Document:

EX-10.1

   

  Exhibit 10.1

  VERRA MOBILITY CORPORATION

  PERFORMANCE SHARE UNITS

  NOTICE OF GRANT AND AWARD AGREEMENT

   

  	Verra Mobility Corporation (the “Company”), pursuant to its 2018 Equity Incentive Plan (the “Plan”), this Notice of Grant (“Grant Notice”) and the attached Award Agreement (the “Agreement”), hereby grants to the holder listed below (the “Participant”), an award (the “Award”) of Performance Share Units (the “Units”), each of which represents the right to receive on the applicable Settlement Date one (1) share of Stock (each a “Share”), as follows:

   

  		
	Participant:
	 

	Grant Date:
	 

	Target Number of Units:
			, subject to adjustment as provided by the Agreement.

	Maximum Number of Units:
			, which is 150% of the Target Number of Units, subject to adjustment as provided by the Agreement.

	Performance Period:
	The three-year period beginning [________] and ending [_________], subject to Section 9.1 of the Agreement (the “Performance Period”).

	Performance Measure:
	Relative Total Stockholder Return (“Relative TSR”), meaning the percentile rank for the Performance Period of Company Annualized TSR versus the Annualized TSR of the Comparator Group, all as determined in accordance with Section 2 of the Agreement.

	Comparator Group:
	The group of companies determined in accordance with Appendix B (each, a “Comparator Group Company”).

	Earned Units:
	A number of Units (rounded up to the nearest whole Unit), if any (not to exceed the Maximum Number of Units), equal to the product of (i) the Target Number of Units and (ii) the Relative TSR Factor, as illustrated by Appendix A.

	Relative TSR Factor:
	A percentage (rounded to the nearest 1/100 of 1% and not greater than 150% or less than 50%) determined in accordance with Section 2 of the Agreement; provided, however, that (i) the Relative TSR Factor shall be zero percent (0%) if the Relative TSR is less than 25th percentile and (ii) the Relative TSR Factor shall not exceed 100% if the Company Absolute TSR for the Performance Period is less than zero percent (0%).  Determination of the Relative TSR Factor is illustrated by Appendix A.

   

  	 

  

   

  		
	Vesting Date:
	[_________], except as otherwise provided by the Agreement.

	Vested Units:
	Provided that the Participant’s Service has not terminated prior to the Vesting Date (except as otherwise provided by the Agreement), the Earned Units, if any, shall become Vested Units on the Vesting Date.

	Settlement Date:
	For each Vested Unit, except as otherwise provided by the Agreement, the Settlement Date shall be the Vesting Date or as soon thereafter as practicable; provided, however that the Committee, in its discretion, may specify as the Settlement Date a later date on which the sale of Shares to be issued in settlement of Vested Units would not violate the Trading Compliance Policy, but in any even no later than the 15th day of the third calendar month following the end of the Applicable Year in which the Vesting Date occurs.  For this purpose, “Applicable Year” means the calendar year or the Company’s fiscal year, whichever year ends later.

   

  By their signatures below or by electronic acceptance or authentication in a form authorized by the Company, the Company and the Participant agree that the Award is governed by this Grant Notice and by the provisions of the Plan and the Agreement, both of which are made part of this document.  The Participant acknowledges that copies of the Plan, the Agreement and the prospectus for the Plan are available on the Company’s internal web site and may be viewed and printed by the Participant for attachment to the Participant’s copy of this Grant Notice.  The Participant represents that the Participant has read and is familiar with the provisions of the Plan and the Agreement, and hereby accepts the Award subject to all of their terms and conditions.  The Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan or relating to the Units.

   

  					
	VERRA MOBILITY CORPORATION
	 
	PARTICIPANT

	By:
	 
	 
	By:
	 

	Print Name:
	 
	 
	Print Name:
	 

	Title:
	 
	 
	 
	 

	Address:
	 
	 
	Address:
	 

	 
	 
	 
	 
	 

   

   

   

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  APPENDIX A

   

  ILLUSTRATION OF RELATIVE TSR FACTOR AND RESULTING NUMBER OF EARNED UNITS

   

  			
	Relative TSR
(Percentile rank of Company Annualized TSR versus the Annualized TSR of the Comparator Group)
	Relative TSR Factor
(Rounded to nearest 1/100 of 1%)
	Earned Units
(Per 1,000 Target Units, rounded up to nearest whole Unit)

	Maximum:	75th Percentile and above
	150.00%
	1,500

	70th Percentile
	137.5%
	1,375

	65th Percentile 
	125%
	1,250

	60th Percentile 
	112.5%
	1,125

	Target:		55th Percentile 
	100.00%
	1,000

	50th Percentile
	91.67%
	917

	45th Percentile
	83.33%
	833

	40th Percentile
	75.00%
	750

	35th Percentile
	66.67%
	667

	30th Percentile
	58.33%
	583

	25th Percentile 
	50.00%
	500

	Threshold:	Less than 25th percentile 
	0%
	0

   

  •The Relative TSR Factor may not exceed 150%.

  •If the Company Absolute TSR for the Performance Period is a negative number, the Relative TSR Factor may not exceed 100% even if the Company Annualized TSR exceeds the Comparator Group 55th Percentile Annualized TSR.

  •If the Relative TSR is less than 25th percentile, the Relative TSR Factor shall be zero percent (0%).

  •The Relative TSR Factor is determined by linear interpolation for Relative TSRs falling between the whole numbers represented in the table above.

   

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  APPENDIX A CONTINUED

   

  ILLUSTRATIONS OF CALCULATION OF EARNED UNITS

  PER 1,000 TARGET UNITS

   

   

  			
	Company Annualized TSR Exceeds Comparator Group 55th Percentile Annualized TSR

	Assumptions
	 
	 

	 
	 
	 

	Company:
	 
	 

	Beginning Average Per Share Closing Price
	 
	$15.00

	Ending Average Per Share Closing Price
	 
	$26.00

	Dividends per Share
	 
	$0.00

	Performance Period
	 
	3 years

	 
	 
	 

	Comparator Group:
	 
	 

	Comparator Group 75th Percentile Annualized TSR
Comparator Group 55th Percentile Annualized TSR
	 
	23.00%
15.00%

	 
	 
	 

	Computations
	 
	 

	 
	 
	 

	Company Annualized TSR
	[($26/$15) (1/3) – 1] x 100%
	20.12%

	 
	 
	 

	Relative TSR
	Percentile Rank vs. Comparator Group 
	65th Percentile

	 
	 
	 

	Relative TSR Factor
	((65th–55th)*2.5%)+100% 
	125.00%

	 
	 
	 

	Earned Units
	1,000 x 125.00%
	1,250

   

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	Company Annualized TSR Is Less Than Comparator Group 55th Percentile Annualized TSR

	Assumptions
	 
	 

	 
	 
	 

	Company:
	 
	 

	Beginning Average Per Share Closing Price
	 
	$15.00

	Ending Average Per Share Closing Price
	 
	$20.00

	Dividends per Share
	 
	$0.00

	Performance Period
	 
	3 years

	 
	 
	 

	Comparator Group:
	 
	 

	Comparator Group 55th Percentile Annualized TSR
Comparator Group 25th Percentile Annualized TSR
	 
	15.00%
 
8.00%

	 
	 
	 

	Computations:
	 
	 

	 
	 
	 

	Company Annualized TSR
	[($20/$15) (1/3) – 1] x 100%
	10.06%

	 
	 
	 

	Relative TSR
	Percentile Rank vs. Comparator Group 
	40th Percentile

	 
	 
	 

	Relative TSR Factor
	100%-((55th-40th)*1.67%)
	75%

	 
	 
	 

	Earned Units
	1,000 x 75%
	750

   

   

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  APPENDIX B

   

  COMPARATOR GROUP

   

  The Comparator Group consists of all companies that, as of the Grant Date, are included in the S&P 1000 Index (i.e., the S&P Mid-Cap 400 Index and the S&P Small-Cap 600 Index) (the “Comparator Group Criteria”).

   

   

  The Comparator Group established as of the Grant Date, and, if applicable, a constituent’s company’s Total Stockholder Return for the Performance Period, will only be modified during the Performance Period as follows:

   

  •A constituent company that becomes bankrupt during the Performance Period will remain a member of the Comparator Group, but its Annualized TSR for the Performance Period will be deemed to equal negative 100%.

  •A constituent company that is acquired or ceases to be publicly traded for a reason other than bankruptcy during the Performance Period will be excluded from the Comparator Group.

  •A constituent company that distributes a portion of its business in a spin-off transaction during the Performance Period and that remains publicly traded will be retained in the Comparator Group, but the company that is spun off will not be included in the Comparator Group.

  •A constituent company that ceases to satisfy the Comparator Group Criteria during the Performance Period nevertheless will be retained in the Comparator Group.

   

   

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  VERRA MOBILITY CORPORATION

  PERFORMANCE SHARE UNITS

  AWARD AGREEMENT

  (U.S. PARTICIPANTS)

   

  	Verra Mobility Corporation (the “Company”) has granted to the Participant named in the Grant Notice to which this Agreement is attached an Award consisting of Performance Share Units (the “Units”) subject to the terms and conditions set forth in the Grant Notice and this Agreement.  The Award has been granted pursuant to the Verra Mobility Corporation 2018 Equity Incentive Plan (the “Plan”), as amended to the Grant Date, the provisions of which are incorporated herein by reference.

  	Unless otherwise defined herein or in the Grant Notice, capitalized terms shall have the meanings assigned under the Plan.

  1.The Award.

  The Company hereby awards to the Participant the Target Number of Units set forth in the Grant Notice, which, depending on the extent to which the Performance Goal is attained during the Performance Period, may result in the Participant earning as little as zero (0) Units or as many as the Maximum Number of Units.  Subject to the terms of this Agreement and the Plan, each Unit, to the extent it is earned and becomes a Vested Unit, represents a right to receive on the Settlement Date one (1) Share.  Unless and until a Unit has been determined to be an Earned Unit and has vested and become a Vested Unit as set forth in the Grant Notice, the Participant will have no right to settlement of such Units.  Prior to settlement of Vested Units, such Units will represent an unfunded and unsecured obligation of the Company.

  2.Certain Defined Terms.

  2.1.“Annualized TSR Percentage” means, for the Company and each Comparator Group Company, the compound annual growth rate, expressed as a percentage (rounded to the nearest 1/100 of 1%), in the value of one share of such company’s common stock during the Performance Period due to the appreciation in the price per share and dividends paid during such period with respect to such share, assuming dividends are reinvested, calculated as follows:

  Ending Price + DividendsBeginning Price 1N— 1 x 100%

  Where,

  “Ending Price” is the Ending Average Per Share Closing Price of such company;

  “Dividends” are the aggregate values of all dividends paid to a stockholder of record of such company with respect to one share of common stock during the Performance Period;

  “Beginning Price” is the Beginning Average Per Share Closing Price of such company; and

  “N” is the number of 12-month periods that have elapsed between the first day of the Performance Period and the last day of the Performance Period (which may not be a full integer if computed in connection with a Change in Control or a termination of employment under Section 9.2).

  	 

  

   

  2.2.“Average Per Share Closing Price” means, for the Company and each Comparator Group Company, the average of the daily closing prices per share of common stock of such company as reported on the national or regional securities exchange or quotation system constituting the primary market for such common stock for all trading days falling within the applicable averaging period.

  2.3.“Beginning Average Per Share Closing Price” means, for the Company and each Comparator Group Company, the Average Per Share Closing Price for the 20 trading days beginning on the first trading day occurring on or immediately following the first day of the Performance Period.

  2.4.“Ending Average Per Share Closing Price” means, for the Company and each Comparator Group Company, the Average Per Share Closing Price for the 20 trading days ending on the last trading day of the Performance Period.

  2.5.“Company Absolute TSR” means the percentage point increase or decrease (rounded to the nearest 1/100 of 1%) equal to the quotient of (a) the sum of (i) the Ending Average Per Share Closing Price of the Company and (ii) the aggregate value of all dividends paid to a stockholder of record of the Company with respect to one Share during the Performance Period, divided by (b) the Beginning Average Per Share Closing Price of the Company.

  2.6.“Company Annualized TSR” means the Company’s Annualized TSR Percentage for the Performance Period.

  2.7.“Comparator Group Annualized TSR” means the Annualized TSR Percentages of all Comparator Group Companies for the Performance Period.

  2.8.“Relative TSR” means, for the Performance Period, the percentile rank of Company Annualized TSR versus Comparator Group Annualized TSR 

  2.9.“Relative TSR Factor” means a percentage (rounded to the nearest 1/100 of 1%) determined as follows:

  2.9.1.Relative TSR Above the 55th Percentile.  If the Relative TSR for the Performance Period is equal to or greater than the 55th percentile of the Comparator Group, the Relative TSR Factor shall be calculated as follows:

  Relative TSR-55 x 2.5+100%

  2.9.2.Relative TSR Below the 55th Percentile.  If the Relative TSR for the Performance Period is below the 55th percentile of the Comparator Group, the Relative TSR Factor shall be calculated as follows:

  100%-55-Relative TSR x 1.67

  Notwithstanding the foregoing, the calculation of the Relative TSR Factor shall be qualified by the following:

  2.9.2.1.the Relative TSR Factor may not exceed 150%;

  2.9.2.2.if the Company Absolute TSR for the Performance Period is a negative number, the Relative TSR Factor may not exceed 100% even if the Company Annualized TSR exceeds the Comparator Group 55th Percentile Annualized TSR; and

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  2.9.2.3.if the Relative TSR is less than the 25th percentile, the Relative TSR Factor shall be zero percent (0%).

  3.Committee Determination of Earned Units.

  3.1.Level of Performance Measure Attained.  As soon as practicable following completion of the Performance Period, but in any event no later than the Settlement Date, the Committee shall determine the level of attainment of the Performance Measure during the Performance Period, the resulting Relative TSR Factor and the number of Units which have become Earned Units.

  3.2.Adjustment for Leave of Absence or Part-Time Work.  Unless otherwise required by law or Company policy, if the Participant takes one or more unpaid leaves of absence in excess of thirty (30) days in the aggregate during the Performance Period, the number of Units which would otherwise become Earned Units shall be prorated on the basis of the number of days of the Participant’s Service during the Performance Period during which the Participant was not on an unpaid leave of absence.  Unless otherwise required by law or Company policy, if the Participant commences working on a part-time basis during the Performance Period, the Committee may, in its discretion, reduce on a pro rata basis (reflecting the portion of the Performance Period worked by the Participant on a full-time equivalent basis) the number of Units which would otherwise become Earned Units, or provide that the number of Units which would otherwise become Earned Units shall be reduced as provided by the terms of an agreement between the Participant and the Company pertaining to the Participant’s part-time schedule.

  4.Vesting of Earned Units.

  4.1.Normal Vesting.  Except as otherwise provided by this Agreement, Earned Units shall vest and become Vested Units as provided in the Grant Notice.

  4.2.Vesting Upon a Change in Control.  In the event of a Change in Control, the vesting of Earned Units shall be determined in accordance with Section 9.1.

  4.3.Vesting Upon Involuntary Termination in Anticipation of a Change in Control.  In the event that Participant’s Service is terminated by the Company for a reason other than for Cause, death or Disability (an “Involuntary Termination”), and such Involuntary Termination either (a) occurred within the ninety (90) day period prior to the effective date of a Change in Control or (b) is demonstrated by the Participant to the reasonable satisfaction of the Committee to have been at the request of a third party who is a party to such Change in Control (in either case, an “Involuntary Termination in Anticipation of a Change in Control”), then the vesting of Earned Units shall be determined in accordance with Section 9.2.

  4.4.Vesting Upon Involuntary Termination Following a Change in Control.  In the event that upon or within twelve (12) months following the effective date of a Change in Control, the Participant’s Service terminates due to Involuntary Termination, then the vesting of Earned Units shall be determined in accordance with Section 9.3.

  5.Termination of Service.

  In the event that the Participant’s Service terminates for any reason, with or without cause, other than as described in Section 4.3 or 4.4, the Participant shall forfeit and the Company shall automatically reacquire all Units which are not, as of the time of such termination, Vested Units, and the Participant shall not be entitled to any payment therefor.

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  6.Settlement of the Award.

  6.1.Issuance of Shares.  Subject to the provisions of Section 6.3 and Section 7 below, the Company shall issue to the Participant on the Settlement Date with respect to each Vested Unit to be settled on such date one (1) Share.  Shares issued in settlement of Vested Units shall not be subject to any restriction on transfer other than any such restriction as may be required pursuant to Section 6.3.

  6.2.Beneficial Ownership of Shares; Certificate Registration.  The Participant hereby authorizes the Company, in its sole discretion, to deposit any or all Shares acquired by the Participant pursuant to the settlement of the Award with the Company’s transfer agent, including any successor transfer agent, to be held in book entry form, or to deposit such Shares for the benefit of the Participant with any broker with which the Participant has an account relationship of which the Company has notice.  Except as provided by the foregoing, a certificate for the Shares acquired by the Participant shall be registered in the name of the Participant, or, if applicable, in the names of the heirs of the Participant.

  6.3.Restrictions on Grant of the Award and Issuance of Shares.  The grant of the Award and issuance of Shares upon settlement of the Award shall be subject to compliance with all applicable requirements of U.S. federal, state or foreign law with respect to such securities.  No Shares may be issued hereunder if the issuance of such Shares would constitute a violation of any applicable U.S. federal, state or foreign securities laws or other laws or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any Shares subject to the Award shall relieve the Company of any liability in respect of the failure to issue such Shares as to which such requisite authority shall not have been obtained.  As a condition to the settlement of the Award, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.  Further, regardless of whether the transfer or issuance of the Shares to be issued pursuant to the Units has been registered under the Securities Act or has been registered or qualified under the securities laws of any State, the Company may impose additional restrictions upon the sale, pledge, or other transfer of the Shares (including the placement of appropriate legends on stock certificates and the issuance of stop-transfer instructions to the Company’s transfer agent) if, in the judgment of the Company and the Company’s counsel, such restrictions are necessary in order to achieve compliance with the provisions of the Securities Act, the securities laws of any State, or any other law.

  6.4.Fractional Shares.  The Company shall not be required to issue fractional Shares upon the settlement of the Award.

  7.Tax Withholding and Advice.

  7.1.In General.  Subject to Section 7.2, at the time the Grant Notice is executed, or at any time thereafter as requested by the Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the U.S. federal, state, and local taxes and (if applicable) taxes imposed by jurisdictions outside of the United States (including income tax, social insurance contributions, payment on account and any other taxes) and required by law to be withheld with respect to any taxable event arising as a result of the Participant’s participation in the Plan (referred to herein as “Tax-Related Items”).

  7.2.Withholding of Taxes.  The Company or any other Participating Company, as appropriate, shall have the authority and the right to deduct or withhold, or require the Participant to remit to the applicable Participating Company, an amount sufficient to satisfy applicable Tax-Related Items or to 

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  take such other action as may be necessary in the opinion of the applicable Participating Company to satisfy such Tax-Related Items (including hypothetical withholding tax amounts if the Participant is covered under a Company tax equalization policy).  In this regard, the Participant authorizes the applicable Participating Company or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:

  7.2.1.withholding from the Participant’s wages or other cash compensation paid to the Participant by the applicable Participating Company; or

  7.2.2.withholding from proceeds of the sale of Shares acquired upon vesting and settlement of the Units, either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization); or

  7.2.3.withholding in Shares to be issued upon vesting and settlement of the Units; or

  7.2.4.direct payment from the Participant.

  To avoid negative accounting treatment, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates.  If the Participant is covered by a Company tax equalization policy, the Participant agrees to pay to the Company any additional hypothetical tax obligation calculated and paid under the terms and conditions of such tax equalization policy.  Finally, the Participant shall pay to the applicable Participating Company any amount of Tax-Related Items that the Participating Company may be required to withhold as a result of his or her participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to issue or deliver the Shares that may be issued in connection with the settlement of the Units if the Participant fails to comply with his or her Tax-Related Items obligations.

  7.3.Tax Advice.  The Participant represents, warrants and acknowledges that the Company has made no warranties or representations to the Participant with respect to the income tax consequences of the transactions contemplated by this Agreement, and the Participant is in no manner relying on the Company or the Company’s representatives for an assessment of such tax consequences.  THE PARTICIPANT UNDERSTANDS THAT THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  THE PARTICIPANT SHOULD CONSULT HIS OR HER OWN TAX ADVISOR REGARDING THE UNITS.  NOTHING STATED HEREIN IS INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAXPAYER PENALTIES.

  8.Authorization to Release Necessary Personal Information.  

  The Participant hereby authorizes and directs the Participant’s employer to collect, use and transfer in electronic or other form, any personal information (the “Data”) regarding the Participant’s Service, the nature and amount of the Participant’s compensation and the fact and conditions of the Participant’s participation in the Plan (including, but not limited to, the Participant’s name, home address, telephone number, date of birth, social security number (or any other social or national identification number), salary, nationality, job title, number of Shares held and the details of all Units or any other entitlement to Shares awarded, cancelled, exercised, vested, unvested or outstanding) for the purpose of implementing, administering and managing the Participant’s participation in the Plan.  The Participant understands that the Data may be transferred to the Company or any other Participating Company, or to any third parties assisting in the implementation, administration and management of the Plan, including any requisite transfer to a brokerage firm or other third party assisting with administration of the Award or with whom Shares acquired upon settlement of this Award or cash from the sale of such Shares may be deposited.  

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  The Participant acknowledges that recipients of the Data may be located in different countries, and those countries may have data privacy laws and protections different from those in the country of the Participant’s residence.  Furthermore, the Participant acknowledges and understands that the transfer of the Data to the Company or any of other Participating Company, or to any third parties is necessary for Participant’s participation in the Plan.  The Participant may at any time withdraw the consents herein, by contacting the Company’s stock administration department in writing. The Participant further acknowledges that withdrawal of consent may affect the Participant’s ability to realize benefits from the Award, and the Participant’s ability to participate in the Plan.

  9.Change in Control.

  In the event of a Change in Control, this Section 9 shall determine the treatment of the Units which have not otherwise become Vested Units, except as otherwise determined in accordance with an employment agreement or other agreement between the Company and the Participant which is applicable to this Award.

  9.1.Effect of Change in Control on Award.  In the event of a Change in Control, the Performance Period shall end on the day immediately preceding the Change in Control (the “Adjusted Performance Period”).  The number of Earned Units and the vesting of those Units shall be determined for the Adjusted Performance Period in accordance with the following:

  9.1.1.Earned Units.  In the Committee’s determination of the number of Earned Units for the Adjusted Performance Period, the following modifications shall be made to the components of the Relative TSR Factor:

  9.1.1.1.The Company’s Annualized TSR Percentage shall be determined for the Adjusted Performance Period as provided by Section 2.1, except that the Ending Average Per Share Closing Price for the 20 trading days ending on the last day of the Adjusted Performance Period shall be replaced with the price per Share to be paid to the holder thereof in accordance with the definitive agreement governing the transaction constituting the Change in Control (or, in the absence of such agreement, the closing price per Share as reported on the Nasdaq Capital Market for the last trading day of the Adjusted Performance Period), increased by the aggregate of all cash dividends paid to the holder of a share of Stock during the Adjusted Performance Period.

  9.1.1.2.The Comparator Group Annualized TSR shall be determined as provided by Section 2.7, except that the Ending Average Per Share Closing Price for each Comparator Group Company shall be determined for the 20 trading days ending on the last day of the Adjusted Performance Period.

  9.1.2.Vested Units.  As of the last day of the Adjusted Performance Period and provided that the Participant’s Service has not terminated prior to such date (except as provided by Section 9.2), a portion of the Earned Units determined in accordance with Section 9.1(a) shall become Vested Units (the “Accelerated Units”), with such portion determined by multiplying the total number of Earned Units by a fraction, the numerator of which equals the number of days contained in the Adjusted Performance Period and the denominator of which equals the number of days contained in the original Performance Period determined without regard to this Section.  The Accelerated Units shall be settled in accordance Section 6 immediately prior to the consummation of the Change in Control.  Except as otherwise provided by Section 9.3, that portion of the Earned Units determined in accordance with Section 9.1(a) in excess of the number of Accelerated Units shall become Vested Units on the Vesting Date of the original Performance Period determined without regard to this Section, provided that the Participant’s Service has not terminated prior to such Vesting Date.  Such Vested Units shall be settled on 

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  the Settlement Date in accordance with Section 6, provided that payment for each Vested Unit shall be made in the amount and in the form of the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a Share on the effective date of the Change in Control was entitled (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares).

  9.2.Involuntary Termination in Anticipation of a Change in Control.  In the event that the Participant’s Service terminates due to Involuntary Termination in Anticipation of a Change in Control, the number of Earned Units shall be determined in the manner specified by Section 9.1 as of the day immediately preceding the Change in Control, with respect to an Adjusted Performance Period ending on such day.  The number of Earned Units so determined shall vest in full and become Vested Units, and such Vested Units shall be settled in accordance Section 6 immediately prior to the consummation of the Change in Control.

  9.3.Involuntary Termination Following Change in Control.  In the event that upon or within twelve (12) months following the effective date of the Change in Control, the Participant’s Service terminates due to Involuntary Termination, the vesting of the Earned Units determined in accordance with Section 9.1(a) in excess of the number of Accelerated Units shall be deemed Vested Units effective as of the date of the Participant’s Involuntary Termination and shall be settled in accordance with Section 6, treating the date of the Participant’s termination of Service as the Vesting Date, and provided that payment for each Vested Unit shall be made in the amount and in the form of the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a Share on the effective date of the Change in Control was entitled (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares).

  10.Adjustments for Changes in Capital Structure.

  The number of Units awarded pursuant to this Agreement is subject to adjustment as provided in Section 4.3 of the Plan.  Upon the occurrence of an event described in Section 4.3 of the Plan, any and all new, substituted or additional securities or other property to which a holder of a Share issuable in settlement of the Award would be entitled shall be immediately subject to the Agreement and included within the meaning of the term “Shares” for all purposes of the Award.  The Participant shall be notified of such adjustments and such adjustments shall be binding upon the Company and the Participant.

  11.No Entitlement or claims for compensation.

  11.1.The Participant’s rights, if any, in respect of or in connection with the Units are derived solely from the discretionary decision of the Company to permit the Participant to participate in the Plan and to benefit from a discretionary Award.  By accepting the Units, the Participant expressly acknowledges that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Units or other Awards to the Participant.  The Units are not intended to be compensation of a continuing or recurring nature, or part of the Participant’s normal or expected compensation, and in no way represents any portion of the  Participant’s salary, compensation, or other remuneration for purposes of pension benefits, severance, redundancy, resignation or any other purpose.

  11.2.Neither the Plan nor the Units shall be deemed to give the Participant a right to remain an Employee, Director or Consultant of the Company or any other Participating Company.  The Participating Company Group reserves the right to terminate the Service of the Participant at any time, with or without cause, and for any reason, subject to applicable laws, the Company’s Certificate of Incorporation and Bylaws and a written employment agreement (if any), and the Participant shall be deemed irrevocably to have waived any claim to damages or specific performance for breach of contract or dismissal, 

  	7

  

   

  compensation for loss of office, tort or otherwise with respect to the Plan, the Units or any other outstanding Award that is forfeited and/or is terminated by its terms or to any future Award.

  12.Rights as a Stockholder.

  The Participant shall have no rights as a stockholder with respect to any Shares that may be issued in settlement of this Award until the date of the issuance of a certificate for such Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment shall be made for dividends, dividend equivalents, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 10.

  13.Miscellaneous Provisions.

  13.1.Amendment.  The Committee may amend this Agreement at any time; provided, however, that no such amendment may adversely affect the Participant’s rights under this Agreement without the consent of the Participant, except to the extent such amendment is necessary to comply with applicable law, including, but not limited to, Code Section 409A.  No amendment or addition to this Agreement shall be effective unless in writing.

  13.2.Nontransferability of the Award.  Prior to the issuance of Shares on the applicable Settlement Date, no right or interest of the Participant in the Award nor any Shares issuable on settlement of the Award shall be in any manner pledged, encumbered, or hypothecated to or in favor of any party other than the Company or shall become subject to any lien, obligation, or liability of such Participant to any other party other than the Company.  Except as otherwise provided by the Committee, no Award shall be assigned, transferred or otherwise disposed of other than by will or the laws of descent and distribution.  All rights with respect to the Award shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s guardian or legal representative.

  13.3.Further Instruments.  The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

  13.4.Binding Effect.  This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns.

  13.5.Notices.  Any notice required to be given or delivered to the Company under the terms of this Agreement shall be in writing and addressed to the Company at its principal corporate offices.  Any notice required to be given or delivered to the Participant shall be in writing and addressed to the Participant at the address maintained for the Participant in the Company’s records or at the address of the local office of the Company or of any other Participating Company at which the Participant works.

  13.6.Construction of Agreement.  The Grant Notice, this Agreement, and the Units evidenced hereby (i) are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan, and (ii) constitute the entire agreement between the Participant and the Company on the subject matter hereof and supersede all proposals, written or oral, and all other communications between the parties related to the subject matter.  All decisions of the Committee with respect to any question or issue arising under the Grant Notice, this Agreement or the Plan shall be conclusive and binding on all persons having an interest in the Units.

  	8

  

   

  13.7.Governing Law.  The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without regard to the conflict-of-laws rules thereof or of any other jurisdiction.

  13.8.Section 409A.

  13.8.1.Compliance with Section 409A.  Notwithstanding any other provision of the Plan, this Agreement or the Grant Notice, the Plan, this Agreement and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the Code (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof).  The vesting and settlement of Units awarded pursuant to this Agreement are intended to qualify for the “short-term deferral” exemption from Code Section 409A.  The Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify the Plan and/or this Agreement to ensure that the Units qualify for exemption from or comply with Section 409A of the Code; provided, however, that the Company makes no representations that the Units will be exempt from Section 409A and makes no undertaking to preclude Section 409A from applying to the Units.

  13.8.2.Separation from Service; Required Delay in Payment to Specified Employee.  Notwithstanding anything set forth herein to the contrary, no amount payable pursuant to this Agreement on account of the Participant’s termination of Service which constitutes a “deferral of compensation” within the meaning of Section 409A of the Code shall be paid unless and until the Participant has incurred a “separation from service” within the meaning of Section 409A.  Furthermore, to the extent that the Participant is a “specified employee” within the meaning of Section 409A as of the date of the Participant’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of the Participant’s separation from service shall paid to the Participant before the date (the “Delayed Payment Date”) which is the first day of the seventh month after the date of the Participant’s separation from service or, if earlier, the date of the Participant’s death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.

  13.9.Administration.  The Committee shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules.  All actions taken and all interpretations and determinations made by the Committee in good faith shall be final and binding upon the Participant, the Company and all other interested persons.  No member of the Committee or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the Units.

  13.10.Counterparts.  The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

  13.11.Severability.  If any provision of this Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the parties to the extent possible.  In any event, all other provisions of this Agreement shall be deemed valid and enforceable to the full extent possible.

  13.12.Relocation Outside the United States.  If the Participant relocates to a country outside the United States, the Company reserves the right to impose other requirements on the Participant’s participation in the Plan, on the Units and on any Shares acquired under the Plan, to the extent the Company 

  	9

  

   

  determines necessary or advisable in order to comply with local law or facilitate the administration of the Plan, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

   

   

  	10EX-4.1

 Exhibit 4.1 

 
  

SERVICE AGREEMENT 
  

 
  dated 09 May
2022 
  by 

GLAXOSMITHKLINE CONSUMER HEALTHCARE OVERSEAS LIMITED 

and 
 BRIAN MCNAMARA 

 
 

 
 Baker & McKenzie LLP 

100 New Bridge Street 

London EC4V 6JA 
 United
Kingdom 
 www.bakermckenzie.com 

 Table of contents 
  

							
	1.	  	Appointment and term	  	 	1	 
			
	2.	  	Duties	  	 	1	 
			
	3.	  	Exclusive service and conflicts of interest	  	 	2	 
			
	4.	  	Remuneration	  	 	2	 
			
	5.	  	Expenses	  	 	3	 
			
	6.	  	Deductions	  	 	3	 
			
	7.	  	Sickness absence	  	 	3	 
			
	8.	  	Holidays and other paid leave	  	 	4	 
			
	9.	  	Other benefits	  	 	5	 
			
	10.	  	Training	  	 	6	 
			
	11.	  	Confidentiality	  	 	6	 
			
	12.	  	Intellectual property, inventions and patents	  	 	7	 
			
	13.	  	Post-termination obligations	  	 	9	 
			
	14.	  	Termination	  	 	9	 
			
	15.	  	Payment in lieu of notice	  	 	10	 
			
	16.	  	Garden leave	  	 	11	 
			
	17.	  	Return of property	  	 	11	 
			
	18.	  	Directorships	  	 	12	 
			
	19.	  	Liquidation for reconstruction or amalgamation	  	 	12	 
			
	20.	  	Disciplinary and grievance procedures	  	 	12	 
			
	21.	  	Warranty	  	 	12	 
			
	22.	  	Notices	  	 	13	 
			
	23.	  	Definitions	  	 	13	 
			
	24.	  	Construction	  	 	14	 
			
	25.	  	Prior agreements	  	 	14	 
			
	26.	  	Governing law	  	 	14	 

 Schedule 1 
 Post
Termination Obligations 

  
 i 

 Service Agreement 

This Agreement is dated 09 May 2022 
  Between

 GLAXOSMITHKLINE CONSUMER HEALTHCARE OVERSEAS LIMITED, a company registered in England and Wales (the “Company”), whose
registered office is at 980 Great West Road, Brentford, Middlesex, TW8 9GS; and 
 Brian McNamara (The “Executive”). 

It is agreed as follows:- 
  

	1.	 Appointment and term 

 

	1.1	 The Executive will be employed by the Company as Chief Executive Officer or in such other capacity as
the Company may reasonably determine from time to time, subject to the terms and conditions of this Agreement (the “Employment”). 

  

	1.2	 The Employment will commence on the Commencement Date and will continue until terminated by either party giving
to the other not less than 12 months’ written notice unless terminated earlier in accordance with this Agreement. The Employment will not be subject to a probationary period. 

 

	1.3	 The Executive’s period of continuous employment began on 1 September 2004. 

 

	2.	 Duties 

  

	2.1	 The Executive will perform such duties and exercise such powers in relation to Haleon, the Company and any
other Associated Company as may reasonably be assigned to him from time to time but the Executive will not be required to perform duties which are not reasonably within his capabilities. 

 

	2.2	 The Company may require the Executive to accept any office or position in the Company or any Associated Company
without additional remuneration as may be reasonably required by the Company. 

  

	2.3	 The Executive will report to the Haleon Chair or such other person nominated by the Company from time to
time. 

  

	2.4	 The Executive’s normal place of work will be The Heights Business Park, Weybridge or such other place
within or outside of the United Kingdom as the Company may require from time to time. The Executive may be required to travel anywhere within or outside the United Kingdom in the performance of his duties. 

 

	2.5	 The Executive will work such hours as are necessary for the proper performance of his duties. The parties each
agree that the nature of the Executive’s position is such that his working time cannot be measured and, accordingly, that the Employment falls within the scope of regulation 20 of the Working Time Regulations 1998. 

 

	2.6	 The Executive acknowledges that he is a fiduciary of the Company or its Associated Companies and agrees that he
will act at all times in good faith and comply with the lawful instructions, regulations and policies of the Company and use his best endeavours to promote the interests of the Company and Associated Companies. During his working hours the Executive
will devote the whole of his time, attention, skill and knowledge to his duties. 

  
 1 

	2.7	 The Executive will inform the Company immediately of any act or omission of his which constitutes a breach of
this Agreement, and any act or omission of any other employee or member of staff of which he becomes aware and which constitutes, or might reasonably constitute, a material breach of the duties owed by that member of staff. 

 

	2.8	 The Executive will ensure that he is at all times familiar with and that he
complies with his legal duties as a director of the Company and any Associated Company including, but not limited to, his duties under the Companies Act 2006. 

 

	2.9	 The Executive will comply with the Market Abuse Regulation (596/2014/EU) as implemented in the UK pursuant to
the European Union (Withdrawal) Act 2018, as well as all applicable rules of the London Stock Exchange Plc and the UK Financial Conduct Authority (the “FCA”) , including, but not limited to, the FCA’s Listing Rules and
Disclosure Guidance and Transparency Rules, and any Company policy (or policies) relating to, among others: (i) dealings in shares, debentures or other securities of the Company and any Associated Companies; and/or (ii) unpublished price
sensitive information affecting the securities of any other company. This duty will continue during and after the Employment until such time as any price sensitive information the Executive has obtained during his employment or any office holding
ceases to be price sensitive information, either through publication by the Company or otherwise. 

  

	2.10	 The Executive will comply with any applicable Share Ownership Requirements in place from time to time and any
other requirement imposed by the Company in its absolute discretion from time to time, requiring the Executive to own shares in the Company either during the Employment or after it ends. 

 

	2.11	 The Executive hereby authorises the Company, and any agent instructed by the Company, to access any program or
data held on any computer used by the Executive in the course of performing his duties of employment (and regardless of whether the program or data is related to the Executive’s duties of employment). 

 

	3.	 Exclusive service and conflicts of interest 

 

	3.1	 During the Employment the Executive will not without the prior written consent of the Board directly or
indirectly on his own account or on behalf of any third party and in any capacity be engaged, concerned or interested in or provide services to any other business or enterprise or accept any other engagement or public office PROVIDED THAT the
Executive may hold up to 3% of the securities in a company which is quoted on any recognised Stock Exchange provided this does not give rise to any conflict of interest with the Company, or any Associated Company. 

 

	3.2	 The Executive confirms that he has disclosed to the Company full details of all existing and potential
conflicts of interest between either the Executive, or to the extent that he is aware of them or ought reasonably to be aware of them, between his Immediate Relatives, and the Company or any Associated Company. The Executive will promptly disclose
to the Company full details of any such conflicts or potential conflicts which arise during the Employment. 

  

	4.	 Remuneration 

  

	4.1	 The Executive’s basic salary will be £1,250,000 per annum (“Basic Salary”), which
will be paid in equal monthly instalments in arrears and subject to applicable withholdings. The Basic Salary will be reviewed annually by the Remuneration Committee without any obligation to increase it. The Basic Salary will not be increased after
notice of termination has been given by either party. 

  
 2 

	4.2	 The Basic Salary is inclusive of any fees to which the Executive may be entitled as a director of the Company
or of any Associated Company. 

  

	4.3	 The Executive will be eligible to participate in a discretionary annual bonus scheme and long-term incentive
scheme(s), subject to the rules of the schemes in place from time to time. The terms of the schemes will be determined by the Remuneration Committee in its absolute discretion. The Executive has no right to receive a bonus or long term incentive
award and will not acquire such a right by virtue of the Executive having received earlier bonus payments or long term incentive awards.  

  

	4.4	 The Executive will not be eligible to receive any bonus or long term incentive award referred to in clause 4.3
or under any other bonus scheme or incentive scheme in which the Executive is eligible to participate from time to time if he is not employed by the Company or an Associated Company on the date on which the bonus would otherwise have been paid or
the award granted, unless otherwise provided in the rules of the applicable plan. 

  

	4.5	 The Executive may not be eligible to receive any bonus or long term incentive award referred to in clause 4.3
or under any other bonus scheme or incentive scheme in which the Executive is eligible to participate from time to time if he has given or received notice of termination (for any reason and howsoever caused) on or before the date on which the bonus
would otherwise have been paid or the award granted, and such eligibility shall be determined by the Remuneration Committee in its absolute discretion. 

  

	4.6	 The Executive agrees that he may be required to repay the value of awards which have been made to him
under any bonus or incentive scheme and which have vested, and that unvested awards may be reduced, suspended or cancelled in accordance with the provisions of applicable scheme rules and/or the Malus and Clawback policy and/or remuneration policy
in place from time to time. 

  

	4.7	 The Company may at any time in its absolute discretion amend, replace or terminate without compensation the
bonus scheme and long-term incentive scheme(s) referred to in clause 4.3 and any other bonus scheme or incentive scheme in which the Executive is eligible to participate from time to time either in respect of the scheme generally or in its
application to the Executive. 

  

	5.	 Expenses 

The Company will reimburse the Executive for all reasonable business expenses properly incurred and paid by in the course of the Employment
subject to presentation of valid receipts or other satisfactory evidence of the expenses and subject to the Company’s rules and policies relating to expenses in place from time to time. 

 

	6.	 Deductions 

The Executive authorises the Company to deduct from any payments which are due to him from the Company or any Associated Company during or
after the Employment any amounts which the Executive owes to the Company or any Associated Company. 
  

	7.	 Sickness absence 

 

	7.1	 If the Executive is unable to attend work as a result of sickness or injury he must comply with any Company
policy and rules relating to sickness absence in place from time to time. In any event, he will notify the Company as early as reasonably practicable and no later than the time the Executive was due at work. The Executive must complete a
self-certificate in respect of any absence of seven (7) calendar days or less. For any longer periods a Doctor’s certificate(s) must be provided in advance of the absence to which it relates and must cover the entire period of absence.

  
 3 

	7.2	 If reasonably requested the Executive will attend a medical examination with a medical practitioner nominated
by the Company and at the Company’s expense. The Executive agrees that an examination report may be provided to the Company. 

  

	7.3	 Subject to compliance with clauses 7.1 and 7.2 the Executive will receive sick pay (“Company Sick
Pay”) in accordance with the Company Sick Pay Policy in force from time to time and always subject to the requirements of the Company Sick Pay Policy. The Company Sick Pay Policy may be amended, terminated or replaced at the discretion of the
Company, currently it provides for: 

  

	 	(a)	 up to four weeks’ full basic pay for sickness absence in the first year of service; and

  

	 	(b)	 up to 30 weeks’ full basic pay for sickness absence in any 12 month rolling period for employees who have
completed one year’s service or more. 

 (the “Company Sick Pay Entitlement”). The Company Sick Pay
Entitlement is the maximum amount of Company Sick Pay which will be paid in aggregate in any rolling 12 month period. 
  

	7.4	 Once exhausted no Company Sick Pay will be payable in respect of any subsequent 12 month period until the
Executive has returned to work on his normal working hours for at least eight full consecutive weeks (disregarding for these purposes any period of authorised absence not related to sickness or incapacity) (the “Minimum Return
Period”). 

  

	7.5	 Company Sick Pay is inclusive of any entitlement to statutory sick pay. Company Sick Pay will be paid subject
to such deductions required by law and subject to deductions to reflect any other sickness benefits received by the Executive for the period of Company Sick Pay. 

 

	7.6	 During sickness absence, if the Executive remains eligible for Company Sick Pay on the date of any
discretionary annual bonus or long term incentive scheme(s) award, then the Executive will remain eligible to participate in such awards as set out in clause 4 of this Agreement, subject to the rules of the schemes in place from time to time and in
accordance with the discretion of the Remuneration Committee as applicable including any decision to pro-rate such awards to reflect the sickness absence. If eligibility for Company Sick Pay expires, the
Executive will not be eligible for any further discretionary annual bonus or long term incentive scheme(s) award until the Executive returns to work in accordance with clause 7.4. 

 

	7.7	 During any period of absence caused by sickness or injury the Executive’s entitlement to chauffeur, the
payment of Company pension contributions or pension allowance, participation in any incentive or bonus scheme, accrual of holiday entitlement above the statutory minimum and any other benefits (save for the life assurance scheme, private medical
insurance scheme and Group Income Protection plan) will cease when his entitlement to Company Sick Pay ceases. 

  

	8.	 Holidays and other paid leave 

 

	8.1	 The Executive is entitled to 28 days’ paid holiday each year and paid time off for the eight public
holidays normally observed in England. The Company’s holiday year is from 1 January to 31 December each year. In respect of any part year worked, holiday entitlement will accrue in accordance with the UK Holiday Policy as amended from
time to time. 

  

	8.2	 The Executive may carry forward accrued holiday in accordance with the Company rules on banking of holidays
outlined in its UK Holiday Policy, as amended from time to time. Any holiday which is not banked in accordance with these rules will be lost. 

  
 4 

	8.3	 The Executive will take his holiday at such times as are agreed with, or required by the Company. If requested
the Executive will take all or part of any accrued untaken holiday during his notice period. 

  

	8.4	 On termination of Employment the Executive will as appropriate be paid in lieu of any accrued but untaken
holiday or will repay to the Company any sums paid for any holiday taken in excess of his accrued entitlement. The Company may withhold any such sums from any payments due to the Executive from the Company or any Associated Company. The calculation
for the payment or repayment (as appropriate) shall be made by reference to 1/260 of the Executive’s annual Basic Salary for each day’s holiday. 

  

	9.	 Other benefits 

Pensions 
  

	9.1	 Subject to its rules from time to time in force, the Executive will be contractually enrolled into the
Company’s UK pension plan (the “Pension Scheme”) from the date on which he commences employment or such later date notified to him. The Executive agrees that the Company will act on his behalf in taking the steps necessary to
enrol the Executive in the Pension Scheme. The Executive is entitled to opt out of the Pension Scheme by giving notice. 

  

	9.2	 Both the Executive and the Company will make such contributions into the Pension Scheme as are provided for
under the rules of the Pension Scheme from time to time in force, or as otherwise notified to the Executive. The Executive agrees that the Company may amend the level of contributions required by the Executive or the Company including increasing the
Executive’s contributions and/or decreasing the Company’s contribution levels. 

  

	9.3	 Alternatively, the Executive may elect to receive a Pensions Allowance, in which case, the Company shall pay
the Executive an annual Pensions Allowance of 7% of Basic Salary, less the amount of salary (if any) in respect of which pension contributions are made into the Pension Scheme. The allowance will be subject to deductions for tax and national
insurance contributions as required by law, and be payable monthly in arrears by equal instalments together with the Executive’s salary. The Pensions Allowance will not be taken into account by the Company for the purpose of any bonus payment
and/or other benefit scheme. The Executive agrees that the Company may cease to provide the Executive with or vary the amount of any Pensions Allowance at any time in line with variations made to pension contributions for the wider workforce of the
Company. 

 Insurance Schemes 
  

	9.4	 The Executive will be eligible to participate in the following : 

 

	 	(a)	 private medical insurance scheme 

 

	 	(b)	 life assurance scheme; and 

 

	 	(c)	 Group Income Protection plan. 

All benefits are subject to the rules of the relevant scheme and any associated policy of insurance in force from time to time. Details of the
schemes and copies of applicable terms and conditions can be obtained from the HR Department. 
 Other 

 

	9.5	 The Executive may also be eligible to receive the non-contractual
benefits set out in the Offer Letter, subject to the terms and conditions governing such benefits that are in place from time to time. These benefits do not form part of the Executive’s contract. Further details regarding the benefits set out
in the Offer Letter can be found on the Company’s intranet. 

  
 5 

 General 
  

	9.6	 The Company may from time to time and without compensation amend, replace or withdraw any benefit or benefit
scheme, or the Executive’s right to receive any benefit or participate in any benefit scheme, in which the Executive participates including the Pension Scheme and notwithstanding any adverse impact that such amendment, replacement or withdrawal
may have on any current or prospective benefits being claimed or received by the Executive under such scheme(s). 

  

	9.7	 If any third party benefit provider refuses for any reason to provide benefits to or in respect of the
Executive under any benefit scheme the Company will not be liable to provide such benefits or compensate the Executive for the loss of such benefits. The Company may at its discretion challenge any such refusal by a scheme provider provided that the
Executive indemnifies the Company against any costs incurred by the Company incurred by it in connection with challenging the scheme provider’s decision. 

 

	9.8	 The Company may terminate the Executive’s employment in accordance with this Agreement (including on the
grounds of incapability) notwithstanding that such termination may, at the Company’s discretion, deprive the Executive of Company Sick Pay and/or any current, future or prospective benefits under any benefit scheme including, but not limited
to, any applicable private medical insurance cover or long-term disability scheme. The Company will not be liable for any such losses arising from such termination and is under no obligation to compensate the Executive for such losses.

  

	10.	 Training 

  

	10.1	 Unless otherwise notified to the Executive he will not be required to complete any training and any
training which is required will be paid for by the Company. 

  

	10.2	 The Executive may also be entitled to take part in various training courses which the Company may provide from
time to time in-house. Specific details of what courses might be available can be obtained from the HR Department. 

  

	11.	 Confidentiality 

 

	11.1	 The Executive will not during or after the Employment and except in the proper performance of his duties of
employment directly or indirectly use for his own purposes or those of a third party or disclose to any third party any trade secrets or confidential information relating or belonging to the Company or any Associated Company including but not
limited to: 

  

	 	(a)	 clients, customer lists and contact details; 

 

	 	(b)	 terms of business with clients/customers; 

 

	 	(c)	 lists of potential clients/customers and any proposed terms of business with potential clients/customers;

  

	 	(d)	 price lists or pricing structures including terms of credit, discounts and preferential terms;

  

	 	(e)	 sales figures; 

  

	 	(f)	 sales and marketing strategies; 

 

	 	(g)	 business plans; 

  

	 	(h)	 lists of suppliers and terms of business with suppliers; 

  
 6 

	 	(i)	 lists of employees, officers or contractors and details of remuneration packages and terms of
employment/engagement of employees, officers and contractors; 

  

	 	(j)	 object or source codes and computer software; 

 

	 	(k)	 financial information and plans; 

 

	 	(l)	 any proposals relating to the acquisition or disposal of a company or business or any part thereof;

  

	 	(m)	 designs, formulae, prototypes, product lines, research activities; 

 

	 	(n)	 any document marked as confidential and any information or document which the Executive has been told is
confidential or should reasonably expect to be regarded as confidential; and 

  

	 	(o)	 any information which has been given to the Company or Associated Company in confidence by customers, suppliers
or other third parties, 

 (the “Confidential Information”). 

 

	11.2	 The Executive will use his best endeavours to prevent any unauthorised use or disclosure of Confidential
Information. 

  

	11.3	 The Executive will not during or after the Employment make any copies, notes or records of any matter relating
to the business of the Company or any Associated Company other than for the benefit of the Company or any Associated Company. 

  

	11.4	 The obligations contained in clause 11.1 shall not prevent the Executive from (i) making a protected
disclosure under the Public Interest Disclosure Act 1998; (ii) reporting in good faith an offence to a law enforcement agency; or (iii) co-operating in good faith with a criminal investigation or
prosecution. These obligations shall cease to apply to any information or knowledge which may subsequently come into the public domain after the termination of the Executive’s employment other than by way of unauthorised disclosure.

  

	11.5	 The Executive will not except in the proper performance of his duties of Employment make or cause
to be made (directly or indirectly) any comment or statement to any representative of the press, television, radio, or other media or publish any material on any matter connected with the Company, any Associated Company or their respective
businesses without the prior written approval of the Board. 

  

	12.	 Intellectual property, inventions and patents 

 

	12.1	 The Executive acknowledges and agrees that by virtue of the nature of his duties and the responsibilities
arising from his employment he has, and shall have at all times during the Employment, a special obligation to further the interests of the Company. 

  

	12.2	 The Executive shall provide the Company with full written details of all: 

 

	 	(a)	 inventions, ideas and improvements, whether or not patentable, and whether or not recorded in any medium
(“Inventions”); and 

  

	 	(b)	 patents, rights to Inventions, copyright and related rights, trade marks, trade names and domain names, rights
in get-up, rights in goodwill or to sue for passing off, rights in designs, rights in computer software, database rights, rights in confidential information (including know how and trade secrets) and any other
intellectual property rights, in each case where registered or unregistered and including all applications (or rights to apply) for, and renewals or extension of rights and all similar or equivalent rights or forms of protection which may now or in
the future subsist anywhere in the world (“Intellectual Property Rights”), 

  
 7 

 created or acquired by the Executive, wholly or partially, in the course of their Employment
(whether or not during working hours or using Company premises or resources and whether or not recorded in any medium) (“Employment IPRs”), promptly upon creation. 

 

	12.3	 To the fullest extent permitted by law: 

 

	 	(a)	 all Employment IPRs shall automatically belong to the Company; and 

 

	 	(b)	 to the extent that the Employment IPRs do not vest in the Company automatically, the Executive shall assign
such Employment IPRs on request of the Company; and 

  

	 	(c)	 to the extent that the Employment IPRs do not vest in the Company automatically and/or pending any assignment
of such Employment IPRs under clause 12.3(b) above, the Executive shall hold them on trust for the Company, 

 and the
Executive agrees to execute promptly all documents and do all acts, in the opinion of the Company, that may be necessary to give effect to this clause 12.3. 
  

	12.4	 The Executive hereby irrevocably and unconditionally waives all rights that arise under Chapter IV of Part I of
the Copyright, Designs and Patents Act 1988 (whether before, on or after the date hereof) in connection with his authorship of any works mentioned in clause 12.2, and to any similar rights wherever in the world enforceable, including without
limitation the right to be identified as the author of any such works and the right not to have any such works subjected to derogatory treatment. 

  

	12.5	 The Executive and the Company acknowledge the provisions of Sections 39 to 43 of the Patents Act 1977
(“the Act”) relating to the ownership of employees’ inventions and the compensation of employees for certain inventions respectively. 

  

	12.6	 At the request and cost of the Company (whether during the Employment or after its termination) the Executive
will sign and execute all such documents and do all such acts as the Company may reasonably require: 

  

	 	(a)	 to absolutely vest the full right, title and interest in any Employment IPRs to be assigned under clause
12.3(b) or in Intellectual Property Rights that both the Company and the Executive have agreed from time to time to assign to the Company (“Assigned IPRs”); 

 

	 	(b)	 to apply for and obtain in the sole name of the Company alone (unless the Company otherwise directs) patent,
registered design, or other protection of any nature whatsoever in respect of such Employment IPRs or Assigned IPRs in any country throughout the world and, when so obtained or vested, to renew and maintain the same; 

 

	 	(c)	 to resist any objection or opposition to obtaining, and any petitions or applications for revocation of any of
the Employment IPRs or Assigned IPRs; 

  

	 	(d)	 to enforce the Employment IPRs or Assigned IPRs and/or bring any proceedings for infringement of any of the
Employment IPRs or Assigned IPRs; and 

  

	 	(e)	 otherwise to give effect to the assignment and waivers and licences contemplated under this clause 12.

  

	12.7	 Without prejudice to the Executives’ rights under the Patents Act 1977 and except as provided by law, no
further remuneration or compensation other than that provided for in this Agreement is or may become due to the Executive in respect of his compliance with this clause 12. 

  
 8 

	12.8	 The Company will decide, in its sole discretion, when and whether to apply for patent, registered design or
other protection in respect of an Employment IPR or Assigned IPR and reserves the right to work any of the Employment IPRs or Assigned IPRs as a secret process in which event the Executive will observe the obligations relating to confidential
information which are contained in clause 11 of this Agreement. 

  

	12.9	 The Executive hereby irrevocably appoints the Company to be his attorney to execute and do any such instrument
or thing and generally to use his name for the purpose of giving the Company or its nominee the benefit of this clause 12. The Executive acknowledges in favour of a third party that a certificate in writing signed by any Director that any
instrument or act falls within the authority conferred by this clause 12 shall be conclusive evidence that such is the case. 

  

	13.	 Post-termination obligations 

 

	13.1	 The Executive will comply with the post-termination obligations set out in Schedule 1. 

 

	13.2	 If the Executive receives an offer of employment from, or offer to provide services to, any person, firm,
company or other entity (an “Offeror”) (whether it is accepted or not) either during the Employment or during the period of any of the restrictions set out in Schedule 1 he will immediately provide to the Offeror details of the
substance of the restrictions contained in Schedule 1 and notify the Company of the offer and the identity of the Offeror, and will provide such other details as the Company may reasonably request. The obligations in this clause are without
prejudice to the Executive’s obligations of confidentiality and general obligation to immediately disclose any conflict of interest to the Company. 

  

	14.	 Termination 

  

	14.1	 The Company may terminate the Employment without notice or pay in lieu of notice if at any time the Executive:

  

	 	(a)	 is guilty of dishonesty, gross misconduct, gross incompetence, wilful neglect of duty, or has committed any
other serious or persistent breach of this Agreement; or 

  

	 	(b)	 acts in any manner (whether or not in the performance of his duties) which brings or is likely to bring the
Executive, the Company or any Associated Company into disrepute or which prejudices or is likely to prejudice the interests of the Company or any Associated Company; or 

 

	 	(c)	 is or becomes bankrupt, applies for or has made against him a receiving order under Section 286 Insolvency
Act 1986, or has any order made against him to reach a voluntary arrangement as defined by Section 253 of that Act; or 

  

	 	(d)	 resigns as a director of the Company or any Associated Company without the Board’s written consent; or

  

	 	(e)	 is convicted of any offence other than an offence under road traffic legislation for which a non-custodial penalty is imposed; or 

  

	 	(f)	 is or becomes prohibited from being a director of the Company or any Associated Company; or

  

	 	(g)	 directly or indirectly advises or participates or acts in concert within the meaning of the City Code on
Take-Overs and Mergers with any person who makes or is considering making any offer for the issued share capital of the Company. 

  
 9 

 Any delay by the Company in exercising its right to terminate the Employment will not
constitute a waiver of such right. 
  

	14.2	 The Company may terminate the Employment by giving the Executive one week more than the minimum notice period
to which he would be entitled under section 86 of the Employment Rights Act 1996 if the Executive at any time: 

  

	 	(a)	 is incapable of performing his duties hereunder by reason of ill health or other incapacity (whether accidental
or otherwise) for an aggregate period of 120 calendar days or more in any period of 12 consecutive months; or 

  

	 	(b)	 in the reasonable opinion of the Board is guilty of continuing and material poor performance of his
duties. 

 Any delay by the Company in exercising its right to terminate the Employment will not constitute a waiver of
such right. 
  

	14.3	 The termination of the Employment will be without prejudice to the Company’s rights in respect of any
breach of contract committed by the Executive prior to such termination. 

  

	14.4	 The terms of the Haleon Redundancy Policy as in force from time to time, shall not apply to the Executive who
shall only be entitled to statutory redundancy pay in addition to any other entitlement under this Agreement if the Employment is terminated by reason of redundancy. 

 

	14.5	 The Executive will on request forthwith provide the Company with full details of any role or services he
proposes to undertake following the Employment including the identity of the third party for whom the Executive proposes to provide services. 

  

	14.6	 After the Employment the Executive will not: 

 

	 	(a)	 represent himself as having any on-going relationship with the
Company or any Associated Company; or 

  

	 	(b)	 make or cause to be made (whether directly or indirectly) any derogatory comments or statements about the
Company or any Associated Company or its or their respective officers or employees. 

  

	15.	 Payment in lieu of notice 

 

	15.1	 The Company may terminate the Employment at any time by notifying the Executive that it will make a payment of
Basic Salary only (at the rate in force at the Termination Date) in lieu of all or the remaining part of his notice period. The Employment will terminate on the date that such notice is given or such later date as the Company may state in that
notice. Subject to Clause 15.2, the payment in lieu will be made within one month of the Termination Date subject to such deductions as are required by law. 

  

	15.2	 The Company may pay the payment in lieu in equal monthly instalments in which case the first instalment will be
paid within one month of the Termination Date. In such case: 

  

	 	(a)	 the Executive will: 

  

	 	(i)	 take all reasonable steps to find alternative employment or other paid work during the Payment Period;

  

	 	(ii)	 provide the Company immediately on request with full details of any offers of employment or paid work received
and of any and all amounts earned during or in respect of the Payment Period; 

  
 10 

	 	(iii)	 provide the Company on request with full details of all steps taken to secure alternative employment or paid
work during the Payment Period; and 

  

	 	(iv)	 provide the Company with such evidence as the Company may reasonably request to prove the Executive’s
compliance with this clause 15.2(a); and 

  

	 	(b)	 the Company may reduce the amount of or cease the payment of instalments: 

 

	 	(i)	 to reflect the Executive’s actual earnings during or in respect of the Payment Period; and/or

  

	 	(ii)	 to reflect the amount which, in the reasonable opinion of the Company, he could have earned during the Payment
Period had he complied with clause 15.2(a)(i). 

  

	 	(c)	 The Executive will forfeit his right to the instalments if and for so long as the Executive fails to comply
with clause 15.2(a)(iii) or (iv). 

  

	 	(d)	 If the Executive fails to comply with clause 15.2(a)(ii) he will repay, on demand, any amounts which the
Company has paid to him which it would have been entitled not to pay in accordance with clause 15.2(b). This sum will be recoverable as a debt, together with all costs, including, but not limited to legal costs, incurred by the Company in recovering
the sum. 

  

	16.	 Garden leave 

  

	16.1	 During all or any part of any period of notice given or which ought to have been given under this Agreement (by
the Executive or the Company), the Company may, at its absolute discretion: 

  

	 	(a)	 require the Executive not to attend at his place(s) of work or any specific premises of the Company or its
Associated Companies; 

  

	 	(b)	 require the Executive not to undertake any or any part of his duties and/or to carry out different duties of
which he is reasonably capable in place of his normal duties provided that such duties are reasonable for an individual with his level of seniority; 

  

	 	(c)	 appoint any other person or persons to undertake all or any part of the Executive’s normal duties;

  

	 	(d)	 require the Executive not to communicate with any customers, suppliers, employees or officers of the Company or
its Associated Companies (other than in a solely social capacity); and/or 

  

	 	(e)	 terminate the Executive’s access to any of the Company’s IT systems. 

 

	16.2	 During any Garden Leave Period the Company will continue to pay the Executive’s salary and contractual
benefits (in accordance with and subject to the terms of this Agreement) excluding any bonus entitlement. All other terms of the Executive’s employment will continue including, without limitation, the Executive’s obligations of good faith,
fidelity, confidentiality, his fiduciary duties and all of his express and implied obligations. Any holiday entitlement which has accrued to the Executive at the start of a Garden Leave Period and any holiday entitlement which accrues during that
period will be deemed to be taken by the Executive during that period. 

  

	17.	 Return of property 

 

	17.1	 On termination of the Employment or at any time on request the Executive will: 

  
 11 

	 	(a)	 immediately return to the Company in accordance with its instructions any or all property belonging to the
Company or any Associated Company which is in the Executive’s possession or control including but not limited to documents or other records containing Confidential Information; 

 

	 	(b)	 permanently destroy or otherwise remove all Confidential Information which is recorded in documents or other
records (whether electronic or manual) in his possession or control which do not belong to the Company or any Associated Company; 

  

	 	(c)	 if requested confirm his compliance with this clause 17.1; and 

 

	 	(d)	 if requested disclose to the Company all passwords created or controlled by him in respect of documents or
records belonging to the Company or any Associated Company. 

  

	18.	 Directorships 

 

	18.1	 The Executive will on termination of the Employment or if requested at any time during the Employment
immediately resign in writing from all directorships, trusteeships and other offices which the Executive holds with the Company or any Associated Company without compensation for loss of office. 

 

	18.2	 The Executive confirms irrevocably and unconditionally that if he fails to comply with the obligations under
clause 2.2 or clause 18.1, the Company is authorised as the Executive’s attorney to sign or execute any documents and/or do all things necessary to give effect to such resignations in the name of and behalf of the Executive.

  

	19.	 Liquidation for reconstruction or amalgamation 

The Executive will have no claim against the Company if the Employment is terminated by reason of the liquidation of the Company for the
purposes of amalgamation or reconstruction provided that the Executive is offered employment with the amalgamated or reconstructed entity on terms and conditions which in aggregate are not substantially less favourable than the terms of this
Agreement. 
  

	20.	 Disciplinary and grievance procedures 

 

	20.1	 If the Executive has a grievance relating to the Employment, he should raise it with Chairman of Haleon. If the
matter is not resolved it should be escalated to the Board of Haleon which may delegate consideration of the matter to one or more of its members or another person. 

 

	20.2	 The Company’s disciplinary procedure which applies to the Executive can be obtained from the HR
department. The policy is for guidance only and is not contractual. 

  

	20.3	 The Company may suspend the Executive on full pay during any disciplinary proceedings being taken against the
Executive and/or during any investigation into circumstances which might lead to disciplinary action against the Executive. 

  

	21.	 Warranty 

The Executive represents and warrants as a strict condition of this agreement that he is not restricted or prohibited in any way from fully
performing any of the duties of the Employment and will notify the Company immediately if this warranty ceases to be accurate. 

  
 12 

	22.	 Notices 

  

	22.1	 Notices to the Company under this Agreement will be delivered by
pre-paid first class UK post or other next working day delivery service addressed to the Company’s then current Registered Office. 

 

	22.2	 Notices to the Executive under this Agreement may be delivered to the Executive by hand, by pre-paid first class UK post or other next working day delivery service to his last known address, or by e-mail to the Executive’s last-known e-mail address. 

  

	22.3	 Notices served by pre-paid first class UK post or other next working
day delivery service will be deemed served at 9.00am on the second business day after posting (excluding for the avoidance of doubt weekends and public holidays) or at the time recorded by the delivery service. 

 

	22.4	 Notices delivered to the Executive by hand will be deemed served at the time the notice is left at the
Executive’s last known address or given to the Executive. Notices delivered by email will be deemed served at the time of transmission. 

  

	22.5	 A notice shall have effect from the earlier of its actual or deemed receipt by the addressee.

  

	23.	 Definitions 

In this Agreement the following words and related expressions will have the meanings set out below:- 

“Associated Company” means any entity or organisation: 

 

	 	(a)	 which is directly or indirectly controlled by the Company; or 

 

	 	(b)	 which directly or indirectly controls the Company (including, without limitation, Haleon); or

  

	 	(c)	 which is directly or indirectly controlled by a third party which also directly or indirectly controls the
Company; or 

  

	 	(d)	 of which the Company or any other Associated Company owns or has a beneficial interest in 20% or more of the
issued share capital or 20% or more of its capital assets; or 

  

	 	(e)	 which is the successor in title or assign of the firms, companies, corporations or other organisations referred
to above, 

 and “control” and its derivatives has the meaning set out in Sections 450 - 451 of the
Corporation Tax Act 2010. 
 “Basic Salary” has the meaning given in clause 4.1. 

“Board” means the Board of Directors of the Company from time to time or any duly appointed committee of that board. 

“Commencement Date” means the date of demerger of the Consumer Healthcare company. 

“Employment” means the employment of the Executive under this Agreement and includes any Garden Leave Period. 

“Garden Leave Period” means any period during which the Executive is subject to a requirement imposed under clause 16.1. 

  
 13 

 “Haleon” means Haleon plc 

“Haleon Board” means the Board of Directors of Haleon from time to time or any duly appointed committee of that board.

 “Immediate Relatives” will include husband, wife, registered civil partner, partner living with the Executive, children,
brothers, sisters, cousins, aunts, uncles, parents, grandparents, and any such relatives by marriage or registered civil partnership. 

“Notice Period” means, as at the Termination Date, the shortest of: 

 

	 	(a)	 the shortest period of notice which the Company is required to give to terminate the Employment; and

  

	 	(b)	 where notice has already been given, the remainder of the notice period; and 

 

	 	(c)	 the period until the Employment would terminate automatically (unless renewed). 

“Payment Period” means a period equivalent in length to the Notice Period commencing on the Termination Date. 

“Regulated Information Service” means an information service that is listed on the Financial Conduct Authority’s list of
Regulated Information Services. 
 “Remuneration Committee” means a duly constituted committee of the Haleon Board delegated
with the authority to consider the remuneration of directors of the Company. 
 “Termination Date” means the date upon which
the Executive’s employment with the Company terminates. 
  

	24.	 Construction 

  

	24.1	 The provisions of the Schedules to and any additional terms endorsed in writing by or on behalf of the parties
will be read and construed as part of this Agreement and will be enforceable accordingly. 

  

	24.2	 There are no collective agreements which directly affect the terms and conditions of the Executive’s
employment. 

  

	24.3	 No provisions of this Agreement are intended to be enforceable by any person who is not a party to this
Agreement, pursuant to the Contracts (Rights of Third Parties) Act 1999. 

  

	25.	 Prior agreements 

This Agreement cancels and is in substitution for all previous letters of engagement, agreements and arrangements (whether oral or in writing)
relating to the subject-matter hereof between the Company and the Executive other than the offer letter sent to the Executive dated 5 May 2022 (the “Offer Letter”) all of which will be deemed to have been terminated by
mutual consent. This Agreement and the Offer Letter constitute the entire terms and conditions of the Executive’s employment and no waiver or modification thereof will be valid unless in writing and signed by the parties. The Executive
acknowledges and warrants that he is not entering into this Agreement in reliance on any representation not expressly set out herein. 
  

	26.	 Governing law 

 

	26.1	 The construction, validity and performance of this Agreement and all
non-contractual obligations (if any) arising from or connected with this Agreement shall be governed by the laws of England. 

  
 14 

	26.2	 Each party irrevocably agrees to submit to the exclusive jurisdiction of the courts of England over any claim
or matter (including any non-contractual claim) arising under or in connection with this Agreement. 

In witness whereof the Company and the Executive have executed this Agreement as a Deed on the day and year first above written. 

  
 15 

 Execution 

SIGNED as a Deed 
 by Brian McNamara 

 

							
	Name:	 	 /s/ Brian McNamara
	  		 	
				
	Title:	 	 CEO, GSK Consumer Healthcare
	  		 	
				
	in the presence of:	 	 /s/ Barbara Zoltowska
	  		 	
				
	Witness’ name:	 	 Barbara Zoltowska
	  		 	
				
	Address:	 	  
	  		 	
		 	  
	  		 	
			
	 EXECUTED as a Deed by GlaxoSmithKline

Consumer Healthcare Overseas Limited acting
 by Oriane Lacaze,
Director
	  		 	
			
	 and by an Authorised Signatory, Corporate

Director
	  		 	
				
		 	 /s/ Oriane Lacaze
	  		 	 /s/ Bridget Creegan

	Print name:	 	 Oriane Lacaze
	  	Print name:	 	 Bridget Creegan, Authorised

Signatory, for and on behalf
 of GSK Consumer

Healthcare Holdings (No.8)

Limited, Corporate Director

	Title:	 	 Director
	  	Title:	 	 Director/Secretary

  
 16 

 Schedule 1 

Post Termination Obligations 
  

	1.	 The Restrictions 

 

	1.1	 No working for or setting up a Competing Business 

The Executive agrees that during the six months following the Termination Date the Executive will not, directly or indirectly, for his own
benefit or that of others, in competition with the Company or any Associated Company: 
  

	 	(a)	 (i) be employed by; (ii) be engaged by; or (iii) otherwise provide services to, a Competing Business
which is being carried out or to be carried out in any Restricted Territory; or 

  

	 	(b)	 (i) set up; or (ii) carry on, a Competing Business which is being carried out or to be carried out in any
Restricted Territory. 

  

	1.2	 No shareholding in a Competing Business 

The Executive agrees that during the six months following the Termination Date he will not directly or indirectly: 

 

	 	(a)	 hold more than 5% of the shares in a Competing Business which is quoted on any recognised stock
exchange; or 

  

	 	(b)	 hold more than 5% of the shares in a Competing Business which is not quoted on a recognised stock exchange.

  

	1.3	 No dealing with Customers and Prospective Customers 

The Executive agrees that during the twelve months following the Termination Date he will not, in any Capacity, in competition with the Company
or any Associated Company: 
  

	 	(a)	 (i) develop; or (ii) provide, products or services for any Customer or Prospective Customer; or

  

	 	(b)	 otherwise (i) deal with; (ii) accept; or (iii) facilitate the acceptance of the custom of, any
Customer or Prospective Customer. 

  

	1.4	 No solicitation of Customers and Prospective Customers 

The Executive agrees that during the twelve months following the Termination Date he will not, in any Capacity, in competition with the Company
or any Associated Company: 
  

	 	(a)	 (i) solicit; or (ii) assist in soliciting, the custom or business of any Customer or Prospective Customer
(which shall include, without limitation, excluding the Company or any Associated Company from a new business opportunity); or 

  

	 	(b)	 (i) seek to reduce the amount of business which a Customer or Prospective Customer conducts or intends to
conduct with the Company or any Associated Company; or (ii) adversely affect the terms on which a Customer or Prospective Customer conducts its business with the Company or any Associated Company. 

 

	1.5	 No solicitation of Key People 

The Executive agrees that during the twelve months following the Termination Date he will not, in any Capacity: 

  
 17 

	 	(a)	 (i) solicit; (ii) attempt to solicit; (iii) assist in soliciting; (iv) entice away; or (v) try
to entice away, from the Company or any Associated Company any Key Person; or 

  

	 	(b)	 be personally involved to a material extent in (i) accepting into employment; (ii) recruiting; (iii)
engaging; or (iv) otherwise using the services of, any Key Person. 

  

	1.6	 No interference with Suppliers 

The Executive agrees that during the twelve months following the Termination Date he will not in any Capacity: 

 

	 	(a)	 interfere with the supply of goods or services to the Company or any Associated Company from any Supplier
(including, without limitation, inducing or encouraging the Supplier adversely to vary the terms on which it conducts business with the Company or any Associated Company); or 

 

	 	(b)	 induce or encourage any Supplier to cease or decline to supply goods or services to the Company or any
Associated Company in the future. 

  

	1.7	 No connection after termination 

Following the Termination Date the Executive will not: 
  

	 	(a)	 represent himself, or permit himself to be represented, as being employed or engaged by the Company or any
Associated Company (except where agreed by such a company); 

  

	 	(b)	 represent, promote, advertise or refer to his previous connection with the Company or any Associated Company in
a way which seeks to utilise the goodwill of such a company; 

  

	 	(c)	 knowingly do anything that might reasonably be expected to damage the goodwill or reputation of the Company or
any Associated Company; or 

  

	 	(d)	 carry on, or cause or permit to be carried on, any business using any name or branding which is or has been
used by the Company or any Associated Company or which is in the reasonable opinion of the Company calculated or likely to cause confusion with such a name or branding in the minds of members of the public or imply a connection with the Company or
any Associated Company. 

  

	1.8	 General terms applicable to the restrictions 

 

	 	(a)	 The duration of the restrictions set out in this Schedule 1 will be reduced by any period during which the
Executive has been required by the Company (pursuant to clause 16.1 of the Agreement) both not to attend at work and not to perform any duties of employment. 

  

	 	(b)	 The Executive agrees that the obligations contained in this Schedule 1 are reasonable and necessary to protect
the legitimate business interests of the Company and any Associated Company. The Executive confirms that he has had the opportunity to take independent legal advice on the terms of this Schedule 1. 

 

	 	(c)	 Save for the obligations at paragraph 1.2 none of the obligations contained in this Schedule 1 prevent the
Executive from holding any shares or other securities in any company. 

  
 18 

	 	(d)	 Each restriction in this Schedule 1 is intended to and will apply after the Termination Date, regardless of
whether the Executive’s termination is lawful. The restrictions will apply even if termination results from a breach of a provision of the Agreement. 

  

	 	(e)	 None of the restrictions in this Schedule 1 shall prevent the Executive from doing anything for which the
Company has given its prior written consent, and the Company encourages him to seek such consent. 

  

	1.9	 The Executive agrees that if his employment is transferred to any other person, firm, company or other entity,
pursuant to the Transfer of Undertakings (Protection of Employment) Regulations 2006 he] will, if required, enter into an agreement with such other person, firm, company or other entity, that will contain provisions that provide protection to the
new employer equivalent to that provided to the Company and any Associated Company in this Schedule 1. 

  

	2.	 Interpreting the Restrictions 

In this Schedule 1: 
 Save as
defined in this Schedule 1, any capitalised terms have the same definition as in the Agreement. 
 “Agreement” means the
Service Agreement between the Executive and the Company. 
 “Associated Company” has the same meaning given to it in clause
24.1 of the Agreement. 
 “Capacity” means whether the Executive is acting (i) directly or indirectly (through any
other person, firm or company); (ii) alone or jointly with others; (iii) as principal, agent, consultant, officer, director, shadow director, partner, LLP member, independent contractor, worker or employee; or (iv) for his own benefit or
that of others. 
 “Competing Business” means any business which competes with or is preparing to compete with (i) any
business carried on by the Company or any Associated Company on the Termination Date; or (ii) any business which, on the Termination Date, the Company or any Associated Company is proposing to carry on and has taken material steps towards
conducting; and in each of cases (i) and (ii) in respect of which business of the Company or Associated Company the Executive: 
  

	 	(a)	 had material responsibilities (including, without limitation, supervisory or management responsibilities) or
carried out material duties; or 

  

	 	(b)	 otherwise obtained Relevant Confidential Information, 

in each case in the course of his employment at any time in the Relevant Period. 

For the avoidance of doubt, as at the date when this Schedule 1 is agreed, this includes, without limitation: 

 

	 	•	 	 Proctor & Gamble; 

 

	 	•	 	 Nestle; 

  

	 	•	 	 Unilever; 

  

	 	•	 	 Reckitt Benckiser; 

  

	 	•	 	 Colgate; 

  

	 	•	 	 Church & Dwight; 

  
 19 

	 	•	 	 Bayer; 

  

	 	•	 	 Sanofi; 

  

	 	•	 	 Johnson & Johnson. 

“Confidential Information” has the same meaning given to it in clause 11.1 of the Agreement. 

“Customer” means any customer or client of the Company or an Associated Company: 

 

	 	(a)	 with whom the Executive has had material dealings; or 

 

	 	(b)	 in respect of whom the Executive has obtained Relevant Confidential Information, 

in each case at any time during the Relevant Period. 

“Key Person” means any (i) director or officer; (ii) employee who is employed at Grade 3 or above (or any equivalent
career level); or (iii) individual who is engaged as a consultant at an equivalent level to such an employee, in each case of or by the Company or any Associated Company; and 

 

	 	(a)	 with whom the Executive has had material dealings; or 

 

	 	(b)	 in respect of whom the Executive has obtained Confidential Information about their skills, role,
responsibilities, expertise, or other Confidential Information or material non public information relevant to their potential recruitment or engagement, 

in each case at any time during the Relevant Period. 

“Prospective Customer” means any person, firm, company or other entity with whom the Company or any Associated Company has had
any negotiations or material discussions regarding the possible supply of products or services by the Company or any Associated Company and: 
  

	 	(a)	 with whom the Executive has had material dealings; or 

 

	 	(b)	 in respect of whom the Executive has obtained Relevant Confidential Information, 

in each case at any time during the Relevant Period. 

“Relevant Confidential Information” means Confidential Information which would be of value to any business which competes or
is preparing to compete with the Company or an Associated Company, including, without limitation, Confidential Information that would enable it to: 
  

	 	(a)	 review, amend, change or introduce products, services, systems, processes, proposals, forecasts, terms of trade
or strategies (including, but not limited to, marketing and/or sales strategies); or 

  

	 	(b)	 otherwise gain a competitive advantage. 

“Relevant Period” means the 12 months immediately preceding the Termination Date. 

“Restricted Territory” means: 
  

	 	(a)	 the United Kingdom; or 

  
 20 

	 	(b)	 any other country where the Company or an Associated Company carries out business and in relation to which the
Executive has had material responsibilities (including, without limitation, supervisory or management responsibilities) or carried out material duties during the Relevant Period; or 

 

	 	(c)	 any other country where the Company or an Associated Company carries out business and in relation to which the
Executive acquired Relevant Confidential Information during the Relevant Period. 

 “Supplier” means any
person, firm, company, or other entity (i) with whom the Executive has had material dealings during the Relevant Period; or (ii) in respect of whom the Executive has obtained Relevant Confidential Information during the Relevant Period;
and who: 
  

	 	(a)	 has supplied goods or services to the Company or any Associated Company during the Relevant Period; or

  

	 	(b)	 has agreed prior to the Termination Date to supply goods or services to the Company or any Associated Company,
with such supply to commence at any time in the twelve months following the Termination Date; or 

  

	 	(c)	 as at the Termination Date, supplies goods or services to the Company or any Associated Company under a
contract or arrangement between that supplier and the Company or the relevant Associated Company. 

 “Termination
Date” has the same meaning given to it in clause 23 of the Agreement. 
  

	3.	 Associated Companies 

 

	3.1	 The Company contracts as trustee and agent for the benefit of each Associated Company. 

 

	3.2	 The Executive acknowledges that the provisions of this Schedule 1 constitute severable undertakings given for
the benefit of the Company and all other Associated Companies and may be enforced by the Company on its own behalf or on behalf of any Associated Company. 

  

	3.3	 The benefit of each agreement and obligation imposed upon the Executive under this Schedule 1 may be
assigned to and enforced by all successors and assigns for the time being of the Company and its Associated Companies and such agreements and obligations will operate and remain binding notwithstanding the termination of the Agreement.

  

	4.	 Remedy 

  

	4.1	 The Executive acknowledges and agrees that monetary damages would not be an adequate remedy for a breach of any
of the obligations contained in this Schedule 1, and that for any breach of such obligations, the Company and its Associated Companies will, in addition to other remedies as may be available to it, or as provided for in the Agreement, be entitled to
an injunction, restraining order, or other equitable relief, restraining him from committing or continuing to commit any breach of the covenants. The Executive agrees that proof will not be required that monetary damages for breach of the provisions
of this Schedule 1 would be difficult to calculate and would be an inadequate remedy. 

  

	5.	 Severability 

  

	5.1	 The restrictions in paragraph 1 are considered by the parties to be fair and reasonable in all the
circumstances. Each of the restrictions contained in paragraph 1, including the sub-paragraphs thereof and each of the restrictions listed by Roman numeral, constitutes an entirely separate, severable and
independent covenant. If any covenant is found to be invalid this will not affect the validity or enforceability of any of the other covenants. 

  
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	5.2	 Each of the sub-paragraphs of the definitions contained in paragraph 2,
including the matters identified by Roman numeral, constitutes a separate, severable and independent part of the definition. If any such part of a definition would render a covenant invalid, this will not affect the validity or enforceability of the
covenant by reference to any other part of the definition. 

  

	5.3	 It is agreed that if any such restrictions by themselves, or taken together, are for any reason unenforceable,
but would be enforceable if part or parts of the wording were deleted, the relevant restriction or restrictions shall apply with such deletion(s) as may be necessary to make it or them valid and enforceable. 

  
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