Document:

EX-10.1

 Exhibit 10.1 

TRANSITION AND SEPARATION AGREEMENT 

This Transition and Separation Agreement (this “Agreement”) is entered into as of September 11, 2019 (the
“Effective Date”) between Bryan Ingram (the “Executive”) and Broadcom Inc., a Delaware corporation (together with its subsidiaries and affiliates, the “Company”) with reference to the following
facts: 
 A.    Executive notified the Company of Executive’s intent to retire from his employment with the Company
effective as of November 3, 2019 (the “Original Retirement Date”). 
 B.    The Company desires to
assure itself of the continued services of Executive in Executive’s areas of expertise and work experience to assist the Company in transitioning Executive’s duties and responsibilities to Executive’s successor(s). 

C.    Executive desires to provide transition services to the Company and remain eligible for certain compensation in
connection with such services. 
 D.     In order to facilitate such services, Executive and the Company have agreed
that, instead of the Original Retirement Date, Executive’s employment with the Company is now intended to end effective upon March 20, 2020 (the “Planned Separation Date”). 

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties agree as follows: 

1.    Separation; Resignation as Officer; At-Will Employment. 

(a)    Separation Date. The Company and Executive agree that Executive’s employment with the
Company shall not end on the Original Retirement Date but instead, to the extent not terminated by the Company or Executive earlier, shall end effective as of the Planned Separation Date (the date Executive’s employment with the Company
actually occurs, the “Separation Date”). 
 (b)    Resignation as Officer.
Effective as of the end of the business day on the Original Retirement Date, Executive shall cease to constitute an officer of the Company. Executive hereby agrees to execute such additional documents determined necessary or appropriate by the
Company to effect Executive’s resignation as an officer of the Company and any of its subsidiaries, provided, that any such documents shall be consistent with the terms of this Agreement. 

2.    Transition Period. 

(a)    Transition Period. From the end of the working day on the Original Retirement Date through
the Separation Date (the “Transition Period”), Executive shall remain employed on a part-time basis by the Company and shall be available to provide at least twenty (20) hours per week of transition services in Executive’s
areas of expertise and work experience and responsibility (the “Transition Services”). During the Transition Period, Executive will not be required to regularly report to the Company’s offices but agrees to make himself
available, including to come into the Company’s offices, upon reasonable notice by the Company. Executive’s title during the Transition Period shall be Special Advisor. 

  
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 (b)    Salary and Benefits Continuation. During
the Transition Period, Executive will be paid a base salary at the rate of $55,000 per annum in accordance with the Company’s standard payroll procedures. All payments made to Executive during the Transition Period will be subject to standard
payroll deductions and withholdings. Executive will remain eligible to participate in the Company’s employee benefit programs in accordance with their terms. 

(c)    FY 2019 Bonus. Executive shall remain eligible to be paid Executive’s target bonus under
the Company’s FY19 Annual Performance Bonus Plan for Executive Employees in accordance with its terms and based on actual performance for fiscal year 2019. Any bonus earned for fiscal year 2019 will be paid at the same time bonuses are paid to
other Company executives. Executive shall not be eligible for a bonus in respect of fiscal year 2020. 

(d)    Equity Awards. During the Transition Period, Executive’s outstanding restricted stock
units (“RSUs”) and performance stock units (“PSUs”) will continue to vest in accordance with the terms and conditions of the plan pursuant to which they were granted and the awards evidencing such RSUs and PSUs. Any
RSUs and PSUs that are unvested as of the Separation Date shall thereupon be forfeited. 

(e)    Protection of Information. Executive agrees that, during the Transition Period and
thereafter, Executive will not, except for the purposes of performing the Transition Services, seek to obtain any confidential or proprietary information or materials of the Company. 

3.    Final Paycheck; Payment of Accrued Wages and Expenses; Other Vested Benefits. 

(a)    Final Paycheck. As soon as administratively practicable on or after the Separation Date, the
Company will pay Executive all accrued but unpaid base salary earned through the Separation Date, subject to standard payroll deductions and withholdings. Executive is entitled to this payment regardless of whether Executive executes this Agreement.

 (b)    Business Expenses. The Company shall reimburse Executive for all outstanding expenses
incurred prior to the Separation Date which are consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to
reporting and documenting such expenses. Executive is entitled to these reimbursements regardless of whether Executive executes this Agreement. 

(c)    Other Vested Benefits. Any other vested benefits accrued by Executive prior to the Separation
Date under employee benefit plans of the Company shall be paid or provided to Executive in accordance with, and as such obligations become due under, the terms of the applicable plan. Executive is entitled to these vested benefits regardless of
whether Executive executes this Agreement. 
 4.    Full Payment. Executive acknowledges that the payment and
arrangements herein shall constitute full and complete satisfaction of any and all amounts properly due and owing to Executive as a result of Executive’s employment with the Company and separation therefrom. Executive further acknowledges that
the opportunity to continue to serve the Company during the Transition Period and, in turn, continue to vest in Executive’s RSUs and PSUs, is not something that Executive is entitled to and constitutes good and valuable consideration for the
release provided herein. In addition, Executive 

  
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acknowledges that, other than that certain Agreement Regarding Confidential Information and Proprietary Development between Executive and New SPG, a predecessor of the Company, , dated
November 18, 2005 (the “Confidentiality Agreement”) and the agreements evidencing Executive’s RSUs and PSUs, this Agreement shall supersede each agreement entered into between Executive and the Company regarding
Executive’s employment, including, without limitation, the Amended and Restated Severance Benefit Agreement between Avago Technologies Limited, a predecessor of the Company, and Executive dated as of January 23, 2014 (the
“Severance Agreement”), any offer letter, employment agreement, bonus plan or arrangement and/or change in control agreement, and each such agreement shall be deemed terminated and of no further effect as of the Effective Date. 

5.    Executive’s Release of the Company. Executive understands that by agreeing to the release provided by
this Section 5, Executive is agreeing not to sue, or otherwise file any claim against, the Company or any of its employees or other agents for any reason whatsoever based on anything that has occurred as of the date Executive signs this
Agreement. 
 (a)    Released Claims. On behalf of Executive and Executive’s heirs, assigns,
executors, administrators, trusts, spouse and estate, Executive hereby releases and forever discharges the “Releasees” hereunder, consisting of the Company, and each of its owners, affiliates, subsidiaries, predecessors, successors,
assigns, agents, directors, officers, partners, employees and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in
equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which Executive
now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising
out of, based upon or relating to Executive’s hire, employment, remuneration or resignation by the Releasees, or any of them, Claims arising under federal, state or local laws relating to employment, Claims of any kind that may be brought in
any court or administrative agency, including any Claims arising under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000, et seq.; Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the
Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701 et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. § 621; Civil Rights Act of 1866, and Civil Rights Act of 1991; 42 U.S.C. § 1981, et seq.;
Equal Pay Act, as amended, 29 U.S.C. § 206(d); regulations of the Office of Federal Contract Compliance, 41 C.F.R. Section 60, et seq.; The Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.;
the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, as amended,
29 U.S.C. § 2101 et seq.; the California Fair Employment and Housing Act, as amended, Cal. Lab. Code § 12940 et seq.; the California Equal Pay Law, as amended, Cal. Lab. Code §§ 1197.5(a),199.5; the Moore-Brown-Roberti Family
Rights Act of 1991, as amended, Cal. Gov’t Code §§12945.2, 19702.3; California Labor Code §§ 1101, 1102; the California WARN Act, California Labor Code §§ 1400 et. seq; California Labor Code §§
1102.5(a),(b); claims for wages under the California Labor Code and any other federal, state or local laws of similar effect; the employment and civil rights laws of California; Claims for breach of implied or express contract; Claims arising in
tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, slander, defamation, infliction of emotional distress, violation of public policy,
and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees. 

  
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 (b)    Unreleased Claims. Notwithstanding the
generality of the foregoing, Executive does not release the following claims: 
 (i)    Claims for
unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law; 

(ii)    Claims for workers’ compensation insurance benefits under the terms of any worker’s
compensation insurance policy or fund of the Company; 
 (iii)    Claims to continued participation in
certain of the Company’s group benefit plans pursuant to the terms and conditions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended; 

(iv)    Claims to any benefit entitlements vested as the date of Executive’s employment separation,
pursuant to written terms of any Company employee benefit plan; 
 (v)    Claims for indemnification
under any indemnification agreement, the Company’s Bylaws, California Labor Code Section 2802 or any other applicable law; and 

(vi)    Executive’s right to bring to the attention of the Equal Employment Opportunity Commission
claims of discrimination; provided, however, that Executive does release Executive’s right to secure any damages for alleged discriminatory treatment. 

(c)    Acknowledgment. In accordance with the Older Workers Benefit Protection Act of 1990,
Executive has been advised of the following: 
 (i)    Executive should consult with an attorney before
signing this Agreement; 
 (ii)    Executive has been given at least
twenty-one (21) days to consider this Agreement; 

(iii)    Executive has seven (7) days after signing this Agreement to revoke it. If Executive wishes
to revoke this Agreement, Executive must deliver notice of Executive’s revocation in writing, no later than 5:00 p.m. on the 7th day following Executive’s execution of this Agreement to
Debbie Streeter, Vice President of Human Resources, Broadcom Inc., 1320 Ridder Park Drive, San Jose, CA 95131. Executive understands that if he revokes this Agreement, it will be null and void in its entirety, and he will not be entitled to any
payments or benefits provided in this Agreement, other than as provided in Section 2. 

(d)    EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS BEEN ADVISED OF AND IS FAMILIAR WITH THE PROVISIONS OF
CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR
RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.” 

  
 4 

 BEING AWARE OF SAID CODE SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS EXECUTIVE MAY
HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. 
 6.    Non-Disparagement, Transition, Transfer of Company Property and Limitations on Service. Executive further agrees that: 

(a)    Non-Disparagement. Executive agrees that Executive
shall not disparage, criticize or defame the Company, its affiliates and their respective affiliates, directors, officers, agents, partners, stockholders, employees, products, services, technology or business, either publicly or privately. Nothing
in this Section 6(a) shall have application to any evidence or testimony required by any court, arbitrator or government agency. 

(b)    Transfer of Company Property. Executive shall deliver to the Company within ten
(10) business days of the Separation Date all originals and copies of correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents or any other documents concerning the Company’s
customers, business plans, marketing strategies, products, processes or business of any kind and/or which contain proprietary information or trade secrets which are in the possession or control of Executive or Executive’s agents or
representatives. In addition, Executive shall return to the Company within ten (10) business days following the Separation Date all equipment of the Company in Executive’s possession or control, including, without limitation,
Executive’s laptop computer, along with all other equipment and originals and copies of correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents or any other documents concerning the
Company’s customers, business plans, marketing strategies, products, processes or business of any kind and/or which contain proprietary information or trade secrets which are in the possession or control of Executive or Executive’s agents
or representatives. 
 7.    Executive Representations. Executive warrants and represents that (a) Executive
has not filed or authorized the filing of any complaints, charges or lawsuits against the Company or any affiliate of the Company with any governmental agency or court, and that if, unbeknownst to Executive, such a complaint, charge or lawsuit has
been filed on Executive’s behalf, Executive will immediately cause it to be withdrawn and dismissed, (b) Executive has reported all hours worked as of the date of this Agreement and has been paid all compensation, wages, bonuses,
commissions and/or benefits to which Executive may be entitled and no other compensation, wages, bonuses, commissions and/or benefits are due to him, except as provided in this Agreement, (c) Executive has no known workplace injuries or
occupational diseases and has been provided and/or has not been denied any leave requested under the Family and Medical Leave Act or any similar state law, (d) the execution, delivery and performance of this Agreement by Executive does not and
will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which Executive is a party or any judgment, order or decree to which Executive is subject and (e) upon the execution and delivery of this
Agreement by the Company and Executive, this Agreement will be a valid and binding obligation of Executive, enforceable in accordance with its terms. 

8.    No Assignment by Executive . Executive warrants and represents that no portion of any of the matters released
herein, and no portion of any recovery or settlement to which Executive might be entitled, has been assigned or transferred to any other person, firm or corporation not a party to this Agreement, in any manner, including by way of subrogation or
operation of law or otherwise. If any 

  
 5 

 
claim, action, demand or suit should be made or instituted against the Company or any other Releasee because of any actual assignment, subrogation or transfer by Executive, Executive agrees to
indemnify and hold harmless the Company and all other Releasees against such claim, action, suit or demand, including necessary expenses of investigation, attorneys’ fees and costs. In the event of Executive’s death, this Agreement shall
inure to the benefit of Executive and Executive’s executors, administrators, heirs, distributees, devisees and legatees. None of Executive’s rights or obligations may be assigned or transferred by Executive, other than Executive’s
rights to payments hereunder, which may be transferred only upon Executive’s death by will or operation of law. 

9.    Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the laws of the State of California or, where applicable, United States federal law, in each case, without regard to any conflicts of laws provisions or those of any state other than California. 

10.    Arbitration; Venue. Executive acknowledges that Executive and the Company entered into a Mandatory
Employment Arbitration Agreement substantially in the form set forth on Exhibit A (it being understood that for the purposes of such agreement Executive constitutes the Participant referenced therein) in connection with equity awards granted
to Executive during fiscal year 2019 (the “Arbitration Agreement”). All controversies, claims and disputes arising out of or relating to this Agreement shall be resolved as provided in the Arbitration Agreement. Notwithstanding the
foregoing, it is acknowledged that it will be impossible to measure in money the damages that would be suffered if the parties fail to comply with any of the obligations imposed on them under Section 6(a) hereof, and that in the event of any
such failure, an aggrieved person will be irreparably damaged and will not have an adequate remedy at law. Any such person shall, therefore, be entitled to injunctive relief, including specific performance, to enforce such obligations, and if any
action shall be brought in equity to enforce any of the provisions of Section 6(a) of this Agreement, none of the parties hereto shall raise the defense that there is an adequate remedy at law. Any action seeking such injunctive relief, along
with any other action relating to this Agreement that is excluded from the Arbitration Agreement, shall be instituted and prosecuted exclusively in the federal or state courts located in the Alameda County, California, and each of the Company and
Executive waive any right to change of venue. 
 11.    Miscellaneous. This Agreement, collectively with the
Confidentiality Agreement, the Arbitration Agreement and the agreements evidencing Executive’s RSUs and PSUs, comprise the entire agreement between the parties with regard to the subject matter hereof and supersedes, in their entirety, any
other agreements between Executive and the Company with regard to the subject matter hereof, including, without limitation, the Severance Agreement. The Company and Executive acknowledge that Executive’s employment with the Company is and shall
continue to be “at-will,” as defined under applicable law. Executive acknowledges that there are no other agreements, written, oral or implied, and that Executive may not rely on any prior
negotiations, discussions, representations or agreements. This Agreement may not be changed or modified, in whole or in part, except by an instrument in writing signed by Executive and the Chief Executive Officer or other duly authorized officer of
the Company. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement. 

12.    Company Assignment and Successors. The Company shall assign its rights and obligations under this Agreement
to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise). This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns, personnel and legal
representatives. 

  
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 13.    Maintaining Confidential Information. Executive
reaffirms Executive’s obligations under the Confidentiality Agreement. Executive acknowledges and agrees that the vesting in Section 2 shall be subject to Executive’s continued compliance with Executive’s obligations under the
Confidentiality Agreement. For the avoidance of doubt and notwithstanding anything herein to the contrary, nothing in the Confidentiality Agreement or this Agreement will be construed to prohibit Executive from filing a charge with, reporting
possible violations to, or participating or cooperating with any governmental agency or entity, including but not limited to the EEOC, the Department of Justice, the Securities and Exchange Commission, Congress or any agency Inspector General, or
making other disclosures that are protected under the whistleblower, anti-discrimination or anti-retaliation provisions of federal, state or local law or regulation. Executive does not need the prior authorization of the Company to make any such
reports or disclosures, and Executive is not required to notify the Company that Executive has made such reports or disclosures. Furthermore, in accordance with 18 U.S.C. § 1833, notwithstanding anything to the contrary in the Confidentiality
Agreement or this Agreement: (i) Executive shall not be in breach of the Confidentiality Agreement or this Agreement, and shall not be held criminally or civilly liable under any federal or state trade secret law (x) for the disclosure of
a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (y) for the disclosure of a trade secret that is
made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (ii) if Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive may
disclose the trade secret to Executive’s attorney, and may use the trade secret information in the court proceeding, if Executive files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant
to court order. 
 14.    Executive’s Cooperation. After the Separation Date, Executive shall cooperate with
the Company and its affiliates, upon the Company’s reasonable request, with respect to any internal investigation or administrative, regulatory or judicial proceeding involving matters within the scope of Executive’s duties and
responsibilities to the Company or its affiliates during Executive’s employment with the Company, or about which Executive has knowledge (including, without limitation, Executive being available to the Company upon reasonable notice for
interviews and factual investigations, appearing at the Company’s reasonable request to give testimony without requiring service of a subpoena or other legal process, and turning over to the Company all relevant Company documents which are or
may have come into Executive’s possession during Executive’s employment); provided, however, that any such request by the Company shall not be unduly burdensome or interfere with Executive’s personal schedule or
ability to engage in gainful employment. If Executive received from any third party (excluding government entities) notice that he is required to provide testimony or information in any context about the Company or any Releasee, except as prohibited
by applicable law, Executive agrees to provide the General Counsel of the Company with written notice of such notice within twenty-four (24) hours of receiving it. Thereafter, Executive agrees to cooperate with the Company in responding (if
necessary) to such legal process. To the extent legally permissible, Executive also agrees not to testify or provide any information if the Company has informed Executive of its intent to contest the validity or enforceability of any request,
subpoena, or court order until such time as the Company has informed Executive in writing that it consents to Executive’s testimony or has fully exhausted its efforts to challenge any such request, subpoena, or court order. If Executive is
required to provide testimony about the Company or any Releasee, Executive shall testify truthfully at all times. 
 [Signature page
follows] 

  
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 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed and delivered as of the
date indicated next to their respective signatures below. 
  

									
	DATED: September 11, 2019	 		 	 /s/ Bryan Ingram
	 	
		 		 	 Bryan Ingram
	 	
				
	DATED: September 11, 2019	 		 	 BROADCOM INC.
	 	
					
		 		 	By:	 	 /s/ Hock E. Tan
	 	
		 		 	Name:	 	Hock. E. Tan	 	
		 		 	Title:	 	CEO	 	

  
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 Exhibit A 

BROADCOM INC. MANDATORY EMPLOYMENT ARBITRATION AGREEMENT 

Broadcom Inc., together with all direct and indirect subsidiaries of Broadcom Inc., including the Broadcom Inc. entity by which Participant is
employed (collectively, the “Company”) has adopted this Mandatory Employment Arbitration Agreement (the “Agreement”) to govern all disputes between the Company and Participant. 

1.    General Intent of the Parties. It is the intent of the Company and the Participant that all employment
related disputes between the Company and Participant will, to the fullest extent permitted by law, be resolved by final and binding arbitration. 

2.    Covered Claims. “Covered Claims” include any and all claims or controversies between the
Company and any Participant (or between one or more Participants, employees and any present or former officer, director, agent, or employee of the Company or any parent, subsidiary, or other entity affiliated with the Company), including claims or
controversies that are related to employment, compensation, including equity awards, or receipt of or eligibility for benefits arising out of employment, and post-employment disputes including, without limitation, contract claims, tort claims,
common law claims and claims based on any federal, state or local law, statute, or regulation, including but not limited to any claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans
with Disabilities Act, the Family Medical Leave Act, and any other applicable federal or state law or regulation or local ordinance governing employment and compensation; but excluding Excluded Claims. 

3.    Excluded Claims. Excluded Claims are not subject to arbitration. “Excluded Claims” include
(a) claims for unemployment and workers’ compensation benefits, (b) claims under the National Labor Relations Act, (c) administrative claims for unpaid wages or waiting time penalties before the California Division of Labor
Standards Enforcement and any other administrative claims that an employee cannot, as a matter of law, be required to assert solely by arbitration; provided, however, that any appeal from an award or from denial of an award by any administrative
agency with primary jurisdiction shall be arbitrated pursuant to the terms of this Agreement; (d) to the extent DFARS 252.222-7006 applies, any claims under Title VII of the Civil Rights Act of 1964, or
any tort arising out of sexual harassment or sexual assault, unless the Participant further consents to arbitration after the time the dispute arises; and (e) representative claims brought under the California Private Attorney General Act. 

4.    Provisional Remedies. This Agreement does not limit the right of the Company or Participant to seek any
provisional remedy, including, without limitation, injunctive or similar relief, from any court of competent jurisdiction as may be necessary to protect the Company’s or Participant’s rights and interests pending the outcome of an
arbitration, including but not limited to claims for violation of any non-disclosure or other agreement between Participant and the Company for the protection of confidential and proprietary information and
trade secrets and/or invention assignment. 
 5.    Arbitration. Covered Claims shall be resolved by final and
binding arbitration in the County in which the Participant currently works or last worked for the Company. The arbitration will be conducted by a single, neutral arbitrator in accordance with the JAMS (Judicial Arbitration and Mediation Service)
Employment Arbitration Rules and Procedures, which can be found at www.jamsadr.com, or by any other arbitration provider mutually agreed by the Company and Participant. The arbitrator will be selected in accordance with JAMS’s applicable
arbitrator selection rules, or the selection rules of any other agreed arbitration provider. The Company and Participant shall be entitled to more than minimal discovery and the arbitrator shall prepare a written decision containing the essential

  
 A-1 

 
findings and conclusions on which the award is based so as to ensure meaningful judicial review of the decision. The arbitrator shall apply the same substantive law, with the same statutes of
limitation and the same remedies that would apply if the claims were brought in a court of law. 

6.    Enforcement. Either the Company or Participant may bring an action in court to compel arbitration under this
Agreement and to enforce an arbitration award, and shall be entitled to recover fees and costs associated with any such motion to compel arbitration or to enforce an arbitration award. Otherwise, except as provided in Section 4, above, neither
the Company nor Participant shall initiate or prosecute any lawsuit or claim in any way related to any arbitrable claim, including without limitation any claim as to the making, existence, validity, or enforceability of this Agreement. 

7.    Governing Law. The arbitration provisions of this Agreement shall be governed by and enforceable pursuant to
the Federal Arbitration Act. In all other respects for provisions not governed by the Federal Arbitration Act, this Agreement shall be construed in accordance with the laws of the state in which the Participant currently works, or last worked, for
the Company, without reference to conflicts of law principles. 
 8.    Costs of Arbitration. The Company shall
pay all costs unique to arbitration, including without limitation arbitration administrative fees, arbitrator compensation and expenses, and costs of any witnesses called by the arbitrator (“Arbitration Costs”). Unless otherwise
ordered by the arbitrator under applicable law, the Company and Participant shall each bear his, her or its own expenses, such as expert witness fees and attorneys’ fees and costs. Nothing herein shall prevent the Company or Participant from
seeking a statutory award of reasonable attorneys’ fees and costs. 
 9.    Waiver of Right to Jury Trial;
Class Action Waiver. THE COMPANY AND PARTICIPANT UNDERSTAND AND AGREE THAT THIS AGREEMENT CONSTITUTES A WAIVER OF THEIR RIGHT TO A TRIAL BY JURY OF ANY COVERED CLAIMS. PARTICIPANT UNDERSTANDS AND ACKNOWLEDGES THAT THIS
AGREEMENT ALSO CONSTITUTES A WAIVER OF PARTICIPANT’S RIGHT TO BRING ANY CLAIM AS PART OF OR IN CONNECTION WITH A CLASS ACTION LAWSUIT OR CLAIM. THE PARTIES AGREE THAT NO COVERED CLAIM SHALL BE RESOLVED BY A JURY TRIAL AND NO COVERED CLAIM SHALL
BE BROUGHT AS A CLASS ACTION. 
 10.    At-Will Employment. Nothing in
this Agreement is intended to or shall modify the at-will nature of employment at the Company. 

11.    Severability and Survival. If any provision of this Agreement shall be held by a court or the arbitrator to
be invalid, unenforceable, or void, such provision shall be enforced to the fullest extent permitted by law, and the remainder of this Agreement shall remain in full force and effect. The Company’s and Participant’s obligations under this
Agreement shall survive the termination of the employment relationship. 
 12.    Complete Agreement. This
Agreement contains a full and complete statement of the agreements and understandings as between the Company and Participant regarding resolution of disputes between them, and supersedes and replaces all previous agreements, whether written or oral,
express or implied, relating to the subjects covered in this Agreement. 
 13.    Opportunity to Consult with
Counsel. PARTICIPANT ACKNOWLEDGES AND AGREES THAT PARTICIPANT WAS AFFORDED THE OPPORTUNITY TO DISCUSS THIS AGREEMENT WITH LEGAL COUNSEL AND HAS EITHER TAKEN ADVANTAGE OF THAT OPPORTUNITY, OR VOLUNTARILY DECLINED TO DO SO. 

  
 A-2Exhibit 10.1

 

HEARTLAND BANCORP, INC.

 

RESTATED STOCKHOLDER AGREEMENT

 

December 28, 2006

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 1.
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
Section 2.
    	
Transfer Restrictions and Right   of First Refusal
    	
2
    
	
 
    	
 
    	
 
    
	
Section 3.
    	
Transfer Without Consent
    	
4
    
	
 
    	
 
    	
 
    
	
Section 4.
    	
Dividend Policy
    	
5
    
	
 
    	
 
    	
 
    
	
Section 5.
    	
Necessary Actions
    	
7
    
	
 
    	
 
    	
 
    
	
Section 6.
    	
Execution of Documents; Limited   Power of Attorney
    	
7
    
	
 
    	
 
    	
 
    
	
Section 7.
    	
Remedies; Indemnification   Relating to Loss of S Corporation Status
    	
7
    
	
 
    	
 
    	
 
    
	
Section 8.
    	
Binding Effect
    	
8
    
	
 
    	
 
    	
 
    
	
Section 9.
    	
Governing Law
    	
8
    
	
 
    	
 
    	
 
    
	
Section 10.
    	
Severability
    	
8
    
	
 
    	
 
    	
 
    
	
Section 11.
    	
Assumption by Successors
    	
8
    
	
 
    	
 
    	
 
    
	
Section 12.
    	
Amendment and Waiver
    	
8
    
	
 
    	
 
    	
 
    
	
Section 13.
    	
Interpretation
    	
8
    
	
 
    	
 
    	
 
    
	
Section 14.
    	
Nature of Agreement
    	
8
    
	
 
    	
 
    	
 
    
	
Section 15.
    	
Notices
    	
8
    
	
 
    	
 
    	
 
    
	
Section 16.
    	
Counterparts
    	
9
    
	
 
    	
 
    	
 
    
	
Section 17.
    	
Stock Certificate Legends
    	
9
    

 

 

RESTATED STOCKHOLDER AGREEMENT

 

This RESTATED STOCKHOLDER AGREEMENT (this “Agreement”) is dated as of December 28, 2006 by and among HEARTLAND BANCORP, INC., a Delaware corporation (the “Company”), and those persons who are listed as stockholder signatories to this Agreement or who otherwise became a party to this Agreement from time to time in the capacity as a stockholder of the Company (individually referred to herein as a “Stockholder” and collectively as the “Stockholders”).

 

R  E  C  I  T  A  L  S:

 

A.                                    The Stockholders desire to cause the Company to continue to be taxed under the provisions of Subchapter S of the Internal Revenue Code of 1986, as amended (the “Code”).

 

B.                                    The Stockholders and the Company desire that all shares of the voting common stock, $1.00 par value per share and the series A common stock, $1.00 par value per share (collectively, the “Common Stock”), of the Company be held and transferred by the Stockholders in accordance with the terms of this Agreement in order to assure the continued qualification of the Company to be treated as an “S corporation” and to promote and maintain corporate stability;

 

C.                                    The parties hereto believe that it is desirable for the Stockholders and the Company to enter into this Agreement which contains certain agreements and restrictions relating to the Common Stock.

 

A  G  R  E  E  M  E  N  T:

 

NOW THEREFORE, in consideration of the mutual covenants herein contained and for the other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows;

 

Section 1.                                          Definitions. As used in this Agreement, the following capitalized terms shall have the following meanings:

 

“Affiliate” means, with respect to any specified Person, any other Person directly or indirectly controlling or controlled by or under common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Allowable Number of Stockholders” means five (5) fewer stockholders than the maximum number of Stockholders that an S Corporation is permitted to have pursuant to Section 1361(b)(1) of the Code, as determined under Section 1361(c) of the Code.

 

“Allowable Number of Record Holders” means three hundred (300) Stockholders, as determined pursuant to Rule 12g5-l promulgated by the Securities and Exchange Commission.

 

 

“Code” means the Internal Revenue Code of 1986, as amended, and any successor statutes thereto.

 

“Equity Securities” means all outstanding shares of Common Stock and all shares of the Common Stock issuable upon the exercise, exchange or conversion of any rights, options, warrants or other outstanding securities of the Company, if any.

 

“Person” means any individual, trust, estate, employee stock ownership plan, corporation, partnership, limited liability company, joint venture, association, joint-stock company, unincorporated organization, business entity organized under foreign law or government or agency or political subdivision thereof, including any “person” as defined in Section 13(d) (3) of the Securities Exchange Act of 1934, as amended.

 

“Qualified Individual” means an individual citizen or a resident alien of the United States of America.

 

“Qualified Entity” means an entity that is permitted to be an S Corporation stockholder under Section 1361 of the code.

 

“Stock Interest” means, with respect to any specified Person, the shares of Common Stock, the interest therein owned by the Person and the right to acquire the Common Stock upon the exercise, exchange or conversion of any rights, options, warrants or other outstanding securities of the Company.

 

Any reference herein to “outstanding shares” means issued and outstanding shares and does not include treasury shares.

 

Section 2.                                          Transfer Restrictions and Right of First Refusal.

 

(a)                                 Transfer Restrictions. Except as provided below in Section 2(b), Section 2(c) or Section 2(d), or with the express prior written consent of the Company, which consent or approval may be withheld in the sole and absolute discretion of the Company, each of the Stockholders hereby agrees that he or she shall not, directly or indirectly, voluntarily or involuntarily, sell, assign, transfer, pledge, hypothecate, encumber or otherwise dispose of any of his or her Stock Interest (collectively described in this Agreement as “transfer”), and that any purported transfer made in violation of this Agreement shall be absolutely null and void, ab initio, and shall confer no rights whatsoever on the purported transferee as against the Company or the Stockholders.

 

(b)                                 Right of First Refusal Prior to Transfer. In the event that any Stockholder shall at any time desire to sell any of the Stock Interest owned by such Stockholder (the “Selling Stockholder”) and shall have received a bona fide written offer for the purchase thereof from an independent third-party’ that is either a Qualified Individual or a Qualified Entity that does not own any shares of Common Stock (the “Outside Investor”), for a price payable in cash (not notes or property), such Stockholder shall not sell his or her shares without both (i) consent as set forth in Section 2(a) and (ii) first offering the Stock Interest for sale to the Company subject to the terms and conditions set forth pursuant to this Section 2(b), which right of the Company to accept such shall be commonly known as a right of first refusal.

 

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(i)                                     Offer by Selling Stockholder, The offer by the Selling Stockholder shall be given by certified or registered mail to the Company, and shall consist of an offer to sell the Stock Interest owned by the Selling Stockholder, to which shall be attached a statement of the Selling Stockholder’s bona fide intention to transfer such shares, and a true and correct copy of the Outside Investor’s written offer. The statement shall specify all terms of the written offer from the Outside Investor including the name and address of the Outside Investor, the purchase price, the Stock Interest involved in the proposed transfer, the tax status of the Outside Investor for the purpose of continuing the Company’s status as an S corporation under the Code, the time of the proposed purchase, the terms of payment and all other material details of the transaction.

 

(ii)                                  Acceptance of Offer. Within thirty (30) days after the receipt of such offer, the Company may, at its option, purchase the Stock Interest being sold by the Selling Stockholder on the same terms as the offer made by the Outside Investor, provided, however. that unless all of the Stock Interest to be sold is bought by the Company, the Selling Stockholder shall, subject to the requirement of consent set forth in Section 2(a), be free to sell said Stock Interest to the Outside Investor under the terms provided in subparagraph (iii) of this Section 2(b).  The Company shall exercise the option to purchase by giving written notice thereof, by certified or registered mail, to the Outside Investor and to the Selling Stockholder.  The notice shall specify a date for the purchase (the “Purchase Date”) which shall be the date set forth in the bona fide offer by the Outside Investor or not more than thirty (30) days after the date of such notice, whichever occurs later, and said purchase shall be at the principal business office of the Company or shall be at such other place that is mutually agreeable to the parties.  Notwithstanding anything contained herein to the contrary, the Company shall have the absolute right to assign to any Person its right to purchase such Stock Interest.

 

(iii)                               Allowance of Transfer.  If the Selling Stockholder’s offer to sell is not fully acceptable by the Company or a purchase does not occur by the Purchase Date even though the Company accepted the offer to sell, then the Selling Stockholder may make the transfer to the Outside Investor; provided, however, that (A) such sale must receive prior consent of the Company as set forth in Section 2(a), (B) such sale be made in strict accordance with the terms and conditions stated in the Outside Investor’s offer, (C) the Outside Investor must become a party to this Agreement, and (D) such sale must not result in the Company having more than the Allowable Number of Stockholders or the Allowable Number of Record Holders; and, provided, further, that if such Selling Stockholder shall fail to make such transfer within seventy-five (75) days of the date on which the Selling Stockholder gave notice to the Company or by the Purchase Date, whichever occurs earlier, such Stock Interest shall again become subject to all the restrictions of this Agreement.

 

(iv)                              Purchase Price and Terms. The purchase price and terms of payment for all Stock Interests purchased by the Company pursuant to the right of Fust refusal as described in this Section 2 shall be equal to the purchase price offered by the Outside Investor and shall be payable in accordance with the terms of the offer made by the Outside Investor.

 

(c)                                  Right of First Refusal Prior to Foreclosure. Subject to Section 3(a)(ii), in the event that any Stockholder (the “Pledging Stockholder”) shall at any time desire to assign, transfer,

 

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pledge, hypothecate or encumber any of its Stock interest to a Qualified Individual or a Qualified Entity for the purpose of securing the obligation of the Pledging Stockholder or any other Person to repay a loan or to render any other performance (the “Pledged Interest”), the Pledging Stockholder shall not engage in such transaction without first entering into an agreement with the other parties to such transaction (collectively, the “Pledgee”) that expressly prohibits the Pledgee from taking itself, or transferring to any person other than the Pledging Stockholder, title to the Stock Interest without first offering the Pledged Interest for sale to the Company in the same manner as set forth in Section 2(b) as if the Pledgee were a Selling Stockholder; except that the price at which the Pledgee shall offer the Pledged Interest to the Company shall be the lesser of; (i) the amount owed by the Pledging-Stockholder to the Pledgee for which the Stock Interest has been assigned, transferred, pledged, hypothecated or encumbered; or (ii) 80% of the book value of such Pledged Interest computed as of the last day of the most recently ended calendar quarter. If the Company fails to purchase all of the Pledged Interest, subject to Section 3, the Pledgee shall be free to dispose of the Pledged Interest in the manner provided by applicable law. Notwithstanding anything contained herein to the contrary, the Company shall have the absolute right to assign to any Person its right to purchase such Pledged Interest.

 

(d)                                 Permitted Transfers.  Subject to Section 3(a)(ii), a Stockholder shall be permitted to transfer, without the consent of the Company, all or any portion of its Stock Interest to: (i) a Quality Entity for the sole benefit of such Stockholder; or (ii) any other Stockholder.

 

Section 3.                                          Transfer Without Consent.

 

(a)                                 Prohibited Transfers.  No Stockholder or other Person (including a Pledgee) shall:

 

(i)                                     Specific Prohibitions.  Transfer any Stock Interest, regardless of whether done voluntarily or by operation of law or other involuntary method, except as may be specifically permitted by Section 2.

 

(ii)                                  General Prohibitions. Take any action which would cause or result in the termination or revocation of the Company’s status as an “S corporation” under the Code, including but not limited to a transfer to: (A) any Person(s) if, upon completion of such transfer, the Company would have more than the Allowable Number of Stockholders or the Allowable Number of Record Holders; or (B) any Person that i$ not a Qualified Individual or a Qualified Entity.

 

(b)                                 Prohibited Transfers Void. Any voluntary or involuntary transfer (e.g., which involuntary transfer could occur by operation of law or other involuntary method) in violation of Section 3(a) shall be null and void, ab initio, and without legal effect.

 

(c)                                  Option to Purchase. Any transfer in violation of Section 3(a), whether voluntary or involuntary, shall result in the Company having an option (“Option”) to purchase from the transferee Stockholder all, but not less than all, of the relevant Stock Interest. Exercise of the Option shall be by means of written notice of intent to purchase the stock, delivered to the transferee Stockholder within sixty (60) days from the date of discovery by the Company of the involuntary transfer. If the Company exercises the Option, the closing of the purchase shall occur on the fifth business day after delivery of such notice, and the purchase price shall be the least of

 

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the following that apply: (i) 80% of the book value of the Stock Interest; (ii) the fair market value of the Stock Interest transferred, (as such value is determined by multiplying the value of each equity security’ by the number of equity securities transferred); (iii) the price paid to the transferor Stockholder for the Stock Interest transferred; or (iv) in the case where a lender proposes to take ownership of the Stock Interest in satisfaction of debts owing to such lender by the transferor-Stockholder, the amount owed by such transferor-Stockholder to such lender for which the Stock Interest has been pledged. The purchase price will be payable 20% at closing and the balance payable in four annual installments, each consisting of 20% of the purchase price plus interest on the unpaid balance at the lowest rate allowable for Federal income tax purposes without the treatment under the Code of any unpaid interest as imputed income of the payee. Book value shall be determined as of the end of the month immediately preceding such transfer and calculated in accordance with generally accepted accounting principles with goodwill excluded from such calculation.

 

(d)                                 Adjustments for Transfers.  In the event that any transfer by operation of law or other involuntary method causes or results in the inadvertent termination of the Company’s “S corporation” status, the Company’s directors and Stockholders shall make any adjustments for the period of termination that are consistent with the treatment of the Company as an “S corporation” or that are proposed other by the Internal Revenue Service, and shall take any and all other actions that are reasonably deemed by the Company or its counsel to be necessary or appropriate to continue (or reinstate) the Company’s status as an “S corporation.”

 

(e)                                  Termination of Stock Interest.  In the event that a Stockholder terminates his or her entire interest in the Company during the taxable year of the Company, whether voluntarily or by operation of law or other involuntary method of transfer, the Company may elect under Section 1377(a)(2) of the Code to have the rules provided in Section 1377(a)(1) applied as if the taxable year consisted of two (2) taxable years with the first one ending on the date of the Stockholder’s termination. If the Company so elects, it shall execute the necessary form for exercising such election, and each of the Company and the Stockholder shall execute the necessary Stockholder’s consent notwithstanding that such Stockholder may have disposed of his or her Stock Interest prior to such termination, and shall authorize the filing of such election and such consents with the appropriate Internal Revenue Service Center or office. In addition, the Stockholder shall take such other action as may be deemed necessary or advisable by the Company or its counsel to exercise such election.

 

Section 4.                                          Dividend Policy.

 

(a)                                 Payment of Dividends. Except to the extent prohibited or limited by the Delaware Act or other applicable law, rule, regulation or order (including, but not limited to, any bank regulatory limitations or restrictions on the Company’s ability to declare dividends), or by any credit, loan or other agreement, the Company will use its reasonable efforts to pay dividends on the Company’s outstanding shares of Common Stock with respect to each taxable year in an amount no less than the sum of: (i) the Company’s taxable income for federal income tax purposes for each such taxable year multiplied by a tax rate (the “Federal Rate”) which will be the highest marginal federal income tax rate (without taking into account any phase-out of lower marginal rates and personal exemptions) applicable to ordinary income earned by individuals in the calendar year within which the Company’s taxable income is computed; plus (ii) the Company’s taxable

 

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income for state income tax purposes for each such taxable year of the Company multiplied by a tax rate (the “State Rate”) which will be the state tax rate in the State of Illinois applicable to the Company’s income dial is taxable to the Stockholders with reference to such taxable year; less (iii) the federal income tax benefit (based on the Federal Rate) of a deduction in such calendar year for the state income taxes computed in (b) above whether or not such deduction is actually available. Such dividends are hereinafter referred to as “Tax Payment Dividends.”  Thereafter, to the extent the Company’s board of directors, in its sole discretion, determines that there is additional cash available for distribution, additional dividends may be declared.

 

(b)                                 Uniform Treatment. The Company shall in all events be uniform with respect to each share of its Common Stock and each Stockholder acknowledges that the dividends received from the Company may be less than the Federal, state and other income taxes actually imposed on such Stockholder’s share of the Company’s taxable income or on dividends received from the Company. Each Stockholder also acknowledges that the Company is subject to various bank regulatory agencies which may impose limitations or restrictions on the ability of the Company to pay dividends and, also, that the Company may, in connection with obtaining financing or otherwise, enter into a credit, loan or other agreement containing restrictions on the Company’s ability to pay dividends and that current principal and interest payments are expected to be paid to any such lender, before any dividends are declared.  Nothing contained in this Section 4 or otherwise in this Agreement shall limit or restrict the Company’s ability to declare and pay additional dividends from time to time as the Company may determine under applicable law.

 

(c)                                  Proportionality of Dividends.  It is the goal of the Company that dividends will be declared with respect to each taxable year so that, insofar as is possible, each person who held Common Stock during such year shall receive a proportion of the total dividends paid with respect to such year which is at least equal to the proportion of the Company’s income for such year which is includable in such peon’s income for federal income tax purposes. Each Stockholder acknowledges that various factors, including the timing of a Stockholder’s acquisition and disposition of Common Stock, principal and interest debt payments by the Company and the requirements of state law and/or federal income tax principles that all dividends must be uniform with respect to each share of the Company’s Common Stock, may affect the ability of the Company to achieve this goal and each Stockholder acknowledges that the Company (and the Company’s directors and officers) shall not be liable for any difference between dividends actually received and the dividends which would have been received had the goal been met.

 

(d)                                 Payment Dates. Unless prohibited by applicable law. rule, regulation or order, or by any credit, loan or other agreement binding on the Company, the Company will use its reasonable efforts to declare and pay dividends from time to time as the Company’s board of directors may determine: (i) at least equal to the Company’s best estimate of the amount of Tax Payment Dividends which will be required to be paid with respect to the relevant calendar year pursuant to Section 4(a); or (ii) at the sole election of the Company, (b) at least equal to the actual amount which was payable on account of the preceding calendar year pursuant to Section 4(a). If the total of the dividends paid with respect to any calendar year is less than the amount finally determined to be due under Section 4(a) with respect to such year, the Company will use its reasonable efforts to make a final dividend payment with respect to such year, in the amount of the shortfall, such dividend to be paid no later than April 10 of the following year.

 

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(e)                                  Audit Adjustments. In addition to the dividends and the final dividend referred to in Section 4(d), the Company will, subject to the requirements of the Delaware Act and any other applicable law, rule, regulation or order, use its reasonable efforts to pay additional dividends if, as a result of audit adjustments or any other adjustment to the Company’s taxable income for any year, the taxable income of the Company attributable to the Stockholders for any year is increased.

 

(f)                                   Omitted Dividends: Other Adjustments. IT any dividend payable under this Section 16 is not paid because of prohibitions imposed by any applicable law, rule, regulation or order, by any credit, loan or other agreement binding on the Company, the Company shall, when it becomes legally permissible to do so, use its reasonable efforts to pay dividends in an amount equal to the omitted dividends. In the event the Company determines that it has distributed amounts in excess of or less than those called for under Section 4(d), the Company may decrease or increase, as the case may be, subsequent dividends to effect the purposes of Section 4(a), subject to the requirements of Section 4(c).

 

Section 5.                                          Necessary Actions.  Each Stockholder agrees to take all actions as may be necessary or desirable to give full force and effect to the terms of this Agreement, including any actions that may be required by the Delaware General Business Corporation Law, as amended (the “Delaware Act”), or the Code and including voting to approve and adopt any bylaw or charter amendments in furtherance of or to give effect to the provisions of this Agreement.

 

Section 6.                                          Execution of Documents; Limited Power of Attorney.

 

(a)                                 Execution of Documents.  Each Stockholder shall execute and deliver such election forms, consents, agreements, instruments and other documents and perform such acts as the Company may reasonably deem to be necessary or appropriate to: (i) permit the Company to be an “S corporation” for federal and, where applicable, state and local income tax purposes pursuant to Subchapter S of the Code and comparable state and local income tax laws and regulations and (ii) fulfill the purpose and intent of this Agreement including as provided under Section 5.

 

(b)                                 Limited Power of Attorney. Each Stockholder hereby irrevocably constitutes and appoints the executive officers of the Company, and each of them, as his or her true and lawful attorneys-in-fact and in his or her name, place and stead, to make, execute, acknowledge and file any of the documents referenced in or contemplated by Section 6(a) and any amendments thereto which are to be made in accordance with this Agreement. Each Stockholder expressly understands and intends that the grant of the foregoing power of attorney is coupled with an interest and shall survive any assignment or transfer of a Stock Interest.

 

Section 7.                                          Remedies; Indemnification Relating to Loss of S Corporation Status.  The parties hereto agree that, if a party or other Person bound by this Agreement fails to perform its obligations hereunder, the Person or Persons which may suffer harm or be damaged by such failure cannot adequately be compensated by monetär) damages. Therefore, it is agreed that the rights and the performance of obligations under this Agreement shall be specifically enforceable in addition to such other or further remedy as a court may deem appropriate. Notwithstanding the foregoing, if any Stockholder, through gross negligence, bad faith, or reckless or willful disregard of his obligations or duties under Section 3 or any other provision of this Agreement breaches any provision of this Agreement, and such breach results in the termination of the Company’s status

 

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as an S corporation, such Stockholder (the “Indemnitor”) shall indemnify each of the other Stockholders (each, an “Indemnitee”) for the loss of federal and state income tax benefits reasonably expected to result from such termination. In addition, the Indemnitor shall indemnify each Indemnitee for all federal and state income taxes payable by such Indemnitee as a result of the receipt of any indemnification payment required by this Section 7. The Indemnitor shall make the indemnification payments required by this Section 7 within thirty (30) days after the date notice of such breach is first given to the Indemnitor by the Company or any Indemnitee.

 

Section 8.                                          Binding Effect.  This Agreement shall inure to the benefit of and be binding on the parties hereto and their respective heirs, executors, administrators, personal and legal representatives, successors and assigns.

 

Section 9.                                          Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the conflicts of laws rules thereof.

 

Section 10.                                   Severability. If any particular provision of this Agreement is adjudicated to be invalid or unenforceable, such provision shall be deemed deleted and the remainder of this Agreement, nevertheless, shall remain unaffected and fully enforceable.  Further, to the extent any provision herewith is deem enforceable by virtue of its scope but may be made enforceable by limitation thereof, the parties hereto agree the same shall, nevertheless, be enforceable to the fullest extent permissible.

 

Section 11.                                   Assumption by Successors. It is expressly agreed that any person, firm, association, trust or corporation which shall acquire all or any part of the Stock Interest in any arm’s length transaction and for value or by reason of any transfer or successorship permitted under this Agreement (and including the transferee of a “bankrupt Stockholder” for the purposes hereof), shall succeed to all of the rights of (except as otherwise herein provided), and shall be bound by all of the obligations of and restrictions upon, a Stockholder under this Agreement. Contemporaneously with any such transfer or succession, the transferee or successor shall expressly assume, in writing, all of the obligations of a Stockholder under this Agreement and shall execute and deliver to the Company and the Stockholders a counterpart of this Agreement.

 

Section 12.                                   Amendment and Waiver. This Agreement may be amended, modified or supplemented, and compliance with any provision hereof may be waived, only with the written consent of the holders of at least two-thirds (2/3) of the outstanding shares of the voting common stock of the Company.

 

Section 13.                                   Interpretation. The headings of the sections contained in this Agreement arc solely for the purpose of reference, are not part of the agreement of the parties and shall not affect the meaning or interpretation of this Agreement.

 

Section 14.                                   Nature of Agreement. Under this Agreement each Stockholder retains ownership and possession of the Stock Interest of the Company owned by each of them. This Agreement is not and shall not be construed as a voting trust agreement under the Delaware Act,

 

Section 15.                                   Notices. All notices and other communications provided for or permitted hereunder shall be in writing and shall be deemed to have been duly given if delivered personally

 

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or sent by registered or certified mail (return receipt requested) postage prepaid, or by telecopier to the most current address of such Stockholder on the records of the Company.

 

Section 16.                                   Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same instrument.

 

Section 17.                                   Stock Certificate Legends.  All certificates evidencing shares of the Company’s Common Stock shall bear the following legends:

 

“THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RIGHTS AND TO CERTAIN OBLIGATIONS AND RESTRICTIONS WITH RESPECT TO TRANSFER AND PURCHASE AS SET FORTH IN THAT CERTAIN RESTATED STOCKHOLDER AGREEMENT DATED AS OF DECEMBER 28, 2006 (AS SUCH AGREEMENT MAY BE AMENDED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME), A COPY OF WHICH MAY BE OBTAINED FROM THE ISSUER WITHOUT CHARGE.  THE STOCKHOLDER AGREEMENT ALSO PROVIDES THAT, UPON THE TRANSFER OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE, CERTAIN OF THESE RIGHTS, OBLIGATIONS AND RESTRICTIONS MAY CONTINUE TO BE BINDING ON THE TRANSFEREE.

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). OR THE SECURITIES LAWS OF ANY STATE. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED. OR OTHERWISE TRANSFERRED IN THE ABSENCE OF REGISTRATION OR EXEMPTION UNDER THE ACT AND OTHER APPLICABLE LAWS AND REGULATIONS GOVERNING THE OFFER AND SALE OF THE SECURITIES .AND, IN THE CASE OF EXEMPTION, THE ISSUER RECEIVES A SATISFACTORY OPINION OF COUNSEL AS TO THE AVAILABILITY OF ANY SUCH EXEMPTIONS AND THAT REGISTRATION IS NOT REQUIRED.

 

THE CORPORATION WILL FURNISH WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO REQUESTS THE POWERS, DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES AND/OR RIGHTS. WITHOUT LIMITATION OF THE FOREGOING, THE TRANSFER AND OWNERSHIP OF COMMON STOCK AND SERIES A COMMON STOCK ARE SUBJECT TO NUMEROUS RESTRICTIONS AS SET FORTH IN THE CORPORATION’S CERTIFICATE OF INCORPORATION (AS AMENDED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME).”

 

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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered as of the day and year first above written by the Company and the Stockholders.

 

	
 
    	
HEARTLAND   BANCORP, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Allen C. Drake
    
	
 
    	
Name:
    	
Allen   C. Drake
    
	
 
    	
Title:
    	
Secretary and Treasurer
    

 

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STOCKHOLDER SIGNATURE PAGES

 

The undersigned agrees to all of the terms of the Heartland Bancorp, Inc. (the “Company”) Stockholder Agreement and agrees to be bound by all the provisions thereof. The undersigned further constitutes and appoints the executive officers of the Company the true and lawful attorneys-in-fact of the undersigned to make, execute, acknowledge and file any documents as provided in Section 6 of said Stockholder Agreement, which documents the undersigned hereby joins in and hereby authorizes these signature pages to be attached thereto if the executive officers or any of them, deem it necessary or advisable.

 

	
/s/   Allen C. Drake
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
GEORGE   DRAKE FAMILY TRUST
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Allen C. Drake
    	
 
    	
/s/   Allen C. Drake
    
	
Elinor   J. Drake Grandchildren’s Trust for Matthew Drake, Allen C. Drake, Trustee
    	
 
    	
Elinor   J. Drake Grandchildren’s Trust for Monica Drake, Allen C. Drake, Trustee
    
	
 
    	
 
    	
 
    
	
/s/   Allen C. Drake
    	
 
    	
/s/   Allen C. Drake
    
	
Elinor   J. Drake Grandchildren’s Trust for John A. Drake, Allen C. Drake, Trustee
    	
 
    	
Elinor   J. Drake Grandchildren’s Trust for Jeffrey Drake, Allen C. Drake, Trustee
    
	
 
    	
 
    	
 
    
	
/s/   Allen C. Drake
    	
 
    	
/s/   Allen C. Drake
    
	
Elinor   J. Drake Grandchildren’s Trust for Carl T. Drake, Allen C. Drake, Trustee
    	
 
    	
Elinor   J. Drake Grandchildren’s Trust for David Dudley, Allen C. Drake, Trustee
    
	
 
    	
 
    	
 
    
	
/s/   Allen C. Drake
    	
 
    	
/s/   Allen C. Drake
    
	
Elinor   J. Drake Grandchildren’s Trust for James J. Drake, Allen C. Drake, Trustee
    	
 
    	
Elinor   J. Drake Grandchildren’s Trust for Joel T. Dudley, Allen C. Drake, Trustee
    
	
 
    	
 
    	
 
    
	
/s/   Allen C. Drake
    	
 
    	
/s/   Allen C. Drake
    
	
Elinor   J. Drake Grandchildren’s Trust for Sarah S. Drake, Allen C. Drake, Trustee
    	
 
    	
Elinor   J. Drake Grandchildren’s Trust for Andrea Dudley, Allen C. Drake, Trustee
    
	
 
    	
 
    	
 
    
	
/s/   Allen C. Drake
    	
 
    	
/s/   Allen C. Drake
    
	
Elinor   J. Drake Grandchildren’s Trust for Chris A. Drake, Allen C. Drake, Trustee
    	
 
    	
Elinor   J. Drake Grandchildren’s Trust for Craig Dudley, Allen C. Drake, Trustee
    
	
 
    	
 
    	
 
    
	
/s/   Allen C. Drake
    	
 
    	
/s/   Allen C. Drake
    
	
Elinor   J. Drake Grandchildren’s Trust for Michael Drake, Allen C. Drake, Trustee
    	
 
    	
Elinor   J. Drake Grandchildren’s Trust for Jennifer Goemans, Allen C. Drake, Trustee
    
	
 
    	
 
    	
 
    
	
/s/   Allen C. Drake
    	
 
    	
 
    
	
Elinor   J. Drake Grandchildren’s Trust for Melissa Drake, Allen C. Drake, Trustee
    	
 
    	
 
    

 

 

STOCKHOLDER SIGNATURE PAGES

 

The undersigned agrees to all of the terms of the Heartland Bancorp, Inc. (the “Company”) Stockholder Agreement and agrees to be bound by all the provisions thereof. The undersigned further constitutes and appoints the executive officers of the Company the true and lawful attorneys-in-fact of the undersigned to make, execute, acknowledge and file any documents as provided in Section 6 of said Stockholder Agreement, which documents the undersigned hereby joins in and hereby authorizes these signature pages to be attached thereto if the executive officers or any of them, deem it necessary’ or advisable.

 

	
/s/   Carl T. Drake
    	
 
    	
/s/   Matthew S. Drake
    
	
Carl   T. Drake
    	
 
    	
Matthew   S. Drake
    
	
 
    	
 
    	
 
    
	
/s/   Minnie D. Bryson 
    	
 
    	
/s/   Sarah S. Drake
    
	
Minnie   D. Bryson Estate
    	
 
    	
Sarah   S. Drake
    
	
 
    	
 
    	
 
    
	
/s/   Allen C. Drake
    	
 
    	
/s/   Marcia J. Dudley
    
	
Allen   C. Drake
    	
 
    	
Marcia   J. Dudley
    
	
 
    	
 
    	
 
    
	
/s/   Arthur M. Drake
    	
 
    	
/s/   Fred I. Drake
    
	
Arthur   M. Drake
    	
 
    	
Fred   I. Drake
    
	
 
    	
 
    	
 
    
	
/s/   Merida L. Drake
    	
 
    	
/s/   Ann Pfister
    
	
Merida   L. Drake
    	
 
    	
Ann   Pfister
    
	
 
    	
 
    	
 
    
	
/s/   Elinor J. Drake
    	
 
    	
/s/   Mary Pfister
    
	
Elinor   J. Drake
    	
 
    	
Mary   Pfister
    
	
 
    	
 
    	
 
    
	
/s/   Jamie L. Drake
    	
 
    	
/s/   Leonard J. Rich
    
	
Jamie   L. Drake
    	
 
    	
Leonard   J. Rich
    
	
 
    	
 
    	
 
    
	
/s/   George E. Drake
    	
 
    	
/s/   Deanelle Schieber
    
	
George   E. Drake
    	
 
    	
Deanelle   Schieber
    
	
 
    	
 
    	
 
    
	
/s/   James J. Drake
    	
 
    	
/s/   Rita M. Drake
    
	
James   J. Drake
    	
 
    	
Rita   M. Drake
    
	
 
    	
 
    	
 
    
	
/s/   Martin K. Dudley
    	
 
    	
/s/   David M. Dudley
    
	
Martin   K. Dudley
    	
 
    	
David   M. Dudley
    
	
 
    	
 
    	
 
    
	
/s/   Joel T. Dudley
    	
 
    	
/s/   Andrea L. Dudley
    
	
Joel   T. Dudley
    	
 
    	
Andrea   L. Dudley
    
	
 
    	
 
    	
 
    
	
/s/   John A. Drake
    	
 
    	
 
    
	
John   A. Drake
    	
 
    	
 
    

 

 

STOCKHOLDER SIGNATURE PAGES

 

The undersigned agrees to all of the terms of the Heartland Bancorp, Inc. (the “Company”) Stockholder Agreement and agrees to be bound by all the provisions thereof. The undersigned further constitutes and appoints the executive officers of the Company the true and lawful attorneys-in-fact of the undersigned to make, execute, acknowledge and file any documents as provided in Section 6 of said Stockholder Agreement, which documents the undersigned hereby joins in and hereby authorizes these signature pages to be attached thereto if the executive officers or any of them, deem it necessary or advisable.

 

	
/s/   Martin K. Dudley
    	
 
    	
/s/   Jamie L. Drake
    
	
Martin   K. Dudley, Custodian for Craig R. Dudley
    	
 
    	
Jamie   L. Drake, Custodian for Monica J. Drake
    
	
 
    	
 
    	
 
    
	
/s/   Jamie L. Drake
    	
 
    	
/s/   Jennifer Goemans
    
	
Jamie   L. Drake, Custodian for Jeffrey G. Drake
    	
 
    	
Jennifer   Goemans
    
	
 
    	
 
    	
 
    
	
/s/   Christopher A. Drake
    	
 
    	
/s/   Michael L. Drake
    
	
Christopher   A. Drake
    	
 
    	
Michael   L. Drake
    
	
 
    	
 
    	
 
    
	
/s/   Melvin O. Moehle
    	
 
    	
/s/   Patrick F. Busch
    
	
Melvin   O. Moehle, Trustee
    	
 
    	
Patrick   F. Busch
    
	
 
    	
 
    	
 
    
	
/s/   John A. Drake
    	
 
    	
/s/   Melissa L. Drake
    
	
John   A. Drake
    	
 
    	
Melissa   L. Drake
    
	
 
    	
 
    	
 
    
	
/s/   Stephen P. Drake
    	
 
    	
/s/   Stuart B. Drake
    
	
Stephen   P. Drake
    	
 
    	
Stuart   B. Drake
    
	
 
    	
 
    	
 
    
	
/s/   Philip Duffy
    	
 
    	
 
    
	
Philip   Duffy

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