Document:

Exhibit 4(b)(iii)

 

Deed of confirmation and variation of contract

 

This deed is dated 18
June 2019

 

PARTIES

 

(1) LLOYDS BANKING
GROUP PLC of The Mound, Edinburgh EH1 1YZ with registered number SCO95000 (the “Employer”); and

 

(2) ANTÓNIO
HORTA-OSÓRIO of 16 Chelsea Park Gardens, London SW3 6AA (the “Executive”) 

 

BACKGROUND

 

	(A)	The Employer and the Executive entered into or intended to enter into a Pensions Contract on
or about 2012 in the form appended to this deed (the “Agreement”).

 

	(B)	The original Agreement has been misplaced so the parties wish to confirm their agreement to
the terms of the Agreement by entering this deed.

 

	(C)	On 2 April 2014 the Employer imposed a cap on the pensionable salaries for all members of its
Defined Benefit pension schemes (the “DB Schemes”).

 

	(D)	The intention of the Employer and the Executive was to apply an equivalent
cap to the Executive’s pension arrangements under the Agreement as applies under the DB Schemes and accordingly to cap the pensionable
salary under the Agreement at its 2014 value.

 

	(E)	Consequently, the parties record that intention to amend the Agreement as set out in this deed
with effect from 2 April 2014 (the “Variation Date”).

 

AGREED TERMS

 

	1.	TERMS DEFINED IN THE AGREEMENT

 

In this deed, expressions
defined in the Agreement and used in this deed have the meaning set out in the Agreement. The rules of interpretation set out in
the Agreement apply to this deed.

 

	2.	CONFIRMATION

 

The Employer and the Executive confirm that
the Agreement records their intentions and the agreement they reached in 2012 and the terms of the Agreement have continued in
full force and effect since that date, subject to the variations to be made under this deed as set out in clause 3 of this deed.

 

	3.	VARIATION

 

With effect from the Variation Date the Parties agree
the following amendments to the Agreement:

 

	a)	Clause 2.1 (including sub-paragraphs (a)-(e) inclusive) amended:	This clause is amended to read as follows: “The Executive shall be entitled, on retirement at age 65, to an annual pension equal to 6% of £1,220,000 (being the Reference Salary, as defined in clause 20.2 of the Service Agreement, in 2014)”.

    	 

    	

    

	b)	Clause 2.2 amended	This clause is amended to read as follows: “For the avoidance of doubt, the Executive’s entitlement
    under clause 2.1 above shall survive termination of the Employment, as defined in clause 1.1 of the Service Agreement. “

	 	 
	3.	GOVERNING LAW

 

This deed and any dispute or
claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter or formation
shall be governed by and construed in accordance with the law of England and Wales.

 

	4.	JURISDICTION

 

Each party irrevocably agrees
that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual
disputes or claims) arising out of or in connection with this deed or its subject matter or formation.

 

This document has been executed
as a deed and takes effect on the Variation Date.

 

The common seal of LLOYDS BANKING GROUP PLC was
affixed to this deed and this deed is delivered on 18 June 2019

 

	/s/ J. Hickling	 	/s/ E. Gaspar	 
	 	 	 	 
	Authorised signatory	 	Authorised counter	 
		 	signatory	 

    	 

    	

    

	Signed as deed by ANTÓNIO HORTA-OSÓRIO in the presence of:	 	/s/ A. Horta-OsÓrio
	 	 	 
	 	 	SIGNATURE OF ANTÓNIO
	 	 	HORTA-OSÓRIO
	 	 	 
	 	 	Date: 18 June 2019
	 	 	 
	 	 	/s/ T. O’Keefe
	 	 	 
	 	 	SIGNATURE OF WITNESS
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	ADDRESS OF WITNESS
	 	 	 
	 	 	Date:18 June 2019

    	 

    	

    

APPENDIX

 

The Agreement

    	 

    	

    

	DATED	 	2012

 

Draft C3/SI/JD 25 January 2012

 

LLOYDS BANKING GROUP PLC

 

- and -

 

ANTÓNIO HORTA-OSÓRIO

 

 

 

 

 

PENSIONS CONTRACT

 

 

 

 

 

0143L.03892 

C3/Sl/JRD/2817656

 

Hogan Lovells International LLP

Atlantic House, Holborn Viaduct,
London EC1A 2FG

 

    	 

    	

    

	THIS AGREEMENT is made 	2012

 

BETWEEN:

 

	(1)	Lloyds Banking Group PLC of The Mound, Edinburgh EH1 1YZ with registered numberSC095000
(the ‘‘Employer”); and

 

	(2)	AntÓnio Horta-OsÓrio of [•] (the “Executive”),

 

collectively the “Parties”.

 

BACKGROUND:

 

	(A)	The Executive was appointed Group Chief Executive of the Employer on [7 March 2011] under a Service Agreement dated [insert date] 2010 (the “Service Agreement”).
	 	 

	(B)	The terms of certain of the Executive’s pension arrangements (the “Pension Arrangements”) were set out in Appendix 1 to the Heads of Terms agreed between the Employer and the Executive, dated [31 October 2010] (the “Heads of Terms”). This agreement sets out the definitive legal form of the Pension Arrangements agreed between the Parties (both acting reasonably) as required by Clause 4.2 of the Service Agreement.
	 	 

	(C)	This agreement supersedes and replaces the Heads of Terms and in the event of any inconsistency
between the terms of this agreement and the Heads of Terms, the terms of this agreement will prevail.

 

	(D)	It is acknowledged and agreed that the conditions in Clause 4.2 of the Service
Agreement has been satisfied. [please verify that the conditions in respect of the Executive’s Santander pension have been satisfied]

 

	(E)	It is hereby confirmed by the Employer that prior to the date of this agreement
confirmation has been obtained from the Financial Services Authority (as established by section 1 of the Financial Services and
Markets Act 2000 (“FSMA”)) (the “FSA”) that the agreement satisfies the requirements of
the FSA and its Remuneration Code (as published under section 153 of FSMA) (the “Code”).

 

OPERATIVE PROVISIONS:

 

	1.	DEFINITIONS AND INTERPRETATION

 

	1.1	Capitalised words and phrases used in this agreement shall have the meanings
respectively given to them in the Recitals and Operative Provisions. Capitalised words or phrases which are not defined in this
agreement have the meanings respectively given to them in the Service Agreement.

 

	1.2	In this agreement:

 

		(a)	where the context permits, references to the singular shall include references
to the plural and vice versa;

 

		(b)	references to a Clause mean a Clause in this agreement unless expressly
stated otherwise;

 

		(c)	Clause headings are inserted for convenience only and shall not affect the
construction of this agreement; and

 

		(d)	any reference to a statute, statutory provision or subordinate legislation
(“Legislation”) shall be construed as referring to such Legislation as amended and in force from time to time
and to any Legislation which re-enacts or consolidates or modifies such Legislation from time to time.

    	 

    	

    

	2.	THE EXECUTIVE’S PENSION ENTITLEMENT

 

	2.1	Normal Retirement Pension

 

The Executive shall
be entitled, on retirement at age 65, to an annual pension of an amount determined in accordance with the following provisions
and on the following terms.

 

		(a)	The initial rate of pension at retirement at age 65 shall be calculated
as x% of Basic Salary or Reference Salary whichever is the greater in the 12 months before retirement (“Pensionable Salary”)
for each or any of the first five calendar years of the Executive’s employment by the Employer if in the last 90 days of each such
year the average share price of the Employer on the London Stock Exchange (the “Average Share Price” and the
“LSE” respectively) exceeds GBp 75 plus an additional 2% of Pensionable Salary for each such year if the Average
Share Price exceeds:

 

	Year 1	GBp 90
	 	 
	Year 2	GBp 102
	 	 
	Years 3-5 inclusive	GBp 114

 

Where x is 4 in the first calendar year, 3.5 in
the second calendar year and 3 in the third, fourth and fifth calendar years.

 

		(b)	If at the end of the fifth calendar year of his employment by the Employer
the aggregate percentage pension accrued in accordance with the above provision is less than 26.5%, the Executive may accrue up
to a further 4.5% of Pensionable Salary in his sixth calendar year of employment by the Employer if the average share price of
the Employer on the LSE for the last 90 days of that year exceeds GBp 75 and up to a further 2% if the average share price of the
Employer on the LSE for the last 90 days of that year exceeds GBp 114.

 

		(c)	The maximum aggregate accrual under the formulae at Clauses 2.1(a) and 2.1(b)
shall not exceed 26.5% and not more than 6% shall accrue in the first calendar year, not more than 5.5% shall accrue in the second
calendar year, not more than 5% shall accrue in any subsequent calendar year save in the sixth year where up to 6.5% shall accrue
in the manner described in 2.1(b) above.

 

		(d)	In the event of a material increase or reduction of the issued share capital
of the Employer, appropriate adjustments shall be made to the share prices stipulated for the purposes of Clause 2.1(a) above by
the Employer acting reasonably.

 

		(e)	For the avoidance of doubt in calculating the first five calendar years
of the Executive’s employment by the Employer, the first calendar year shall end on 31 December 2011 even though the Executive
will not have been employed for the full calendar year.

 

	2.2	Pension on leaving employment with the Employer

 

Where the
Executive is Dismissed for Cause or resigns voluntarily (i.e. in circumstances in which he is not entitled to resign without
notice owing to the conduct of the Group) at any time before the end of the fifth calendar year of his employment by the
Employer (or the sixth such year if at the end of year 5 the aggregate accrual is less than 26.5%) he shall be prospectively
entitled to a deferred pension payable at age 65 of an initial amount calculated in accordance with the above formula
(without revaluation) with accrual only in respect of those complete calendar years whilst the Executive is in full time
employment of the Employer and with Pensionable Salary determined as if the date of his leaving employment was the date of
his retirement.

 

In all other circumstances of termination
of employment (including Absence Dismissal pursuant to Clause 12.3), all that would have accrued will continue to accrue and be
paid

    	 

    	

    

on the same basis as if the Executive had
remained employed by the Employer until the end of Year 6.

 

	2.3	Increases to pension in payment

 

Any pension payable
to the Executive under this agreement shall be payable to the Executive by the Employer from retirement at age 65 for life with
annual increases at a rate equal to 75% of the annual growth in the retail prices Index (“RPI”) up to a maximum
of 4% in any year (with the Employer specifying the year over which RPI growth is measured for this purpose)

 

	2.4	Death Benefits

 

On the Executive’s
death after commencement of his pension under this agreement, his surviving spouse (the “Surviving Spouse”) shall
be entitled to a pension payable from the date of the Executive’s death for the Surviving Spouse’s life of an Initial annual amount
equal to two-thirds of the Executive’s pension under this agreement at the date of death. The Surviving Spouse’s pension, if any,
shall be subject to annual increase at a rate equal to 75% of the annual growth in the RPI up to a maximum of 4% in any year (with
the Employer specifying the year over which RPI growth is measured for this purpose).

 

Without prejudice to the
life cover provided under Clause 4.5 of the Service Agreement there will be no death in service or death in deferment benefit in
respect of pensions to be provided under this agreement.

 

	2.5	General

 

		(a)	The pensions payable under this agreement shall be unfunded, non-commutable
and non-transferrable.

 

		(b)	The Parties acknowledge and represent to each other that:

 

	(i)	no sums or assets will be earmarked with a view to a contribution being made later in respect of this agreement; and
	 	 
	(ii)	no security will be provided for the performance of this agreement.
	 	 

		(c)	The pensions payable under this agreement shall be paid by the Employer out of its resources
from the date of their respective commencement until the death of the recipient in instalments, monthly and in arrears or at such
other intervals as agreed from time to time with the Executive or the Surviving Spouse.

 

	2.6	Taxation

 

All
benefits payable to or in respect of the Executive under this agreement shall be subject to deduction of income tax and other withholdings
for which the recipients are liable. The Parties agree that should the accrual of any benefits under this agreement become subject
to income or other tax, they shall discuss in good faith potential amendments to this agreement provided that the Employer shall
not be obliged to agree to any change that has the effect of increasing its liability to the Executive.

 

	3.	ILLEGALITY AND SEVERANCE

 

The
invalidity in whole or in part of any portion of this agreement (including, but without limitation, as a result of this agreement
ceasing to satisfy the requirements of the FSA or the Code) shall not affect the validity of the remainder of this agreement and
in such a case of invalidity the Parties shall endeavour to modify the invalid provisions so as to carry out as nearly as possible
the original intent of the Parties in a legally enforceable manner.

    	 

    	

    

	4.	VARIATION

 

Any
variation of this agreement must be in writing and signed by each Party or, in the case of a body corporate, a duly authorised
officer or representative of such Party.

 

	5.	GOVERNING LAW AND JURISDICTION

 

	5.1	The law of England and Wales applies to this agreement.

 

	5.2	Each of the Parties irrevocably agrees that the courts of England and Wales
have exclusive jurisdiction to decide and settle any dispute or claim arising out of or in connection with this agreement.

 

	6.	COUNTERPARTS

 

This
agreement may be executed in any number of counterparts, each of which when executed and delivered shall be an original but all
of which when taken together shall constitute a single document.

 

	7.	ENTIRE AGREEMENT

 

This
agreement sets out the entire agreement between the Parties in respect of the Pension Arrangements (save for those definitions
contained in the Service Agreement and used herein) and supersedes and replaces any previous agreement or arrangement between the
Parties relating to the Pension Arrangements.

 

	7.1	No reliance on a statement outside of this agreement

 

Each
Party agrees and acknowledges that it has not relied on or been induced to enter into the agreement by a warranty, statement, representation
or undertaking which is not expressly included in this agreement.

 

	7.2	No remedy for a statement outside of this agreement

 

No
Party has any claim or remedy in respect of a warranty, statement, misrepresentation (whether negligent or innocent) or undertaking
made to it by or on behalf of the other party in connection with or relating to the Pension Arrangements which is not expressly
included in this agreement.

 

	7.3	Clause does not apply in the event of fraud

 

Nothing
in this Clause 7 limits or excludes liability arising as a result of fraud, wilful concealment or wilful misconduct.

 

	8.	THIRD PARTY RIGHTS

 

The following
terms shall apply with respect to third parties.

 

		(a)	The Surviving Spouse may enforce and rely
on any term of this agreement conferring a benefit on her to the same extent as if she was a party to the agreement.

 

		(b)	In any proceedings brought by the Surviving
Spouse in connection with this agreement the Employer may rely on any defence, right of set-off or counterclaim arising from or
in connection with this agreement or which would have applied if the Surviving Spouse had been a party to this agreement.

 

		(c)	Even though this agreement confers benefits
on the Surviving Spouse, the Parties shall remain free to terminate or vary any of its terms without the consent of the Executive’s
spouse.

    	 

    	

    

		(d)	Any right in connection with this agreement arising by virtue of the Contracts
(Rights of Third Parties) Act 1999 are personal to the Surviving Spouse.

 

		(e)	Save as aforesaid, no person who is not a party to this agreement may enforce
any of its terms or rely on any exclusion of limitation contained in it whether under the Contracts (Rights of Third Parties) Act
1999 or otherwise.

 

This agreement is executed
and delivered as a deed the day and year first written above.

    	 

    	

    

	EXECUTED on as a deed behalf of Lloyds	)
	Banking Group PLC by:     .	)
	 	 
	Company Director	 
	 	 
	Company Director/Secretary	 
	 	 
	EXECUTED as a deed by AntÓnio	)
	Horta-OsÓrio in the presence of:	)
	 	 
	 	 

	 	 	 
	 	Witness’ name and signature	 
	 	 	 
	 	 	 
	 	 	 
	 	Witness’ address	 

    	 

    	

    

	DATED	2012

 

 

 

LLOYDS BANKING GROUP PLC

 

- and -

 

ANTÓNIO HORTA-OSÓRIO

 

 

 

 

 

PENSIONS CONTRACT

 

 

 

 

 

0143L.03B92

C3/Sl/JRD/2B17656

 

Hogan Lovells International
LLP

Atlantic House, Holbon Viaduct,
London EC1A 2FGExhibit 4(b)(vii)

Classification: Confidential

 

Section 430(2B) Companies
Act 2006 Statements

 

As announced on 6 June 2019, George Culmer retired as Chief Finance
Officer and an Executive Director of Lloyds Banking Group plc (the “Company”) with effect from 1 August 2019. 
George retired from the Group on 2 August 2019 (“Retirement Date”).  The following information is provided in
accordance with section 430(2B) of the Companies Act 2006:

 

George Culmer has not received and will not receive any payment for
loss of office.

 

On 20 August 2019, George Culmer will receive a payment of £79,594.92
in lieu of unused annual leave entitlement up to the Retirement Date.

 

Employees taking retirement are treated as ‘good leavers’
under the Company’s Group Performance Share Plan (GPS Plan) Rules.  As George Culmer has worked more than 12 weeks during
the current performance period, he will remain eligible for a pro-rated award GPS Plan award in respect of the period from 1 January
2019 to the Retirement Date.  Any such award will be subject to an assessment of the relevant performance measures and his
contribution during that period and will be determined in accordance with the rules and timetable of the 2019 GPS Plan.

 

As a ‘good leaver’ under the GPS Plan Rules, George Culmer’s
outstanding deferred GPS awards over ordinary shares of 10p each in the capital of the Company (“Shares”) under the
2016 GPS Plan (83,466 Shares), 2017 GPS Plan (176,108 Shares) and under the 2018 GPS Plan (501,341 Shares) will continue to be
released on their scheduled release dates, subject to the relevant terms (including post-vesting retention periods, malus and,
where applicable, clawback and to deductions for national insurance and income tax).

 

George Culmer will remain entitled to his Fixed Share Award, time
pro-rated to his retirement date.  The award is paid in Shares in quarterly instalments and the final award of £46,523
will be made in Shares in September 2019 and restricted over five years. 

 

As a ‘good leaver’ under the Executive Group Ownership
Plan Rules (Executive GOS), George Culmer’s outstanding 2017 and 2018 Executive GOS awards will be time pro-rated to his
retirement date (2017 becomes 2,660,947 Shares and 2018 becomes 2,144,958 Shares). The awards remain subject to the performance
measures which apply to the relevant awards and will continue to vest at the normal vesting dates and be released on their scheduled
release dates, subject to the relevant terms (including post-vesting retention periods, malus and, where applicable, clawback and
to deductions for national insurance and income tax).

 

Employees taking retirement are treated as ‘good leavers’
under the Group Share Incentive Plan rules (SIP). Accordingly, George Culmer can no longer participate in the SIP plan and

    	 	 	 

    

    
Classification: Confidential

 

 Shares
held in the SIP Trust on his behalf need to be removed from the Trust within 30 days from the date of his retirement. George Culmer
will be entitled to sell or transfer his Shares. There is no income tax or National Insurance contributions payable on the value
of the SIP Shares. However, dividend tax is payable on the sale of any dividend Shares held for less than three years at the point
of sale.

 

Balance in the SIP plan as at the Retirement Date:

 

	Partnership

Shares	Matching

Shares	Free

Shares	Dividend

Shares	Total
	16,876	5,080	912	1,430	24,298

 

Employees taking retirement are treated as ‘good leavers’
under the Sharesave plan.  Accordingly, George Culmer will be entitled to use his savings of currently £6,144 (as at
the Retirement Date) in respect of the Sharesave Plan 2016 to purchase Shares at the option price of 47.49 pence within six months
of the Retirement Date or request for the return of those savings. George Culmer can arrange to continue to make monthly payments
up to a maximum of six months or to the end of the 36 months savings term whichever is sooner.

 

George Culmer will be entitled to a capped contribution of up to
£10,000 (excluding VAT) towards legal fees incurred in connection with his retirement from the Company.

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