Document:

Exhibit 10.1

 

Transitional
Retirement Agreement

 

This Transitional
Retirement Agreement is made and entered into effective November 1, 2019, by and among Lakeland
Financial Corporation, an Indiana corporation (the “Company”), Lake
City Bank, an Indiana chartered bank with its main office located in Warsaw, Indiana (the “Bank”),
and Kevin Deardorff (the “Executive,” and together with
the Company and the Bank, the “Parties”).

 

Recitals

 

A.               
Executive is currently employed as the Executive Vice President, Retail Banking Administration of the Company and the
Bank.

 

B.                
Executive and the Company are parties to that certain Change in Control Agreement, dated as of March 1, 2016 (the “CIC
Agreement”).

 

C.               
Executive and the Company have discussed Executive’s retirement from the Company and the benefit of continuing
Executive’s employment for a period of time to facilitate a smooth transition of Executive’s duties and responsibilities.

 

D.               
The Company desires, with Executive’s assistance, to implement a succession plan with respect to Executive’s
employment, and Executive desires to provide such assistance.

 

E.                
The Company and the Bank desire to continue to employ Executive pursuant to the terms of this Agreement and Executive
desires to continue to be employed by the Company pursuant to such terms until Executive’s retirement.

 

F.                
The Parties have made commitments to each other on a variety of important issues concerning Executive’s employment,
including the performance that will be expected of Executive, the compensation Executive will be paid, how long and under what
circumstances Executive will remain employed, and the financial details relating to any decision that either the Company or Executive
may make to terminate this Agreement and Executive’s employment with the Company.

 

G.               
The Parties desire to enter into this Agreement as of the Effective Date and, to the extent provided herein, to have
this Agreement supersede all prior employment agreements or change in control agreements between the Parties, whether or not in
writing, and to have any such prior agreements become null and void as of the Effective Date.

 

Agreement

 

In consideration of
the foregoing and the mutual promises and covenants of the Parties set forth in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby
expressly covenant and agree as follows:

 

Section 1.                 
Prior Agreements. As of the Effective Date, this Agreement shall supersede and replace any and all prior agreements
respecting Executive’s employment by, or service to, the Company, as may from time to time have been made by and between
the Parties, whether or not in writing, including without limitation the CIC Agreement; provided, however, that any vested
benefits due to Executive pursuant to any pension plan, welfare benefit plan, or any other employee benefit plan shall continue
to be available to Executive subject to the terms and conditions of the applicable plan as may be in effect from time to time.

 

     

     

    

 

Section 2.                 
Employment Period and Duties. Executive’s employment with the Company shall continue for the period commencing
on the Effective Date and ending on June 30, 2021 (the “Retirement Date, and such period between the Effective Date
and the Retirement Date, the “Employment Period”).

 

(a)                 
Executive shall continue to provide all current services as the Executive Vice President, Retail Banking Administration
until December 31, 2019 (the “Succession Date,” and such period between the Effective Date and the Succession
Date, the “EVP Period”). Executive’s principal responsibility during the EVP Period will be the transition
of his role and responsibilities to the Senior Vice President, Retail Banking (the “SVP”). Executive shall also
actively participate in the completion of the 2020 budget and strategic initiatives.

 

(b)                 
Following the Succession Date through the Retirement Date (such period, the “Advisor Period”), Executive
shall serve as the Retail Banking Advisor. During the Advisor Period, Executive will be a full-time, non-executive employee. Executive’s
duties during the Advisor Period shall include advising the President and Chief Executive Officer of the Company and the Bank,
advising and regularly meeting with the SVP, actively participating in community events for the Bank, and continuing to serve on
community boards as a representative of the Bank.

 

Section 3.                 
Compensation and Benefits. During the Employment Period, the Company shall compensate Executive for Executive’s
services as follows:

 

(a)              
Annual Base Salary. Executive shall be paid a base salary
at the following annual rates in accordance with the normal payroll practices of the Company then in effect (the “Annual
Base Salary”), subject to any increase as determined by the Board of Directors of the Company (the “Board”)
in its sole discretion. From the Effective Date until December 31, 2020, Executive’s Annual Base Salary rate shall be two
hundred and fifty-three thousand dollars ($253,000). From January 1, 2021 through the Retirement Date, Executive’s Annual
Base Salary rate shall be one hundred and twenty-six thousand five hundred dollars ($126,500). 

 

(b)              
Annual Incentive Bonus. Executive shall continue to be eligible
to receive performance-based annual incentive bonuses (each, the “Incentive Bonus”) from the Company. The Incentive
Bonus shall be established and determined in accordance with the Company’s annual cash incentive plan, as may be in effect
from time to time, or otherwise as determined by the Board, provided that the target level of the Incentive Bonus shall
be forty percent (40%) of the Annual Base Salary then in effect. The Incentive Bonus for 2021 shall be prorated based on the number
of days worked during 2021 through the Retirement Date. 

 

(c)              
Long Term Incentive Plan. Executive shall be entitled
to receive equity-based awards for the 2019-2021 (“Plan 14”) and 2020-2022 (“Plan 15”) Performance
Periods under, and subject to the terms of, the Company’s 2017 Equity Incentive Plan (the “Equity Plan”).
Executive shall not be entitled to receive an equity-based award for the 2021-2023 Performance Period. The target number of shares
for Plan 14 and Plan 15 awards shall be five thousand four hundred (5,400) shares. Such awards will vest as of the Retirement Date
on a pro rata basis (based upon the number of days employed during the applicable Performance Periods) at one hundred percent (100%)
of realized performance for the target number of shares. Executive’s currently outstanding awards for the 2017-2019 and 2018-2020
Performance Periods shall continue to vest and become payable as long as Executive remains an employee of the Company through the
end of the applicable Performance Periods.

 

    	 	2	 

     

    

 

(d)              
Employee Benefits. Executive and Executive’s dependents,
as the case may be, shall be eligible to participate, subject to the terms thereof, in all tax qualified retirement and similar
benefit plans and all medical, dental, disability, group and executive life, accidental death and travel accident insurance, holiday
and other paid time off policies, and other similar welfare benefit plans of the Company as may be in effect from time to time
with respect to senior executives employed by the Company, on as favorable a basis as other similarly situated and performing executives.

 

Section 4.                 
Termination. 

 

(a)                 
In the event of a Termination, as defined in CIC Agreement, or a termination of Executive’s employment due to death
or Disability (as defined in the Equity Plan) this Agreement and the obligations and benefits hereunder shall remain in full force
and effect as if Executive was employed through the Retirement Date.

 

(b)                 
In the event Executive’s employment is terminated by the Company for Cause or Executive resigns other than for Good
Reason (each as defined in CIC Agreement), the Company shall have no further obligations to Executive (except payment of the Annual
Base Salary accrued through the date of the said termination), and the Company shall continue to have all other rights available
hereunder, including all rights under Section 6.

 

Section 5.                 
Release. In exchange for the benefits set forth in this Agreement, within twenty-one (21) days following the
Retirement Date, or upon a Termination, if applicable, Executive shall execute and return to the Company a general release and
waiver, in a form acceptable to the Company.

 

Section 6.                 
Post-Termination Covenants. Section 6 of the CIC Agreement is fully incorporated by reference as if fully restated
herein and shall remain in full force and effect; provided, however, that for purposes of this Agreement, the term “Restricted
Period” as used therein shall mean the period during the Executive’s employment with the Company and any affiliate
and for five (5) years immediately following the termination of the Executive’s employment for any reason.

 

Section 7.                 
Governing Law. This Agreement shall be governed by and construed under the laws of the State of Indiana, without
regard to principles of conflict of laws (whether in the State of Indiana or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Indiana.

 

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Section 8.                 
Choice of Venue and Consent to Jurisdiction. Each Party hereby irrevocably submits to the exclusive jurisdiction
of the courts located in the City of Warsaw, Indiana, if such courts have or can acquire jurisdiction, and if such jurisdiction
does not exist and cannot be acquired, to the exclusive jurisdiction of the United States District Court serving the City of Warsaw,
Indiana, for the purpose of any suit, action, or other proceeding arising out of or based on this Agreement or any other agreement
contemplated hereby or any subject matter hereof, whether in tort, contract, or otherwise.

 

Section 9.                 
Withholding of Taxes. The Company may withhold from any benefits payable under this Agreement all federal, state,
city and other taxes as may be required pursuant to any law, governmental regulation, or ruling.

 

Section 10.             
No Assignment. Executive’s right to receive benefits under this Agreement shall not be assignable or transferable
whether by pledge, creation of a security interest, or otherwise, other than a transfer by will or by the laws of descent or distribution.
In the event of any attempted assignment or transfer contrary to this Section 10, the Company and its affiliates shall have
no liability to pay any amount so attempted to be assigned or transferred. This Agreement shall inure to the benefit of and be
enforceable by Executive’s personal and legal representatives, executors, administrators, successors, heirs, distributees,
devisees, and legatees.

 

Section 11.             
Successors. This Agreement shall be binding upon and inure to the benefit of the Company, its successors, and
assigns.

 

Section 12.             
Amendment. This Agreement may not be amended or modified except by written agreement signed by the Parties.

 

Section 13.             
Entire Agreement. This Agreement constitutes the entire agreement between the Parties concerning the subject
matter hereof, and supersedes all prior negotiations, undertakings, agreements and arrangements with respect thereto, whether written
or oral. If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then
the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of
this Agreement and all other provisions shall remain in full force and effect. The various covenants and provisions of this Agreement
are intended to be severable and to constitute independent and distinct binding obligations. Without limiting the generality of
the foregoing, if the scope of any covenant contained in this Agreement is too broad to permit enforcement to its full extent,
such covenant shall be enforced to the maximum extent permitted by law, and such scope may be judicially modified accordingly.

 

Section 14.             
Code Section 409A.

 

(a)              
To the extent any provision of this Agreement or action by the
Company would subject Executive to liability for interest or additional taxes under Code Section 409A, it shall be deemed null
and void, to the extent permitted by law and deemed advisable by the Company. It is intended that this Agreement will comply with
Code Section 409A, and this Agreement shall be administered accordingly and interpreted and construed on a basis consistent with
such intent. Notwithstanding any provision of this Agreement to the contrary, no termination or similar payments or benefits shall
be payable hereunder on account of a Termination unless such Termination constitutes a “separation from service” within
the meaning of Code Section 409A. For purposes of Code Section 409A, all installment payments of deferred compensation made hereunder,
or pursuant to another plan or arrangement, shall be deemed to be separate payments. To the extent any reimbursements or in-kind
benefit payments under this Agreement are subject to Code Section 409A, such reimbursements and in-kind benefit payments shall
be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv). This Agreement may be amended to the extent necessary
(including retroactively) by the Company to avoid the application of taxes or interest under Code Section 409A, while maintaining
to the maximum extent practicable the original intent of this Agreement. This Section 13 shall not be construed as a guarantee
of any particular tax effect for Executive’s benefits under this Agreement and the Company does not guarantee that any such
benefits will satisfy the provisions of Code Section 409A or any other provision of the Code.

 

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(b)              
Notwithstanding any provision of this Agreement to the contrary,
if Executive is determined to be a Specified Employee as of the Termination Date, then, to the extent required pursuant to Code
Section 409A, payments due under this Agreement that are deemed to be deferred compensation shall be subject to a six-month delay
following the Termination Date; and all delayed payments shall be accumulated and paid in a lump-sum payment as of the first day
of the seventh month following the Termination Date (or, if earlier, as of Executive’s death), with all such delayed payments
being credited with interest (compounded monthly) for this period of delay equal to the prime rate in effect on the first day of
such six-month period. Any portion of the benefits hereunder that were not otherwise due to be paid during the six-month period
following the Termination Date shall be paid to Executive in accordance with the payment schedule established herein.

 

Section 15.             
Survival. The provisions of Section 6 shall survive the termination of this Agreement.

 

[Signature page follows]

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF,
each of the Company and the Bank has caused this Agreement to be executed in its name and on its behalf, and Executive acknowledges
understanding and acceptance of, and agrees to, the terms of this Agreement, all as of the Effective Date.

 

 

	 	LAKELAND FINANCIAL CORPORATION
	 	 
	 	By:	 
	 	 	 
	 	Print Name: 	 
	 	 	 
	 	Title: 	 
	 	 	 
	 	 	 
	 	LAKE CITY BANK 
	 	 	 
	 	By: 	 
	 	 	 
	 	Print Name: 	 
	 	 	 
	 	Title: 	 
	 	 	 
	 	 	 
	 	Kevin Deardorff 
	 	 	 
	 	 	 
	 	By: 	 

 

 

 

 

 

 

    	 	6Wells Fargo & Company 8-K

Exhibit 4.1

 

[Face of Note]

 

Unless this
certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

	
CUSIP NO. 95001HBY6

	
FACE AMOUNT:  $___________

	
REGISTERED NO. ___

	
 

 

WELLS FARGO FINANCE LLC

 

MEDIUM-TERM NOTE, SERIES A

 

Fully and Unconditionally Guaranteed by Wells Fargo & Company

 

Notes Linked to the S&P 500® Index

 

WELLS FARGO FINANCE LLC, a limited liability company duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company,” which term includes any successor corporation under and as defined in the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Cash Settlement Amount (as defined below), 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, on the Stated Maturity Date.  The “Stated Maturity Date” shall be November 3, 2021.  If the Determination Date (as defined below) is postponed, the Stated Maturity Date will be postponed to the second Business Day (as defined below) after the Determination Date as postponed.  This Security shall not bear any interest. 

 

Any payments on this Security at Maturity will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose. 

 

“Face Amount” shall mean, when used with respect to this Security, the amount set forth on the face of this Security as its “Face Amount.”

 

Determination of Cash Settlement Amount and Certain Definitions

 

The “Cash Settlement Amount” of this Security will equal:

 

	
 

	
●

	
if a Barrier Event has not occurred, the sum of (i) the Face Amount plus (ii) the product of (a) the Face Amount times (b) the Absolute Underlier Return; or

     

     

    
 

	
 

	
●

	
if a Barrier Event has occurred, the Face Amount.

 

All calculations with respect to the Cash Settlement Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Cash Settlement Amount will be rounded to the nearest cent, with one-half cent rounded upward.

 

The “Underlier” shall mean the S&P 500® Index.

 

The “Trade Date” shall mean November 1, 2019.

 

The “Initial Underlier Level” is 3,066.91, the Closing Level of the Underlier on the Trade Date.

 

The “Closing Level” of the Underlier on any Trading Day means the official closing level of the Underlier reported by the Underlier Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into account the decimal precision and/or rounding convention employed by such licensed third-party market data vendor on such date, subject to the provisions set forth below under “Adjustments to the Underlier,” “Discontinuance of the Underlier” and “Market Disruption Events.”

 

The “Final Underlier Level” will be the Closing Level of the Underlier on the Determination Date.

 

The “Underlier Return” will be the quotient of (i) the Final Underlier Level minus the Initial Underlier Level divided by (ii) the Initial Underlier Level, expressed as a percentage.

 

The “Absolute Underlier Return” will be the absolute value of the Underlier Return.

 

A “Barrier Event” will occur if the Closing Level of the Underlier on any Trading Day during the Measurement Period is greater than the Upper Barrier Level or less than the Lower Barrier Level.

 

The “Upper Barrier Level” is 3,658.82363, which is equal to 119.30% of the Initial Underlier Level.

 

The “Lower Barrier Level” is 2,474.99637, which is equal to 80.70% of the Initial Underlier Level.

 

The “Measurement Period” will consist of each Trading Day from but excluding the Trade Date to and including the Determination Date.  If a Market Disruption Event occurs on a Trading Day during the Measurement Period, such Trading Day will be disregarded for purposes of determining whether a Barrier Event has occurred.  

 

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“Underlier Sponsor” shall mean S&P Dow Jones Indices LLC.

 

“Business Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in New York, New York.

 

A “Trading Day” means a day, as determined by the Calculation Agent, on which (i) the Relevant Stock Exchanges with respect to each security underlying the Underlier are scheduled to be open for trading for their respective regular trading sessions and (ii) each Related Futures or Options Exchange is scheduled to be open for trading for its regular trading session.

 

The “Related Futures or Options Exchange” for the Underlier means an exchange or quotation system where trading has a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to the Underlier.

 

The “Relevant Stock Exchange” for any security underlying the Underlier means the primary exchange or quotation system on which such security is traded, as determined by the Calculation Agent.

 

The “Determination Date” shall be November 1, 2021. If the originally scheduled Determination Date is not a Trading Day, the Determination Date will be postponed to the next succeeding Trading Day.  The Determination Date is also subject to postponement due to the occurrence of a Market Disruption Event (as defined below).  See “–Market Disruption Events.”

 

“Calculation Agent Agreement” shall mean the Calculation Agent Agreement dated as of May 18, 2018 between the Company and the Calculation Agent, as amended from time to time.

 

“Calculation Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among other things, the determination of the Final Underlier Level and the Cash Settlement Amount, which term shall, unless the context otherwise requires, include its successors under such Calculation Agent Agreement.  The initial Calculation Agent shall be Wells Fargo Securities, LLC.  Pursuant to the Calculation Agent Agreement, the Company may appoint a different Calculation Agent from time to time after the initial issuance of this Security without the consent of the Holder of this Security and without notifying the Holder of this Security.

 

Adjustments to the Underlier

 

If at any time the method of calculating the Underlier or a Successor Underlier, or the closing level thereof, is changed in a material respect, or if the Underlier or a Successor Underlier is in any other way modified so that such underlier does not, in the opinion of the Calculation Agent, fairly represent the level of such underlier had those changes or modifications not been made, then the Calculation Agent will, at the close of business in New York, New York, on each date that the closing level of such underlier is to be calculated, make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a level of an underlier comparable to the Underlier or Successor Underlier as if those changes or modifications had not been made, and the Calculation Agent will

 

    3 

     

    
calculate the closing level of the Underlier or Successor Underlier with reference to such underlier, as so adjusted.  Accordingly, if the method of calculating the Underlier or Successor Underlier is modified so that the level of such underlier is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split or reverse split in such equity underlier), then the Calculation Agent will adjust the Underlier or Successor Underlier in order to arrive at a level of such underlier as if it had not been modified (e.g., as if the split or reverse split had not occurred).

 

Discontinuance of the Underlier

 

If the Underlier Sponsor discontinues publication of the Underlier, and the Underlier Sponsor or another entity publishes a successor or substitute equity index that the Calculation Agent determines, in its sole discretion, to be comparable to the Underlier (a “Successor Underlier”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company, the Calculation Agent will substitute the Successor Underlier as calculated by the relevant Underlier Sponsor or any other entity and calculate the Final Underlier Level as described above. Upon any selection by the Calculation Agent of a Successor Underlier, the Company will cause notice to be given to the Holder of this Security.

 

In the event that the Underlier Sponsor discontinues publication of the Underlier prior to, and the discontinuance is continuing on, the Determination Date and the Calculation Agent determines that no Successor Underlier is available at such time, the Calculation Agent will calculate a substitute Closing Level for the Underlier in accordance with the formula for and method of calculating the Underlier last in effect prior to the discontinuance, but using only those securities that comprised the Underlier immediately prior to that discontinuance.  If a Successor Underlier is selected or the Calculation Agent calculates a level as a substitute for the Underlier, the Successor Underlier or level will be used as a substitute for the Underlier for all purposes, including the purpose of determining whether a Market Disruption Event exists.

 

If on the Determination Date the Underlier Sponsor fails to calculate and announce the level of the Underlier, the Calculation Agent will calculate a substitute Closing Level of the Underlier in accordance with the formula for and method of calculating the Underlier last in effect prior to the failure, but using only those securities that comprised the Underlier immediately prior to that failure; provided that, if a Market Disruption Event occurs or is continuing on such day, then the provisions set forth below under “Market Disruption Events” shall apply in lieu of the foregoing.

 

Market Disruption Events 

 

A “Market Disruption Event” means any of the following events as determined by the Calculation Agent in its sole discretion:

 

	
 

	
(A)

	
The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock Exchanges or otherwise relating to securities which then comprise 20% or more of the level of the Underlier or any Successor Underlier at any time during the one-hour period that ends at the Close of Trading

    4 

     

    

	
 

	
 

	
on that day, whether by reason of movements in price exceeding limits permitted by those Relevant Stock Exchanges or otherwise.

 

	
 

	
(B)

	
The occurrence or existence of a material suspension of or limitation imposed on trading by any Related Futures or Options Exchange or otherwise in futures or options contracts relating to the Underlier or any Successor Underlier on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise. 

 

	
 

	
(C)

	
The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants in general to effect transactions in, or obtain market values for, securities that then comprise 20% or more of the level of the Underlier or any Successor Underlier on their Relevant Stock Exchanges at any time during the one-hour period that ends at the Close of Trading on that day.

 

	
 

	
(D)

	
The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the ability of market participants in general to effect transactions in, or obtain market values for, futures or options contracts relating to the Underlier or any Successor Underlier on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that day.

 

	
 

	
(E)

	
The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that then comprise 20% or more of the level of the Underlier or any Successor Underlier are traded or any Related Futures or Options Exchange prior to its Scheduled Closing Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual closing time for the regular trading session on such Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission deadline for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution at such actual closing time on that day.

 

	
 

	
(F)

	
The Relevant Stock Exchange for any security underlying the Underlier or Successor Underlier or any Related Futures or Options Exchange fails to open for trading during its regular trading session.

 

For purposes of determining whether a Market Disruption Event has occurred:

 

	
 

	
(1)

	
the relevant percentage contribution of a security to the level of the Underlier or any Successor Underlier will be based on a comparison of (x) the portion of the level of such underlier attributable to that security and (y) the overall level of the

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Underlier or Successor Underlier, in each case immediately before the occurrence of the Market Disruption Event;

 

	
 

	
(2)

	
the “Close of Trading” on any Trading Day for the Underlier or any Successor Underlier means the Scheduled Closing Time of the Relevant Stock Exchanges with respect to the securities underlying the Underlier or Successor Underlier on such Trading Day; provided that, if the actual closing time of the regular trading session of any such Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A) and (C) of the definition of “Market Disruption Event” above, with respect to any security underlying the Underlier or Successor Underlier for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading” means such actual closing time and (y) for purposes of clauses (B) and (D) of the definition of “Market Disruption Event” above, with respect to any futures or options contract relating to the Underlier or Successor Underlier, the “close of trading” means the latest actual closing time of the regular trading session of any of the Relevant Stock Exchanges, but in no event later than the Scheduled Closing Time of the Relevant Stock Exchanges;

 

	
 

	
(3)

	
the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures or Options Exchange on any Trading Day for the Underlier or any Successor Underlier means the scheduled weekday closing time of such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours or any other trading outside the regular trading session hours; and

 

	
 

	
(4)

	
an “Exchange Business Day” means any Trading Day for the Underlier or any Successor Underlier on which each Relevant Stock Exchange for the securities underlying the Underlier or any Successor Underlier and each Related Futures or Options Exchange are open for trading during their respective regular trading sessions, notwithstanding any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled Closing Time.

 

If a Market Disruption Event occurs or is continuing on the Determination Date, then the Determination Date will be postponed to the first succeeding Trading Day on which a Market Disruption Event has not occurred and is not continuing; however, if such first succeeding Trading Day has not occurred as of the eighth Trading Day after the originally scheduled Determination Date, that eighth Trading Day shall be deemed to be the Determination Date. If the Determination Date has been postponed eight Trading Days after the originally scheduled Determination Date and a Market Disruption Event occurs or is continuing on such eighth Trading Day, the Calculation Agent will determine the Closing Level of the Underlier on such eighth Trading Day in accordance with the formula for and method of calculating the Closing Level of the Underlier last in effect prior to commencement of the Market Disruption Event, using the closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred with respect to such security, its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange) on such date 

 

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of each security included in the Underlier. As used herein, “closing price” means, with respect to any security on any date, the Relevant Stock Exchange traded or quoted price of such security as of the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange.  

 

Calculation Agent

 

The Calculation Agent will determine the Cash Settlement Amount and the Final Underlier Level.  In addition, the Calculation Agent will (i) determine if adjustments are required to the Closing Level of the Underlier under the circumstances described in this Security, (ii) if publication of the Underlier is discontinued, select a Successor Underlier or, if no Successor Underlier is available, determine the Closing Level of the Underlier under the circumstances described in this Security, and (iii) determine whether a Market Disruption Event or non-Trading Day has occurred. 

 

The Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall be a broker-dealer, bank or other financial institution) with respect to this Security.

 

All determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

 

Redemption and Repayment

 

This Security is not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior to November 3, 2021.  This Security is not entitled to any sinking fund.

 

Acceleration

 

If an Event of Default,
as defined in the Indenture, with respect to this Security shall occur and be continuing, the Cash Settlement Amount (calculated
as set forth in the next sentence) of this Security may be declared due and payable in the manner and with the effect provided
in the Indenture.  The amount payable to the Holder hereof upon any acceleration permitted under
the Indenture will be equal to the Cash Settlement Amount hereof calculated as provided herein as though the date of acceleration
was the Determination Date.   

 

 

 

Reference is hereby made to the further provisions of this Security 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 or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

    7 

     

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

 

DATED: 

 

	
 

	
WELLS FARGO FINANCE LLC

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Its:

	
 

	
 

	
 

	
 

	
 

	
 

	
Attest:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Its:

 

TRUSTEE’S CERTIFICATE OF

AUTHENTICATION

This is one of the Securities of the

series designated therein described

in the within-mentioned Indenture.

 

CITIBANK, N.A.,

as Trustee

 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

	
 

	
 

	
 

	
 

	
OR

	
 

	
 

	
 

	
 

	
WELLS FARGO BANK, N.A.,

	
 

	
    as Authenticating Agent for the Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
Authorized Signature

	
 

 

    8 

     

    
[Reverse of Note]

 

WELLS FARGO FINANCE LLC

 

MEDIUM-TERM NOTE, SERIES A

 

Fully and Unconditionally Guaranteed by Wells Fargo & Company

 

Notes Linked to the S&P 500® Index

 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an indenture dated as of April 25, 2018, as amended or supplemented from time to time (herein called the “Indenture”), among the Company, as issuer, Wells Fargo & Company, as guarantor (the “Guarantor”) and Citibank, N.A., as trustee (herein called the “Trustee,” which term includes any successor trustee under 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 Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered.  This Security is one of the series of the Securities designated as Medium-Term Notes, Series A, of the Company.  The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities, currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate.  The Securities of this series may mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies.

 

The Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities issued to and registered in the names of, the beneficial owners or their nominees.

 

The Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against a Holder of this Security.

 

Guarantee

 

The Securities of this series are fully and unconditionally guaranteed by the Guarantor as and to the extent set forth in the Indenture.

 

Modification and Waivers 

 

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 Securities of each series to be affected under the Indenture at any time by the

 

    9 

     

    
Company, the Guarantor and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of all series to be affected, acting together as a class.  The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company or the Guarantor with those provisions of the Indenture.  Certain past defaults under the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series.  Solely for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof as the “Face Amount” hereof.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

 

Defeasance

 

Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon compliance by the Company or the Guarantor with certain conditions set forth therein, shall not apply to this Security.  The remaining provisions of Section 401 of the Indenture shall apply to this Security.

 

Authorized Denominations

 

This Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which is an integral multiple of $1,000.

 

Registration of Transfer

 

Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis, Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection therewith.

 

This Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z) an Event of Default with respect

 

    10 

     

    
to the Securities represented hereby has occurred and is continuing.  If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like amount. 

 

This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor.  Except as provided above, owners of beneficial interests in this Global Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture.

 

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

 

Obligation of the Company Absolute

 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the Cash Settlement Amount at the times, place and rate, and in the coin or currency, herein prescribed, except as otherwise provided in this Security.

 

No Personal Recourse

 

No recourse shall be had for the payment of the Cash Settlement Amount, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or any successor corporation or of the Guarantor or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

 

Defined Terms

 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless otherwise defined in this Security.

 

Governing Law

 

This Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles of conflicts of laws.

 

    11 

     

    
ABBREVIATIONS

 

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

 

	
TEN COM

	
--

	
as tenants in common

	
 

	
 

	
 

	
TEN ENT

	
--

	
as tenants by the entireties

	
 

	
 

	
 

	
JT TEN

	
--

	
as joint tenants with right

	
 

	
 

	
of survivorship and not

	
 

	
 

	
as tenants in common

 

	UNIF
                                         GIFT MIN ACT

	--

	 

	 

	 Custodian 

	 

	 

	 

	(Cust)

	 

	 

	(Minor)

 

Under Uniform Gifts to Minors Act

 

	
 

	
 

	
(State)

	
 

 

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

 

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

 

Please Insert Social Security or 

Other Identifying Number of Assignee

 

 

	 

	 

	 	 
	 

	 

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

 

    12 

     

    
the within Security of WELLS FARGO FINANCE LLC and does hereby irrevocably constitute and appoint __________________ attorney to transfer the said Security on the books of the Company, with full power of substitution in the premises.

 

Dated:  _________________________

 

	
 

	
 

	
 

	
 

	
 

	
 

 

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

 

    13

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