Document:

EXHIBIT 4.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conditional Share Award

 

granted to Trevor
Matthews on 2 December 2011

 

 

 

 

 

TERMS AND CONDITIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

INTRODUCTION

 

You were granted a conditional share award
(the “Award”) on the commencement of your employment. Details of the Award are set out in your grant statement.
The purpose of this booklet is to explain the terms and conditions of the Award and how the Award will operate. If you have additional
questions after reading this booklet, please contact the Group General Counsel and Company Secretary in the first instance.

 

THE AWARD IN BRIEF

 

		·	The Company has granted you an award of shares in the Company to the value of £2,020,000
(two million and twenty thousand pounds sterling). The number of shares subject to your Award has been calculated based on the
average of the closing middle market price of the Company’s shares over the three business days immediately preceding your
date of employment, 2 December 2011. The Award will vest (as defined below) on the following dates, subject to the terms and conditions
set out in this booklet.

 

		·	1/3rd (one third) of the Award, rounded down to the nearest whole number of shares,
will vest on the first business day in March 2012 which is not subject to Dealing Restrictions;

 

		·	1/3rd (one third) of the Award, rounded down to the nearest whole number of shares,
will vest on the first business day in March 2013 which is not subject to Dealing Restrictions; and

 

		·	the remaining proportion of the Award will vest on the first business day in March 2014 which is
not subject to Dealing Restrictions.

 

		·	Generally, the shares comprised in each tranche of the award will only vest if you remain an employee
of the Company or a group company of Aviva plc on each of the relevant vesting dates.

 

		·	On vesting, an additional number of shares or amount of cash (as determined by the Remuneration
Committee) will be paid to you in lieu of dividends notionally paid and reinvested between the grant date and the date of vesting
in respect of the number of shares which have vested.

 

		·	If your employment is terminated due to resignation or due to dismissal for gross misconduct or
gross incompetence, your Award will be forfeited as follows:

 

		·	the Company will reclaim any part of the Award, including shares or cash in respect of dividends,
which have vested during the twelve months prior to the termination date; and

 

		·	any part of the Award that has not vested will lapse.

 

		·	If your employment is terminated due to retirement
(with the agreement of your employer) or due to dismissal (other than for gross misconduct or gross incompetence), any unvested
part of the Award will vest on the termination date and the Company will not reclaim any part of the Award, including shares or
cash in respect to dividends, which have vested during the twelve months prior to the termination date.

 

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QUESTIONS & ANSWERS

 

		1.	What are the conditions attaching to my Award?

  

The vesting of shares subject
to the Award will be conditional on your continued employment with the Company or a group company of Aviva plc on each of the relevant
vesting dates, ie:-

 

·        
the first dealing day of March 2012, which is not subject to Dealing Restrictions,
for the first tranche;

 

·        
the first dealing day of March 2013, which is not subject to Dealing Restrictions,
for the second tranche, and

 

·        
the first dealing day of March 2014, which is not subject to Dealing Restrictions,
for the final tranche.

 

If you leave the Company (or
a group company) or the there is a change of control of the Company, some or all of the Award may vest early. Please see Question
5 for more information.

 

		2.	What does vest mean?

  

Vest or vesting means that you
become entitled to have some or all of the shares under Award released to you and transferred into your name.

 

		3.	What does release of shares mean and when are shares released?

  

Your shares will be released
to you within 30 days of vesting. This means that the shares will be transferred into your name and you will become the owner of
those shares. You do not have to pay any money for the shares. The shares are transferred to you free of charge. See Question 7
for details of any tax consequences of which you need to be aware.

 

You may only deal in Aviva shares
in periods permitted by the Aviva Share Dealing Code. If it transpires that the vesting of your Award is prohibited due to Dealing
Restrictions, your Award will vest and shares released to you as soon as such Dealing Restrictions have been lifted.

 

		4.	What are Dealing Restrictions?

  

Dealing Restrictions are restrictions
imposed by statute, order, regulation or Government directive, or by the Model Code or any code adopted by the Company based on
the Model Code and for this purpose the Model Code means the Model Code on dealings in securities set out in Listing Rule 9, annex
1 (of the London Stock Exchange), as varied from time to time.

 

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		5.	What happens if I leave the Aviva group?

  

If your employment is terminated
due to resignation or due to dismissal for gross misconduct or gross incompetence, your Award will be forfeited as follows:

 

		·	the Company will reclaim any part of the Award, including shares or cash in respect of dividends,
which have vested during the twelve months prior to the termination date; and

 

		·	any part of the Award that has not vested will lapse.

 

If your employment
is terminated for any of the reasons set out below then any unvested part of the award will vest on the termination date
and the Company will not reclaim any part of the Award, including shares or cash in respect to dividends, which has vested during
the twelve months prior to the termination date. The reasons are:

 

		(i)	dismissal (other than for gross misconduct or gross incompetence);

 

		(ii)	retirement with the agreement of your employer;

 

		(iii)	ill-health, injury or disability, as established to the satisfaction of the Company;

 

		(iv)	your employing company ceasing to be a Member of the Group;

 

		(v)	a transfer of the undertaking, or the part of the undertaking in which you work, to a person which
is not a Member of the Group;

 

		(vi)	redundancy, but only in circumstances which give rise to a redundancy payment;

 

(vii)death;
and

 

(viii)any
other reason, if the Directors so decide in any particular case.

 

		6.	What happens if there is a change of control of the Company?

 

If there is a change of control
of the Company (by way of a general offer or court sanction) or similar corporate event (as determined by the Remuneration Committee),
your Award will vest on the date of the relevant event. In certain circumstances (eg where there is a change of control due to
an agreed merger or an internal restructuring), the Company may require you to exchange your Award for an equivalent award over
shares in the acquiring company provided that the terms relating to such equivalent award are no less favourable to you.

 

		7.	What are the tax implications?

 

You will be subject to income
tax and National Insurance Contributions on the market value of the shares in respect of the vested Award on the date on which
they are released to you. This amount must be collected through the PAYE system and you agree that a sufficient number of shares
will be sold on your behalf, or forfeited, to cover your tax liability before the balance of the shares are released to you.

 

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		8.	What happens to dividends on the shares?

  

You will not be entitled to dividends
in respect of any shares comprised in your Award before they are released to you. However, the Company will arrange for a dividend
equivalent payment, in the form of cash or shares (as determined by the Remuneration Committee), to be made to you on or around
vesting of each tranche of your Award. The amount of this payment will be equivalent to the dividends that would have been paid
on the shares subject to the relevant tranche of the Award between the grant date and the vesting date had you been the registered
owner of the shares during that period. You will be entitled to all dividends which are paid on the shares after they have been
transferred into your name.

 

		9.	Are there any other conditions which must be satisfied before any tranche of my Award can vest?

  

In order for any tranche of your
Award to vest, you must be employed by the Company or a group company of Aviva plc and not be serving notice on each the vesting
dates.

 

Points to note

 

Your Award is personal to you and may not
be transferred, assigned or otherwise disposed of to anyone else.

 

The Award shall not confer on you any legal
or equitable rights against the trustees of any employee benefit trust which may be used in conjunction with your Award, the Company
or any subsidiary, directly or indirectly, or give rise to any cause of action in law or in equity against such trustees, the Company
or any subsidiary.

 

You will not be entitled to vote, receive
dividends or have any other rights of a shareholder in respect of the shares under award until they have been released to you.

 

The benefits provided to you in respect
of the Award shall not count as pay or remuneration for pension fund or other purposes.

 

In no circumstances shall you, on ceasing
to hold any office or employment with the Aviva group (whether or not upon breach of your contract of employment by your employer),
be entitled to any compensation for any loss of any right or benefit or prospective right or benefit in relation to the Award whether
such compensation is claimed by way of damages for wrongful dismissal or other breach of contract or by way of compensation for
loss of office or otherwise.

 

This booklet sets out the terms and conditions
of your Award. In case of any dispute, the decision of the Remuneration Committee of the Board will be final and binding on all
concerned. The Remuneration Committee may at any time and in any way amend the terms of your Award. The terms of the Award shall
be governed by English law and the English courts shall have non-exclusive jurisdiction in respect of any disputes arising under
or in connection with the Award.

 

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If you have any queries in relation to your
Award, please contact the Group General Counsel and Company Secretary.

 

Kirstine Cooper

Group General Counsel and Company Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5EXHIBIT 4.7
	 
	 
	 
	 
	 
	AVIVA plc
	 
	 
	 
	 
	 
	 
	RULES OF THE AVIVA

                    RECRUITMENT AND RETENTION SHARE AWARD PLAN

	 	 
	 	 
	 	Directors’ Adoption:	2 December 2011	 
	 	Amended:	4 December 2012	 
	 	Expiry Date:	2 December 2021	 
	 	 	 	 
	 	 
	 	 
	Linklaters	 
	 	 
	
        Linklaters LLP

        One Silk Street

        London EC2Y 8HQ

         

         
	 
	Telephone (+44) 20 7456 2000	 
	Facsimile (+44) 20 7456 2222	 
	 	 
	Ref 01/140/R Berglund	 

 

    	 

    	 

    

 

Table of Contents

 

	Contents	Page
	 	 	 
	Introduction	1
	 	 	 
	1	Granting Awards	1
	 	 	 
	2	Before Vesting	3
	 	 	 
	3	Vesting of Awards	4
	 	 	 
	4	Consequences of Vesting	5
	 	 	 
	5	Vesting in other circumstances – personal events	7
	 	 	 
	6	Vesting in other circumstances – corporate events	8
	 	 	 
	7	Changing the Plan and termination	10
	 	 	 
	8	General	10
	 	 	 
	9	Definitions	13

 

    	 

    	 

    

  

Rules of the Aviva Recruitment and Retention
Share Award Plan

 

Introduction

 

This Plan sets out the terms of an Award
to be granted to an Employee in connection with his recruitment or retention. No new Shares shall be issued or transferred from
treasury pursuant to the Plan until the Plan has been approved by the Company’s shareholders.

 

		1	Granting Awards

 

		1.1	Grantor

 

The Grantor of an Award must be:

 

		1.1.1	the Company;

 

		1.1.2	any other Member of the Group; or

 

		1.1.3	a trustee of any trust set up for the benefit of Employees.

 

An Award granted under the Plan,
and the terms of that Award, must be approved in advance by the Directors.

 

		1.2	Eligibility

 

The Grantor may grant an Award
to anyone who is an Employee (excluding an executive director of the Company) on the Award Date in accordance with any selection
criteria that the Directors in their discretion may set.

 

If the Grantor grants an Award
which is inconsistent with this rule 1.2 (Eligibility), it will lapse immediately.

 

		1.3	Timing of Award

 

Awards may be granted at any time
subject to any Dealing Restrictions. However, Awards may not be granted at any time after the Expiry Date.

 

		1.4	Terms of Awards

 

Awards are subject to the rules
of the Plan, any Performance Condition and any other condition imposed under rule 1.6 (Other conditions) and must be granted by
deed. The terms of the Award must be determined by the Grantor and approved by the Directors. The terms must be set out in the
deed or other document (which may be in electronic form), including:

 

		1.4.1	whether the Award is:

 

		(i)	a Conditional Award;

 

		(ii)	an Option;

 

		(iii)	Restricted Shares,

 

or a combination of these;

 

		1.4.2	the number of Shares subject to the Award or the basis on which the number of Shares subject to
the Award will be calculated;

 

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		1.4.3	any Performance Condition;

 

		1.4.4	any other condition specified under rule 1.6 (Other conditions);

 

		1.4.5	the expected date of Vesting, unless specified in a Performance Condition;

 

		1.4.6	whether the Participant is entitled to receive any Dividend Equivalent;

 

		1.4.7	the Award Date; and

 

		1.4.8	the Option Price (if relevant).

 

		1.5	Performance Conditions

 

When granting an Award, the Grantor
may make its Vesting conditional on the satisfaction of one or more conditions linked to the performance of the Company. A Performance
Condition must be objective and specified at the Award Date. The Grantor, with the consent of the Directors, may waive or change
a Performance Condition in accordance with its terms or if anything happens which causes the Grantor reasonably to consider it
appropriate to do so.

 

		1.6	Other conditions

 

The Grantor may impose other conditions
when granting an Award. Any condition must be objective, specified at the Award Date and may provide that an Award will lapse if
it is not satisfied. The Grantor, with the consent of the Directors, may waive or change a condition imposed under this rule 1.6
(Other conditions).

 

		1.7	Award certificates

 

The Participant will receive a
certificate setting out the terms of the Award as soon as practicable after the Award Date. The certificate may be the deed referred
to in rule 1.4 (Terms of Awards) or any other document (which may be in electronic form), including a statement. If any certificate
is lost or damaged the Company may replace it on such terms as it decides.

 

		1.8	No payment

 

A Participant is not required to
pay for the grant of any Award.

 

		1.9	Restricted Share Agreement

 

On the grant of an Award of Restricted
Shares, the Participant must enter into an agreement with the Grantor, that to the extent that the Award lapses under the Plan,
the Shares are forfeited and he will immediately transfer his interest in the Shares, for no consideration or nominal consideration,
to any person (which may include the Company, where permitted) specified by the Grantor.

 

		1.10	Transfer of Restricted Shares

 

On or after the grant of an Award
of Restricted Shares the Grantor will procure that the relevant number of Shares is transferred to the Participant or to another
person to be held for the benefit of the Participant under the terms of the Plan.

 

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		2	Before Vesting

 

		2.1	Rights

 

		2.1.1	A Participant is not entitled to vote, to receive dividends or to have any other rights of a shareholder
in respect of Shares subject to an Option or a Conditional Award until the Shares are issued or transferred to the Participant.

 

		2.1.2	Except to the extent specified in the Restricted Share Agreement, a Participant will have all rights
of a shareholder in respect of Restricted Shares until the Award lapses.

 

		2.2	Restricted Shares - documents and elections

 

Where the Award is of Restricted
Shares:

 

		2.2.1	The Participant must sign any documentation, including a power of attorney or blank stock transfer
form, requested by the Grantor. If he does not do so within a period specified by the Grantor, the Award will lapse at the end
of that period. The Grantor may retain the share certificates relating to any Restricted Shares.

 

		2.2.2	The Participant must enter into any elections required by the Grantor, including elections under
Part 7 of the Income Tax (Earnings and Pensions) Act 2003 and elections to transfer any liability, or agreements to pay, social
security contributions. If he does not do so within a period specified by the Grantor, the Award will lapse at the end of that
period.

 

		2.3	Transfer

 

A Participant may not transfer,
assign or otherwise dispose of an Award or any rights in respect of it. If he does, whether voluntarily or involuntarily, then
it will immediately lapse. This rule 2.3 (Transfer) does not apply:

 

		2.3.1	to the transmission of an Award on the death of a Participant to his personal representatives;
or

 

		2.3.2	to the assignment of an Award, with the prior consent of the Directors, subject to any terms and
conditions the Directors impose.

 

		2.4	Adjustment of Awards

 

		2.4.1	If there is:

 

		(i)	a variation in the equity share capital of the Company, including a capitalisation or rights issue,
sub-division, consolidation or reduction of share capital;

 

		(ii)	a demerger (in whatever form) or exempt distribution by virtue of Section 1075 of the Corporation
Tax Act 2010;

 

		(iii)	a special dividend or distribution, or

 

		(iv)	any other corporate event which might affect the current or future value of any Award,

 

the Directors may adjust the
number or class of Shares or securities subject to the Award and, in the case of an Option, the Option Price.

 

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		2.4.2	Subject to the Restricted Share Agreement, a Participant will have the same rights as any other
shareholders in respect of Restricted Shares where there is a variation or other event of the sort described in rule 2.4.1. Any
shares, securities or rights allotted to a Participant as a result of such an event will be:

 

		(i)	treated as if they were awarded to the Participant under the Plan in the same way and at the same
time as the Restricted Shares in respect of which the rights were conferred; and

 

		(ii)	subject to the rules of the Plan and the terms of the Restricted Share Agreement.

 

		2.5	Reduction or forfeiture of Awards and Shares

 

If the Participant ceases to be
an Employee by reason of resignation or dismissal at any time within 12 months after Vesting, the Directors may decide that:

 

		2.5.1	an Award should be reduced or forfeited; and/or

 

		2.5.2	some or all of the after-tax number of Shares which have been transferred to or on behalf of a
Participant following Vesting or the value of any such Shares (determined by reference to any date the Directors decide) should
be transferred to the Company or as it directs.

 

		3	Vesting of Awards

 

		3.1	Determination of Performance Conditions

 

Where an Award is subject to a
Performance Condition, as soon as reasonably practicable after the end of the Performance Period, the Directors will determine
how many Sahres Vest for each Award on the basis of whether and to what extent any Performance Condition or other condition imposed
under rule 1.6 (Other conditions) has been satisfied or waived and if any adjustments are to made under rule 3.4 (Performance adjustment).

 

		3.2	Timing of Vesting – Award subject to Performance Condition

 

Where an Award is subject to a
Performance Condition, subject to rules 1.6 (Other conditions), 5 (Vesting in other circumstances – personal events) and
6 (Vesting in other circumstances – corporate events), an Award Vests, to the extent determined under rule 3.1 (Determination
of Performance Conditions), on the latest of:

 

		3.2.1	the date on which the Directors make their determination under rule 3.1 (Determination of Performance
Conditions); and

 

		3.2.2	the date of Vesting set by the Directors on the Award Date,

 

or, if on that
day a Dealing Restriction applies, the first date on which it ceases to apply.

 

		3.3	Timing of Vesting – Award not subject to Performance Condition

 

Where an Award is not subject to
a Performance Condition, subject to rules 1.6 (Other conditions), 3.4 (Performance adjustment), 5 (Vesting in other circumstances
– personal events) and 6 (Vesting in other circumstances – corporate events), an Award Vests on the date of Vesting
set by the Directors on the Award Date or, if on that date a Dealing Restriction applies, the first date on which it ceases to
apply.

 

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		3.4	Performance adjustment

 

The Directors may adjust downwards
(including to nil) the number of Shares in respect of which an Award Vests if, in their discretion, they determine that the performance
of the Company, any Member of the Group, any business area or team [and the conduct, capability or performance of the Participant]
justifies an adjustment.

 

		3.5	Lapse

 

To the extent that any Performance
Condition is not satisfied at the end of the Performance Period, the Award lapses, unless otherwise specified in the Performance
Condition. To the extent that any other condition is not satisfied, the Award will lapse if so specified in the terms of that condition.
If an Award lapses under the Plan it cannot Vest and a Participant has no rights in respect of it.

 

On the lapse of an Award of Restricted
Shares, a Participant must transfer his interest in the Shares in accordance with the Restricted Share Agreement.

 

		4	Consequences of Vesting

 

		4.1	Conditional Award

 

Within 30 days of a Conditional
Award Vesting, the Grantor will arrange (subject to rules 4.5 (Cash and share alternative), 4.6 (Withholding) and 8.8 (Consents))
for the transfer to, or to the order of, the Participant, of the number of Shares in respect of which the Award has Vested.

 

		4.2	Options

 

		4.2.1	A Participant may exercise his Option on any day after Vesting on which no Dealing Restriction
applies by giving notice in the prescribed form to the Grantor or any person nominated by the Grantor and paying the Option Price
(if any). The Option will lapse at the end of such period as determined by the Directors on the Award Date (unless the reason for
Vesting is the Participant’s death, in which case the Option will lapse 12 months after Vesting) or, if earlier, on the earliest
of:

 

		(i)	the date the Participant ceases to be an Employee by reason of dismissal for gross
misconduct; or
	 	 	 
	 	(ii)	six months after an event which gives rise to Vesting under rules 5.2 (“Good
                                                                                  leavers”), 5.5 (Overseas transfer) or 6 (Vesting in other circumstances – corporate events) or, if earlier,
the date six weeks after the date on which a notice to acquire Shares under section 979 of the Companies Act 2006 is first served.

 

		4.2.2	Subject to rules 4.5 (Cash and share alternative), 4.6 (Withholding) and 8.8 (Consents), the Grantor
will arrange for Shares to be transferred to, or to the order of, the Participant within 30 days of the date on which the Option
is exercised.

 

		4.2.3	If an Option Vests under more than one provision of the rules of the Plan, the provision resulting
in the shortest exercise period will prevail.

 

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		4.3	Restricted Shares

 

To the extent it has Vested, an
Award of Restricted Shares will not lapse under the Plan. In addition, the restrictions referred to in rule 1.9 (Restricted Share
Agreement) and contained in the Restricted Share Agreement between the Participant and the Grantor will cease to have effect. Any
tax and social security contributions payable on Vesting are described in rule 4.6 (Withholding).

 

		4.4	Dividend Equivalent

 

Subject to rule 2.1.2, Awards will
not include any rights in respect of dividends on the Shares comprised in the Award before Vesting, unless the Grantor, in its
discretion, decides otherwise at the Award Date. The Grantor may determine that an Award includes the right to receive a Dividend
Equivalent. Dividend Equivalents will be paid to any relevant Participant as soon as practicable after Vesting.

 

For the purpose of this rule 4.4
(Dividend Equivalent) and unless the Directors determine otherwise, “market value” means the closing middle market
quotation for a Share taken from the Daily Official List of the London Stock Exchange (or, in the case of an ADR, the closing price
on the New York Stock Exchange as reported in the Wall Street Journal) on the date of Vesting or, in the case of an Option,
the date of exercise.

 

The Grantor will exercise the discretions
in this rule 4.4 (Dividend Equivalent) subject to the consent of the Directors.

 

		4.5	Cash and share alternative

 

The Grantor may, subject to the
approval of the Directors, decide to satisfy an Option or a Conditional Award by paying an equivalent amount in cash (subject to
rule 4.6 (Withholding)). For Options, the cash amount must be equal to the amount by which the market value of the Shares in respect
of which the Option is exercised exceeds the Option Price. Alternatively, the Grantor may decide to satisfy an Option by procuring
the transfer of shares to the value of the cash amount specified above.

 

The Company may determine that
an Option or Conditional Award will be satisfied in cash at the Award Date or any time before satisfaction of the Award, including
after Vesting or, in the case of an Option, after exercise.

 

In respect of Awards which consist
of a right to receive a cash amount, the Directors may decide instead to satisfy such Awards (and any Dividend Equivalents) by
the delivery of Shares (subject to rule 4.6 (Withholding)). The number of Shares will be calculated by reference to the market
value of the Shares on the date of Vesting for Conditional Awards and the date of exercise for Options.

 

		4.6	Withholding

 

The Company, the Grantor, any employing
company or trustee of any employee benefit trust may withhold such amount and make such arrangements as it considers necessary
to meet any liability to taxation or social security contributions in respect of Awards. These arrangements may include the sale
or reduction in number of any Shares on behalf of the Participant.

 

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		5	Vesting in other circumstances – personal events

 

		5.1	General rule on leaving employment

 

Subject to rule 5.2 (“Good
leavers”), an Award which has not Vested will cease to be capable of Vesting on the date on which the Participant gives or
receives notice of termination of his employment with any Member of the Group (whether or not such termination is lawful), unless
the Directors decide otherwise.

 

An Award will lapse on the date
the Participant ceases to be an Employee unless one of the reasons in rule 5.2 applies.

 

This rule 5.1 will not apply where
the Vesting of an Award is delayed due to the operation of a Dealing Restriction, unless the Participant ceases to be an Employee
by reason of dismissal for misconduct.

 

		5.2	“Good leavers”1

 

		5.2.1	If a Participant ceases to be an Employee for any of the reasons set out below, then his Awards
will Vest as described in rules 5.3 (Vesting – Award subject to Performance Condition) and 5.4 (Vesting – Award not
subject to Performance Condition) and lapse as to the balance. The reasons are:

 

		(i)	disability, as established to the satisfaction of the Company;

 

		(ii)	death; and

 

		(iii)	any other reason, if the Directors so decide in any particular case.

 

		5.2.2	The Directors may only exercise the discretion provided for in rule 5.2.1(iii) within 30 days after
cessation of the relevant Participant’s employment.

 

		5.3	Vesting – Award subject to Performance Condition

 

Where rule 5.2 (“Good leavers”)
applies, the Award does not lapse, and the extent to which it will Vest is measured in accordance with rule 3.1 (Determination
of Performance Conditions) at the end of the Performance Period. However, the Performance Period in respect of an Award will be
treated as ending on the date of the termination of employment, and the Award will Vest immediately, to the extent that the Performance
Condition has been or is likely to be satisfied (as determined by the Directors in the manner specified in the Performance Condition
or in such manner as they consider reasonable) where a Participant has died or where the Directors so decide in their discretion.

 

Unless the Directors decide otherwise,
the Award should be reduced pro rata to reflect the number of days from the start of the Performance Period until cessation of
the Participant’s employment as a proportion of the number of days of the Performance Period.

 

		5.4	Vesting – Award not subject to Performance Condition

 

Where rule 5.2 (“Good leavers”)
applies and the Award is not subject to a Performance Condition, the Award does not lapse but will Vest, in the case of death,
immediately and otherwise on the date of Vesting set by the Directors on grant. However, the Directors may decide that the Award
should Vest either immediately or on any other date. The Awards will Vest in full unless the Directors decide otherwise, in which
case the Award will be reduced pro rata to reflect the period from the Award Date to the date of cessation of employment relative
to the Vesting period.

 

 

1 
This provision is amended with effect from 1 Jaunary 2013. For Awards granted prior to this date, please see previous
version of the Plan.

 

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		5.5	Overseas transfer

 

If a Participant remains an Employee
but is transferred to work in another country or changes tax residence status and, as a result he would:

 

		5.5.1	suffer a tax disadvantage in relation to his Awards (this being shown to the satisfaction of the
Directors); or

 

		5.5.2	become subject to restrictions on his ability to exercise his Awards or to hold or deal in the
Shares or the proceeds of the sale of the Shares acquired on exercise because of the security laws or exchange control laws of
the country to which he is transferred,

 

then the Directors may decide that
his Awards will Vest on a date they choose before or after the transfer takes effect. The Award will Vest to the extent they permit
and the Directors will decide whether any balance of the Award will lapse.

 

		5.6	Meaning of “ceasing to be an Employee”

 

For the purposes of rules 4 (Consequences
of Vesting) and 5 (Vesting in other circumstances – personal events), a Participant will not be treated as ceasing to be
an Employee until he is no longer an Employee of any Member of the Group or if he recommences employment with a Member of the Group
within 14 days or such other period and on such basis as the Directors decide.

 

		6	Vesting in other circumstances – corporate events

 

		6.1	Time of Vesting

 

		6.1.1	In the event of a Change of Control, an Award Vests subject to rules 6.1.2 and 6.3 (Exchange).
The Award lapses as to the balance except to the extent exchanged under rule 6.3 (Exchange).

 

		6.1.2	If the Company is or may be affected by any demerger, delisting, distribution (other than an ordinary
dividend) or other transaction, which, in the opinion of the Directors, might affect the current or future value of any Award,
the Directors may allow an Award to Vest. The Award will Vest to the extent specified in rule 6.2 (Extent of Vesting) and will
lapse as to the balance unless exchanged under rule 6.3 (Exchange). The Directors may impose other conditions on Vesting.

 

		6.2	Extent of Vesting

 

Where an Award vests under rule
6.1 (Time of Vesting):

 

		6.2.1	If the Award is subject to a Performance Condition, the Directors will determine the extent to
which any Performance Condition has been satisfied as at the date of Change of Control (as determined by the Directors in the manner
specified in the Performance Condition or in such manner as they consider reasonable) and the proportion of the Award which will
Vest. In addition, unless the Directors decide otherwise, the Award is reduced pro rata to reflect the number of days from the
start of the Performance Period until the date of Change of Control as a proportion of the number of days of the Performance Period.

 

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		6.2.2	If the Award is not subject to any Performance Condition, the Award will Vest in full unless the
Directors decide otherwise.

 

		6.3	Exchange

 

An Award will not Vest under rule
6.1 (Time of Vesting) but will be exchanged under rule 6.6 (Exchange terms) to the extent that:

 

		6.3.1	an offer to exchange the Award is made and accepted by a Participant; or

 

		6.3.2	the Directors, with the consent of the Acquiring Company, decide before Change of Control that
the Award will be automatically exchanged.

 

		6.4	Directors

 

In this rule 6 (Vesting in other
circumstances – corporate events), “Directors” means those people who were members of the remuneration
committee of the Company immediately before the Change of Control.

 

		6.5	Timing of exchange

 

Where an Award is to be exchanged
under rule 6.3 (Exchange) the exchange is effective immediately following the relevant event.

 

		6.6	Exchange terms

 

Where a Participant is granted
a new award in exchange for an existing Award, the new Award:

 

		6.6.1	must confer a right to acquire shares in the Acquiring Company or another body corporate determined
by the Acquiring Company;

 

		6.6.2	must be equivalent to the existing Award, subject to rule 6.6.4;

 

		6.6.3	is treated as having been acquired at the same time as the existing Award and, subject to rule
6.6.4, Vests in the same manner and at the same time;

 

		6.6.4	must:

 

		(i)	be subject to a Performance Condition which is, so far as possible, equivalent to any Performance
Condition applying to the existing Award; or

 

		(ii)	not be subject to any Performance Condition but be in respect of the number of shares which is
equivalent to the number of Shares comprised in the existing Award which would have Vested under rule 6.2.1 and Vest at the end
of the original Performance Period; or

 

		(iii)	be subject to such other terms as the Directors consider appropriate in all the circumstances,

 

		6.6.5	is governed by the Plan as if references to Shares were references to the shares over which the
new award is granted and references to the Company were references to the Acquiring Company or the body corporate determined under
rule 6.6.1 above.

 

    	9

    	 

    

 

		7	Changing the Plan and termination

 

		7.1	Powers of amendment

 

Except as described in rules 7.2
(Employees’ share scheme) and 7.3 (Shareholder approval), the Directors may at any time change the provisions of the Plan
in any respect. Schedules may be added to the Plan rules in order to facilitate variations in the operation of the Plan in different
countries.

 

		7.2	Employees’ share scheme

 

No amendment or operation of the
Plan will be effective to the extent that the Plan would cease to be an “employees’ share scheme” as defined
in Section 1166 of the Companies Act 2006.

 

		7.3	Shareholder approval

 

No amendment to the Plan may be
made, which would necessitate, under any law or regulation, the Plan’s approval by the Company in general meeting, until
such approval has been obtained.

 

		7.4	Notice

 

The Directors are not required
to give the Participant notice of any change made.

 

		7.5	Termination

 

The Plan will terminate on the
Expiry Date, but the Directors may terminate the Plan at any time before that date. The termination of the Plan will not affect
existing Awards.

 

		8	General

 

		8.1	Terms of employment

 

		8.1.1	This rule 8.1 (Terms of employment) applies during an Employee’s employment and after the
termination of an Employee’s employment, whether or not the termination is lawful.

 

		8.1.2	Nothing in the rules or the operation of the Plan forms part of the contract of employment of an
Employee. The rights and obligations arising from the employment relationship between the Employee and his employer are separate
from, and are not affected by, the Plan. Participation in the Plan does not create any right to, or expectation of, continued employment.

 

		8.1.3	No Employee has a right to participate in the Plan. Participation in the Plan or the grant of Awards
on a particular basis in any year does not create any right to or expectation of participation in the Plan or the grant of Awards
on the same basis, or at all, in any future year.

 

		8.1.4	The terms of the Plan do not entitle the Employee to the exercise of any discretion in his favour.

 

		8.1.5	The Employee will have no claim or right of action in respect of any decision, omission or discretion,
which may operate to the disadvantage of the Employee even if it is unreasonable, irrational or might otherwise be regarded as
being in breach of the duty of trust and confidence (and/or any other implied duty) between the Employee and his employer.

 

    	10

    	 

    

 

		8.1.6	No Employee has any right to compensation for any loss in relation to the Plan, including any loss
in relation to:

 

		(i)	any loss or reduction of rights or expectations under the Plan in any circumstances (including
lawful or unlawful termination of employment);

 

		(ii)	any exercise of a discretion or a decision taken in relation to an Award or to the Plan, or any
failure to exercise a discretion or take a decision;

 

		(iii)	the operation, suspension, termination or amendment of the Plan.

 

		8.2	Directors’ decisions final and binding

 

The decision of the Directors on
the interpretation of the Plan or in any dispute relating to an Award or matter relating to the Plan will be final and conclusive.

 

		8.3	Third party rights

 

Nothing in this Plan confers any
benefit, right or expectation on a person who is not a Participant. No such third party has any rights under the Contracts (Rights
of Third Parties) Act 1999, or any equivalent local legislation, to enforce any term of this Plan. This does not affect any other
right or remedy of a third party which may exist.

 

		8.4	Documents sent to shareholders

 

The Company is not required to
send to the Participant copies of any documents or notices normally sent to the holders of its Shares.

 

		8.5	Costs

 

The Company will pay the costs
of introducing and administering the Plan. The Company may ask a Participant’s employer to bear the costs in respect of an
Award to that Participant.

 

		8.6	Employee trust

 

The Company and any Subsidiary
may provide money to the trustee of any trust or any other person to enable them or him to acquire Shares to be held for the purposes
of the Plan, or enter into any guarantee or indemnity for those purposes, to the extent permitted by Section 682 of the Companies
Act 2006 or any applicable law.

 

		8.7	Data protection

 

By participating in the Plan the
Participant consents to the holding and processing of personal information provided by the Participant to any Member of the Group,
trustee or third party service provider, for all purposes relating to the operation of the Plan. These include, but are not limited
to:

 

		8.7.1	administering and maintaining Participant records;

 

		8.7.2	providing information to Members of the Group, trustees of any employee benefit trust, registrars,
brokers or third party administrators of the Plan;

 

    	11

    	 

    

 

		8.7.3	providing information to future purchasers or merger partners of the Company, the Participant’s
employing company, or the business in which the Participant works;

 

		8.7.4	transferring information about the Participant to a country or territory outside the European Economic
Area that may not provide the same statutory protection for the information as the Participant’s home country.

 

The Participant is entitled, on
payment of a fee, to a copy of the personal information held about him and, if anything is inaccurate, the Participant has the
right to have it corrected.

 

		8.8	Consents

 

All allotments, issues and transfers
of Shares will be subject to any necessary consents under any relevant enactments or regulations for the time being in force in
the United Kingdom or elsewhere. The Participant is responsible for complying with any requirements he needs to fulfil in order
to obtain or avoid the necessity for any such consent.

 

		8.9	Share rights

 

Shares issued to satisfy Awards
under the Plan will rank equally in all respects with the Shares in issue on the date of allotment. They will not rank for any
rights attaching to Shares by reference to a record date preceding the date of allotment. Where Shares are transferred to a Participant,
including a transfer out of treasury, the Participant will be entitled to all rights attaching to the Shares by reference to a
record date on or after the transfer date. The Participant will not be entitled to rights before that date.

 

		8.10	Listing

 

If and so long as the Shares are
listed and traded on a public market, the Company will apply for listing of any Shares issued under the Plan as soon as practicable.

 

		8.11	Notices

 

		8.11.1	Any information or notice to a person who is or will be eligible to be a Participant under or in
connection with the Plan may be posted, or sent by electronic means, in such manner to such address as the Company considers appropriate,
including publication on any intranet.

 

		8.11.2	Any information or notice to the Company or other duly appointed agent under or in connection with
the Plan may be sent by post or transmitted to it at its registered office or such other place, and by such other means, as the
Directors or duly appointed agent may decide and notify the Participant.

 

		8.11.3	Notices sent by post will be deemed to have been given on the second day after the date of posting.
However, notices sent by or to a Participant who is working overseas will be deemed to have been given on the seventh day after
the date of posting. Notices sent by electronic means, in the absence of evidence to the contrary, will be deemed to have been
received on the day after sending.

 

		8.12	Governing law and jurisdiction

 

English law governs the Plan and
all Awards and their construction. The English courts have non-exclusive jurisdiction in respect of disputes arising under or in
connection with the Plan or any Award.

 

    	12

    	 

    

 

		9	Definitions

 

In these rules:

 

“Acquiring Company”
means a person who has or obtains control (within the meaning of Section 995 of the Income Tax Act 2007) of the Company;

 

“Award” means
a Conditional Award, Restricted Shares or an Option;

 

“Award Date”
means the date on which an Award is granted by deed under rule 1.4;

 

“Change of Control”
means:

 

		(i)	when a general offer to acquire Shares made by a person (or a group of persons acting in concert)
becomes wholly unconditional; or

 

		(ii)	when, under Section 895 of the Companies Act 2006 or equivalent procedure under local legislation,
a court sanctions a compromise or arrangement in connection with the acquisition of Shares; or

 

		(iii)	a person (or a group of persons acting in concert) obtaining control (within the meaning of Section
995 of the Income Tax Act 2007) of the Company in any other way.

 

“Company” means
Aviva plc;

 

“Conditional Award”
means a conditional right to acquire Shares granted under the Plan;

 

“Dealing Restrictions”
means restrictions imposed by statute, order, regulation or Government directive, or by the Model Code or any code adopted by the
Company based on the Model Code and for this purpose the Model Code means the Model Code on dealings in securities set out in Listing
Rule 9, annex 1 (of the London Stock Exchange), as varied from time to time;

 

“Directors”
means, subject to rule 6.4, the board of directors of the Company or a duly authorised person or group of persons;

 

“Dividend Equivalent”
means a right to receive cash or Shares in respect of dividends (as determined from time to time by the Grantor), on such bases
as the Grantor may, in its discretion determine; 

 

“Employee” means
any employee of a Member of the Group (excluding an executive director of the Company);

 

“Expiry Date”
means 2 December 2021, the tenth anniversary of the adoption of the Plan;

 

“Restricted Shares”
means Shares held in the name of or for the benefit of a Participant subject to the Restricted Share Agreement;

 

“Restricted Share Agreement”
means the agreement referred to in rule 1.9;

 

“Grantor” means,
in respect of an Award, the entity which grants that Award under the Plan;

 

“London Stock Exchange”
means London Stock Exchange plc;

 

“Member of the Group”
means:

 

		(i)	the Company;

 

    	13

    	 

    

 

		(ii)	its Subsidiaries from time to time; or

 

		(iii)	any other company which is associated with the Company and is so designated by the Directors;

 

“Option” means
a right to acquire Shares granted under the Plan;

 

“Option Period”
means a period starting on the grant of an Option and ending at the end of the day before the tenth anniversary of the grant, or
such shorter period as may be specified under rule 4.2 on the grant of an Option;

 

“Option Price”
means zero, or the amount payable on the exercise of an Option, as specified under rule 1.4.8;

 

“Participant”
means a person holding an Award or his personal representatives;

 

“Performance Condition”
means any performance condition imposed under rule 1.4;

 

“Performance Period”
means the period in respect of which a Performance Condition is to be satisfied;

 

“Plan” means
these rules known as “The Aviva Recruitment and Retention Share Award Plan”, as changed from time to time;

 

“Shares” means
fully paid ordinary shares in the capital of the Company or any American Depository Share or American Depositary Receipt (ADR)
representing ordinary shares;

 

“Subsidiary”
means a company which is a subsidiary of the Company within the meaning of Section 1159 of the Companies Act 2006; and

 

“Vesting” in
relation to an Option, means an Option becoming exercisable; in relation to a Conditional Award, means a Participant becoming
entitled to have the Shares transferred to him subject to the Plan; and in relation to Restricted Shares, means the restrictions
set out in the Restricted Share Agreement ceasing to have effect as described in rule 4.3.

 

 

 

    	14

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