Document:

exhibit1009fourthamendto

                                                                      Execution                  FOURTH AMENDMENT TO CREDIT AGREEMENT         This FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), made  and entered into as of April 29, 2019, is by and between MidWestOne Financial Group, Inc. a  corporation organized under the laws of the State of Iowa (the “Borrower”), and U.S. Bank  National Association, a national banking association (the “Bank”).                                    RECITALS         1.    The Bank and the Borrower entered into a Credit Agreement dated as of April 30,  2015, a First Amendment to Credit Agreement dated as of April 28, 2016, a Second Amendment  to Credit Agreement dated as of May 5, 2017, and a Third Amendment to Credit Agreement  dated as of May 31, 2018 (as amended, the “Credit Agreement”); and         2.    The Borrower desires to amend certain provisions of the Credit Agreement, and  the Bank has agreed to make such amendments, subject to the terms and conditions set forth in  this Amendment.                                   AGREEMENT         NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of  which are hereby acknowledged, the parties hereto hereby covenant and agree to be bound as  follows:         Section 1.  Capitalized Terms.  Capitalized terms used and not otherwise defined  herein shall have the meanings assigned to them in the Credit Agreement, unless the context  otherwise requires.         Section 2.  Amendment.  The Credit Agreement is hereby amended as follows:               2.1.  Definitions.  Section 1.1 of the Credit Agreement is amended by        amending the definitions of “Applicable Margin,” “Commitments,” “Fixed Charge        Coverage Ratio,” “Loan,” “Note,” “Revolving Commitment Amount,” “Revolving Loan        Maturity Date,” “Tangible Capital” and “Term Loan” in their entireties to read as        follows:                     “Applicable Margin”:  Means 1.75%.                     “Commitments”:  The Revolving Commitment, the Term Loan              Commitment and the Term Loan II Commitment.                     “Fixed Charge Coverage Ratio”:  As of any date of determination, with              respect to any specified period ending on the date of determination, the ratio of:    4821-5437-4791\12 

 

      (a)   the sum of (i) Net Income, plus (ii) non-cash charges or expenses,        including depreciation and amortization, plus (iii) Interest Expense, plus  (iv) one        time losses associated with acquisitions or sales of assets,  minus (v) any        Restricted Payments paid in cash, minus (vi) non-cash income, minus (vii) one-       time gains associated with acquisitions or sales of assets,          to               (b)   the sum of (i) Interest Expense with respect to such period, plus (ii)        the principal amount of the Term Loans paid during such period pursuant to        Section 2.5(b) plus (ii) one fifth of the Revolving Commitment Amount;          determined with respect to the Borrower, without consolidation with its        Subsidiaries, in accordance with Regulatory Reporting Principles.                “Loan”:  Separately, the Revolving Loan, the Term Loan or Term Loan II,        without distinction, and collectively, the Revolving Loan, the Term Loan and        Term Loan II.               “Note”:  Separately, the Revolving Note, the Term Note or Term Note II,        without distinction, and collectively, the Revolving Note, the Term Note and       Term Note II.               “Revolving Commitment Amount”:  $5,000,000 until April 29, 2019 and        $10,000,000 from and after April 30, 2019.               “Revolving Loan Maturity Date”:  April 30, 2020.               “Tangible Capital”:  With respect to any Person, as of any date of        determination, the sum of (i) the total amount of the capital stock, surplus,       subordinated debt, undivided profits accounts, and all other components of equity,       less intangible assets of such Person, in each case determined in accordance with       GAAP, and (ii) Loan Loss Reserves of such Person.               “Term Loans”:  Separately, the Term Loan or Term Loan II, without        distinction and, collectively, the Term Loan and Term Loan II.   Section 1.1 of the Credit Agreement is further amended by adding the following  definition thereto in the proper alphabetical order:               “AT Bancorp”:  AT Bancorp, an Iowa  corporation.               “AT Bancorp Acquisition”:  The acquisition by Borrower of all of the        Equity Interests of AT Bancorp.                “AT Bancorp Acquisition Documents”:  The Agreement and Plan of        Merger dated August 21, 2018 by and between the Borrower and AT Bancorp        evidencing the AT Bancorp Acquisition, along with other instruments and                                   2                

 

      agreements related to the         AT Bancorp Acquisition, copies of which have been provided to the Bank.               “AT Banks”:  American Bank & Trust Wisconsin, a Wisconsin banking        corporation and American Trust & Savings Bank an Iowa banking corporation,        both of which shall be merged into MidWestOne Bank upon consummation of the        AT Bancorp Acquisition.               “Beneficial Ownership Certification”:  A certification regarding beneficial        ownership as required by the Beneficial Ownership Regulation.                 “Beneficial Ownership Regulation”:  31 C.F.R. § 1010.230.               “Fourth Amendment”:  That certain Fourth Amendment to Credit        Agreement made by and between the Borrower and the Bank and dated as of        April 29, 2019.               “Money Market Rate”:  The rate, determined solely by the Bank, at which        the Bank would be able to borrow funds of comparable amounts in the Money        Markets for a one month period, adjusted for any reserve requirement and any        subsequent costs arising from a change in government regulation.               “Money Markets”:  One or more wholesale funding markets available to        and selected by the Bank, including negotiable certificates of deposit, commercial        paper, Eurodollar deposits, bank notes, federal funds, interest rate swaps or others.                “Term Loan II Commitment”:  The agreement of the Bank to make Term        Loan II to the Borrower in an aggregate principal amount outstanding at any time        not to exceed the Term Loan Commitment Amount upon the terms and subject to        the conditions and limitations of this Agreement.               “Term Loan II Commitment Amount”:  $35,000,000.               “Term Loan II Maturity Date ”:  April 30, 2024.                “Term Loan II Termination Date”:  The earlier of (a) the Term Loan II        Maturity Date, and (b) the date on which Term Note II is accelerated pursuant to        Section 7.2.               “Term Note II ”:  A promissory note of the Borrower in the form of        Exhibit A-3 evidencing the obligation of the Borrower to repay the Term Loan, as        the same may be amended, restated or otherwise modified from time to time.         2.2.  Section 2.1 - Term Loan II.  Section 2.1  of the Credit Agreement is  amended by adding clause (c) thereto to read as follows:               (c)   On the terms and subject to the conditions hereof, the Bank agrees        to make available to the Borrower a term loan (“Term Loan II”) equal to the                                    3                

 

      Term Loan Commitment Amount.  Upon the disbursement of Term Loan II to the        Borrower, the Term Loan II Commitment shall expire.  Amounts paid or prepaid        on Term Loan II may not be reborrowed.         2.3.  Section 2.3 – Promissory Notes.  Section 2.3 of the Credit Agreement is  amended in its entirety to read as follows:         Section 2.3. Notes.  The Revolving Loans shall be evidenced by the Revolving        Note payable to the order of the Bank in a principal amount equal to the        Revolving Commitment Amount originally in effect.  The Term Loan and Term        Loan Advances shall be evidenced by the Term Note payable to the order of the        Bank in a principal amount equal to the Term Loan Commitment Amount        originally in effect. Term Loan II shall be evidenced by Term Note II payable to        the order of the Bank in a principal amount equal to the Term Loan II        Commitment Amount originally in effect. The Bank shall enter in its ledgers and        records the amount of each Loan, converted or continued and the payments made        thereon, and the Bank is authorized by the Borrower to enter on a schedule        attached to the applicable Note, as appropriate, a record of such Loan and        payments; provided, however that the failure by the Bank to make any such entry        or any error in making such entry shall not limit or otherwise affect the obligation        of the Borrower hereunder and on the Notes, and, in all events, the principal        amounts owing by the Borrower in respect of the Revolving Note shall be the        aggregate amount of all Revolving Loans made by the Bank less all payments of        principal thereof made by the Borrower, the principal amounts owing by the        Borrower in respect of the Term Note shall be the aggregate amount of the Term        Loan Advances less all payments of principal thereof made by the Borrower, and        the principal amounts owing by the Borrower in respect of Term Note II shall be        the aggregate amount of Term Loan II less all payments of principal thereof made        by the Borrower.         2.4.  Section 2.4(a) - Interest on Loans.  Section 2.4 (a) of the Credit  Agreement is amended in its entirety to read as follows:               (a)   Interest Rates.                     (i)   Interest Rate on the Revolving Loan.  Interest on the              Revolving Loans shall accrue at an annual rate equal to the Applicable              Rate plus the greater of (A) zero percent (0.0%) and (B) the one-month             LIBOR rate quoted by Bank from Reuters Screen LIBOR01 Page or any             successor thereto, which shall be that one-month LIBOR rate in effect two             New York Banking Days prior to the Reprice Date, adjusted for any             reserve requirement and any subsequent costs arising from a change in             government regulation, such rate rounded up to the nearest one sixteenth             percent and such rate to be reset monthly on each Reprice Date.  The term             “Reprice Date” means the first day of each month.  If a Revolving Loan             under this Agreement is made other than on the Reprice Date, the initial             one-month LIBOR rate shall be that one-month LIBOR rate in effect two                                   4                

 

 New York Banking Days prior to the date of the funding of such   Revolving Loan, which rate plus the percentage described above shall be   in effect until the next Reprice Date.  Notwithstanding the foregoing, in   the event the Bank determines (which determination shall be conclusive   absent manifest error) that (A) the interest rate applicable to the Revolving   Loans is not ascertainable or does not adequately and fairly reflect the cost  of making or maintaining the Revolving Loans and such circumstances are   unlikely to be temporary, (B) ICE Benchmark Administration (or any   Person that takes over the administration of such rate) discontinues its   administration and publication of interest settlement rates for deposits in   Dollars, or (C) the supervisor for the administrator of such interest   settlement rate or a governmental authority having jurisdiction over the   Bank has made a public statement identifying a specific date after which   such interest settlement rate shall no longer be used for determining   interest rates for loans, then the Bank shall determine an alternate rate of   interest to the LIBOR rate described above that gives due consideration to  the then prevailing market convention for determining a rate of interest for  comparable bank-originated commercial loans in the United States at such  time and, if necessary, the Bank and the Borrower shall enter into an  amendment to this Agreement to reflect such alternate rate of interest and   such other related changes to this Agreement as may be applicable. Such   alternate rate shall be adjusted for any reserve requirement and any   subsequent costs arising from a change in government regulation. Until an   alternate rate of interest shall be determined in accordance with this   Section 2.4(a)(i), interest on each Revolving Loan hereunder shall accrue   at the Money Market Rate. If the alternate rate of interest determined   pursuant to this Section 2.4(a)(i) shall be less than zero, such rate shall be  deemed to be zero for the purposes of this Agreement. The Bank's internal  records of applicable interest rates (including without limitation the  Bank’s designation of any successor interest rate index if the rate index   described above shall become temporarily unavailable) shall be   determinative in the absence of manifest error.          (ii)  Interest Rate on the Term Loans.  The unpaid principal   balance of the Term Loans will accrue interest for an amount of the unpaid  principal balance of the Term Loans as selected by the Borrower upon a  minimum of two New York Banking Days prior notice, at the per annum  rate equal to the Applicable Margin plus the greater of (A) zero percent  (0.0%) and (B)  the 1, 3 or 6 month LIBOR rate (such period to be chosen  by the Borrower) quoted by the Bank from Reuters Screen LIBOR01 Page  or any successor thereto, which shall be the LIBOR rate in effect two New  York Banking Days prior to commencement of such interest period,  adjusted for any reserve requirement and any subsequent costs arising  from a change in government regulation (a “LIBOR Rate Loan”).  In the  event the Borrower does not timely select another interest rate option at  least two New York Banking Days before the end of the Loan Period for a  LIBOR Rate Loan, the Bank may at any time after the end of the Loan                        5                

 

Period convert the LIBOR Rate Loan to a LIBOR Rate Loan at the 1  month LIBOR rate in effect two New York Banking Days prior to the end  of such Loan Period as determined above in this clause (ii), but until such  conversion, the funds advanced under the LIBOR Rate Loan shall  continue to accrue interest at the same rate as the interest rate in effect for  such LIBOR Rate Loan prior to the end of the Loan Period.   Notwithstanding the foregoing, in the event the Bank determines (which  determination shall be conclusive absent manifest error) that (A) the  interest rate applicable to the Term Loans is not ascertainable or does not  adequately and fairly reflect the cost of making or maintaining the Term  Loans and such circumstances are unlikely to be temporary, (B) ICE  Benchmark Administration (or any Person that takes over the  administration of such rate) discontinues its administration and publication  of interest settlement rates for deposits in Dollars, or (C) the supervisor for  the administrator of such interest settlement rate or a governmental  authority having jurisdiction over the Bank has made a public statement  identifying a specific date after which such interest settlement rate shall no  longer be used for determining interest rates for loans, then the Bank shall  determine an alternate rate of interest to the LIBOR rate described above  that gives due consideration to the then prevailing market convention for  determining a rate of interest for comparable bank-originated commercial  loans in the United States at such time and, if necessary, the Bank and the  Borrower shall enter into an amendment to this Agreement to reflect such  alternate rate of interest and such other related changes to this Agreement  as may be applicable. Such alternate rate shall be adjusted for any reserve  requirement and any subsequent costs arising from a change in  government regulation. Until an alternate rate of interest shall be  determined in accordance with this Section 2.4(a)(ii), interest on the Term  Loans hereunder shall accrue at the Money Market Rate. If the alternate  rate of interest determined pursuant to this Section 2.4(a)(ii) shall be less  than zero, such rate shall be deemed to be zero for the purposes of this  Agreement. The Bank's internal records of applicable interest rates  (including without limitation the Bank’s designation of any successor  interest rate index if the rate index described above shall become  temporarily unavailable) shall be determinative in the absence of manifest  error.          No LIBOR Rate Loan may extend beyond the Term Loan Maturity  Date or the Term Loan II Maturity Date, as applicable.  In any event, if the  Loan Period for a LIBOR Rate Loan should happen to extend beyond the  Term Loan Maturity Date or the Term Loan II Maturity Date, as  applicable, then such LIBOR Rate Loan must be prepaid on the Term  Loan Maturity Date or the Term Loan II Maturity Date, as  applicable.  The Bank’s internal records of applicable interest rates shall  be determinative in the absence of manifest error.  Each LIBOR Rate Loan  shall be in a minimum principal amount of $100,000.  The aggregate                       6                

 

            number of LIBOR Rate Loans in effect at any one time for either Term              Loan may not exceed 6.                      If a LIBOR Rate Loan is prepaid prior to the end of the Loan              Period for such loan, whether voluntarily or because prepayment is              required due to the occurrence of the Term Loan Maturity Date or the              Term Loan II Maturity Date, as applicable, or due to acceleration of the              Obligations upon default or otherwise, the Borrower agrees to pay all of              the Bank’s costs, expenses and Interest Differential (as determined by the              Bank) incurred as a result of such prepayment.  Because of the short-term              duration of any Loan Period, the Borrower agrees that the Interest              Differential shall not be discounted to its present value.  Any prepayment              of a LIBOR Rate Loan shall be in an amount equal to the remaining entire              principal balance of such LIBOR Rate Loan.  The Borrower hereby              acknowledges that the Borrower shall be required to pay Interest              Differential with respect to any portion of the principal balance paid              before its scheduled due date, whether voluntarily, involuntarily, or              otherwise, including without limitation any principal payment made              following default, demand for payment, acceleration, collection              proceedings, foreclosure, sale or other disposition of collateral, bankruptcy              or other insolvency proceedings, eminent domain, condemnation or              otherwise.  Such Interest Differential shall at all times be an Obligation as              well as an undertaking by the Borrower to the Bank whether arising out of              a voluntary or mandated prepayment.          2.5.  Section 2.5 - Repayment.  Section 2.5 of the Credit Agreement is  amended in its entirety to read as follows:               Section 2.5 Repayment of the Loans.  Interest and principal upon the        Loans shall be paid as follows:               (a)   Payment of Interest.  Interest on the Revolving Loan shall be paid        (A) on each Payment Date, commencing on June 30, 2015 and (B) on the        Revolving Loan Termination Date; provided that interest under Section 2.4(b)        shall be payable on demand.  Interest on the Term Loan shall be paid (A) on each        Payment Date, commencing on June 30, 2015 and (B) on the Term Loan        Termination Date; provided that interest under Section 2.4(b) shall be payable on        demand.  Interest on Term Loan II shall be paid (A) on each Payment Date,        commencing on June 30, 2019 and (B) on the Term Loan II Termination Date;        provided that interest under Section 2.4(b) shall be payable on demand.               (b)   Payment of Principal.  Principal of the Revolving Loan shall be        paid on the Revolving Loan Termination Date.  Principal on the Term Loan shall        be paid on each Payment Date, commencing on September 30, 2015, in quarterly        installments in the amount of not less than $892,857.14 each, with the unpaid        remaining principal balance to be paid in full on the Term Loan Termination        Date.  Principal on Term Loan II shall be paid on each Payment Date,                                   7                

 

      commencing on June 30, 2019, in quarterly installments in the amount of not less        than $875,000 each, with the unpaid remaining principal balance to be paid in full       on the Term Loan II Termination Date           2.6.  Section 2.6 – Prepayments of Loans.  Section 2.6 of the Credit  Agreement is amended in its entirety to read as follows:         Section 2.6. Prepayments.               (a)   Optional Prepayments. The Borrower may pay the Revolving Loan        at its option at any time without premium or penalty.  The Borrower may pay the        Term Loan or Term Loan II at its option only if it pays the Interest Differential,        payable with respect to the Term Loan or Term Loan II pursuant to        Section 2.4(a)(ii).   All prepayments of the Loans shall be in a minimum amount       of $100,000 or, if less, in the remaining entire principal balance of the Loan being       prepaid.  All prepayments applied to the Term Loan shall be applied to the        scheduled principal payments on the Term Loan in the inverse order of their        maturities.  All prepayments applied to Term Loan II shall be applied to the        scheduled principal payments on Term Loan II in the inverse order of their        maturities.  Amounts paid or prepaid on the Term Loan or Term Loan II may not        be reborrowed.  Any such prepayment of any Loan must be accompanied by        payment of accrued and unpaid interest on the amount prepaid and, in the case of        a prepayment of the Term Loan or Term Loan II, the Interest Differential required        under Section 2.4(a)(ii).  Amounts paid (unless following an acceleration or upon        termination of the Revolving Commitment in whole) or prepaid on the Revolving        Loans under this clause (a) may be reborrowed upon the terms and subject to the        conditions and limitations of this Agreement.               (b)   Mandatory Prepayments for a Prepayment Event.  If at any time a        Prepayment Event occurs, the Borrower shall immediately pay to the Bank the net        proceeds realized by such Prepayment Event as a prepayment of Term Loan II       and after Term Loan II has been paid in full, then as a prepayment of the Term       Loan, along with any Interest Differential required under Section 2.4(a)(ii).  Any       such prepayments shall be applied to Term Loan II until Term Loan II is paid in       full, thereafter to the Term Loan until the Term Loan is paid in full, and thereafter       to the Revolving Loan until the Revolving Loan is paid in full.  All prepayments       applied to Term Loan II shall be applied to the scheduled principal payments on       Term Loan II in the inverse order of their maturities.  All prepayments applied to       the Term Loan shall be applied to the scheduled principal payments on the Term       Loan in the inverse order of their maturities.  Amounts paid or prepaid on Term       Loan II or the Term Loan may not be reborrowed.  Amounts paid (unless       following an acceleration or upon termination of the Revolving Commitment in       whole) or prepaid on the Revolving Loan under this clause (b) may be reborrowed       upon the terms and subject to the conditions and limitations of this Agreement.               (c)   Mandatory Prepayment if AT Bancorp Acquisition is not        Consummated.  If Term Loan II has been funded by the Bank and the AT                                   8                

 

      Bancorp Acquisition is not consummated on or before March 31, 2019, the Term        Loan II Commitment shall terminate and, if proceeds of Term Loan II have been        disbursed to Borrower, then the Borrower shall immediately pay to the Bank on        such date the entire outstanding principal balance of Term Loan II along with all        accrued interest thereon and any Interest Differential required under        Section 2.4(a)(ii).           2.7.  Section 4.17 – Disclosure.  Section 4.17 of the Credit Agreement is  amended in its entirety to read as follows:               Section 4.17 Full Disclosure, Beneficial Ownership.               (a)   Full Disclosure.  Subject to the following sentence, neither the        financial statements nor the call reports and other regulatory reports referred to in        Section 5.1 nor any other certificate, written statement, exhibit or report furnished        by or on behalf of the Borrower in connection with or pursuant to this Agreement        contains any untrue statement of a material fact or omits to state any material fact        necessary in order to make the statements contained therein not misleading.         Certificates or statements furnished by or on behalf of the Borrower or any        Subsidiary to the Bank consisting of projections or forecasts of future results or        events have been prepared in good faith and based on good faith estimates and        assumptions of the management of the Borrower or such Subsidiary, and the        Borrower has no reason to believe that such projections or forecasts are not        reasonable.               (b)   The information included in the most recent Beneficial Ownership       Certification delivered to the Bank, if any, is true and correct in all respects.         2.8.  Section 4.25 – Consummation of Acquisitions.  Section 4.25 of the  Credit Agreement is amended in its entirety to read as follows:         Section 4.25. Central Bancshares and AT Bancorp Acquisitions.  The Central        Bancshares Acquisition and AT Bancorp Acquisition have been consummated in        accordance with the purchase agreements and other documents and instruments        which the Borrower has provided to the Bank and consistent with the structure        and terms presented to and found acceptable by the Bank immediately upon the        payment of consideration described in Section 3.1(a) (iii) H. of this Agreement        and Section 3.2 (h) of the Fourth Amendment.          2.9.  Section 4.26 – Obligations as Unsecured Senior Indebtedness.  Article  IV of the Credit Agreement is amended by adding thereto the following Section 4.26:         Section 4.26. Obligations as Unsecured Senior Indebtedness.  The Borrower        represents and warrants that the Obligations constitute senior unsecured        Indebtedness of the Borrower.                                    9                

 

      2.10. Section 5.1 – Additional Disclosure Information.  Section 5.1 of the  Credit Agreement is amended to add thereto the following clause (o):                (o)  Any change in the information provided in the most recent        Beneficial Ownership Certification delivered to the Bank, if any, that would result        in a change to the list of beneficial owners identified in parts (c) or (d) of such        certification.         2.11. Section 5.2 – Use of Proceeds.  Section 5.2 of the Credit Agreement is  amended in its entirety to read as follows:         Section 5.2 Use of Loan Proceeds.  The Borrower shall use the proceeds of the        Revolving Loan to fund general working capital and operating expenses.   The        Borrower shall use the proceeds of the Term Loan to finance the Central        Bancshares Acquisition and up to $5,000,000 for repayment of outstanding        Subordinated Debt of Central Bancshares assumed by the Borrower in connection        with the Central Bancshares Acquisition.  The Borrower shall use the proceeds of        Term Loan II to finance in part the AT Bancorp Acquisition.  Without limitation        of the preceding sentences, the Borrower will not request any Loan and the        Borrower shall not use, and the Borrower shall ensure that its Subsidiaries, and its        or their respective directors, officers, employees and agents shall not use, the        proceeds of any Loan  (a) in furtherance of an offer, payment, promise to pay, or        authorization of the payment or giving of money, or anything else of value, to any        Person in violation of any Anti-Corruption Laws or (b) in any manner that would        result in the violation of any applicable Sanctions.         2.12. Section 5.3 – Additional Subsidiaries.  The last sentence of Section 5.3  is deleted in its entirety.         2.13. Section 6.1 – Mergers, etc.  Section 6.1 of the Credit Agreement is  amended in its entirety to read as follows:         Section 6.1 Merger; Acquisitions.  The Borrower will not merge or consolidate        or enter into any analogous reorganization or transaction with any Person or        liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution);        acquire all or substantially all of the stock or the assets of another Person except        as permitted under Section 6.20(e); nor permit any Subsidiary to do any of the        foregoing; provided, however, any Subsidiary other than a Subsidiary Bank  may        be merged with or liquidated into the Borrower or any wholly-owned Subsidiary        other than a Subsidiary Bank (if the Borrower or such wholly-owned Subsidiary is        the surviving corporation), Central Bank may be merged into MidWestOne Bank,       and the AT Banks may be merged into MidWestOne Bank.         2.14. Section 6.14 – NPL and OREO to Tangible Capital Ratio.  Section  6.14 of the Credit Agreement is amended in its entirety to read as follows:         Section 6.14 Non-Performing Loans and OREO to Tangible Capital.  The        Borrower will not permit the ratio of Non-Performing Loans plus OREO to                                   10                

 

      Tangible Capital of the Subsidiary Banks, on a combined basis, expressed as a        percentage, as of the last day of the fiscal quarter ending June 30, 2015, and the        last day of each fiscal quarter thereafter until December 31, 2018, to be greater        than 16.00%, and as of the last day of the fiscal quarter ending from and after        March 31, 2019, to be greater than 15.00 %.         2.15.  Section 6.16  – Total Risk-Based Capital Ratio.  Section 6.16 of the  Credit Agreement is amended in its entirety to read as follows:         Section 6.16 Total Risk Based Capital.  The Borrower will not permit the Total        Risk-Based Capital Ratio of the Subsidiary Banks, on a combined basis,        expressed as a percentage, as of the last day of any fiscal quarter, to be less than        the following percentages during the following periods:                            Period               Combined                                                Subsidiary                                                 Banks               From and after March 31,  2019 to and including 10.50%              December 30, 2019              December 31, 2019 to and including December 30, 10.60%              2020              December 31, 2020 to and including December 30, 10.85%              2021              December 31, 2021 to and including December 30, 11.05%              2022              December 31, 2022 to and including December 30, 11.25%              2023              From and after December 31, 2023   11.45%                 2.16. Section 6.20 – Investments Covenant.  Section 6.20 of the Credit  Agreement is amended in its entirety to read as follows:               Section 6.20. Investments.  The Borrower will not, nor will permit any        Subsidiary to, acquire for value, make, have or hold any Investments including        Investments in or the formation or acquisitions of any Subsidiary, except:               (a)   Investments in (i) bank repurchase agreements, (ii) savings        accounts or certificates of deposit in a financial institution of recognized standing,        (iii) obligations issued or fully guaranteed by the United States, (iv) prime        commercial paper maturing within 90 days of the date of acquisition by the        Borrower or any Subsidiary, and (v) with respect to the Borrower, other        Investments permitted for bank holding companies under applicable federal,        Minnesota and Iowa law (including rules and regulations promulgated by the        Office of the Comptroller of the Currency, the Minnesota Department of        Commerce, the Iowa Division of Banking or other applicable federal or state        regulatory agency) and, with respect to the Subsidiary Banks, other Investments        permitted for state banks under applicable federal, Minnesota law  and Iowa law        (including rules and regulations promulgated by the Office of the Comptroller of                                    11                

 

      the Currency, the Minnesota Department of Commerce, the Iowa Division of        Banking  or other applicable federal or state regulatory agency);               (b)   loans and advances made to employees and agents in the ordinary        course of business, such as travel and entertainment advances and similar items;               (c)   Investments in the Borrower by a Subsidiary;                (d)   with respect to a Subsidiary, Investments or loans made in the        ordinary course of banking business of such Subsidiary; and               (e)   the Borrower may form or acquire any Subsidiary, other than a       Subsidiary Bank or a Subsidiary of a Subsidiary Bank, formed or acquired for the       purpose of any other business or activity permitted by all applicable laws and       regulations, provided that the aggregate amount of assets of such formed or       acquired Subsidiaries permitted under this sentence shall not, at any time during       any fiscal year of the Borrower, exceed 5% of the consolidated assets of the       Borrower and  its Subsidiaries as of the end of the preceding fiscal year, provided       that, the AT Bancorp Acquisition may be consummated in 2019 notwithstanding       such 5% limitation.         2.17. Section 6.21 – Amendments to Acquisition Documents.  Section 6.21 of  the Credit Agreement is amended in its entirety to read as follows:         Section 6.21. Acquisition Documents.  The Borrower will not amend, modify or        waive any provision of the Central Bancshares Acquisition Documents or the AT        Bancorp Acquisition Documents.         2.18. Revolving Note.  Exhibit A-1 to the Credit Agreement, in the form of  Exhibit A-1 to this Amendment, is amended in its entirety to read as set forth on Exhibit  A-1 hereto.         2.19. Term Note II.  Exhibit A-3, in the form of Exhibit A-3 to this  Amendment, is added to the Credit Agreement as Exhibit A-3 thereto.         2.20. Exhibit B.  Exhibit B to the Credit Agreement is amended in its entirety to  read as set forth in Exhibit to this Amendment.                                    12                

 

            2.21. Schedule 4.18.  Schedule 4.18 to the Credit Agreement is amended in its        entirety to read as set forth in Schedule 4.18 to this Amendment, after giving effect to the        AT Bancorp Acquisition.               2.22. Schedule 6.11.  Schedule 6.11 to the Credit Agreement is amended in its        entirety to read as set forth in Schedule 6.11 to this Amendment, after giving effect to the        AT Bancorp Acquisition.         Section 3.  Effectiveness of Amendment.  The amendments in this Amendment shall  become effective upon delivery by the Borrower of, and compliance by the Borrower with, the  following:               3.1.  This Amendment, the Revolving Note and Term Note II duly executed by        the Borrower.               3.2.  A certificate of a Secretary or Assistant Secretary of the Borrower dated as        of the date of this Amendment and certifying as to the following:                     (a)   The Borrower’s Resolutions of the Board of Directors effective as              of April 18, 2019 (the “Resolutions”) authorizing this Amendment and the AT              Bancorp Acquisition.                     (b)   The incumbency, names, titles, and signatures of the Borrower’s              officers authorized to execute this Amendment, the Revolving Note and Term              Note II.                     (c)   Copies of the Borrower’s articles of incorporation and bylaws.                     (d)   A true and accurate copy of all AT Bancorp Acquisition              Documents.                     (e)   True and accurate copies of subordination agreements for             Indebtedness existing on the date of this Amendment and which will exist after             giving effect to the AT Bancorp Acquisition and disclosed on Schedule 6.11 as             Subordinated Debt, provided that, subordination agreements that have been             previously provided to the Bank which have not been amended or otherwise             modified need not be delivered with such certificate.                    (f)   That all necessary regulatory approvals required to consummate             the AT Bancorp Acquisition have been received by the Borrower, AT Bancorp,             AT Banks or MidWestOne Bank.                    (g)   That the AT Banks will have been merged into MidWestOne Bank             subsequent to the consummation of the AT Bancorp Acquisition.                    (h)   That the Borrower and AT Bancorp will, contemporaneously with             the disbursement of the proceeds of Term Loan II to the Borrower, consummate              the AT Bancorp Acquisition for an aggregate purchase price of approximately                                          13   

 

       $160,000,000 consisting of not more than $35,000,000 in cash and 4,117,541         shares of the Borrower’s common stock          3.3.  A certificate of good standing for the Borrower and MidWestOne Bank in  the jurisdiction of its incorporation or organization and certified by the appropriate  governmental officials as of a date not more than 30 days prior to the date of this  Amendment.         3.4.  Copies of all documents evidencing any necessary corporate action,  consent or governmental or regulatory approval (if any) with respect to this Agreement,  any of the other Loan Documents or the AT Bancorp Acquisition.         3.5.  UCC search for the Borrower, MidWestOne Bank, the AT Banks and AT  Bancorp from their jurisdictions of organization issued not more than 30 days prior to the  Closing Date.          3.6.  If required, a Beneficial Ownership Certification delivered to the Bank not  fewer than 5 Business Days prior to the date of this Amendment.         3.7.  The Bank shall have received written opinions of the Borrower’s counsel,  addressed to the Bank and addressing the matters set forth in Exhibit C to the Credit  Agreement as  related to this Amendment, the Revolving Note and Term Note II in form  and substance acceptable to the Bank.         3.8.  The Borrower shall not be in violation or breach of any other agreement  with the Bank of any type or amount or of any third party obligation in excess of  $100,000.          3.9.  No Material Adverse Occurrence has occurred, as determined solely by  the Bank in accordance with its business expertise, in the Borrower’s business, financial  condition or performance as reflected in the financial statements provided to the Bank  dated September 30, 2018, nor has there been any Material Adverse Occurrence in other  matters in conjunction with the Borrower’s request for an increase in the Revolving  Credit Amount, Term Loan II or the consummation of the AT Bancorp Acquisition on  the terms initially presented to and agreed upon by the Bank.         3.10. The Borrower shall have satisfied such other conditions as specified by the  Bank, including payment of all unpaid legal fees and expenses incurred by the Bank  through the date of this Amendment in connection with the Credit Agreement and the  Amendment Documents (as defined below).    Section 4.  Representations, Warranties, Authority, No Adverse Claim.            4.1.  Reassertion of Representations and Warranties, No Default.  The   Borrower hereby represents that on and as of the date hereof and after giving effect to this   Amendment (a) all of the representations and warranties in the Credit Agreement are true,   correct, and complete in all respects as of the date hereof as though made on and as of   such date, except for changes permitted by the terms of the Credit Agreement, and                                    14                

 

      (b) there will exist no Default or Event of Default under the Credit Agreement as        amended by this Amendment on such date that the Bank has not waived.               4.2.  Authority, No Conflict, No Consent Required, Enforceability.  The        Borrower represents and warrants that it has the power, legal right, and authority to enter        into this Amendment and has duly authorized as appropriate the execution and delivery        of this Amendment and all other agreements and documents (collectively, the        “Amendment Documents”) executed and delivered by the Borrower in connection        therewith by proper corporate action, and none of the Amendment Documents and the        agreements therein contravenes or constitutes a default under any agreement, instrument,        or indenture to which the Borrower is a party or a signatory, any provision of the        Borrower’s articles of incorporation or bylaws, or any other agreement or requirement of        law, or results in the imposition of any Lien on any of its property under any agreement        binding on or applicable to the Borrower or any of its property except, if any, in favor of        the Bank.  The Borrower represents and warrants that no consent, approval, or        authorization of or registration or declaration with any Person, including but not limited        to any governmental authority, is required in connection with the execution and delivery        by the Borrower of the Amendment Documents or other agreements and documents        executed and delivered by the Borrower in connection therewith or the performance of        obligations of the Borrower therein described, except for those that the Borrower has        obtained or provided and as to which the Borrower has delivered certified copies of        documents evidencing each such action to the Bank.  The Borrower represents and        warrants that the Amendment Documents constitute the legal, valid and binding        obligations of the Borrower, enforceable against the Borrower in accordance with their        terms, subject to limitations as to enforceability which might result from bankruptcy,        insolvency, moratorium and other similar laws affecting creditors’ rights generally and        subject to limitations on the availability of equitable remedies.               4.3.  No Adverse Claim.  The Borrower warrants, acknowledges, and agrees        that no events have taken place and no circumstances exist at the date hereof that would        give the Borrower a basis to assert a defense, offset, or counterclaim to any claim of the        Bank with respect to the Obligations.          Section 5.  Affirmation of Credit Agreement, Further References.  The Bank and  the Borrower each acknowledge and affirm that the Credit Agreement, as hereby amended, is  hereby ratified and confirmed in all respects and all terms, conditions, and provisions of the  Credit Agreement, except as amended by this Amendment, shall remain unmodified and in full  force and effect.  All references in any document or instrument to the Credit Agreement are  hereby amended to refer to the Credit Agreement as amended by this Amendment.           Section 6.  Merger and Integration, Superseding Effect.  This Amendment, from  and after the date hereof, embodies the entire agreement and understanding between the parties  hereto and supersedes and has merged into this Amendment all prior oral and written agreements  on the same subjects by and between the parties hereto with the effect that this Amendment shall  control with respect to the specific subjects hereof and thereof.                                          15   

 

       Section 7.  Severability.  Whenever possible, each provision of this Amendment and   the other Amendment Documents and any other statement, instrument, or transaction   contemplated thereby or relating thereto shall be interpreted so as to be effective, valid, and   enforceable under the applicable law of any jurisdiction, but if any provision of this Amendment,   the other Amendment Documents, or any other statement, instrument or transaction   contemplated thereby or relating thereto is held to be prohibited, invalid, or unenforceable under   the applicable law, such provision shall be ineffective in such jurisdiction only to the extent of   such prohibition, invalidity, or unenforceability, without invalidating or rendering unenforceable   the remainder of such provision or the remaining provisions of this Amendment, the other   Amendment Documents, or any other statement, instrument or transaction contemplated thereby   or relating thereto in such jurisdiction, or affecting the effectiveness, validity, or enforceability of   such provision in any other jurisdiction.          Section 8.  Successors.  The Amendment Documents shall be binding upon the   Borrower, the Bank, and their respective successors and assigns and shall inure to the benefit of   the Borrower, the Bank, and the Bank’s successors and assigns.          Section 9.  Legal Expenses.  As provided in Section 8.2 of the Credit Agreement, the   Borrower shall pay or reimburse the Bank, upon execution of this Amendment, for all reasonable   out-of-pocket expenses paid or incurred by the Bank, including filing and recording costs and  fees, charges and disbursements of outside counsel to the Bank and/or the allocated costs of in- house counsel incurred from time to time, in connection with the Credit Agreement, including in  connection with the negotiation, preparation, execution, collection, and enforcement of the  Amendment Documents and all other documents negotiated, prepared, and executed in  connection with the Amendment Documents, and in enforcing the obligations of the Borrower  under the Amendment Documents, and to pay and save the Bank harmless from all liability for  any stamp or other taxes that may be payable with respect to the execution or delivery of the   Amendment Documents, which obligations of the Borrower shall survive any termination of the   Credit Agreement.          Section 10. Headings.  The headings of various sections of this Amendment have   been inserted for reference only and shall not be deemed to be a part of this Amendment.          Section 11. Counterparts.  The Amendment Documents may be executed in several   counterparts as deemed necessary or convenient, each of which, when so executed, shall be   deemed an original, provided that all such counterparts shall be regarded as one and the same   document.          Section 12. Governing Law.  THE AMENDMENT DOCUMENTS SHALL BE   GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT   GIVING EFFECT TO CONFLICT OF LAW PRINCIPLES THEREOF, BUT GIVING EFFECT   TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS, THEIR HOLDING   COMPANIES, AND THEIR AFFILIATES.          Section 13. Acknowledgement and Release.  IN ORDER TO INDUCE THE BANK   TO ENTER INTO THIS AMENDMENT, THE BORROWER: (A) REPRESENTS AND   WARRANTS TO THE BANK THAT NO EVENTS HAVE TAKEN PLACE AND NO                                          16    

 

CIRCUMSTANCES EXIST AT THE DATE HEREOF WHICH WOULD GIVE THE  BORROWER THE RIGHT TO ASSERT A DEFENSE, OFFSET OR COUNTERCLAIM TO  ANY CLAIM BY THE BANK FOR PAYMENT OF THE OBLIGATIONS; AND (B)  HEREBY RELEASES AND FOREVER DISCHARGES THE BANK AND ITS  SUCCESSORS, ASSIGNS, DIRECTORS, OFFICERS, AGENTS, EMPLOYEES AND  PARTICIPANTS FROM ANY AND ALL ACTIONS, CAUSES OF ACTION, SUITS,  PROCEEDINGS, DEBTS, SUMS OF MONEY, COVENANTS, CONTRACTS,  CONTROVERSIES, CLAIMS AND DEMANDS, AT LAW OR IN EQUITY, WHICH THE  BORROWER EVER HAD OR NOW HAS AGAINST THE BANK OR ANY OF ITS  SUCCESSORS, ASSIGNS, DIRECTORS, OFFICERS, AGENTS, EMPLOYEES OR  PARTICIPANTS BY VIRTUE OF THEIR RELATIONSHIP TO THE BORROWER IN  CONNECTION WITH THIS AMENDMENT, THE CREDIT AGREEMENT, THE LOAN  DOCUMENTS AND TRANSACTIONS RELATED THERETO.                               [The next page is the signature page.]                                          17   

 

 

 

                                                                      EXHIBIT A-1 TO  CREDIT AGREEMENT AND FOURTH AMENDMENT THERETO                       REVOLVING NOTE                                                           See attached.                                                             Ex A-1-1 

 

 

                                                                                                  EXHIBIT A-3 TO  CREDIT AGREEMENT AND FOURTH AMENDMENT THERETO                         TERM NOTE II                                                           See attached.                             Exhibit A-3 

 

                                  TERM NOTE II                                            $35,000,000                                                       April 29, 2019                                                              Saint Paul, Minnesota         FOR VALUE RECEIVED, MIDWESTONE FINANCIAL GROUP, INC., a corporation  organized under the laws of the State of Iowa, hereby promises to pay to the order of  U.S. BANK NATIONAL ASSOCIATION, a national banking association (the “Bank”) at its  main office in Saint Paul, Minnesota, in lawful money of the United States of America in  Immediately Available Funds (as such term and each other capitalized term used herein are  defined in the Credit Agreement hereinafter referred to) the principal amount of THIRTY-FIVE  MILLION AND 00/100 DOLLARS ($35,000,000) or, if less, the aggregate unpaid principal  amount of all Term Loan Advances made by the Bank under the Credit Agreement and to pay  interest (computed on the basis of actual days elapsed and a year of 360 days) in like funds on  the unpaid principal amount hereof from time to time outstanding at the rates and times set forth  in the Credit Agreement.         This note is the Term Note II referred to in the Credit Agreement dated as of April 30,  2015 (as the same may have been and hereafter may be from time to time amended, restated or  otherwise modified, the “Credit Agreement”) between the undersigned and the Bank.  The  maturity of this note is subject to acceleration upon the terms provided in the Credit Agreement.         In the event of default hereunder, the undersigned agrees to pay all costs and expenses of  collection, including reasonable attorneys’ fees.  The undersigned waives demand, presentment,  notice of nonpayment, protest, notice of protest and notice of dishonor.         THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS NOTE  SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA  WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF,   BUT GIVING EFFECT TO FEDERAL LAWS OF THE UNITED STATES APPLICABLE TO  NATIONAL BANKS.                          [The next page is the signature page.]                                                                Term Note II 

 

 

                                                                                          EXHIBIT B TO  CREDIT AGREEMENT AND FOURTH AMENDMENT THERETO             FORM OF COMPLIANCE CERTIFICATE                           See attached.                                   

 

                             COMPLIANCE CERTIFICATE                           For use from and after April 29, 2019    To:  U.S. Bank National Association:    THE UNDERSIGNED HEREBY CERTIFIES THAT:          (1)   I am the duly elected chief financial officer of MidWestOne Financial Group, Inc.   (the “Borrower”);          (2)   I have reviewed the terms of the Credit Agreement dated as of April 30, 2015,  between the Borrower and U.S. Bank National Association (as amended, restated, or otherwise  modified from time to time, the “Credit Agreement”) and I have made, or have caused to be   made under my supervision, a detailed review of the transactions and conditions of the Borrower   during the accounting period covered by the Attachment hereto;          (3)   The examination described in paragraph (2) did not disclose, and I have no   knowledge, whether arising out of such examinations or otherwise, of the existence of any   condition or event that constitutes, a Default or an Event of Default (as such terms are defined in   the Credit Agreement) during or at the end of the accounting period covered by the Attachment   hereto or as of the date of this Certificate, except as described below (or on a separate attachment   to this Certificate).  The exceptions, listing, in detail, the nature of the condition or event, the   period during which it has existed, and the action the Borrower has taken, is taking, or proposes   to take with respect to each such condition or event, are as follows:                                        The foregoing certification, together with the computations in the Attachment hereto and   any financial statement or call report delivered with this Certificate in support hereof, are made   and delivered this ___ day of __________, ______ pursuant to Section 5.1 of the Credit   Agreement.                                               MIDWESTONE FINANCIAL GROUP,                                             INC.                                              By:                                                Name                                             Title:                                                                  Exhibit B 1 

 

                ATTACHMENT TO COMPLIANCE CERTIFICATE                    AS OF ______________, ____WHICH PERTAINS                  TO THE PERIOD FROM ________________, ______                            TO ________________, _______   Sections identified below are Sections of the Credit Agreement, to which reference should be  made for a complete description of requirements.                      Section 6.14               Non-Performing Loans and OREO to               Tangible Capital of the Subsidiary Banks, on a combined basis                (Maximum: 16.00% as of the last day of the fiscal               quarter ending June 30, 2015 and the               last day of each fiscal quarter thereafter until December 31, 2018, to be greater              than 16.00%,  and as of the last day of the fiscal quarter ending from and after              March 31, 2019, to be greater than 15.00 %. )    %                      Section 6.15               The Loan Loss Reserves of the Subsidiary Bank, on a combined basis              to Non-Performing Loans of              the Subsidiary Banks, on a combined basis               (Minimum: 80.00 % as of the last day of the fiscal              quarter ending June 30, 2015 and the              last day of each fiscal quarter thereafter)   %                      Section 6.16               Total Risk-Based Capital Ratio of the combined Subsidiary Banks  %                                                 Period              Combined                                            Subsidiary                                             Banks          From and after March 31, 2019 to and including 10.50%          December 30, 2019          December 31, 2019 to and including December 30, 10.60%          2020          December 31, 2020 to and including December 30, 10.85%          2021          December 31, 2021 to and including December 30, 11.05%          2022          December 31, 2022 to and including December 30, 11.25%          2023          From and after December 31, 2023   11.45%                                                            Exhibit B 2 

 

Section 6.17  Each Subsidiary Bank [is] / [is not] “well capitalized.”                      [The following Subsidiary Bank(s) [is/are] not “well capitalized:                     .]    Section 6.18   Fixed Charge Coverage Ratio of the Borrower   (Minimum: 1.25 to 1.0)         to 1.0                                           Exhibit B 3 

 

                                  SCHEDULE 4.18 TO           CREDIT AGREEMENT AND FOURTH AMENDMENT THERETO                                SUBSIDIARY BANKS                                                                    Subsidiary        Number of     Percentage Owned   State of Incorporation          Bank           Shares Issued                             and                         Outstanding                           100,000/  MidWestOne Bank                             100%                 Iowa                           100,000                                                                                           OTHER SUBSIDIARIES              Subsidiary              Percentage Owned     State of Incorporation   MidWestOne Insurance Services, Inc.     100%                   Iowa   MidWestOne Statutory Trust II           100%                 Delaware   Barron Investment Capital Trust I       100%                 Delaware   Central Bancshares Capital Trust II     100%                 Delaware   Following consummation of the ATBancorp Acquisition:   ATBancorp Statutory Trust I                                          100%                 Delaware     ATBancorp Statutory Trust II                                          100%                 Delaware                                              Sch. 4.18 

 

                                  SCHEDULE 6.11 TO            CREDIT AGREEMENT AND FOURTH AMENDMENT THERETO                              EXISTING INDEBTEDNESS                                               Prior to the consummation of the Central Bancshares Acquisition:    Subordinated Debt issued to MidWestOne Statutory Trust II ($15,464,000)   Subordinated Debt issued to Barron Investment Capital Trust I ($2,062,000)   Subordinated Debt issued to Central Bancshares Capital Trust II ($7,217,000)   Term Loan with US Bank ($6,250,000)       Following consummation of the ATBancorp Acquisition:    Subordinated Debt issued to ATBancorp Statutory Trust I ($7,732,000)    Subordinated Debt issued to ATBancorp Statutory Trust II ($12,372,000)   Subordinated Debt issued to investors maturing 5/31/23 ($10,835,000)                                                                                     Sch. 6.11EX-4.4

 Exhibit 4.4 

Dated 16 December 2017 

GLAXOSMITHKLINE LLC 
 and

 HAL V. BARRON 

SERVICE AGREEMENT 

 This Agreement is made on 16 December 2017 between: 

 

	(1)	 GLAXOSMITHKLINE LLC whose trading office is at Five Crescent Drive, Philadelphia, Pennsylvania 19112,
USA (the “Company”); and 

  

	(2)	 HAL V. BARRON
of                 (the “Executive”). 

  

	 	1	 Interpretation 

 

	1.1	 In this Agreement (and any schedules to it) 

“Accrued Obligations” means: 
  

	 	1.1.1	 the Executive’s base salary under this Agreement through to the end of the month in which the
Termination Date occurs at the rate in effect on the Termination Date and the reimbursement (in accordance with Group policy) of any expenses incurred by the Executive prior to the Termination Date; 

 

	 	1.1.2	 any unpaid bonus pertaining to the previous financial year and the product of any target bonus for the
financial year in which the Termination Date occurs and a fraction, the numerator of which is the number of days in the Company’s current financial year up to the Termination Date and the denominator of which is 365, paid as soon as practicable
on or following the termination date; 

  

	 	1.1.3	 any remuneration previously deferred by the Executive (together with any accrued interest) and not yet
paid by the Company including payment for any accrued vacation not taken by the Executive, in each case paid in accordance with the applicable plan, policy or program of the Company; and 

 

	 	1.1.4	 any other benefits to which the Executive is entitled, as determined in accordance with the applicable
plans and policies of the Company; 

 “Agreement” means this employment agreement, which as of the date
hereof supersedes and replaces any previous employment agreement between the Company and the Executive; 
 “Board” means the
board of directors of the Company from time to time or any person or committee nominated by that board as its representative for the purposes of this Agreement; 

“Chief Executive Officer” means the Chief Executive Officer of GSK plc from time to time; 

“Employment” means the employment governed by this Agreement; 

“Group” means the Company and any other Company controlling, controlled by or under the direct or indirect common control of
the Company, including, without limitation, GSK plc and any of its subsidiaries from time to time; 
 “Group Company” means
a member of the Group and “Group Companies” will be interpreted accordingly; 
 “GSK Board” means the board
of directors of GSK plc from time to time or any person or committee nominated by the GSK Board as its representative for the purposes of this Agreement; 

“GSK plc” means GlaxoSmithKline plc; 

 “Termination Date” means the date on which the Employment terminates
pursuant to this Agreement. 
  

	1.2	 References to any statutory provisions include any modifications or
re-enactments of those provisions. 

  

	1.3	 In this Agreement terms used in the context of the GlaxoSmithKline Performance Share Plan shall have the
meaning ascribed to them in such plan. 

  

	 	2	 Employment 

The Company confirms the Employment of the Executive, and the Executive confirms his Employment with the Company, on the terms and conditions
set out in this Agreement. 
  

	 	3	 Termination by Notice 

 

	3.1	 The Employment under the terms of this Agreement shall be deemed to have commenced on 1 January
2018, and the Employment shall continue until: 

  

	 	(i)	 the Employment is otherwise terminated in accordance with this Agreement; or 

 

	 	(ii)	 not less than 12 calendar months’ notice in writing is given by the Company to the Executive; or

  

	 	(iii)	 not less than 12 calendar months’ notice in writing is given by the Executive to the Company; and, in any
event, 

  

	 	(iv)	 at no point beyond 31 December 2024. In the event that this Agreement shall terminate pursuant to this
Clause 3.1(iv), then the Executive shall thereafter be deemed an employee “at will” and shall be entitled only to payment of Accrued Obligations. 

  

	3.2	 The Company may, in its absolute discretion, lawfully terminate the Employment of the Executive at any
time, with immediate effect and without cause, by paying in aggregate to the Executive within 30 days of the date notice of termination is given to him a sum equal to his base salary (excluding any other benefits) for the period this Agreement would
otherwise continue following such notice (not to exceed the maximum period of 12 months). For this purpose, salary shall be the base salary in effect at the date of termination of the Employment. 

 

	 	4	 Duties and Responsibilities 

 

	4.1	 The Executive shall be appointed as Chief Scientific Officer and President R&D. The Executive will
be compensated at GSK grade 0. The Executive shall have such powers and duties as are from time to time given to him by the Chief Executive Officer or, if different, the person to whom the Executive reports, consistent with the Employment and this
Agreement. 

  

	4.2	 During the Employment, the Executive shall devote his full business time and energies to the business
and affairs of the Company and GSK plc, consistent with any other duties and responsibilities he may have to any Group Companies. The Executive’s time shall be allocated among the Group Companies in accordance with the Executive’s
reasonable judgment and dependent upon the level of his responsibilities to any other Group Company, subject to the overall supervision and direction of the Chief Executive Officer or, if different, the person to whom the Executive reports.

	4.3	 The Executive shall not, without the prior written consent of the GSK Board, accept directorships,
trusteeships and other appointments (other than of Group Companies) or carry on or be engaged, concerned or interested either directly or indirectly in any other business or for profit activity. A list of the directorships and outside interests of
the Executive approved by the GSK Board as at the date of this Agreement is attached as Appendix 1 to this Agreement. Any fees earned by the Executive in respect of such authorised activities may be retained by the Executive.

  

	4.4	 While the location of the Executive’s activities shall be in or around San Francisco, CA subject to
the overall supervision and direction of the Chief Executive Officer, in order to perform properly his duties, he will be required to undertake travel elsewhere in the world and in particular to the UK and Pennsylvania where the Company
maintains its primary R&D centers. The Executive is required to reside at a location convenient to the Company’s offices in or around San Francisco, CA (or such other location as the Company may determine) during the Employment.

  

	 	5	 Salary, etc. 

  

	5.1	 In consideration of the services to be rendered by the Executive and the promises and covenants made by
the Executive under this Agreement, specifically including Section 16, the Executive shall be paid a base salary at the rate of $1,700,000 per annum payable in accordance with the Company’s pay practices for its executives from time to
time in force (but not less frequently than calendar monthly). The salary will be credited to the Executive’s bank account notified to the Company for the purpose or paid to Executive in check or cash or another manner compliant with applicable
law. Salary shall be reviewed annually in accordance with the Company’s normal administrative practices for its executives and may be increased (but not reduced) by the Company by such amount (if any) as it shall think fit.

  

	5.2	 The Executive shall be eligible, subject to Section 6.4, to participate: 

 

	 	(i)	 in all such cash bonus plans and programmes as are made available from time to time for executives of the
Company generally of the same grade in the relevant jurisdiction in accordance with the Company’s policy (or GSK plc’s policy, as applicable); and 

  

	 	(ii)	 in respect of the salary provided by Section 5.1, in such incentive programmes as are made available from
time to time for executives of the Company and/or GSK plc generally who are of the same grade in the relevant jurisdiction, 

in each case, subject to the terms and conditions of such bonus plans and programmes from time to time in force. Any grant of share options or
awards of performance shares under such plans and programmes shall be granted subject to performance conditions as determined by the GSK Board. The Executive’s future participation in certain of these plans and programmes may be affected if the
Executive does not satisfy the Share Ownership Requirements (as amended from time to time). It is agreed that in the event the Executive leaves the Company, the Executive will retain the relevant number of shares (as set out in the Share Ownership
Requirements) until at least one year after the Termination Date. The Executive’s salary under Section 5.1 of this Agreement shall be inclusive of any fees or other remuneration to which the Executive may be entitled or receives as a
Director, alternate Director, specialist adviser, consultant or by virtue of any other office or appointment in any Group Company. The Executive shall account to the Company for all such fees or other remuneration by paying over or procuring to be
paid over the same to the Company. 

	5.3	 No Group Company shall be liable for any costs or expenses, including any costs or expenses pertaining
to travel undertaken by the Executive, incurred as a result of any activity or participation in any role or capacity external to and unrelated to the Group. It is agreed that the Executive will promptly reimburse the Company against any such costs
that may be incurred by the Group. Further, the Executive authorises the Company at any time to deduct from his salary, or any other monies payable to him by the Company, all sums which he owes the Company. If this is insufficient, the Company will
require repayment of the balance. 

  

	 	6	 Expenses and other Benefits 

 

	6.1	 The Company shall promptly reimburse to the Executive all reasonable travel and other out of pocket
expenses properly incurred by him in the performance of his duties under the Employment. The Executive will submit claims for expense reimbursement to the Company regularly with appropriate supporting documentation, and in accordance with the
Company’s policies in effect from time to time. 

  

	6.2	 The medical benefit arrangements for the Executive and his family are as set out in the GlaxoSmithKline
Executive Medical Plan (as amended from time to time). Details, including eligibility criteria, are set out in the TotalReward section on Connect GSK. 

  

	6.3	 The Company at its expense shall provide the Executive with other benefits provided to executives of the
Company of the same grade, and the Executive shall be eligible to participate in all benefit plans, practices and policies as are made available by the Company from time to time to its executives generally of the same grade subject to their terms
and conditions from time to time in force. A list of all plans and programmes currently in operation is set out in Appendix 2. Details of the relevant plans and programmes are set out in the TotalReward section on Connect GSK.

  

	6.4	 The Company (and GSK plc, as applicable) reserves the absolute right and discretion to amend, modify or
terminate all such benefits, plans and programmes as are referred to in Sections 5.2, 6.2, 6.3 and 8 at any time and for any reason. 

  

	 	7	 Vacation 

In addition to all Company Holidays, the Executive shall be entitled to 20 days’ vacation in each year at full pay, which shall accrue
rateably during the calendar year in accordance with Company policy as in effect from time to time, to be taken at such times as the business of the Company may permit. On termination of the Employment the Executive will be entitled to be paid for
any accrued vacation not taken and will reimburse the Company for any vacation taken but not accrued in accordance with the terms of Company policy as in effect from time to time. 

 

	 	8	 Pension and Life Insurance 

The Executive shall be eligible to participate in the GlaxoSmithKline Cash Balance Pension Plan and any other retirement plans or deferred
compensation programmes made available by the Company to its senior executives in the United States, including, without limitation, the GlaxoSmithKline Retirement Savings Plan and the GlaxoSmithKline Executive Supplemental Savings Plan, subject to
the terms and conditions of such programmes from time to time in force. Details of such current plans and programmes are accessible from the intranet site “Connect GSK” and they are subject to amendment or withdrawal at the Company’s
discretion. 

	 	9	 Illness and Leave of Absence 

 

	9.1	 The Executive shall comply with the Company’s leave of absence policies from time to time in force.

  

	9.2	 The Executive shall be eligible to participate in the Company’s short-term and long-term disability
plans or programmes in force from time to time. 

  

	9.3	 If the Company has concerns about the Executive’s ability to perform the essential functions of his
role, the Company may require the Executive to have a medical examination every year (or at such shorter intervals as they may agree between them), by a doctor approved by the Company. The costs of such examinations shall be borne by the Company.
The Executive agrees and understands that this provision is job related and consistent with business necessity of the Company. 

  

	 	10	 Inventions and Copyright 

The Company’s Standard US Policy Requirements on Inventions, Copyright, and Confidentiality shall apply to the Executive. The
Company’s current policy language is attached as Appendix 3, which is incorporated by reference into this Agreement. The Executive expressly acknowledges and agrees to the terms, conditions, and promises contained in Appendix 3. 

 

	 	11	 Confidentiality; Company Securities 

Without prejudice to any other duty owed to the Company or to any Group Company, the Executive shall not, except in the proper performance of
his duties or as authorised by the Board, during or after the Employment, use, retain, or disclose to any person any Confidential Information (defined below) obtained or created by him during the Employment. 

 

	11.1	 In the course of the Employment, the Executive will obtain trade secrets and confidential information
belonging to or relating to Group Companies and other persons. He will treat such information as if it falls within the terms of Section 11 and Section 11 will apply with any necessary amendments, to such information. If requested to do so
by the Company, the Executive will enter into an agreement with other Group Companies and any other persons in the same terms as Section 11 with any amendments necessary to give effect to this provision. 

 

	11.2	 For the purposes of this Agreement, the term “Confidential Information” shall include,
but not be limited to confidential commercial, financial and strategic data pertaining to the Group and any other confidential information relating to the business or affairs of the Group including, without limitation, any invention, trade secret,
manufacturing process or patent information. The term “Confidential Information” shall not include any information: 

  

	 	11.2.1	 which is or becomes generally available to the public, or 

 

	 	11.2.2	 which is acquired by the Executive apart from his association with the Group 

other than, in each case, as a result of disclosure by the Executive or by any person to whom he has supplied information or by any person in
breach of a duty of confidentiality. In addition, the term “Confidential Information” shall not include any information which the Executive is required to disclose by applicable law or regulation or by order of a court or governmental body
of competent jurisdiction. 

	11.3	 During the Employment, the Executive shall be bound, in respect of transactions in securities issued by
any Group Company, by the Company’s and GSK plc’s policies from time to time in effect on employee securities dealing. In particular, the Executive shall advise the Company Secretary, Chief Financial Officer, Chief Executive Officer or
Chairman of GSK plc before he or any member of his immediate family seeks to trade in such securities and shall be bound by any directions given by the Company Secretary, Chief Financial Officer, Chief Executive Officer or Chairman.

  

	 	12	 General Termination Provisions 

 

	12.1	 On the termination of the Employment for whatever reason, or at any other time when requested to do so
by the Company, the Executive, upon receipt of written request from the Company, shall promptly: 

  

	 	(i)	 deliver up to the Company any property belonging to the Company or any other Group Company which may be in his
possession or under his control including Confidential Information, lists of customers, correspondence, documents and other property. The Executive will not retain any copies of any materials or other information. The Company shall promptly return
to the Executive and permit him to remove from the premises of the Company and any other Group Company, any property, personal records, files, etc. belonging to the Executive; and 

 

	 	(ii)	 resign on request by the Company or the GSK Board (if he has not already done so) from all offices held by him
in the Company and any other Group Company (except for any he is entitled to retain under any separate agreement with any Group Company), failing which the Executive irrevocably authorises the Company or GSK plc to appoint an officer of the Company
or GSK plc to execute all documents on his behalf and do all things necessary to effect such resignations; PROVIDED, however, that any such resignations pursuant to this Section 12.1(ii) shall be without prejudice to the Executive’s rights
under this Agreement. 

  

	12.2	 Any termination of the Employment shall be without prejudice to the Executive’s and the
Company’s continuing obligations under this Agreement. 

  

	12.3	 Upon the termination of the Executive’s Employment for whatever reason, the Executive shall
immediately repay all outstanding debts or loans due to the Company or any Group Company. 

  

	12.4	 The terms of the US GSK Severance Pay Plan or any other severance policy as in force from time to time,
shall not apply to the Executive. 

  

	 	13	 Termination due to Death or Inability to Perform Essential Functions 

 

	13.1	 In the event of the Executive’s death the Employment will terminate automatically on the date of
his death, which shall be the Termination Date for the purposes of this Agreement. His duly qualified executor shall be entitled to receive the Accrued Obligations. 

 

	13.2	 The Company may elect to terminate the Employment immediately without advance notice or payment in lieu
of notice by serving written notice, if an independent physician mutually agreeable to the Company and Executive has certified in writing that the Executive is unable to perform the essential functions of his role with or without reasonable
accommodation and will not, to a reasonable degree of medical certainty, be able to resume performance of the essential functions of his duties with or without reasonable accommodations for the

	 	foreseeable future. The Executive hereby acknowledges and agrees that this provision is job related and consistent with business necessity, and that it would be an undue hardship for the Company to maintain the
Employment under such circumstances. The Employment will terminate on the Termination Date specified in the Termination Notice. 

  

	13.3	 In the event the Company delivers a Termination Notice under 13.2, the Executive shall immediately be
relieved from all offices, appointments and responsibilities that he may then hold under the Employment and be relieved of any duty to work for or serve the Company or any Group Company. The Executive hereby acknowledges and agrees that this
provision is job related and consistent with business necessity, and that it would be an undue hardship for the Company to maintain any of the Executive’s offices, appointments, or responsibilities under such circumstances. The Executive shall
be entitled only to the Accrued Obligations, together with such rights as are provided for in the applicable benefits plan(s) in which the Executive participates. 

 

	 	14	 Termination for Cause 

 

	14.1	 The Company shall be entitled to terminate the Employment effective immediately without notice or
payment in lieu of notice for Cause (as defined in this Section 14) by serving written notice (“Notice of Termination for Cause”). 

  

	14.2	 “Cause” shall mean: 

 

	 	14.2.1	 the Executive is convicted of any criminal offense which in the reasonable opinion of the Chairman of
GSK plc or the GSK Board affects the Executive’s position as Chief Scientific Officer and President R&D (other than a motoring offence for which no custodial sentence is given to him); or 

 

	 	14.2.2	 the Executive, in carrying out his duties under the Employment, is found to have engaged in significant
misconduct (e.g., violation of regulation, law, or a significant GSK policy, such as the Code of Conduct) in the sole determination of the Company; or 

  

	 	14.2.3	 the Executive shall become personally bankrupt or insolvent; or 

 

	 	14.2.4	 the Executive shall be or become prohibited by law from being an employee, officer, or director; or

  

	 	14.2.5	 the Executive commits a material breach of any term of this Agreement. 

 

	14.3	 Any delay or forbearance by the Company in exercising any right of termination shall not constitute a
waiver of it. 

  

	14.4	 In the event that the Employment is terminated for Cause, the Employment shall terminate upon the date
on which the Board serves Notice of Termination for Cause and, except as otherwise required by applicable law, the Executive shall be paid only previously earned compensation , up to the date of termination including reimbursement for expenses
previously incurred and, save for the provisions of this Section 14.4, the Executive will have no claim for further compensation including incentive compensation or damages or any other remedy against the Company or any Group Company.

	 	15	 Termination by Notice Requirements, Additional Detail 

 

	15.1	 Subject to Sections 13 and 14 of this Agreement, the Employment under the terms of this Agreement shall
terminate on the occurrence of either: 

  

	 	15.1.1	 The election of the Company, upon not less than 12 months notice in writing by the Company to the
Executive in accordance with Section 3.1(ii); or 

  

	 	15.1.2	 The election of the Executive, upon not less than 12 months notice in writing by the Executive to the
Company in accordance with Section 3.1(iii). 

 Notwithstanding any other provision of this Agreement to the contrary,
if, following delivery of the notice as required under Section 3.1(ii) or 3.1(iii), the Executive abandons his employment with the Company prior to expiration of the 12 month notice period, the Executive shall be entitled to receive only those
payments set forth in Section 15.3 of this Agreement. 
  

	15.2	 In the event the Employment terminates pursuant to Section 15.1.1, the Executive shall be entitled
to receive the Accrued Obligations on or as soon as practicable following the Termination Date coinciding with the expiration of the 12 month notice period. Alternatively, the Company may, in its absolute discretion, lawfully terminate the
Employment immediately upon delivery of the written notice set forth in Section 3.1(ii) and pay the Executive a cash payment equal to 100% of his annual base salary (as in effect immediately prior to the Termination Date), payable in a lump sum
as soon as practicable on or following the Termination Date and any remuneration previously earned or deferred by the Executive (together with any accrued interest) and not yet paid by the Company. 

 

	15.3	 In the event the Employment terminates pursuant to Section 15.1.2, or if the Executive abandons the
Employment following delivery of the notice set forth in Section 3.1(ii) or 3.1(iii) but prior to expiration of the 12 month notice period, except as otherwise required by applicable law, the Executive shall be entitled only to payment of all
previously earned or deferred compensation then due and owing under this Agreement, up to the Termination Date, any unpaid bonus pertaining to the previous financial year, and reimbursement for expenses previously incurred and, save for the
provisions of this Section 15.3, the Executive will have no claim for damages or any other remedy against the Company or any Group Company. In the event the Executive abandons the Employment following delivery of the notice set forth in
Section 3.1(ii) or 3.1(iii) but prior to the expiration of the 12 month notice period, the Company may terminate the Employment effectively immediately and bring forward the Termination Date and, in this event, the Company agrees not to pursue
any claim for damages arising out of the Executive’s abandonment of the remaining notice period, save for its rights to enforce any other Section or Appendix of this Agreement including, but not limited to, Sections 10, 11, 12, 16, and 27 and
Appendix 3 and 4, which are unaffected. The amounts described in this Section 15.3 shall be paid as soon as practicable on or following the Termination Date. 

 

	 	16	 Restrictions during and after Termination of Employment 

 

	16.1	 In this Section: 

“Restricted Business” means any existing or prospective lines of business, any division, any business unit, or any product or
service of the Group with which the Executive worked, or which the Executive supported, during the last 12 months of the Employment. 

 “Restricted Period” means any period during which the Executive is employed
by the Company and the period of 12 months commencing on the Termination Date. In the event the Employment is terminated by Notice under paragraphs 15.1 and 3.1(ii) or 3.1(iii), the 12 month period is reduced by any time period between the delivery
of Notice and the Termination Date itself. 
  

	16.2	 The Executive will acquire Confidential Information and personal knowledge of and influence over
customers, clients and employees of the Company, GSK plc and its Group Companies during the course of the Employment. The improper disclosure or use of such information or knowledge by the Executive would cause the Group irreparable harm. To protect
these interests, and prevent such harm, the Executive agrees with the Company and GSK plc that the Executive will be bound by the following covenants: 

  

	 	16.2.1	 During the Employment, the Executive will not be employed by, affiliated with (except as the holder,
directly or indirectly, of less than 5 per cent of the shares) work for, or render services similar to those which the Executive is involved during the Employment on behalf of, any firm or business organization that competes or is planning to
compete with the Restricted Business, or render services to, or assist in any way, any competitor of the Group by working on or having any involvement with products or services that are similar to the Restricted Business. 

 

	 	16.2.2	 During the Employment, the Executive will not canvass, solicit or induce any customer, client or vendor
of the Company or any Group Company to become a customer, client or vendor of any other person, firm, or corporation other than the Group with respect to the Restricted Business. After the Executive’s Employment with the Company, the Executive
will not use Confidential Information to canvass, solicit or induce any customer, client or vendor of the Company or any Group Company to become a customer, client or vendor of any other person, firm, or corporation other than the Group with respect
to the Restricted Business. 

  

	 	16.2.3	 During the Restricted Period, the Executive will not interfere or endeavor to interfere with the
continuance of the provision of goods or services to the Company, or any Group Company, by any supplier which was a supplier of goods or services to the Company, or any Group Company during the last 12 months of the Employment.

  

	 	16.2.4	 During the Restricted Period, the Executive will not solicit or attempt to solicit any officer,
director, senior employee or senior consultant of the Group to leave the Group to join or perform services on behalf of any other person or entity. 

  

	16.3	 Each of the obligations imposed on the Executive by this Section 16 extend to the Executive acting
not only on his own account but also on behalf of any other firm, company or other person and shall apply whether the Executive acts directly or indirectly. 

  

	16.4	 Following the Termination Date, the Executive will not represent himself as being in any way connected
with the businesses of the Company, GSK plc or of any other Group Company (except to the extent agreed in writing by such a company). 

  

	16.5	 Any benefit given or deemed to be given by the Executive to any Group Company under the terms of this
Section 16 is received and held in trust by the Company for the relevant Group Company. The Executive will enter into appropriate restrictive covenants directly with other Group Companies if asked to do so by the Company or GSK plc.

	 	17	 Consideration and Reasonableness of Restrictions 

 

	17.1	 The Executive acknowledges that the restrictions contained in Section 16 are supported by
consideration in the form of compensation received by the Executive under this Agreement. 

  

	17.2	 Each of the obligations on the Executive contained in Section 16 constitutes a separate and
independent restriction on the Executive notwithstanding that they may be contained in the same Section, paragraph or sentence. 

  

	17.3	 Should the restrictions contained in Section 16 be found to be void but would be valid if some part
thereof were deleted or the period or radius of application reduced, then such restriction shall apply with such modification as may be necessary to make it valid and effective. In particular, the Executive agrees that the restrictions are
reasonable and necessary for the protection of the Company and the Group Companies. 

  

	17.4	 If the Executive shall, during the Restricted Period, receive from any person, firm or company, an offer
to provide services in any capacity whatsoever, or to enter into employment where acceptance of such offer, or the taking of such employment, might render the Executive in breach of the provisions of this Agreement, the Executive shall promptly
advise the offeror of the existence of the restrictions set forth in Section 16 of this Agreement. 

  

	17.5	 The Executive acknowledges that the Company may have no adequate remedy at law and would be irreparably
harmed if the Executive breaches or threatens to breach the provisions of Section 16 above and, therefore, agrees that the Company shall be entitled to injunctive relief to prevent any breach or threatened breach of Section 16 above, and
to specific performance of the terms of each such Section in addition to any other legal or equitable remedy it may have. The Executive further agrees that he shall not, in any equity proceedings involving the Executive relating to the enforcement
of Section 16 above raise the defense that the Company has an adequate remedy at law. Nothing in this Agreement shall be construed as prohibiting the Company from pursuing any other remedies at law or in equity that it may have.

  

	 	18	 Severability 

In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining
provisions or portions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law. 
  

	 	19	 Successors and Assigns 

 

	19.1	 This Agreement shall be binding upon and inure to the benefit of the Company or any corporation or other
entity to which the Company may transfer all or substantially all of its assets and business and to which the Company may assign this Agreement, in which case “Company”, as used in this Agreement, shall mean such corporation or
other entity. The foregoing shall not relieve the Company of any of its obligations under Section 15 of this Agreement. The rights of the Executive shall inure to the benefit of his heirs, executors, administrators and other personal
representatives. 

  

	19.2	 The Executive may not assign this Agreement or any part of it, or any rights thereunder or delegate any
duties to be performed by him under it to anyone else. 

	 	20	 Survivorship 

To the extent contemplated by this Agreement, respective rights and obligations of the parties set out in this Agreement shall survive any
termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations. 
  

	 	21	 Notices 

Any notice (including any notice of termination of the Employment) required or permitted to be given under this Agreement shall be in writing
and shall be deemed to have been given when delivered personally or sent by courier, duly addressed to the party concerned at such address as the party may notify to the other. Any notice delivered personally under this Section 21 shall be
deemed given on the date delivered and any notice sent by courier shall be deemed given on the date delivery is recorded by such courier. 
  

	 	22	 Entire Agreement 

 

	22.1	 This Agreement supersedes any previous written or oral agreement between the parties in relation to the
matters dealt with in it. It contains the whole agreement between the parties relating to the Employment at the date the agreement was entered into (except for those terms implied by law which cannot be excluded by the agreement of the parties). The
Executive acknowledges that he has not been induced to enter into this Agreement by any representation, warranty or undertaking not expressly incorporated into it. 

 

	22.2	 Neither party’s rights or powers under this Agreement will be affected if: 

 

	 	22.2.1	 one party delays in enforcing any provision of this Agreement; or 

 

	 	22.2.2	 one party grants time to the other party. 

 

	 	23	 Amendment or Modification; Waiver 

No provision of this Agreement may be amended or waived unless such amendment or waiver is agreed to in writing, signed by the Executive and by
a duly authorised officer of the Company who shall supply the Executive with evidence of such authority. 
  

	 	24	 Withholding 

Anything to the contrary notwithstanding, all payments required to be made by the Company under this Agreement to the Executive, or to his
estate or beneficiaries, shall be subject to withholding of such amounts relating to taxes as the Company may be required to withhold pursuant to any applicable statute, law or regulation. 

 

	 	25	 Indemnification and Insurance 

 

	26.1	 The Company agrees that if the Executive is made a party or is threatened to be made a party to any
action, suit, proceeding or governmental or other investigation by reason of the fact of the Employment or that he is or was a director, officer or employee of the Company or is or was serving at the request of the Company as a director, officer,
employee or agent of another Group Company or entity except for any action instigated by the Company or the Executive (a “Proceeding”), he shall be indemnified by the Company to the fullest extent permitted by applicable law against
all expenses, liabilities and losses reasonably incurred or suffered by the Executive in connection with such a Proceeding (including any tax payable by the Executive as a result of payments made by the Company pursuant to this indemnity),

	 	
including, without limitation, payment of expenses incurred in defending a Proceeding prior to the final disposition of such Proceeding; PROVIDED, however, that written notice of such Proceeding
is given promptly to the Company by the Executive and the Company is permitted (where appropriate) to participate in and assume the defence of such Proceeding. The provisions of this Section 25 shall survive the termination of the Employment
and shall be in addition to any other rights to indemnification to which the Executive may from time to time be entitled, whether under any applicable insurance policies or otherwise. 

 

	26.2	 The Company will provide the Executive with Legal Expenses Insurance and Directors’ and
Officers’ Liability Insurance under the Company’s policy current from time to time in force subject to such cover being available at reasonable commercial rates. 

 

	 	26	 Collective Agreements – Disciplinary Rules and Procedures 

There are no collective agreements which directly affect the terms and conditions set out in this Agreement. 

The Company’s harassment and bullying policies, disciplinary rules and procedures and grievance procedures, as in force from time to time,
shall apply to the Executive. The Company reserves the right to leave out any or all of the stages of those rules and procedures where it considers it appropriate to do so. 
  

	 	27	 Executive Financial Recoupment Policy 

The Company’s standard policy on financial recoupment shall apply to the Executive. The current policy titled Executive Financial
Recoupment Policy is attached as Appendix 4 and incorporated by reference herein. 
  

	 	28	 Data Protection 

The Executive consents to the Company or any Group Company holding and processing both electronically and manually the data it collects which
relates to the Executive for the purpose of the administration and management of its employees and its business and for compliance with applicable procedures, laws and regulations. The Executive also consents to the transfer of such personal
information to other offices the Company may have or to a Group Company or to other third parties whether or not outside the United States for administration purposes and other purposes in connection with the Executive’s Employment where it is
necessary or desirable for the Company to do so. 
  

	 	29	 Section 409A 

 

	29.1	 It is the intention of the parties to this Agreement that no payment or entitlement pursuant to this
Agreement will give rise to any adverse tax consequences to the Executive under Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder, including that issued after the date hereof. The
Agreement shall be interpreted to that end and, consistent with that objective and notwithstanding any provision herein to the contrary, the Company may take any action it deems necessary or desirable to amend any provision herein to avoid the
application of or excise tax under Section 409A, after giving the Executive reasonable notice and opportunity to comment. Further, no effect shall be given to any provision herein in a manner that reasonably could be expected to give rise to
adverse tax consequences under Section 409A of the Code. 

	29.2	 Any annual cash bonus that the Executive shall become entitled to receive hereunder for any calendar
year shall be paid by the Company at such time and in such manner that annual bonuses are paid to other senior executives of the Company, but not later than the March 15 immediately following the end of the applicable calendar year; provided it
shall not be a breach of this Agreement if payment is made later in the year to the extent the bonus is not determinable by March 15 and payment is made by payroll no later than December 31 of such year. 

 

	29.3	 All payments to be made upon a termination of Employment under the Agreement will only be made upon a
“separation from service” under Section 409A of the Code. In no event may the Executive, directly or indirectly, designate the calendar year of payment. To the maximum extent permitted under Section 409A of the Code and its
corresponding regulations, the amounts payable under the Agreement to be made upon termination of Employment are intended to meet the requirements of the short-term deferral exemption under Section 409A of the Code and the “separation pay
exception” under Treas. Reg. §1.409A-1(b)(9)(iii). For purposes of the application of Treas. Reg. §1.409A-1(b)(4) (or any successor provision), each
payment in a series of payments to the Executive will be deemed a separate payment. 

  

	29.4	 Notwithstanding anything in this Agreement to the contrary, in the event that the Executive is deemed to
be a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, any payment under this Agreement that constitutes deferred compensation subject to 409A of the Code and would otherwise commence to be paid as a
result of the Executive’s “separation from service” (as defined in Section 409A of the Code and any Treasury Regulations promulgated thereunder), will not be made to the Executive before the lapse of six months after the date
such payment would have been made but for this Section 29.4. Any payments that are postponed in accordance with this Section 29.4 shall be paid in a lump sum payment within 10 days after the end of the six month period. If the Executive
dies during the postponement period prior to payment of the postponed amount, the amounts withheld on account of Section 409A of the Code shall be paid to the personal representative of the Executive’s estate within 60 days after the date
of Executive’s death. 

  

	 	30	 Governing Law 

This Agreement shall be deemed a contract made under, and for all purposes shall be construed in accordance with, the laws of the Commonwealth
of Pennsylvania. Each of the parties submits to the exclusive jurisdiction of the Commonwealth of Pennsylvania’s courts as regards any claim or matter under this Agreement. 

	 	31	 Titles 

Titles to the Sections in this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference
to the title of any Section. 
 IN WITNESS WHEREOF the parties hereto have executed this Agreement as a deed on the day and year first above written

 GLAXOSMITHKLINE LLC 
  

			
	By:	 	 /s/ Dan Troy

	Name:	 	Daniel B Troy
	Title:	 	General Counsel and SVP
	Date:	 	December 8, 2017

  

	
	HAL V. BARRON
	
	 /s/ Hal V. Barron

	Date: 16 December 2017

  

					
	Signed Sealed and Delivered by the
said Hal V. Barron in the presence of:	  	 

	    	/s/ Carol
Cunningham                                        

	  
 Name: Carol Cunningham

Address:

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