Document:

gsm_Ex4_13

		
			Exhibit 4.13
		

		
			 
		

		
			EXECUTION VERSION
		

		
			21 JUNE 2016
		

		
			PEDRO LARREA PAGUAGA
		

		
			FERROGLOBE PLC
		

			
					
						 

				
	
					
						 

				
	
					
						 

				
	
					
						SERVICE AGREEMENT

				
	
					
						 

				

		
			
		

		
			

		 

 

		

		
			CONTENTS
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						CLAUSE

					
					
						PAGE

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						1.

					
					
						Term and Job Description

					
1
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						2.

					
					
						Duties

					
1
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						3.

					
					
						Salary

					
2
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						4.

					
					
						Bonus and Long-Term Incentive Arrangements

					
3
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						5.

					
					
						Taxation

					
4
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						6.

					
					
						Expenses

					
5
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						7.

					
					
						Pension

					
5
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						8.

					
					
						Insurance

					
5
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						9.

					
					
						Holiday

					
6
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						10.

					
					
						Sickness and Other Incapacity

					
6
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						11.

					
					
						Representations and Warranties

					
6
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						12.

					
					
						Other Interests

					
7
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						13.

					
					
						Share Dealing and Other Codes of Conduct

					
8
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						14.

					
					
						Intellectual Property

					
8
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						15.

					
					
						Disciplinary and Grievance Procedures

					
9
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						16.

					
					
						Termination

					
9
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						17.

					
					
						Resignation by the Employee for Good Reason

					
12
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						18.

					
					
						Malus and Clawback

					
13
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						19.

					
					
						Suspension and Gardening Leave

					
13
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						20.

					
					
						Restraint in Activities Of Employee and Confidentiality

					
14
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						21.

					
					
						Post-Termination Covenants

					
15
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						22.

					
					
						Executive’s  Position as Director

					
17
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						23.

					
					
						Waiver of Rights

					
17
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						24.

					
					
						Data Protection

					
17
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						25.

					
					
						Email and Internet Use

					
18
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						26.

					
					
						Counterparts

					
18
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						27.

					
					
						Contracts (Rights of Third Parties) Act 1999

					
18
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						28.

					
					
						Definitions

					
19
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						29.

					
					
						Miscellaneous

					
20
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SCHEDULE 1

					
22
				

		
			 
		

		
			
		

		
			

		 

 

		

		
			THIS AGREEMENT IS MADE ON 21 JUNE 2016
		

		
			BETWEEN
		

		
			(1)       FERROGLOBE PLC, a company with registered number 09425113, which has its registered office at Legalinx Ltd., One Fetter Lane, London, EC4A 1BR (the Company); and
		

		
			(2)        Pedro Larrea Paguaga (the Employee);
		

		
			IT IS AGREED as follows:
		

		
			1.         TERM AND JOB DESCRIPTION
		

		
			1.1.      The Employee shall be employed by the Company as Chief Executive Officer.
		

		
			1.2.      The Employment shall begin on the Effective Date.  For statutory purposes, there is no previous period of continuous employment.
		

		
			1.3.      Subject to clauses 1.4 and 16 below, the Employment will continue until terminated by:
		

		
			(a)        the Company giving the Employee 12 months’ written notice; or
		

		
			(b)        the Employee giving the Company 6 months’ written notice.
		

		
			1.4.      Notwithstanding clause 1.3(a) above, prior to the third anniversary of the Effective Date, the Company shall be required to give the Employee the following written notice:
		

		
			(a)        24 months’ written notice, if notice is given prior to the first anniversary of the Effective Date;
		

		
			(b)        21 months’ written notice, if notice is given between the first and second anniversaries of the Effective Date; and
		

		
			(c)        18 months’ written notice, if notice is given between the second and third anniversaries of the Effective Date.
		

		
			2.         DUTIES
		

		
			2.1.      During the Employment., the Employee will:
		

		
			(a)        diligently perform all such duties and exercise all such powers as are lawfully and properly assigned to him from time to time by the Board, whether such duties or powers relate to the Company or any other Group Company;
		

		
			(b)       comply with all Company rules, regulations, policies and procedures (including the Company’s code of business ethics) and those of any applicable Group Company from time to time in force;
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			(c)       comply with all directions lawfully and properly given to him by the Board;
		

		
			(d)       unless prevented by sickness, injury or other incapacity, devote the whole of his time, attention and abilities during his Working Hours to the business of the Company or any other Group Company for which he is required to perform duties;
		

		
			(e)       promptly provide the Board with all such information as it may require in connection with the business or affairs of the Company and of any other Group Company for which he is required to perform duties; and
		

		
			(f)        report to the Company and any applicable Group Company any matters of concern that come to his attention, or of which he is aware, in particular any acts of misconduct, dishonesty, breach of any of the Company or Group policies, including but not limited to the Code of Conduct or breach of any relevant regulatory rules committed, contemplated or discussed by any member of staff, contractor or other third party.
		

		
			2.2.      The Employee’s Working Hours shall be such hours as are required in the proper performance of his duties.
		

		
			2.3.      The Employee agrees, in accordance with Regulation 5 of the Working Time Regulations 1998 (the Regulations),  that the provisions of Regulation 4(1) do not apply to the Employee, and that the Employee shall give the Company three months’ notice in writing if he wishes Regulation 4(1) to apply to him.
		

		
			2.4.      The Employee’s normal place of work is the Company’s headquarters in central London.  The Company may from time to time reasonably require the Employee to base himself in other locations.  New York City, Miami, other similarly major cities on the East Coast of the United States, Madrid, and Barcelona shall be considered reasonable locations for the purpose of this clause.
		

		
			2.5.      The Employee agrees to travel and work (both within and outside the United Kingdom) as may be required for the proper performance of his duties under the Employment.
		

		
			3.         SALARY
		

		
			3.1.      The Employee’s initial Salary is £475,000 (four hundred and seventy-five thousand) (less any required deductions).  The Salary will be reviewed annually during the Employment, with the first review to take place in 2017 with any increase effective 1 January 2017 thereafter.  No Salary review will be undertaken after notice has been given by either party to terminate the Employment.  The Company is under no obligation to increase the Employee’s Salary following a Salary review, but will not decrease it.
		

		
			3.2.      The Employee’s Salary will accrue on a daily basis, and will be payable in arrears in equal monthly instalments.
		

		
			
		

		
			

		 

		

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			3.3.      The Employee’s Salary will be inclusive of all fees and other remuneration to which he may be or become entitled as an officer of the Company or of any other Group Company.
		

		
			3.4.      The Employee agrees that, pursuant to Part 11 of the Employment Rights Act 1996 the Company has the right to deduct from his Salary and/or bonus any amount owed to the Company or any Group Company by the Employee.
		

		
			3.5.      While the Employee’s normal place of work is outside of Spain, the Employee will be entitled to an annual expatriate benefits allowance equivalent to:
		

		
			(a)        20% of the Salary per annum, plus, provided the Employee’s normal place of work is located in London, an exceptional allowance of a further 20% of the Salary per annum for the first 3 years of the Employment, and
		

		
			(b)        20% of Salary per annum thereafter,
		

		
			provided that any such allowance shall be determined in a manner consistent with the Company’s Remuneration Policy.
		

		
			3.6.      The Company shall comply with all administrative requirements, including (subject to that being the correct legal position in relevant jurisdictions) the making of any necessary applications, to ensure that the Employee pays employee’s national insurance contributions in the United Kingdom and is not required to pay social security contributions in any other jurisdiction with respect to the Employment.
		

		
			4.         BONUS AND LONG-TERM INCENTIVE ARRANGEMENTS
		

		
			4.1.      The Company operates a long-term incentive plan, and the Employee is eligible to participate therein.  The term of vesting and the conditions of such vesting will be determined by the Company in a manner consistent with the Company’s Remuneration Policy and any such award will be governed by the rules of the relevant long-term incentive plan.  The 2016 Remuneration Policy establishes a long-term incentive award with a target level of vesting (Target LTIP) of 200% of Salary.  Any long-term incentive award will be non-pensionable.
		

		
			4.2.      The Employee is eligible for an annual bonus if objectives established by the Compensation Committee are met (Annual Bonus) in accordance with the Company’s Remuneration Policy.  The Compensation Committee will set the target annual bonus opportunity (Target Annual Bonus) and the maximum bonus opportunity (Maximum Annual Bonus) applicable to an Annual Bonus.  Under the 2016 Remuneration Policy, (i) the Target Annual Bonus for the Employee will normally be 100% of Salary; (ii) the Maximum Annual Bonus for the Employee is normally 200% of the Employee’s Target Annual Bonus; and (iii) in circumstances where there has been exceptional performance, the Maximum Annual Bonus for the Employee will be up to 500% of Salary.  Any bonus payment will be non-pensionable.
		

		
			
		

		
			

		 

		

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			4.3.      Notwithstanding clauses 4.1 and 4.2, reflecting the special nature of the challenges of integrating two businesses, achieving working capital savings, maximising free cashflow and achieving cost synergies as soon as possible, the Company’s Compensation Committee has decided to rebalance for the 2016 incentives.  The Target Annual Bonus will therefore be 200% of Salary for 2016, and the Maximum Annual Bonus will be 200% of the Employee’s Target Annual Bonus. For 2016, the Employee will be granted a reduced long-term incentive award with a Target LTIP of 100% of Salary.
		

		
			4.4.      In exceptional circumstances, and particularly in 2016 as set out above, the Compensation Committee may decide to change the weighting of the Target Annual Bonus and the long-term incentive plan benefits provided to the Employee.  In 2017 and 2018, provided that the market conditions remain similar and subject to the Company’s Remuneration Policy, it is the Company’s intention (without being legally bound) that there will be no material reduction to the level of the aggregate of Target Annual Bonus and the Target LTIP (based on face value of shares at grunt date) granted during each such financial year (Aggregate Incentive Awards).  Any changes to the level of Aggregate Incentive Awards applicable generally to the Company’s Tier I Executives and Tier 2 Executives will not be considered a material reduction for the purpose of this clause.
		

		
			5.         TAXATION
		

		
			5.1.      To the extent required by any applicable regulations, the Company shall make all necessary deductions or tax at source in respect of the Employee’s employment income and benefits in any applicable jurisdiction, including PAYE income tax and employee’s national insurance contributions in the United Kingdom.
		

		
			5.2.      Subject to the Employee providing full, correct and timely information to the Company, the Company shall apply any tax reliefs available to the Employee at source and shall cooperate with the Employee in making such applications to HM Revenue and Customs as may be required to obtain their approval to make adjustments in respect of overseas work day relief pursuant to section 690 of the Income Tax (Earnings and Pensions) Act 2003 or any other reliefs that may become available to the Employee in the future.
		

		
			5.3.      The Employee shall be entitled to direct the amount of payment of the Employee’s salary and cash benefits into two separate bank accounts as follows:
		

		
			(a)        into a UK bank account; and
		

		
			(b)        into a non-UK bank account with such sum to be paid in the currency (which the Employee may direct) equivalent of the sterling amount, based on the official exchange rate on the date of payment, and the Company will, in its discretion, bear administrative fees associated with such payment,
		

		
			provided that,
		

		
			(i)         unless until the Employee makes a direction, the entire earnings shall be paid into a UK bank account, and
		

		
			
		

		
			

		 

		

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			(ii)       the Company shall be under no obligation to comply with such a direction if the Company considers that the amount to be paid into the non-UK bank account would result in insufficient earnings to pay UK PAYE income tax, is otherwise not in compliance with applicable regulations, or the Compensation Committee by unanimity determines, based on the advice of its external independent advisers, that such payment into the non-UK bank account would materially prejudice the Company.
		

		
			6.         EXPENSES
		

		
			The Company will reimburse (or procure the reimbursement of) all out-of-pocket expenses properly and reasonably incurred by the Employee in the course of his Employment subject to production of receipts or other appropriate evidence of payment.
		

		
			7.         PENSION
		

		
			7.1.      Subject to clause 72 below, the Company will pay the Employee an annual allowance in lieu of a pension contribution on his behalf at a rate of 20% of his Salary from time to time.  The allowance will accrue on a daily basis and will be payable in arrears (less any required deductions) in equal monthly instalments with the Employee’s Salary.
		

		
			7.2.      The Employee acknowledges that the Company may have an obligation to auto enrol him into a pension scheme and agrees that to the extent such an obligation exists and he does not opt out of the pension scheme, the Company may reduce the amount payable to him pursuant to clause 7.1 above by an amount equal to the contributions it is required to make to the pension scheme.
		

		
			8.         INSURANCE
		

		
			During the Employment, subject to the Employee’s age or health not being such as to prevent cover being obtained without exceptional conditions or unusually high premiums, the Company will:
		

		
			(a)       pay for the benefit of the Employee, his Spouse and any dependent children (as determined in accordance with the rules of the applicable scheme) subscriptions to the Company’s private medical expenses insurance arrangements for the time being in force;
		

		
			(b)        pay for the benefit of the Employee subscriptions to the Company’s permanent health insurance arrangements for the time being in force; and
		

		
			(c)        pay for the benefit of the Employee subscriptions to the Company’s life assurance arrangements for the time being in force.
		

		
			For the avoidance of doubt, the Employee will be liable for any income tax and employee’s national insurance contributions payable in respect of the provision of these benefits.
		

		
			
		

		
			

		 

		

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			9.         HOLIDAY
		

		
			9.1.      The Employee is entitled to 25 working days’ paid holiday per calendar year during his Employment (plus bank and public holidays in England), to be taken at a time or times convenient to, and with prior approval from, the Company.  The right to paid holiday will accrue pro-rata during each calendar year of the Employment.
		

		
			9.2.      Subject to clause 9.3 the Employee has no entitlement to be paid in lieu of accrued but untaken holiday.
		

		
			9.3.      On termination of the Employment, the Employee’s entitlement to accrued holiday pay shall be calculated on a pro-rata basis (which calculation shall be made on the basis that each day of paid holiday is equivalent to 1/260 of the Employee’s Salary).  If the Employee has taken more working days’ paid holiday than his accrued entitlement, the Company is authorised to deduct the appropriate amount from his final Salary instalment (which deduction shall be made on the basis that each day of paid holiday is equivalent to 1/260 of the Employee’s Salary).
		

		
			10.       SICKNESS AND OTHER INCAPACITY
		

		
			10.1.    Subject to the Employee’s compliance with the Company’s policy on notification and certification of periods of absence from work, the Employee will continue to be paid his full Salary during any period of absence from work due to sickness, injury or other incapacity, up to a maximum of 26 weeks in aggregate in any period of 52 consecutive weeks.  Such payment will be inclusive of any statutory sick pay payable in accordance with applicable legislation in force at the time of absence.
		

		
			10.2.    The Employee will not be paid during any period of absence from work (other than due to holiday, sickness, injury or other incapacity) without the prior permission of the Board.
		

		
			10.3.    The Employee agrees that he will undergo a medical examination by a doctor appointed by the Company at any time (provided that the costs of ail such examinations are paid by the Company).  The Company will be entitled to receive a copy of any report produced in connection with all such examinations and to discuss the contents of the report with the doctor who produced it.
		

		
			11.       REPRESENTATIONS AND WARRANTIES
		

		
			11.1.    By entering into this Agreement the Employee represents, warrants and acknowledges to the Company that he is not subject to any contract of service or for the provision of services, any notice period or any restrictive covenant with a previous employer which would be breached by signing this Agreement and/or commencing his Employment with the Company and he is legally free from all agreements, arrangements or other restrictions seeking to restrict his right to compete with any person or to deal with or solicit clients or solicit, employ or engage employees of any person or in any way restricting him from entering into and performing the terms of this Agreement and he may join the Company to commence his duties on the Effective Date.
		

		
			
		

		
			

		 

		

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			12.       OTHER INTERESTS
		

		
			12.1.    The Company acknowledges that the Employee has business interests other than those of the Company and that the Employee has declared any conflicts that are apparent as of the Effective Date.  In the event that the Employee becomes aware of any conflicts of interest that may arise, he must disclose these to the Board together with any information or knowledge acquired or gained by him in any manner whatsoever whilst he continues in office which may be of value or which may be to the detriment of the Company or any of its subsidiary undertakings.
		

		
			12.2.    The Board confirms that it has given its consent to the continuation of the Employee’s material business interests (including current directorships) notified to the Board as of the Effective Date as detailed in Schedule 1.
		

		
			12.3.    Subject to clauses 12.4 and 12.5, during the Employment the Employee will not (without the Board’s prior written consent) be directly or indirectly engaged, concerned or interested in any other business activity, trade or occupation.
		

		
			12.4.    Notwithstanding clause 12.3, the Employee may, subject to his duty as a director (if applicable), hold:
		

		
			(a)        an investment by way of shares or other securities in a business which is similar to or competitive with the Company of not more than 3% of the total issued share capital of any company (whether or not it is listed or dealt in on a recognised stock exchange) provided he has obtained prior written approval from the Board; and
		

		
			(b)       investments in companies and executive directorships in unquoted companies which do not carry on a business similar to or competitive with any business for the time being carried on by the Company without restriction provided only that (i) such holdings and directorships are notified to the Board, (ii) there is, in the reasonable opinion of the Board, no conflict of interest between the Company and the Employee, and (iii) such holdings and directorships (including, but without limitation, in respect of their time commitment) do not, in the reasonable opinion of the Board, interfere with the Employment.  Subject always to the Employee’s duty as a director (if applicable), the obligation to notify the Board does not apply (x) if the Employee’s investment in any one business does not exceed £100,000 and the Employee has no active participation or involvement in the business of the entity in which the investment is made; or (y) if the Employee’s investment is in a mutual fund or any other form of undertakings for collective investment where the Employee has no active participation or involvement in the investment decisions (in this case, without any maximum amount).
		

		
			12.5.    Notwithstanding clause 12.3 above, during the Employment, the Employee may accept positions as a non-executive director (but, for the avoidance of doubt, not as a non-executive chairman) of another publicly listed company provided (i) he has obtained prior written approval from the Board, which shall not be unreasonably withheld, (ii) there is, in the reasonable opinion of the Board, no conflict of interest between the Company with
		

		
			
		

		
			

		 

		

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			respect to the proposed role, and (iii) such positions do not, in the reasonable opinion of the Board, interfere with the Employment.  Depending on the Employee’s other external business activities at the time, the Board will normally consider two such non-executive director roles in other publicly listed companies to be reasonable.  For the avoidance of doubt, (a) the Employee is not entitled to accept a position as an executive director in any company that is not a Group Company (except for those within the scope of clause 12.4(b) above), and (b) a role as advisor to any business shall be considered a non-executive director role of a publicly listed company for the purpose of this clause.
		

		
			13.       SHARE DEALING AND OTHER CODES OF CONDUCT
		

		
			The Employee will comply with all codes of conduct adopted from time to time by the Board and with all applicable rules and regulations of relevant regulatory bodies, including (a) Nasdaq Stock Market or any other exchanges on which the Company’s securities may be listed and (b) any applicable regulations on dealings in securities.  The Employee acknowledges that compliance may require him to take appropriate steps to ensure that his connected persons (as defined in section 966(2) of the Financial Services and Markets Act 2000) also comply with any such codes of conduct and regulations.
		

		
			14.       INTELLECTUAL PROPERTY
		

		
			It shall be part of the Employee’s normal duties or other duties specifically assigned to him (whether or not during normal working hours and whether or not performed at the Employee’s normal place of work) at all times to consider in what manner and by what new methods or devices the products, services, processes, equipment or systems of the Company with which he is concerned or for which he is responsible might be improved and might, as part of such duties, originate designs (whether registrable or not) or patentable work or other work in which copyright, database rights or trade mark rights (together Employee Works) may subsist.  Accordingly:
		

		
			(a)        the Employee shall forthwith disclose full details of any Employee Works in confidence to the Company and shall regard himself in relation to any Employee Works as a trustee for the Company;
		

		
			(b)       all intellectual property rights in any Employee Works shall vest absolutely in the Company which shall be entitled, so far as the law permits, to the exclusive use thereof;
		

		
			(c)        notwithstanding (b) above, the Employee assigns to the Company all right, title and interest, present and future, anywhere in the world, in copyright and in any other intellectual property rights in respect of all Employee Works written, originated, conceived or made by the Employee (except only those Employee Works written, originated, conceived or made by the Employee wholly outside his normal working hours hereunder and wholly unconnected with the Employment) during the continuance of the Employment;
		

		
			
		

		
			

		 

		

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			(d)       the Employee hereby waives all moral rights as author under the Copyright Designs and Patents Act 1988 or any equivalent laws in respect of any Employee Works; and
		

		
			(e)       the Employee agrees and undertakes that at any time during or after the termination of the Employment he will execute such deeds or documents and do all such acts and things as the Company may deem necessary or desirable to substantiate its rights in respect of the matters referred to above including for the purpose of obtaining letters patent or other privileges in all such countries as the Company may require.
		

		
			15.       DISCIPLINARY AND GRIEVANCE PROCEDURES
		

		
			15.1.    If the Employee is dissatisfied with any disciplinary decision taken in relation to him he may appeal in writing to the Chairman of the Board within 7 days of that decision.  The Chairman’s decision shall be final.
		

		
			15.2.    If the Employee has any grievance in relation to the Employment he may raise it in writing with the Chairman of the Board whose decision shall be final.
		

		
			16.       TERMINATION
		

		
			16.1.    Either party may terminate the Employment in accordance with clause 1.3 or clause 1.4, as applicable.
		

		
			16.2.    In lieu of giving notice to terminate the Employee’s employment or at any time during any notice period under clause 1.3 or clause 1.4, as applicable (following service of notice either by the Employee or the Company), the Company may in its absolute discretion (but is not obliged to) terminate the Employee’s employment with immediate effect and, subject to clause 15.5, make a payment in lieu of notice (the Payment in Lieu) within 28 days of the Termination Date of an amount equal to:
		

		
			(a)       the basic Salary which the Employee would have been entitled to receive under this Agreement during the notice period referred to at clause 13 or clause 1.4, as applicable if notice had been given on the date that the Employment was terminated with immediate effect (or, if notice has already been given, during the remainder of the notice period) (the Unserved Notice Period); and
		

		
			(b)       the pension allowance the Employee would have been entitled to receive in the Unserved Notice Period.  For the avoidance of doubt, where the Unserved Notice Period covers multiple years then the Employee will be entitled to a payment in lieu of a pension allowance applicable for the year in which the Termination Date occurs;
		

		
			(c)       the bonus(es) the Employee would have been entitled to receive in the Unserved Notice Period, calculated, in each case, by way of an average of Annual Bonuses awarded (including the value of any deferred portion thereof on the date of the award) to the Employee by the Company in respect of the last three completed
		

		
			
		

		
			

		 

		

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			financial years immediately prior to the Termination Date (provided that (i) if the Termination Date occurs before the third anniversary of the Effective Date, the average shall mean the amount of the Annual Bonuses awarded since the Effective Date divided by the number of Annual Bonuses awarded, and (ii) if during the period between the Effective Date and the Termination Date, the Company has not awarded any Annual Bonus (other than as a result of failure to satisfy the applicable performance conditions), the average shall be determined by reference to the mid-point between the threshold opportunity (at which the lowest level of Annual Bonus is payable) and the Target Annual Bonus, and by reference to the Salary on the Termination Date).  In all cases, the average amount calculated under this sub-clause shall be proportionately adjusted for the length of the Unserved Notice Period; and
		

		
			(d)       the cost to the Company of the benefits consisting of (i) those provided pursuant to clause 8 the Employee would have been entitled to receive during the Unserved Notice Period, and (ii) if an allowance under clause 3.5 is being paid at the time of the Termination Date, an annual expatriate benefits allowance equivalent to 20% of Salary pro-rated for the length of the Unserved Notice Period but not exceeding six months.
		

		
			For the avoidance of doubt, the Employee will remain bound by the post-termination covenants set out in clause 21.
		

		
			16.3.    In the event the Employment is terminated by resignation by the Employee for Good Reason (as defined in clause 17), the Company will make an immediate payment of a liquidated sum to the Employee of an amount equal to the Payment in Lieu (described in clause 16.2) that would be applicable at that time.  The liquidated sum shall be subject to such deductions as the Company may be required to make and shall be made in full and final settlement of any claims (other than statutory claims) the Employee may have against the Company or any Group Company arising from the employment or the termination thereof.  In consideration for this payment, the Employee agrees to remain bound by the post-termination covenants set out in clause 21.
		

		
			16.4.    For the avoidance of doubt:
		

		
			(a)       the Payment in Lieu or the liquidated sum will not include any amount in respect of any other amount or benefit envisaged under this Agreement; and
		

		
			(b)       the Employee will not be entitled to receive any payment in addition to the Payment in Lieu or the liquidated sum in respect of any holiday entitlement that would have accrued during the period for which the Payment in Lieu or the liquidated sum is made.
		

		
			16.5.    The Company may determine in its absolute discretion that up to one-third of the Payment in Lieu under clause 16.2 or the liquidated sum under clause 16.3 will be payable in equal monthly instalments on the normal payroll dates over a 12 month period following the Termination Date.
		

		
			
		

		
			

		 

		

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			16.6.    The Payment in Lieu shall be subject to such deductions as may be required by law and shall be made in full and final settlement of any claims (other than statutory claims) the Employee may have against the Company or any Group Company arising from the employment or the termination thereof.
		

		
			16.7.    The Company may also terminate the Employment immediately and with no liability to make any further payment to the Employee (other than in respect of amounts accrued due at the date of termination) for Cause.  Cause means if the Employee:
		

		
			(a)       commits any repeated breach (provided that the Company has notified the Employee of such breach and if capable of cure, the breach has not been cured within 30 days following receipt of the notice) or any serious breach of any of his obligations under this Agreement or his Employment;
		

		
			(b)       provides materially false or misleading information about himself or his previous employment history or omits to divulge material factors relevant to his suitability for the Employment;
		

		
			(c)        is guilty of serious misconduct which, in the Board’s reasonable opinion, has damaged or may damage the business or affairs of the Company or any other Group Company;
		

		
			(d)        is guilty of conduct which, in the Board’s reasonable opinion, brings or is likely to bring himself, the Company or any other Group Company into disrepute;
		

		
			(e)        is charged with a criminal offence (other than a road traffic offence not subject to a custodial sentence);
		

		
			(f)        is disqualified from acting as a director of a company by order of a competent court;
		

		
			(g)       is declared bankrupt or makes any arrangement with or for the benefit of his creditors, has an interim order made against him under Part VIII of the Insolvency Act or has an administration order made against him under the County Courts Act 1984; or
		

		
			(h)       resigns his directorship of the Company or any Group Company (other than at the explicit request of the Board).
		

		
			This clause shall not restrict any other right the Company may have (whether at common law or otherwise) to terminate the Employment summarily.
		

		
			Any delay by the Company in exercising its rights under this clause shall not constitute a waiver of those rights.
		

		
			16.8.    The Company may terminate the Employment even when, as a result, the Employee would or may forfeit any entitlement to benefit under the permanent health insurance arrangements referred to in clause 8 or to sick pay under clause 10, save that the Company
		

		
			
		

		
			

		 

		

			11

		

 

		

		
			will not terminate the Employment solely on grounds of the Employee’s ill health where such an entitlement or benefit would be forfeited.
		

		
			16.9.    On termination of the Employment for whatever reason (and whether in breach of contract or otherwise) the Employee will:
		

		
			(a)        immediately deliver to the Company all books, documents, papers, computer records, computer data, credit cards, and any other property relating to the business of or belonging to the Company or any other Group Company which is in his possession or under his control.  The Employee is not entitled to retain copies or reproductions of any documents, papers or computer records relating to the business of or belonging to the Company or any other Group Company;
		

		
			(b)       immediately resign from any office he holds with the Company or any other Group Company (and from any related trusteeships) without any compensation for loss of office.  Should the Employee fail to do so he hereby irrevocably authorises the Company to appoint some person in his name and on his behalf to sign any documents and do anything to give effect to his resignation from office; and
		

		
			(c)       immediately pay to the Company or, as the case may be, any other Group Company all outstanding loans or other amounts due or owed to the Company or any Group Company.  The Employee confirms that, should he fail to do so, the Company is to be treated as authorised to deduct from any amounts due or owed to the Employee by the Company (or any other Group Company) a sum equal to such amounts.
		

		
			16.10.  The Employee will not at any time after termination of the Employment represent himself as being in any way concerned with or interested in the business of, or employed by, the Company or any other Group Company.
		

		
			16.11.  Any long-term incentive awards, including deferred bonus awards, held by the Employee under the Company’s long-term incentive plan on the Termination Date will be treated in accordance with the applicable rules of the plan.
		

		
			17.       RESIGNATION BY THE EMPLOYEE FOR GOOD REASON
		

		
			17.1.    For the avoidance of doubt, the Employee may resign from the Employment at any time under any of the following circumstances (each a Good Reason):
		

		
			(a)       the Company’s material failure to comply with the clauses of this Agreement, provided that the Employee has submitted a written notice of such failure to the Board and the failure is not cured within 90 days following receipt of the notice;
		

		
			(b)       the overall compensation (including Salary, Aggregate Incentive Awards, pension and other benefits) granted to the Employee by the Company in a given financial year is materially reduced from the preceding financial year, unless such reduction (i) is applied generally to the Company’s Tier 1 and Tier 2 Executives and (ii) is a result of substantial changes in the market conditions affecting the Company.  For the avoidance of doubt, both (i) and (ii) need to be met;
		

		
			
		

		
			

		 

		

			12

		

 

		

		
			(c)       his duties or responsibilities are substantially altered;
		

		
			(d)       as a result of long-term sickness he is unable to carry out his duties and his entitlements under clause 10 have ceased;
		

		
			(e)        he ceases to report to the Board, the Executive Chairman or Executive Vice-Chairman of the Company (or of any holding company of the Company, if applicable); or
		

		
			(f)        the Company’s headquarters are relocated outside the United Kingdom (and not to New York City, Miami, similarly major cities on the East Coast of the United States, Madrid or Barcelona).
		

		
			18.       MALUS AND CLAWBACK
		

		
			18.1.    The Employee acknowledges that in order to comply with UK corporate governance standards the discretionary bonus arrangements and share incentive plans operated by the Company from time to time (the Plans) include, or may in the future include, provisions which in certain circumstances allow for the reduction of amounts payable to the Employee and/or for the Employee to repay to the Company all or part of any amounts received by him pursuant to those Plans.  The Employee hereby agrees to be bound by such provisions of the Plans both during and following the Employment and, without prejudice to clause 3.4, acknowledges the right of the Company to deduct from any amount payable to him any amount he owes to the Company or any Group Company pursuant to the Plans.
		

		
			19.       SUSPENSION AND GARDENING LEAVE
		

		
			19.1.    Where notice of termination has been served by either party whether in accordance with clause 1.3 or otherwise, the Company shall be under no obligation to provide work for or assign any duties to the Employee for the whole or any part of the relevant notice period (“Gardening Leave”) and may require him:
		

		
			(a)        not to attend any premises of the Company or any other Group Company;
		

		
			(b)        to resign with immediate effect from any offices he holds with the Company or any other Group Company (and any related trusteeships);
		

		
			(c)        to refrain from business contact with any customers, clients or employees of the Company or any Group Company;
		

		
			(d)        to take any holiday which has accrued under clause 9 during any period of suspension under this clause 19.1;
		

		
			(e)        to deliver promptly to the Company all papers, Confidential Information and property relating to the business of the Company or any Group Company which is in his possession or under his control (including, for the avoidance of doubt, any shares held by him as nominee for any member of the Group);
		

		
			
		

		
			

		 

		

			13

		

 

		

		
			(f)        not to compete with the Company or any Group company; and/or
		

		
			(g)       not to do any act or thing or make or cause to be made any statement reasonably likely to damage the business or reputation of the Company or any Group Company and the Employee must use all reasonable efforts to ensure that his Spouse does not do any such act or thing or make or cause to be made any such statements.
		

		
			19.2.    For the avoidance of doubt, the Employee’s entitlement to the annual bonus (clause 4) shall continue during any period of Gardening Leave.  To the extent that the Employee is required not to attend work or otherwise carry out his Duties during any period of Gardening Leave, the Company agrees that his Annual Bonus entitlements shall not be adversely affected and he shall receive such sums as he would have received had he remained at work and/or performing his duties calculated by way of an average of the last three years’ bonus awards (or an average across the Employee’s length of service, if lower than 3 years).
		

		
			19.3.    The provisions of clause 12.1 shall remain in full force and effect during any period of suspension under clause 19.1.  The Employee will also continue to be bound by duties of good faith and fidelity to the Company and remain available to perform such duties and/or exercise such powers, authorities and discretions (if any) when called upon by the Company to do so during any period of suspension under clause 19.1.
		

		
			Any suspension under clause 19.1 shall be on run Salary and benefits (save that the Employee shall not be entitled to earn or be paid any bonus during any period of suspension).
		

		
			19.4.    The Company may suspend the Employee from the Employment during any period in which the Company is carrying out a disciplinary investigation into any alleged acts or defaults of the Employee.  Such suspension shall be on full Salary and benefits.
		

		
			20.       RESTRAINT IN ACTIVITIES OF EMPLOYEE AND CONFIDENTIALITY
		

		
			The Employee will keep secret and will not at any time (whether during the Employment or thereafter) use for his own or another’s advantage, or reveal to any person, firm, company or organisation and shall use his best endeavours to prevent the publication or disclosure of any Confidential Information or information which the Employee knew or ought reasonably to have known to be confidential, concerning the business or affairs of the Company or any Group Company or any of its or their customers.
		

		
			The restrictions in this clause shall not apply:
		

		
			(a)        to any disclosure of information which is already in the public domain otherwise than by breach of this Agreement;
		

		
			(b)       to any disclosure of information which was known to, or in the possession of, the Employee prior to his receipt of such information from the Company or any Group Company whenever so received;
		

		
			
		

		
			

		 

		

			14

		

 

		

		
			(c)        to any disclosure of information which has been conceived or generated by the Employee independently of any information or materials received or acquired by the Employee from the Company or any Group Company;
		

		
			(d)       to any disclosure or use authorised by the Board or required by the Employment or by any applicable laws or regulations, including, without limitation, to any disclosure required for patent purposes provided that the Employee promptly notifies the Company when any such disclosure requirement arises to enable the Company to take such action as it deems necessary, including, without limitation, to seek an appropriate protective order and/or make known to the appropriate government or regulatory authority or court the proprietary nature of the Confidential Information and make any applicable claim of confidentiality with respect hereto;
		

		
			(e)        so as to prevent the Employee from using his own personal skill, experience and knowledge in any business in which he may be lawfully engaged after the Employment is ended; or
		

		
			(f)        to prevent the Employee making a protected disclosure within the meaning of section 43A of the Employment Rights Act 1996.
		

		
			21.       POST-TERMINATION COVENANTS
		

		
			21.1.    In order to protect the confidential information, trade secrets and business connections of the Company and any Group Company to which the Employee has access as a result the Employment, the Employee covenants with the Company (for itself and as trustee and agent for each other Group Company) that he shall not, whether directly or indirectly, on his own behalf or on behalf of or in conjunction with any other person, firm, company or other entity:
		

		
			(a)        for the period of (subject to clause 21.2 below) 12 months following the Termination Date, solicit or entice away or endeavour to solicit or entice away from the Company or any Group Company any person, firm, company or other entity who is, or was, in the period of 12 months immediately prior to the Termination Date, a client of the Company or any Group Company with whom the Employee had business dealings during the course of the Employment in that period.  Nothing in this clause 21.1(a) shall prohibit the seeking or doing of business not in direct or indirect competition with the business of the Company or any Group Company;
		

		
			(b)       for the period of (subject to clause 21.2 below) 12 months following the Termination Date, have any business dealings with any person, firm, company or other entity who is, or was, in the period of 12 months immediately prior to the Termination Date, a client of the Company or any Group Company with whom the Employee had business dealings during the course of the Employment in that period.  Nothing In this clause 21.1(b) shall prohibit the seeking or doing of business not in direct or indirect competition with the business of the Company or any Group Company;
		

		
			
		

		
			

		 

		

			15

		

 

		

		
			(c)       for the period of (subject to clause 21.2 below) 12 months following the Termination Date, solicit or entice away or endeavour to solicit or entice away any individual who is employed or engaged by the Company or any Group Company as a director or in a managerial or technical capacity and with whom the Employee had business dealings during the course of the Employment in the 12 month period immediately prior to the Termination Date;
		

		
			(d)       for the period of (subject to clause 21.2 below) 12 months following the Termination Date, carry on, set up, be employed, engaged or Interested in a business anywhere in the United Kingdom, United States of America, or such other country] in which a Major Division operates as at the Termination Date, which is or is about to be in competition with the business of the Company or any Group Company as at the Termination Date with which the Employee was actively involved (including in an oversight capacity as a director of the Company) during the 12 month period immediately prior to the Termination Date.  A Major Division means a division or business carried on as at the Termination Date by the Company or any Group Company which accounts for at least 20% of the Group’s revenues or 20% or the Group’s profits and with which the Employee was actively involved during the six month period to the Termination Date.  The provisions of this clause 21.1(d) shall not, at any time following the Termination Date, prevent the Employee from holding shares or other capital not amounting to more than 3% of the total issued share capital of any company whether listed on a recognised stock exchange or not and, in addition, shall not prohibit the seeking or doing of business not in direct or indirect competition with the business of the Company or any Group Company.
		

		
			21.2.    The period during which the restrictions referred to in clauses 21.1(a) (b), (c) and (d) inclusive shall apply following the Termination Date shall be reduced by the amount of time during which, if at all, the Company suspends the Employee under the provisions of clause 19.1.
		

		
			21.3.    The Employee agrees that if, during either the Employment or the period of the restrictions set out in 21.1(a), (b), (c) and (d) inclusive (subject to the provisions of clause 21.2), he receives an offer of employment or engagement, he will provide a copy of clause 21 to the offeror as soon as is reasonably practicable after receiving the offer and will inform the Company of the identity of the offeror as soon as possible after the offer is accepted.
		

		
			21.4.    The Employee warrants that the covenants contained in this clause are reasonable and necessary to protect the Company and any Group Company legitimate business interests.
		

		
			21.5.    Each of the restrictions in this clause is intended to be separate and severable.  If any of the restrictions shall be held to be void but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective.
		

		
			
		

		
			

		 

		

			16

		

 

		

		
			21.6.    The Employee will, at the request and expense of the Company, enter into a separate agreement with any Group Company that the Company may require under the terms of which he will agree to be bound by restrictions corresponding to those contained in clauses 21.1(a) (b), (c) and (d) inclusive (or such as may be appropriate in the circumstances).
		

		
			22.       EXECUTIVE’S POSITION AS DIRECTOR
		

		
			22.1.    The Executive’s duties as a director of the Company or any other Group Company, as applicable, are subject to the Articles of Association of the relevant company for the time being.
		

		
			23.       WAIVER OF RIGHTS
		

		
			23.1.    If the Employment is terminated by either party and the Employee is offered re-employment by the Company (or employment with another Group Company) on terms no less favourable in all material respects than the terms of the Employment under this Agreement, the Employee shall have no claim against the Company in respect of such termination.
		

		
			24.       DATA PROTECTION
		

		
			24.1.    The Employee consents to the Company and any Group Company processing data relating to him at any time (whether before, during or after the Employment) for the following purposes:
		

		
			(a)        performing its obligations under this Agreement (including remuneration, payroll, pension, insurance and other benefits, tax and social security (including national insurance) obligations;
		

		
			(b)       the legitimate interests of the Company and any Group Company including any sickness policy, working time policy, investigating acts or defaults (or alleged or suspected acts or defaults) of the Employee, security, management forecasting or planning and negotiations with the Employee;
		

		
			(c)        processing in connection with any merger, sale or acquisition of a company or business in which the Company or any Group Company is involved or any transfer of any business in which the Employee performs his duties; and
		

		
			(d)       transferring data to countries outside the European Economic Area for the purposes of maintaining comprehensive records and conducting analyses of the Group-wide employee population, in particular in the United States of America.
		

		
			24.2.    The Employee explicitly consents to the Company and any Group Company processing sensitive personal data (within the meaning of the Data Protection Act 1998) at any time (whether before, during or after the Employment) for the following purposes:
		

		
			
		

		
			

		 

		

			17

		

 

		

		
			(a)       where the sensitive personal data relates to the Employee’s health, any processing in connection with the operation of the Company’s (or any Group Company’s) sickness policy or any relevant pension scheme or monitoring absence;
		

		
			(b)       where the sensitive personal data relates to an offence committed, or allegedly committed, by the Employee or any related proceedings, processing for the purpose of disciplinary investigation and/or action by the Company or any Group Company;
		

		
			(c)       for all sensitive personal data, any processing in connection with any merger, sale or acquisition of a company or business in which the Company or any Group Company is involved or any transfer of any business in which the Employee performs his duties; and
		

		
			(d)       for all sensitive personal data, any processing in the legitimate interests of the Company or any Group Company.
		

		
			25.       EMAIL AND INTERNET USE
		

		
			25.1.    In accordance with the Company Policy and within the bounds of the law, the Company reserves the right to monitor the Employee’s electronic communications on a regular basis (including during any notice period, if applicable) and to monitor and record logging and traffic information as well as actual content (including the content of personal email and internet sites visited) in the Company’s legitimate business interest, for example security or disciplinary reasons.  All documents, communications and other files created, sent or received on email or through the internet or Intranet are the Company’s property.
		

		
			25.2.    Upon request by the Company, the Employee must give the Company access to his Company PC, laptop, Blackberry or other electronic device provided by the Company.  Failure to comply with such a request will be regarded as a serious breach by the Employee and may result in disciplinary action being taken against him, including dismissal without notice or pay in lieu of notice.
		

		
			26.       COUNTERPARTS
		

		
			This Agreement may be executed in any number of counterparts, and by each party on separate counterparts.  Each counterpart is an original, but all counterparts shall together constitute one and the same instrument.  Delivery of an executed counterpart signature page or this agreement by e-mail or fax shall be as effective as delivery of a manually executed counterpart of this agreement.  In relation to each counterpart, upon confirmation by or on behalf of the signatory that the signatory authorises the attachment of such counterpart signature page to the final text of this agreement, such counterpart signature page shall take effect together with such final text as a complete authoritative counterpart.
		

		
			27.       CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
		

		
			A person who is not a party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.
		

		
			
		

		
			

		 

		

			18

		

 

		

		
			28.       DEFINITIONS
		

		
			In this Agreement the following expressions have the following meanings:
		

		
			2016 Remuneration Policy means the Remuneration Policy that is subject to approval by the Company’s shareholders at the 2016 Annual General Meeting;
		

		
			Board means the board of directors of the Company or a duly constituted committee of the board of directors;
		

		
			Compensation Committee means a compensation committee of the Board;
		

		
			Civil Partner has the same meaning as in the Civil Partnerships Act 2004;
		

		
			Confidential Information means any information relating to the business, customers, transactions, processes, products, know-how, secrets or affairs of the Company, or any Group Company received or acquired by the Employee in pursuance of his duties under this Agreement or any information which is specified as confidential by the Company or a Group Company.  Without prejudice to the pregoing generality; Confidential Information also applies to Information concerning:
		

		
			(a)       the markets, customers and potential markets and customers of the Company or any Group Company;
		

		
			(b)       the pricing policy, costs of products and services to the Company or any Group Company;
		

		
			(c)       the profits turnover, profit margins, business expectations, budgets, business plans or any other similar financial information of the Company or any Group Company;
		

		
			(d)       technical data or know-how relating to the business carried on by the Company or any Group Company;
		

		
			(e)       research projects of the Company or any Group Company; and
		

		
			(f)        administrative, managerial, employment or other internal policies of the Company or any Group Company or the relations of the Company or any Group Company with customers, suppliers, competitors, the business community or the general public.
		

		
			Effective Date means 1 January 2016;
		

		
			Employment means the Employee’s employment in accordance with the terms and conditions of this Agreement;
		

		
			Group Company means the Company, any holding company and any subsidiary of the Company or any holding company (as defined in the Companies Act 2006) and Group shall be defined accordingly;
		

		
			
		

		
			

		 

		

			19

		

 

		

		
			Remuneration Policy means the remuneration policy of the Company most recently approved by shareholders in accordance with section 439A of the Companies Act 2006;
		

		
			Salary means the salary referred to in clause 3.1 as increased from time to time;
		

		
			Spouse means the person to whom the Employee is married and shall include a Civil Partner.  For the avoidance of doubt, references to ‘marry’,  ‘married’ and ‘marriage’ throughout shall be deemed to include a registered Civil Partnership and entering into or being in a registered Civil Partnership;
		

		
			Termination Date means the date of termination of the Employment howsoever caused (including, without limitation, termination by the Company which is in rcpudiatory breach of this Agreement);
		

		
			Tier 1 Executives means executive directors and chief executive officer (if not a director) of the Company;
		

		
			Tier 2 Executives means executive officers, including chief financial officer and chief legal officer, and deputy executive officers of the Company (including, for the avoidance of doubt, the deputy chief executive officer of the Company); and
		

		
			Working Hours has the meaning given to it by clause 2.2.
		

		
			29.       MISCELLANEOUS
		

		
			29.1.    This Agreement, together with any other documents referred to in this Agreement, constitutes the entire agreement and understanding between the parties, and supersedes all other agreements both oral and in writing between the Company and the Employee (other than those expressly referred to herein).  The Employee acknowledges that he has not entered into this Agreement in reliance upon any representation, warranty or undertaking which is not set out in this Agreement or expressly referred to in it as forming part of the Employee’s contract of employment.
		

		
			29.2.    The Employee represents and warrants to the Company that he will not by reason of entering into the Employment, or by performing any duties under this Agreement, be in breach of any terms of employment with a third party whether express or implied or of any other obligation binding on him.
		

		
			29.3.    Any notice to be given under this Agreement to the Employee may be served by being handed to him personally or by being sent by recorded delivery first class post to him at his usual or last known address; and any notice to be given to the Company may be served by being left at or by being sent by recorded delivery first class post to its registered office for the time being.  Any notice served by post shall be deemed to have been served on the day (excluding Sundays and public and bank holidays) next following the date of posting and in proving such service it shall be sufficient proof that the envelope containing the notice was properly addressed and posted as a prepaid letter by recorded delivery first class post.
		

		
			
		

		
			

		 

		

			20

		

 

		

		
			29.4.    Any reference in this Agreement to an Act of Parliament shall be deemed to include any statutory modification or re-enactment thereof.
		

		
			29.5.    This Agreement is governed by, and shall be construed in accordance with, the laws of England.  The Courts of England shall have exclusive jurisdiction in relation to all disputes arising out of or in connection with this Agreement.
		

			
					
						SIGNED as a DEED and

				
	
					
						DELIVERED by

				
	
					
						/S/ PEDRO LARREA PAGUAGA

				
	
					
						 

				
	
					
						 

				
	
					
						in the presence of

				
	
					
						Name:  /s/ Clara Cerdan Molina

				
	
					
						 

				
	
					
						 

				
	
					
						SIGNED for and on behalf of

				
	
					
						FERROGLOBE PLC  /s/Javier Monzon, Chairman, Compensation Committee

				

		
			 
		

		
			 
		

		
			

		 

		

			21

		

 

		

		
			SCHEDULE 1
		

		
			Schedule of Employee’s Material Business Interests
		

		
			and Current Directorships as of Effective Date
		

		
			Consented by the Board
		

		
			None
		

		 

		

			22gsm_Ex4_14

		

			Exhibit 4.14

		

		
			Ferroglobe PLC
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						FERROGLOBE PLC

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						EQUITY INCENTIVE PLAN

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			Adopted by the board of the Company on 29 May 2016
		

		
			Approved by shareholders of the Company on 29 June 2016
		

		
			 
		

		
			The Plan is a discretionary benefit offered by Ferroglobe PLC for the benefit of selected employees of Ferroglobe PLC and members of its group.  Its main purpose is to increase the interest of the employees in Ferroglobe PLC’s long term business goals and performance through share ownership.  The Plan is an incentive for the employees' future performance and commitment to the goals of Ferroglobe PLC.
		

		
			Any Shares or cash received under the Plan and any gains obtained under the Plan are not part of salary for any purpose except to any extent required by statute.
		

		
			The remuneration committee of the board of Ferroglobe PLC shall have the right to decide, in its sole discretion, whether or not awards will be granted and to which employees those awards will be granted.
		

		
			The detailed rules of the Plan are set out overleaf.
		

		
			 
		

		
			 
		

		
			

		 

		

			

		

 

		

			 

		

		

		
			 
		

		
			CONTENTS
		

			
					
						Rule

					
					
						Page

				
	
					
						 

					
					
						 

				
	
					
						1.  DEFINITIONS AND INTERPRETATION

					
					
						- 1 -

				
	
					
						2.  ELIGIBILITY

					
					
						- 3 -

				
	
					
						3.  GRANT OF AWARDS

					
					
						- 3 -

				
	
					
						4.  LIMITS

					
					
						- 6 -

				
	
					
						5.  VESTING OF AWARDS

					
					
						- 7 -

				
	
					
						6.  CONSEQUENCES OF VESTING

					
					
						- 8 -

				
	
					
						7.  EXERCISE OF OPTIONS

					
					
						- 9 -

				
	
					
						8.  CASH ALTERNATIVE

					
					
						- 10 -

				
	
					
						9.  LAPSE OF AWARDS

					
					
						- 11 -

				
	
					
						10.  LEAVERS

					
					
						- 11 -

				
	
					
						11.  TAKEOVERS AND OTHER CORPORATE EVENTS

					
					
						- 13 -

				
	
					
						12.  ADJUSTMENT OF AWARDS

					
					
						- 15 -

				
	
					
						13.  RECOVERY AND WITHHOLDING

					
					
						- 16 -

				
	
					
						14.  ALTERATIONS

					
					
						- 18 -

				
	
					
						15.  MISCELLANEOUS

					
					
						- 19 -

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			 
		

		
			1.         DEFINITIONS AND INTERPRETATION
		

		
			1.1       In the Plan, unless the context otherwise requires:
		

		
			"Award" means a Conditional Award or an Option and in each case (other than as noted below) designated as one of the following for the purposes of the Plan as determined by the Committee on or prior to the grant of the Award:
		

		
			(a)       a "Deferred Share Award"  – a Conditional Award or an Option with no Performance Conditions;
		

		
			(b)       a "Deferred Share Bonus Award"  – a Conditional Award or an Option with no Performance Conditions and related to a deferral of annual bonus;
		

		
			(c)       a "Performance Share Award"  – a Conditional Award or an Option with Performance Conditions; or
		

		
			(d)       a "Market Value Option Award"  – an Option with an Option Price set by reference to the market value of Shares at the time of the grant of the Option and granted with or without Performance Conditions;
		

		
			"Board"  means the board of directors of the Company or a duly authorised committee of the Board or a duly authorised person;
		

		
			"Bonus" means a bonus payable under a discretionary bonus arrangement operated by a Participating Company;
		

		
			“Cause” shall have the meaning set out in the relevant employee or executive director’s employment or service agreement;
		

		
			"Compensation Committee" means the compensation committee of the Board or, on and after the occurrence of a corporate event described in Rule 11 (Takeovers and other corporate events), the compensation committee of the Board as constituted immediately before such event occurs;
		

		
			"Company" means Ferroglobe PLC (registered in England and Wales with registered number09425113);
		

		
			"Conditional Award" means a conditional right to acquire Shares under the Plan subject to the terms applicable to such Award;
		

		
			"Control" means control within the meaning of section 995 of the Income Tax Act 2007;
		

		
			"Dividend Equivalent" means a benefit calculated by reference to dividends paid on Shares as described in Rule 3.5;
		

		
			"Early Vesting Date" means either:
		

		
			(a)       the later of:
		

		
			(i)       the date of cessation of employment or office of a Participant in the circumstances referred to in Rule 10.1(Good leavers); and
		

		
			(ii)      early determination of any Performance Condition relating to such cessation; or
		

		
			(b)      the date of the relevant event in Rule 11.1 (General offers) or Rule 11.2 (Schemes of arrangement and winding up) or the date of Vesting referred to in Rule 11.3 (Demergers and similar events);
		

		
			
		

		
			

		 

		

			-  1  -

		

 

		

			 

		

		

		
			 
		

		
			"Exercise Period" means the period referred to in Rule 7.1 during which an Option may be exercised;
		

		
			“Good Reason” shall have the meaning set out in the relevant employee or executive director’s employment or service agreement;
		

		
			"Grant Date" means the date on which an Award is granted;
		

		
			"Group Member" means:
		

		
			(c)       a Participating Company or a body corporate which is the Company's holding company (within the meaning of section 1159 of the Companies Act 2006) or a Subsidiary of the Company's holding company;
		

		
			(d)       a body corporate which is a subsidiary undertaking (within the meaning of section 1162 of the Companies Act 2006) of a body corporate within paragraph (a) above and has been designated by the Board for this purpose; and
		

		
			(e)       any other body corporate in relation to which a body corporate within paragraph (a) or (b) above is able (whether directly or indirectly) to exercise 20% or more of its equity voting rights and has been designated by the Board for this purpose;
		

		
			"ITEPA" means the Income Tax (Earnings and Pensions) Act 2003;
		

		
			"Net Vested Shares" means the Vested Shares acquired or received by a Participant on or following the Vesting of a Conditional Award, less: (a) a number of Shares that have an aggregate market value on the date of Vesting (in the case of Conditional Awards) or exercise (in the case of Options) equal to the Participant’s Tax Liability due and arising on the Vesting or exercise of the Award,  or (b) if the Vested Shares are sold to satisfy the Participant's Tax Liability due on the Vesting or exercise of an Award, such number of Vested Shares so sold;
		

		
			"Normal Vesting Date" means the date specified by the Committee for an Award for such purposes pursuant to Rule 3.3 (Structure and type of Award);
		

		
			"Normal Vesting Period" means the period of time commencing at the start of the Grant Date and expiring at the end of the Normal Vesting Date;
		

		
			"Option" means a conditional right to acquire Shares under the Plan subject to the terms applicable to such Award;
		

		
			"Option Price" means:
		

		
			(f)        other than in the case of an Market Value Option Award, nil or such nominal amount, if any, payable on the exercise of such Option per Share acquired as specified by the Committee on or prior to the grant of the Option;
		

		
			(g)       in the case of a Market Value Option Award, such amount payable on the exercise of such Option per Share acquired at such time which unless the Committee specifies otherwise shall be set by reference to the meaning of market value as described in Rule 4.3;
		

		
			"Participant" means a person who holds an Award including his personal representatives, as permitted under applicable law;
		

		
			"Participating Company" means the Company or any Subsidiary of the Company;
		

		
			
		

		
			

		 

		

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			"Performance Condition" means a condition or conditions related to performance against one or more measures which is specified by the Committee under Rule 3.1 (Terms of grant);
		

		
			"Plan" means the Ferroglobe PLC Equity Incentive Plan as amended from time to time;
		

		
			"Recovery and Withholding" means an obligation to repay the amounts referred to in Rule 13.4;
		

		
			"Rule" means a rule of the Plan;
		

		
			"Shares" means fully paid ordinary shares in the capital of the Company;
		

		
			"Subsidiary" means a body corporate which is a subsidiary (within the meaning of section 1159 of the Companies Act 2006);
		

		
			"Tax Liability" means (i) any amount of tax or social security contributions (or local equivalent) for which a Participant would or may be liable and for which any Group Member or former Group Member would or may be obliged to (or would or may suffer a disadvantage if it were not to) account to any relevant authority and (ii) any related Group Member’s liability to social security contributions (or local equivalent)if such a liability is specified as an additional condition for the relevant Award on or prior to its Grant Date under Rule 3.1(b) (Terms of grant));
		

		
			"Vest" means:
		

		
			(h)       in relation to an Option, it becoming exercisable;
		

		
			(i)        in relation to a Conditional Award, a Participant becoming entitled to have Shares transferred to him (or his nominee) subject to the Rules;  and Vesting shall be construed accordingly;
		

		
			"Vested Shares" means those Shares in respect of which an Award Vests.
		

		
			1.2      Any reference in the Plan to any enactment includes a reference to that enactment as from time to time modified, extended or re-enacted.
		

		
			1.3      Where the context admits, a reference to the singular includes the plural and a reference to the male includes the female.
		

		
			1.4      Expressions in italics, headings and any footnotes are for guidance only and do not form part of the Plan.
		

		
			2.        ELIGIBILITY
		

		
			An individual is eligible to be granted an Award only if he is an employee (including an executive director) of a Participating Company.
		

		
			3.        GRANT OF AWARDS
		

		
			3.1      Terms of grant
		

		
			Subject to Rule 3.7 (Timing of grant),  Rule 3.8 (Approvals and consents) and Rule 4 (Limits), the Committee may resolve to grant an Award on:
		

		
			(a)       the terms set out in the Plan; and
		

		
			
		

		
			

		 

		

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			(b)       such additional terms if any (whether a Performance Condition and/or any other terms) as the Committee may specify to any person who is eligible to be granted an Award under Rule 2 (Eligibility).
		

		
			3.2      Vesting of Deferred Share Bonus Award is not subject to Performance Conditions. The Committee may determine whether or not other Awards are subject to Performance Conditions, provided that at least two-thirds (or such other proportion as may be set under the Company’s executive directors’ remuneration policy from time to time) of the total Awards granted to an executive director in any financial year shall be subject to Performance Conditions.
		

		
			3.3      Structure and type of Award
		

		
			On or before an Award’s Grant Date, the Committee shall specify:
		

		
			(a)       whether the Award is as a Conditional Award or an Option and in each case (other than as stated below) shall designate such Award as one of the following for the purposes of the Plan:
		

		
			(i)       a Deferred Share Award;
		

		
			(ii)      a Deferred Share Bonus Award;
		

		
			(iii)     a Performance Share Award; or
		

		
			(iv)     a  Market Value Option Award (only relevant in relation to Options);
		

		
			(b)       in the case of an Option its Option Price (if any); and
		

		
			(c)       the Award’s Normal Vesting Date;
		

		
			Awards shall be set with a Normal Vesting Date of the third anniversary of the Award’s Grant Date unless the Committee determines otherwise for the relevant Award on or prior to its Grant Date save that no earlier Normal Vesting Date may be specified in relation any such Awards granted to executive directors of the Company unless the Committee determines otherwise in accordance with prevailing shareholder approved remuneration policy as relevant.
		

		
			3.4      Method of grant
		

		
			An Award shall be granted by deed executed by the Company or in such other manner as considered appropriate and binding.
		

		
			3.5      Dividend Equivalent
		

		
			The Committee may decide on or before the grant of an Award (or exceptionally at any time prior to the Vesting of the Award) that a Participant (or his nominee) shall be entitled to receive a benefit determined by reference to the value of the dividends that would have been paid on the Vested Shares in respect of dividend payment dates occurring during the period between the Grant Date and the date of Vesting.
		

		
			The Committee shall decide the basis on which the value of such dividends shall be calculated.  The Committee may also decide at this time whether the Dividend Equivalent shall be provided to the Participant in the form of cash and/or Shares.  The Dividend Equivalent shall be provided in accordance with Rule 6.3 (Delivery of Dividend Equivalent).
		

		
			
		

		
			

		 

		

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			3.6      Type of Shares
		

		
			Unless specified to the contrary by the Committee on the Grant Date, an Award may be satisfied:
		

		
			(a)       by the issue of new Shares; and/or
		

		
			(b)       by the transfer of treasury Shares; and/or
		

		
			(c)       by the transfer of Shares (other than the transfer of treasury Shares).
		

		
			An employee benefit trust may be used in connection with the Plan to satisfy an Award.
		

		
			The Committee may decide to change the way in which it is intended that an Award granted as an Option or a Conditional Award may be satisfied after it has been granted, having regard to the provisions of Rule 4 (Limits).
		

		
			3.7      Timing of grant
		

		
			Subject to Rule 3.8 (Approvals and consents), an Award may only be granted:
		

		
			(a)       within the period of 6 weeks beginning with the date shareholders approve the Plan in general meeting; and/or
		

		
			(b)       within the period of 6 weeks beginning with the dealing day after the date on which the Company announces its results for any period; and/or
		

		
			(c)       at any other time when the Committee considers that circumstances are sufficiently exceptional to justify its grant
		

		
			but an Award may not be granted after the period of 10 years beginning with the date of the Board’s adoption of the Plan.
		

		
			3.8      Approvals and consents
		

		
			The grant of any Award shall be subject to obtaining any approval or consent required under any relevant share dealing code of the Company or any other relevant regulation or enactment.
		

		
			3.9      Non-transferability and bankruptcy
		

		
			An Award granted to any person:
		

		
			(a)       shall not be transferred, assigned, charged or otherwise disposed of (except on his death to his personal representatives) and shall lapse immediately on any attempt to do so; and
		

		
			(b)       may, at the Committee’s discretion, lapse immediately if he is declared bankrupt.
		

		
			3.10    Awards to US Participants
		

		
			Awards (other than Market Value Option Awards) granted to Participants who are subject to income taxation in the United States ("US Participants") shall be subject to following additional terms:
		

		
			(a)       Such Awards shall be structured as Conditional Awards;
		

		
			(b)       Each such Award is intended to be either (i) exempt from Section 409A of the US Internal Revenue Code of 1986, as amended, and the regulations and guidance issued thereunder
		

		
			

		 

		

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			(collectively, "Section 409A") upon reliance of the short term deferral exception provided thereunder or (ii) compliant with Section 409A.
		

		
			(c)       To the extent a Conditional Award Vests, and is intended to be exempt from 409A as a short term deferral, then no Shares (or other asset) shall be delivered under the Plan in respect of such Award (including in respect of any Dividend Equivalent) later than the 15th of March following the calendar year in which such Award so Vests (i.e. the calendar year in which such award is no longer subject to a "substantial risk of forfeiture" for the purposes of Section 409A).
		

		
			(d)       It is intended that each payment in any series of payments under such Awards shall be deemed to be a “separate payment” for purposes of Section 409A.
		

		
			(e)       To the extent that any Award is subject to Section 409A, then any such Award that is payable upon “cessation of employment” shall be (i) payable only if such cessation is also a separation from service within the meaning of Section 409A, and (ii) subject to delay in payment for a period of six months following such separation from service, if the Participant is a “specified employee” within the meaning of Section 409A.
		

		
			4.        LIMITS
		

		
			4.1      10% per cent. in 10 years limit on New Issue and Treasury Shares
		

		
			An Award shall not be granted in any calendar year if, at the time of its proposed Grant Date, it would cause the number of new Shares and/or treasury Shares ‘allocated’ in the period of 10 calendar years ending with that calendar year under the Plan and under any other employee share plan (i.e. all types of employee share plans: discretionary, all-employee or otherwise) adopted by the Company to exceed such number as represents 10 per cent. of the ordinary share capital of the Company in issue at that time.
		

		
			Allocated shall be determined on such basis as the Committee reasonably determines and for the avoidance of doubt shall not count lapsed Awards and/or those settled with market Shares (not being treasury) or cash.
		

		
			4.2      5% per cent. in 10 years limit on New Issue and Treasury Shares
		

		
			An Award shall not be granted in any calendar year if, at the time of its proposed Grant Date, it would cause the number of new Shares and/or treasury Shares ‘allocated’ in the period of 10 calendar years ending with that calendar year under the Plan and under any other executive share plan (i.e. only discretionary share plans and not including all-employee plans) adopted by the Company to exceed such number as represents 5 per cent. of the ordinary share capital of the Company in issue at that time.
		

		
			Allocated shall be determined on such basis as the Committee reasonably determines and for the avoidance of doubt shall not count lapsed Awards and/or those settled with market Shares (not being treasury) or cash.
		

		
			4.3      Individual limit
		

		
			The maximum total market value of Shares (calculated as set out in this Rule) over which Awards, in aggregate may be granted to any employee during any financial year of the Company is 1,000% of his salary (as defined in this Rule).
		

		
			For the purpose of this Rule 4.3:
		

		
			
		

		
			

		 

		

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			(i)        an employee’s  salary shall be taken to be his base salary (excluding benefits in kind), expressed as an annual rate payable by the Participating Companies to him on the Grant Date (or such earlier date as the Committee shall determine).  Where a payment of salary is made in a currency other than US$, the payment shall be treated as equal to the equivalent amount of sterling determined by using any rate of exchange which the Committee may reasonably select; and
		

		
			(ii)       unless the Committee determines otherwise the market value of the Shares over which an Award is to be granted shall be taken to be an amount equal to the closing price of such Shares on the dealing day before the Grant Date or, if the Committee so determines (other than in the case of Market Value Option Awards granted to US Participants), the average of the closing prices during a period determined by the Committee not exceeding the period of 5 dealing days ending with the dealing day before the Grant Date provided such dealing day(s) do not fall within any period when dealings in Shares are prohibited under the Company’s share dealing code.
		

		
			4.4      Effect of limits
		

		
			Any Award shall be limited and take effect so that the limits in this Rule 4 are complied with.
		

		
			5.        VESTING OF AWARDS
		

		
			5.1      Timing of Vesting
		

		
			Subject to Rule 5.3 (Restrictions on Vesting: regulatory and tax issues), an Award shall Vest on the later of:
		

		
			(a)       if any Performance Condition and any other condition has been imposed on the Vesting of the Award, the date on which the Committee determines whether or not such Performance Condition or other condition has been wholly or partly satisfied; and
		

		
			(b)       the Award’s Normal Vesting Date
		

		
			except where earlier Vesting occurs on an Early Vesting Date under Rule 10 (Leavers) or Rule 11 (Takeovers and other corporate events).
		

		
			5.2      Extent of Vesting
		

		
			An Award shall only Vest to the extent:
		

		
			(a)       that any Performance Condition is satisfied on the Normal Vesting Date or, if appropriate, the Early Vesting Date;
		

		
			(b)       that any other term imposed on the Vesting of the Award permits;
		

		
			(c)       in relation to Vesting before the Normal Vesting Date, in accordance with Rules 10.6 and 11.5 (Reduction in number of Vested Shares); and
		

		
			(d)       any operation of the Recovery and Withholding provisions permit.
		

		
			Where, under Rule 10 (Leavers) or Rule 11 (Takeovers and other corporate events), an Award would (subject to the satisfaction of any Performance Condition) Vest before the end of the full period over which performance would be measured under any Performance Condition then, unless provided to the contrary by the Performance Condition, the extent to which the
		

		
			
		

		
			

		 

		

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			Performance Condition has been satisfied in such circumstances shall be determined by the Committee on such reasonable basis as it decides.
		

		
			5.3      Restrictions on Vesting: regulatory and tax issues
		

		
			An Award shall not Vest unless and until the following conditions are satisfied:
		

		
			(a)       the Vesting of the Award, and the issue or transfer of Shares after such Vesting, would be lawful in the relevant jurisdictions for that Award and in compliance with any relevant share dealing code of the Company and any other relevant regulation or enactment;
		

		
			(b)       if, on the Vesting of the Award, a Tax Liability would arise by virtue of such Vesting and the Board decides that such Tax Liability shall not be satisfied by the sale of Shares pursuant to Rule 5.4 (Payment of Tax Liability) then the Participant must have entered into arrangements acceptable to the Board that the relevant Group Member will receive the amount of such Tax Liability;  and
		

		
			(c)       where the Committee requires, the Participant has entered into, or agreed to enter into, a valid election under Part 7 of ITEPA (Employment income: elections to disapply tax charge on restricted securities) or an election under Section 83(b) of the Internal Revenue Code in the case of US Participants or any similar arrangement in any overseas jurisdiction.
		

		
			For the purposes of this Rule 5.3, references to Group Member include any former Group Member.
		

		
			5.4      Tax liability before Vesting
		

		
			If a Participant will, or is likely to, incur any Tax Liability before the Vesting of an Award then that Participant must enter into arrangements acceptable to any relevant Group Member to ensure that it receives the amount of such Tax Liability.  If no such arrangement is made then the Participant shall be deemed to have authorised the Company to sell or procure the sale of sufficient of the Shares subject to his Award on his behalf to ensure that the relevant Group Member receives the amount required to discharge the Tax Liability and the number of Shares subject to his Award shall be reduced accordingly.
		

		
			For the purposes of this Rule 5.4, references to Group Member include any former Group Member.
		

		
			5.5      Payment of Tax Liability
		

		
			The Participant authorises the Company to sell or procure the sale of sufficient Vested Shares on or following the Vesting of his Award on his behalf to ensure that any relevant Group Member or former Group Member receives the amount required to discharge any Tax Liability which arises on Vesting except to the extent that the Board decides that all or part of that Tax Liability shall be funded in a different manner.
		

		
			6.        CONSEQUENCES OF VESTING
		

		
			6.1      Options
		

		
			An Option shall, subject to Rule 7.1 (Restrictions on the exercise of an Option: regulatory and tax issues), be exercisable in respect of Vested Shares during the period commencing on the date on which an Option Vests and expiring on the eve of the 10th anniversary of the Award’s Grant
		

		
			
		

		
			

		 

		

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			Date (or such shorter period specified by the Committee on or prior to grant of the Award) subject to it lapsing earlier under Rule 10 (Leavers) or Rule 11 (Takeovers and other corporate events).
		

		
			If an Option is not exercised during the last 30 days of the Exercise Period because of any regulatory restrictions referred to in Rule 7.1(a), the Committee may extend the period during which the Option (other than a Market Value Option Award held by a US Participant) may be exercised so as to permit the Option to be exercised as soon as those restrictions cease to apply for such limited period as the Committee determines appropriate.
		

		
			6.2      Conditional Awards
		

		
			On or as soon as reasonably practicable after the Vesting of a Conditional Award, the Board shall, subject to Rule 5.5 (Payment of Tax Liability) and any arrangement made under Rule 5.3(b)(Restrictions on Vesting: regulatory and tax issues), transfer or procure the transfer of the Vested Shares to the Participant (or a nominee for him).
		

		
			6.3      Delivery of dividend equivalent
		

		
			If the Committee decided under Rule 3.5 (Treatment of dividends) that a Participant would be entitled to the Dividend Equivalent in relation to Shares under their Award but did not decide at that time whether the Dividend Equivalent would be provided in the form of cash and/or Shares, then the Committee shall make such decision on or before the Vesting of the Award.
		

		
			The Committee, acting fairly and reasonably, may decide to exclude the value of all or part of a special dividend or any other dividend from the amount of the Dividend Equivalent.
		

		
			The provision of the Dividend Equivalent to the Participant shall be made as soon as practicable after the issue or transfer of Vested Shares (or such earlier time no earlier than the related Award’s Vesting Date) and:
		

		
			(a)       in the case of a cash payment, shall be subject to such deductions (on account of any Tax Liability or similar liabilities) as may be required by law or as the Board may reasonably consider to be necessary or desirable; or
		

		
			(b)       in the case of a provision of Shares, Rule 5.3 (Restrictions on Vesting: regulatory and tax issues) and Rule 5.5 (Payment of Tax Liability) shall apply as if such provision was the Vesting of an Award.
		

		
			7.        EXERCISE OF OPTIONS
		

		
			7.1      Restrictions on the exercise of an Option: regulatory and tax issues
		

		
			An Option which has Vested may not be exercised unless the following conditions are satisfied:
		

		
			(a)       the exercise of the Option and the issue or transfer of Shares after such exercise would be lawful in all relevant jurisdictions and in compliance with any relevant share dealing code of the Company and any other relevant regulation or enactment;
		

		
			(b)       if, on the exercise of the Option, a Tax Liability would arise by virtue of such exercise and the Board decides that such Tax Liability shall not be satisfied by the sale of Shares pursuant to Rule 7.4 (Payment of Tax Liability) then the Participant must have entered into arrangements acceptable to the Board that the relevant Group Member shall receive the amount of such Tax Liability; and
		

		
			
		

		
			

		 

		

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			(c)       where the Committee requires, the Participant has entered into, or agreed to enter into, a valid election under Part 7 of ITEPA (Employment income: elections to disapply tax charge on restricted securities) or any similar arrangement in any overseas jurisdiction.
		

		
			For the purposes of this Rule 7.1, references to Group Member include any former Group Member.
		

		
			7.2      Exercise in whole or part
		

		
			An Option may be exercised in whole or part in respect of no more than its aggregate number of Vested Shares.
		

		
			7.3      Method of exercise
		

		
			The exercise of any Option shall be effected in the form and manner prescribed by the Board.  Unless the Committee, acting fairly and reasonably determines otherwise, any notice of exercise shall, subject to Rule 7.1 (Restrictions on the exercise of an Option: regulatory and tax issues), take effect only when the Company receives it, together with payment of any relevant Option Price (or, if the Board so permits, an undertaking to pay that amount).
		

		
			7.4      Payment of Tax Liability
		

		
			The Participant authorises the Company to sell or procure the sale of sufficient Vested Shares on or following the exercise of his Option on his behalf to ensure that any relevant Group Member receives the amount required to discharge any Tax Liability which arises on such exercise except to the extent that the Board decides that all or part of the Tax Liability shall be funded in a different manner.
		

		
			7.5      Transfer or allotment timetable
		

		
			As soon as reasonably practicable after an Option has been exercised, the Company shall, subject to Rule 7.4 (Payment of Tax Liability) and any arrangement made under Rule 7.1(b) (Restrictions on exercise: regulatory and tax issues), transfer or procure the transfer to him (or a nominee for him) or, if appropriate, allot to him (or a nominee for him) the number of Shares in respect of which the Option has been exercised.
		

		
			7.6      Lapse of Options
		

		
			An Option which has become exercisable shall lapse at the end of the Exercise Period to the extent it has not been exercised unless it lapses earlier under Rule 10 (Leavers) or Rule 11 (Takeovers and other corporate events).
		

		
			8.        CASH ALTERNATIVE
		

		
			8.1      Committee determination
		

		
			Where an Option has been exercised or where a Conditional Award Vests and Vested Shares have not yet been allotted or transferred to the Participant (or his nominee), the Committee may determine that, in substitution for his right to acquire such number of Vested Shares as the Committee may decide (but in full and final satisfaction of his right to acquire those Shares), he shall be paid by way of additional employment income a sum equal to the cash equivalent (as defined in Rule 8.3) of that number of Shares in accordance with the following provisions of this Rule 8.
		

		
			
		

		
			

		 

		

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			8.2      Limitation on the use of this Rule
		

		
			Rule 8.1 shall not apply in relation to an Award made to a Participant in any jurisdiction where the presence of Rule 8.1 would cause:
		

		
			(a)       the grant of the Award to be unlawful or for it to fall outside any applicable securities law exclusion or exemption; or
		

		
			(b)       adverse tax or social security contribution consequences for the Participant or any Group Member as determined by the Board.
		

		
			8.3      Cash equivalent
		

		
			For the purpose of this Rule 8, the cash equivalent of a Share is:
		

		
			(a)       in the case of a Conditional Award, the market value of a Share on the day when the Award Vests;
		

		
			(b)       in the case of an Option, the market value of a Share on the day when the Option is exercised reduced by the Option Price in respect of that Share.
		

		
			Market value on any day shall be determined as follows:
		

		
			(c)       if on the day of Vesting or exercise, Shares are quoted on NASDAQ, the closing price of a Share on that day; or
		

		
			(d)       if Shares are not so quoted, such value of a Share as the Committee reasonably determines.
		

		
			8.4      Payment of cash equivalent
		

		
			As soon as reasonably practicable after the Committee has determined under Rule 8.1 that a Participant shall be paid a sum in substitution for his right to acquire any number of Vested Shares:
		

		
			(a)       the Company shall pay to him or procure the payment to him of that sum in cash; and
		

		
			(b)       if he has already paid the Company for those Shares, the Company shall return to him the amount so paid by him.
		

		
			In the event that the terms of an Award included a condition (specified on or prior to the Award’s Grant Date under Rule 3.1(b) (Terms of grant)) for the Participant to meet the cost of any Group Member’s social security contributions in respect of his Award the Committee may reduce the sum otherwise payable under this Rule by reference to what the Participant’s Tax Liability would have been if the Award had been settled in Shares.
		

		
			8.5      Deductions
		

		
			There shall be deducted from any payment under this Rule 8 such amounts (on account of Tax Liability or similar liabilities) as may be required by law or as the Board may reasonably consider to be necessary or desirable.
		

		
			9.        LAPSE OF AWARDS
		

		
			An Award shall lapse:
		

		
			
		

		
			

		 

		

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			(a)       in accordance with the Rules; or
		

		
			(b)       to the extent it does not Vest under these Rules.
		

		
			10.      LEAVERS
		

		
			10.1 Good leavers before the Normal Vesting Date – other than death
		

		
			If a Participant ceases to be a director or employee of a Group Member before the Normal Vesting Date by reason of:
		

		
			(a)       injury or disability evidenced to the satisfaction of the Committee;
		

		
			(b)       his office or employment being with either a company which ceases to be a Group Member or relating to a business or part of a business which is transferred to a person who is not a Group Member;
		

		
			(c)       termination without Cause, or resignation for Good Reason; (d)       for any other reason, if the Committee so decides, then
		

		
			(i)       subject to Rule 5.3 (Restrictions on Vesting: regulatory and tax issues), Rule 10.8 (Death following cessation of employment) and Rule 11 (Takeovers and other corporate events), his Award shall Vest on the Normal Vesting Date and Rule 10.6 (Leavers: reduction in number of Vested Shares) shall apply; unless
		

		
			(ii)      the individual is a US Participant holding an Award that is not a Market Value Option Award or otherwise the Committee so decides that, subject to Rule 5.3 (Restrictions on Vesting: regulatory and tax issues), his Award shall Vest on the Early Vesting Date and Rule 10.6 (Leavers: reduction in number of Vested Shares) shall apply; and
		

		
			an Award in the form of an Option which Vests under (i) or (ii) above may, subject to Rule 7.1 (Restrictions on exercise) and Rule 11 (Takeovers and other corporate events), be exercised in respect of the Vested Shares within the period of 12 months commencing on the date of Vesting (or, if shorter, until the expiry of the Exercise Period) and, to the extent that the Option is not exercised, it shall lapse at the end of that period.
		

		
			10.2 Leavers on or after the Normal Vesting Date – other than death
		

		
			If a Participant who holds an Option that is Vested ceases to be a director or employee of a Group Member on or after the Normal Vesting Date for any reason other than termination for Cause then, subject to Rule 7.1 (Restrictions on exercise)and Rule 11 (Takeovers and other corporate events), that Option shall continue to be exercisable to its Vested extent for a period of 12 months commencing on the date of cessation (or, if shorter, until the expiry of the Exercise Period) and, to the extent that the Option is not exercised, it shall lapse at the end of that period.
		

		
			10.3 Participant's death before the Normal Vesting Date
		

		
			If a Participant ceases to be a director or employee of a Group Member before the Normal Vesting Date by reason of death then subject to Rule 5.3 (Restrictions on Vesting: regulatory and tax issues), his Award shall Vest on the Early Vesting Date and Rule 10.6(Leavers: reduction in number of Vested Shares) shall apply and any such Award in the form of an Option may, subject to Rule 7.1 (Restrictions on exercise) and Rule 11 (Takeovers and other corporate
		

		
			
		

		
			

		 

		

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			events), be exercised in respect of the Vested Shares within the period of 12 months commencing on the date of Vesting (or, if shorter, until the expiry of the Exercise Period) and, to the extent that the Option is not exercised, it shall lapse at the end of that period.
		

		
			10.4 Participant's death on or after the Normal Vesting Date
		

		
			If a Participant who holds an Option ceases to be a director or employee of a Group Member on or after the Normal Vesting Date by reason of death then, subject to Rule 7.1 (Restrictions on exercise) and Rule 11 (Takeovers and other corporate events), that Option shall continue to be exercisable for a period of 12 months commencing on the date of cessation (or, if shorter, until the expiry of the Exercise Period) and to the extent that the Option is not exercised, it shall lapse at the end of that period.
		

		
			10.5 Cessation of employment in other circumstances
		

		
			If a Participant ceases to be a director or employee of a Group Member for any reason other than those specified in Rules 10.1 to 10.4 (Good leavers) or otherwise determined by the Committee under Rule 10.1(d) then any Award held by him shall lapse immediately on such cessation.
		

		
			10.6 Leavers: reduction in number of Vested Shares
		

		
			Where an Award Vests under this Rule 10 on or after a Participant ceasing to be a director or employee of a Group Member, the Committee shall determine the number of Vested Shares of that Award by the following steps:
		

		
			(a)       applying any Performance Condition and any other condition imposed on the Vesting of the Award; and
		

		
			(b)       solely in the case of Rule 10.1(d), applying a pro rata reduction to the number of Shares determined under 10.6(a) based on the period of time after the Grant Date and ending on the date of cessation relative to the Normal Vesting Period.
		

		
			If an Award Vests under any of Rules 11.1 to 11.3 when the holder of that Award has ceased to be a director or employee of a Group Member then this Rule 10.6 shall take precedence over Rule 11.5.
		

		
			10.7 Meaning of ceasing employment
		

		
			A Participant shall not be treated for the purposes of this Rule 10 as ceasing to be a director or employee of a Group Member until such time as he is no longer a director or employee of any Group Member.  If any Participant ceases to be such a director or employee before the Vesting of his Award in circumstances where he retains a statutory right to return to work then he shall be treated as not having ceased to be such a director or employee until such time (if at all) as he ceases to have such a right to return to work while not acting as an employee or director.
		

		
			The reason for the termination of office or employment of a Participant shall be determined by reference to Rules 10.1 to 10.5 regardless of whether such termination was lawful or unlawful.
		

		
			10.8 Death following cessation of employment
		

		
			If a Participant dies following cessation of employment in circumstances where his Award did not lapse but it has not Vested by the time of his death, it shall Vest immediately on his death to the extent determined by reference to the time of cessation in accordance with Rule 10.1(d)(ii).
		

		
			
		

		
			

		 

		

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			An Award in the form of an Option that Vests under this Rule may, subject to Rule 7.1 (Restrictions on exercise) and Rule 11 (Takeovers and other corporate events), be exercised in respect of the Vested Shares within the period of 12 months commencing on the date of Vesting (or, if shorter, until the expiry of the Exercise Period) and, to the extent that the Option is not exercised, it shall lapse at the end of that period.
		

		
			10.9 Deferred Share Bonus Awards
		

		
			Notwithstanding any other provision in this Rule 10, Deferred Share Bonus Awards shall Vest in full immediately upon cessation of employment, except that:
		

		
			(a)       if such cessation is due to the Participant’s voluntary resignation without Good Reason, then the Committee may in its reasonable discretion determine the extent to which such Award shall Vest, if at all; and
		

		
			(b)       in case of termination for Cause, such Awards shall lapse immediately.
		

		
			11.      TAKEOVERS AND OTHER CORPORATE EVENTS
		

		
			11.1 General offers
		

		
			In the event that any person (or group of persons acting in concert):
		

		
			(a)       obtains Control of the Company as a result of making a general offer to acquire Shares; or
		

		
			(b)       having obtained Control of the Company makes such an offer and such offer becomes unconditional in all respects then, subject to Rule 11.4 (Internal reorganisations), the following provisions shall apply:
		

		
			(i)        subject to Rule 5.3 (Restrictions on Vesting: regulatory and tax issues), all Awards shall Vest on the date of such event if they have not then Vested and Rule 11.5 (Corporate events: reduction in number of Vested Shares) shall apply; and
		

		
			(ii)       any Option may, subject to Rule 7.1 (Restrictions on exercise), be exercised within one month of the date of such event (or, if shorter, until the expiry of the Exercise Period), but to the extent that an Option is not exercised within that period, that Option shall (regardless of any other provision of the Plan) lapse at the end of that period.
		

		
			11.2 Schemes of arrangement and winding up
		

		
			In the event that:
		

		
			(a)       a compromise or arrangement is sanctioned by the Court under section 899 of the Companies Act 2006 in connection with or for the purposes of a change in Control of the Company; or
		

		
			(b)       the Company passes a resolution for a voluntary winding up of the Company; or
		

		
			(c)       an order is made for the compulsory winding up of the Company
		

		
			all Awards shall, subject to Rule 5.3 (Restrictions on Vesting: regulatory and tax issues) and Rule 11.4 (Internal reorganisations), Vest on the date of such event if they have not then Vested and Rule 11.5 (Corporate events: reduction in number of Vested Shares) shall apply.
		

		
			
		

		
			

		 

		

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			If an event as described in this Rule occurs then an Option may, subject to Rule 7.1 (Restrictions on exercise) and Rule 11.4 (Internal reorganisations), be exercised within one month of such event (or, if shorter, until the expiry of the Exercise Period), but to the extent that the Option is not exercised within that period, it shall (regardless of any other provision of the Plan) lapse at the end of that period.
		

		
			11.3 Demergers and similar events
		

		
			If a demerger, special dividend or other similar event (the “Relevant Event”) is proposed which, in the opinion of the Committee, would affect the market price of Shares to a material extent, then the Committee may, at its discretion, decide that the following provisions shall apply:
		

		
			(a)       the Committee shall, as soon as reasonably practicable after deciding to apply these provisions, notify a Participant that, subject to earlier lapse under Rule 10 (Leavers), his Award Vests and, if relevant, his Option may, subject to Rule 7.6 (Lapse of Options) and Rule 10 (Leavers), be exercised on such terms as the Committee may determine and during such period preceding the Relevant Event or on the Relevant Event as the Committee may determine and shall (regardless of any other provision of the Plan) lapse at the end of that period to the extent unexercised;
		

		
			(b)       if an Award Vests, or an Option is exercised, conditional upon the Relevant Event and such event does not occur then the conditional Vesting or exercise shall not be effective and the Award shall continue to subsist; and
		

		
			(c)       if the Committee decides that an Award Vests under this Rule 11.3 then the date of that Vesting shall be the Early Vesting Date and the provisions of Rule 11.5 (Corporate events: reduction in number of Vested Shares) shall apply.
		

		
			11.4 Internal reorganisations
		

		
			In the event that:
		

		
			(a)       a company (the "Acquiring Company") is expected to obtain Control of the Company as a result of an offer referred to in Rule 11.1 (General offers) or a compromise or arrangement referred to in Rule 11.2(a) (Schemes of arrangement and winding up); and
		

		
			(b)       at least 75% of the shares in the Acquiring Company are expected to be held by substantially the same persons who immediately before the obtaining of Control of the Company were shareholders in the Company
		

		
			then the Committee, with the consent of the Acquiring Company, may decide before the obtaining of such Control that an Award shall not Vest under Rule 11.1 or Rule 11.2 but shall be automatically surrendered in consideration for the grant of a new award which the Committee determines is equivalent to the Award (including as to any Performance Condition) it replaces except that it will be over shares in the Acquiring Company or some other company.
		

		
			The Rules will apply to any new award granted under this Rule 11.4 as if references to Shares were references to shares over which the new award is granted and references to the Company were references to the company whose shares are subject to the new award.
		

		
			11.5 Corporate events: reduction in number of Vested Shares
		

		
			If an Award Vests under any of Rules 11.1 to 11.3, the Committee shall determine the number of Vested Shares of that Award by applying any Performance Condition and any other condition
		

		
			
		

		
			

		 

		

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			imposed on the Vesting of the Award on such basis as the Remuneration Committee considers appropriate (which may include regard to forecasted performance.
		

		
			12.      ADJUSTMENT OF AWARDS
		

		
			12.1 General rule
		

		
			In the event of:
		

		
			(a)       any variation of the share capital of the Company; or
		

		
			(b)       a demerger, special dividend or other similar event which affects the market price of Shares to a material extent
		

		
			the Committee shall make such adjustments as appropriate under Rule 12.2 (Method of adjustment).
		

		
			12.2 Method of adjustment
		

		
			An adjustment made under this Rule shall be to one or more of the following:
		

		
			(a)       the number of Shares comprised in an Award;
		

		
			(b)       subject to Rule 12.3 (Adjustment below nominal value), the Option Price; and
		

		
			(c)       where any Award has Vested or Option has been exercised but no Shares have been transferred or allotted after such Vesting or exercise, the number of Shares which may be so transferred or allotted and (if relevant) the price at which they may be acquired.
		

		
			12.3 Adjustment below nominal value
		

		
			An adjustment under Rule 12.2 may have the effect of reducing the price at which Shares may be subscribed for on the exercise of an Option to less than their nominal value, but only if and to the extent that the Board is authorised:
		

		
			(a)       to capitalise from the reserves of the Company a sum equal to the amount by which the nominal value of the Shares in respect of which the Option is exercised and which are to be allotted after such exercise exceeds the price at which the Shares may be subscribed for; and
		

		
			(b)       to apply that sum in paying up such amount on such Shares
		

		
			so that on exercise of any Option in respect of which such a reduction shall have been made the Board shall capitalise that sum (if any) and apply it in paying up that amount.
		

		
			13.      RECOVERY AND WITHHOLDING
		

		
			13.1 Applicability of Recovery and Withholding
		

		
			This Rule 13 shall apply to Awards regardless of any other provisions of the Plan.
		

		
			13.2 Events that can lead to Recovery and Withholding: Awards other than Deferred Bonus Awards
		

		
			In the case of a Performance Share Award, Deferred Share Award or Market Value Option, the Committee may decide at any time within the three year period commencing on the date on
		

		
			
		

		
			

		 

		

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			which an Award Vests (the "Relevant Discovery Period") that the individual to whom the Award was granted (the "Relevant Individual") shall be subject to Recovery and Withholding in respect of such Award if the Committee forms the view that:
		

		
			(a)       there has been a material misstatement (including any omission) in the Company's financial statements and such misstatement resulted either directly or indirectly in that Award Vesting to a greater degree than would have been the case had that misstatement not been made;
		

		
			(b)       in assessing any Performance Condition and/or any other condition imposed on the Award such assessment was based on an error, or on inaccurate or misleading information or assumptions and that such error, information or assumptions resulted either directly or indirectly in that Award Vesting to a greater degree than would otherwise have been the case had that error not been made; or
		

		
			(c)       the Relevant Individual ceases to be a director or employee of a Group Member (as defined in Rule 10.7) for Cause on the part of that individual or the Committee is of the view that the relevant individual could have been summarily terminated for Cause in each case in relation to an act or acts preceding the Vesting of the Award.
		

		
			13.3 Events that can lead to Recovery and Withholding: Deferred Bonus Awards
		

		
			In the case of a Deferred Bonus Award, the Committee may decide at any time within the three year period commencing on the Award’s Grant Date (the "Relevant Discovery Period") that the individual to whom the Award was granted (the "Relevant Individual") shall be subject to Recovery and Withholding in respect of such Award if the Committee forms the view that:
		

		
			(a)       there has been a material misstatement (including any omission) in the Company's financial statements and such misstatement resulted either directly or indirectly in that Award being granted over a greater number of Shares than would have been the case had that misstatement not been made;
		

		
			(b)       in assessing any bonus metric and/or any other condition imposed on the Bonus in relation to which the Award was granted such assessment was based on an error, or on inaccurate or misleading information or assumptions and that such error, information or assumptions resulted either directly or indirectly in the Award being granted over a greater number of Shares than would otherwise have been the case had that error not been made; or
		

		
			(c)       the Relevant Individual ceases to be a director or employee of a Group Member (as defined in Rule 10.7) for Cause on the part of that individual or the Committee is of the view that the relevant individual could have been summarily terminated for Cause in each case in relation to an act or acts preceding the grant (or Vesting if relevant) of the Award.
		

		
			13.4 Amount to be subject to Recovery and Withholding
		

		
			The Committee shall determine the amount to be subject to Recovery and Withholding which:
		

		
			(a)       where Rule 13.2(a) and/or (b) applies, shall be all or part of the additional value which the Committee considers has Vested to and/or was otherwise received by the Relevant Individual in the circumstances referred to in those Rules;
		

		
			(b)       where Rule 13.3(a) and/or (b) applies, shall be all or part of the additional value or number Shares in relation to which the Committee considers was granted under the Award and/or was otherwise received by the Relevant Individual in the circumstances referred to in those Rules;
		

		
			
		

		
			

		 

		

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			(c)       where Rule 13.2(c) or Rule 13.4(c) applies, shall be all or part of such value which the Committee determines would have not Vested and/or would have not otherwise been received or granted under the Award had the Award lapsed in full in connection with the Cause or otherwise not have been granted.
		

		
			Any determinations under this Rule 13.4 shall be on such basis as the Committee reasonably decides and must be completed by the Committee no later than the second anniversary of the end of the Relevant Discovery Period.
		

		
			If the Relevant Individual has ceased to be a director or employee of a Group Member (as defined in Rule 10.7) when the Recovery and Withholding is applied, or ceases to be such a director or employee before the Recovery and Withholding has been satisfied in full, then the amount (or remaining amount if applicable) subject to Recovery and Withholding shall be limited to the net (post-tax) amount of such additional value.
		

		
			13.5 Satisfaction of the Recovery and Withholding
		

		
			The Recovery and Withholding shall be satisfied as set out in Rules 13.5(a) and/or 13.5(b).
		

		
			(a)       The Committee may reduce (including, if appropriate, reducing to zero) any of the following elements of the remuneration of the Relevant Individual:
		

		
			(i)       the amount of any future bonus which would, but for the operation of the Recovery and Withholding, be payable to the Relevant Individual in respect of any relevant financial year under any bonus plan operated by any Group Member; and/or
		

		
			(ii)      the number of Shares subject to any future Awards that were proposed to be granted to the Relevant Individual under the Plan; and/or
		

		
			(b)       The Committee may require the relevant individual to pay to such Group Member as the Committee may direct, and on such terms as the Committee may direct (including, but without limitation to, on terms that the relevant amount is to be deducted or withheld from the Relevant Individual's salary or from any other payment to be made to the Relevant Individual by any Group Member), such amount as is required for the Recovery and Withholding to be satisfied in full.
		

		
			Any reduction made pursuant to Rule 13.5(a)(ii) and/or (iii) shall be made at such time or times as the Committee determines appropriate and which, in the case of unvested awards, shall be at the time they would otherwise ordinarily vest unless the Committee decides otherwise.
		

		
			13.6 Reduction in Awards to give effect to recovery and withholding provisions in other plans
		

		
			The Committee may decide at any time to reduce the number of Shares subject to any future Award (including, if appropriate, reducing to zero) to give effect to recovery and withholding provisions of any form and/or name contained in any incentive plan or any bonus plan operated by any Group Member. The value of the reduction shall be in accordance with the terms of the relevant provisions of the relevant plan or, in the absence of any such term, on such basis as the Committee, acting fairly and reasonably, decides is appropriate.
		

		
			13.7 Compliance with law
		

		
			Notwithstanding Rules 13.1 to 13.6, to the extent and in the manner required by applicable law (including without limitation Section 304 of the Sarbanes-Oxley Act) and/or the rules and regulations of NASDAQ or other securities exchange or inter-dealer quotation system on which the Company’s Ordinary Shares are listed or quoted (collectively, the “Rules”), awards shall be
		

		
			
		

		
			

		 

		

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			subject (including on a retroactive basis for a maximum of up to eighteen months) to, in order of action: first, forfeiture or similar requirements set forth in such Rules, and if not possible because such amounts are insufficient, clawback (and such requirements shall be deemed incorporated by reference into the Plan).
		

		
			14.      ALTERATIONS
		

		
			14.1 General rule on alterations
		

		
			Except as described in Rule 14.2 (Shareholder approval) and Rule 14.4 (Alterations to disadvantage of Participants) the Committee may at any time alter the Plan or the terms of any Award.
		

		
			14.2 Shareholder approval
		

		
			Except as described in Rule 14.3 (Exceptions to shareholder approval), no alteration to the advantage of an individual to whom an Award has been or may be granted shall be made under Rule 14.1 to the provisions concerning:
		

		
			(a)       eligibility;
		

		
			(b)       the individual limits on participation;
		

		
			(c)       the overall limits on the issue of Shares or the transfer of treasury Shares;
		

		
			(d)       the basis for determining a Participant’s entitlement to, and the terms of, Shares or cash provided under the Plan;
		

		
			(e)       the adjustments that may be made in the event of any variation of capital; and
		

		
			(f)        the terms of this Rule 14.2
		

		
			without the prior approval by ordinary resolution of the members of the Company in general meeting.
		

		
			14.3 Exceptions to shareholder approval
		

		
			Rule 14.2 (Shareholder approval) shall not apply to:
		

		
			(a)       any minor alteration to benefit the administration of the Plan, to take account of a change in legislation or to obtain or maintain favourable tax, exchange control or regulatory treatment for Participants or any Group Member; or
		

		
			(b)       any alteration relating to the Performance Condition made under Rule 14.5.
		

		
			14.4 Alterations to disadvantage of Participants
		

		
			No alteration to the material disadvantage of Participants (other than a change to any Performance Condition) shall be made under Rule 14.1 unless:
		

		
			(a)       the Board shall have invited every relevant Participant to indicate whether or not he approves the alteration; and
		

		
			(b)       the alteration is approved by a majority of those Participants who have given such an indication.
		

		
			
		

		
			

		 

		

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			14.5 Alterations to a Performance Condition
		

		
			The Committee may amend any Performance Condition without prior shareholder approval if:
		

		
			(a)       an unexpected event (whether corporate or external) has occurred which causes the Committee reasonably to consider that it would be appropriate to amend the Performance Condition;
		

		
			(b)       the altered Performance Condition will, in the fair and reasonable opinion of the Committee, be not materially more or less difficult to satisfy than the unaltered Performance Condition would have been but for the event in question; and
		

		
			(c)       the Committee shall act fairly and reasonably and consult Participants in making the alteration.
		

		
			14.6 Discontinuance, Cancellation, Amendment and Termination
		

		
			The Committee may at any time discontinue granting Awards under the Plan and with the consent of the Participant, may at any time cancel an existing Award in whole or in part.
		

		
			15.      MISCELLANEOUS
		

		
			15.1 Employment
		

		
			The rights and obligations of any individual under the terms of his office or employment with any Group Member shall not be affected by his participation in the Plan or any right which he may have to participate in it.  An individual who participates in the Plan waives any and all rights to compensation or damages in consequence of the termination of his office or employment for any reason whatsoever insofar as those rights arise or may arise from him ceasing to have rights under an Award as a result of such termination.  Participation in the Plan shall not confer a right to continued employment upon any individual who participates in it.  The grant of any Award does not imply that any further Award will be granted nor that a Participant has any right to receive any further Award.
		

		
			15.2 Disputes
		

		
			In the event of any dispute or disagreement as to the interpretation of the Plan, or as to any question or right arising from or relating to the Plan, the decision of the Committee shall be final and binding upon all persons.
		

		
			15.3 Exercise of powers and discretions
		

		
			The exercise of any power or discretion by the Committee shall not be open to question by any person and a Participant or former Participant shall have no rights in relation to the exercise of or omission to exercise any such power or discretion.
		

		
			15.4 Share rights
		

		
			All Shares allotted under the Plan shall rank equally in all respects with Shares then in issue except for any rights attaching to such Shares by reference to a record date before the date of the allotment.
		

		
			Where Vested Shares are transferred to Participants (or their nominee) Participants shall be entitled to all rights attaching to such Shares by reference to a record date on or after the date of such transfer or release of such restrictions.
		

		
			
		

		
			

		 

		

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			15.5 Notices
		

		
			Any notice or other communication under or in connection with the Plan may be given:
		

		
			(a)       by personal delivery or by internal or ordinary post, in the case of a company to the company secretary at its registered office or to such other address as may from time to time be notified to an individual, and in the case of an individual to his last known address, or, where he is a director or employee of a Group Member, either to his last known address or to the address of the place of business at which he performs the whole or substantially the whole of the duties of his office or employment;
		

		
			(b)       in an electronic communication to their usual business address or such other address for the time being notified for that purpose to the person giving the notice; or
		

		
			(c)       by such other method as the Board determines.
		

		
			Where a notice or document is sent to an eligible employee or Participant by ordinary or internal post, it shall be treated as being received 72 hours after it was put into the post properly addressed and, where relevant, stamped.  In all other cases, the notice or document shall be treated as received when it is given.  A notice or document sent to the Company shall only be effective once it is received by the Company, unless otherwise agreed by the Company.   All notices and documents given or sent to the Company shall be given or sent at the risk of the sender.
		

		
			15.6 Third parties
		

		
			No third party has any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of the Plan.
		

		
			15.7 Benefits not pensionable
		

		
			Benefits provided under the Plan shall not be pensionable.
		

		
			15.8 Data Protection
		

		
			Each Participant consents to the collection, processing and transfer of his personal data for any purpose relating to the operation of the Plan.  This includes:
		

		
			(a)       providing personal data to any Group Member and any third party such as trustees of any employee benefit trust, administrators of the Plan, registrars, brokers and any of their respective agents;
		

		
			(b)       processing of personal data by any such Group Member or third party;
		

		
			(c)       transferring personal data to a country outside the European Economic Area (including a country which does not have data protection laws equivalent to those prevailing in the European Economic Area); and
		

		
			(d)       providing personal data to potential purchasers of the Company, the Participant’s employer or the business in which the Participant works.
		

		
			15.9 Overseas Plans
		

		
			The Committee may establish further plans based on the Plan but modified to take account of local tax, exchange control or securities laws in overseas territories, provided that any shares made available under such further plans are treated as counting against the limits on individual or overall participation in the Plan.
		

		
			
		

		
			

		 

		

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			15.10 Governing law
		

		
			The Plan and all Awards shall be governed by and construed in accordance with the law of England and Wales and the Courts of England and Wales have exclusive jurisdiction to hear any dispute.
		

		 

		

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