Prepared and filed by St Ives Burrups


Exhibit 4.15

 




  
     

    IMPORTANT

      IF YOU HAVE RECEIVED AN AWARD UNDER THE mmO2 RESTRICTED SHARE
      PLAN

      WHICH IS SUBJECT TO A CO-INVESTMENT REQUIREMENT, THEN PLEASE READ THESE

      RULES TOGETHER WITH THE SPECIAL CONDITIONS ATTACHED TO YOUR AWARD

      LETTER (WHICH HAVE BEEN IMPOSED IN ACCORDANCE WITH RULE 2 OF THESE RULES)

     

     

    mmO2 plc

     

     

  









THE mmO2 RESTRICTED
  SHARE PLAN





 

As adopted by the Board of the Company on 31 August 2001 and approved by

British Telecommunications PLC in general meeting 23 October 2001

 

 






	THE RULES OF THE mmO2
      RESTRICTED SHARE PLAN


	 
	CONTENTS
	 


	 	 	Page
	 1.
	How the Plan
      will operate	2
	 	 	 
	 2.
	Performance
      targets and additional terms and conditions	3
	 	 	 
	 3.
	Limit on
      participation by Eligible Executive	4
	 	 	 
	 4.
	Rights in
      relation to Shares prior to the Vesting of an Award	4
	 	 	 
	 5.
	General
      offer, scheme of arrangement or voluntary winding-up of the Company	4
	 	 	 
	 6.
	Ceasing to
      be in Employment during the Restricted Period	8
	 	 	 
	 7.
	The end
      of the Restricted Period	10
	 	 	 
	 8.
	Transfer
      of Shares	11
	 	 	 
	 9.
	Amending
      the Plan	12
	 	 	 
	 10.
	General	13
	 	 
	 Appendix
        I – U.S. Section
	 16
	 	 
	 Definitions
        Appendix
	 18


 

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THE RULES OF THE mmO2
  RESTRICTED SHARE PLAN

	1.	HOW THE PLAN WILL OPERATE



	 	 
	1.1	Policies set by the Board



	 	 
	 	The Board will set the policies for the Company’s operation and administration of the Plan within the terms of the Rules, which shall include the determination of:



	 	 	 
	 	1.1.1	the circumstances in which Eligible Executives may be eligible for the grant of an Award;



	 	 	 
	 	1.1.2	the performance target (if any) on grant and/or Vesting of Awards, how any such performance target will be selected and whether or not the performance target has been met;



	 	 	 
	 	1.1.3	the additional terms and conditions (if any) to which an Award is subject, how any such additional terms and conditions will be selected and whether or not any such additional terms and conditions have been met;



	 	 	 
	 	1.1.4	the Restricted Period for each Award;



	 	 	 
	 	1.1.5	the maximum amount of an
        Eligible Executive’s Award; 



	 	 	 
	 	1.1.6	how Awards are granted; and
	 	 	 
	 	1.1.7	the extent to which Awards
        will Vest when Participants cease Employment.



	 	 
	 	The Board can change any of its policies at any time but it cannot change its policies to the detriment of a Participant’s subsisting Awards.



	 	 
	1.2	When Awards will be granted



	 	 
	 	An Award can be granted at any time provided that the Date of Grant of an Award is not during a Close Period.



	 	 
	1.3	Awards personal to Participants



	 	 
	 	Awards cannot be transferred, assigned, charged or otherwise disposed of. On the death of a Participant, his Awards can be transmitted to his personal representatives. A Participant can renounce his Award within 30 days following the Date of Grant and, to the extent renounced,
 the Award will be treated as if it had never been granted.



 

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	1.4	How Awards are granted



	 	 
	 	The Company will, from time to time and at its discretion, request the Trustee to grant Awards to one or more recommended Eligible Executives, in accordance with the Rules. An Award can be granted on the basis that it will not Vest in full at the end of one Restricted Period,
 but will Vest in tranches over more than one Restricted Period.



	 	 
	1.5	Award certificate(s)



	 	 
	 	When an Award is granted to a Participant, the Participant will, as soon as administratively practicable, receive either:



	 	 	 
	 	1.5.1	one Award certificate for each tranche of the Award, each specifying the number of Shares under that tranche of the Award, the Restricted Period in respect of that tranche of the Award and what proportion of the Award may Vest following the end of that Restricted
 Period; or



	 	 	 
	 	1.5.2	one Award certificate for the whole Award, specifying the Restricted Period applicable to each tranche of the Award and the number of Shares under each tranche of the Award.



	 	 
	 	Where an Award has been granted so as to Vest in tranches, references in the Rules to Restricted Period or Vesting (or any other applicable term) shall be read, where appropriate, as relating to the appropriate part of the Award and the Rules shall continue to apply to that tranche
 of the Award which has not yet Vested.



	 	 
	2.	PERFORMANCE TARGETS AND ADDITIONAL TERMS AND CONDITIONS



	 	 
	2.1	Awards and performance targets



	 	 
	 	An Award may be subject, in whole or in part, to a performance target selected by the Company which will normally have to be met before the Award (or that part of it subject to the performance target) can Vest. The Vesting of an Award can be subject to any additional terms
 and conditions the Company considers appropriate. If the Vesting of an Award is subject to any performance target or any additional terms and conditions, these will be specified at the Date of Grant. If Awards are exchanged under Rule 5.9, the performance target can be varied
 at the discretion of the Remuneration Committee to take account of this.



 

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	2.2	Different performance targets can apply to different Eligible Executives



	 	 
	 	Awards can be subject to different performance targets and additional terms and conditions for each Eligible Executive.



	 	 
	3.	LIMIT ON PARTICIPATION BY ELIGIBLE EXECUTIVE



	 	 
	 	The Remuneration Committee will, from time to time, set an individual limit on the Market Value (at the Date of Grant) of the Shares the subject of an Award granted to a Participant. This limit cannot be exceeded without the prior approval of the Remuneration Committee. Any
 subsisting Award will not be taken into account for the purposes of this limit.



	 	 
	4.	RIGHTS IN RELATION TO SHARES PRIOR TO THE VESTING OF AN AWARD



	 	 
	4.1	Voting rights, dividends and other rights



	 	 
	 	A Participant has no voting rights attaching to the Shares the subject of his Award, nor a right to any dividends nor other rights attaching to the Shares the subject of such Award prior to the Vesting of the Award in respect of those Shares. However, the Trustee may, on the
 recommendation of the Company, increase the number of Shares the subject of a Participant’s Award after any dividend has been paid by the Company. Any such increase will be equal to such number of Shares whose Market Value on the date any dividend has been paid by the
 Company is as close as possible equal to a sum equivalent to the aggregate dividend (net of any taxes) which has been paid in respect of the number of Shares which is equal to the number of Shares under a Participant’s Award.



	 	 
	4.2	Events which affect
        the share capital of the Company

	 	 
	 	If there is a Variation affecting the share
      capital of the Company prior to the Vesting of an Award, the Trustee will
      adjust the number of Shares the subject of that Award on the recommendation
      of the Company. Any Participant whose Award is adjusted will be notified
      in writing of any such adjustment.
	 	 


	5.	GENERAL OFFER, SCHEME OF ARRANGEMENT OR VOLUNTARY WINDING-UP OF THE COMPANY



	 	 
	5.1	General offer: Awards subject to a performance target



	 	 
	 	If, before an Award which is subject to a performance target has Vested, an offeror (either alone or together with any party acting in concert with him) obtains Control of the Company as a result of a general offer to acquire the whole of the issued ordinary share capital of the
 Company (or such part of it which is not at the time owned by the offeror and any party acting in concert



 

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	 	with the offeror) that Award will Vest as
      soon as the change of Control takes effect, but only to the extent specified
      by the Remuneration Committee in accordance with Rule 5.2.
	 	 
	5.2	The discretion of
        the Remuneration Committee



	 	 
	 	The Remuneration Committee will confirm as soon as practicable after the general offer has been made the minimum extent to which an Award which is subject to a performance target may Vest, to the extent that the performance target has been met up to the change of Control
 taking effect. Subject to this, the Remuneration Committee may decide to take other factors into account, which it believes to be relevant in permitting the Award to Vest beyond the extent to which the performance target has been met.



	 	 
	5.3	General offer: Awards not subject to a performance target



	 	 
	 	If, before an Award which is not subject to a performance target has Vested, an offeror (either alone or together with any party acting in concert with him) obtains Control of the Company as a result of a general offer to acquire the whole of the issued ordinary share capital of the
 Company (or such part of it which is not at the time owned by the offeror and any party acting in concert with the offeror) that Award will Vest as soon as the change of Control takes effect (unless the Remuneration Committee has specified otherwise as an additional term or
 condition on which the Award was granted). If Rule 5.9 applies, however, Awards will not Vest under this Rule 5.3.



	 	 
	5.4	Extension to Participants of general offer



	 	 
	 	The Company will use its best endeavours to procure that to the extent a Participant’s Award Vests in accordance with Rule 5.1 or Rule 5.3, the offeror will make an offer to acquire from the Participant his Shares on the same terms as Shares of the same class were acquired under
 the general offer.



	 	 
	5.5	Scheme of arrangement: Awards subject to a performance target



	 	 
	 	If, before an Award which is subject to a performance target has Vested, the court directs that a meeting of the holders of Shares should be convened under Section 425 of the Companies Act 1985 to consider a scheme of arrangement, a Participant’s Award will Vest on the date
 the scheme of arrangement is sanctioned by the court, but only to the extent specified by the Remuneration Committee in accordance with Rule 5.6. If, however, the purpose and effect of the scheme of arrangement is to create a new holding company for the Company, where
 such holding company would, following the scheme of arrangement, have substantially the same shareholders and proportionate shareholdings as those of the Company immediately prior to the scheme of arrangement, Rule 5.9 may, with the consent of the Board, apply. If it does



 

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	 	apply, an Award subject to a performance target will not Vest under this Rule 5.5.



	 	 
	5.6	The discretion of the Remuneration Committee



	 	 
	 	The Remuneration Committee will confirm as soon as practicable after the date of the court’s direction the minimum extent to which an Award which is subject to a performance target may Vest, to the extent that the performance target has been met up to the date the scheme of
 arrangement is sanctioned by the court. Subject to this, the Remuneration Committee may decide to take other factors into account, which it believes to be relevant in permitting the Award to Vest beyond the extent to which the performance target has been met.



	 	 
	5.7	Scheme of arrangement: Awards not subject to a performance target



	 	 
	 	If, before an Award which is not subject to a performance target has Vested, the court directs that a meeting of the holders of Shares should be convened under Section 425 of the Companies Act 1985 to consider a scheme of arrangement, that Award will Vest on the date the
 scheme of arrangement is sanctioned by the court (unless the Remuneration Committee has specified otherwise as an additional term or condition on which the Award was granted). If Rule 5.9 applies, however, that Award will not Vest under this Rule 5.7.



	 	 
	5.8	Voluntary winding-up



	 	 
	 	If there is a resolution for a member’s voluntary winding-up of the Company, the awards will Vest in full conditionally on the resolution being passed.



	 	 
	5.9	The exchange of Awards



	 	 
	 	If, before an Award has Vested, any company (the “Acquiring Company”):



	 	 	 
	 	5.9.1	obtains Control of the Company as a result of making a general offer to acquire:



	 	 	 	 
	 	 	(i)	the whole of the issued ordinary share capital of the Company which is made on condition that if it is satisfied the Acquiring Company will have Control of the Company, or



	 	 	 	 
	 	 	(ii)	all the shares in the Company which are of the same class as the Shares;



	 	 	 
	 	 	in either case ignoring any Shares which are already owned by it or a member of the same group of companies; or



 

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	 	5.9.2	obtains Control of the Company in pursuance of a compromise or arrangement sanctioned by the court under Section 425 of the Companies Act 1985; or



	 	 	 
	 	5.9.3	becomes bound or entitled to acquire Shares under Sections 428 to 430F of that Act



	 	 
	 	and the Acquiring Company has agreed that the outstanding Awards should continue, the Trustee will, within the Appropriate Period, take such action as is appropriate to acquire shares in the Acquiring Company. On this basis, Participants’ Awards (“Old Awards”) will become
 awards (“New Awards”) in respect of the shares acquired by the Trustee in respect of the Shares subject to the Old Awards. Each New Award will be equivalent to each Old Award before the change of Control. The New Awards will not be regarded as equivalent to the Old
 Awards unless:



	 	 	 
	 	(i)	they are governed by the Rules in effect immediately before the release of the Old Awards; and



	 	 	 
	 	(ii)	the total Market Value of the Shares the subject of the Old Awards is equal to the total Market Value immediately after the release of the shares the subject of the New Awards. The provisions of the Plan will, for this purpose, be construed as if the New Awards were
 granted under the Plan at the same time as the Old Awards.



	 	 
	 	References to Shares will, in relation to the New Awards, be taken as references to shares of the company whose shares are under New Awards. References to the Company shall be taken to be references to the company whose shares are under the New Awards, where
 appropriate. The New Awards will not Vest/lapse if Rule 5 applies following and in respect of the change of Control which led to the grant of the New Awards. The Trustee will agree to any amendment to the applicable employee share ownership trust to give effect to this Rule
 5.9. This Rule 5.9 shall only apply to Awards which are not subject to a performance target unless a scheme of arrangement occurs under Section 425 of the Companies Act 1985 and the purpose and effect of the scheme of arrangement is as set out in Rule 5.5, in which case, this
 Rule 5.9 shall apply to all Awards.



	 	 
	5.10	Cessation of Employment following a change of Control



	 	 
	 	If following the date of any change of Control of the Company, a Participant’s Employment:



	 	 	 
	 	5.10.1	is terminated by his employer for a reason other than gross misconduct; or



 

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	 	5.10.2	ceases following the Participant’s resignation because the nature of his duties are such that the Participant believes that he has lesser duties and responsibilities than before the change of Control



	 	 
	 	then, subject to the remainder of this Rule 5.10:



	 	 	 
	 	5.10.3	all his New Awards will Vest in full on the date he so ceases Employment; and/or



	 	 	 
	 	5.10.4	provided that if the Participant’s Employment so ceases within the period of 12 months following the date of the change of Control, if any of the Participant’s Awards Vested on the change of Control, the Participant will be entitled to receive an amount which is equal in
 value to the difference between the aggregate Market Value of the Shares he became entitled to when his Award Vested under Rule 5.1 or Rule 5.5 and the aggregate Market Value of the Shares he would have become entitled to had the Award Vested at that time as if the
 performance target had been met in full. For the purpose of this Rule 5.10.4, the Market Value used shall be the Market Value of a Share as at the date his Award Vested. Any amount payable under this Rule 5.10.4 shall be payable, subject to any deduction required by law
 to be made, within thirty days after the cessation of Employment concerned.



	 	 
	 	This Rule 5.10 shall not apply to a Participant’s Award if Rule 5.9 applied to that Award following a scheme of arrangement the purpose and effect of which is as set out in Rule 5.5.



	 	 
	6.	CEASING TO BE IN EMPLOYMENT DURING THE RESTRICTED PERIOD



	 	 
	6.1	Ceasing to be in Employment:
        generally



	 	 
	 	Unless otherwise provided in the Rules, if a Participant ceases to be in Employment before the end of the Restricted Period, all his Awards will lapse in full on the date he so ceases.



	 	 
	6.2	Ceasing to be in Employment because of death, ill health or disability



	 	 
	 	If a Participant ceases or is to cease to be in Employment before the end of the Restricted Period because of death, ill health or disability:



	 	 	 
	 	6.2.1	in respect of Awards the Restricted Period for which will end less than 12 months from the date the Participant so ceases Employment, those Awards will Vest on the date the Participant so ceases Employment; and



	 	 	 
	 	6.2.2	in respect of all other Awards, the Company may, at its discretion, recommend the Trustee to Vest, as soon as possible, all or part of any



 

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	 	 	Award and/or preserve all or part of any Award to the extent that it is recommended not to Vest immediately. The Award, to the extent that it is preserved, must be preserved until the end of the Restricted Period and subject to the Rules. To the extent that the Trustee has
 not exercised its discretion to Vest or preserve all or part of an Award, it will lapse on the date the Trustee confirms its decision.



	 	 
	6.3	Ceasing to be in Employment
        because of Redundancy or Retirement



	 	 
	 	If a Participant ceases or is to cease to be in Employment before the end of the Restricted Period because of his Redundancy or Retirement, all his Awards will lapse on the date he so ceases. The Company may, however, at its discretion, recommend the Trustee to Vest, as soon
 as possible, all or part of any Award and/or preserve all or part of any Award to the extent that it is recommended not to Vest immediately. The Award, to the extent that it is preserved, must be preserved until the end of the Restricted Period and subject to the Rules. To the extent
 that the Trustee has not exercised its discretion to Vest or preserve all or part of an Award, it will lapse on the date the Trustee confirms its decision.



	 	 
	6.4	Ceasing to be in Employment because of the sale of a company or business



	 	 
	 	If a Participant ceases to be in Employment before the end of the Restricted Period because the company in the Group which employs him ceases to be a Participating Company or an Associated Company or because of the transfer or sale of the undertaking (or part of the
 undertaking) in which he is employed to a person who is neither a Participating Company nor an Associated Company, all his Awards will lapse on the day he so ceases. The Company may, however, at its discretion, recommend the Trustee to Vest, as soon as possible, all or part
 of any Award and/or preserve all or part of any Award to the extent that it is recommended not to Vest immediately. The Award, to the extent that it is preserved, must be preserved until the end of the Restricted Period and subject to the Rules. To the extent that the Trustee has
 not exercised its discretion to Vest or preserve all or part of an Award, it will lapse on the date the Trustee confirms its decision.



	 	 
	6.5	Circumstances when a performance target will be treated as if it has been waived



	 	 
	 	If a Participant’s Awards Vest under Rule 6 early, any performance target which applies to Vesting will be treated as if it had been waived, unless the Company decides otherwise. If the Company does decide otherwise, Awards will, at the discretion of the Company, and when
 the relevant event in Rule 6 takes place, either lapse in part and/or to the extent that they do not lapse, will be preserved or Vest on whatever basis the Company decides.



 

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	6.6	Ceasing to be in Employment in other circumstances



	 	 
	 	If, before the end of the Restricted Period, a Participant gives or is given notice to leave Employment or ceases to be in Employment without any notice having been given in any circumstances other than the ones referred to in Rule 6.2, Rule 6.3 or Rule 6.4, his Award will lapse
 on that date, unless the Company decides otherwise or unless, (being female) she is entitled to exercise and subsequently does exercise the statutory right (or any corresponding contractual right) to resume Employment after an absence due to pregnancy.



	 	 
	6.7	Change of circumstances of Employment – deferral of Vesting and lapse provisions



	 	 
	 	If a Participant ceases to be in Employment before the end of the Restricted Period, but continues to provide services to the Group or becomes employed by an Associated Undertaking, the Company can decide that the Participant is deemed not to have ceased Employment and
 that his Awards will continue to be held subject to the Rules. Rules 5 to 6 will apply when he subsequently ceases to provide services to the Group, or when he ceases to be employed by an Associated Undertaking and is not re-employed by a member of the Group, or in such
 other circumstances as the Company may determine.



	 	 
	6.8	The effect of the lapsing of Awards



	 	 
	 	To the extent that a Participant’s Award lapses, he is not entitled to any Shares which are the subject of that Award.



	 	 
	7.	THE END OF THE RESTRICTED PERIOD



	 	 
	7.1	Where all or part
        of the Award is not subject to any performance target



	 	 
	 	As soon as reasonably practicable following the end of the Restricted Period and to the extent that an Award has not already Vested under Rule 5 or Rule 6, the Shares the subject of that part of the Award which is not subject to any performance target will be transferred to a
 Participant provided that he is still in Employment at the end of the Restricted Period and any additional terms and conditions to which the Award is subject are met.



	 	 
	7.2	Where all or part of the Award is subject to a performance target which has been met



	 	 
	 	The Company, in its absolute discretion, will decide to what extent the performance target relevant to all or part of each Award has been met as soon as practically possible. To the extent that it has been met at the end of the Restricted Period and to the extent that an Award has
 not already Vested under Rule 5 or Rule 6, the part of the Award subject to the performance target



 

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	 	will Vest as soon as practically possible following the Company’s decision. The relevant number of Shares the subject of that part of the Award will be transferred as soon as practicable to a Participant who up until the end of the Restricted Period:



	 	 	 
	 	7.2.1	was in Employment; or



	 	 	 
	 	7.2.2	was not in Employment but to whom the Shares can still be transferred because of Rule 6.



	 	 
	 	If the performance target is one which provides for Vesting in proportion to the extent that the performance target has been met, the part of the Award which is subject to the performance target will Vest in proportion to the extent that the performance target has, in the Company’s
 view, been met at the end of the Restricted Period.



	 	 
	7.3	If the performance target has not been met



	 	 
	 	If the Company decides that any performance target which applies to all or part of the Award has not been met at the end of the Restricted Period, the Company can decide to extend the Restricted Period. If it does make that decision, the Company will also decide whether:



	 	 	 
	 	7.3.1	all the Shares which are subject to that part of the Award to which the performance target applies continue to be held subject to the relevant Award until the end of the extended Restricted Period; or



	 	 	 
	 	7.3.2	some of those Shares continue to be so held, with the balance of the Shares being transferred as soon as possible to the relevant Participants.



	 	 
	 	If the performance target is not met at the end of the Restricted Period, extended under this Rule 7.3, that part of the Award to which the performance target applies will lapse and the Participants will not be entitled to any Shares the subject of that part of the Award. Participants
 will be notified in writing of any of these decisions.



	 	 
	8.	TRANSFER OF SHARES



	 	 
	8.1	When an Award has Vested



	 	 
	 	When an Award has Vested, the Participant will be entitled to Shares the subject of that Award. The number of Shares he is entitled to (which will be transferred to the Participant as soon as reasonably practicable) will depend on the extent to which any applicable performance
 target has been met and will be subject to any withholdings in accordance with Rule 8.2 that may be necessary on account of a Participant’s Tax Liability in respect of the Award.



 

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	8.2	Sale of Shares to
        satisfy a Participant’s Tax Liability



	 	 
	 	Unless the Participant makes arrangements (satisfactory to the Company) to provide payment in respect of his Tax Liability, the Company or any relevant company in the Group will make arrangements to sell on behalf of the Participant such number of Shares the subject of the
 Award which has Vested as is necessary to discharge the Tax Liability.



	 	 
	9.	AMENDING THE PLAN



	 	 
	9.1	The Company has discretion to amend the Rules



	 	 
	 	Subject to the rest of Rule 9, the Company can amend the Rules at any time. The Trustee will be notified of any amendment to the Rules.



	 	 
	9.2	Additional sections



	 	 
	 	The Company can adopt additional sections of the Rules applicable in any jurisdiction under which Awards may be subject to as additional and/or modified terms and conditions, having regard to any securities, exchange control or taxation laws, which may apply to the
 Participant, the Company, any Participating Company or Associated Company. Any additional sections must conform to the basic principles of the Plan.



	 	 
	9.3	No abrogation of existing rights



	 	 
	 	No amendment will be made under Rule 9.1 which would abrogate or materially affect adversely the existing rights of a Participant unless it is made with his written consent or by a resolution passed as if the Awards constituted a separate class of share capital, and the provisions
 of the Articles of Association of the Company and of the Companies Act 1985 relating to class meetings (with the necessary amendments) applied to that class.



	 	 
	9.4	Shareholder approval



	 	 
	 	No amendment to the advantage of Participants or Eligible Executives (except for an amendment which could be included in an additional section adopted under Rule 9.2) can be made to the provisions in the Rules (if any) relating to:



	 	 	 
	 	9.4.1	who can be a Participant or Eligible Executive; or



	 	 	 
	 	9.4.2	the basis for determining a Participant’s entitlement to and the terms of the Shares and any adjustment in the event of a Variation



	 	 
	 	without the approval by ordinary resolution of the Company in general meeting, except minor amendments to benefit the administration of the Plan, to take account of a change in legislation or to obtain or maintain favourable



 

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	 	tax, exchange control or regulatory treatment for Participants or Eligible Executives or for a member of the Group.



	 	 
	10.	GENERAL



	 	 
	10.1	Notices



	 	 
	 	Any notice or other communication in connection with the Plan (including, if permitted, Award certificates) can be given by electronic mail or by personal delivery or by post, (in the case of a company, to its registered office and in the case of an individual to his last known
 address) or by any other means which a Participating Company and its employees use to communicate with each other. Where a notice or other communication is given by first-class post, it shall be deemed to have been received 72 hours after it was put into the post properly
 addressed and stamped.



	 	 
	10.2	Documents sent to shareholders



	 	 
	 	Participants may, but are not entitled to, receive copies of any notice or document sent by the Company to the holders of Shares.



	 	 
	10.3	Replacement Award certificates



	 	 
	 	If any Award certificate is worn out, defaced or lost, it can be replaced on such evidence being provided as may be required.



	 	 
	10.4	Shares to cover Awards



	 	 
	 	Enough Shares will be available on maturity to satisfy all Awards granted.



	 	 
	10.5	Administration of the Plan



	 	 
	 	The Plan will be administered in a manner approved by the Company. No individual will have any authority in relation to the Plan unless that authority has been approved in accordance with the policy set by the Board. The Company’s decision on any matter concerning the Plan,
 including whether or not any performance targets in relation to an Award have been met, or the interpretation of the Rules, will be final and binding.



	 	 
	10.6	Costs of introducing and administering the Plan



	 	 
	 	The costs of introducing and administering the Plan will be borne by the Company. However, the Company can require any Participating Company to enter into such arrangement to reimburse the Company for any costs borne by the Company directly or indirectly in respect of
 such Participating Company’s officers or employees.



 

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	10.7	Termination of the Plan



	 	 
	 	The Plan will terminate at the end of the Plan Period or at any earlier time the Company shall decide. Termination of the Plan will not affect the subsisting Awards of Participants.



	 	 
	10.8	Rights of Participants and Eligible Employees



	 	 
	 	Participation in the Plan is not pensionable. Nothing in the Plan nor in any instrument executed pursuant to it will confer upon any person any right to continue in the employment of the Group, or will affect the right of the Company or any company in the Group to terminate the
 employment of any person without liability at any time with or without cause, or will impose upon the Group or the Trustee or the Board or their respective agents and employees any liability whatsoever (whether in contract, tort, or otherwise howsoever) in connection with:



	 	 	 
	 	10.8.1	the lapse of any Awards pursuant to the Rules;



	 	 	 
	 	10.8.2	the failure or refusal to exercise any discretion under the Rules; and/or



	 	 	 
	 	10.8.3	a Participant ceasing to be a person who has the status or relationship of an employee or executive director with the Company or any other company in the Group for any reason whatever as a result of the termination of the employment relationship with the Company or
 any other company in the Group.



	 	 
	10.9	Waiver of any rights



	 	 
	 	Any person who ceases to have the status or relationship of an employee or executive director with the Company or any other company in the Group for any reason as a result of dismissal (lawful or otherwise) shall not be entitled and shall be deemed irrevocably to have waived
 any entitlement by way of damages for dismissal or by way of compensation for loss of office or otherwise to any sum, damages, Shares or other benefits to compensate that person for the loss of any rights, benefits or expectations under any Award, the Plan or any instrument
 executed pursuant to it.



	 	 
	10.10	The benefit of Rule 10.8 and Rule 10.9



	 	 
	 	The benefit of Rule 10.8 and Rule 10.9 is given for the Company and/or the Trustee (where the Award was not granted by the Company), as appropriate for itself and as trustee and agent of the Company (if the benefit is given for the Trustee), and of all the Company’s
 Subsidiaries or any of its Associated Companies or Associated Undertakings. To the extent that the Company, any Subsidiary or Associated Company or Associated Undertaking of the Company is not party to the grant of an Award, the Company and/or the



 

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	 	Trustee, as appropriate, will hold the benefit of Rule 10.8 and Rule 10.9 on trust and as agent for each of them and the Company and/or the Trustee may, at their respective discretion, assign the benefit of this Rule 10.10 to any of them.



	 	 
	10.11	Awards are subject to the Rules



	 	 
	 	Awards are granted incorporating and subject to the Rules.



	 	 
	10.12	Articles of Association



	 	 
	 	Any Shares acquired on the Vesting of Awards are subject to the Articles of Association of the Company as amended from time to time.



	 	 
	10.13	Governing Law



	 	 
	 	The Rules are governed by and interpreted in accordance with the law of England. Each Participant, the Company and any other Participating Company or Associated Company submits to the jurisdiction of the English courts in relation to anything arising under the Plan. The
 Company may, in its absolute discretion, determine that another law may apply to the application of the Plan outside the United Kingdom.



 

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	mmO2
      RESTRICTED SHARE PLAN


	 
	APPENDIX I


	 
	U.S. SECTION


	 	 
	1.	This Appendix I constitutes the part of the Plan that will govern the grant of Awards to United States Participants (the “U.S. Awards”). It incorporates all the Rules as set forth above as modified in accordance with the provisions of this Appendix I).



	 	 
	2.	How U.S. Awards will be granted



	 	 
	 	All U.S. Awards will be evidenced by an instrument(s) in such form or forms as may from time to time be approved by the Company.



	 	 
	3.	Administration of the U.S. Section



	 	 
	 	The Company shall (i) administer the U.S. Section, (ii) establish from time to time such rules and regulations as it may deem appropriate for the proper administration of the U.S. Section and (iii) make such determinations under, and such interpretations of, and take such steps in
 connection with, the U.S. Section or U.S. Awards as it may deem necessary or advisable.



	 	 
	4.	Addition of consistent
        provisions: certain rights



	 	 
	 	Any U.S. Award may be subject to any other provision imposed by the Company that is consistent with the purpose and intent of this Appendix I. During the Restricted Period, a Participant may, in the sole authority and discretion of the Company, and subject to such terms,
 conditions and limitations as the Board may determine from time to time in its sole authority and discretion, have voting and dividend rights with respect to such Participant’s U.S. Award if a certificate relating to the underlying Shares or ADSs has been issued in the Participant’s
 name.



	 	 
	5.	Section 16 compliance



	 	 
	 	If any officer, director or shareholder of the Company receives a U.S. Award and therefore becomes subject to Section 16 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company shall take all appropriate action to ensure that such U.S.
 Awards under this Appendix I are exempt from Section 16(b) under the Exchange Act.



 

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	6.	Right to ADSs



	 	 
	 	The Company shall arrange for any U.S. Award to constitute a right to or with respect to ADSs rather than Shares, in which case references to “Shares” in the Plan shall be deemed to be reference to “ADSs”, as the context may require.



	 	 
	7.	U.S. Withholding Taxes



	 	 
	 	It shall be a condition to the obligation of the Company to deliver Shares or ADSs pursuant to any U.S. Award granted to a Participant under the Plan that the Participant pay to the Company (or the Subsidiary that employs the Participant) such amount as may be required by the
 Company or such Subsidiary for the purpose of satisfying any liability for any U.S. Federal, state or local taxes of any kind required to be withheld with respect to it. Any U.S. Award granted under the Plan may require the Company or permit the Participant of such Award to
 elect, in accordance with any applicable rules established by the Company, to withhold or to pay all or part of the amount of such withholding taxes in Shares or ADSs. Such election may be denied by the Company in its sole discretion, or may be made subject to certain
 conditions specified by the Company. Any payments made in cash under the Plan are the subject of all U.S. Federal, state or local taxes of any kind required to be withheld with respect to them.



	 	 
	8.	Securities Laws compliance



	 	 
	 	No Shares or ADSs may be issued or transferred in connection with a U.S. Award unless the Company shall have determined that such issuance, transfer or settlement is in compliance with or pursuant to an exemption from all applicable U.S. Federal and state securities laws.



	 	 
	9.	Certain Definitions



	 	 
	 	For the purposes of the U.S. Awards, the following terms shall have the following meanings, notwithstanding any contrary provisions in the Plan:



	 	 
	 	“Market Value” in relation to an ADS means an amount equal to half way between the high and low sales prices of ADSs recorded on the New York Stock Exchange on the applicable valuation date.



	 	 
	 	“Normal Retirement” means retiring from Employment on or reaching the age of 60.



	 	 
	10.	Amendments to certain provisions of the Rules



	 	 
	 	In Rule 6.6, the words “being female” shall be deleted and replaced by the words “he or she”.



	 	 
	 	In Rule 10.1, “72 hours” shall be deleted and replaced by “7 Dealing Days”.



 

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THE mmO2
  RESTRICTED SHARE PLAN

DEFINITIONS APPENDIX

	INTRODUCTION



The words and expressions used in the Rules which have capital letters have the meanings set out below. In the Rules:

	 	(i)	the headings are for the sake of convenience only and should be ignored when construing the Rules;



	 	 	 
	 	(ii)	reference to any statutory provisions are to those provisions as amended, extended or re-enacted from time to time, and include any subordinate legislation made under them; and



	 	 	 
	 	(iii)	unless the context requires otherwise, words in the singular include the plural and vice versa and words imputing either gender include both genders.



	 	 
	1.	DEFINITIONS



	 	 
	ADSs	American depositary shares each representing ten ordinary shares in the Company;



	 	 
	Appropriate Period	means:



	 	 	 
	 	(i)	in the case of Rule 5.9.1, any time before the general offer closes;



	 	 	 
	 	(ii)	in the case of Rule 5.9.2, any time before midday on the day immediately before the date for which the shareholders’ meeting is convened; and



	 	 	 
	 	(iii)	in the case of Rule 5.9.3, any time during which the acquiring company remains bound or entitled;



	 	 
	Associated Company	in relation to the Company:



	 	 	 
	 	(i)	any company which has Control of the Company; or



 

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	 	(ii)	any company (other than a Participating Company) which is under the Control of any company referred to in (i) above;



	 	 
	Associated Undertaking	a company or partnership in which the Company has an interest through a shareholding or otherwise;



	 	 
	Award	a contingent right to purchase (but not subscribe for) Shares under the Plan which has been granted or is proposed to be granted under the Plan;



	 	 
	Board	the board of directors for the time being of the Company or a duly authorised committee of it;



	 	 
	Close Period	a period when the members of the Board of the Company are prohibited from dealing in Shares under the Criminal Justice Act 1993, or the Financial Services Authority model code on transactions in securities, or under any other statute,
 regulation or similar code to which the Company is subject;



	 	 
	the Company	mmO2 plc (registered no. 4190833) which, for the purposes of the Rules, may act through the Board or through any two employees of the Group authorised to act in accordance with the policies established under Rule 1;



	 	 
	Control	has the meaning given by Section 840 of the Taxes Act;



	 	 
	Date of Grant	in relation to an Award, the date on which that Award is granted;



	 	 
	Dealing Day	a day on which the London Stock Exchange is open for transaction of business;



	 	 
	Definitions Appendix	this appendix which forms part of the Rules;



	 	 
	Eligible Executive	any person (including one who is a director of the Company) who, at the Date of Grant, is an employee of the Company or a Subsidiary;



	 	 
	Employment	employment as an employee of a Participating Company or an Associated Company;



 

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	Group	Participating Companies and Associated Companies;



	 	 
	London Stock Exchange	the London Stock Exchange Limited (or any successor body carrying on the business of the London Stock Exchange) or, where the context so requires, the New York Stock Exchange or any other exchange on which the Shares are listed or
 traded;



	 	 
	Market Value	in relation to a Share on any day, an amount equal to its middle market quotation (as derived from the Daily Official List of the London Stock Exchange) on, at the discretion of the Company, that day or the Dealing Day immediately preceding
 that day or the average middle market quotation of the three Dealing Days immediately preceding that day;



	 	 
	Participant	an Eligible Executive to whom an Award has been granted or, (where the context requires) his personal representatives;



	 	 
	Participating Company	the Company or any Subsidiary designated by the Board as a Participating Company;



	 	 
	Plan	the mmO2 Restricted Share Plan constituted by the Rules;



	 	 
	Plan Period	the period starting on the date on which the Plan is approved by the Company in general meeting and ending on the tenth anniversary of that date;



	 	 
	Redundancy	ceasing to be in Employment because the Company has decided that there is no longer any requirement or there is a reduced requirement for the Participant to perform the work which he previously performed;



	 	 
	Remuneration Committee	the duly authorised remuneration committee of the Board all of whose members are non-executive directors;



 

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	Restricted Period	in relation to an Award,
        the period or periods specified at the Date of Grant and at the end of
        which all or part of an Award may Vest, which will normally be a period
        of three years but may be more or less, at the discretion of the Company;



	 	 
	Retirement	normal retirement at or after any age at which the Participant is bound to retire under the terms of his contract of employment (or such other date as the Company may determine);



	 	 
	Rules	the rules of the Plan, including the Definitions Appendix, as amended from time to time;



	 	 
	Share	a fully paid ordinary share in the capital of the Company;



	 	 
	Subsidiary	a company which in relation to the Company is a company as defined by Section 736 of the Companies Act 1985;



	 	 
	Taxes Act	the Income and Corporation Taxes Act 1988;



	 	 
	Tax Liability	in relation to a Participant, the amount of all taxes and/or national insurance contributions or any other contribution which any company in the Group is required to, or may account for and on behalf of or, if permitted, in respect of that
 Participant’s Award;



	 	 
	Trustee	the trustee from time to time of an employee share ownership trust established by the Company as an employees’ share scheme as defined under section 743 Companies Act 1985;



	 	 
	Variation	means:



	 	 	 
	 	(i)	in relation to the equity share capital of the Company:



	 	 	 	 
	 	 	(a)	a capitalisation issue, an offer or invitation made by way of rights, a subdivision, a consolidation or reduction; or



	 	 	 	 
	 	 	(b)	any other variation; or



 

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	 	(ii)	a demerger by the Company of a business or Subsidiary;



	 	 
	 	which, would, in the opinion of the Company, justify an adjustment to any Award;



	 	 
	Vest, Vested or Vesting	in relation to an Award, the point at which a Participant becomes absolutely entitled to all or some of the Shares the subject of that Award.



 

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