount of the Floating Rate Notes that may be authenticated and delivered under the Indenture shall
not exceed $450,000,000, except as otherwise provided in the Indenture;

 

(c)    
Principal on the Floating Rate Notes shall be payable on January 22, 2019;

 

(d)    
The Floating Rate Notes shall be issued in global registered form on January 22, 2016.

 

The interest rate for
the Floating Rate Notes for the first Floating Rate Interest Period (as defined below) will be LIBOR (as defined below) as determined
on January 20, 2016 plus the Spread. The interest rate for each subsequent Floating Rate Interest Period will be LIBOR as determined
on the applicable Interest Determination Date (as defined below) plus the Spread, in each case calculated on the basis of a 360-day
year and the actual number of days elapsed. The Spread is 100 basis points.

 

The initial Floating
Rate Interest Payment Date (as defined below) will fall on April 22, 2016. Thereafter, interest on the Floating Rate Notes will
be paid quarterly in arrears on January 22, April 22, July 22 and October 22 of each year (together with the initial interest payment
date, each a “Floating Rate Interest Payment Date”). However, if a Floating Rate Interest Payment Date would
fall on a day that is not a business day, other than the interest payment date that is also the date of maturity, the Floating
Rate Interest Payment Date will be postponed to the next succeeding day that is a business day and interest thereon will continue
to accrue, except that if the business day falls in the

 

    5 

     

    

next succeeding calendar
month, the applicable Floating Rate Interest Payment Date will be the immediately preceding business day. In each such case, except
for the Floating Rate Interest Payment Date falling on the maturity date, the Floating Rate Interest Periods and the Interest Reset
Dates (as defined below) will be adjusted accordingly to calculate the amount of interest payable on the notes.

 

The interest rate will
be reset on each Floating Rate Interest Payment Date (together with the initial interest reset date, each an “Interest
Reset Date”). However, if any Interest Reset Date would otherwise be a day that is not a business day, that Interest
Reset Date will be postponed to the next succeeding day that is a business day, except that if the business day falls in the next
succeeding calendar month, the applicable Interest Reset Date will be the immediately preceding business day.

 

Interest will be paid
on the Floating Rate Notes to Holders of record of each Floating Rate Note in respect of the principal amount thereof as at the
15th calendar day prior to the relevant Floating Rate Interest Payment Date.

 

The first interest
period will begin on and include January 22, 2016 and will end on and exclude April 22, 2016. Thereafter, the interest period will
be the periods from and including a Floating Rate Interest Payment Date to but excluding the immediately succeeding Floating Rate
Interest Payment Date (together with the first interest period, each a “Floating Rate Interest Period”). However,
the final Floating Rate Interest Period will be the period from and including the Floating Rate Interest Payment Date immediately
preceding the Maturity Date to but excluding the Maturity Date.

 

The calculation agent
in respect of the Floating Rate Notes will determine LIBOR (as defined below) for each Floating Rate Interest Period other than
the first Floating Rate Interest Period on the second day in which dealings in United States dollars are transacted or, with respect
to any future date, are expected to be transacted in the London interbank market (a “London Banking Day”) prior
to the first day of such Floating Rate Interest Period (an “Interest Determination Date”).

 

“LIBOR,”
with respect to a Floating Rate Interest Period, shall be the offered rate (expressed as a percentage per annum) for deposits of
U.S. dollars having a maturity of three months that appears on the Designated LIBOR Page (as defined below) as of 11:00 a.m., London
time.

 

If no rate appears
on the Designated LIBOR Page, 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 calculation agent, after consultation with us, for
a term of three months and in a Representative Amount. The calculation agent will request that the principal London office of each
of such banks provide a quotation of its rate. If at least two such quotations are provided, LIBOR for such Floating Rate Interest
Period will be the arithmetic mean of such quotations. If fewer than two such quotations are provided, LIBOR for such Floating
Rate Interest Period will be the arithmetic mean of the rates

 

    6 

     

    

quoted at approximately
11:00 a.m. in the City of New York on such Interest Determination Date by three major banks in New York City, selected by the calculation
agent, after consultation with us, for loans in United States dollars to leading European banks, for a term of three months and
in a Representative Amount. If at least two such quotations are provided, LIBOR for such Floating Rate Interest Period will be
the arithmetic mean of such quotations. If fewer than two quotations are provided, then LIBOR for such Floating Rate Period will
be LIBOR in effect with respect to the immediately preceding Floating Rate Interest Period.

 

“Designated
LIBOR Page” means the Reuters Screen LIBOR01 display page, or any successor page, on Reuters or any successor service
(or any such other service(s) as may be nominated by ICE Benchmark Administration Limited (“IBA”) or its successor
or such other entity assuming the responsibility of IBA or its successor in calculating the London interbank offered rate in the
event IBA or its successor no longer does so for the purpose of displaying London interbank offered rates for U.S. dollar deposits).

 

“Interest
Determination Date” for each Floating Rate Interest Period will be the second London Banking Day preceding the first
day of such Floating Rate Interest Period.

 

“London Banking
Day” is any day in which dealings in United States dollars are transacted or, with respect to any future date, are expected
to be transacted in the London interbank market.

 

“Representative
Amount” means 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.

 

All calculations of
the calculation agent, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and on
the Holders of the Floating Rate Notes.

 

All percentages resulting
from any of the above calculations will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point,
with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655))
and all dollar amounts used in or resulting from such calculations will be rounded to the nearest cent (with one-half cent being
rounded upwards).

 

The interest rate on
the Floating Rate Notes will in no event be higher than the maximum rate permitted by law.

 

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

 

(f)    
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;

 

    7 

     

    

(g)    
The Floating Rate Notes may be redeemable pursuant to Section 11.08 of the Senior Indenture. In connection with any redemption
of the Floating Rate Notes pursuant to Section 11.08 of the Senior Indenture, the date referenced therein shall be January 22,
2016;

 

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

 

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

 

(j)    
The principal amount of the Floating Rate Notes shall be payable upon the declaration of acceleration thereof pursuant
to Section 5.02 of the Senior Indenture;

 

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

 

(l)    
The Floating Rate Notes shall be denominated in, and payments thereon shall be made in, U.S. Dollars;

 

(m)    
The payment of principal of (and premium, if any) 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;

 

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

 

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

 

(p)    
The Calculation Agent for the Floating Rate Notes will be The Bank of New York Mellon pursuant to the terms of a Calculation
Agency Agreement dated January 22, 2016;

 

(q)    
The Events of Default on the Floating Rate Notes are as provided for in the Senior Indenture;

 

(r)    
The form of the Floating Rate Notes to be issued on the date hereof and the Guarantee to be endorsed on the Floating Rate
Notes shall be substantially in the form of Exhibit B hereto;

 

(s)    
The Company may issue additional Floating Rate Notes (“Additional Notes”) after the date hereof having
the same ranking and same interest rate, maturity date, redemption terms and other terms as the Floating Rate Notes except for
the price to the public, issue date and first interest payment date, provided that such Additional Notes must be fungible with
the outstanding Floating Rate Notes for U.S. federal income tax

 

    8 

     

    

purposes. Any such Additional
Notes, together with the Floating Rate Notes will constitute a single series of securities under the Indenture;

 

(t)    
Additional Amounts in respect of the Floating Rate Notes shall be payable as set forth in the Senior Indenture, as supplemented
by this Seventh Supplemental Indenture.

 

Article
3

ADDITIONAL TERMS APPLICABLE TO THE SECURITIES

 

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

 

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

 

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

 

“U.K.
bail-in power” means any write-down and/or conversion power existing from time to time under any laws, regulations, rules
or requirements relating to the resolution of banks, banking group companies, credit institutions and/or investment firms incorporated
in the United Kingdom in effect and applicable in the United Kingdom to the Company and the Group, including but not limited to
any such laws, regulations, rules or requirements which are implemented, adopted or enacted within the context of a European Union
directive or regulation of the European Parliament and of the Council establishing a framework for the recovery and resolution
of credit institutions and investment firms and/or within the context of a U.K. resolution regime under to the Banking Act 2009,
as the same has been or may be amended from time to time (whether pursuant to the U.K. Financial Services (Banking Reform) Act
2013, secondary legislation or otherwise, pursuant to which obligations of a bank, banking group company, credit institution or
investment firm or any of its affiliates can be reduced, cancelled, amended, transferred and/or converted into shares or other
securities or obligations of the obligor or any other person.

 

Section 3.02.     
Events of Default. With respect to the Securities only, Section 5.01 of the Senior Indenture is amended by adding
the following sentence at the end of the section:

 

    9 

     

    

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

 

Section 3.03.     
Compensation and Reimbursement. With respect to the Securities only, Section 6.07 of the Senior Indenture is amended
in part to add the following sentence at the end of the section:

 

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

 

Section 3.04.     
Agreement with Respect to Exercise of U.K. Bail-In Power. The following provisions relate solely to the Securities
established pursuant to this Seventh Supplemental Indenture:

 

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

 

(b)    
By purchasing or acquiring the Securities, each Holder and each Beneficial Owner of the Securities:

 

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

 

    10 

     

    

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

 

(iii)    
acknowledges and agrees that, upon the exercise of any U.K. bail-in power by the relevant U.K. resolution authority, (a)
the Trustee shall not be required to take any further directions from Holders of the Securities under Section 5.12 of the Senior
Indenture, and (b) neither the Senior Indenture nor this Seventh Supplemental Indenture shall impose any duties upon the Trustee
whatsoever with respect to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority. Notwithstanding the
foregoing, if, following the completion of the exercise of the U.K. bail-in power by the relevant U.K. resolution authority, any
of the Securities remain outstanding (for example, if the exercise of the U.K. bail-in power results in only a partial write-down
of the principal of the Securities), then the Trustee’s duties under the Indenture shall remain applicable with respect to
the Securities following such completion to the extent that the Company and the Trustee shall agree pursuant to a supplemental
indenture or an amendment to this Seventh Supplemental Indenture.

 

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

 

(d)    
By purchasing or acquiring the Securities, each Holder and Beneficial Owner shall be deemed to have (i) consented to the
exercise of any U.K. bail-in power as it may be imposed without any prior notice by the relevant U.K. resolution authority of its
decision to exercise such power with respect to the Securities and (ii) authorized, directed and requested DTC and any direct participant
in DTC or other intermediary through which it holds such Securities to take any and all necessary action, if required, to implement
the exercise of any U.K. bail-in power with respect to the Securities as it may be imposed, without any further action or direction
on the part of such Holder or Beneficial Owner.

 

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

 

    11 

     

    

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

 

Article
4

AMENDMENTS TO THE SENIOR INDENTURE

 

Section 4.01.     
Appointment of Agent for Service. With respect to any series of Senior Debt Securities issued under the Senior Indenture,
including the Securities, Section 1.14 of the Senior Indenture is amended and restated in its entirety and shall read as follows:

 

Section 1.14.
Appointment of Agent for Service. Each of the Company and the Guarantor has designated and appointed the Chief U.S. Counsel,
Lloyds Bank plc (or any successor thereto), currently of 1095 Avenue of the Americas, 34th Floor, New York, NY 10036 as its authorized
agent upon which process may be served in any suit or proceeding in any Federal or State court in the Borough of Manhattan, The
City of New York arising out of or relating to the Senior Debt Securities, this Senior Debt Securities Indenture or this Seventh
Supplemental Indenture, but for that purpose only, and agrees that service of process upon such authorized agent shall be deemed
in every respect effective service of process upon it in any such suit or proceeding in any Federal or State court in the Borough
of Manhattan, The City of New York, New York. Such appointment shall be irrevocable so long as any of the Senior Debt Securities
remain Outstanding until the appointment of a successor by the Company or the Guarantor and such successor’s acceptance of
such appointment. Upon such acceptance, the Company or the Guarantor shall notify the Trustee of the name and address of such successor.
Each of the Company and the Guarantor further agrees to take any and all action, including the execution and filing of any and
all such documents and instruments, as may be necessary to continue such designation and appointment of such authorized agent in
full force and effect so long as any of the Senior Debt Securities shall be Outstanding. The Trustee shall not be obligated and
shall have no responsibility with respect to any failure by the Company or the Guarantor to take any such action. Each of the Company
and the Guarantor hereby submits (for the purposes of any such suit or proceeding) to the jurisdiction of any such court in which
any such suit or proceeding is so instituted, and waives, to the extent it may effectively do so, any right to trial by jury and
any objection it may have now or hereafter to the laying of the venue of any such suit or proceeding.

 

Section 4.02.     
Notices to Trustee. With respect to any series of Senior Debt Securities issued under the Senior Indenture, including
the Securities, Section 1.05(a) of the Senior Indenture is amended and restated in part to read as follows:

 

Section 1.05.
Notices, Etc. to Trustee, Company and Guarantor. Any request, demand, authorization, direction, notice, consent, waiver or
Act of

 

    12 

     

    

Holders or
other document provided or permitted by the Senior Debt Securities Indenture or the Seventh Supplemental Indenture to be made upon,
given or furnished to, or filed with,

 

(a) the Trustee
by any Holder or by the Company or the Guarantor shall be sufficient for every purpose hereunder (unless otherwise herein expressly
provided) if made, given, furnished or filed in writing (which may be via facsimile) to the Trustee at its Corporate Trust Office
and the Trustee agrees to accept and act upon facsimile transmission of written instructions pursuant to the Senior Debt Securities
Indenture or the Seventh Supplemental Indenture; provided, however, that (x) the party providing such written instructions, subsequent
to such transmission of written instructions, shall provide the originally executed instructions or directions to the Trustee in
a timely manner, and (y) such originally executed instructions or directions shall be signed by an authorized representative of
the party providing such instructions or directions; or

 

Section 4.03.     
Additional Amounts. With respect to any series of Senior Debt Securities issued under the Senior Indenture, including
the Securities, Section 10.04 of the Senior Indenture is hereby amended and replaced in its entirety as follows:

 

Section 10.04.Additional
Amounts. Amounts to be paid on any series of Senior Debt Securities or under the Guarantee will be made without deduction or
withholding for, or on account of, any and all present and future income, stamp and other taxes, levies, imposts, duties, charges
or fees imposed, levied, collected, withheld or assessed by or on behalf of the United Kingdom or any political subdivision or
authority thereof or therein having the power to tax (the “Taxing Jurisdiction”), unless such deduction or withholding
is required by law. If at any time a Taxing Jurisdiction requires the Company or the Guarantor, as the case may be, to make such
deduction or withholding, the Company, or the Guarantor, as the case may be, will pay additional amounts with respect to the principal
of, interest and any other payment on, the Senior Debt Securities (“Additional Amounts”) that are necessary
in order that the net amounts paid to the Holders of Senior Debt Securities of the particular series, after the deduction or withholding,
shall equal the amounts which would have been payable on the Senior Debt Securities if the deduction or withholding had not been
required. However, this will not apply to any such tax, levy, impost, duty, charge or fee, which would not have been deducted
or withheld but for the fact that:

 

(i) the Holder
or the Beneficial Owner of the Senior Debt Security is a domiciliary, national or resident of, or engaging in business or maintaining
a permanent establishment or is physically present in, the Taxing Jurisdiction or otherwise has some connection with the Taxing
Jurisdiction other than the holding or ownership of a Senior Debt Security, or the collection of any payment of (or in respect
of) principal of, or any interest, or other payment on, any Senior Debt Security of the relevant series or under the Guarantee,

 

    13 

     

    

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

 

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

 

(iv) the
Holder or the Beneficial Owner of the relevant Senior Debt Security or the Beneficial Owner of any payment of (or in respect of)
principal of or any interest or other payment on, the Senior Debt Security failed to comply with a request of the Company or its
liquidator or guarantor or other authorized person addressed to the Holder (x) to provide information concerning the nationality,
residence or identity of the Holder or the Beneficial Owner or (y) to make any declaration or other similar claim to satisfy any
requirement, which in the case of (x) or (y), is required or imposed by a statute, treaty, regulation or administrative practice
of the Taxing Jurisdiction as a precondition to exemption from all or part of the tax, levy, impost, duty, charge or fee,

 

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

 

(vi) the
relevant Senior Debt Security is presented (where presentation is required) for payment by or on behalf of a Holder who would have
been able to avoid such withholding or deduction by presenting the relevant Senior Debt Security to another paying agent,

 

(vii) the
deduction or withholding is imposed by reason of any agreement with the U.S. Internal Revenue Service in connection with Sections
1471-1474 of the U.S. Internal Revenue Code and the U.S. Treasury regulations thereunder (“FATCA”), any intergovernmental
agreement between the United States and the United Kingdom or any other jurisdiction with respect to FATCA, or any law, regulation
or other official guidance enacted in any jurisdiction implementing, or relating to, FATCA or any intergovernmental agreement,
or

 

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

 

nor shall
Additional Amounts be paid with respect to the principal of or any interest or other payment on, the Senior Debt Securities or
under the Guarantee to any Holder who is a fiduciary or partnership or any person other than the sole Beneficial Owner of such
payment to the extent such payment would be required by the laws of any Taxing Jurisdiction to be included in the income

 

    14 

     

    

for tax purposes
of a beneficiary or partner or settlor with respect to such fiduciary or a member of such partnership or a Beneficial Owner who
would not have been entitled to such Additional Amounts, had it been the Holder.

 

Whenever in
this Senior Debt Securities Indenture there is mentioned, in any context, the payment of the principal of or any interest or other
payments on, in respect of, any Senior Debt Security of any series such mention shall be deemed to include mention of the payment
of Additional Amounts provided for in this Section to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to the provisions of this Section and as if express mention of the payment of Additional Amounts
(if applicable) were made in any provisions hereof where such express mention is not made. Upon request from the Trustee or a paying
agent, the Company and/or the Guarantor, as the case may be, shall provide information reasonably necessary and readily available
in order to enable to the Trustee or paying agent to determine whether any withholding obligations under FATCA apply. Neither the
Company, the Guarantor, the Trustee or a paying agent shall have any liability in connection with the Company’s or Trustee’s
or paying agent’s compliance with any such withholding obligation under applicable law.

 

Section 4.04.     
Optional Redemption Due to Changes in Tax Treatment. With respect to any series of Senior Debt Securities issued
under the Senior Indenture, including the Securities, Section 11.08 of the Senior Indenture is hereby amended in part to amend
and restate the final paragraph in its entirety, which shall read as follows:

 

Section 11.08
Optional Redemption Due to Changes in Tax Treatment. In any case where the Company (or, if applicable, the Guarantor) shall
determine that as a result of any change in the official application or interpretation of any laws or regulations it is entitled
to redeem the Senior Debt Securities of any series, the Company (or, if applicable, the Guarantor) shall be required to deliver
to the Trustee prior to the giving of any notice of redemption (i) a written legal opinion of independent United Kingdom counsel
of recognized standing (selected by the Company or, if applicable, the Guarantor) in a form satisfactory to the Trustee confirming
that the relevant change in the application or interpretation of such laws or regulations has occurred and that the Company (or,
if applicable, the Guarantor) is entitled to exercise its right of redemption; and (ii) an Officer’s Certificate, evidencing
compliance with such provisions and stating that it is entitled to redeem the Senior Debt Securities pursuant to the terms of the
Senior Debt Securities.

 

Article
5

MISCELLANEOUS

 

Section 5.01.     
Effect Of Supplemental Indenture. Upon the execution and delivery of this Seventh Supplemental Indenture by each
of the Company, the Guarantor and the Trustee, and the delivery of the documents referred to in Section 5.02 herein, the Senior
Indenture shall be supplemented in accordance herewith, and this Seventh

 

    15 

     

    

Supplemental Indenture
shall form a part of the Senior Indenture for all purposes in respect of the Securities or otherwise as applicable.

 

Section 5.02.     
Other Documents to be Given to the Trustee. The Trustee shall be entitled to receive an Officer’s Certificate
and an Opinion of Counsel stating the recitals contained in Section 1.02 of the Senior Indenture. As specified in Section 9.03
of the Senior Indenture and subject to the provisions of Section 6.03 of the Senior Indenture, the Trustee shall also be entitled
to receive an Opinion of Counsel stating that that this Seventh Supplemental Indenture and the Securities whose terms are incorporated
by reference herein are each, subject to Section 1.03 of the Senior Indenture, a legal, valid and binding obligation of the Company
and the Guarantor enforceable in accordance with their terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other laws relating to or affecting creditor’s rights generally, by equitable principles
of general applicability and by possible judicial actions giving effect to governmental actions or foreign laws affecting creditors’
rights, and the Seventh Supplemental Indenture is permitted under the Indenture. The Trustee may rely on such Officer’s Certificate
and Opinion of Counsel as conclusive evidence that this Seventh Supplemental Indenture complies with the applicable provisions
of the Senior Indenture.

 

Section 5.03.     
Confirmation Of Indenture. The Senior Indenture, as supplemented and amended by this Seventh Supplemental Indenture
with respect to the Securities or otherwise as applicable, is in all respects ratified and confirmed, and the Senior Indenture,
this Seventh Supplemental Indenture and all indentures supplemental thereto shall, in respect of the Securities or otherwise as
applicable, be read, taken and construed as one and the same instrument. This Seventh Supplemental Indenture constitutes an integral
part of the Senior Indenture and, where applicable, with respect to the Securities. In the event of a conflict between the terms
and conditions of the Senior Indenture and the terms and conditions of this Seventh Supplemental Indenture, the terms and conditions
of this Seventh Supplemental Indenture shall prevail where applicable.

 

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

 

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

 

    16 

     

    

Section 5.06.     
Separability. In case any provision contained in this Seventh Supplemental Indenture shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby.

 

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

 

Section 5.08.     
Concerning BRRD Liability. Notwithstanding any other term of this Seventh Supplemental Indenture or the Senior Debt
Securities Indenture or any other agreements, arrangements, or understanding between the Issuer or the Guarantor and the Trustee,
the Trustee acknowledges, accepts, and agrees to be bound by:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Bail-in
Powers” means any Write-down and Conversion Powers as defined in relation to the Bail-in Legislation.

 

    17 

     

    

“BRRD”
means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms.

 

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

 

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

 

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

 

[Signature Pages Follow]

 

    18 

     

    

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

 

	LLOYDS BANK PLC,	 
	 as Issuer	 
	 	 
	By:	  /s/ Peter Green	 
	Name: Peter Green	 
	Title:Head of Public Senior Funding & Covered Bonds,  Capital Markets Issuance	 
	 	 	 
	 	 	 
	 	 	 
	LLOYDS BANKING GROUP PLC,	 
	as Guarantor	 
	 	 
	By:	  /s/ Peter Green	 
	Name: Peter Green	 
	Title:Head of Public Senior Funding & Covered Bonds,  Capital Markets Issuance	 
	 	 
	 	 
	 	 
	 	 

[Signature Page to Seventh Supplemental
Indenture]

 

     

     

    

	THE BANK OF NEW YORK  MELLON,	 
	as Trustee	 
	 	 
	By:	 /s/ Maria Bertolin	 
	Name: Maria Bertolin	 
	Title: Authorized Signatory	 

[Signature Page to Seventh Supplemental
Indenture]

     

     

    

EXHIBIT A

 

FORM OF FIXED RATE SENIOR GLOBAL NOTE

 

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

 

CUSIP No.
[●]

ISIN No. [●]

Common Code: [●]

 

LLOYDS BANK plc

 

[●]% SENIOR NOTE DUE 2019

 

Guaranteed by

LLOYDS BANKING GROUP plc

 

	No. [●]	$[●]

 

 

LLOYDS BANK plc (herein called the “Company,”
which term includes any successor person under the Indenture (as defined on the reverse hereof)), for value received, hereby promises
to pay to CEDE & CO., or registered assigns, the principal sum of $[●] ([●] million dollars) on January [●],
2019 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 January [●] and July [●] of each year, commencing on July [●], 2016, and ending on
January [●], 2019 (each, a “Payment Date”). Interest so payable on any Payment Date shall be paid to the Holder
in whose name this Senior 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 Indenture (each a “Regular Record Date”). Any interest
which is payable, but is not punctually paid or duly provided for, on any Payment Date is herein called “Default Interest”.
Default Interest shall cease to be payable to the registered Holder on the relevant Regular Record Date by virtue then of having
been such Holder, and such Default Interest may be paid by the Company, at its election in each case, as provided in clause (x)
or (y) below: (x) the Company may elect to make payment of any Default Interest to registered Holders at the close of business
on a Special Record Date (a “Special Record Date”) for the payment of such Default Interest, such Special Record Date
to be fixed in accordance with Section 3.07(a) of the Indenture

 

    A-1

     

    

or, (y) the Company may make payment of
any Default Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which this
Note may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the trustee
of the proposed payment, such manner of payment shall be deemed practicable by the trustee.

 

Interest shall accrue
on this Senior Note from day to day from the date of issuance hereof or from the most recent Payment Date at the rate of [●]%
per annum, until the principal amount hereof is paid or made available for payment.

 

Payments of interest
on this Senior 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 period.

 

Payment of the principal
amount of (and premium, if any) and any interest on, this Senior Note will be made in such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public and private debts. Such payment shall be made to the
Holder including through a Paying Agent of the Company outside the United Kingdom for collection by the Holder. If the date for
payment of the principal amount hereof (and premium, if any) or interest thereon is not a Business Day, then (subject as provided
in the 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 and without any interest or other payment in respect of such delay.

 

Prior to due presentment
of this Senior 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 Senior Note is registered as the owner of such Senior Note for the purpose of receiving payment of
principal and interest, if any, on such Senior Note and for all other purposes whatsoever, whether or not such Senior 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 Senior 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 Senior Note
shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

Notwithstanding any
other agreements, arrangements, or understandings between us and any Holder or Beneficial Owner of this Senior Note, by purchasing
or acquiring this Senior Note, each Holder (including each Beneficial Owner) of this Senior Note acknowledges, accepts, agrees
to be bound by and consents to the exercise of any U.K. bail-in power (as defined below) by the relevant U.K. resolution authority
that may result in (i) the reduction or cancellation of all, or a portion, of the principal amount of, or interest on, this Senior
Note; (ii) the conversion of all, or a portion, of the principal

 

    A-2

     

    

amount of, or interest
on, this Senior Note into shares or other securities or other obligations of the Company or another person; and/or (iii) the amendment
or alteration of the maturity of this Senior Note, or amendment of the amount of interest due on this Senior Note, or the dates
on which interest becomes payable, including by suspending payment for a temporary period; which U.K. bail-in power may be exercised
by means of variation of the terms of this Senior Note solely to give effect to the exercise by the relevant U.K. resolution authority
of such U.K. bail-in power. Each Holder and Beneficial Owner of this Senior Note further acknowledges and agrees that the rights
of the Holders and/or Beneficial Owners under this Senior Note are subject to, and will be varied, if necessary, solely to give
effect to, the exercise of any U.K. bail-in power by the relevant U.K. resolution authority.

 

For these purposes,
a “U.K. bail-in power” is any write-down and/or conversion power existing from time to time under any laws, regulations,
rules or requirements relating to the resolution of banks, banking group companies, credit institutions and/or investment firms
incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company and the Group, including but not
limited to any such laws, regulations, rules or requirements which are implemented, adopted or enacted within the context of a
European Union directive or regulation of the European Parliament and of the Council establishing a framework for the recovery
and resolution of credit institutions and investment firms and/or within the context of a U.K. resolution regime under the Banking
Act as the same has been or may be amended from time to time (whether pursuant to the Banking Reform Act 2013, secondary legislation
or otherwise), pursuant to which obligations of a bank, banking group company, credit institution or investment firm or any of
its affiliates can be reduced, cancelled, amended, transferred and/or converted into shares or other securities or obligations
of the obligor or any other person (and a reference to the “relevant U.K. resolution authority” is to any authority
with the ability to exercise a U.K. bail-in power).

 

[The rest of this page is intentionally
left blank]

 

    A-3

     

    

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

 

Dated: January [●], 2016

 

	LLOYDS BANK PLC
	 
	By:	__________________________________
	 	Name:
	 	Title:

 

 

 

 

 

 

[ Fixed Rate Global Note No. [·]
Signature Page]

    A-4

     

    

 

GUARANTEE OF LLOYDS BANKING GROUP plc

 

LLOYDS BANKING GROUP plc (herein called
the “Guarantor,” which term includes any successor person under the Indenture (as defined on the reverse hereof)) hereby
unconditionally guarantees (the “Guarantee”) to each Holder of this Senior Note the due and punctual payment of the
principal of, any premium and interest on, and any Additional Amounts with respect to such Senior Note and the due and punctual
payment of the sinking fund payments (if any) provided for pursuant to the terms of such Senior Note and any and all amounts under
the Indenture (including but not limited to, the fees, expenses and indemnities of the Trustee), when and as the same shall become
due and payable, whether at maturity, by acceleration, redemption, repayment or otherwise, in accordance with the terms of such
Senior Note and of the Indenture. In case of the failure of the Company punctually to pay any such principal, premium, interest,
Additional Amounts or sinking fund payment and any and all amounts under the Indenture, (including but not limited to, the fees,
expenses and indemnities of the Trustee) the Guarantor hereby agrees to pay, or cause any such payment to be made, punctually when
and as the same shall become due and payable, whether at maturity, upon acceleration, redemption, repayment or otherwise, and as
if such payment were made by the Company in accordance with the terms of such Senior Note and of the Indenture.

 

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

 

    A-5

     

    

IN WITNESS WHEREOF,
the Guarantor has caused this guarantee to be duly executed.

 

Dated: January [●], 2016

 

	Executed by LLOYDS BANKING GROUP PLC
	 
	 
	By:	__________________________________
	 	Name:
	 	Title:
	 	 
	 	 
	 	 
	By:	__________________________________
	 	Name:
	 	Title:

 

 

 

 

 

[Fixed Rate Global Note No. [·]
Signature Page]

    A-6

     

    

 

 

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: January [●], 2016

 

	THE BANK OF NEW YORK MELLON,
	as Trustee
	 
	 
	By:	
	 	Authorized Signatory

 

 

[Fixed Rate Global Note No. [·]
Signature Page]

 

 

    A-7

     

    

 

[REVERSE OF SECURITY]

 

This Senior Note is
one of a duly authorized issue of securities of the Company (herein called the “Senior Notes”) issued and to be issued
in one or more series under a Senior Debt Securities Indenture, dated as of January 21, 2011 (herein called the “Senior Indenture”),
among the Company, as issuer, the Guarantor, as guarantor, and The Bank of New York Mellon, as trustee (herein called the “Trustee,”
which term includes any successor trustee under the Senior Indenture), as supplemented by the Seventh Supplemental Indenture dated
as of January [●], 2016, among the Company, the Guarantor and the Trustee (the “Seventh Supplemental Indenture”
and, together with the Senior Indenture, the “Indenture”) to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Company, the Guarantor, the Trustee and the Holders of the Senior Notes and of the terms upon which the Senior Notes are, and are
to be, authenticated and delivered.

 

This Senior Note is
one of the series designated on the face hereof, initially limited in aggregate principal amount to $[●]. The Company may,
without the consent of the Holders of the Senior Notes, issue additional notes having the same ranking and interest rate, maturity
date, redemption terms and other terms as the Senior Notes except for the price to the public, issue date and first interest payment
date, provided that such additional notes must be fungible with the outstanding Senior Notes for U.S. federal income tax purposes.
Any such Senior Notes, together with this Senior Note, will constitute a single series of securities under the Indenture. The Senior
Notes will initially be issued in the form of one or more global Senior Notes (each, a “Global Senior Note”). Except
as provided in the Indenture, a Global Senior Note shall not be exchangeable for one or more definitive Senior Notes.

 

The Senior Notes of
this series will constitute unsecured and unsubordinated obligations of the Company and the Guarantor, as described herein, and
will rank pari passu without any preference among themselves.

 

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

 

If an Event of Default
with respect to the Senior Notes of this series shall have occurred and be continuing, the Trustee may in its discretion proceed
to protect and enforce its rights and the rights of Holders of Senior Notes by such appropriate judicial proceedings as the Trustee
shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement
in the Indenture or in aid of the exercise of any power granted thereon, or to enforce any other proper remedy, including the institution
of proceedings in England or Scotland (but not elsewhere) for the winding up of the Company or the Guarantor, respectively.

 

    A-8

     

    

By acceptance of the
Senior Notes of this Series, the Holder will be deemed to have waived any right of set-off or counterclaim with respect to such
Senior Notes that they might otherwise have against the Company or the Guarantor, whether before or during a winding-up of the
Company or the Guarantor.

 

Amounts to be paid
on the Senior Notes of this Series or under the guarantee will be made without deduction or withholding for, or on account of,
any and all present and future income, stamp and other taxes, levies, imposts, duties, charges or fees, levied, collected, withheld
or assessed by or on behalf of the United Kingdom or any political subdivision or authority thereof or therein having the power
to tax (the “Taxing Jurisdiction”), unless such deduction or withholding is required by law. If at any time a Taxing
Jurisdiction requires the Company or the Guarantor, as the case may be, to make such deduction or withholding, the Company, or
the Guarantor, as the case may be, will pay additional amounts with respect to the principal of, and interest and any other payments
on, the Senior Notes of this series (“Additional Amounts”) that are necessary in order that the net amounts paid to
the Holders, after the deduction or withholding, shall equal the amounts which would have been payable on the Senior Notes if the
deduction or withholding had not been required. However, this will not apply to any such tax, levy, impost, duty, charge
or fee, which would not have been deducted or withheld but for the fact that:

 

(i) the Holder or the
Beneficial Owner of the Senior Note is a domiciliary, national or resident of, or engaging in business or maintaining a permanent
establishment or is physically present in, the Taxing Jurisdiction or otherwise has some connection with the Taxing Jurisdiction
other than the holding or ownership of a Senior Note, or the collection of any payment of (or in respect of) principal of, or interest
or other payments on, any Senior Note or under the guarantee,

 

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

 

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

 

(iv) the Holder or
the Beneficial Owner of the relevant Senior Note or the Beneficial Owner of any payment of (or in respect of) principal of, or
interest or other payments on, the Senior Note failed to comply with a request of the Company or its liquidator or guarantor or
other authorized person addressed to the Holder (x) to provide information concerning the nationality, residence or identity of
the Holder or such Beneficial Owner or (y) to make any declaration or other similar claim to satisfy any requirement, which in
the case of (x) or (y), is required or imposed by a statute, treaty, regulation or administrative practice of the Taxing Jurisdiction
as a precondition to exemption from all or part of the tax, levy, impost, duty, charge or fee,

 

    A-9

     

    

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

 

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

 

(vii) the deduction
or withholding is imposed by reason of any agreement with the U.S. Internal Revenue Service in connection with Sections 1471-1474
of the U.S. Internal Revenue Code and the U.S. Treasury regulations thereunder (“FATCA”), any intergovernmental agreement
between the United States and the United Kingdom or any other jurisdiction with respect to FATCA, or any law, regulation or other
official guidance enacted in any jurisdiction implementing, or relating to, FATCA or any intergovernmental agreement; or

 

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

 

nor shall Additional Amounts be paid with
respect to the principal of, or any interest or other payments on, the Senior Note or under the Guarantee to any Holder who is
a fiduciary or partnership or any person other than the sole Beneficial Owner of such payment to the extent such payment would
be required by the laws of any Taxing Jurisdiction to be included in the income for tax purposes of a beneficiary or partner or
settlor with respect to such fiduciary or a member of such partnership or a Beneficial Owner who would not have been entitled to
such Additional Amounts, had it been the Holder.

 

References herein to
the payment of the principal of or interest or other payments on any Senior Note shall be deemed to include mention of the payment
of Additional Amounts provided for in the foregoing paragraph to the extent that, in such context, Additional Amounts are, were
or would be payable under the foregoing provisions.

 

The Senior Notes of
this series are redeemable, as a whole but not in part, at the option of the Company or the Guarantor, on not less than 30 nor
more than 60 days’ notice, on any Payment Date, at a redemption price equal to 100% of the principal amount, together with
accrued but unpaid interest, in respect of the Senior Notes to the date fixed for redemption, if, at any time, the Company or,
if applicable, the Guarantor shall determine that as a result of a change in or amendment to the laws or regulations of the Taxing
Jurisdiction (including any treaty to which such Taxing Jurisdiction is a party), or any change in the application or interpretation
of such laws or regulations (including a decision of any court or tribunal) which change or amendment becomes effective on or after
January [●], 2016:

 

    A-10

     

    

(a) in making payment
under the Senior Notes the Company (or, if applicable, the Guarantor) has or will or would on the next Payment Date become obligated
to pay Additional Amounts;

 

(b) the payment of
interest on the next Payment Date in respect of any of the Senior Notes would be treated as a “distribution” within
the meaning of Chapter 2 of Part 23 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory modification or re-enactment
thereof for the time being); or

 

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

 

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

 

If the Company (or,
if applicable, the Guarantor) elects to redeem the Senior Notes of this series, the Senior Notes will cease to accrue interest
from the date of redemption, provided the redemption price has been paid in accordance with the Indenture.

 

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

 

Notwithstanding any
other agreements, arrangements, or understandings between us and any Holder or Beneficial Owner of this Senior Note, by purchasing
or acquiring this Senior Note, each Holder (including each Beneficial Owner) of this Senior Note acknowledges, accepts, agrees
to be bound by and consents to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority that may result
in (i) the reduction or cancellation of all, or a portion, of the principal amount of, or interest on, the Senior Notes; (ii) the
conversion of all, or a portion, of the principal amount of, or interest on, the Senior Notes into shares or other securities or
other obligations of the Company or another person; and/or (iii) the amendment or alteration of the maturity of the Senior Notes,
or amendment of the amount of interest due on the Senior Notes, or the dates on which interest becomes payable, including by suspending
payment for a temporary period; which U.K. bail-in power may be exercised by means of variation of the terms of the

 

    A-11

     

    

Senior Notes solely to
give effect to the exercise by the relevant U.K. resolution authority of such U.K. bail-in power. Each Holder and Beneficial Owner
of the Senior Notes further acknowledges and agrees that the rights of the Holders and/or Beneficial Owners under the Senior Notes
are subject to, and will be varied, if necessary, solely to give effect to, the exercise of any U.K. bail-in power by the relevant
U.K. resolution authority.

 

By purchasing or acquiring
the Senior Notes, each Holder and Beneficial Owner of the Securities:

 

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

 

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

 

(iii) acknowledges
and agrees that, upon the exercise of any U.K. bail-in power by the relevant U.K. resolution authority, (a) the Trustee shall not
be required to take any further directions from Holders of the Senior Notes under Section 5.12 of the Senior Indenture, and (b)
neither the Senior Indenture nor the Seventh Supplemental Indenture shall impose any duties upon the Trustee whatsoever with respect
to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority. Notwithstanding the foregoing, if, following
the completion of the exercise of the U.K. bail-in power by the relevant U.K. resolution authority, the Senior Notes remain outstanding
(for example, if the exercise of the U.K. bail-in power results in only a partial write-down of the principal of the Senior Notes),
then the Trustee’s duties under the Indenture shall remain applicable with respect to the Senior Notes following such completion
to the extent that the Company and the Trustee shall agree pursuant to a supplemental indenture or an amendment to the Seventh
Supplemental Indenture.

 

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

 

By purchasing or acquiring
the Senior Notes, each Holder and Beneficial Owner shall be deemed to have (i) consented to the exercise of any U.K. bail-in power
as it may

 

    A-12

     

    

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

 

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

 

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

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the Guarantor and the rights of the Holders of the Senior Notes of each series to be affected thereby by the Company and the
Trustee with the consent of the Holders of not less than a majority in principal amount of the Senior Notes at the time outstanding
of each such series. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount
of the outstanding Senior Notes of each series, on behalf of the Holders of all Senior Notes of such series, to waive compliance
by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Senior Note shall be conclusive and binding upon such Holder and upon all future Holders
of this Senior Note and of any Senior Note issued in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Senior Note.

 

No reference herein
to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay, if and when due and payable, the principal of (and premium, if any) and interest on,
this Senior Note at the times, place and rate, and in the coin or currency, herein prescribed.

 

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

 

    A-13

     

    

No reference herein
to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the right of the Holder of this
Senior Note, which is absolute and unconditional, to receive payment of the principal of (and premium, if any) and interest on,
this Senior Note when due and payable in accordance with the provisions of this Senior Note and the Indenture.

 

This Senior Note will
be governed by the laws of the State of New York.

 

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

 

    A-14

     

    

EXHIBIT B

 

FORM OF THE FLOATING RATE GLOBAL NOTE

 

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

 

CUSIP No.
[●]

ISIN No. [●]

Common Code: [●]

 

LLOYDS BANK plc

 

FLOATING RATE NOTE DUE 2019

 

Guaranteed by

LLOYDS BANKING GROUP plc

 

	No. [●]	$[●]

  

LLOYDS BANK plc (herein called the “Company,”
which term includes any successor person under the Indenture (as defined on the reverse hereof)), for value received, hereby promises
to pay to CEDE & CO., or registered assigns, the principal sum of $[●] ([●] million dollars) on January [●],
2019 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 January [●], April [●], July [●] and October [●], of each year, commencing on April
[●], 2016, and ending on January [●], 2019 (each, a “Floating Rate Interest Payment Date”). Interest so
payable on any Floating Rate Interest Payment Date shall be paid to the Holder in whose name this Senior Note is registered on
the 15th calendar day immediately preceding the relevant Floating Rate Interest Payment Date.

 

Any interest which
is payable, but is not punctually paid or duly provided for, on any Floating Rate Interest Payment Date is herein called “Default
Interest”. Default Interest shall cease to be payable to the registered Holder on the relevant Regular Record Date by virtue
then of having been such Holder, and such Default Interest may be paid by the Company, at its election in each case, as provided
in clause (x) or (y) below: (x) the Company may elect to make payment of any Default Interest to registered Holders at the close
of business on a Special Record Date (a “Special Record Date”) for the payment of

 

    B-1

     

    

such Default Interest,
such Special Record Date to be fixed in accordance with Section 3.07(a) of the Indenture or, (y) the Company may make payment of
any Default Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which this
Note may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the trustee
of the proposed payment, such manner of payment shall be deemed practicable by the trustee.

 

Interest shall accrue
on this Senior Note from day to day from the date of issuance hereof until the principal amount hereof is paid or made available
for payment.

 

Payment of the principal
amount of (and premium, if any), and any interest on, this Senior Note will be made in such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public and private debts. Such payment shall be made to the
Holder including through a Paying Agent of the Company outside the United Kingdom for collection by the Holder. If the date for
payment of the principal amount hereof (and premium, if any) or interest thereon is not a Business Day, then (subject as provided
in the 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 and without any interest or other payment in respect of such delay.

 

Prior to due presentment
of this Senior 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 Senior Note is registered as the owner of such Senior Note for the purpose of receiving payment of
principal and interest, if any, on such Senior Note and for all other purposes whatsoever, whether or not such Senior 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 Senior 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 Senior Note
shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

Notwithstanding any
other agreements, arrangements, or understandings between us and any Holder or Beneficial Owner of this Senior Note, by purchasing
or acquiring this Senior Note, each Holder (including each Beneficial Owner) of this Senior Note acknowledges, accepts, agrees
to be bound by and consents to the exercise of any U.K. bail-in power (as defined below) by the relevant U.K. resolution authority
that may result in (i) the reduction or cancellation of all, or a portion, of the principal amount of, or interest on, this Senior
Note; (ii) the conversion of all, or a portion, of the principal amount of, or interest on, this Senior Note into shares or other
securities or other obligations of the Company or another person; and/or (iii) the amendment or alteration of the maturity of this
Senior Note, or amendment of the amount of interest due on this Senior Note, or the dates on which interest becomes payable, including
by suspending

 

    B-2

     

    

payment for a temporary
period; which U.K. bail-in power may be exercised by means of variation of the terms of this Senior Note solely to give effect
to the exercise by the relevant U.K. resolution authority of such U.K. bail-in power. Each Holder and Beneficial Owner of this
Senior Note further acknowledges and agrees that the rights of the Holders and/or Beneficial Owners under this Senior Note are
subject to, and will be varied, if necessary, solely to give effect to, the exercise of any U.K. bail-in power by the relevant
U.K. resolution authority.

 

For these purposes,
a “U.K. bail-in power” is any write-down and/or conversion power existing from time to time under any laws, regulations,
rules or requirements relating to the resolution of banks, banking group companies, credit institutions and/or investment firms
incorporated in the United Kingdom in effect and applicable in the United Kingdom to the Company and the Group, including but not
limited to any such laws, regulations, rules or requirements which are implemented, adopted or enacted within the context of a
European Union directive or regulation of the European Parliament and of the Council establishing a framework for the recovery
and resolution of credit institutions and investment firms and/or within the context of a U.K. resolution regime under the Banking
Act 2009, as the same has been or may be amended from time to time (whether pursuant to the U.K. Financial Services (Banking Reform)
Act 2013 (the “Banking Reform Act 2013”), secondary legislation or otherwise), pursuant to which obligations of a bank,
banking group company, credit institution or investment firm or any of its affiliates can be reduced, cancelled, amended, transferred
and/or converted into shares or other securities or obligations of the obligor or any other person (and a reference to the “relevant
U.K. resolution authority” is to any authority with the ability to exercise a U.K. bail-in power).

 

[The rest of this page is intentionally
left blank]

 

    B-3

     

    

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

 

Dated:
January [●], 2016

 

	LLOYDS BANK PLC
	 
	 
	By:	__________________________________
	 	Name:
	 	Title:

 

 

 

[Floating Rate Global Note Signature
Page]

 

 

    B-4

     

    

 

GUARANTEE OF LLOYDS BANKING GROUP plc

 

LLOYDS BANKING GROUP plc (herein called
the “Guarantor,” which term includes any successor person under the Indenture (as defined on the reverse hereof)) hereby
unconditionally guarantees (the “Guarantee”) to each Holder of this Senior Note the due and punctual payment of the
principal of, any premium and interest on, and any Additional Amounts with respect to such Senior Note and the due and punctual
payment of the sinking fund payments (if any) provided for pursuant to the terms of such Senior Note and any and all amounts under
the Indenture (including but not limited to, the fees, expenses and indemnities of the Trustee), when and as the same shall become
due and payable, whether at maturity, by acceleration, redemption, repayment or otherwise, in accordance with the terms of such
Senior Note and of the Indenture. In case of the failure of the Company punctually to pay any such principal, premium, interest,
Additional Amounts or sinking fund payment and any and all amounts under the Indenture, (including but not limited to, the fees,
expenses and indemnities of the Trustee) the Guarantor hereby agrees to pay, or cause any such payment to be made, punctually when
and as the same shall become due and payable, whether at maturity, upon acceleration, redemption, repayment or otherwise, and as
if such payment were made by the Company in accordance with the terms of such Senior Note and of the Indenture.

 

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

 

    B-5

     

    

IN WITNESS
WHEREOF, the Guarantor has caused
this guarantee
to be duly executed.

 

Dated:
January [●], 2016

 

	Executed by LLOYDS BANKING GROUP PLC
	 
	 
	By:	__________________________________
	 	Name:
	 	Title:
	 	 
	By:	__________________________________
	 	Name:
	 	Title:

 

 

 

 

[Floating Rate Global Note Signature
Page]

 

    B-6

     

    

 

 

CERTIFICATE OF AUTHENTICATION

 

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

 

Dated: January [●], 2016

 

	THE BANK OF NEW YORK MELLON,
	 as Trustee
	 
	 
	By: 	 ________________________________
	 	Authorized Signatory

 

 

 

 

[Floating Rate Global Note Signature
Page]

    B-7

     

    

 

 

[REVERSE OF SECURITY]

 

This Senior Note is
one of a duly authorized issue of securities of the Company (herein called the “Senior Notes”) issued and to be issued
in one or more series under a Senior Debt Securities Indenture, dated as of January 21, 2011 (herein called the “Senior Indenture”),
among the Company, as issuer, the Guarantor, as guarantor, and The Bank of New York Mellon, as trustee (herein called the “Trustee,”
which term includes any successor trustee under the Senior Indenture) as supplemented by the Seventh Supplemental Indenture, dated
as of January [●], 2016, among the Company, the Guarantor and the Trustee (the “Seventh Supplemental Indenture”,
and, together with the Senior Indenture, the “Indenture”) to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Company, the Guarantor, the Trustee and the Holders of the Senior Notes and of the terms upon which the Senior Notes are, and are
to be, authenticated and delivered.

 

This Senior Note is
one of the series designated on the face hereof, initially limited in aggregate principal amount to $[●]. The Company may,
without the consent of the Holders of the Senior Notes, issue additional notes having the same ranking and interest rate, maturity
date, redemption terms and other terms as the Senior Notes except for the price to the public, issue date and first interest payment
date, provided that such additional notes must be fungible with the outstanding Senior Notes for U.S. federal income tax purposes.
Any such Senior Notes, together with this Senior Note, will constitute a single series of securities under the Indenture. The Senior
Notes will initially be issued in the form of one or more global Senior Notes (each, a “Global Senior Note”). Except
as provided in the Indenture, a Global Senior Note shall not be exchangeable for one or more definitive Senior Notes.

 

The Senior Notes of
this series will constitute unsecured and unsubordinated obligations of the Company and the Guarantor, as described herein, and
will rank pari passu without any preference among themselves.

 

The interest rate for
the Senior Notes for the first Floating Rate Interest Period (as defined below) will be LIBOR (as defined below) as determined
on January [●], 2016 plus the Spread. The interest rate for each subsequent Floating Rate Interest Period will be LIBOR as
determined on the applicable Interest Determination Date (as defined below) plus the Spread, in each case calculated on the basis
of a 360-day year and the actual number of days elapsed. The Spread is [●] basis points.

 

The initial Floating
Rate Interest Payment Date (as defined below) will fall on April [●], 2016. Thereafter, interest on the Senior Notes will
be paid quarterly in arrears on January [●], April [●], July [●] and October [●], of each year, commencing
on April [●], 2016, and ending on January [●], 2019 (each, a “Floating Rate Interest Payment Date”). Interest
so payable on any Floating Rate Interest Payment Date shall be paid to the Holder in whose name this Senior Note is registered
on the 15th calendar day immediately preceding the relevant Floating Rate Interest Payment Date (each a “Regular Record Date”).
However, if a Floating Rate Interest Payment Date would fall on a day

 

    B-8

     

    

that is not a Business
Day, as defined in the Indenture, other than the interest payment date that is also the date of maturity, the Floating Rate Interest
Payment Date will be postponed to the next succeeding day that is a business day and interest thereon will continue to accrue,
except that if the business day falls in the next succeeding calendar month, the applicable Floating Rate Interest Payment Date
will be the immediately preceding business day. In each such case, except for the Floating Rate Interest Payment Date falling on
the maturity date, the Floating Rate Interest Periods and the Interest Reset Dates (as defined below) will be adjusted accordingly
to calculate the amount of interest payable on the notes.

 

The interest rate will
be reset on each Floating Rate Interest Payment Date (together with the initial interest reset date, each an “Interest Reset
Date”). However, if any Interest Reset Date would otherwise be a day that is not a business day, that Interest Reset Date
will be postponed to the next succeeding day that is a business day, except that if the business day falls in the next succeeding
calendar month, the applicable Interest Reset Date will be the immediately preceding business day.

 

Interest will be paid
on the Senior Notes to Holders of record of each Senior Note in respect of the principal amount thereof as at the 15th calendar
day prior to the relevant Floating Rate Interest Payment Date. The first interest period will begin on and include January [●],
2016 and will end on and exclude April [●], 2016. Thereafter, the interest period will be the periods from and including
a Floating Rate Interest Payment Date to but excluding the immediately succeeding Floating Rate Interest Payment Date (together
with the first interest period, each a “Floating Rate Interest Period”). However, the final Floating Rate Interest
Period will be the period from and including the Floating Rate Interest Payment Date immediately preceding the Maturity Date to
but excluding the Maturity Date.

 

The calculation agent
will determine LIBOR (as defined below) for each Floating Rate Interest Period other than the first Floating Rate Interest Period
on the second day in which dealings in United States dollars are transacted or, with respect to any future date, are expected to
be transacted in the London interbank market (a “London Banking Day”) prior to the first day of such Floating Rate
Interest Period (an “Interest Determination Date”).

 

“LIBOR,”
with respect to a Floating Rate Interest Period, shall be the offered rate (expressed as a percentage per annum) for deposits of
U.S. dollars having a maturity of three months that appears on the Designated LIBOR Page (as defined below) as of 11:00 a.m., London
time.

 

If no rate appears
on the Designated LIBOR Page, 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 calculation agent, after consultation with us, for
a term of three months and in a Representative Amount. The calculation agent will request that the principal London office of each
of such banks provide a quotation of its rate. If at least

 

    B-9

     

    

two such quotations are
provided, LIBOR for such Floating Rate Interest Period will be the arithmetic mean of such quotations. If fewer than two such quotations
are provided, LIBOR for such Floating Rate Interest Period will be the arithmetic mean of the rates quoted at approximately 11:00
a.m. in the City of New York on such Interest Determination Date by three major banks in New York City, selected by the calculation
agent, after consultation with us, for loans in United States dollars to leading European banks, for a term of three months and
in a Representative Amount. If at least two such quotations are provided, LIBOR for such Floating Rate Interest Period will be
the arithmetic mean of such quotations. If fewer than two quotations are provided, then LIBOR for such Floating Rate Period will
be LIBOR in effect with respect to the immediately preceding Floating Rate Interest Period.

 

“Designated LIBOR
Page” means the Reuters Screen LIBOR01 display page, or any successor page, on Reuters or any successor service (or any such
other service(s) as may be nominated by ICE Benchmark Administration Limited (“IBA”) or its successor or such other
entity assuming the responsibility of IBA or its successor in calculating the London interbank offered rate in the event IBA or
its successor no longer does so for the purpose of displaying London interbank offered rates for U.S. dollar deposits).

 

“Interest Determination
Date” for each Floating Rate Interest Period will be the second London Banking Day preceding the first day of such Floating
Rate Interest Period.

 

“London Banking
Day” is any day in which dealings in United States dollars are transacted or, with respect to any future date, are expected
to be transacted in the London interbank market.

 

“Representative
Amount” means an amount that in the judgment of the calculation agent is representative for a single transaction in US dollars
in such market at such time.

 

All calculations of
the calculation agent, in the absence of manifest error, will be conclusive for all purposes and binding on the Issuer and on the
Holders of the Senior Notes.

 

All percentages resulting
from any of the above calculations will be rounded, if necessary, to the nearest one hundred thousandth of a percentage point,
with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655))
and all dollar amounts used in or resulting from such calculations will be rounded to the nearest cent (with one-half cent being
rounded upwards).

 

The interest rate on
the Senior Notes will in no event be higher than the maximum rate permitted by law.

 

If an Event of Default
with respect to the Senior Notes of this series shall have occurred and be continuing, the Trustee or the Holder or Holders of
not less than 25% in aggregate principal amount of the Outstanding Senior Notes of this series may declare the principal amount
of, and any accrued interest on, all the Senior Notes to be due and

 

    B-10

     

    

payable immediately,
in the manner, with the effect and subject to the conditions provided in the Indenture.

 

If an Event of Default
with respect to the Senior Notes of this series shall have occurred and be continuing, the Trustee may in its discretion proceed
to protect and enforce its rights and the rights of Holders of Senior Notes by such appropriate judicial proceedings as the Trustee
shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement
in the Indenture or in aid of the exercise of any power granted thereon, or to enforce any other proper remedy, including the institution
of proceedings in England or Scotland (but not elsewhere) for the winding up of the Company or the Guarantor, respectively.

 

By acceptance of the
Senior Notes of this Series, the Holder will be deemed to have waived any right of set-off or counterclaim with respect to such
Senior Notes that they might otherwise have against the Company or the Guarantor, whether before or during a winding-up of the
Company or the Guarantor.

 

Amounts to be paid
on the Senior Notes of this Series or under the guarantee will be made without deduction or withholding for, or on account of,
any and all present and future income, stamp and other taxes, levies, imposts, duties, charges or fees, levied, collected, withheld
or assessed by or on behalf of the United Kingdom or any political subdivision or authority thereof or therein having the power
to tax (the “Taxing Jurisdiction”), unless such deduction or withholding is required by law. If at any time a Taxing
Jurisdiction requires the Company or the Guarantor, as the case may be, to make such deduction or withholding, the Company, or
the Guarantor, as the case may be, will pay additional amounts with respect to the principal of, and interest and any other payments
on, the Senior Notes of this series (“Additional Amounts”) that are necessary in order that the net amounts paid to
the Holders, after the deduction or withholding, shall equal the amounts which would have been payable on the Senior Notes if the
deduction or withholding had not been required. However, this will not apply to any such tax, levy, impost, duty, charge
or fee, which would not have been deducted or withheld but for the fact that:

 

(i) the Holder or the
Beneficial Owner of the Senior Note is a domiciliary, national or resident of, or engaging in business or maintaining a permanent
establishment or is physically present in, the Taxing Jurisdiction or otherwise has some connection with the Taxing Jurisdiction
other than the holding or ownership of a Senior Note, or the collection of any payment of (or in respect of) principal of, or interest
or other payments on, any Senior Note or under the guarantee,

 

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

 

(iii) the relevant
Senior Note is presented (where presentation is required) for payment more than 30 days after the date payment became due or was
provided for, whichever is later, except to the extent that the Holder would have been entitled to the

 

    B-11

     

    

Additional Amounts on
presenting the same for payment at the close of that 30 day period,

 

(iv) the Holder or
the Beneficial Owner of the relevant Senior Note or the Beneficial Owner of any payment of (or in respect of) principal of, or
interest or other payments on, the Senior Note failed to comply with a request of the Company or its liquidator or guarantor or
other authorized person addressed to the Holder (x) to provide information concerning the nationality, residence or identity of
the Holder or such Beneficial Owner or (y) to make any declaration or other similar claim to satisfy any requirement, which in
the case of (x) or (y), is required or imposed by a statute, treaty, regulation or administrative practice of the Taxing Jurisdiction
as a precondition to exemption from all or part of the tax, levy, impost, duty, charge or fee,

 

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

 

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

 

(vii) the deduction
or withholding is imposed by reason of any agreement with the U.S. Internal Revenue Service in connection with Sections 1471-1474
of the U.S. Internal Revenue Code and the U.S. Treasury regulations thereunder (“FATCA”), any intergovernmental agreement
between the United States and the United Kingdom or any other jurisdiction with respect to FATCA, or any law, regulation or other
official guidance enacted in any jurisdiction implementing, or relating to, FATCA or any intergovernmental agreement; or

 

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

 

nor shall Additional Amounts be paid with
respect to the principal of, or any interest or other payments on, the Senior Note or under the Guarantee to any Holder who is
a fiduciary or partnership or any person other than the sole Beneficial Owner of such payment to the extent such payment would
be required by the laws of any Taxing Jurisdiction to be included in the income for tax purposes of a beneficiary or partner or
settlor with respect to such fiduciary or a member of such partnership or a Beneficial Owner who would not have been entitled to
such Additional Amounts, had it been the Holder.

 

References herein to
the payment of the principal of or interest or other payments on any Senior Note shall be deemed to include mention of the payment
of Additional Amounts provided for in the foregoing paragraph to the extent that, in such context, Additional Amounts are, were
or would be payable under the foregoing provisions.

 

The Senior Notes of
this series are redeemable, as a whole but not in part, at the option of the Company or the Guarantor, on not less than 30 nor
more than 60 days’

 

    B-12

     

    

notice, on any Floating
Rate Interest Payment Date, at a redemption price equal to 100% of the principal amount, together with accrued but unpaid interest,
in respect of the Senior Notes to the date fixed for redemption, if, at any time, the Company or, if applicable, the Guarantor
shall determine that as a result of a change in or amendment to the laws or regulations of the Taxing Jurisdiction (including any
treaty to which such Taxing Jurisdiction is a party), or any change in the application or interpretation of such laws or regulations
(including a decision of any court or tribunal) which change or amendment becomes effective on or after January [●], 2016:

 

(a) in making payment
under the Senior Notes the Company (or, if applicable, the Guarantor) has or will or would on the next Floating Rate Interest Payment
Date become obligated to pay Additional Amounts;

 

(b) the payment of
interest on the next Floating Rate Interest Payment Date in respect of any of the Senior Notes would be treated as a “distribution”
within the meaning of Chapter 2 of Part 23 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory modification
or re-enactment thereof for the time being); or

 

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

 

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

 

If the Company (or,
if applicable, the Guarantor) elects to redeem the Senior Notes of this series, the Senior Notes will cease to accrue interest
from the date of redemption, provided the redemption price has been paid in accordance with the Indenture.

 

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

 

Notwithstanding any
other agreements, arrangements, or understandings between us and any Holder or Beneficial Owner of this Senior Note, by purchasing
or acquiring this Senior Note, each Holder (including each Beneficial Owner) of this Senior Note

 

    B-13

     

    

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

 

By purchasing or acquiring
the Senior Notes, each Holder and Beneficial Owner of the Securities:

 

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

 

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

 

(iii) acknowledges
and agrees that, upon the exercise of any U.K. bail-in power by the relevant U.K. resolution authority, (a) the Trustee shall not
be required to take any further directions from Holders of the Senior Notes under Section 5.12 of the Senior Indenture, and (b)
neither the Senior Indenture nor the Seventh Supplemental Indenture shall impose any duties upon the Trustee whatsoever with respect
to the exercise of any U.K. bail-in power by the relevant U.K. resolution authority. Notwithstanding the foregoing, if, following
the completion of the exercise of the U.K. bail-in power by the relevant U.K. resolution authority, the Senior Notes remain outstanding
(for example, if the exercise of the U.K. bail-in power results in only a partial write-down of the principal of the Senior Notes),
then the Trustee’s duties under the Indenture shall remain applicable with respect to the Senior Notes following such completion
to the extent that the Company and the Trustee shall agree pursuant to a supplemental indenture or an amendment to the Seventh
Supplemental Indenture.

 

    B-14

     

    

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

 

By purchasing or acquiring
the Senior Notes, each Holder and Beneficial Owner shall be deemed to have (i) consented to the exercise of any U.K. bail-in power
as it may be imposed without any prior notice by the relevant U.K. resolution authority of its decision to exercise such power
with respect to the Senior Notes and (ii) authorized, directed and requested DTC and any direct participant in DTC or other intermediary
through which it holds such Senior Notes to take any and all necessary action, if required, to implement the exercise of any U.K.
bail-in power with respect to the Senior Notes as it may be imposed, without any further action or direction on the part of such
Holder or Beneficial Owner.

 

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

 

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

 

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and the Guarantor and the rights of the Holders of the Senior Notes of each series to be affected thereby by the Company and the
Trustee with the consent of the Holders of not less than a majority in principal amount of the Senior Notes at the time outstanding
of each such series. The Indenture also contains provisions permitting the Holders of a majority in aggregate principal amount
of the outstanding Senior Notes of each series, on behalf of the Holders of all Senior Notes of such series, to waive compliance
by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the Holder of this Senior Note shall be conclusive and binding upon such Holder and upon all future Holders
of this Senior Note and of any Senior Note issued in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Senior Note.

 

No reference herein
to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and

 

    B-15

     

    

unconditional, to pay,
if and when due and payable, the principal of (and premium, if any) and interest on, this Senior Note at the times, place and rate,
and in the coin or currency, herein prescribed.

 

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

 

No reference herein
to the Indenture and no provision of this Senior Note or of the Indenture shall alter or impair the right of the Holder of this
Senior Note, which is absolute and unconditional, to receive payment of the principal of (and premium, if any) and interest on,
this Senior Note when due and payable in accordance with the provisions of this Senior Note and the Indenture.

 

This Senior Note will
be governed by the laws of the State of New York.

 

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

 

    B-16Exhibit 10.1

 

EXECUTION VERSION

 

CONTINGENT VALUE RIGHTS AGREEMENT

 

By and between

 

SHIRE PLC

 

and

 

AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC

 

as Rights Agent

 

Dated as of January 22, 2015

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Article I
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Definitions
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
1.1
    	
 
    	
Definitions
    	
 
    	
2
    
	
1.2
    	
 
    	
Additional Definitions
    	
 
    	
4
    
	
1.3
    	
 
    	
Other Definitional Provisions
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Article II
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Contingent Value Rights
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.1
    	
 
    	
CVRs
    	
 
    	
5
    
	
2.2
    	
 
    	
Nontransferable
    	
 
    	
6
    
	
2.3
    	
 
    	
No Certificate; Registration; Registration of   Transfer; Change of Address
    	
 
    	
6
    
	
2.4
    	
 
    	
Payment Procedures
    	
 
    	
7
    
	
2.5
    	
 
    	
No Voting, Dividends or Interest; No Equity or   Ownership Interest in Parent Holdco
    	
 
    	
9
    
	
2.6
    	
 
    	
Enforcement of Rights of Holders
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Article III
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Rights Agent
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.1
    	
 
    	
Certain Duties and Responsibilities
    	
 
    	
9
    
	
3.2
    	
 
    	
Certain Rights of the Rights Agent
    	
 
    	
9
    
	
3.3
    	
 
    	
Resignation and Removal; Appointment of Successor
    	
 
    	
11
    
	
3.4
    	
 
    	
Acceptance of Appointment by Successor
    	
 
    	
11
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Article IV
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Covenants
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.1
    	
 
    	
List of Holders
    	
 
    	
12
    
	
4.2
    	
 
    	
Payment of Milestone Payment
    	
 
    	
12
    
	
4.3
    	
 
    	
Assignment Transactions
    	
 
    	
12
    
	
4.4
    	
 
    	
Diligent Efforts
    	
 
    	
13
    

 

i

 

	
 
    	
 
    	
Article V
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Amendments
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.1
    	
 
    	
Amendments without Consent of Holders
    	
 
    	
13
    
	
5.2
    	
 
    	
Amendments with Consent of Holders
    	
 
    	
14
    
	
5.3
    	
 
    	
Execution of Amendments
    	
 
    	
14
    
	
5.4
    	
 
    	
Effect of Amendments
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Article VI
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Miscellaneous and   General
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.1
    	
 
    	
Termination
    	
 
    	
14
    
	
6.2
    	
 
    	
Notices to the Rights Agent and Parent Holdco
    	
 
    	
15
    
	
6.3
    	
 
    	
Notice to Holders
    	
 
    	
16
    
	
6.4
    	
 
    	
Counterparts
    	
 
    	
16
    
	
6.5
    	
 
    	
Governing Law; Jurisdiction; WAIVER OF JURY TRIAL
    	
 
    	
16
    
	
6.6
    	
 
    	
Other Remedies
    	
 
    	
18
    
	
6.7
    	
 
    	
Entire Agreement
    	
 
    	
18
    
	
6.8
    	
 
    	
Third-Party Beneficiaries; Action by Acting Holders
    	
 
    	
18
    
	
6.9
    	
 
    	
Severability
    	
 
    	
19
    
	
6.10
    	
 
    	
Assignment
    	
 
    	
19
    
	
6.11
    	
 
    	
Benefits of Agreement
    	
 
    	
19
    
	
6.12
    	
 
    	
Legal Holidays
    	
 
    	
19
    
	
6.13
    	
 
    	
Interpretation; Construction
    	
 
    	
19
    

 

ii

 

CONTINGENT VALUE RIGHTS AGREEMENT

 

CONTINGENT VALUE RIGHTS AGREEMENT, dated as of January 22, 2015 (this “Agreement”), by and between Shire plc, a company incorporated in Jersey (“Parent Holdco”), and American Stock Transfer & Trust Company, LLC, a New York limited liability trust company, as rights agent (the “Rights Agent”), in favor of each person who from time to time holds one or more contingent value rights (the “CVRs”) to receive cash payments in the amounts and subject to the terms and conditions set forth herein.

 

RECITALS

 

WHEREAS, this Agreement is entered into pursuant to the Agreement and Plan of Merger, dated November 2, 2015 (the “Merger Agreement”), by and among Dyax Corp., a Delaware corporation (the “Company”), Shire Pharmaceuticals International, a company incorporated in Ireland (“Parent”), Parquet Courts, Inc., a Delaware corporation wholly owned by Parent (“Merger Sub”), and Parent Holdco, pursuant to which Merger Sub will merge with and into the Company with the Company surviving (the “Merger”), on the terms and subject to the conditions set forth therein;

 

WHEREAS, pursuant to the Merger Agreement, Parent Holdco has agreed to provide to the holders of shares of common stock, par value $0.01 per share of the Company (the “Shares”), holders of restricted stock units denominated in Shares (“RSU Holders”) and holders of stock options to purchase Shares (“Option Holders”) the right to receive the Milestone Payment (as defined below) during the Milestone Period (as defined below); and

 

WHEREAS, pursuant to this Agreement, the potential amount payable per CVR is $4.00 in cash, without interest.

 

NOW, THEREFORE, in consideration of the foregoing and the consummation of the transactions referred to above, Parent Holdco and the Rights Agent agree, for the equal and proportionate benefit of all Holders (as hereinafter defined), as follows:

 

 

ARTICLE I

 

Definitions

 

1.1          Definitions.  Capitalized terms used in this Agreement and not otherwise defined shall have the meanings assigned to them in the Merger Agreement.  For purposes of this Agreement, the following terms shall have the following meanings:

 

(a)           “Acting Holders” means, at the time of determination, Holders of at least thirty-five percent (35%) of the outstanding CVRs as set forth in the CVR Register.

 

“Assignment Transaction” means any transaction (including a sale of assets, spin-off, split-off or licensing transaction), other than a Change in Control, pursuant to which rights in and to the Product are sold, licensed, assigned or transferred to or acquired by any Person other than by Parent Holdco or any of Parent Holdco’s Subsidiaries.  For purposes of clarification, an “Assignment Transaction” shall not apply to sales of the Product made by Parent Holdco or its Affiliates or ordinary course licensing arrangements between Parent Holdco and its Affiliates, on the one hand, and third party licensees, distributors and contract manufacturers on the other hand, entered into in the ordinary course of business for purposes of developing, manufacturing, distributing and selling the Product.

 

“Board of Directors” means the board of directors of Parent Holdco or any other body performing similar functions, or any duly authorized committee of that board.

 

“Board Resolution” means a copy of a resolution of the Board of Directors that has been certified in writing by the chairman of the Board of Directors, the chief executive officer, chief financial officer, executive vice president, company secretary or a deputy company secretary of Parent Holdco to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, which has been delivered to the Rights Agent.

 

“Business Day” means any day other than a Saturday or Sunday or a day on which commercial banks are authorized or required by Law or executive order to be closed in New York City.

 

“Change in Control” means (a) a merger or consolidation involving Parent Holdco in which Parent Holdco is not the surviving entity, (b) any transaction involving Parent Holdco in which Parent Holdco is the surviving entity but in which the stockholders of Parent Holdco immediately prior to such transaction own less than fifty percent (50%) of Parent Holdco’s voting power immediately after the transaction or (c) any other transaction pursuant to which rights in and to the Product are transferred to or acquired by any Person, by operation of law, other than by Parent Holdco or any of Parent Holdco’s Subsidiaries.

 

2

 

“Diligent Efforts” means, with respect to the Product, using such efforts and resources normally used by Persons of comparable size within the pharmaceutical industry for the development and seeking of regulatory approval for a pharmaceutical product having similar market potential as the Product at a similar stage of its development or product life, taking into account all relevant factors, including issues of market exclusivity (including patent coverage, regulatory and other exclusivity), product profile, including efficacy, safety, tolerability, methods of administration and convenience, product labeling (including anticipated product labeling), other product candidates, the competitiveness of alternative products in the marketplace or under development (other than any such product owned or controlled by Parent Holdco or any Affiliate or that Parent Holdco or any Affiliate is discovering, researching, developing, manufacturing or commercializing along with one or more collaborators), the launch or sales of a generic or biosimilar product, the regulatory structure involved, the regulatory environment  and the expected profitability of the applicable product (including development costs, pricing and reimbursement, cost of goods and all other costs associated with the applicable product), and relevant technical, commercial, financial, legal, scientific and medical factors. For the avoidance of doubt, Section 4.4 shall apply to Parent Holdco and its successors and assigns.

 

“Holder” means a Person in whose name a CVR is registered in the CVR Register at the applicable time.

 

“Majority Holders” means, at the time of determination, Holders of at least a majority of the outstanding CVRs.

 

“Milestone” will be deemed to occur upon Parent Holdco’s or its Affiliates’ (or their respective successors or assigns) receipt of approval by the FDA of a biologic license application which approval grants Parent Holdco or its Affiliates (or their respective successors or assigns) the right to market and sell the Product in the United States in accordance with applicable Law for the prevention of attacks of type 1 and type 2 hereditary angioedema in patients with type 1 or type 2 hereditary angioedema, as evidenced by the publication of such approval by the FDA; provided that such approval (a) does not require the inclusion of a “boxed warning” (as defined in 21 CFR §201.57(c)(1)) in the product labeling, (b) does not require the implementation of a risk evaluation and mitigation strategy with elements to assure safe use required by the FDA under the authority granted to it in 21 U.S.C. § 355-1 other than one whose elements are limited to the distribution of educational materials and (c) is not granted by the FDA under subpart E of the Federal Drug and Cosmetic Act (21 CFR § 601); provided, further, for the avoidance of doubt, such approval may contain (x) a voluntary commitment to conduct a post-approval study or clinical trial or (y) a post-approval study or clinical trial required pursuant to 21 USC §355(o).

 

“Milestone Payment” means $4.00 per CVR.

 

3

 

“Milestone Payment Date” means the date that is selected by Parent Holdco not more than ten (10) Business Days following the date of the achievement of the Milestone.

 

“Milestone Period” means the period commencing as of the date of this Agreement and ending 11:59 p.m., Eastern time, on December 31, 2019.

 

“Officer’s Certificate” means a certificate signed by the chief executive officer, chief financial officer, an executive vice president, in each case of Parent Holdco, in his or her capacity as such an officer, and delivered to the Rights Agent or any other person authorized to act on behalf of Parent Holdco.

 

“Opinion of Counsel” means a written opinion of counsel, who may be counsel for Parent Holdco or its Subsidiaries.

 

“Party” shall mean the Rights Agent, Parent Holdco and/or the Holder(s), as applicable.

 

“Permitted Transfer” means a transfer of CVRs (a) upon death of a Holder by will or intestacy; (b)  by instrument to an inter vivos or testamentary trust in which the CVRs are to be passed to beneficiaries upon the death of the trustee, (c) pursuant to a court order; (d) by operation of law (including by consolidation or merger) or without consideration in connection with the dissolution, liquidation or termination of any corporation, limited liability company, partnership or other entity; or (e) in the case of CVRs payable to a nominee, from a nominee to a beneficial owner (and, if applicable, through an intermediary) or from such nominee to another nominee for the same beneficial owner, in each case to the extent allowable by The Depository Trust Company.

 

“Product” means the compound known as DX-2930, having the heavy chain and light chain as set forth in Appendix A.

 

“Rights Agent” means the Rights Agent named in the first paragraph of this Agreement, until a successor Rights Agent becomes such pursuant to the applicable provisions of this Agreement, and thereafter “Rights Agent” shall mean such successor Rights Agent.

 

1.2                               Additional Definitions.  For purposes of this Agreement, each of the following terms shall have the meaning specified in the Section set forth opposite to such term:

 

	
Term
    	
 
    	
Section
    
	
Acquiror
    	
 
    	
4.3(a)(i)
    
	
Aggregate Milestone Payment
    	
 
    	
2.4(a)
    
	
Agreement
    	
 
    	
Preamble
    
	
Company
    	
 
    	
Recitals
    

 

4

 

	
CVR
    	
 
    	
Preamble
    
	
CVR Register
    	
 
    	
2.3(b)
    
	
Equity Awards Schedule
    	
 
    	
2.3(b)
    
	
Merger
    	
 
    	
Recitals
    
	
Merger Agreement
    	
 
    	
Recitals
    
	
Merger Sub
    	
 
    	
Recitals
    
	
Milestone Achievement Certificate
    	
 
    	
2.4(a)
    
	
Option Holders
    	
 
    	
Recitals
    
	
Parent
    	
 
    	
Recitals
    
	
Parent Holdco
    	
 
    	
Preamble
    
	
RSU Holders
    	
 
    	
Recitals
    
	
Shares
    	
 
    	
Recitals
    

 

1.3                               Other Definitional Provisions.  Unless the context expressly otherwise requires:

 

(a)                                 the words “hereof,” “hereto,” “herein,” and “hereunder,” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;

 

(b)                                 the terms defined in the singular have a comparable meaning when used in the plural, and vice versa;

 

(c)                                  the terms “Dollars” and “$” mean United States Dollars;

 

(d)                                 references herein to a specific Article, Section, or Annex shall refer, respectively, to Articles and Sections of, and Annexes to, this Agreement;

 

(e)                                  wherever the word “include,” “includes,” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”;

 

(f)                                   the term “or” will not be deemed to be exclusive;

 

(g)                                  references herein to any gender include the other gender; and

 

(h)                                 any Law defined or referred to herein will refer to such Law as amended and the rules and regulations promulgated thereunder.

 

ARTICLE II

 

Contingent Value Rights

 

2.1                               CVRs.  The CVRs represent the rights of Holders to receive contingent cash payments pursuant to this Agreement.  The initial Holders shall be the (i) holders of Shares other than Excluded Shares immediately prior to the Effective Time

 

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and (ii) holders of Company Options and Company RSUs immediately prior to the Effective Time whose Company Options and Company RSUs are converted into the right to receive the Per Share Merger Consideration pursuant to Article IV of the Merger Agreement.

 

2.2                               Nontransferable.  The CVRs may not be sold, assigned, transferred, pledged, encumbered or in any other manner transferred or disposed of, in whole or in part, other than through a Permitted Transfer.  Any attempted transfer, in whole or in part, that is not a Permitted Transfer, will be void ab initio and of no effect.

 

2.3                               No Certificate; Registration; Registration of Transfer; Change of Address.

 

(a)                                 The CVRs shall not be evidenced by a certificate or other instrument.

 

(b)                                 The Rights Agent shall keep a register (the “CVR Register”) for the purpose of registering CVRs and transfers of CVRs as herein provided.  The CVRs shall, in the case of the holders of Shares immediately prior to the Effective Time, other than the Excluded Shares, be registered in the names and addresses of the holder as set forth in the form Parent Holdco furnishes or causes to be furnished to the Rights Agent pursuant to Section 4.1, and in a denomination equal to the number of Shares converted into the right to receive the Per Share Merger Consideration.  The CVR Register will initially show one position for Cede & Co representing all Shares held by DTC on behalf of street holders held by such holders as of immediately prior to the Effective Time.  In the case of RSU Holders and Option Holders, the CVRs shall be registered in the names and addresses of such RSU Holder or Option Holder, as applicable, and in a denomination equal to the number of Shares subject to the outstanding restricted stock units held by such RSU Holder immediately prior to the Effective Time or the number of Shares underlying the outstanding stock options held by such Option Holder immediately prior to the Effective Time, as applicable, and, in each case, as set forth in a schedule delivered by the Company to Parent Holdco (the “Equity Awards Schedule”).  The Rights Agent hereby acknowledges the restrictions on transfer contained in Section 2.2 and agrees not to register a transfer which does not comply with Section 2.2.

 

(c)                                  Subject to the restrictions on transferability set forth in Section 2.2, every request made to transfer a CVR must be in writing and accompanied by a written instrument of transfer and other requested documentation in form reasonably satisfactory to the Rights Agent pursuant to its customary policies and guidelines, duly executed by the Holder thereof, the Holder’s attorney duly authorized in writing, the Holder’s personal representative or the Holder’s survivor, and setting forth in reasonable detail the circumstances relating to the transfer.  Upon receipt of such written notice, the Rights Agent shall, subject to its reasonable determination that the transfer instrument is in proper form and the transfer otherwise complies with the other terms and conditions of this Agreement (including the provisions of Section 2.2), register the transfer of the

 

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CVRs in the CVR Register.  Any transfer of CVRs will be without charge (other than the cost of any Tax) to the applicable Holder.  The Rights Agent shall have no duty or obligation to take any action under any section of this Agreement that requires the payment by a Holder of a CVR of applicable Taxes or charges unless and until the Rights Agent is satisfied that all such Taxes or charges have been paid.  All duly transferred CVRs registered in the CVR Register shall be the valid obligations of Parent Holdco and shall entitle the transferee to the same benefits and rights under this Agreement as those held immediately prior to the transfer by the transferor.  No transfer of a CVR shall be valid until registered in the CVR Register.

 

(d)                                 A Holder may make a written request to the Rights Agent to change such Holder’s address of record in the CVR Register.  The written request must be duly executed by the Holder.  Upon receipt of such written notice, the Rights Agent shall, subject to its reasonable determination that the written notice is in proper form, promptly record the change of address in the CVR Register.

 

2.4                               Payment Procedures.

 

(a)                                 If the Milestone occurs at any time prior to the expiration of the Milestone Period, then, on or prior to the Milestone Payment Date, Parent Holdco will deliver or cause to be delivered to the Rights Agent (i) a certificate (the “Milestone Achievement Certificate”) certifying the date of the satisfaction of the Milestone and that the Holders are entitled to receive the Milestone Payment and (ii) a wire transfer of immediately available funds to an account designated by the Rights Agent, in the aggregate amount equal to the number of CVRs (as reflected in the CVR Register) then outstanding multiplied by the amount of the Milestone Payment (the “Aggregate Milestone Payment”). After receipt of the wire transfer described in the foregoing sentence, the Rights Agent will promptly (and in any event, within five (5) Business Days) pay (x) by one lump sum wire payment to DTC for any Holder who is a former street name holder of Shares and (y) for all other Holders, by check mailed, first-class postage prepaid, to the address of each Holder set forth in the CVR Register or by other method of delivery as specified by the applicable Holder in writing to the Rights Agent (such amount in (x) and (y) together, an amount in cash equal to Aggregate Milestone Payment). The Rights Agent shall hold the Aggregate Milestone Payment in a non-interest bearing account until such payment is made in accordance with the foregoing sentence.  Notwithstanding the foregoing, in no event shall Parent Holdco be required to pay the Milestone Payment more than once and Parent Holdco shall not be required to pay the Milestone Payment if the Milestone occurs after the expiration of the Milestone Period.

 

(b)                                 Parent Holdco or the Rights Agent shall be entitled to deduct or withhold from the Milestone Payment, if payable, such amounts as may be required to be deducted or withheld with respect to the Milestone Payment or CVR under the Code, and the rules and regulations thereunder, or any other applicable provision of state, local or foreign Law relating to Taxes, as may be reasonably determined by Parent Holdco or the

 

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Rights Agent.  Prior to making any such Tax withholdings or causing any such Tax withholdings to be made with respect to any Holder, the Rights Agent shall, to the extent practicable, provide notice to the Holder of such potential withholding and, if applicable, a reasonable opportunity for the Holder to provide any necessary Tax forms in order to reduce or eliminate such withholding amounts.  To the extent such amounts are so deducted or withheld, such amounts shall be treated for all purposes under this Agreement as having been paid to the person to whom such amounts would otherwise have been paid, and prior to the fifteenth (15th) day of February in the year following any payment of such Taxes by Parent Holdco or the Rights Agent, the Rights Agent shall deliver to the person to whom such amounts would otherwise have been paid the original Form 1099 or other reasonably acceptable evidence of such withholding.

 

(c)                                  Any portion of any Milestone Payment that remains undistributed to the Holders six (6) months after the date of the Milestone Achievement Certificate shall be delivered by the Rights Agent to Parent Holdco, upon demand, and any Holder shall thereafter look only to Parent Holdco for payment of such Milestone Payment, without interest, but such Holder shall have no greater rights against Parent Holdco than those accorded to general unsecured creditors of Parent Holdco under applicable Law.

 

(d)                                 Neither Parent Holdco nor the Rights Agent shall be liable to any person in respect of any Milestone Payment delivered to a public official in compliance with any applicable state, federal or other abandoned property, escheat or similar Law.  If, despite Parent Holdco’s and/or the Rights Agent’s reasonable best efforts to deliver a Milestone Payment to the applicable Holder, such Milestone Payment has not been paid prior to the date on which such Milestone Payment would otherwise escheat to or become the property of any Governmental Entity, any such Milestone Payment shall, to the extent permitted by applicable Law, immediately prior to such time become the property of Parent Holdco, free and clear of all claims or interest of any person previously entitled thereto.  In addition to and not in limitation of any other indemnity obligation herein, Parent Holdco agrees to indemnify and hold harmless the Rights Agent with respect to any liability, penalty, cost or expense the Rights Agent may incur or be subject to in connection with transferring such property to Parent Holdco.

 

(e)                                  Except to the extent any portion of any Milestone Payment is required to be treated as imputed interest pursuant to applicable Law, the Parties agree to treat the CVRs and the Milestone Payment received with respect to the Shares pursuant to the Merger Agreement for all U.S. federal and applicable state and local income Tax purposes as additional consideration for the Shares and none of the Parties will take any position to the contrary on any U.S. federal and applicable state and local income Tax Return or for other U.S. federal and applicable state and local income Tax purposes except as required by applicable Law.

 

(f)                                   The Parties agree, to the extent consistent with applicable law, to treat the payments from the CVRs received with respect to the Company RSUs and

 

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Company Options for all U.S. federal and applicable state and local income Tax purposes as compensation payments (and not to treat the CVR as a payment itself).

 

2.5                               No Voting, Dividends or Interest; No Equity or Ownership Interest in Parent Holdco.

 

(a)                                 The CVRs shall not have any voting or dividend rights, and interest shall not accrue on any amounts payable on the CVRs to any Holder.

 

The CVRs shall not represent any equity or ownership interest in Parent Holdco or in any constituent company to the Merger or any of their respective Affiliates.

 

2.6                               Enforcement of Rights of Holders  Any actions seeking the enforcement of the rights of Holders hereunder may be brought either by the Rights Agent or the Acting Holders.

 

ARTICLE III

 

The Rights Agent

 

3.1                               Certain Duties and Responsibilities.  The Rights Agent shall not have any liability for any actions taken, suffered or omitted to be taken in connection with this Agreement, except to the extent of its gross negligence, bad faith or willful or intentional misconduct.

 

3.2                               Certain Rights of the Rights Agent.  The Rights Agent undertakes to perform such duties and only such duties as are specifically set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Rights Agent.  In addition:

 

(a)                                 the Rights Agent may rely and shall be protected and held harmless by Parent Holdco in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order or other paper or document believed by it in good faith to be genuine and to have been signed or presented by the proper Party or Parties;

 

(b)                                 whenever the Rights Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Rights Agent may rely upon an Officer’s Certificate, which certificate shall be full authorization and protection to the Rights Agent, and the Rights Agent shall, in the absence of bad faith on its part, incur no liability and be held harmless by Parent Holdco for or in respect of any action taken, suffered or omitted to be taken by it under the provisions of this Agreement in good faith reliance upon such certificate;

 

(c)                                  the Rights Agent may engage and consult with counsel of its selection and the written advice of such counsel or any opinion of counsel shall be full

 

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and complete authorization and protection, and shall be held harmless by Parent Holdco in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

 

(d)                                 the permissive rights of the Rights Agent to do things enumerated in this Agreement shall not be construed as a duty;

 

(e)                                  the Rights Agent shall not be required to give any note or surety in respect of the execution of such powers;

 

(f)                                   the Rights Agent shall not be liable for or by reason of, and shall be held harmless by Parent Holdco with respect to any of the statements of fact or recitals contained in this Agreement or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by Parent Holdco only;

 

(g)                                  the Rights Agent shall have no liability and shall be held harmless by Parent Holdco in respect of the validity of this Agreement or the execution and delivery hereof (except the due execution and delivery hereof by the Rights Agent and the enforceability of this Agreement against the Rights Agent assuming the due execution and delivery hereof by Parent Holdco), nor shall it be responsible for any breach by Parent Holdco of any covenant or condition contained in this Agreement;

 

(h)                                 Parent Holdco agrees to indemnify the Rights Agent for, and hold the Rights Agent harmless against, any loss, liability, claim, demand, suit or expense arising out of or in connection with the Rights Agent’s duties under this Agreement, including the reasonable and documented out-of-pocket costs and expenses of defending the Rights Agent against any claim, charge, demand, suit or loss incurred without negligence, bad faith or willful or intentional misconduct;

 

(i)                                     the Rights Agent shall not be liable for consequential losses or damages under any provision of this Agreement or for any consequential damages arising out of any act or failure to act hereunder in the absence of gross negligence, bad faith or willful or intentional misconduct on its part;

 

(j)                                    Parent Holdco agrees (i) to pay the fees and expenses of the Rights Agent in connection with this Agreement as agreed upon in writing by the Rights Agent and Parent Holdco on or prior to the date hereof, and (ii) to reimburse the Rights Agent for all Taxes other than withholding Taxes owed by Holders and governmental charges, reasonable out-of-pocket expenses and other charges of any kind and nature incurred by the Rights Agent in the execution of this Agreement (other than Taxes imposed on or measured by the Rights Agent’s net income and franchise or similar Taxes imposed on it (in lieu of net income Taxes)).  The Rights Agent shall also be entitled to reimbursement from Parent Holdco for all reasonable and documented out-of-pocket expenses paid or incurred by it in connection with the administration by the Rights Agent of its duties hereunder; and

 

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(k)                                 No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if there shall be reasonable grounds for believing that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it.

 

3.3                               Resignation and Removal; Appointment of Successor.

 

(a)                                 The Rights Agent may resign at any time by giving written notice thereof to Parent Holdco specifying a date when such resignation shall take effect, which notice shall be sent at least thirty (30) days prior to the date so specified, but in no event shall such resignation become effective until a successor Rights Agent has been appointed.  Parent Holdco has the right to remove the Rights Agent at any time by a Board Resolution specifying a date when such removal shall take effect, but no such removal shall become effective until a successor Rights Agent has been appointed.  Notice of such removal shall be given by Parent Holdco to the Rights Agent, which notice shall be sent at least thirty (30) days prior to the date so specified.

 

(b)                                 If the Rights Agent provides notice of its intent to resign, is removed or becomes incapable of acting, Parent Holdco, by a Board Resolution, shall, as soon as is reasonably possible, appoint a qualified successor Rights Agent who shall be a stock transfer agent of national reputation or the corporate trust department of a commercial bank.  The successor Rights Agent so appointed shall, forthwith upon its acceptance of such appointment in accordance with Section 3.4, become the successor Rights Agent.

 

(c)                                  Parent Holdco shall give notice of each resignation and each removal of a Rights Agent and each appointment of a successor Rights Agent by mailing written notice of such event by first-class mail to the Holders as their names and addresses appear in the CVR Register.  Each notice shall include the name and address of the successor Rights Agent.  If Parent Holdco fails to send such notice within ten (10) Business Days after acceptance of appointment by a successor Rights Agent, the successor Rights Agent shall cause the notice to be mailed at the expense of Parent Holdco.

 

(d)                                 The Rights Agent will cooperate with Parent Holdco and any successor Rights Agent in connection with the transition of the duties and responsibilities of the Rights Agent to the successor Rights Agent, including transferring the CVR Register to the successor Rights Agent.

 

3.4                               Acceptance of Appointment by Successor.  Every successor Rights Agent appointed hereunder shall execute, acknowledge and deliver to Parent Holdco and to the retiring Rights Agent an instrument accepting such appointment and a counterpart of this Agreement, and thereupon such successor Rights Agent, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Rights Agent.  On request of Parent Holdco or the successor Rights Agent,

 

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the retiring Rights Agent shall execute and deliver an instrument transferring to the successor Rights Agent all the rights, powers and trusts of the retiring Rights Agent.

 

ARTICLE IV

 

Covenants

 

4.1                               List of Holders.  Parent Holdco shall furnish or cause to be furnished to the Rights Agent, promptly after the Effective Time and in no event later than ten (10) Business Days following the Effective Time, in such form as Parent Holdco receives from the Company’s transfer agent (or other agent performing similar services for the Company), the names and addresses of the Holders and, with respect to RSU Holders and Option Holders, in such form as set forth in the Equity Awards Schedule.

 

4.2                               Payment of Milestone Payment.  Parent Holdco will duly deposit or cause to be deposited with the Rights Agent, on or prior to the Milestone Payment Date, the Milestone Payment to be made to the Holders in accordance with the terms of this Agreement.  Such amounts shall be considered paid on the Milestone Payment Date if on such date the Rights Agent has received in accordance with this Agreement money sufficient to pay all such amounts then due.

 

4.3                               Assignment Transactions.

 

(a)                                 Parent Holdco shall not, and shall cause its Affiliates, including the Surviving Corporation, not to, consummate any Assignment Transaction in which material commercialization rights to the Product in the U.S. or the obligations set forth in Section 4.4 of this Agreement are transferred other than to an Affiliate, unless (i) the acquiring Person (each such Person, an “Acquiror”) is either (x) one of the top thirty (30) pharmaceutical companies, as determined based on worldwide annual revenue, or (y) a pharmaceutical or biotechnology company with a regulatory and scientific infrastructure comparable to that used by Parent Holdco to pursue the Milestone for the Product at such time and (ii) Parent Holdco has delivered to the Rights Agent an Officer’s Certificate  and Opinion of Counsel stating that such condition precedent has been complied with.  In the event of the consummation of an Assignment Transaction permitted by this Section 4.3(a) in which the Assignee assumes all of Parent Holdco’s obligations hereunder, Parent Holdco may elect to be released from any and all obligations hereunder only if the Acquiror in connection with such an Assignment Transaction expressly assumes, by an assumption agreement, executed and delivered to the Rights Agent, in form attached as Annex A, the due and punctual payment of any Aggregate Milestone Payment and the performance or observance of every covenant of this Agreement not yet performed or observed on the part of Parent Holdco to be performed or observed.

 

(b)                                 Notwithstanding Section 4.3(a), Parent Holdco may, in its sole discretion and without the consent of any other party, consummate any Change in Control.

 

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4.4                               Diligent Efforts.  During the Milestone Period, Parent Holdco (and its successors and assigns) shall, and shall cause its (and their) Subsidiaries to, use Diligent Efforts to achieve the Milestone prior to the end of the Milestone Period and as promptly as practicable following the Effective Time.

 

ARTICLE V

 

Amendments

 

5.1                               Amendments without Consent of Holders.

 

(a)                                 Without the consent of any Holders or the Rights Agent, Parent Holdco, when authorized by a Board Resolution, at any time and from time to time, may enter into one or more amendments hereto, for any of the following purposes:

 

(i)                                     to evidence the succession of another Person as a successor Rights Agent and the assumption by any such successor of the covenants and obligations of the Rights Agent herein;

 

(ii)                                  to add to the covenants of Parent Holdco such further covenants, restrictions, conditions or provisions as Parent Holdco shall consider to be for the protection of the Holders, provided that, in each case, such provisions do not adversely affect the interests of the Holders;

 

(iii)                               to cure any ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Agreement, provided that, in each case, such provisions do not materially adversely affect the interests of the Holders;

 

(iv)                              as may be necessary or appropriate to ensure that the CVRs are not subject to registration under the Securities Act, the Exchange Act or any applicable state securities or “blue sky” laws, provided that, such amendments do not adversely affect the interests of the Holders;

 

(v)                                 to reduce the number of CVRs, in the event any Holder agrees to renounce such Holder’s rights under this Agreement in accordance with Section 6.11;

 

(vi)                              subject to Section 4.3, to evidence the succession of another Person to Parent Holdco and the assumption by any such successor of the covenants of Parent Holdco contained herein;

 

(vii)                           to evidence the assignment of this Agreement by Parent Holdco as provided in Section 4.3; or

 

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(viii)                        any other amendment to this Agreement that would provide any additional rights or benefits to the Holders or that does not adversely affect the legal rights under this Agreement of any such Holder.

 

(b)                                 Promptly after the execution by Parent Holdco and the Rights Agent of any amendment pursuant to the provisions of this Section 5.1, Parent Holdco shall mail (or cause the Rights Agent to mail) a notice thereof by first class mail to the Holders at their addresses as they appear on the CVR Register, setting forth such amendment.

 

5.2                               Amendments with Consent of Holders.

 

(a)                                 Subject to Section 5.1 (which amendments pursuant to Section 5.1 may be made without the consent of the Holders or the Rights Agent), with the prior consent of Majority Holders, whether evidenced in writing or taken at a meeting of the Holders, Parent Holdco, when authorized by a Board Resolution, and the Rights Agent may enter into one or more amendments hereto for the purpose of adding, eliminating or changing any provisions of this Agreement, even if such addition, elimination or change is materially adverse to the interest of the Holders.

 

(b)                                 Promptly after the execution by Parent Holdco and the Rights Agent of any amendment pursuant to the provisions of this Section 5.2, Parent Holdco shall mail (or cause the Rights Agent to mail) a notice thereof by first class mail to the Holders at their addresses as they appear on the CVR Register, setting forth such amendment.

 

5.3                               Execution of Amendments.  In executing any amendment permitted by this Article V, the Rights Agent shall be entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement.  The Rights Agent may, but is not obligated to, enter into any such amendment that affects the Rights Agent’s own rights, privileges, covenants or duties under this Agreement or otherwise.

 

5.4                               Effect of Amendments.  Upon the execution of any amendment under this Article V, this Agreement shall be modified in accordance therewith, such amendment shall form a part of this Agreement for all purposes and every Holder shall be bound thereby.

 

ARTICLE VI

 

Miscellaneous and General

 

6.1                               Termination.  This Agreement will be terminated and of no force or effect, the parties will have no liability hereunder (other than with respect to monies due and owing by Parent Holdco to the Rights Agent) and no payments will be required to be made, upon the earlier to occur of (a) the payment by the Rights Agent to each Holder of the Milestone Payment required to be paid under the terms of this Agreement in accordance with Section 2.4(a), and (b) the expiration of the Milestone Period.  For the

 

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avoidance of doubt, the termination of this Agreement will not affect or limit the right to receive the Milestone Payments under Section 2.4 to the extent earned prior to termination of this Agreement and the provisions applicable thereto will survive the expiration or termination of this Agreement.

 

6.2                               Notices to the Rights Agent and Parent Holdco.  All notices, requests, instructions, demands, waivers and other communications or documents required or permitted to be given under this Agreement by either party to the other shall be in writing and delivered personally or sent by registered or certified mail, postage prepaid, by facsimile, electronic mail or overnight courier to such party, in the case of mail, facsimile or overnight courier, with a copy sent via electronic mail, at the following addresses:

 

If to Parent Holdco:

 

Shire plc

5 Riverwalk, Citywest Business Campus

Dublin

Ireland

Attention:  Michael Garry

Fax: +353 (0) 1 429 7701

 

With a copy to:

 

Shire

300 Shire Way

Lexington, MA  02421

Attention:  Bill Mordan, General Counsel

Fax:  (617) 613-4004

 

If to Rights Agent:

 

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, New York 11219

Attention:  Barry S. Rosenthal, Corporate Trust Department
 Phone:  (718) 921-8200 ext. 6467
 Fax:  (718) 765-8782
 Email:  brosenthal@amstock.com

 

With a copy to:

 

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

 

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Brooklyn, New York 11219
 Attention:  Legal Department
 Phone:  (718) 921-8200
 Fax:  (718) 331-1852
 Email:  LegalteamAST@amstock.com

 

or to such other persons or addresses as may be designated in writing by the party to receive such notice as provided above.  All such notices, requests, instructions, demands, waivers and other communications or documents give as provided above shall be deemed given to the receiving party upon actual receipt, if delivered personally; three (3) Business Days after deposit in the mail, if sent by registered or certified mail; upon confirmation of successful transmission, if sent by facsimile or email (provided that if given by facsimile or email, such notice, request, instruction or other document shall be followed up within one (1) Business Day by dispatch pursuant to one of the other methods described herein); or on the next Business Day after deposit with an overnight courier, if sent by an overnight courier.

 

6.3                               Notice to Holders.  Where this Agreement provides for notice to Holders, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at the Holder’s address as it appears in the CVR Register, not later than the latest date, and not earlier than the earliest date, if any, prescribed for the giving of such notice.  In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders.

 

6.4                               Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of Parent Holdco and the Rights Agent on behalf of the Holders and delivered to each other, it being understood that Parent Holdco and the Rights Agent need not sign the same counterpart.

 

6.5                               Governing Law; Jurisdiction; WAIVER OF JURY TRIAL.

 

(a)                                 THIS AGREEMENT SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED IN ACCORDANCE WITH, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF THE LAW OF ANY OTHER STATE OR WOULD DIRECT A MATTER TO ANOTHER JURISDICTION.  Each of the Parties hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive personal jurisdiction of the Court of Chancery of the State of Delaware, or, if (and only if) such court finds it lacks subject matter jurisdiction, the Superior Court of the State of Delaware (Complex

 

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Commercial Division) or, if subject matter jurisdiction over the matter that is the subject of the action or proceeding is vested exclusively in the federal courts of the United States of America, the federal court of the United States of America located in the County of New Castle, Delaware, and any appellate court from any thereof, solely in respect of the interpretation and enforcement of the provisions of (and any claim or cause of action arising under or relating to) this Agreement and of the documents referred to in this Agreement, and in respect of the transactions contemplated hereby, and each of the Parties hereby irrevocably and unconditionally (i) agrees not to commence any such action or proceeding except in the Court of Chancery of the State of Delaware, or, if (and only if) such court finds it lacks subject matter jurisdiction, the Superior Court of the State of Delaware (Complex Commercial Division) or, if subject matter jurisdiction over the matter that is the subject of the action or proceeding is vested exclusively in the federal courts of the United States of America, the federal court of the United States of America located in the County of New Castle, Delaware, as applicable, and any appellate court from any thereof, (ii) agrees that any claim in respect of any such action or proceeding may be heard and determined in the Court of Chancery of the State of Delaware, or, if (and only if) such court finds it lacks subject matter jurisdiction, the Superior Court of the State of Delaware (Complex Commercial Division) or, if subject matter jurisdiction over the matter that is the subject of the action or proceeding is vested exclusively in the federal courts of the United States of America, the federal court of the United States of America located in the County of New Castle, Delaware, as applicable, and any appellate court from any thereof, (iii) waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the jurisdiction or laying of venue of any such action or proceeding in such courts and (iv) waives, to the fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in such courts.  Each of the Parties agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.  Each Party irrevocably consents to and grants any such court jurisdiction over the person of such parties and, to the extent permitted by Law, over the subject matter of such dispute and consents to service of process inside or outside the territorial jurisdiction of the courts referred to in this Section 6.5(a) in the manner provided for notices in Section 6.2.  Nothing in this Agreement will affect the right of any Party to serve process in any other manner permitted by Law.

 

(b)                                 EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE MERGER AND OTHER TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY

 

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OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH PARTY MAKES SUCH WAIVERS VOLUNTARILY, AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.5(b).

 

6.6                               Other Remedies.  Except as otherwise provided herein, any and all remedies herein expressly conferred upon a party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any other remedy.

 

6.7                               Entire Agreement.  This Agreement and the documents and instruments and other agreements among the parties hereto as contemplated by or referred to herein, constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.

 

6.8                               Third-Party Beneficiaries; Action by Acting Holders.  Parent Holdco and the Rights Agent hereby agree that the respective covenants and agreements set forth herein are intended to be for the benefit of, and shall be enforceable by, the Acting Holders, who are intended third-party beneficiaries hereof.  Parent Holdco and the Rights Agent further agree that this Agreement and their respective covenants and agreements set forth herein are solely for the benefit of Parent Holdco, the Rights Agent, the Holders and their permitted successors and assigns hereunder in accordance with and subject to the terms of this Agreement, and nothing in this Agreement, express or implied, will confer upon any Person other than Parent Holdco, the Rights Agent, the Holders and their permitted successors and assigns hereunder any benefit or any legal or equitable right, remedy or claim hereunder.  Except for the right of the Rights Agent set forth herein, the Acting Holders will have the sole right, on behalf of all Holders, by virtue of or under any provision of this Agreement, to institute any action or proceeding at law or in equity or in bankruptcy or otherwise upon or under or with respect to this Agreement, and no individual Holder or other group of Holders will be entitled to exercise such rights. The parties hereto hereby agree that irreparable damage may occur in the event that any provision of this Agreement were not performed in accordance with its specific terms or were otherwise breached, and that money damages or other legal remedies may not be an adequate remedy for any such damages.  Accordingly, the parties hereto acknowledge and hereby agree that in the event of any breach or threatened breach by Parent Holdco or Assignee (as such term is defined below), on the one hand, or the Rights Agent or the Acting Holders, on the other hand, of any of their respective covenants or obligations set forth in this Agreement, Parent Holdco or Assignee, on the one hand, and the Rights Agent or the Acting Holders, on the other hand, shall be entitled

 

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to seek an injunction or injunctions to prevent or restrain breaches or threatened breaches of this Agreement, by the other(s) (as applicable), and to seek specific enforcement of the terms and provisions of this Agreement.

 

6.9                               Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.  If any provision of this Agreement, or the application of such provision to any Person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or the application of such provision, in any other jurisdiction.

 

6.10                        Assignment.  This Agreement shall not be assignable provided, however, that (a) Parent Holdco may assign this agreement to a Person (each such Person, an “Assignee”) (i) which is a direct or indirect wholly-owned subsidiaries of Parent Holdco, provided that Parent Holdco remains jointly and severally liable, (ii) with the prior consent of the Acting Holders, whether evidenced in writing or taken at a meeting of the Holders, or (iii) in connection with a transaction involving an Assignment Transaction conducted in compliance with Section 4.3 and (b) the Rights Agent may assign this Agreement to a successor Rights Agent appointed in accordance with Section 3.3.

 

6.11                        Benefits of Agreement.  Notwithstanding anything to the contrary contained herein, any Holder may at any time agree to renounce, in whole or in part, whether or not for consideration, such Holder’s rights under this Agreement by written notice to the Rights Agent and Parent Holdco, which notice, if given, shall be irrevocable.  Parent Holdco may, in its sole discretion, at any time, offer consideration to Holders in exchange for their agreement to irrevocably renounce their rights hereunder.

 

6.12                        Legal Holidays.  In the event that any Milestone Payment Date shall not be a Business Day, then (notwithstanding any provision of this Agreement to the contrary) payment need not be made on such date, but may be made, without the accrual of any additional interest thereon on account of such Milestone Payment Date not being a Business Day, on the next succeeding Business Day with the same force and effect as if made on such Milestone Payment Date.

 

6.13                        Interpretation; Construction.

 

(a)                                 The table of contents and headings herein are for convenience of reference only, do not constitute part of this Agreement and shall not be deemed to limit or otherwise affect any of the provisions hereof.

 

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(b)                                 The parties have participated jointly in negotiating and drafting this Agreement.  In the event that an ambiguity or a question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision of this Agreement.

 

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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officers of the parties hereto as of the date first written above.

 

	
 
    	
SHIRE PLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Flemming Ornskov
    
	
 
    	
 
    	
Name: Flemming Ornskov
    
	
 
    	
 
    	
Title: President and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jennifer Donovan
    
	
 
    	
 
    	
Name: Jennifer Donovan
    
	
 
    	
 
    	
Title: SVP
    

 

 

Annex A

 

Form of Assignment and Assumption Agreement

 

ASSIGNMENT AND ASSUMPTION AGREEMENT, made as of [·] (this “Agreement”), between Shire plc, a company incorporated in Jersey(“Assignor”) and [·], a [·] (“Assignee”).  Unless otherwise defined herein, capitalized terms used in this Agreement shall have the meanings given to them in the CVR Agreement referred to below.

 

W I T N E S S E T H:

 

WHEREAS, Assignor and American Stock Transfer & Trust Company, LLC as rights agent (the “Rights Agent”) are parties to a Contingent Value Rights Agreement dated as of [·] (the “CVR Agreement”); and

 

WHEREAS, Assignor and Assignee desire to execute and deliver this Agreement evidencing the transfer to Assignee the due and punctual payment of any Aggregate Milestone Payment and the performance or observance of every covenant of the CVR Agreement not yet performed or observed on the part of Assignor to be performed and observed and the assumption thereof of Assignee;

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor and Assignee hereby agree as follows:

 

1.              Assignment.  Effective as of [·] (the “Assignment Date”), Assignor hereby assigns to Assignee, and Assignee hereby accepts the assignment of, the due and punctual payment of any Aggregate Milestone Payment and the performance or observance of every covenant of the CVR Agreement not yet performed or observed on the part of Assignor to be performed and observed.

 

2.              Assumption.  Effective as of the Assignment Date, Assignee hereby assumes the due and punctual payment of any Aggregate Milestone Payment and the performance or observance of every covenant of the CVR Agreement not yet performed or observed on the part of Assignor to be performed and observed.

 

3.              Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the respective parties hereto and their respective successors and assigns.

 

4.              Governing Law.  This Agreement shall be governed by, construed and enforced in accordance with the laws of Delaware, without giving effect to the principles of conflicts of laws thereof.

 

 

5.              Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument.

 

 

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized officers of the parties hereto as of the date first written above.

 

	
 
    	
[ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ASSIGNEE]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:

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