Document:

EX-10.1

  Exhibit 10.1

  EMPLOYMENT AGREEMENT

    

  THIS AGREEMENT (this “Agreement”) is entered into as of the 21 day of July, 2022 by NICHOLAS FINANCIAL, INC., a British Columbia corporation (the “Company”), and IRINA NASHTATIK (the “Employee”).

    

  WITNESSETH:

    

  WHEREAS, the Employee desires to be employed by the Company on the terms and conditions hereinafter set forth.

    

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

    

  1.     EMPLOYMENT AND DUTIES. Subject to the terms and conditions of this Agreement, the Company agrees to employ the Employee, and the Employee hereby agrees to serve the Company, as Chief Financial Officer.  The Employee’s employment hereunder began on or around July 1, 2022 (the “Effective Date”) and this Agreement shall have retroactive effect to such date.  The Employee shall report directly to the Company’s Chief Executive Officer (irrespective of whether such role is held on an interim or permanent basis) and shall render to the Company such management and policy-making services of the type customarily performed by persons serving in similar capacities with other employers that are similar to the Company, together with such other duties with which she is charged by the Company’s Articles or Notice of Articles (or any similar governance instruments) and subject to the overall direction and control of the Company’s Board of Directors.  The Employee accepts such employment and agrees to devote her best efforts and substantially all of her business time, skill, labor and attention to the performance of such duties. The Employee agrees not to engage in or be concerned with any other commercial duties or pursuits during the Term (as hereinafter defined); provided, however, that the Employee may be involved in a passive capacity in a non-competitive business subject to the prior written approval of the Company’s Board of Directors.  Furthermore, the Employee shall assume and competently perform such reasonable responsibilities and duties as may be assigned to her from time to time by the Board of Directors of the Company. To the extent that the Company shall have any parent, subsidiaries, affiliated corporations, partnerships, or joint ventures (collectively “Related Entities”), the Employee shall perform such duties to promote the Related Entities and their respective interests to the same extent as the interests of the Company without additional compensation. At all times, Employee agrees that she has read and will abide by, and prospectively will read and abide by, any employee handbook, policy, or practice that the Company or Related Entities has or hereafter adopts with respect to its executive officers or its employees generally, including without limitation, the Company’s Insider Trading Policy and Code of Ethics and Business Conduct.  

    

  2.   TERM. The employment of the Employee under this Agreement commences on the Effective Date and will continue for a period of twenty-four (24) months (the “Initial Term”) expiring on June 30, 2024, unless earlier terminated pursuant to the terms of this Agreement. At the end of the Initial Term, this Agreement shall continue to renew automatically for a one 

   

  

   

  (1)-year term, and thereafter, on the anniversary of the last day of the Initial Term, this Agreement shall renew automatically for successive one (1)-year terms (each such one (1)-year term, a “Renewal Term,” and the Initial Term and any and all Renewal Terms collectively, the “Term”) unless the Company provides to the Employee, at least sixty (60) days prior to the expiration of the Initial Term or Renewal Term, as applicable, written notification that it intends not to renew this Agreement.  Notwithstanding anything to the contrary herein, this Agreement may be terminated in accordance with Section 5 hereof (with the exception of the obligations of the parties hereunder that shall survive any such termination).  Notwithstanding the foregoing, if a Change of Control (as defined in Appendix A hereto) occurs less than twelve months prior to the end of the Initial Term or during any Renewal Term, this Agreement shall be extended automatically for a one (1)-year renewal period beginning on the date of the Change of Control (a “Post-Change of Control Renewal Period”). Expiration of this Agreement will not affect the rights or obligations of the parties hereunder arising out of, or relating to, circumstances occurring prior to the expiration of this Agreement, which rights and obligations will survive the expiration of this Agreement.

    

  3.  COMPENSATION.

    

  (a)   Annual Base Salary. The Employee shall receive, and the Company shall pay, an annual base salary of such amount as shall be determined by the Company’s Board of Directors or its Compensation Committee (or other committee performing similar functions) (the “Committee”) from time to time, but not less than $220,000 (the “Base Salary”).   The Base Salary may be increased by the Committee in its sole discretion.  The Base Salary shall be payable in equal installments in accordance with the policy then prevailing for the Company’s employees.   Following a Change of Control, the Employee’s annual base salary shall not be decreased and, during the Post-Change of Control Renewal Period, the Employee’s base salary shall be increased on an annual basis by an amount at least equal to the average base salary increase, expressed as a percentage, provided to executives of the Company of comparable status and position to the Employee.  The Employee also shall be entitled, during the Term, to participate in and receive payments from all incentive compensation plans as may be adopted by the Company and as are made available to other employees of the Company.

    

  (b)    Bonus.  The Employee shall receive, and the Company shall pay, such bonuses as shall be determined by or on behalf of the Committee.

     

  (c)     Payments. All amounts paid pursuant to this Agreement shall be subject to withholding or deduction by reason of the Federal Insurance Contribution Act, Federal income tax, state and local income tax, if any, and comparable laws and regulations.

    

  (d)     Other Benefits. The Employee shall be reimbursed by the Company for all reasonable and customary travel and other business expenses incurred by her in the performance of her duties hereunder in accordance with the Company’s standard policy regarding expense reimbursement and verification practices. The Employee shall be entitled to that number of weeks paid vacation per year that may be made available to executive officers of the Company, and shall be eligible to participate in such pension, life insurance, health insurance, disability insurance and other employee benefits plans, if any, which the Company 

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  may from time to time make available to its executive officers generally on such terms as are available to such employees; provided, however, that premiums for the Employee’s, her husband’s and her children’s health insurance (i.e., medical, dental and vision coverage) shall be paid by the Company.    On and after a Change of Control, the Employee shall be included: (i) to the extent eligible thereunder (which eligibility shall not be conditioned on Employee’s salary grade or on any other requirement which excludes persons of comparable status to Employee unless such exclusion was in effect for such plan or an equivalent plan immediately prior to the Change of Control), in any and all plans providing benefits for the Company’s salaried employees in general (including but not limited to group life insurance, hospitalization, medical, dental, and long-term disability plans) and (ii) in plans provided to executives of the Company of comparable status and position to Employee (including but not limited to deferred compensation, split-dollar life insurance, supplemental retirement, stock option, stock appreciation, stock bonus, cash bonus and similar or comparable plans); provided that in no event shall the aggregate level of benefits under the plans described in clause (i) and the plans described in clause (ii), respectively, in which Employee is included be less than the aggregate level of benefits under plans of the Company of the type referred to in such clause, respectively, in which Employee was participating immediately prior to the Change of Control.

    

  (e)    Stock Purchase Matching Program.  The Company shall match 100% of the purchases of common stock of the Company that the Employee makes during the time period commencing on the Effective Date and ending on June 30, 2024 (the “Stock Purchase Matching Period”) (so long as the Employee remains employed through the date of such purchase); provided, however, that (i) such shares of common stock issued by the Company pursuant to the preceding clause (the “Matching Stock”) shall be restricted stock and shall vest as follows:  (v) one-third (1/3) of the Matching Stock shall vest on the first anniversary of the date on which the Employee purchased the common stock that triggered the Company’s matching obligation with respect to such Matching Stock (a “Triggering Purchase”), (w) one-third (1/3) of the Matching Stock shall vest on the second anniversary of the date of the Triggering Purchase, and (x) one-third (1/3) of the Matching Stock shall vest on the third anniversary of the date of the Triggering Purchase, provided, further, that such shares of Matching Stock shall only vest if the Employee is employed by the Company on such vesting date (subject to accelerated vesting as specified in Section 5(f) and 5(g) hereof), and (ii) the Company’s matching obligation shall be limited to a number of shares of Matching Stock corresponding to (y) $50,000 for Triggering Purchases occurring between the Effective Date and June 30, 2023 and (z) $50,000 for Triggering Purchases occurring between July 1, 2023 and June 30, 2024.   

    

  4.     NONCOMPETITION, NON-DISCLOSURE AND STOCK OWNERSHIP REQUIREMENTS.

    

  (a)   Employee acknowledges that her services are of a special, unique, extraordinary and intellectual character, and her position with the Company places her in a position of confidence and trust with customers, suppliers and employees of the Company and other Related Entities. The Employee further acknowledges that the rendering of services under this Agreement necessarily requires the disclosure to her of Confidential Information (as defined below) of the Company and/or Related Entities. The Employee and the Company agree that both prior to and during her course of employment with the Company, the Employee had, has and will 

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  continue to develop personal relationships with the Company’s financiers, customers, suppliers and employees, and that the Employee holds a position of substantial trust and confidence. As a

  consequence, the Employee agrees that it is reasonable and necessary for the protection of goodwill and legitimate business interests of the Company and Related Entities that the Employee make the covenants contained herein, that the covenants are a material inducement for the Company to employ the Employee and to enter into this Agreement, and that the covenants are given as an integral part of an incident to this Agreement.

    

  (b)    The Employee covenants and agrees that during the Term of her employment by the Company, and thereafter for a period of one (1) year following the termination of the Employee’s employment with the Company, she will not:

    

  (i)  directly or indirectly engage in, continue in or carry on the business of the Company or any Related Entity, or any business substantially similar thereto, including owning or controlling any financial interest in, any corporation, partnership, firm or other form of business organization which competes with or is engaged in or carries on any aspect of such business or any business substantially similar thereto;

    

  (ii)  directly or indirectly, assist, promote or encourage any employees or clients, or potential employees or clients, of the Company or Related Entities to terminate or discontinue their relationship in order to pursue opportunities or employment with any competitor of the Company or Related Entities;

    

  (iii)  consult with, advise or assist in any way, whether or not for consideration, any corporation, partnership, firm or other business organization which is now, becomes or may become a competitor of the Company or any Related Entity in any aspect of their respective businesses during the Employee’s employment with the Company, including, but not limited to: advertising or otherwise endorsing the products of any such competitor; soliciting customers or otherwise serving as an intermediary for any such competitor; or loaning money or rendering any other form of financial assistance to or engaging in any form of business transaction whether or not on an arms’ length basis with any such competitor; or

    

  (iv)  engage in any practice the purpose of which is to evade the provisions of this Agreement or to commit any act which Employee knows or should know will likely be detrimental to the successful continuation of, or which adversely affects, the business or the Company;

    

  provided, however, that the foregoing shall not preclude the Employee’s ownership of not more than 5% of the equity securities of a corporation which has such securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

    

  (c)   The Employee acknowledges that the inventions, innovations, software, trade secrets, business plans, financial strategies, finances, and all other confidential or proprietary information with respect to the business and operations of the Company and Related Entities are valuable, special and unique assets of the Company. The Employee agrees not to, at 

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  any time during her employment by the Company (whether during the Term hereof or otherwise), disclose, directly or indirectly, to any person or entity, or use or authorize or propose

   to authorize any person or entity to use any confidential or proprietary information with respect to the Company or Related Entities without the prior written consent of the Company including, without limitation, information as to the financial condition, results of operations, identities of clients or prospective clients, products under development, acquisition strategies or acquisitions under consideration, pricing or cost information, marketing strategies or any other information relating to the Company or any of the Related Entities which could be reasonably regarded as confidential. However, this does not include information which is or shall become generally available to the public other than as a result of disclosure by the Company or Related Entities or any of their agents, affiliates or representatives or a person to whom any of them has provided such information.

    

  (d)   The Employee agrees that the geographic scope of this covenant not to compete shall extend to (i) the states of Alabama, Arizona, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Nevada, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Utah and Wisconsin, which constitute the geographic area in which the Company has operated its business at some time during the one year preceding the date of this Agreement; and (ii) such broader geographic area where the Company conducts business at any time during the Employee’s employment by the Company (whether during the Term hereof or otherwise).

    

  (e)   In the event of any breach of the above covenants not to compete, the Employee recognizes that the remedies at law will be inadequate and that in addition to any relief at law which may be available to the Company for such violation or breach and regardless of any other provision contained in this Agreement, the Company shall be entitled to equitable remedies (including an injunction) and such other relief as a court may grant after considering the intent of this Section 4.

    

  (f)   In the event a court of competent jurisdiction determines that the provisions of the above covenants not to compete are excessively broad as to duration, geographic scope, prohibited activities or otherwise, the parties agree that such covenants shall be reduced or curtailed to the extent necessary to render them enforceable.

    

  5.   TERMINATION.

    

  (a)   Death. The Employee’s employment hereunder shall terminate upon her death.

    

  (b)   Disability. If, during the Term, the Employee becomes physically or mentally disabled in accordance with the terms and conditions of any disability insurance policy covering the Employee or, if due to such physical or mental disability, the Employee becomes unable for a period of more than one hundred eighty (180) consecutive days to perform her duties hereunder on substantially a full-time basis as determined by a medical professional reasonably agreed upon by the Employee and the Company, the Company may, at its option, 

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  terminate the Employee’s employment hereunder upon not less than thirty (30) days’ written notice of termination.

    

  (c)    Cause. The Company may terminate this Agreement at any time with Cause. As used in this Agreement, “Cause” shall mean the following: (1) a material violation of the Company’s policies or practices which reasonably justifies termination; (2) conviction of a felony, as evidenced by a binding and final judgment, order or decree of a court of competent jurisdiction; (3) the commission by the Employee of any act which would reasonably be expected to materially injure the reputation, business, or business relationships of the Company or Related Entities; or (4) any material breach by Employee of this Agreement. The Company may terminate this Agreement with Cause as defined in clauses (1) and (4) above upon fifteen (15) business days’ prior written notice (the “Cause Notification Period”) to Employee, but such termination shall only become effective in the event of Employee’s failure to cure the applicable breach or violation, to the reasonable satisfaction of Company, prior to the end of the Cause Notification Period. Should the Company choose to relieve the Employee of her duties during the Cause Notification Period, the Company shall continue to pay the Employee her salary through the end of the Cause Notification Period.  Such salary shall be paid in accordance with the Company’s normal payroll procedures applicable to Base Salary.  The Company may terminate this Agreement without notice at any time with Cause as defined in clause (2) or (3) above. Notwithstanding anything in the foregoing to the contrary, during a Post-Change of Control Renewal Period, the Company may terminate this Agreement with Cause only as defined in clause (2) or (4) above. In the event of a termination with Cause, the Company shall be relieved of all its obligations to the Employee provided for by this Agreement, and all payments to the Employee hereunder shall immediately cease and terminate except as set forth above with respect to the 15-day Cause Notification Period in the case of termination with Cause as defined in clause (1) and (4).

    

  (d)   Involuntary Termination by Employee. The Employee may terminate her employment hereunder upon (i) a good faith determination by the Employee that there has been a material breach of the Agreement by the Company, (ii) a material adverse change in the Employee’s working conditions or status, (iii) a Significant Relocation of the Employee’s principal office (“Significant Relocation” being defined as a relocation of 50 miles from the Employee’s current principal office), or (iv) during a Post-Change of Control Renewal Period, a good faith determination by the Employee that there has been any of the following: a breach of the Agreement by the Company, any adverse change in the Employee’s working conditions, status, authority, duties, responsibilities (including but not limited to a requirement that the Employee report to a corporate officer other than the Chief Executive Officer) or any requirement that the Employee relocate her principal office to a location that is more than ten (10) miles from the location of the Employee’s principal office immediately prior to the Change of Control (any one of the preceding constituting “Good Reason”), by delivering written notice of termination to the Company indicating in reasonable detail the facts and circumstances alleged to provide a basis for such termination, and shall cease performing the Employee’s duties hereunder on the date which is ten (10) days after delivery of the notice, which date shall also be the date of termination of the Employee’s employment and the final day of the ten (10)-day “Good Reason Notification Period”, but such termination shall only become effective in the 

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  event of the Company’s failure to cure the applicable breach or violation, to the reasonable satisfaction of the Employee, prior to the end of the Good Reason Notification Period.

    

  (e)     Voluntary Termination by Employee. The Employee agrees to provide the Company with at least twenty (20) business days’ (“Termination Notice Period”) prior written notice of her intent to terminate employment voluntarily. Failure to provide such notice terminates the Employee’s entitlement to payment of accrued, unused benefits, if any. However, the Company reserves the right to terminate the Employee before the end of the Termination Notice Period, provided that the Company pays the Employee the salary that she would have received from the date of the last payroll payment to the end of the Termination Notice Period. Such salary shall be paid in accordance with the Company’s normal payroll procedures applicable to Base Salary. During the Termination Notice Period, the Employee agrees to make a good faith effort to perform the duties described hereunder. If, during the Term, the Employee voluntarily terminates her employment with the Company, the Company’s obligations, including payment obligations, under this Agreement shall cease, except that the Company shall pay the Employee the salary that she would have received from the date of the last payroll payment to the end of the Termination Notice Period in accordance with the Company’s normal payroll procedures applicable to Base Salary.

    

  (f)     Regular Severance Payments. In the event of a termination of the Employee’s employment occurring other than at the end of the Initial Term or a Renewal Term in compliance with the notification requirements of Section 2 and other than during a Post-Change of Control Renewal Period, (x) by the Company other than for Cause or (y) by the Employee in a manner which satisfies Section 5(d):

    

  (i)     The Company shall pay the Employee (subject to the provisions of Section 6 of this Agreement) a one-time, lump-sum severance payment equal to: (A) the Employee’s Base Salary in effect at the time of such termination (“Regular Severance Payment”) multiplied by (B) the greater of (x) 0.75 and (y) a fraction, the numerator of which is the number of days remaining until the end of the Initial Term (if the termination occurs during the Initial Term) or the end of the then-running Renewal Term (if the termination occurs during such Renewal Term), and the denominator of which is 365 days. The Regular Severance Payment shall be paid to the Employee in cash equivalent on the date that is sixty (60) days after the date of termination of the Employee’s employment; provided that, to the extent required to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), all or a portion of the Regular Severance Payment shall be delayed until the first day of the seventh (7th) month following the month in which the termination of the Employee’s employment occurs, without interest thereon.

   

  (ii)(1)       All restrictions on any restricted stock or restricted stock unit awards made to the Employee by the Company or its affiliates shall lapse such that Employee is fully and immediately vested in such awards upon such termination of employment; (2) any stock options or stock appreciation rights granted to Employee pursuant to the Company’s or its affiliate’s equity-based incentive plan(s) shall become fully and immediately vested upon such termination of employment; (3) any performance shares, performance units or similar performance-based equity awards granted to Employee pursuant to the Company’s or its 

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  affiliate’s equity-based incentive plan(s) shall be deemed earned on a pro-rated basis according to the portion of the performance period that has elapsed through the date of the termination of employment as if all performance requirements had been satisfied at the target level (or such higher level as would have been achieved if performance through the date of the termination of employment had continued through the end of the performance period); and (4) 100% of Matching Stock held by Employee at the time of termination shall become immediately vested.  

    

  (g)     Change of Control Severance Payments.  In the event of a termination of the Employee’s employment occurring during a Post-Change of Control Renewal Period (x) by the Company other than for Cause or (y) by the Employee in a manner which satisfies Section 5(d):

    

  (i)     The Company shall pay the Employee (subject to the provisions of Section 6 of this Agreement) a one-time, lump-sum severance payment equal to 100% of the Employee’s Base Salary for one year of employment in effect at the time of such termination (“Change of Control Severance Payment”).  The Change of Control Severance Payment shall be paid to the Employee in cash equivalent on the date that is sixty (60) days after the date of termination of the Employee’s employment; provided that, to the extent required to comply with Section 409A of the Code, all or a portion of the Change of Control Severance Payment shall be delayed until the first day of the seventh (7th) month following the month in which the termination of the Employee’s employment occurs, without interest thereon.

    

  (ii)(1)   All restrictions on any restricted stock or restricted stock unit awards made to the Employee by the Company or its affiliates shall lapse such that Employee is fully and immediately vested in such awards upon such termination of employment; (2) any stock options or stock appreciation rights granted to Employee pursuant to the Company’s or its affiliate’s equity-based incentive plan(s) shall become fully and immediately vested upon such termination of employment; (3) any performance shares,  performance units or similar performance-based equity awards granted to Employee pursuant to the Company’s or its affiliate’s equity-based incentive plan(s) shall be deemed earned on a pro-rated basis according to the portion of the performance period that has elapsed through the date of the termination of employment as if all performance requirements had been satisfied at the target level (or such higher level as would have been achieved if performance through the date of the termination of employment had continued through the end of the performance period); and (4) 100% of Matching Stock held by Employee at the time of termination shall become immediately vested.

    

  (h)    Additional Benefits.  In the event of a termination triggering payments under Sections 5(f) or 5(g) above, the Employee shall be entitled to the following additional benefits:

    

  (i)   Until the earlier of twelve (12) months after the date of Employee’s termination of employment or such time as Employee has obtained new employment and is covered by benefits which in the aggregate are at least equal in value to the following benefits, Employee, Employee’s husband, and Employee’s children shall continue to be covered, at the expense of the Company, by the same or equivalent hospitalization, medical, dental and vision coverage as they had received (or, if higher, as was required hereunder), and Employee 

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  shall continue to be covered, at the expense of the Company, by the same or equivalent life insurance coverage as Employee had received (or, if higher, as was required hereunder, in each case immediately prior to Employee’s termination of employment, subject to the following: After the end of the COBRA continuation period, if such hospitalization, medical or dental coverage is provided under a health plan that is subject to Section 105(h) of the Code, benefits payable under such health plan shall comply with the requirements of Treasury regulation section 1.409A-3(i)(1)(iv) and, if necessary, the Company shall amend such health plan to comply therewith; and if provision of any such health benefits would subject the Company or its benefits arrangements to a penalty or adverse tax treatment, then the Company shall provide a cash payment to Employee in an amount reasonably determined by the Company to be equivalent to the COBRA premiums for similar benefits.

    

  (ii)    The Company shall bear up to $7,500 in the aggregate of fees and expenses of consultants and/or legal or accounting advisors engaged by the Employee to advise the Employee as to matters relating to the computation of benefits due and payable under this Section 5.

    

  Notwithstanding anything to the contrary in this Agreement, if a Change of Control occurs and the Employee’s employment with the Company is terminated (other than a termination due to Employee’s death or as a result of Disability) during the period of 180 days prior to the date on which the Change of Control occurs, and if it is reasonably demonstrated by Employee that such termination of employment (i) was at the request of a third party who has taken steps reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or in anticipation of a Change of Control, then for all purposes of this Agreement such termination of employment shall be deemed a termination following such Change of Control.

    

  (i)   General Release.  Notwithstanding anything to the contrary herein, the payments and benefits specified in Sections 5(f), 5(g) and 5(h) above shall be in consideration for, contingent on and subject to the Company receiving an executed general release from the Employee containing terms reasonably satisfactory to the Company that is effective and non-revocable by the 60th day after the date of termination of the Employee’s employment.

    

  (j)    Benefits Through Termination Date.  The following shall apply upon termination of the Employee’s employment: Notwithstanding anything to the contrary herein contained, the Employee shall receive all compensation and other benefits to which she was entitled under this Agreement or otherwise as an employee of the Company through the termination date, including payments of base salary accrued hereunder through the calendar month in which such termination occurs.

    

  6.     TAX PROVISIONS.

    

  (a)   Limitation on Parachute Payments. Notwithstanding any other provision of this Agreement, if any portion of the Severance Payment or any other payment under this Agreement, or payments to or for the benefit of the Employee under any other agreement or plan (collectively, the “Change of Control Benefits”), would constitute an “excess parachute payment,” then the Change of Control Benefits to be made to the Employee shall be reduced 

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  such that the value of the aggregate Change of Control Benefits that the Employee is entitled to receive shall be One Dollar ($1) less than the maximum amount which the Employee may receive without becoming subject to the tax imposed by Section 4999 of the Code (or any successor provision) or which the Company may pay without loss of deduction under Section 280G(a) of the Code (or any successor provision); provided that the foregoing reduction in the amount of Change of Control Benefits shall not apply if the after-tax value to the Employee of the Change of Control Benefits prior to reduction in accordance herewith is greater than the after-tax value to the Employee if the Change of Control Benefits are reduced in accordance herewith. For purposes of this Agreement, the terms “excess parachute payment” and “parachute payments” shall have the meanings assigned to them in Code Section 280G, and such “parachute payments” shall be valued as provided therein.

    

  (b)    Opinion. For purposes of this Section, within thirty (30) days after notice by one party to the other of its belief that there is a payment or benefit due the Employee that will result in an excess parachute payment as defined in Section 280G of the Code or any successor provision thereto, the Employee and the Company shall obtain, at the Company’s expense, the opinion (which need not be unqualified) of nationally recognized tax counsel or tax accounting firm (“Tax Counsel”) selected by the Company’s independent auditors and acceptable to the Employee, which sets forth (A) the “base amount” within the meaning of Section 280G; (B) the aggregate present value of the payments in the nature of compensation to the Employee as described in Section 280G(b)(2)(A) (ii); (C) the amount and present value of any “excess parachute payment”  within the meaning of Section 280G(b)(1) without regard to the limitations of this Section 6; (D) the after-tax value of the Change of Control Benefits if the reduction in Change of Control Benefits contemplated under this Section 6 did not apply; and (E) the after-tax value of the Change of Control Benefits taking into account the reduction in Change

  of Control Benefits contemplated under this Section 6. For purposes of determining the after-tax value of the Change of Control Benefits, the Employee shall be deemed to pay federal income taxes and employment taxes at the highest marginal rate of federal income and employment taxation in the calendar year in which the payment is to be made and state and local income taxes at the highest marginal rates of taxation in the state and locality of the Employee’s domicile for income tax purposes on the date the payment is to be made, net of the maximum reduction in federal income taxes that may be obtained from deduction of such state and local taxes.

    

  In the event that a reduction is to be made under this Section 6, the Change of Control Benefits shall be reduced or eliminated by applying the following principles, in order: (i) the payment or benefit with the higher ratio of the parachute payment value to present economic value (determined using reasonable actuarial assumptions) shall be reduced or eliminated before a payment or benefit with a lower ratio; (ii) the payment or benefit with the later possible payment date shall be reduced or eliminated before a payment or benefit with an earlier payment date; and (iii) cash payments shall be reduced prior to non-cash benefits; provided, however, that if the foregoing order of reduction or elimination would violate Section 409A of the Code, then the reduction shall be made pro rata among the payments or benefits included in the Change of Control Benefits (on the basis of the relative present value of the parachute payments). For purposes of this Agreement, the value of any noncash benefits or any deferred payment or benefit, and all present economic values, shall be determined by the Company’s independent auditors in accordance with the principles of Sections 280G, which determination shall be 

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  evidenced in a certificate of such auditors addressed to the Company and the Employee. Such opinion shall be dated as of the date of termination of the Employee’s employment and addressed to the Company and the Employee and shall be binding upon the Company and the Employee.

    

  The provisions of this Section 6(b), including the calculations, notices and opinions provided for herein shall be based upon the conclusive presumption that the compensation earned by the Employee pursuant to the Company’s compensation programs prior to a change of control is reasonable; provided, however, that in the event such Tax Counsel so requests in connection with the opinion required by this Section 6(b), the Company shall obtain at its expense, and Tax Counsel may rely on in providing the opinion, the advice of a firm of recognized Employee compensation consultants as to the reasonableness of any item of compensation to be received by the Employee.

    

  (c)   Effect of Change in Law. In the event that the provisions of Sections 280G and 4999 of the Code (or any successor provisions) are repealed, this Section 6 shall cease to be effective on the effective date of such repeal. The parties to this Agreement recognize that final regulations promulgated under Section 280G of the Code may affect the amounts that may be paid under this Agreement and agree that, upon issuance of such final regulations, this Agreement may be modified as the parties hereto may in good faith deem necessary in light of the provisions of such regulations to achieve the purposes of this Agreement, and that consent to such modification shall not be unreasonably withheld.

    

  7.  SUCCESSORS.

    

  (a)   If the Company sells, assigns or transfers all or substantially all of its business and assets to any Person (as defined in Appendix A hereto) or if the Company merges into or consolidates or otherwise combines (where the Company does not survive such combination) with any Person (any such event, a “Sale of Business”), then the Company shall assign all of its right, title and interest in this Agreement as of the date of such event to such Person, and the Company shall cause such Person, by written agreement in form and substance reasonably satisfactory to the Employee, to expressly assume and agree to perform from and after the date of such assignment all of the terms, conditions and provisions imposed by this Agreement upon the Company. Failure of the Company to obtain such agreement prior to the effective date of such Sale of Business shall be a material breach of this Agreement. In case of such assignment by the Company and of assumption and agreement by such Person, as used in this Agreement, “Company” shall thereafter mean such Person which executes and delivers the agreement provided for in this Section 7 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law, and this Agreement shall inure to the benefit of, and be enforceable by, such Person. The Employee shall, in the Employee’s discretion, be entitled to proceed against any or all of such Persons, any Person which theretofore was such a successor to the Company (as defined in the first paragraph of this Agreement) and the Company (as so defined) in any action to enforce any rights of the Employee hereunder. Except as provided in this Subsection, this Agreement shall not be assignable by the Company. This Agreement shall not be terminated by the voluntary or involuntary dissolution of the Company.

    

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  (b)  This Agreement and all rights of the Employee shall inure to the benefit of and be enforceable by the Employee’s personal or legal representatives, executors, administrators, heirs and beneficiaries. All amounts payable to the Employee under Sections 3 and 5 of this Agreement if the Employee had lived shall be paid, in the event of the Employee’s death, to the Employee’s estate, heirs and representatives; provided, however, that the foregoing shall not be construed to modify any terms of any benefit plan of the Company, as such terms are in effect on the date of the Employee’s death, that expressly govern benefits under such plan in the event of the Employee’s death.

    

  8.  SEVERABILITY. The provisions of this Agreement shall be regarded as divisible, and the parties agree that if any of said provisions or any part hereof shall under any circumstances be deemed or declared invalid, inoperative or unenforceable, then the validity and enforceability of the remainder of such provisions or parts hereof and the applicability thereof shall not be affected thereby.

    

  9.  AMENDMENT. This Agreement may not be amended or modified at any time except by written instrument executed by the Company and the Employee.

    

  10.  WITHHOLDING. The Company shall be entitled to withhold from amounts to be paid to the Employee hereunder any federal, state or local withholding or other taxes or charges which it is from time to time required to withhold; provided, that the amount so withheld shall not exceed the minimum amount required to be withheld by law (unless the Employee has otherwise indicated in writing). The Company shall be entitled to rely on an opinion of nationally

  recognized tax counsel if any question as to the amount or requirement of any such withholding shall arise.

    

  11.   CLAWBACK.  The Employee agrees that the compensation and benefits provided by the Company under this Agreement or otherwise is subject to recoupment or clawback (a) if the Company is required to file an adverse restatement of earnings and the Committee determines that the Employee was involved, or had knowledge of or should have known that the earnings at issue were false or misleading when originally filed and the false or misleading earnings resulted in compensation to the Employee that otherwise would not have been earned, vested or paid, upon any material financial misstatements or omissions, (b) for loan losses improperly reserved for, (c) under any applicable Company claw back or recoupment policy that is generally applicable to the Company's executives, as may be in effect from time to time, or (d) as required by law.  

    

  12.   NOTICE. For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when actually received, whether hand-delivered, sent by telecopier, facsimile transmission or other electronic means of transmitting written documents (as long as receipt is acknowledged) or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed as follows: 

    

  If to the Employee, to the Employee at the Employee’s address then reflected in the records of the Company.

  12

  

   

    

  If to the Company, to:

    

  Nicholas Financial, Inc.

  2454 McMullen Booth Road

  Building C

  Clearwater, Florida 33759

  Attn: Chief Executive Officer

    

  or to such other address as either party may have furnished to the other in writing in accordance herewith, except that a notice of change of address shall be effective only upon receipt.

    

  13.   NO WAIVER; ENTIRE AGREEMENT. No waiver by any party hereto of any breach of this Agreement by any other party hereto shall be deemed a waiver of any similar or dissimilar term or condition at the same or at any prior or subsequent time. This Agreement and any equity award agreements between the Company and the Employee constitute the entire agreement between the parties hereto with respect to the Employee’s employment by the Company and there are no agreements or representations, oral or otherwise, expressed or implied, with respect to or related to the employment of the Employee which are not set forth in this Agreement or such equity award agreements.

    

  14.    NO ASSIGNMENT. Except as expressly set forth herein, no party shall assign any of his, her or its rights under this Agreement without the prior written consent of the other

  party and any attempted assignment without such prior written consent shall be null and void and without legal effect.

    

  15.   COUNTERPARTS; FACSIMILE SIGNATURES. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be effective upon the execution and delivery by any party hereto of facsimile copies of signature pages hereto duly executed by such party; provided, however, that any party delivering a facsimile signature page covenants and agrees to deliver promptly after the date hereof two (2) original copies to the other party hereto.

    

  16.   GOVERNING LAW.

    

  (a)   The validity, interpretation, construction and performance of this Agreement shall be governed by the internal laws of the State of Florida, except that Section 15(b) shall be construed in accordance with the Federal Arbitration Act if arbitration is chosen by the Employee as the method of dispute resolution.

    

  (b)   Any dispute arising out of this Agreement shall, at the Employee’s election, be determined by either (i) arbitration under the rules of the American Arbitration Association then in effect (but subject to any evidentiary standards set forth in this Agreement), in which both parties shall be bound by the arbitration award, or (ii) by litigation. Whether the dispute is to be settled by arbitration or litigation, the venue for such arbitration or litigation, as 

  13

  

   

  the case may be, shall be Tampa, Florida. The parties consent to personal jurisdiction in each trial court in the selected venue having subject matter jurisdiction notwithstanding their residence or situs, and each party irrevocably consents to service of process in the manner provided hereunder for the giving of notices.

    

  17.      CERTAIN RULES OF CONSTRUCTION; CODE SECTION 409A.

    

  (a)   No party shall be considered as being responsible for the drafting of this Agreement for the purpose of applying any rule construing ambiguities against the drafter or otherwise. No draft of this Agreement shall be taken into account in construing this Agreement. Any provision of this Agreement which requires an agreement in writing shall be deemed to require that the writing in question be signed by the Employee and an authorized representative of the Company.

    

  (b)   The Company and the Employee intend the terms of this Agreement to be in compliance with Section 409A of the Code and the regulations promulgated thereunder. To the maximum extent permissible, any ambiguous terms of this Agreement shall be interpreted in a manner that avoids a violation of Section 409A of the Code. The phrase “termination of the Employee’s employment” and similar phrases in this Agreement shall mean the Employee’s “separation from service” as defined in Section 409A of the Code.   With respect to any reimbursement or in-kind benefit arrangements of the Company provided for herein that constitute deferred compensation for purposes of Section 409A of the Code, the following conditions shall be applicable: (i) the amount eligible for reimbursement, or in-kind benefits

  provided, under any such arrangement in one calendar year may not affect the amount eligible for reimbursement, or in-kind benefits to be provided, under such arrangement in any other calendar year (except that the health and dental plans may impose a limit on the amount that may be reimbursed or paid if such limit is imposed on all participants), (ii) any reimbursement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred (or such earlier deadline as may be imposed by the Company’s applicable generally applicable policies and procedures), and (iii) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

    

  (c)    The Company does not guarantee the tax treatment or tax consequences associated with any payment or benefit, including but not limited to consequences related to Section 409A of the Code.

    

  (d)    If, after the date of a Change of Control of the Company, any payment amount or the value of any benefit under this Agreement is required to be included in the Employee’s income prior to the date such amount is actually paid or the benefit provided as a result of the failure of this Agreement (or any other arrangement that is required to be aggregated with this Agreement under Code Section 409A) to comply with Code Section 409A, then the Employee shall receive a distribution, in a lump sum, within 90 days after the date it is finally determined that the Agreement (or such other arrangement that is required to be aggregated with this Agreement) fails to meet the requirements of Section 409A of the Code; such distribution shall equal the lesser of (i) the amount required to be included in the Employee’s income as a 

  14

  

   

  result of such failure and (ii) the benefits otherwise due hereunder, and shall in any event reduce the amount of payments or benefits otherwise due hereunder.

    

  18.   DOLLAR AMOUNTS.  All dollar amounts set forth herein refer to U.S. dollars.

    

  19.   HEADINGS. The headings herein contained are for reference only and shall not affect the meaning or interpretation of any provision of this Agreement.

    

  20.   ATTORNEYS’ FEES AND COSTS.  In the event a dispute arises between the parties under this Agreement and legal action is instituted, the prevailing party shall be entitled to recover its reasonable costs and attorney fees (including paralegal fees) from the non-prevailing party.  As used herein, costs and attorneys’ fees (including paralegal fees) include, but are not limited to, any costs and attorneys’ fees incurred in any trial court, appellate court and/or bankruptcy proceeding.

    

  [Signature Page Follows]

    

   

  15

  

   

   

    

    

  IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

    

    

    

  			
	  
	NICHOLAS FINANCIAL, INC.

	  
	By:
	/s/ Mike Rost

	  
	  
	Name: Mike Rost

	  
	  
	Title:  Interim CEO

    

    

  			
	  
	EMPLOYEE:

	  
	 By:
	/s/ Irina Nashtatik

	  
	  
	Name: Irina Nashtatik
Title: CFO

    

    

    

   

   

   

   

   

   

   

   

   

   

  16

  

   

   

   

  17

  

   

   

    

  APPENDIX A

    

  For purposes of this Agreement, a Change of Control shall be deemed to have occurred upon the earlier of:  

       i.     The acquisition, without prior approval by the Board, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of one hundred percent (100%) of either:

  A.  the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or

  B.  the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Company Voting Securities”); or

  ii.    All individuals who, as of the date of this Agreement, constituted the Board (the “Incumbent Board”) cease for any reason to constitute the Board, provided that any individual becoming a director subsequent to the date of this Agreement, whose election or nomination for election by the Company’s shareholders was approved by a unanimous vote of the directors then comprising the Incumbent Board, shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act); or

  iii.    Consummation of a reorganization, merger, amalgamation, arrangement, consolidation or other business combination (a “Business Combination”), in each case, with respect to which none of the individuals and entities who were the respective beneficial owners of the Outstanding Company Common Stock and Company Voting Securities immediately prior to such Business Combination,  following such Business Combination beneficially own, directly or indirectly, any of the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination; or

  iv.     A complete liquidation or dissolution of the Company or sale or other disposition of all or substantially all of the assets of the Company other than to a corporation with respect to which, following such sale or disposition, any of the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors are then owned beneficially, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding 

   

  

   

  Company Common Stock and Company Voting Securities immediately prior to such sale or disposition in substantially the same proportion as their ownership of the Outstanding Company Common Stock and Company Voting Securities, as the case may be, immediately prior to such sale or disposition; or

  v.      A determination by the Board of Directors of the Company, in view of the then current circumstances or impending events, that a change of control of the Company has occurred or is imminent, which determination shall be made for the specific purpose of triggering the operative provisions of this Agreement.

  If a payment is considered deferred compensation subject to the provisions of Code Section 409A, then the foregoing definition shall be deemed amended to the minimum extent necessary to comply with Code Section 409A.Exhibit 4.1

 

[Form of 3.200% Senior Note due 2029]

 

	
    UNLESS
    THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR BANK, S.A./N.V., AS OPERATOR OF THE EUROCLEAR SYSTEM (“EUROCLEAR”)
    AND CLEARSTREAM BANKING, SOCIÉTÉ ANONYME (“CLEARSTREAM,” AND TOGETHER WITH EUROCLEAR, “EUROCLEAR
    / CLEARSTREAM”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED
    IS REGISTERED IN THE NAME OF THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
    REPRESENTATIVE OF EUROCLEAR / CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE BANK OF NEW YORK DEPOSITORY (NOMINEES) LIMITED OR TO SUCH
    OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR / CLEARSTREAM), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF
    FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, THE BANK OF NEW YORK DEPOSITORY
    (NOMINEES) LIMITED, HAS AN INTEREST HEREIN.

	 
	No. R-	£                            
	 	CUSIP No. 713448 FJ2
	 	ISIN XS2503830536
	 	Common Code 250383053

 

PEPSICO, INC.

 

3.200% SENIOR NOTE DUE 2029

 

PEPSICO, INC., a corporation in existence
under the laws of the State of North Carolina (herein called the “Company,” which term includes any successor corporation
under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to The Bank of New York Depository
(Nominees) Limited, as nominee of The Bank of New York Mellon, London Branch, a common depositary for Euroclear Bank S.A./N.V. and Clearstream
Banking, société anonyme, the principal sum of £          on
July 22, 2029, and to pay interest on said principal sum semi-annually on January 22 and July 22 of each year, commencing
January 22, 2023, at the rate of 3.200% per annum from July 22, 2022, or from the most recent date in respect of which interest
has been paid or duly provided for, until payment of the principal sum has been made or duly provided for. The interest so payable and
punctually paid or duly provided for on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name
this Note (or one or more Predecessor Securities) is registered at the close of business on the Record Date for such Interest Payment
Date, which shall be the January 8 and July 8 (whether or not a Business Day) next preceding such Interest Payment Date. Any
such interest that is payable but is not so punctually paid or duly provided for shall forthwith cease to be payable to the registered
Holder on such Record Date and may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof
shall be given to Holders of Notes not earlier than 10 days prior to such Special Record Date, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of the Nasdaq Bond Exchange (“Nasdaq”) on which the Notes are
expected to be listed and upon such notice as may be required by Nasdaq, if such manner of payment shall be deemed practical by the Trustee,
all as more fully provided in the Indenture.

 

Interest will be computed on the basis of the
actual number of days in the period for which interest is being calculated and the actual number of days from and including the date from
which interest begins to accrue for the period (or from July 22, 2022 if no interest has been paid on the Notes) to, but excluding,
the next scheduled Interest Payment Date. This payment convention is referred to as ACTUAL / ACTUAL (ICMA) as defined in the rulebook
of the International Capital Markets Association.

 

    	 	1	 

     

    

 

“Business Day” means any day,
other than a Saturday or Sunday, (1) which is not a day on which banking institutions in the City of New York or the City of London
are authorized or required by law or executive order to close and (2) on which the Trans-European Automated Real-time Gross Settlement
Express Transfer system (the TARGET2 system), or any successor thereto, operates. If any Interest Payment Date, the maturity date or any
Redemption Date is not a Business Day, then the related payment for such Interest Payment Date, maturity date or Redemption Date shall
be paid on the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date, maturity date or
Redemption Date, as the case may be, and no further interest shall accrue as a result of such delay.

 

Payment of the principal of and interest on this
Note will be made at the Place of Payment; provided, however, that payments of interest may be made at the option of the Company by funds
transmitted to the addresses of the Persons entitled thereto as such addresses shall appear in the Security Register.

 

Principal and interest payments, including payments
made upon any redemption, in respect of this Note will be payable in Sterling. If Sterling is unavailable to the Company due to the imposition
of exchange controls or other circumstances beyond the Company’s control (including if Sterling is no longer being used for the
settlement of transactions by public institutions of or within the international banking community), then all payments in respect of this
Note will be made in U.S. dollars until Sterling is again available to the Company and so used. In such circumstances, the amount payable
on any date in Sterling will be converted into U.S. dollars on the basis of the then most recently available market exchange rate for
Sterling, as determined by the Company in its sole discretion. Any payment in respect of this Note so made in U.S. dollars will not constitute
an Event of Default under this Note or the Indenture. Neither the Trustee nor the Paying Agent shall be responsible for any calculation
or conversion in connection with the foregoing.

 

Initially, The Bank of New York Mellon, London
Branch will act as Paying Agent. The Company reserves the right at any time to vary or terminate the appointment of any Paying Agent,
to appoint additional or other Paying Agents and to approve any change in the office through which any Paying Agent acts.

 

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

 

     

     

    

 

IN WITNESS WHEREOF, the Company has caused this
instrument to be duly executed by manual or facsimile signature under its corporate seal or a facsimile thereof.

 

 

	Dated:      _____________, 2022	PEPSICO, INC.
		 
	 	 
	[seal]	By: 	
	 	 	Name:

                                                                   Title:

	 	 	 
	 	By: 	
	 	 	Name:

                                    Title:

 

Attest:

 

		 	 

 

     

     

    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	 	The Bank of New York Mellon, as Trustee
	 	 
	 	 
	 	By:	 
	 	 	Authorized Signatory
	 	 
	 	Dated:	 

 

     

     

    

 

[REVERSE OF NOTE]

 

PEPSICO, INC.

 

3.200% SENIOR NOTE DUE 2029

 

This Note is one of a duly authorized issue of
debentures, notes or other evidences of indebtedness of the Company (herein called the “Securities”), issued and to
be issued in one or more series under an Indenture, dated as of May 21, 2007 (herein called the “Indenture”),
between the Company and The Bank of New York Mellon, 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 thereunder of the Company, the Trustee, and the Holders of the Securities, the terms upon which the Securities
are, and are to be, authenticated and delivered, and the definition of capitalized terms used herein and not otherwise defined herein.
The Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may be
denominated in different currencies, may mature at different times, may bear interest (if any) at different rates (which rates may be
fixed or variable), may be subject to different redemption provisions (if any), may be subject to different sinking, purchase, or analogous
funds (if any), may be subject to different covenants and Events of Default, and may otherwise vary as provided in the Indenture. This
Note is one of a series of Securities of the Company designated as set forth on the face hereof (herein called the “Notes”),
initially limited in aggregate principal amount to £300,000,000.

 

The Company will have the right, at its option,
to redeem any of the Notes in whole or in part, at any time or from time to time prior to April 22, 2029 (three months prior to the
maturity date of the Notes) (the “Par Call Date”) at a Redemption Price (calculated by the Company) equal to the greater
of (i) 100% of the principal amount of such Notes being redeemed and (ii) the sum of the present values of the Remaining Scheduled
Payments (as defined below) of principal and interest thereon (exclusive of interest accrued to the date of redemption), assuming for
such purpose that the Notes matured on the Par Call Date, discounted to the Redemption Date on a semi-annual basis (ACTUAL / ACTUAL (ICMA))
at the applicable Comparable Government Bond Rate (as defined below) plus 20 basis points, plus, in each case, accrued and unpaid interest
thereon to, but not including, the date of redemption. The Company shall make all calculations relating to the Redemption Price.

 

The Company will have the right, at its option,
to redeem any of the Notes in whole or in part, at any time or from time to time on or after the Par Call Date, at a Redemption Price
equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest thereon to, but not including, the
date of redemption.

 

Except as otherwise provided herein, redemption
of the Notes shall be made in accordance with the terms of Article 11 of the Indenture.

 

“Comparable Government Bond Rate”
means, with respect to any Redemption Date, the price, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded
upwards), at which the gross redemption yield on the Notes, if they were to be purchased at such price on the third Business Day prior
to the date fixed for redemption, would be equal to the gross redemption yield on such Business Day of the Comparable Government Bond
(as defined below) on the basis of the middle market price of the Comparable Government Bond prevailing at 11:00 a.m. (London time)
on such Business Day as determined by an independent investment bank selected by the Company.

 

“Comparable Government Bond”
means, in relation to any Comparable Government Bond Rate calculation, at the discretion of an independent investment bank selected by
the Company, a United Kingdom government bond whose maturity is closest to the maturity of the Notes, assuming for such purpose that the
Notes matured on the Par Call Date, or if such independent investment bank in its discretion considers that such similar bond is not in
issue, such other United Kingdom government bond as such independent investment bank may, with the advice of three brokers of, and/or
market makers in, United Kingdom government bonds selected by the Company, determine to be appropriate for determining the Comparable
Government Bond Rate.

 

“Remaining Scheduled Payments”
means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would
be due after the related Redemption Date but for such redemption, assuming for such purpose that such Note matured on the Par Call Date;
provided, however, that, if such Redemption Date is not an Interest Payment Date with respect to such Note, the amount of the next succeeding
scheduled interest payment thereon will be deemed to be reduced by the amount of interest accrued thereon to such Redemption Date.

 

     

     

    

 

On and after the Redemption Date, interest will
cease to accrue on the Notes or any portion thereof called for redemption (unless the Company defaults in the payment of the Redemption
Price and accrued interest). On or before the Redemption Date, the Company will deposit with the Trustee or its agent money sufficient
to pay the Redemption Price of and (unless the redemption date shall be an Interest Payment Date) accrued and unpaid interest to the Redemption
Date on the Notes to be redeemed on such date. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected
in accordance with applicable Depositary procedures. Additionally, the Company may at any time repurchase Notes in the open market and
may hold or surrender such Notes to the Trustee for cancellation.

 

If, as a result of any change in, or amendment
to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any taxing authority in the United States),
or any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or rulings,
which change or amendment is announced or becomes effective on or after July 15, 2022, the Company becomes or, based upon a written
opinion of independent counsel selected by the Company, will become obligated to pay additional amounts as described below with respect
to the Notes, then the Company may at any time at its option redeem, in whole, but not in part, the Notes at a Redemption Price equal
to 100% of their principal amount, together with accrued and unpaid interest on those Notes to, but not including, the date fixed for
redemption.

 

The Company will, subject to the exceptions and
limitations set forth below, pay as additional interest on the Notes such additional amounts as are necessary in order that the net payment
by the Company of the principal of and interest on the Notes to a Holder who is not a United States person (as defined below), after withholding
or deduction for any present or future tax, assessment or other governmental charge imposed by the United States or a taxing authority
in the United States, will not be less than the amount provided in the Notes to be then due and payable; provided, however, that the foregoing
obligation to pay additional amounts shall not apply:

 

		(1)	to any tax, assessment or other governmental charge that is imposed by reason of the Holder (or the beneficial owner for whose benefit
such Holder holds such Note), or a fiduciary, settlor, beneficiary, member or shareholder of the Holder if the Holder is an estate, trust,
partnership or corporation, or a person holding a power over an estate or trust administered by a fiduciary holder, being considered as:

 

		(a)	being or having been engaged in a trade or business in the United States or having or having had a permanent establishment in the
United States;

 

		(b)	having a current or former connection with the United States (other than a connection arising solely as a result of the ownership
of the Notes, the receipt of any payment or the enforcement of any rights hereunder), including being or having been a citizen or resident
of the United States;

 

		(c)	being or having been a personal holding company, a passive foreign investment company or a controlled foreign corporation for United
States federal income tax purposes or a corporation that has accumulated earnings to avoid United States federal income tax;

 

		(d)	being or having been a “10-percent shareholder” of the Company as defined in Section 871(h)(3) of the United
States Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision; or

 

		(e)	being a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of
its trade or business;

 

		(2)	to any Holder that is not the sole beneficial owner of the Notes, or a portion of the Notes, or that is a fiduciary, partnership or
limited liability company, but only to the extent that a beneficial owner with respect to the Holder, a beneficiary or settlor with respect
to the fiduciary, or a beneficial owner or member of the partnership or limited liability company would not have been entitled to the
payment of an additional amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive
share of the payment;

 

     

     

    

 

		(3)	to any tax, assessment or other governmental charge that would not have been imposed but for the failure of the Holder or any other
person to comply with certification, identification or information reporting requirements concerning the nationality, residence, identity
or connection with the United States of the Holder or beneficial owner of the Notes, if compliance is required by statute, by regulation
of the United States or any taxing authority therein or by an applicable income tax treaty to which the United States is a party as a
precondition to exemption from such tax, assessment or other governmental charge;

 

		(4)	to any tax, assessment or other governmental charge that is imposed otherwise than by withholding by the Company or a Paying Agent
from the payment;

 

		(5)	to any tax, assessment or other governmental charge that would not have been imposed but for a change in law, regulation, or administrative
or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs
later;

 

		(6)	to any estate, inheritance, gift, sales, excise, transfer, wealth, capital gains or personal property tax or similar tax, assessment
or other governmental charge;

 

		(7)	to any tax, assessment or other governmental charge required to be withheld by any Paying Agent from any payment of principal of or
interest on any Note, if such payment can be made without such withholding by at least one other Paying Agent;

 

		(8)	to any tax, assessment or other governmental charge that would not have been imposed but for the presentation by the Holder of any
Note, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or
the date on which payment thereof is duly provided for, whichever occurs later;

 

		(9)	to any tax, assessment or other governmental charge that is imposed or withheld solely by reason of the beneficial owner being a bank
(i) purchasing the Notes in the ordinary course of its lending business or (ii) that is neither (A) buying the Notes for
investment purposes only nor (B) buying the Notes for resale to a third-party that either is not a bank or holding the Notes for
investment purposes only;

 

		(10)	to any tax, assessment or other governmental charge imposed under Sections 1471 through 1474 of the Internal Revenue Code (or any
amended or successor provisions), any current or future regulations or official interpretations thereof, any agreement entered into pursuant
to Section 1471(b) of the Internal Revenue Code or any fiscal or regulatory legislation, rules or practices adopted pursuant
to any intergovernmental agreement entered into in connection with the implementation of such sections of the Internal Revenue Code; or

 

		(11)	in the case of any combination of items (1), (2), (3), (4), (5), (6), (7), (8), (9) and (10).

 

The Notes are subject in all cases to any tax,
fiscal or other law or regulation or administrative or judicial interpretation applicable to the Notes. Except as noted above, the Company
will not be required to make any payment for any tax, assessment or other governmental charge imposed by any government or a political
subdivision or taxing authority of or in any government or political subdivision.

 

As used above, the term “United States”
means the United States of America (including the states of the United States and the District of Columbia and any political subdivision
thereof) and the term “United States person” means any individual who is a citizen or resident of the United States for U.S.
federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States,
any state of the United States or the District of Columbia (other than a partnership that is not treated as a United States person under
any applicable Treasury regulations), or any estate or trust the income of which is subject to United States federal income taxation regardless
of its source.

 

     

     

    

 

Notice of any redemption will be transmitted at
least 10 days but not more than 60 days before the Redemption Date to each Holder of Notes to be redeemed (or delivered electronically
in accordance with the procedures of the Depositary). If fewer than all of the Notes are to be redeemed, the particular Notes to be redeemed,
in the case of Notes in global form, shall be selected in accordance with the procedures of the Depositary. In the case of physical Notes
in definitive form, such selection shall be done by the Trustee by lot. If any Note is to be redeemed only in part, the notice of redemption
that relates to such Note shall state the principal amount thereof to be redeemed. A new Note in principal amount equal to and in exchange
for the unredeemed portion of the principal of the Note surrendered may be issued in the name of the Holder of the Note upon surrender
of the original Note.

 

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

 

The Indenture contains provisions setting forth
certain conditions to the institution of proceedings by Holders of Securities with respect to the Indenture or for any remedy under the
Indenture.

 

If an Event of Default with respect to the Notes
shall occur and be continuing, the principal amount hereof may be declared due and payable or may be otherwise accelerated in the manner
and with the effect provided in the Indenture.

 

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

 

As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note is registerable in the Security Register, upon surrender of this Note for registration
of transfer at the office or agency of the Company in any Place of Payment duly endorsed, or accompanied by a written instrument of transfer
in form satisfactory to the Company and the Security Registrar duly executed, by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued
to the designated transferee or transferees.

 

The Notes are issuable only in registered form
without coupons in minimum denominations of £100,000 and integral multiples of £1,000 in excess thereof. As provided in the
Indenture and subject to certain limitations therein set forth, this Note is exchangeable for certificated notes in definitive form of
like tenor in minimum denominations of £100,000 principal amount and integral multiples of £1,000 in excess thereof if (i) the
Depositary provides notification that it is unwilling, unable or no longer qualified to continue as depositary for the global notes and
a successor is not appointed within 90 days; (ii) the Company in its discretion at any time determines not to have all the Notes
represented by the global note; or (iii) default entitling the Holders of Notes to accelerate the maturity thereof has occurred and
is continuing. Any Note that is exchangeable as above is exchangeable for certificated notes issuable in authorized denominations and
registered in such names as the common depositary shall direct. Subject to the foregoing, a global note is not exchangeable, except for
a global note of the same aggregate denomination to be registered in the name of the common depositary (or its nominee).

 

Payments (including principal, interest and any
additional amounts) and transfers with respect to the Notes in certificated form may be executed at the office or agency maintained for
such purpose within the City of London (initially the office of the Paying Agent maintained for such purpose) or, at the Company’s
option, by check mailed to the Holders thereof at the respective addresses set forth in the register of Holders of the Notes, provided
that all payments (including principal, interest and any additional amounts) on certificated notes, for which the Holders thereof have
given wire transfer instructions, will be required to be made by wire transfer of immediately available funds to the accounts specified
by the Holders thereof.

 

No service charge shall be made for any such registration
or transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable
in connection therewith.

 

     

     

    

 

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

 

This Note may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original, but all of which shall together constitute but one and the same instrument.
The signature of any officer on this Note may be manual or facsimile (including, for the avoidance of doubt, electronic). The seal of
the Company may be in the form of a facsimile thereof and may be impressed, affixed, imprinted, or otherwise reproduced on this Note.
The Company and the Trustee, and each Holder of this Note by its acceptance hereof, acknowledge that for purposes of the Indenture, manually
affixing a signature by electronic means shall constitute a manual signature.

 

All terms used in this Note which are defined
in the Indenture and are not otherwise defined herein shall have the meanings assigned to them in the Indenture.

 

     

     

    

 

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

 

[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

 

__________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
ASSIGNEE]

 

the within Note and all rights thereunder, hereby irrevocably constituting
and appointing _________________________ attorney to transfer such Note on the books of the Issuer, 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 Note in every particular without alteration or enlargement or any
change whatsoever.

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