Document:

Exhibit
4.5

 

Company Number: 1833679

 

The
Companies Acts

 

 

Public
Company Limited by Shares

 

 

ARTICLES OF ASSOCIATION

 

OF

 

VODAFONE GROUP PUBLIC LIMITED COMPANY

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Article No.

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preliminary
  Articles

  	
   

  	
   

  	
   

  	
   

  
	
  Table A and other standard
  regulations do not apply

  	
   

  	
  1

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The
  meaning of words and phrases used in the Articles

  	
   

  	
  2

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders’
  Liabilities

  	
   

  	
  3

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed
  Rate Shares

  	
   

  	
   

  	
   

  	
   

  
	
  Right of Fixed Rate Shares
  to profits

  	
   

  	
  4

  	
   

  	
  8

  
	
  Right of Fixed Rate Shares
  to capital

  	
   

  	
  5

  	
   

  	
  8

  
	
  Voting rights of Fixed
  Rate Shares

  	
   

  	
  6

  	
   

  	
  9

  
	
  Varying the rights of
  Fixed Rate Shares

  	
   

  	
  7

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shares

  	
   

  	
   

  	
   

  	
   

  
	
  Fractions of shares

  	
   

  	
  8

  	
   

  	
  9

  
	
  The power to reduce
  capital

  	
   

  	
  9

  	
   

  	
  10

  
	
  The special rights of new
  shares

  	
   

  	
  10

  	
   

  	
  10

  
	
  The directors’ power to
  deal with shares

  	
   

  	
  11

  	
   

  	
  10

  
	
  Power to pay commission
  and brokerage

  	
   

  	
  12

  	
   

  	
  12

  
	
  No trusts or similar
  interests recognised

  	
   

  	
  13

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shares in
  Uncertificated Form

  	
   

  	
   

  	
   

  	
   

  
	
  Holding shares in
  uncertificated form and effect of the CREST Regulations

  	
   

  	
  14

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Share Certificates

  	
   

  	
   

  	
   

  	
   

  
	
  Certificates

  	
   

  	
  15

  	
   

  	
  14

  
	
  Replacement share
  certificates

  	
   

  	
  16

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Calls on
  Shares

  	
   

  	
   

  	
   

  	
   

  
	
  The directors can make
  calls on shares

  	
   

  	
  17

  	
   

  	
  15

  
	
  The liability for calls

  	
   

  	
  18

  	
   

  	
  16

  
	
  Interest and expenses on
  unpaid calls

  	
   

  	
  19

  	
   

  	
  16

  
	
  Sums which are payable when
  a share is allotted are treated as a call

  	
   

  	
  20

  	
   

  	
  16

  
	
  Calls can be for different
  amounts

  	
   

  	
  21

  	
   

  	
  16

  
	
  Paying calls early

  	
   

  	
  22

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forfeiting
  Shares

  	
   

  	
   

  	
   

  	
   

  
	
  Notice following
  non-payment of a call

  	
   

  	
  23

  	
   

  	
  17

  
	
  Contents of the notice

  	
   

  	
  24

  	
   

  	
  17

  
	
  Forfeiture if the notice
  is not complied with

  	
   

  	
  25

  	
   

  	
  17

  
	
  Forfeiture will include
  unpaid dividends

  	
   

  	
  26

  	
   

  	
  17

  

 

i

 

	
   

  	
   

  	
  Article No.

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Surrender

  	
   

  	
  27

  	
   

  	
  17

  
	
  Dealing with forfeited
  shares

  	
   

  	
  28

  	
   

  	
  18

  
	
  Cancelling forfeiture

  	
   

  	
  29

  	
   

  	
  18

  
	
  The position of
  shareholders after forfeiture

  	
   

  	
  30

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Liens on
  Partly-Paid Shares

  	
   

  	
   

  	
   

  	
   

  
	
  The Company’s lien on
  shares

  	
   

  	
  31

  	
   

  	
  18

  
	
  Enforcing the lien by
  selling the shares

  	
   

  	
  32

  	
   

  	
  19

  
	
  Using the proceeds of the
  sale

  	
   

  	
  33

  	
   

  	
  19

  
	
  Evidence of forfeiture or
  enforcement of lien

  	
   

  	
  34

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Changing
  Shares Rights

  	
   

  	
   

  	
   

  	
   

  
	
  Changing the special
  rights of shares

  	
   

  	
  35

  	
   

  	
  20

  
	
  More about the special
  rights of shares

  	
   

  	
  36

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Transferring
  Shares

  	
   

  	
   

  	
   

  	
   

  
	
  Share transfers

  	
   

  	
  37

  	
   

  	
  21

  
	
  More about transfers of
  shares in certificated form

  	
   

  	
  38

  	
   

  	
  21

  
	
  The Company can refuse to
  register certain transfers

  	
   

  	
  39

  	
   

  	
  21

  
	
  Overseas branch registers

  	
   

  	
  40

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Persons
  Automatically Entitled to Shares by Law

  	
   

  	
   

  	
   

  	
   

  
	
  When a shareholder dies

  	
   

  	
  41

  	
   

  	
  22

  
	
  Registering personal
  representatives

  	
   

  	
  42

  	
   

  	
  22

  
	
  A person who wants to be
  registered must give notice

  	
   

  	
  43

  	
   

  	
  22

  
	
  Having another person
  registered

  	
   

  	
  44

  	
   

  	
  23

  
	
  The rights of people
  automatically entitled to shares by law

  	
   

  	
  45

  	
   

  	
  23

  
	
  Prior notices binding

  	
   

  	
  46

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders
  Who Cannot Be Traced

  	
   

  	
   

  	
   

  	
   

  
	
  Shareholders who cannot be
  traced

  	
   

  	
  47

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  General
  Meetings

  	
   

  	
   

  	
   

  	
   

  
	
  The Annual General Meeting

  	
   

  	
  48

  	
   

  	
  24

  
	
  Calling a General Meeting

  	
   

  	
  49

  	
   

  	
  25

  
	
  Notice of General Meetings

  	
   

  	
  50

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Proceedings
  at General Meetings

  	
   

  	
   

  	
   

  	
   

  
	
  The chairman of a General
  Meeting

  	
   

  	
  51

  	
   

  	
  25

  
	
  Security, and other
  arrangements at General Meetings

  	
   

  	
  52

  	
   

  	
  26

  
	
  Overflow meeting rooms

  	
   

  	
  53

  	
   

  	
  27

  
	
  The quorum needed for
  General Meetings

  	
   

  	
  54

  	
   

  	
  27

  
	
  The procedure if there is
  no quorum

  	
   

  	
  55

  	
   

  	
  27

  
	
  Adjourning meetings

  	
   

  	
  56

  	
   

  	
  27

  
	
  Amending resolutions

  	
   

  	
  57

  	
   

  	
  28

  
	
  Satellite meeting places

  	
   

  	
  58

  	
   

  	
  28

  

 

ii

 

	
   

  	
   

  	
  Article No.

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Voting
  Procedures

  	
   

  	
   

  	
   

  	
   

  
	
  How votes are taken

  	
   

  	
  59

  	
   

  	
  29

  
	
  How a poll is taken

  	
   

  	
  60

  	
   

  	
  30

  
	
  Where there cannot be a
  poll

  	
   

  	
  61

  	
   

  	
  30

  
	
  A General Meeting
  continues after a poll is demanded

  	
   

  	
  62

  	
   

  	
  30

  
	
  Timing of a poll

  	
   

  	
  63

  	
   

  	
  30

  
	
  The effect of a
  declaration by the chairman

  	
   

  	
  64

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Voting
  Rights

  	
   

  	
   

  	
   

  	
   

  
	
  The votes of shareholders

  	
   

  	
  65

  	
   

  	
  31

  
	
  Shareholders who owe money
  to the Company

  	
   

  	
  66

  	
   

  	
  31

  
	
  Suspension of rights on
  non-disclosure of interest

  	
   

  	
  67

  	
   

  	
  32

  
	
  The votes of joint holders

  	
   

  	
  68

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Proxies

  	
   

  	
   

  	
   

  	
   

  
	
  Appointment of proxies

  	
   

  	
  69

  	
   

  	
  34

  
	
  Completing proxy forms

  	
   

  	
  70

  	
   

  	
  34

  
	
  Delivering proxy forms

  	
   

  	
  71

  	
   

  	
  35

  
	
  Cancellation of proxy’s
  authority

  	
   

  	
  72

  	
   

  	
  36

  
	
  Authority of proxies

  	
   

  	
  73

  	
   

  	
  37

  
	
  Representatives of
  companies

  	
   

  	
  74

  	
   

  	
  37

  
	
  Challenging votes

  	
   

  	
  75

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors

  	
   

  	
   

  	
   

  	
   

  
	
  The number of directors

  	
   

  	
  76

  	
   

  	
  37

  
	
  Qualification to be a
  director

  	
   

  	
  77

  	
   

  	
  37

  
	
  Directors’ fees and
  expenses

  	
   

  	
  78

  	
   

  	
  38

  
	
  Special pay

  	
   

  	
  79

  	
   

  	
  38

  
	
  Directors’ expenses

  	
   

  	
  80

  	
   

  	
  38

  
	
  Directors’ pensions and
  other benefits

  	
   

  	
  81

  	
   

  	
  39

  
	
  Appointing directors to
  various posts

  	
   

  	
  82

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Changing
  Directors

  	
   

  	
   

  	
   

  	
   

  
	
  Retiring directors

  	
   

  	
  83

  	
   

  	
  39

  
	
  Eligibility for
  re-election

  	
   

  	
  84

  	
   

  	
  40

  
	
  Re-electing a director who
  is retiring

  	
   

  	
  85

  	
   

  	
  40

  
	
  The power to fill
  vacancies and appoint extra directors

  	
   

  	
  86

  	
   

  	
  40

  
	
  Removing and appointing
  directors by an ordinary resolution

  	
   

  	
  87

  	
   

  	
  40

  
	
  When directors are
  disqualified

  	
   

  	
  88

  	
   

  	
  40

  
	
  Director ceasing to be a
  member of a committee

  	
   

  	
  89

  	
   

  	
  41

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors’
  Meetings

  	
   

  	
   

  	
   

  	
   

  
	
  Directors’ meetings

  	
   

  	
  90

  	
   

  	
  41

  
	
  Who can call directors’
  meetings

  	
   

  	
  91

  	
   

  	
  41

  
	
  How directors’ meetings
  are called

  	
   

  	
  92

  	
   

  	
  42

  

 

iii

 

	
   

  	
   

  	
  Article No.

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quorum

  	
   

  	
  93

  	
   

  	
  42

  
	
  The Chairman of directors’
  meetings

  	
   

  	
  94

  	
   

  	
  42

  
	
  Voting at directors’
  meetings

  	
   

  	
  95

  	
   

  	
  42

  
	
  Directors can act even if
  there are vacancies

  	
   

  	
  96

  	
   

  	
  42

  
	
  Directors’ meetings by
  video conference and telephone

  	
   

  	
  97

  	
   

  	
  43

  
	
  Directors’ written
  resolutions

  	
   

  	
  98

  	
   

  	
  43

  
	
  The validity of directors’
  actions

  	
   

  	
  99

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors’
  Interests

  	
   

  	
   

  	
   

  	
   

  
	
  Authorisation of
  directors’ interests

  	
   

  	
  100

  	
   

  	
  44

  
	
  Directors may have
  interests

  	
   

  	
  101

  	
   

  	
  45

  
	
  Restrictions on quorum and
  voting

  	
   

  	
  102

  	
   

  	
  46

  
	
  Confidential information

  	
   

  	
  103

  	
   

  	
  47

  
	
  Directors’ interests -
  general

  	
   

  	
  104

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors’
  Committees

  	
   

  	
   

  	
   

  	
   

  
	
  Delegating powers to
  committees

  	
   

  	
  105

  	
   

  	
  48

  
	
  Committee procedure

  	
   

  	
  106

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors’
  Powers

  	
   

  	
   

  	
   

  	
   

  
	
  The directors’ management
  powers

  	
   

  	
  107

  	
   

  	
  49

  
	
  Provision for employees on
  cessation or transfer of business

  	
   

  	
  108

  	
   

  	
  49

  
	
  The power to establish
  local boards

  	
   

  	
  109

  	
   

  	
  49

  
	
  The power to appoint attorneys

  	
   

  	
  110

  	
   

  	
  50

  
	
  Bank mandates

  	
   

  	
  111

  	
   

  	
  50

  
	
  Name

  	
   

  	
  112

  	
   

  	
  51

  
	
  Borrowing powers

  	
   

  	
  113

  	
   

  	
  51

  
	
  Borrowing restrictions

  	
   

  	
  114

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Alternate
  Directors

  	
   

  	
   

  	
   

  	
   

  
	
  Alternate directors

  	
   

  	
  115

  	
   

  	
  52

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The
  Secretary

  	
   

  	
   

  	
   

  	
   

  
	
  The Secretary and deputy
  and assistant secretaries

  	
   

  	
  116

  	
   

  	
  53

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Seal

  	
   

  	
   

  	
   

  	
   

  
	
  The Seal

  	
   

  	
  117

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Authenticating
  Documents

  	
   

  	
   

  	
   

  	
   

  
	
  Establishing that
  documents are genuine

  	
   

  	
  118

  	
   

  	
  55

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dividends

  	
   

  	
   

  	
   

  	
   

  
	
  Final dividends

  	
   

  	
  119

  	
   

  	
  55

  
	
  Fixed and interim
  dividends

  	
   

  	
  120

  	
   

  	
  55

  
	
  Dividends not in cash

  	
   

  	
  121

  	
   

  	
  56

  
	
  Calculation and currency
  of dividends

  	
   

  	
  122

  	
   

  	
  56

  

 

iv

 

	
   

  	
   

  	
  Article No.

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deducting
  amounts owing from dividends and other money

  	
   

  	
  123

  	
   

  	
  56

  
	
  Payments
  to shareholders

  	
   

  	
  124

  	
   

  	
  57

  
	
  Record
  dates for payments and other matters

  	
   

  	
  125

  	
   

  	
  58

  
	
  No
  interest on dividends

  	
   

  	
  126

  	
   

  	
  58

  
	
  Retention
  of dividends

  	
   

  	
  127

  	
   

  	
  58

  
	
  Dividends
  which are not claimed

  	
   

  	
  128

  	
   

  	
  58

  
	
  Waiver
  of dividends

  	
   

  	
  129

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capitalising Reserves

  	
   

  	
   

  	
   

  	
   

  
	
  Capitalising
  reserves

  	
   

  	
  130

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Scrip Dividends

  	
   

  	
   

  	
   

  	
   

  
	
  Ordinary
  Shareholders can be offered the right to receive extra

  	
   

  	
  131

  	
   

  	
  60

  
	
  shares
  instead of cash dividends

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts

  	
   

  	
   

  	
   

  	
   

  
	
  Accounting
  and other records

  	
   

  	
  132

  	
   

  	
  62

  
	
  Location
  and inspection of records

  	
   

  	
  133

  	
   

  	
  62

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Communications with Shareholders

  	
   

  	
   

  	
   

  	
   

  
	
  Serving
  and delivering notices and other documents

  	
   

  	
  134

  	
   

  	
  62

  
	
  Notices
  to joint holders

  	
   

  	
  135

  	
   

  	
  63

  
	
  Notices
  for shareholders with foreign addresses

  	
   

  	
  136

  	
   

  	
  63

  
	
  When
  notices are served

  	
   

  	
  137

  	
   

  	
  63

  
	
  Serving
  notices and documents on shareholders who have died or are bankrupt

  	
   

  	
  138

  	
   

  	
  64

  
	
  If
  documents are accidentally not sent or the postal services are suspended

  	
   

  	
  139

  	
   

  	
  65

  
	
  When
  entitlement to notices stops

  	
   

  	
  140

  	
   

  	
  65

  
	
  Signature
  or authentication of documents sent electronically

  	
   

  	
  141

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minutes

  	
   

  	
   

  	
   

  	
   

  
	
  Minutes

  	
   

  	
  142

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Winding Up

  	
   

  	
   

  	
   

  	
   

  
	
  Directors’
  power to petition

  	
   

  	
  143

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Destroying Documents

  	
   

  	
   

  	
   

  	
   

  
	
  Destroying
  documents

  	
   

  	
  144

  	
   

  	
  66

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors’ Liabilities

  	
   

  	
   

  	
   

  	
   

  
	
  Indemnity

  	
   

  	
  145

  	
   

  	
  67

  
	
  Insurance
  and defence funding

  	
   

  	
  146

  	
   

  	
  68

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Share Warrants

  	
   

  	
   

  	
   

  	
   

  
	
  Issue
  of Share Warrants

  	
   

  	
  147

  	
   

  	
  69

  

 

v

 

	
   

  	
   

  	
  Article No.

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Directors can accept a
  certificate instead of a Share Warrant

  	
   

  	
  148

  	
   

  	
  70

  
	
  Requesting a Share Warrant

  	
   

  	
  149

  	
   

  	
  70

  
	
  Replacing Share Warrants

  	
   

  	
  150

  	
   

  	
  70

  
	
  Rights of the Bearer

  	
   

  	
  151

  	
   

  	
  71

  
	
  Bearers of Share Warrants
  participating in securities offers

  	
   

  	
  152

  	
   

  	
  71

  
	
  Communications with
  Bearers of Share Warrants

  	
   

  	
  153

  	
   

  	
  72

  
	
  Issuing shares to which
  the Share Warrant relates

  	
   

  	
  154

  	
   

  	
  72

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADR
  Depositary

  	
   

  	
   

  	
   

  	
   

  
	
  ADR Depositary can appoint
  proxies

  	
   

  	
  155

  	
   

  	
  73

  
	
  The ADR Depositary must
  keep a Proxy Register

  	
   

  	
  156

  	
   

  	
  73

  
	
  Appointed Proxies can only
  attend General Meetings if properly appointed

  	
   

  	
  157

  	
   

  	
  73

  
	
  Rights of Appointed
  Proxies

  	
   

  	
  158

  	
   

  	
  73

  
	
  Sending information to an
  Appointed Proxy

  	
   

  	
  159

  	
   

  	
  74

  
	
  The Company can pay
  dividends to an Appointed Proxy

  	
   

  	
  160

  	
   

  	
  74

  
	
  The Proxy Register may be
  fixed at a certain date

  	
   

  	
  161

  	
   

  	
  74

  
	
  The nature of an Appointed
  Proxy’s interest

  	
   

  	
  162

  	
   

  	
  75

  
	
  Validity of the
  appointment of Appointed Proxies

  	
   

  	
  163

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Approved
  Depositaries

  	
   

  	
   

  	
   

  	
   

  
	
  Appointments

  	
   

  	
  164

  	
   

  	
  75

  
	
  Rights of Nominated
  Proxies

  	
   

  	
  165

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Glossary

  	
   

  	
   

  	
   

  	
  77

  

 

vi

 

Company Number: 1833679

 

The Companies Acts

 

Company Limited by Shares

 

ARTICLES OF ASSOCIATION

 

Adopted
on 27 July 2010 pursuant to a Special Resolution passed on 27 July 2010.

 

of

 

VODAFONE GROUP PUBLIC LIMITED COMPANY

 

PRELIMINARY ARTICLES

 

1                                         Table A and other standard regulations do not apply

 

The
regulations in Table A of the Companies Act 1948, and any similar articles or
regulations in the Companies Acts do
not apply to the Company.

 

2                                         The meaning of words and phrases used in the Articles

 

2.1                               The following
table gives the meaning of certain words and phrases as they are used in these Articles. However, the meaning given in the
table does not apply if that is inconsistent with the context in which a word
or phrase appears. After the Articles there
is a glossary which explains various words and phrases. The glossary is not
part of the Articles, and it does
not affect their meaning. Throughout the Articles,
those words and expressions explained in this Article 2.1 are printed in bold and those explained in the glossary
are printed in italics.

 

	
  Words and Phrases

  	
   

  	
  Meaning

  
	
   

  	
   

  	
   

  
	
  Act

  	
   

  	
  Any act of Parliament,
  enactment or statutory legislation.

  
	
   

  	
   

  	
   

  
	
  Adjusted
  Total of Capital  and Reserves

  	
   

  	
  This is defined in
  Article 114.2.

  
	
   

  	
   

  	
   

  
	
  ADR
  Depositary 

  	
   

  	
  A custodian or other
  person or persons approved by the directors who:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  holds shares in the Company under arrangements where either the custodian or
  some other person issues American
  Depositary Receipts which evidence American Depositary Shares representing shares in the Company; and/or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  is appointed by or on
  behalf of the Company to hold Share Warrants.

  

 

1

 

	
  Words and
  Phrases

  	
   

  	
  Meaning

  
	
   

  	
   

  	
   

  
	
  alternate
  director

  	
   

  	
  This is defined in
  Article 115.1.

  
	
   

  	
   

  	
   

  
	
  American
  Depositary  Receipts

  	
   

  	
  These represent American Depositary Shares either physically
  or in the form of Direct Registration
  Receipts.

  
	
   

  	
   

  	
   

  
	
  American
  Depositary  Shares

  	
   

  	
  These represent shares in the Company and are evidenced by American Depositary Receipts.

  
	
   

  	
   

  	
   

  
	
  Appointed
  Number 

  	
   

  	
  The number of Depositary Shares to which each appointment
  as a Nominated Proxy relates.

  
	
   

  	
   

  	
   

  
	
  Appointed
  Proxy

  	
   

  	
  This is defined in
  Article 155.1.

  
	
   

  	
   

  	
   

  
	
  Approved
  Depositary

  	
   

  	
  Someone appointed:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  to hold the shares in the Company or any rights or interests in any of the shares in the Company; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  to issue securities, documents of title or other documents which
  evidence that the holder of them owns or is entitled to receive the shares,
  rights or interests held by the Approved
  Depositary.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A nominee acting for
  someone appointed to do these things will also be treated as an Approved Depositary. The arrangements for
  the Approved Depositary to do
  the things described above must be approved by the directors. The trustees of any scheme or arrangements
  for or principally for the benefit of employees of the Group will also be treated as an Approved Depositary unless the directors
  decide otherwise. References in the Articles
  to an Approved Depositary or
  to shares held by it refer only to an Approved
  Depositary and to shares held by it in its capacity as an Approved Depositary.

  
	
   

  	
   

  	
   

  
	
  approved
  transfer 

  	
   

  	
  This is defined in
  Article 67.11, for the purposes of Article 67.

  
	
   

  	
   

  	
   

  
	
  Articles 

  	
   

  	
  The Company’s Articles of Association,
  including any changes made to them.

  
	
   

  	
   

  	
   

  
	
  Associated
  Company

  	
   

  	
  This is defined in
  Article 145.4, for the purposes of Article 145.

  
	
   

  	
   

  	
   

  
	
  Bearer

  	
   

  	
  This is defined in
  Article 147.1.

  
	
   

  	
   

  	
   

  
	
  Borrowings

  	
   

  	
  This is defined in
  Article 114.2, for the purposes of Article 114.

  
	
   

  	
   

  	
   

  
	
  certificated
  form

  	
   

  	
  This is defined in
  Article 2.18.

  
	
   

  	
   

  	
   

  
	
  class
  meeting

  	
   

  	
  This is defined in
  Article 35.1.

  
	
   

  	
   

  	
   

  
	
  Common
  Seal 

  	
   

  	
  Any seal which the Company may have under the Companies Acts and which the Company may use to execute documents.

  

 

2

 

	
  Words and
  Phrases

  	
   

  	
  Meaning

  
	
   

  	
   

  	
   

  
	
  Companies
  Act 2006 

  	
   

  	
  The company law provisions
  of the Companies Act 2006 (as defined therein), for the time being in force.

  
	
   

  	
   

  	
   

  
	
  Companies
  Acts 

  	
   

  	
  The Companies Acts as defined in
  Section 2 of the Companies Act 2006 (where
  provisions are for the time being in force), the CREST Regulations and other legislation relating to companies and affecting the Company (including any orders,
  regulations or other subordinated legislation
  made under them) in force from time to time.

  
	
   

  	
   

  	
   

  
	
  Company
  Communications  Provisions

  	
   

  	
  The meaning of company
  communications provisions is given in the Companies
  Acts.

  
	
   

  	
   

  	
   

  
	
  company 

  	
   

  	
  Includes any company,
  corporate body and any corporation established anywhere in the world.

  
	
   

  	
   

  	
   

  
	
  company
  representative

  	
   

  	
  This is defined in
  Article 74.

  
	
   

  	
   

  	
   

  
	
  the
  Company

  	
   

  	
  Vodafone Group Public
  Limited Company.

  
	
   

  	
   

  	
   

  
	
  CREST
  Regulations

  	
   

  	
  The Uncertificated
  Securities Regulations 2001.

  
	
   

  	
   

  	
   

  
	
  default
  shares

  	
   

  	
  This is defined in
  Article 67.1, for the purposes of Article 67.

  
	
   

  	
   

  	
   

  
	
  Depositary
  Shares 

  	
   

  	
  The total number of Ordinary Shares which are registered in
  the name of the Approved Depositary or
  its nominee at that time.

  
	
   

  	
   

  	
   

  
	
  Direct
  Registration Receipt 

  	
   

  	
  An American Depositary Receipt in uncertificated form, the ownership of
  which is recorded in the Direct Registration
  System.

  
	
   

  	
   

  	
   

  
	
  Direct
  Registration System 

  	
   

  	
  The system maintained by
  the ADR Depositary in which the ADR Depositary records the ownership of Direct Registration Receipts.

  
	
   

  	
   

  	
   

  
	
  direction
  notice

  	
   

  	
  This is defined in
  Article 67.3 for the purposes of Article 67.

  
	
   

  	
   

  	
   

  
	
  elected
  shares

  	
   

  	
  This is defined in
  Article 131.10.

  
	
   

  	
   

  	
   

  
	
  electronic
  form

  	
   

  	
  This is defined in
  Article 2.21.

  
	
   

  	
   

  	
   

  
	
  electronic
  means

  	
   

  	
  This is defined in
  Article 2.21.

  
	
   

  	
   

  	
   

  
	
  Fixed
  Rate Shares

  	
   

  	
  The 7 per cent cumulative fixed rate shares of £1 each
  in the Company.

  
	
   

  	
   

  	
   

  
	
  General
  Meeting 

  	
   

  	
  Any general meeting of the
  Company, including any general
  meeting held as the Company’s Annual
  General Meeting.

  
	
   

  	
   

  	
   

  
	
  Group

  	
   

  	
  This is defined in
  Article 114.2, for the purposes of Article 114.

  
	
   

  	
   

  	
   

  
	
  London
  Stock Exchange

  	
   

  	
  London Stock Exchange plc.

  

 

3

 

	
  Words and
  Phrases

  	
   

  	
  Meaning

  
	
   

  	
   

  	
   

  
	
  Nominated
  Proxy 

  	
   

  	
  Each person the Approved Depositary has appointed as a
  proxy under Article 164.1.

  
	
   

  	
   

  	
   

  
	
  Nominated
  Proxy Register

  	
   

  	
  This is defined in
  Article 164.2, for the purposes of Articles 164 and 165.

  
	
   

  	
   

  	
   

  
	
  operator 

  	
   

  	
  Euroclear UK &
  Ireland Limited or any other operator of a relevant system under the CREST Regulations.

  
	
   

  	
   

  	
   

  
	
  Ordinary
  Shareholder

  	
   

  	
  A holder of the Company’s Ordinary Shares.

  
	
   

  	
   

  	
   

  
	
  Ordinary
  Shares

  	
   

  	
  Ordinary shares of US$0.113/7 each in the Company.

  
	
   

  	
   

  	
   

  
	
  paid-up
  share or other  security

  	
   

  	
  Includes a share or other security which is treated or credited as paid-up.

  
	
   

  	
   

  	
   

  
	
  pay

  	
   

  	
  Includes any kind of
  reward or payment for services.

  
	
   

  	
   

  	
   

  
	
  principal
  meeting place

  	
   

  	
  This is defined in
  Article 58.2.

  
	
   

  	
   

  	
   

  
	
  Procedural
  Resolution 

  	
   

  	
  A resolution or question
  put to the vote of a General  Meeting of a procedural nature (such as a
  resolution on a simple clerical amendment to correct an obvious error in a Substantive Resolution, a resolution to
  adjourn a General Meeting or a
  resolution on the choice of chairman of a General
  Meeting).

  
	
   

  	
   

  	
   

  
	
  proxy
  form 

  	
   

  	
  This includes any
  document, electronic form or
  website based form which appoints a proxy.

  
	
   

  	
   

  	
   

  
	
  Proxy
  Register

  	
   

  	
  This is defined in
  Article 156.1.

  
	
   

  	
   

  	
   

  
	
  recognised
  clearing house 

  	
   

  	
  A clearing house granted
  recognition under the Financial Services and Markets Act 2000.

  
	
   

  	
   

  	
   

  
	
  recognised
  investment  exchange

  	
   

  	
  An investment exchange
  granted recognition under the Financial Services and Markets Act 2000.

  
	
   

  	
   

  	
   

  
	
  Record
  Date 

  	
   

  	
  This is defined in
  Article 161.1, for the purposes of Article 161.

  
	
   

  	
   

  	
   

  
	
  Record
  Time 

  	
   

  	
  This is defined in
  Article 165.4, for the purposes of Article 165.

  
	
   

  	
   

  	
   

  
	
  Register

  	
   

  	
  The Company’s register of members.

  
	
   

  	
   

  	
   

  
	
  Registered
  Office 

  	
   

  	
  The Company’s registered office or in the
  case of sending or supplying any document or information by electronic  means or by means of a website in accordance with the Companies Acts and these Articles, the address stated for the
  purpose of receiving such document or information by electronic means or by means of a
  website.

  
	
   

  	
   

  	
   

  
	
  Relevant
  Company 

  	
   

  	
  This is defined in
  Article 101.5, for the purposes of Article 101.

  

 

4

 

	
  Words and
  Phrases

  	
   

  	
  Meaning

  
	
   

  	
   

  	
   

  
	
  relevant
  system 

  	
   

  	
  A relevant system under the CREST Regulations whose operator allows shares or other securities of the Company to be transferred using that
  system.

  
	
   

  	
   

  	
   

  
	
  relevant
  value 

  	
   

  	
  This is defined in
  Article 131.5, for the purposes of Article 131.

  
	
   

  	
   

  	
   

  
	
  rights of any share 

  	
   

  	
  The rights attached to a share when it is issued, or afterwards.

  
	
   

  	
   

  	
   

  
	
  satellite
  chairman

  	
   

  	
  This is defined in
  Article 58.7.

  
	
   

  	
   

  	
   

  
	
  satellite
  meeting

  	
   

  	
  This is defined in
  Article 58.2.

  
	
   

  	
   

  	
   

  
	
  Secretary
  

  	
   

  	
  Any person appointed by
  the directors to do work as the company secretary including where the context
  allows any assistant or deputy secretary.

  
	
   

  	
   

  	
   

  
	
  securities
  offer 

  	
   

  	
  This is defined in
  Article 152.3, for the purposes of Article 152.

  
	
   

  	
   

  	
   

  
	
  Securities
  Seal 

  	
   

  	
  A seal used to stamp the Company’s securities as evidence that the Company has issued them.
  The Company’s Securities Seal is
  a facsimile of the Company’s Common Seal but
  with the addition of the word “securities”.

  
	
   

  	
   

  	
   

  
	
  Share
  Warrant

  	
   

  	
  A share warrant to bearer
  issued by the Company.

  
	
   

  	
   

  	
   

  
	
  shareholder

  	
   

  	
  A holder of the Company’s shares.

  
	
   

  	
   

  	
   

  
	
  shareholders’
  meeting 

  	
   

  	
  A meeting of shareholders including both a General  Meeting
  of the Company and a class meeting.

  
	
   

  	
   

  	
   

  
	
  shares

  	
   

  	
  Shares which are in issue at the relevant time.

  
	
   

  	
   

  	
   

  
	
  sterling

  	
   

  	
  The currency of the United Kingdom.

  
	
   

  	
   

  	
   

  
	
  subsidiary
  

  	
   

  	
  A subsidiary as defined in
  Section 1159 of the Companies
  Act 2006.

  
	
   

  	
   

  	
   

  
	
  subsidiary
  undertaking 

  	
   

  	
  A subsidiary undertaking as defined in
  Section 1162 of the Companies Act 2006.

  
	
   

  	
   

  	
   

  
	
  Substantive
  Resolution 

  	
   

  	
  Any resolution or question
  put to the vote of a General  Meeting which is not a Procedural Resolution.

  
	
   

  	
   

  	
   

  
	
  takeover
  offer 

  	
   

  	
  A takeover offer as
  defined in Section 974 of the Companies
  Act 2006.

  
	
   

  	
   

  	
   

  
	
  terms of a share

  	
   

  	
  The terms on which a share was issued.

  

 

5

 

	
  Words and
  Phrases

  	
   

  	
  Meaning

  
	
   

  	
   

  	
   

  
	
  Transfer
  Office 

  	
   

  	
  The place where the Register is kept or in the case of sending
  or supplying any document or information by electronic
  means or by means of a website in accordance with the Companies Acts and these Articles, the address stated for the
  purpose of receiving such document or information by electronic means or by means of a website.

  
	
   

  	
   

  	
   

  
	
  UK
  Listing Authority 

  	
   

  	
  The Financial Services
  Authority in its capacity as the competent authority for official listing
  under Part VI of the Financial Services and Markets Act 2000.

  
	
   

  	
   

  	
   

  
	
  uncertificated
  form

  	
   

  	
  This is defined in
  Article 2.19.

  
	
   

  	
   

  	
   

  
	
  United
  Kingdom

  	
   

  	
  Great Britain and Northern
  Ireland.

  
	
   

  	
   

  	
   

  
	
  working
  day 

  	
   

  	
  A day on which banks in
  the United Kingdom are generally
  open for business, excluding Saturdays, Sundays and public holidays.

  

 

2.2                               References to a
debenture include debenture stock and references to a debenture holder include a debenture stockholder.

 

2.3                               Where the Articles refer to a person who is automatically entitled to a share by law, this includes a
person who is entitled to the share as a result of the death, or bankruptcy, of
a shareholder.

 

2.4                               Words which refer
to a single number also refer to plural numbers, and the other way around.

 

2.5                               Words which
refer to males also refer to females and to other persons.

 

2.6                               The words
“including” and “include” and words of similar effect shall not be deemed to
limit the general effect of the words which precede them.

 

2.7                               References to a
person or people include companies,
unincorporated associations and
so on.

 

2.8                               References to officers include directors, managers and
the Secretary, but not the Company’s auditors.

 

2.9                               References to
the directors are to the board of directors unless the way in which directors
is used does not allow this meaning.

 

2.10                        Any headings in
these Articles are only included
for convenience. They do not affect the meaning of the Articles. References to an Article are to a numbered paragraph of
these Articles.

 

2.11                        When an Act or the Articles are referred to, the version which is current at any
particular time will apply.

 

2.12                        Where the Articles give any power or authority to
anybody, this power or authority can be used on any number of occasions, unless
the way in which the word is used does not allow this meaning.

 

6

 

2.13                        Any word or
phrase which is defined in the Companies Acts
(excluding any modification to them by a further Act which is not in force when these Articles are adopted) means the same in the
Articles, unless the Articles define it differently, or the way
in which the word or phrase is used is inconsistent with the definition given in
the Companies Acts.

 

2.14                        Where the Articles say that anything can be done by
passing an ordinary resolution,
this can also be done by passing a special
resolution.

 

2.15                        Where the Articles refer to any document being made effective this means being signed,
sealed, authenticated or executed in
some other legally valid way.

 

2.16                        Where the Articles refer to months or years,
these are calendar months or years.

 

2.17                        Articles which apply to fully-paid
shares can also apply
to stock. References in those Articles to share or shareholder include
stock or stockholder.

 

2.18                        Where the Articles refer to shares in certificated
form, this means that ownership of the shares can be transferred using a transfer document (rather
than in accordance with the CREST Regulations)
and that a share certificate is usually issued to the owner.

 

2.19                        Where the Articles refer to shares in uncertificated
form, this means that ownership of the shares can be transferred in accordance with the CREST Regulations without using a written transfer
document and that no share certificate is issued to the owner.

 

2.20                        Where the Articles refer to a period of clear days, the period does not
include the date the notice is delivered, or treated as being delivered, nor
the date of the General Meeting or other relevant event.

 

2.21                        The expressions
“hard copy form”, “electronic form” and “electronic means” shall have the same
respective meanings as in the Company
Communications Provisions.

 

2.22                        The term address when used in relation to
communications via electronic means or
by means of a website includes any number or address used for the purposes of
such communication.

 

2.23                        Where the Articles refer to anything that should be in writing, this means it should be written
or produced by any substitute for writing (including anything in electronic
form) or partly one and partly another.

 

2.24                        References to a
person being present at a General Meeting include
a person present by company representative.

 

SHAREHOLDERS’ LIABILITIES

 

3                                         Each shareholder’s liability (as a shareholder) is limited to the amount (if
any) that is unpaid on the shares that
he or she holds.

 

7

 

FIXED RATE SHARES

 

4                                         Right of Fixed Rate Shares to profits

 

4.1                               If the Company has profits which are available for
distribution and the directors resolve that these should be distributed, the
holders of the Fixed Rate Shares are
entitled, before the holders of any other class of shares, to be paid in respect of each financial year or other
accounting period of the Company a
fixed cumulative preferential
dividend (“preferential dividend”)
at the rate of 7 per cent. per annum on the nominal
value of the Fixed Rate Shares which
is paid-up or treated as paid-up.

 

4.2                               Subject
to Article 4.3 below, the preferential
dividend will be paid yearly, on 31 March in respect of each
financial year ending on or before that date. If this date is not a working day, the payment will be made on
the next working day.

 

4.3                               When the Company has to calculate a dividend on the Fixed Rate Shares for a period other than a
calendar year ending on 31 March (being another accounting period, the
first dividend period arising for the Fixed
Rate Shares or otherwise), the daily dividend rate will be worked
out by dividing the yearly dividend rate by 365 days. This daily rate will then
be multiplied by the actual number of days which have passed in the relevant
period, but not including the date of payment, to give the amount payable for
that period.

 

4.4                               Except as
provided in this Article, the Fixed Rate
Shares do not have any other right to share in the Company’s profits.

 

5                                         Right of Fixed Rate Shares to capital

 

5.1                               If the Company is wound
up (but in no other circumstances involving a repayment of capital
or distribution of assets to shareholders whether by reduction of
capital, redeeming or buying back
shares or otherwise), the holders
of the Fixed Rate Shares will be
entitled, before the holders of any other class of shares to:

 

·                                          repayment of
the amount paid-up or treated as paid-up on the nominal value of each Fixed
Rate Share;

 

·                                          the amount of
any dividend which is due for payment on, or after, the date the winding up commenced which is payable for
a period ending on or before that date.  This
applies even if the dividend has not been declared
or earned;

 

·                                          any dividend arrears on any Fixed Rate Shares held by them. This
applies even if the dividend has not been declared
or earned; and

 

·                                          a proportion of
any dividend in respect of the financial year or other accounting period which
began before the winding up commenced
but ends after that date.  The proportion
will be the amount of the dividend that would otherwise have been payable for
the period which ends on that date. This applies even if the dividend has not
been declared or earned.

 

5.2                               If there is a winding up to which Article 5.1
applies, and there is not enough to pay the amounts due on the Fixed Rate Shares, the holders of the Fixed Rate Shares will share what is
available in proportion to the amounts to which they would otherwise be
entitled.  The holders of the Fixed Rate Shares will be given preference
over the holders of other classes of shares which
rank behind them in sharing in
the Company’s assets.

 

8

 

5.3                               Except as
provided in this Article 5, the Fixed
Rate Shares do not have any other right to share in the Company’s surplus assets.

 

6                                         Voting rights of Fixed Rate Shares

 

6.1                               The holders of
the Fixed Rate Shares are only
entitled to receive notice of General
Meetings, or to attend, speak and vote at General Meetings, as set out below.

 

·                                          If a resolution
is to be proposed at the General Meeting to
wind up the Company, they are entitled to receive
notice of the General Meeting and
can attend, but are not entitled to speak or vote.

 

·                                          If a resolution
is to be proposed at the General Meeting which
would vary or abrogate the rights attached to the Fixed Rate Shares, they are entitled to
receive notice of the General Meeting and
are entitled to attend, speak and vote but only in respect of such resolution
or any motion to adjourn the General Meeting before such resolution is
voted on.

 

6.2                               If the holders
of the Fixed Rate Shares are
entitled to vote at a General Meeting,
each holder of a Fixed Rate Share present
in person or by proxy has one
vote on a show of hands and on a poll every holder of a Fixed Rate Share who is present in person
or by proxy shall have one vote
in respect of each fully-paid Fixed Rate Share.

 

7                                         Varying the rights of Fixed Rate Shares

 

The
rights of the holders of the Fixed Rate Shares will be regarded as being
varied or abrogated if any
resolution is passed for the reduction of the amount of capital paid-up on the Fixed Rate Shares but not for the repayment of the Fixed Rate Shares at par value.

 

Accordingly,
this can only take place if:

 

·                                          holders of at
least three quarters in nominal value of
the Fixed Rate Shares agree in
writing; or

 

·                                          a special resolution is passed at a separate
class meeting by the holders of
the Fixed Rate Shares approving
the proposal,

 

in
accordance with Article 35.

 

SHARES

 

8                                         Fractions of shares

 

8.1                               If any shares are consolidated
or divided, the directors have the power to deal with any fractions
of shares which result or any
other difficulty that arises. Subject to Article 8.3,
if the directors decide to sell any shares representing
fractions, they must do so for the best price reasonably obtainable and
distribute the net proceeds of sale among shareholders
in proportion to their fractional entitlements in accordance with
their rights and interests.  The directors can sell to any person
(including the Company, if the Companies Acts allow this) and can
authorise any person to transfer those shares
to the buyer or in accordance with the buyer’s instructions. The
buyer does not need to take any steps to see how any

 

9

 

money
he paid is used. Nor will his ownership of the shares be affected if the sale was irregular or invalid in any
way.

 

8.2                               So far as the Companies Acts allow, when shares are consolidated
or divided, the directors can treat a shareholder’s shares which are held in certificated form and in uncertificated form as separate
shareholdings. The directors can also arrange for any shares which result from a consolidation or division and which
represent rights to fractions of shares to
be entered in the Register as shares in certificated
form where this makes it easier to sell them.

 

8.3                               Where any shareholder’s entitlement to a portion of
the proceeds of sale amounts to less than £3, that shareholder’s portion may at the directors’ discretion be
distributed to an organisation which is a charity for the purposes of the laws
of England and Wales.

 

9                                         The power to reduce capital

 

The
Company’s shareholders can pass a special resolution to reduce in any way:

 

·                                          the Company’s share capital; or

 

·                                          any capital redemption reserve, share premium account or other
undistributable reserve.

 

This
is subject to any restrictions
under the Companies Acts.

 

10                                  The special rights of new shares

 

10.1                        If the Company issues
new shares, the new shares can have any rights or restrictions attached to them.
The rights can take priority over
the rights of existing shares, or existing shares can take priority over them, or the
new shares and the existing shares can rank
equally. These rights and
restrictions can apply to sharing in the Company’s
profits or assets.
Other rights and restrictions can
also apply, for example to the right to vote.

 

10.2                        The powers
conferred by Article 10.1 are subject
to the provisions of Article 10.5.

 

10.3                        The rights and restrictions referred to in
Article 10.1 can be decided by an ordinary
resolution passed by the shareholders.
The directors can also take these decisions if they do not conflict with any
resolution passed by the shareholders.

 

10.4                        The rights of any new shares can include rights for the holder and/or the Company to have them redeemed. The directors may determine the terms, conditions and manner of redemption of any such shares.

 

10.5                        The ability to
attach particular rights and
restrictions to new shares may be
restricted by special rights previously
given to holders of any existing shares.

 

11                                  The directors’ power to deal with shares

 

11.1                        Subject to the
provisions of the Companies Acts,
these Articles and any resolution
of the Company, the directors may
allot shares in the Company and
grant rights to subscribe for shares, or to convert any security into shares,
to such persons, at such times and on such

 

10

 

terms,
including as to the ability of such persons to assign their rights to be issued
such shares, as they think proper.

 

11.2                        The directors
shall be generally and unconditionally authorised pursuant to and in accordance
with Section 551 of the Companies Act
2006 to exercise for each Allotment
Period all the powers of the Company
to (i) allot shares; (ii) grant rights to subscribe for
shares; and (iii) convert any security into shares, but only up to an
aggregate nominal amount equal to the Section 551
Amount. By such authority the directors may, during the Allotment Period, make offers or agreements
which would or might require shares to be allotted, or rights to be granted,
after the expiry of such period.

 

11.3                        During each Allotment Period the directors shall be
empowered to allot equity securities wholly
for cash pursuant to and within the terms of the authority in Article 11.2
and to sell treasury shares wholly
for cash:

 

·                                          in connection
with a pre-emptive offer; and

 

·                                          otherwise than
in connection with a pre-emptive offer,
up to an aggregate nominal amount equal to the Section 561 Amount,

 

as
if Section 561 (1) of the Companies
Act 2006 did not apply to any such allotment or sale. Under such
power the directors may, during the Allotment
Period, make offers or agreements which would or might require equity securities to be allotted after the
expiry of such period.

 

11.4                        For the
purposes of this Article:

 

·                                          “Allotment Period” means (i) the period
from the date of adoption of these Articles until 30 September 2011 or, if
sooner, the end of the next Annual General
Meeting, or (ii) any period specified as such by the Relevant Ordinary Resolution;

 

·                                          “Section 551 Amount” means US$1 for the
first Allotment Period and for any
other Allotment Period means the
amount specified as such by the Relevant
Ordinary Resolution;

 

·                                          “equity securities”, “ordinary shares” and references to the
allotment of equity securities shall have the same meanings as in
Section 560 of the Companies Act 2006;

 

·                                          “Section 561 Amount” means US$1 for the
first Allotment Period and for any
other Allotment Period means the
amount specified as such in the Relevant
Special Resolution;

 

·                                          “pre-emptive offer” means an offer of equity securities open for acceptance for a
period fixed by the directors to (a) holders (other than the Company) on the register on a record date
fixed by the directors of ordinary shares in
proportion to their respective holdings and (b) other persons so entitled
by virtue of the rights attaching to any other equity securities held by them,
but subject in both cases to such exclusions or other arrangements as the
directors may deem necessary or expedient in relation to treasury shares,
fractional entitlements, record dates or legal, regulatory or practical
problems in, or under the laws of, any territory;

 

·                                          “Relevant Ordinary Resolution” means, at any
time, the most recently passed resolution varying, renewing or further renewing
the authority conferred by Article 11.2;

 

11

 

·                                          “Relevant Special Resolution” means, at any
time, the most recently passed special resolution renewing or further renewing
the authority conferred by Article 11.3;

 

·                                          in the case of
rights to subscribe for shares, or to convert any securities into shares, of the Company, the nominal value of
such securities shall be taken to
be the nominal value of the
shares which may be allotted pursuant to such rights.

 

12                                  Power to pay commission and brokerage

 

12.1                        The Company can use all the powers given by the
Companies Acts to pay commission
or brokerage to any person who:

 

·                                          applies, or
agrees to apply, for any new shares;
or

 

·                                          gets anybody
else to apply, or agree to apply for, any new shares.

 

12.2                        The rate per
cent or amount of the commission paid, or agreed to be paid, must be disclosed
as required by the Companies Acts and
must not exceed 10 per cent of the price at which the shares in respect of which the commission
is paid are issued (or an
equivalent amount). The commission can be paid in cash or by the allotment of fully-paid shares,
or any combination of the two, or in any other way allowed by the Companies Acts.

 

13                                  No trusts or similar interests recognised

 

13.1                        The Company will only be affected by, or
recognise, a current and absolute right to whole shares. The fact that any share,
or any part of a share, may not be
owned outright by the registered owner is not of any concern to the Company, for example if a share is held on any kind of trust.

 

13.2                        The only
exception to what is said in Article 13.1
is for any right:

 

·                                          which is
expressly given by these Articles;
or

 

·                                          which the Company has a legal duty to recognise.

 

SHARES IN UNCERTIFICATED FORM

 

14                                  Holding shares in uncertificated form and effect of the CREST Regulations

 

14.1                        Subject
to the Articles and so far
as the Companies Acts allow this,
the directors can decide that any class of shares
can:

 

·                                          be held in uncertificated form and that title to such shares can be transferred using a relevant system; or

 

·                                          no longer be
held and transferred in uncertificated form.

 

14.2                        These Articles do not apply to shares of any class which are held in uncertificated form to the extent that the Articles are inconsistent with the:

 

·                                          holding of shares of that class in uncertificated form;

 

12

 

·                                          transfer of
title to shares of that class by
means of a relevant
system; or

 

·                                          CREST Regulations.

 

14.3                        The directors
can also lay down regulations which:

 

·                                          govern the issue, holding and transfer, and where
appropriate, the mechanics of conversion and redemption,
of these shares and securities;

 

·                                          govern the
conversion of certificated shares into uncertificated shares and the conversion
of uncertificated shares into certificated shares;

 

·                                          govern the
mechanics for payments involving a relevant system; and

 

·                                          make any other
provisions which they consider are necessary to ensure that these Articles are consistent with the CREST Regulations, and with any
rules or guidance of an operator of
a relevant system.

 

These
regulations will, if they say so, apply instead of the other provisions in the Articles relating to certificates, and the
transfer, conversion and redemption of
shares and other securities, and any other provisions which
are not consistent with the CREST Regulations.
If the directors do make any regulations under this Article 14.3, Article 14.2
will still apply to the Articles,
read with those regulations.

 

14.4                        The Company may by notice to the holder of a share require that a share:

 

·                                          if it is in uncertificated form, be converted into certificated form; and

 

·                                          if it is in certificated form, be converted into uncertificated form, 

 

to enable it to be dealt with in accordance with the Articles.

 

14.5                        If:

 

·                                          the Articles give the directors power to take
action, or require other persons to take action, in order to sell, transfer or
otherwise dispose of shares; and

 

·                                          shares in uncertificated
form are subject to that
power, but the power is expressed in terms which
assume the use of a certificate or other written instrument, 

 

the
directors may take such action as is necessary or expedient to achieve the same
results when exercising that power in relation to shares in uncertificated
form.

 

14.6                        The directors
may take such action as they consider appropriate to achieve the sale,
transfer, disposal, forfeiture, re-allotment
or surrender of a share in
uncertificated form or otherwise
to enforce a lien in respect of
it. This may include converting such share to
certificated form.

 

14.7                        Unless the
directors resolve otherwise, shares which
a shareholder holds in uncertificated form must be treated as
separate holdings from any shares which
that shareholder holds in certificated form.

 

14.8                        A class of shares must not be treated as two classes
simply because some shares of that
class are held in certificated form and
others are held in uncertificated form.

 

13

 

SHARE CERTIFICATES

 

15                                  Certificates

 

15.1                        When a shareholder is first registered as the
holder of any class of shares in certificated form, he is entitled to
receive, free of charge, one certificate for all the shares in certificated form of
that class which he holds. If he holds shares
of more than one class in certificated
form, he is entitled to receive a separate share certificate for
each class.

 

15.2                        The Company must also observe any requirements
of the CREST Regulations when
issuing share certificates. Where the Companies
Acts allow, the Company does
not need to issue share certificates.

 

15.3                        If a shareholder receives more shares in certificated
form of any class he is entitled, without charge, to another
certificate for the additional shares.

 

15.4                        If a shareholder transfers part of his shares covered by a certificate, he is
entitled, free of charge, to a new certificate for the balance if the balance
is also held in certificated form.  The old certificate will be cancelled.

 

15.5                        The Company does not have to issue more than
one certificate for any share in certificated form, even if that share is held jointly.

 

15.6                        When the Company delivers a certificate to one joint
holder of shares in certificated form, this is treated as
delivery to all of the joint shareholders.

 

15.7                        If requested in
writing to do so, the Company can
deliver a certificate to a broker or agent who
is acting for a person who is buying shares in
certificated form, or who is
having shares transferred to him
in certificated form.

 

15.8                        The directors
can decide how share certificates are made effective. For example, they can be:

 

·                                          signed by two
directors or one director and the Secretary;

 

·                                          signed by one
director in the presence of a witness who attests to the signature;

 

·                                          sealed with the
Common Seal or the Securities Seal (or in the case of shares on
a branch Register, an official
seal for use in the relevant territory); or

 

·                                          printed, in any
way, with a copy of the signature of those directors and the Secretary. The copy can be made or produced
mechanically, electronically or
in any other way the directors approve so long as it complies with the Companies Acts.

 

15.9                        A share
certificate must state the number and class of shares to which it relates and the amount paid-up on those shares. It cannot be for shares
of more than one class.

 

15.10                 If all the issued shares
of the Company, or a
particular class of shares, are fully-paid and rank equally with each other for all purposes, none of those
shares will (unless the directors
pass a resolution to the contrary) have a distinguishing number as long as it
remains fully-paid and ranks equally for all purposes with all
the shares of the same class which
are issued and fully-paid.

 

15.11                 The time limit
for the Company to prepare a share
certificate for shares in certificated form is:

 

14

 

·                                          two months
after the allotment of a new share;

 

·                                          five working days after a valid transfer of fully-paid shares is
presented for registration;

 

·                                          two months
after a valid transfer of partly-paid shares is
presented for registration; or

 

·                                          where a request
relating to Share Warrants has
been made in accordance with Article 154.1, as set out in
Article 154.3.

 

15.12                 Article 15.11
only applies to the extent that the terms of
issue of shares do not provide otherwise.

 

15.13                 Share
certificates will also be prepared and sent earlier where either the London Stock Exchange or the UK Listing Authority requires it.

 

16                                  Replacement share certificates

 

16.1                        If a shareholder has four or more share
certificates for shares of the
same class which are in certificated form,
he can ask the Company for these
to be cancelled and replaced by a single new certificate. The Company must comply with this request and
the directors can require the shareholder to
pay the Company’s reasonable
administrative expenses for doing so.

 

16.2                        A shareholder can ask the Company to cancel and replace a single
share certificate with two or more certificates, for the same total number of shares. The Company must comply with this request and the directors can
require the shareholder to pay the
Company’s reasonable
administrative expenses for doing so.

 

16.3                        A shareholder can ask the Company for a new certificate if the
original is:

 

·                                          damaged or
defaced; or

 

·                                          lost, stolen,
or destroyed.

 

16.4                        If a
certificate has been damaged or defaced, the Company
can require satisfactory evidence and for the certificate to be
delivered to it before issuing a replacement. If a certificate is lost, stolen
or destroyed, the Company can
require satisfactory evidence, together with an indemnity, before issuing a replacement. In each case the
directors can impose such other terms as
they think fit.

 

16.5                        The directors
can require the shareholder to pay
the Company’s exceptional
out-of-pocket expenses for issuing any share certificates under
Article 16.3.

 

16.6                        Any one joint shareholder can request replacement
certificates under this Article 16.

 

CALLS ON SHARES

 

17                               The directors can make calls on shares

 

The
directors can call on shareholders to pay any money which has not
yet been paid to the Company for
their shares. This includes both
the nominal value of the shares and any

 

15

 

premium which may be payable. If the
terms of issue of the shares allow this, the directors can:

 

·                                          make calls as often, and whenever, they think fit;

 

·                                          decide when and
where the money is to be paid;

 

·                                          decide that the
money can be paid by instalments; or

 

·                                          wholly or
partly revoke or postpone any call.

 

A
call is treated as having been
made as soon as the directors pass a resolution authorising it.

 

18                                  The liability for calls

 

18.1                        A shareholder who has received at least 14
days’ notice giving details of the amount called, the time (or times) and place
or address for payment must pay the call as
required by the notice. Joint shareholders are
liable jointly and severally to
pay any money called for in
respect of their shares.

 

18.2                        A shareholder due to pay the amount called shall still have to pay the call even if, after the call was made, he transfers the shares to which the call related.

 

19                                  Interest and expenses on unpaid calls

 

If
a call is made and the money due
remains unpaid, the shareholder is
liable to pay interest on the money and any expenses incurred by the Company because of his failure to pay the call on time. The interest will run from the
day the money is due until it has actually been paid. The yearly interest rate
will be a reasonable rate fixed by the directors (or, where they do not fix a
reasonable rate, 10 per cent). The directors can decide not to charge any or
all of such expenses and interest.

 

20                                  Sums which are payable when a share is allotted are treated as a call

 

If
the terms of a share require any money to be paid at the
time the share is allotted, or at any fixed date (whether in
relation to the nominal value of
the shares or any premium which may apply), then the liability to pay the money will be treated
in the same way as a liability for
a valid call for money on shares which is due on the same date. If
this money is not paid, everything in the Articles
relating to non-payment of calls applies.
This includes Articles which allow
the Company to forfeit or sell shares and to claim interest.

 

21                                  Calls can be for different amounts

 

On
an issue of shares, if the terms of such shares allow,
the directors can decide that allottees or
the subsequent holders of such shares can
be called on to pay different
amounts, or that they can be called on
at different times.

 

22                                  Paying calls early

 

22.1                        The directors
can accept payment in advance of some or all of the money due from a shareholder before he is called on to pay the money. Any payment
accepted in advance of

 

16

 

a
shareholder being called on shall, to the extent of such
payment, extinguish the liability upon
the shares in respect of which it
is made. The Company can agree to
pay interest on money paid in advance until it would otherwise be due to the Company at a rate (up to a maximum yearly
interest rate of 10 per cent) agreed between the directors and the shareholder.

 

22.2                        The money which
is paid in advance in this way shall not be included in calculating the
dividend payable on the shares in
respect of which the money paid in advance has been paid.

 

FORFEITING SHARES

 

23                                  Notice following non-payment of a call

 

Articles
23 to 34 apply if a shareholder fails
to pay the whole amount of a call,
or an instalment of a call, by
the date on which it is due. The directors can serve a notice on him any time
after the date on which the call or
the instalment is due, if the whole amount immediately due has not been paid.

 

24                                  Contents of the notice

 

A  notice served
under Article 23 must:

 

·                                          demand payment
of the amount immediately payable, plus any interest and expenses incurred by
the Company by reason of such
non-payment;

 

·                                          give a date by
when the total must be paid, but this must be at least 14 days after the notice
is served on the shareholder;

 

·                                          state where the
payment(s) must be made; and

 

·                                          state that if
the full amount demanded is not paid by the time and at the place or address
stated, the Company can forfeit the shares on which the call or
instalment was due.

 

25                                  Forfeiture if the notice is not complied with

 

If
a notice served under Article 23 is not complied with, the shares to which it relates can be forfeited at any time while any amount
(including interest) is still outstanding. This is done by the directors
passing a resolution stating that the shares have
been forfeited.

 

26                                  Forfeiture will include unpaid dividends

 

All
dividends which are due on (and other money payable in respect of) the forfeited shares, but not yet paid, will also be forfeited.

 

27                                  Surrender

 

The
directors may accept a surrender of any share
liable to be forfeited pursuant
to Article 25.

 

17

 

28                                  Dealing with forfeited shares

 

28.1                        The directors
can sell, dispose of or re-allot any
forfeited or surrendered share on any terms and in any way that they decide. The Company may keep the consideration received
from doing this. The directors can, if necessary, authorise any person to
transfer a forfeited or
surrendered share to any other
person and may cause such other person to be registered as the holder of the share.

 

28.2                        The new shareholder’s ownership of the share will not be affected if the steps
taken to forfeit or surrender the
share, or the sale or disposal of
the share, were invalid or
irregular, or if anything that should have been done was not done, and the new shareholder is not obliged to enquire as to
how the purchase money (if any) is used.

 

29                                  Cancelling forfeiture

 

29.1                        After a share has been forfeited or surrendered, the directors can cancel the forfeiture or surrender. But they can only
do this before the share has been
sold, re-allotted or disposed of.
This can be on any terms that they
decide.

 

29.2                        If a share has not been sold or disposed of
after three years from the date of forfeiture,
the directors must cancel the share.

 

30                                  The position of shareholders after forfeiture

 

30.1                        A shareholder loses all rights in connection
with forfeited or surrendered shares and ceases to be a shareholder in respect of those shares. If the shares are in certificated
form, he must surrender any certificate for those shares to the Company for cancellation. A person is still liable to pay calls which have been made, but not paid,
before the forfeiture of his shares. He must also pay interest on the
unpaid amount (at the rate of interest which was payable on the unpaid amount
before the forfeiture) until it
is paid. If no interest was payable before the forfeiture
on the unpaid amount, the directors can fix the rate of interest on
the unpaid amount, but it must not be more than 10 per cent a year, until it is
paid.

 

30.2                        The shareholder continues to be liable for all
claims and demands which the Company could
have made relating to the forfeited share. He is not entitled to any credit for
the value of the share when it was
forfeited or for money received
by the Company under
Article 28, unless the directors decide to allow credit for all or any of
that value. The directors may also decide to waive any payment due either
completely or in part.

 

LIENS ON PARTLY-PAID SHARES

 

31                               The Company’s lien on shares

 

The
Company has a lien on all partly-paid  shares. This lien has priority over claims of others to
the shares and extends to all
dividends and other money payable on the shares
or in respect of them. This lien
is for any money owed to the Company
for the shares. The directors can
decide to give up any lien which
has arisen or that any share for a
specified period of time be entirely or partly exempt from this Article. They
can also decide to suspend any lien
which would otherwise apply to particular shares.
Unless otherwise

 

18

 

agreed,
the registration of a transfer of any share over
which the Company has a lien shall operate as a waiver of that lien.

 

32                                  Enforcing the lien by selling the shares

 

32.1                        If the
directors want to enforce the lien referred
to in Article 31, they can sell some or all of the shares in any way they decide. The
directors can authorise someone to transfer the shares sold. But they cannot sell the shares until all of the following
conditions are met:

 

·                                          the money owed
by the shareholder must be
immediately payable;

 

·                                          the directors
must have given a notice in writing to the shareholder.
This notice must specify the shares concerned
and say how much is due. It must also demand that this money is paid, and say
that the shareholder’s shares can
be sold by the Company if the
money is not paid;

 

·                                          the notice in
writing must have been sent to or served on the shareholder, or on any person who is automatically entitled to the shares by law; and

 

·                                          the money has
not been paid by at least 14 days after the notice has been served.

 

32.2                        The new shareholder’s ownership of the share will not be affected if the sale or
disposal of the share was invalid
or irregular, or if anything that should have been done was not done and is not
obliged to enquire as to how the purchase money (if any) is used.

 

33                                  Using the proceeds of the sale

 

If
the directors sell any shares under
Article 32, the net proceeds will first be used to pay off the amount
which is then payable to the Company.
The directors will pay any money left over to the former shareholder, or to any person who would
otherwise be automatically entitled to the shares by law provided that the Company’s lien
will also apply to any money left over, to cover any money still due
to the Company which is not yet
payable: the Company has the same
rights over this money as it had over the shares
immediately before they were sold. If the shares are in certificated
form, the Company need
not pay over anything left under this Article until the certificate
representing the shares sold has
been delivered to the Company for
cancellation.

 

34                                  Evidence of forfeiture or enforcement of lien

 

A
director, or the Secretary, can
make a statutory declaration declaring:

 

·                                          that he is a
director or the Secretary of the Company;

 

·                                          that a share has been properly forfeited or surrendered or sold to
satisfy a lien under the Articles; and

 

·                                          when the share was forfeited
or sold.

 

This
will be conclusive evidence of these facts which cannot be disputed as against
all persons claiming to be entitled to the share.
Such declaration shall constitute a good
title to the share subject to compliance with any other
transfer formalities required by law.

 

19

 

CHANGING SHARE RIGHTS

 

35                                  Changing the special rights of shares

 

35.1                        If the Company’s share capital is split into
different classes of share, and if
the Companies Acts allow this and
unless the Articles or rights attached to any class of share say otherwise, the special rights which are attached to any
of these classes of share can be
varied or abrogated if this is
approved by a special resolution in
accordance with Articles 35 and 36. This must be passed at a separate meeting
of the holders of the relevant class of shares.
This is called a class meeting.
Alternatively, the holders of at least three-quarters of the existing shares of the relevant class, excluding any
shares held as treasury shares, (by nominal value) can give their consent in
writing.

 

35.2                        The special rights of a class of shares can be varied or abrogated while the Company is a going concern, or while the Company is being wound up, or if winding
up is being considered.

 

35.3                        All the Articles relating to General Meetings
apply, with any necessary changes, to a class
meeting, but with the following adjustments:

 

·                                          At least two
people who hold (or who act as proxies for)
at least one third of the total nominal
value of the existing shares of
the class are a quorum. However,
if this quorum is not present at
an adjourned class meeting, one person who holds shares of the class, or his proxy, is a quorum, regardless of the number of shares he holds.

 

·                                          Anybody who is
personally present, or who is represented by a proxy,
can demand a poll.

 

·                                          On a poll, the holders of shares will have one vote for every share of the class which they hold.

 

·                                          If a class meeting is adjourned for any reason including a lack of quorum, the adjourned meeting may be held less than 10 clear days after
the original class meeting notwithstanding
Article 55.1.

 

35.4                        This
Article also applies to the variation or abrogation
of special rights of shares forming part of a class. Each part
of the class which is being treated differently is viewed as a separate class
in operating this Article.

 

36                                  More about the special rights of shares

 

The
special rights of shares or of any class of shares are not regarded as varied or abrogated if:

 

·                                          new shares are created, or issued, which rank equally with or behind those shares or that class of shares
in sharing in profits or assets of
the Company;

 

·                                          the Company redeems
or buys back its own shares.

 

But this does not apply if the terms of
the shares or class of shares expressly provide otherwise.

 

20

 

TRANSFERRING SHARES

 

37                                  Share transfers

 

37.1                        Unless the Articles provide otherwise, any shareholder can transfer some or all of his
shares to another person.

 

37.2                        Every transfer
of shares in certificated form must be in writing, and
either in the usual standard form, or in any other form approved by the
directors.

 

37.3                        Transfers of uncertificated shares are to be carried out
using a relevant system and
must comply with the CREST Regulations.

 

38                                  More about transfers of shares in certificated form

 

38.1                        The transfer
form for shares in certificated form must be delivered to the Transfer Office (or any other place the
directors may decide). The directors may refuse to recognise a transfer unless
the transfer form:

 

·                  has with it the
share certificate for the shares to
be transferred and any other evidence which the directors ask for to prove that
the person wishing to make the transfer is entitled to do this;

 

·                  is properly
stamped (for payment of stamp duty) where this is required;

 

·                  is being used
to transfer only one class of shares;
and

 

·                  is in favour of
not more than four joint holders.

 

38.2                        If the share being transferred is a fully-paid-up share, a share transfer form
must be signed by the person making the transfer. If the transfer is being made
by a company, the share transfer
form does not need to be under that company’s
seal.

 

38.3                        If the share being transferred is not a fully-paid-up share a share transfer form
must also be signed by the person to whom the share
is being transferred. If the transfer is being made to a company, the transfer form does not need to
be under that company’s seal.

 

38.4                        The person
making a transfer of shares will
be treated as continuing to be the shareholder
until the name of the person to whom a share is being transferred is put on the Register for that share.

 

38.5                        No fee is
payable to the Company for
transferring shares or registering
changes relating to the ownership of shares.

 

38.6                        If a share transfer is registered, or if the
directors have any grounds for suspecting fraud, the Company can keep the share transfer
form. Otherwise, if the directors refuse to register a transfer, the share transfer form will be returned, when
notice of refusal is given, to the person lodging it.

 

39                                  The Company can refuse to register certain transfers

 

39.1                        The directors
can refuse to register a transfer of any shares:

 

·                  in certificated
form, if the relevant conditions in Article 38 are not satisfied; or

 

21

 

·                  where the Board is obliged or entitled to refuse to
do so as a result of any failure to comply with a notice under Section 793
of the Companies Act 2006 (see
Article 67.1).

 

39.2                        If the
directors decide not to register a transfer of a share in certificated form,
they must notify in writing the person to whom such share was to be transferred and the person intending to
transfer such share, of the
decision not to register the transfer. Such notice shall give reasons for the
decision to refuse registration. This must be done no later than two months
after the Company receives the
transfer. The directors do not have to give any reasons for refusing to
register a transfer of any shares in
uncertificated form.

 

40                                  Overseas branch registers

 

If
the Company transacts business in
a country or territory referred to in Section 129 of the Companies Act 2006, it may arrange for a
branch register of the shareholders resident
in that country or territory to be kept there.

 

PERSONS AUTOMATICALLY ENTITLED TO SHARES BY LAW

 

41                                  When a shareholder dies

 

41.1                        When a sole shareholder dies (or a shareholder who is the last survivor of
joint shareholders dies), his
legal personal representatives will
be the only people whom the Company will
recognise as being entitled to his shares.

 

41.2                        If a shareholder who is a joint shareholder dies, the remaining joint shareholder or shareholders will be the
only people who the Company will
recognise as being entitled to his shares.

 

41.3                        This Article does
not discharge the estate of any sole or joint shareholder
from any liability.

 

42                                  Registering personal representatives

 

A
person who becomes automatically entitled to
a share by law can
either be registered as the shareholder or
can select some other person to whom the share
is to be transferred. The person who is automatically entitled by law must provide any evidence of
his entitlement which is reasonably required by the directors.

 

43                                  A person who wants to be registered must give notice

 

If
a person who is automatically entitled to shares by law wants to be
registered as a shareholder, he
must deliver or send a notice to the Company saying
that he has made this decision. He must sign this notice, or authenticate it in
accordance with Article 141, and it must be in the form which the
directors require. This notice will be treated as a transfer form and all of
the provisions of these Articles about
registering transfers of shares apply
to it. The directors have the same power to refuse to register the automatically entitled person as they
would have had in deciding whether to register a transfer by the person who was
previously entitled to the shares.

 

22

 

44                                  Having another person registered

 

If
a person who is automatically entitled to a share by law wants the share to be transferred to another person,
he must do the following:

 

·                  for a share in certificated
form sign a transfer form to the person he has selected; and

 

·                  for a share in uncertificated
form transfer such share using
a relevant system.

 

The
directors have the same power to refuse to register the person selected as they
would have had in deciding whether to register a transfer by the person who was
previously entitled to the shares.

 

45                                  The rights of people automatically entitled to shares by law

 

45.1                        A person who is
automatically entitled to a share by law is entitled to any
dividends or other money relating to the share,
upon supplying to the Company such
evidence as the directors may reasonably require to show his title to the share, even though he is not registered as
the holder of that share. However,
if the directors have served a notice on any such person requesting him to
choose between registering himself or transferring the share, and such person does not comply with
the notice within 90 days, the directors can withhold the dividend and other
money until the notice has been properly complied with. The directors can also
withhold the dividend if the person who was previously entitled to the share could have had their dividend
withheld.

 

45.2                        Unless and
until he is registered as a shareholder the
person automatically entitled to a share by law is not entitled:

 

·                  to receive
notices of General Meetings, or to attend or vote at these meetings; and

 

·                  (subject to Article 45.1) to any of
the other rights and benefits of being a shareholder,

 

unless
the directors decide to allow this.

 

45.3                        A person
entitled to a share who has
elected for that share to be
transferred to some other person pursuant to Article 44 shall cease to be
entitled to any rights or
advantages in relation to such share upon
that other person being registered as the holder of that share.

 

46                                  Prior notices binding

 

If
a notice is given to a shareholder in
respect of a share, a person
entitled to that share is bound by
the notice if it was given to the shareholder
before the name of the person entitled was entered into the
Register.

 

SHAREHOLDERS WHO CANNOT BE TRACED

 

47                                  Shareholders who cannot be traced

 

47.1                        The Company can sell any shares at the best price reasonably
obtainable if:

 

23

 

·                  during the 12 years
before the earliest of the advertisements referred to below, at least three
dividends on the shares have been
payable and none has been claimed;

 

·                  after this
12-year period, the Company announces
that it intends to sell the shares by
placing an advertisement in a United Kingdom national
newspaper and in a newspaper appearing in the area which includes the address
held by the Company for serving
notices relating to the shares;
and

 

·                  during this
12-year period, and for three months after the last advertisement appears in
the newspapers, the Company has
received no indication as to the whereabouts or existence of the shareholder or any person who is automatically entitled to the shares by law.

 

47.2                        To sell any shares in this way, the Company can authorise any person to
transfer the shares. This transfer
will be just as effective as if it had been made by the registered holder of
the shares, or by a person who is automatically entitled to the shares by law. The ownership of
the person to whom the shares are
transferred will not be affected even if the sale is irregular or invalid in
any way.

 

47.3                        The net sale
proceeds belong to the Company until
claimed under this Article, but it must pay these to the shareholder who could not be traced, or to
the person who is automatically entitled to
the shares by law, if
that shareholder, or that other
person, asks for it.

 

47.4                        The Company must record the name of that shareholder, or the person who was automatically entitled to the shares by law, as a creditor for
this money in its accounts. The money is not held on trust, and no interest is payable on the money. The Company can keep any money which it has
earned on the net sale proceeds. The Company can
use the money for its business, or it can invest the money in any way that the
directors decide. However, the money cannot be invested in the Company’s shares, or in the shares of any holding company of the Company.

 

47.5                        In the case of uncertificated shares, this Article is
subject to any restrictions which
apply under the CREST Regulations.

 

GENERAL MEETINGS

 

48                                  The Annual
General Meeting

 

Except as provided in the Companies Acts, the Company must hold an Annual General Meeting once in each period of six
months beginning with the day following the Company’s
accounting reference date, in addition to any other General Meetings which are
held in the year. The notice calling the Annual General Meeting must say that the meeting is the Annual General Meeting. The Annual General Meeting must be held in accordance
with the Companies Acts. The
directors must decide when and where to hold the Annual General Meeting.

 

24

 

49                                  Calling a General Meeting

 

The
directors can decide to call a General
Meeting at any time in accordance with the Companies Acts. General Meetings must also be called promptly in response to a
requisition by shareholders under the Companies Acts. If a General Meeting is not called in response
to such a request by shareholders,
it can be called by the shareholders who
requested the General Meeting in
accordance with the Companies Acts.
Any General Meeting requisitioned in this way by shareholders shall be called in the same
manner as nearly as possible to that in which General
Meetings are called by the directors. The directors must decide when
and where to hold a General Meeting.

 

50                                  Notice of General Meetings

 

50.1                        Notices of General Meetings shall include all
information required to be included by the Companies
Acts.

 

50.2                        Notices of General Meetings
must be given to the shareholders,
except in cases where the Articles or
the rights attached to the shares state that the holders are not
entitled to receive them from the Company.
Notice must also be given to the Company’s auditors.
The day when the notice is served (see Article 137), or is treated as
served, and the day of the General Meeting do
not count towards the period of notice. In relation to any class of shares some of which are in uncertificated form the Company can decide that only people who are
entered on the Register at the
close of business on a particular day are entitled to receive such a notice.
That day shall be a day chosen by the Company
and falling not more than 21 days before the notice is sent.

 

50.3                        For the
purposes of determining which persons are entitled to attend a meeting, the Company may specify in the notice of the
meeting a time by which a person must be entered on the Register in order to have the right to
attend the meeting. For the purposes of determining which persons are entitled
to vote at a meeting, and how many votes such persons may cast, the Company must specify in the notice of the
meeting a time, not more than 48 hours before the time fixed for the meeting,
by which a person must be entered on the Register
in order to have the right to vote at the meeting. The directors may
at their discretion resolve that, in calculating such period, no account shall
be taken of any part of any day that is not a working
day (within the meaning of Section 1173 of the Companies Act 2006).

 

PROCEEDINGS AT GENERAL MEETINGS

 

51                                  The chairman of a General Meeting

 

51.1                        The Chairman of
the directors will be the chairman at every General
Meeting, if he is present and willing to take the chair.

 

51.2                        If the Company does not have a Chairman, or if the
Chairman is not present and willing to chair the General Meeting, a Deputy Chairman will chair the meeting if
he is present and willing to take the chair.

 

25

 

51.3                        Where there is
more than one Deputy Chairman at a General
Meeting and there is more than one present, and the Chairman is not
there, the Deputy Chairman to take the chair will be the longest serving Deputy
Chairman present.

 

51.4                        If the Company does not have a Chairman or a
Deputy Chairman, or if neither the Chairman or any Deputy Chairman are present
and willing to chair the General Meeting,
after waiting ten minutes from the time that a meeting is due to start, the
directors who are present will choose one of themselves to act as chairman. If
there is only one director present, he will be chairman if he is willing.

 

51.5                        If there is no
director present and willing to be chairman, then a shareholder may be elected to be the chairman by a resolution
of the Company passed at the General Meeting. A proxy, who is not also a director or shareholder, cannot be appointed as the
chairman.

 

51.6                        To avoid any
doubt, nothing in these Articles restricts
or excludes any of the powers or rights of a chairman of a meeting which are
given by the general law.

 

52                                  Security, and other arrangements at General Meetings

 

52.1                        The directors
can put in place any arrangements or restrictions they think necessary to
ensure the safety and security of people attending a General Meeting and the orderly conduct of the General Meeting, including requiring those
attending to submit to searches.

 

52.2                        Either the
chairman of a General Meeting, or
the Secretary, can take any action
he considers necessary (including adjourning
the General Meeting)
for:

 

·                  the safety of
people attending a General Meeting (for
example, if there is not enough room for the shareholders
and proxies who want
to attend the General Meeting); or

 

·                  proper and
orderly conduct at a General Meeting (for
example, where the behaviour of someone present could prevent the business of
the General Meeting being carried
out in an orderly way); or

 

·                  any other
reason to make sure that the business of the General
Meeting can be properly carried out.

 

Where
the chairman of a General Meeting or
the Secretary decides to adjourn a General Meeting in this way, he can adjourn the General
Meeting to a time, date and place he decides (or indefinitely). He
does not need the agreement of those present at the General Meeting to do this.

 

52.3                        The directors
may refuse entry to, or remove from, a General
Meeting any shareholder,
proxy or other person who fails
to comply with such arrangements or restrictions.

 

52.4                        If anyone has
gained entry to a General Meeting and
refuses to comply with any security arrangements or restrictions, or disrupts
the proper and orderly conduct of the General
Meeting, the chairman can at any time, without the consent of the General Meeting, order this person to leave
or be removed from the General Meeting.

 

52.5                        The chairman of
a General Meeting can invite any
person to attend and speak at the General
Meeting who they consider has the knowledge or experience of the
business of the Company to assist
in the deliberations of the meeting.

 

26

 

52.6                        The chairman’s
decision on points of order, matters of procedure or matters arising
incidentally out of the business of a General
Meeting will be final, as will his decision, acting in good faith,
on whether a point or matter is of this nature.

 

53                                  Overflow meeting rooms

 

The
directors can arrange for any people who they consider cannot be seated in the
main meeting room, where the chairman will be, to attend and take part in a General Meeting in an overflow room or
rooms. Any overflow room must have a live video and two way sound link with the
main room for the General Meeting,
where the chairman will be. The video and sound link must enable those in all
the rooms to see and hear what is going on in the other rooms. The notice of
the General Meeting does not have
to give details of any arrangements under this Article. The directors can
decide on how to divide people between the main room and any overflow room. If
any overflow room is used, the General
Meeting will be treated as being held, and taking place, in the main
room.

 

54                                  The quorum needed for General Meetings

 

Before
a General Meeting starts to
conduct business, there must be a quorum present.
If there is not, the meeting cannot carry out any business other than
appointing a chairman. Unless other Articles say otherwise, a quorum for all purposes is two people who
are entitled to vote. They can be personally present or proxies for shareholders or duly authorised company representatives or a combination of shareholders, duly authorised company representatives and proxies.

 

55                                  The procedure if there is no quorum

 

55.1                        This Article 55
applies if a quorum is not
present either within 30 minutes of the time fixed for a General Meeting to start or within any
longer period (being no longer than an hour from the time fixed for the General Meeting to start) on which the
chairman may decide and if during the meeting a quorum ceases to be present. If the General Meeting was called by shareholders it is cancelled. Any other General Meeting is adjourned to another day, time and place
stated in the notice of General Meeting or
(if not so specified) as the directors may decide, provided that the adjourned meeting shall be held not less
than 10 clear days after the original General
Meeting.

 

55.2                        If a quorum is not present within 15 minutes of
the time fixed for the start of the adjourned
meeting, the adjourned General Meeting shall be cancelled.

 

56                                  Adjourning meetings

 

56.1                        Subject
to Article 52, the chairman of a General
Meeting can adjourn a
meeting which has a quorum present,
if this is agreed by those present at the General
Meeting. This can be to a time, date and place proposed by the
chairman or may be an indefinite adjournment.
The chairman must adjourn the General Meeting if the General Meeting directs him to. In these
circumstances the General Meeting will
decide how long the adjournment will
be, and where it will adjourn to.
If a General Meeting is adjourned indefinitely, the directors will
fix the time, date and place of the adjourned
General Meeting.

 

27

 

56.2                        General Meetings can be adjourned more than once. But if a General Meeting is adjourned for more than 30 days or
indefinitely, at least seven days’ notice must be given of the adjourned General Meeting in the same way as was required for the
original General Meeting. If a General Meeting is adjourned for less than 30 days, there is
no need to give notice of the adjourned General Meeting, or about the business to
be considered there.

 

56.3                        An adjourned General Meeting can only deal with business that could have
been dealt with at the original General
Meeting before it was adjourned.

 

57                                  Amending resolutions

 

57.1                        A special resolution to be proposed at a General Meeting may be amended by ordinary resolution provided that no
amendment may be made other than a mere clerical amendment to correct an
obvious error.

 

57.2                        An ordinary resolution to be proposed at a General Meeting may be amended by ordinary resolution provided that:

 

·                  notice of the
proposed amendment has been:

 

·                  lodged in
writing at the Registered Office;
or

 

·                  received electronically at the address specified
for receiving notices in electronic form,

 

at
least two clear business days before the time appointed for holding the General Meeting or adjourned General Meeting at which the resolution is to be proposed;

 

·                  such notice has
been given by a person entitled to vote at the General Meeting in question; and

 

·                  the chairman of
the General Meeting decides in
good faith that the amendment is within the scope of the business of the
meeting as described and does not impose further obligations on the Company.

 

57.3                        If the chairman
of a General Meeting, acting in
good faith, rules an amendment to a resolution out of order, any error in
that ruling will not affect the validity of a vote on the original resolution.

 

58                                  Satellite meeting places

 

58.1                        To assist with
the organisation and administration of any General
Meeting, the directors may decide that the General Meeting will be held at more than
one location.

 

58.2                        For the
purposes of these Articles, any General Meeting taking place at two or more
locations will be treated as taking place where the chairman of the General Meeting is in attendance (to be
known as the principal meeting place)
and any other location where that meeting takes place is referred to in these Articles as a satellite meeting.

 

58.3                        A shareholder present in person or by proxy at a satellite meeting may be counted in the quorum and can exercise all rights that they would have been able to exercise if they were present at the principal meeting place.

 

58.4                        The directors
can make and change such arrangements as they consider appropriate to:

 

28

 

·                  ensure that all
shareholders and proxies for shareholders wanting to attend the meeting can do so;

 

·                  ensure that all
persons attending the meeting are able to take part in the business of the
meeting and to see and hear anyone else addressing the meeting;

 

·                  ensure the
safety of persons attending the meeting and the orderly conduct of the meeting;
and

 

·                  restrict the
numbers of shareholders and proxies at any one location to a number
that can be safely and conveniently accommodated there.

 

58.5                        Whether any shareholder or proxy is entitled to attend a satellite meeting will depend on any arrangements then in
force and stated in the notice of
General Meeting or adjourned General Meeting.

 

58.6                        If the
communication equipment fails or if any other arrangements fail for shareholders to take part in the meeting at
more than one place, the chairman may adjourn
the meeting under Article 56. Such an adjournment will not affect the validity
of such meeting, or any business conducted at such meeting up to the point it
is adjourned, or any action taken
following such a meeting.

 

58.7                        A person (known
as a satellite chairman) may be
appointed by the directors to preside at each satellite
meeting. Every satellite chairman appointed:

 

·                  will carry out
all requests made by the chairman of the General
Meeting;

 

·                  can take
whatever action they think necessary to maintain the proper and orderly conduct
of the satellite meeting; and

 

·                  will have all
powers necessary or desirable to carry out these duties.

 

VOTING PROCEDURES

 

59                                  How votes are taken

 

59.1                        All Substantive Resolutions will only be
decided on a poll. All Procedural Resolutions will be decided by a
show of hands, unless a poll is demanded before the resolution is
put to the vote on a show of hands or
on the result of the show of hands being
declared by the chairman. A poll can
be demanded by:

 

·                  the chairman of
the General Meeting;

 

·                  at least five shareholders at the General Meeting (including proxies of shareholders entitled to vote) who are entitled to vote;

 

·                  one or more shareholders at the General Meeting who are entitled to vote
(including proxies of shareholders entitled to vote) and who
have, between them, at least 10 per cent of the total votes of all shareholders who have the right to vote at
the General Meeting (excluding the
rights attaching to shares held as treasury shares); or

 

·                  one or more shareholders who have shares which allow them to vote at the General Meeting (including proxies of shareholders entitled to vote), where the

 

29

 

total
amount which has been paid-up on
their shares is at least 10 per
cent of the total sum paid-up on
all shares which give the right to
vote at the General Meeting.

 

59.2                        A demand for a poll can be withdrawn if the chairman
agrees to this. If a poll is
demanded, and this demand is then withdrawn, any declaration by the chairman of
the result of a vote on that resolution by a show
of hands, which was made before the poll
was demanded, will stand.

 

60                                  How a poll is taken

 

60.1                        If a poll is demanded or held in the way
allowed by the Articles, the
chairman of the General Meeting can
decide where, when and how it will be carried out. The result is treated as the
decision of the General Meeting where
the poll was demanded, even if
the poll is carried out after the
General Meeting.

 

60.2                        The chairman
can:

 

·                  decide that a
ballot, voting papers, tickets, or electronic means, or any such combination,
will be used;

 

·                  appoint one or
more scrutineers (who need not be shareholders);

 

·                  decide to adjourn the General Meeting to such day, time and place as he decides for
the result of the poll to be
declared.

 

60.3                        If a poll is called, a shareholder can vote either personally or
by his proxy. If a shareholder votes on a poll, he does not have to use all of his
votes or cast all his votes in the same way.

 

61                                  Where there cannot be a poll

 

Notwithstanding
any other provision in these Articles,
a poll is not allowed on a vote
to elect a chairman of a General Meeting,
nor is a poll allowed on a vote
to adjourn a General Meeting, unless the chairman of the
General Meeting demands a poll.

 

62                                  A General
Meeting continues after a poll is demanded

 

A
demand for a poll on a particular
matter does not stop a General Meeting from
continuing and dealing with matters other than the question on which the poll was demanded.

 

63                                  Timing of a poll

 

A
poll on a resolution to adjourn the General Meeting must be taken immediately at the General Meeting. Any other poll can either be taken immediately at
the General Meeting or within 30
days from the date it was demanded and at a time and place decided on by the
chairman. No notice is required for a poll which
is not taken immediately if the time and place at which it is to be taken are
announced at the General Meeting at
which it is demanded. In any other case, at least seven clear days’ notice must
be given specifying the time and place at which the poll is to be taken.

 

30

 

64           The effect of a declaration by the chairman

 

On
a vote on a resolution at a General Meeting on
a show of hands, a declaration by
the chairman that the resolution:

 

·       has or has not been passed;
or

 

·       has or has not been passed
with a particular majority,

 

is
conclusive evidence of that fact without proof of the number or proportion of
the votes recorded in favour of or against the resolution. An entry in respect
of such a declaration in minutes of the meeting recorded in accordance with the
Companies Acts is also conclusive
evidence of that fact without such proof. This Article does not have
effect if a poll is demanded in
respect of the resolution (and the demand is not subsequently withdrawn).

 

VOTING RIGHTS

 

65           The votes of shareholders

 

65.1        At a General Meeting:

 

(i)      on a show of hands every shareholder (who is entitled to be present
and to vote) who is present in person and, subject
to Article 65.1(ii), every proxy
present (who has been duly appointed) shall have one vote;

 

(ii)     on a show of hands, a proxy has one vote for and one vote
against the resolution if the proxy has
been duly appointed by more than one shareholder
entitled to vote on the resolution, and the proxy has been instructed:

 

·      by one or more
of those shareholders to vote for
the resolution and by one or more other of those shareholders to vote against it; or

 

·      by one or more
of those shareholders to vote
either for or against the resolution and by one or more other of those shareholders to use his discretion as to
how to vote; and

 

(iii)    on a poll, every shareholder (who is entitled to be present and to vote) who is
present in person or by proxy (who
has been duly appointed) shall have one vote for every share which he holds.

 

This
is subject to Article 50.3
and any special rights or
restrictions which are given to any class of shares
by, or in accordance with, the Articles.

 

65.2        A proxy shall not be entitled to vote on a show of hands or on a poll where the shareholder appointing the proxy
would not have been entitled to vote on the resolution had he been
present in person.

 

66           Shareholders who owe money to the Company

 

Unless
the Articles provide otherwise,
the only people who are entitled to attend and/or vote at General Meetings
or to exercise any other right
conferred by being a shareholder in
relation to General Meetings, are shareholders who
have paid the Company all calls, and all other sums, relating to
their shares which are due at the
time of the General

 

31

 

Meeting. This applies both to attending the General Meeting personally and to
appointing a proxy.

 

67                                  Suspension of rights on non-disclosure of interest

 

67.1                        This Article applies
if any shareholder, or any person
appearing to be interested in shares (within
the meaning of Part 22 of the Companies
Act 2006) held by that shareholder,
has been properly served with a notice under Section 793 of the Companies Act 2006, requiring information
about interests in shares, and has
failed for a period of 14 days from the date of the notice to supply to the Company the information required by that
notice. Then (subject to the
provisions of the Companies Acts and
this Article, and unless the directors otherwise decide) the shareholder is not (for so long as the
failure continues) entitled to attend or vote either personally or by proxy at a shareholders’ meeting or to exercise
any other right in relation to a shareholders’
meeting as holder of:

 

·                  the shares in relation to which the default
occurred (called default shares);

 

·                  any further shares which are issued in respect of default
shares; and

 

·                  any other shares held by the shareholder holding the default shares.

 

67.2                        Any person who
acquires shares subject to restrictions under Article 67.1
is subject to the same
restrictions, unless:

 

·                  the transfer
was an approved transfer (see
Article 67.11); or

 

·                  the transfer
was by a shareholder who was not
himself in default in supplying the information required by the notice under
Article 67.1 and a certificate in accordance with Article 67.3 is
provided.

 

67.3                        Where the default shares represent 0.25 per cent or
more of the existing shares of a
class, the directors can in their absolute discretion by notice in writing (a direction notice) to the shareholder direct that:

 

·                  any dividend or
part of a dividend or other money which would otherwise be payable on the default shares shall be retained by the Company (without any liability to pay interest when that
dividend or money is finally paid to the shareholder);

 

·                  the shareholder will not be allowed to choose
to receive shares in place of
dividends in accordance with Article 131; and/or

 

·                  subject
to Article 67.4, no transfer of any of the shares held by the shareholder
will be registered unless:

 

·                  either the
transfer is an approved transfer (see
Article 67.11);

 

·                  or the shareholder is not himself in default as
regards supplying the information required; and (in this case)

 

·                  the transfer is
of part only of his holding; and

 

·                  when presented
for registration, the transfer is accompanied by a certificate by the shareholder. This certificate must be in a
form satisfactory to the directors and state that after due and careful

 

32

 

enquiry the shareholder is satisfied that none of the shares included in the transfer are default  shares.

 

67.4                        Any direction notice can treat shares of a shareholder in certificated and
uncertificated form as separate
shareholdings and either apply only to shares
in certificated form or
to shares in uncertificated form or apply differently to
shares in certificated and uncertificated form. In the case of shares in uncertificated
form the directors can only use their discretion to prevent a
transfer if this is allowed by the CREST Regulations.

 

67.5                        The Company must send a copy of the direction notice to each other person who
appears to be interested in the shares covered
by the notice, but if it fails to do so, this does not invalidate the direction notice.

 

67.6                        A direction notice has the effect which it states
while the default resulting in the notice continues. It then ceases to apply
when the directors decide (which they must do within one week of the default
being cured). The Company must
give the shareholder notice in
writing of the directors’ decision as soon as reasonably practicable.

 

67.7                        A direction notice also ceases to apply to
any shares which are transferred
by a shareholder in a transfer
permitted under Article 67.3 even where a direction notice restricts transfers.

 

67.8                        Where a person
who appears to be interested in shares has
been served with a notice under Section 793 of the Companies Act 2006 and the shares in which he appears to be interested
are held by an Approved Depositary,
this Article shall be treated
as applying only to the shares which
are held by the Approved Depositary in
which that person appears to be interested and not (so far as that person’s
apparent interest is concerned) to any other shares
held by the Approved Depositary.

 

67.9                        Where the shareholder on which a notice under Section 793
of the Companies Act 2006 is
served is an Approved Depositary,
the obligations of the Approved Depositary as
a shareholder will be limited to
disclosing to the Company any
information relating to any person who appears to be interested in the shares held by it which has been recorded
by it in accordance with the arrangement under which it was appointed as an Approved Depositary.

 

67.10                 For the
purposes of this Article a person is treated as appearing to be interested
in any shares if the shareholder holding those shares has been served with a notice under
Section 793 of the Companies Act 2006 and:

 

·                  the shareholder has named that person as being
so interested; or

 

·                  (after taking
into account the response of the shareholder to
the notice and any other relevant information) the Company knows or reasonably believes that the person in
question is or may be interested in the shares.

 

67.11                 For the
purposes of this Article a transfer of shares
is an approved transfer if:

 

·                  it is a
transfer of shares to an offeror
under an acceptance of a takeover offer;
or

 

·                  the directors
are satisfied that the transfer is made in connection with a sale in good faith
of the whole of the beneficial ownership of the shares to a person unconnected with the shareholder or with any person appearing to
be interested in the shares. This
includes such a sale made through a recognised investment

 

33

 

exchange  or any other
stock exchange outside the United Kingdom
on which the Company’s  shares are normally traded. For this
purpose any associate (as that word is defined in Section 435 of the
Insolvency Act 1986) is included amongst the people who are connected with the shareholder or any person appearing to be
interested in the shares.

 

67.12                 Where a person
who has an interest in American Depositary
Shares receives a notice under this Article 67, that person is
considered for the purposes of this Article 67 to have an interest in the
number of shares represented by
those American Depositary Shares which
is specified in the notice and not in the remainder of the shares held by the ADR Depositary.

 

67.13                 Where the ADR Depositary receives a notice under this
Article 67, the ADR Depositary shall
only be required to supply information relating to any person who has an
interest in the shares held by the
ADR Depositary which has been
recorded by the ADR Depositary under
the arrangements made with the Company (including
in the Proxy Register maintained
under Article 156) when it was appointed as the ADR Depositary.

 

67.14                 This Article does
not restrict in any way the provisions of the Companies
Acts which apply to failures to comply with notices under Section 793
of that Companies Act 2006.

 

68                                  The votes of joint holders

 

Where
a share is held by joint shareholders
any one joint shareholder can vote
at any General Meeting (either
personally or by proxy) in
respect of such share as if he
were the only shareholder. If more
than one of the joint shareholders votes
(either personally or by proxy),
the only vote which will count is the vote of that one of them who is listed
first on the Register for the share.

 

PROXIES

 

69                                  Appointment of proxies

 

69.1                        Any shareholder may appoint a proxy or (subject
to Article 69.3) proxies to
exercise all or any of his rights
to attend or speak and vote at a General
Meeting of the Company.
A proxy need not be a shareholder.

 

69.2                        Proxies
may also be appointed to act at General
Meetings in the
circumstances, and in the manner, provided for in Articles 151.2, 155, 157, 158
and 161, and Articles 69 to 73 should be read subject
to their terms.

 

69.3                        A shareholder may appoint more than one proxy in relation to a General Meeting provided that each proxy is appointed to exercise the rights attached to a different share or shares held
by him or (as the case may be) a different £10, or multiple of £10, of stock held by him.

 

70                                  Completing proxy forms

 

70.1                        A proxy form:

 

·              must be in writing; and

 

34

 

·              can be in any form which is
commonly used, or in any other form which the directors approve.

 

70.2                        A proxy form given by:

 

·                  an individual must be signed
by the shareholder appointing the proxy, or by an agent who has been properly appointed in writing, or
authenticated in accordance with Article 141; or

 

·                  a company must be sealed with the company’s seal or signed by an officer or agent who is authorised to act on behalf
of the company, or authenticated
in accordance with Article 141.

 

Unless the contrary is
shown, the directors are entitled to assume that where a proxy form purports
to have been signed, or authenticated in accordance with Article 141, by
an officer or agent on behalf of
a company that such officer or agent was duly authorised by such company without requiring any further
evidence.  Signatures and authentications
need not be witnessed.

 

70.3                        The proxy form must make
provision for three-way voting on all resolutions intended to be proposed,
other than resolutions which are merely procedural.

 

70.4                        The accidental omission to
send a proxy form,
or make a proxy form available,
to a shareholder entitled to it
(or non receipt by him of the proxy form) will not invalidate any resolution passed or
proceedings at the General Meeting
to which the proxy form
relates.

 

71                               Delivering proxy forms

 

71.1                        The appointment of a proxy must be received in the manner set
out in, or by way of note to, or in any document accompanying, the notice
convening the meeting (or if no address is so specified, at the Transfer Office):

 

·                       in the case of
a meeting or adjourned meeting,
not less than 48 hours before the commencement of the meeting or adjourned meeting to which it relates;

 

·                       in the case of
a poll taken following the
conclusion of a meeting or adjourned meeting,
but not more than 48 hours after the poll
was demanded, not less than 48 hours before the commencement of the meeting or adjourned meeting at which the poll was demanded; and

 

·                       in the case of
a poll taken more than 48 hours
after it was demanded, not less than 24 hours before the time appointed for the
taking of the poll,

 

and in default shall not be
treated as valid.

 

71.2                        The directors may at their
discretion resolve that, in calculating the periods mentioned in Article 71.1,  no account shall be taken of any part of any
day that is not a working day (within
the meaning of Section 1173 of the Companies
Act 2006).

 

71.3                        Directors can decide to
accept proxies delivered by electronic means or by means of a website, subject to any limitations, restrictions
or conditions they decide to apply.

 

71.4                        In relation to any shares in uncertificated
form, the directors can permit a proxy
to be appointed by electronic means  in the form of an uncertificated proxy instruction.  They can also permit any supplement to, or
amendment or withdrawal of, any uncertificated
proxy

 

35

 

instruction by a further uncertificated proxy instruction. The
directors can set out the method of determining when any uncertificated proxy instruction is to be
treated as received by the Company.
The directors can treat any uncertificated
proxy instruction which appears or claims to be sent on behalf of
the shareholder as sufficient
evidence that the person sending the instruction is authorised to send it on
behalf of that shareholder.

 

71.5                        If a proxy form is signed,
or authenticated in accordance with Article 141, by an agent, the power of attorney or other authority relied on to sign or
authenticate it, or a copy which has been certified by a notary, or certified
in some other way specified by the directors, must (if required by the Company) be delivered with the proxy form in
accordance with the instructions for delivery of proxy forms which are set out in the
notice of General Meeting or on
the proxy form,
unless the power of attorney or
other form of authority has already been registered with the Company.

 

71.6                        If this Article 71
is not complied with, the proxy will
not be able to act for the person who appointed him.

 

71.7                        A proxy form delivered
by an Approved Depositary except
in respect of a person appointed in accordance with Articles 164 and 165 may be
delivered to the appropriate place or address referred to in Article 71.1
by electronic means or in any
other way the directors decide.

 

71.8                        Where two or
more proxy forms are
delivered for use by the same shares,
the one which has been delivered last will be treated as replacing and revoking
the others which have been delivered.

 

71.9                        If a proxy form which
relates to several General Meetings has been properly delivered for one General Meeting or adjourned General Meeting, it does not need to be delivered again for
any later General Meeting which
the proxy form covers.

 

71.10                 Unless the proxy form says
otherwise, it will be valid at an adjourned General Meeting as well as for the original
General Meeting to which it
relates.

 

71.11                 A shareholder can attend and vote at a General Meeting on a show of hands or on a poll even if he has appointed a proxy to attend and vote at that meeting.
However, if he votes in person on a resolution, then as regards that resolution
his appointment of a proxy will
not be valid.

 

72                                  Cancellation of proxy’s authority

 

72.1                        Neither the
death or insanity of a shareholder who
has appointed a proxy, nor the
revocation or termination by a shareholder of
the appointment of a proxy (or of
the authority under which the appointment was made), shall invalidate the proxy or the exercise of any of the rights of the proxy thereunder, unless notice of such
death, insanity, revocation or termination shall have been received by the Company in accordance with Article 72.2.

 

72.2                        Any such notice
of death, insanity, revocation or termination must be received at the address
or one of the addresses (if any) specified for receipt of proxies in, or by way of note to, or in
any document accompanying, the notice convening the meeting to which the
appointment of the proxy relates
(or if no address is so specified, at the Transfer
Office):

 

36

 

·                                          in the case of
a meeting or adjourned meeting,
not less than one hour before the commencement of the meeting or adjourned meeting to which the proxy appointment relates;

 

·                                          in the case of
a poll taken following the
conclusion of a meeting or adjourned meeting,
but not more than 48 hours after it was demanded, not less than one hour before
the commencement of the meeting or adjourned
meeting at which the poll was
demanded; or

 

·                                          in the case of
a poll taken more than 48 hours
after it was demanded, not less than one hour before the time appointed for the
taking of the poll.

 

73                                  Authority of proxies

 

A
proxy shall have the right to exercise all or any of the rights of his appointor, or (where more
than one proxy is appointed) all
or any of the rights attached to the shares in
respect of which he is appointed the proxy to
attend, and to speak and vote, at a General
Meeting of the Company.

 

74                                  Representatives of companies

 

Subject to the Companies Acts, a company which is a shareholder can authorise any person or persons
to act as its representative or representatives at any General Meeting which it is entitled to
attend. Such person or persons are each called a company representative. The directors of that company must pass a resolution to appoint a
company representative. If the
governing body of that company is
not a board of directors, the resolution can be passed by its governing body.

 

75                                  Challenging votes

 

Any
objection to the right of any person to vote or the way in which the votes have
been counted must be made at the General
Meeting (or adjourned General Meeting) at which the vote is cast.
If a vote is not disallowed at the General
Meeting, it is valid for all purposes. Any such objection must be
raised with the chairman of the General
Meeting and will only change the decision of the General Meeting on any resolution if the
chairman of the General Meeting decides
that the vote cast may have affected the decision of the General Meeting. His decision on matters
referred to him under this Article is final.

 

DIRECTORS

 

76                                  The number of directors

 

There
must be at least three directors (other than alternate
directors), but the shareholders can
vary the number of directors by passing an ordinary
resolution.

 

77                                  Qualification to be a director

 

A
director need not be a shareholder,
but a director who is not a shareholder is
entitled to attend and speak at shareholders’
meetings.

 

37

 

78           Directors’ fees and expenses

 

78.1        Each of the
directors shall be paid a fee for his services. The directors can decide on the
amount, timing and manner of payment of directors’ fees, but the total of the
fees paid to all of the directors (excluding amounts paid as special pay under Article 79, amounts paid as
expenses under Article 80 and any payments under Article 81) must not
exceed:

 

·              £1.5 million a
year; or

 

·              any higher sum
decided on by an ordinary resolution at
a General Meeting.

 

This
remuneration shall accrue from
day to day.

 

78.2        Unless an ordinary resolution is passed which
provides otherwise, the fees will be divided between some or all of the
directors in the way that they decide. If they fail to decide, the fees will be
shared equally by the directors, except that any director holding office as a
director for only part of the period covered by the fee is only entitled to a pro
rata share covering that broken period.

 

79           Special pay

 

79.1        The directors
can award special pay if any
director performs extra or special services of any kind including:

 

·              holding any
executive post;

 

·              acting as
chairman or deputy chairman (whether or not this office is executive or
non-executive);

 

·              travelling or
staying outside his main residence for any business or purposes of the Company; and

 

·              serving on any
committee of the directors.

 

79.2        Special pay can take the form of salary, commission
or other benefits or expenses or more than one of such forms or can be paid in
some other way. This is decided on by the directors and may be a fixed sum or
percentage of profits or otherwise. Such special pay can be either in addition to or instead of any other fees,
expenses and other benefits a director may be entitled to receive.

 

80           Directors’ expenses

 

In
addition to any fees and expenses paid under Articles 78 and 79, the Company will repay to a director all
expenses properly incurred in:

 

·              attending and
returning from shareholders’ meetings;

 

·              attending and
returning from directors’ meetings;

 

·              attending and
returning from meetings of committees of the directors; or

 

·              in or with a
view to the performance of his duties.

 

38

 

81           Directors’ pensions and other benefits

 

81.1        The directors
may pay or provide:

 

·              pensions;

 

·              annual
payments;

 

·              gratuities; or

 

·              other allowances
or benefits

 

to
any person who is, or who was, a director who had a salary or place of profit
with the Company or with any company which is or has been a subsidiary of the Company or a predecessor in business of the
Company or any such subsidiary. The
director can decide to extend these arrangements to any member of his family
(including a spouse and a former spouse) or to any person who was or is
dependent on him. The director can also decide to contribute (before as well as
after he ceases to receive a salary or occupy a place of profit) to any scheme
or fund or to pay premiums to a
third party for these purposes.

 

81.2        No director or
former director is accountable to the Company
or its shareholders for
a benefit of any kind given in accordance with this Article. The receipt of a
benefit of any kind given in accordance with this Article does not prevent
a person from being or becoming a director.

 

82           Appointing directors to various posts

 

82.1        The directors
can appoint any director as chairman, or a deputy chairman, or to any executive
position on which they decide. So far as the Companies
Acts allow, they can decide on how long these appointments will be
for, and on their terms. Subject to the
terms of any contract with the Company,
they can also vary or end these appointments.

 

82.2        A director will
automatically stop being chairman, deputy chairman, managing director, deputy
managing director, joint managing director or assistant managing director if he
is no longer a director. Other executive appointments will only stop if the
contract or resolution appointing the director to a post says so. If a
director’s appointment ends because of this Article, this does not prejudice
any claim for breach of contract against the Company
which may otherwise apply.

 

82.3        The directors
can delegate to a director appointed to an executive post any of the powers
which they jointly have as directors. These powers can be delegated on such
terms and conditions as decided by the directors either in parallel with, or in
place of, the powers of the directors acting as a board. The directors can
change the basis on which these powers are given or withdraw them from the
executive.

 

CHANGING DIRECTORS

 

83          Retiring
directors

 

At
each Annual General Meeting all
those directors who were elected or last re-elected at or before the Annual General Meeting held in the third calendar
year before the current year shall automatically retire.

 

39

 

84           Eligibility for re-election

 

A
retiring director is eligible for re-election, unless the directors resolve
otherwise not later than the date of the notice of such Annual General Meeting.

 

85           Re-electing a director who is retiring

 

85.1        At a General Meeting at which a director retires
(whether at an Annual General Meeting or
otherwise), he may be re-elected (as long as the director has not told the Company in writing that he does not wish to
be re-elected) if the shareholders pass
an ordinary resolution to
re-elect him.

 

85.2        A director
retiring at a General Meeting retires
at the end of that meeting (or adjourned meeting),
or if earlier, when a resolution at a General
Meeting is passed to appoint some other person in his place. Where a
retiring director is re-elected he continues as a director without a break.

 

86           The power to fill vacancies and appoint extra directors

 

86.1        The directors
can appoint any person as an extra director or to fill a casual vacancy. Any director appointed in
this way automatically retires at the next General
Meeting after his appointment. At this General Meeting he can be elected by the shareholders as a director.

 

86.2        At a General Meeting the shareholders can also pass an ordinary resolution to fill a casual vacancy or to appoint an extra
director.

 

86.3        Extra directors
can only be appointed under this Article up to the limit (if any) on the
total number of directors under the Articles
(or any variation of the limit approved by the shareholders in accordance with the Articles).

 

87           Removing and appointing directors by an ordinary resolution

 

87.1        The shareholders can pass an ordinary resolution to remove a director,
even though his time in office has not ended. This applies despite anything
else in the Articles, or in any
agreement between him and the Company.
Special notice of the ordinary resolution must
be given to the Company as
required by the Companies Acts.
But if a director is removed in this way, it will not affect any claim which he
may have for damages for breach of any contract of service between him and the Company.

 

87.2        Subject
to Article 86, the shareholders can
pass an ordinary resolution to
elect a person to replace a director who has been removed in the way described
in Article 87.1. If no director is appointed under this Article, the
vacancy can be filled under Article 86.

 

87.3        Any person
appointed under Article 87.2 will be treated, for the purpose of
determining the time at which he is to retire, as if he had become a director
on the day on which the director he replaced was last elected.

 

88           When directors are disqualified

 

Any
director automatically ceases to be a director in any of the following
circumstances if:

 

40

 

·              a bankruptcy
order is made against him or any analogous event occurs in relation to him
under any applicable laws;

 

·              he makes any
arrangement or composition with his creditors or applies for an interim order
under Section 253 of the Insolvency Act 1986 in connection with a
voluntary arrangement under that Act or
any analogous event occurs in relation to him under any applicable laws;

 

·              a court which
claims jurisdiction to protect people who are unable to manage their own
affairs has made an order detaining him or appointing a person to manage his
property or affairs;

 

·              he has missed
directors’ meetings for a continuous period of six months, without permission
from the directors, and the directors have passed a resolution removing him
from office;

 

·              he is
prohibited from being a director by law or any power conferred on the directors
or shareholders under these Articles or ceases to be a director by
virtue of any provision of the Companies Act
2006;

 

·              except where
his contract of service prevents him from resigning, he:

 

(i)            delivers to the
Company a resignation notice in
writing, signed, or authenticated in accordance with Article 141, by him
or on his behalf; or

 

(ii)           offers in
writing to resign and the directors pass a resolution accepting the offer;

 

·              all the other
directors serve a notice in writing upon him requiring him to resign. He will
cease to be a director when the notice is served on him. Such a notice can
consist of several documents in the same form signed, or authenticated in
accordance with Article 141, by one or more directors.

 

89           Director
ceasing to be a member of a committee

 

When
a director stops being a director for any reason, he will also automatically
cease to be a member of any committee. Removal from office will be without
prejudice to any claim which he or the Company
might bring in relation to any contract of service between him and the Company.

 

DIRECTORS’ MEETINGS

 

90           Directors’ meetings

 

The
directors can decide when and where to have directors’ meetings and how they
shall be conducted, and on the quorum.
They can also adjourn their
meetings.

 

91           Who can call directors’ meetings

 

A
directors’ meeting can be called by any director. The Secretary must also call a directors’
meeting if a director asks him to.

 

41

 

92           How directors’ meetings are called

 

Directors’
meetings are called by giving notice to all the directors. This notice may be
given to a director personally, by word of mouth, by notice in writing (sent to
him at his last known address) or by electronic
means (sent to him at his last known electronic address or number).
Any director can waive notice of any directors’ meeting, including one which
has already taken place.

 

93           Quorum

 

93.1        If no other quorum is fixed by the directors, three
directors are a quorum. A
directors’ meeting at which a quorum is
present can exercise all the
powers, authorities and discretions of the directors whether by or under these Articles or exercisable by the directors generally.

 

93.2        A person who
holds office only as an alternate director shall,
if his appointor is not present, be counted in the quorum.

 

93.3        A director who
ceases to be a director at a directors’ meeting can continue to be present and
act as a director and be counted in the quorum
until the end of that meeting if no other director objects and a quorum would not otherwise be present.

 

94           The Chairman of directors’ meetings

 

94.1        The directors
can elect any director as Chairman or as one or more Deputy Chairmen for such
periods as the directors decide. If the Chairman is at a directors’ meeting, he
will chair it. In his absence, the chair will be taken by a Deputy Chairman, if
one is present. If there is no Chairman or Deputy Chairman present within five
minutes of the time when the directors’ meeting is due to start, the directors
who are present can choose which one of them will be the Chairman of the
directors’ meeting.

 

94.2        Where there is
more than one Deputy Chairman present at a meeting, and the Chairman is not
there, the Deputy Chairman to take the chair will be the longest serving Deputy
Chairman present.

 

95           Voting at directors’ meetings

 

Matters
for decision which arise at a directors’ meeting will be decided by a majority
vote. The chairman of the meeting will not have a second, casting vote.

 

96           Directors can act even if there are vacancies

 

96.1        The remaining
directors can continue to act even if one or more of them ceases to be a
director. But if and so long as the number of directors falls below the minimum
which applies under Article 76 (including any variation of that minimum
approved by an ordinary resolution of
shareholders), the remaining
director(s) can only:

 

·              either appoint
further directors to make up the shortfall; or

 

·              call a General Meeting.

 

42

 

96.2        If no director
is willing or able to act under this Article, any two shareholders can call a General Meeting to appoint extra directors.

 

97           Directors’ meetings by video conference and telephone

 

97.1        Any or all of
the directors, or members of a committee, can take part in a directors’ meeting
of the directors or of a committee by way of a video or web conference or
conference telephone, or similar equipment, designed to allow everybody to take
part in the directors’ meeting.

 

97.2        Taking part in
this way will be counted as being present at the directors’ meeting. A
directors’ meeting which takes place by way of video or web conference,
conference telephone or similar equipment will be treated as taking place where
most of the participants are. If there is no largest group, directors’ meetings
will be treated as taking place where the chairman of the meeting is.

 

97.3        A directors’
meeting held in the way described in Article 97.1 will be valid as long as
in one single place, or in places connected by way of video or web conference,
telephone conference, or similar equipment, a quorum
is present.

 

98           Director’s written resolutions

 

98.1        Any director
may, and the Secretary at the
request of a director shall, propose a written resolution by giving written
notice to the other directors.

 

98.2        A directors’
written resolution is adopted when all the directors entitled to vote on such a
resolution have signed one or more copies of it, or otherwise indicated their
agreement to it in writing or electronically.

 

98.3        A directors’
written resolution is not adopted if the number of directors who have signed it
or agreed to it in writing or electronically
is less than the quorum for
a directors’ meeting.

 

98.4        A directors’
written resolution signed or agreed to by an alternate
director does not need also to be approved by his appointor. If the
directors’ written resolution is signed or agreed to by a director who has
appointed an alternate director,
it does not need to be approved by the alternate
director acting in that capacity.

 

98.5        Once a
directors’ written resolution has been adopted, it must be treated as if it had
been a resolution passed at a directors’ meeting in accordance with these Articles.

 

98.6        A directors’
written resolution will be valid at the time it is signed or agreed to by the
last director.

 

98.7        The resolution
can be:

 

·              in the form of
letter;

 

·              in electronic form (as long as it is in writing); or

 

·              in any other
way the directors may approve.

 

43

 

99          The
validity of directors’ actions

 

Everything
which is done by any directors’ meeting, or by a committee of the directors, or
by a person acting as a director, or as a member of a committee, will, in
favour of anyone dealing with the Company
in good faith, be valid even though it is discovered later that any director,
or person acting as a director, was not properly appointed or elected. This
also applies if it is discovered later that anyone was disqualified from being
a director, or had ceased to be a director, or was not entitled to vote. In any
of these cases, in favour of anyone dealing with the Company in good faith, anything done will be as valid as if
there was no defect or irregularity of the kind referred to in this Article.

 

DIRECTORS’ INTERESTS

 

100         Authorisation of directors’ interests

 

100.1      For the
purposes of Section 175 of the Companies
Act 2006, the directors shall have the power to authorise any matter
which would or might otherwise constitute or give rise to a breach of the duty
of a director to avoid a situation in which he has, or can have, a direct or
indirect interest that conflicts, or possibly may conflict, with the interests
of the Company.

 

100.2      Authorisation
of a matter under Article 100.1 shall be effective only if:

 

·              the matter in
question shall have been proposed in writing for consideration at a meeting of
the directors, in accordance with the board of directors’ normal procedures or
in such other manner as the directors may determine;

 

·              any requirement
as to the quorum at the meeting
of the directors at which the matter is considered is met without counting the
director in question and any other interested director (together the “Interested Directors”); and

 

·              the matter was
agreed to without the Interested Directors voting
or would have been agreed to if the votes of the Interested Directors had not been counted.

 

100.3      Any authorisation
of a matter under Article 100.1 extends to any actual or potential
conflict of interest which may reasonably be expected to arise out of the
matter so authorised.

 

100.4      Any
authorisation of a matter under Article 100.1 shall be subject to such conditions or limitations
as the directors may determine, whether at the time such authorisation is given
or subsequently, and may be terminated by the directors at any time. A director
shall comply with any obligations imposed on him by the directors pursuant to
any such authorisation.

 

100.5      Subject
to any conditions or limitations imposed under Article 100.4, a
director shall not, save as otherwise agreed by him, be accountable to the Company for any benefit which he (or a
person connected with him) derives from any matter authorised by the directors
under Article 100.1 and any contract, transaction, arrangement or proposal
relating thereto shall not be liable to be avoided on the grounds of any such
benefit.

 

100.6      This
Article does not apply to a conflict of interest arising in relation to a
transaction or arrangement with the Company.

 

44

 

101         Directors may have interests

 

101.1      Subject
to compliance with Article 101.2, a director, notwithstanding his
office, may have an interest of the following kind:

 

·              where a
director (or a person connected with him) is a director or other officer of, or
employed by, or otherwise interested (including by the holding of shares) in
any Relevant Company;

 

·              where a
director (or a person connected with him) is a party to, or otherwise
interested in, any contract, transaction, arrangement or proposal with a Relevant Company, or in which the Company is otherwise interested;

 

·              where the
director (or a person connected with him) acts (or any firm of which he is a
partner, employee or member acts) in a professional capacity for any Relevant Company (other than as auditor) whether or not he or it is remunerated
therefor;

 

·              an interest
which cannot reasonably be regarded as likely to give rise to a conflict of
interest;

 

·              an interest, or
a transaction, arrangement or proposal giving rise to an interest, of which the
director is not aware;

 

·              any matter
already authorised under Article 100.1; or

 

·              any other
interest authorised by ordinary resolution.

 

No authorisation under Article 100.1 shall be necessary in respect
of any such interest.

 

101.2      Subject
to Sections 177 and 182 of the Companies
Act 2006 the director shall declare the nature and extent of any
interest permitted under Article 101.1, and not falling within
Article 101.3, at a meeting of the directors, by written declaration to
the Company or in such other
manner as the directors may determine.

 

101.3      No declaration
of an interest shall be required by a director in relation to an interest:

 

·              falling within
the fourth, fifth and sixth bullet paragraph of Article 101.1;

 

·              if, or to the
extent that, the other directors are already aware of such interest (and for
this purpose the other directors are treated as being aware of anything of
which they ought reasonably to be aware); or

 

·              if, or to the
extent that, it concerns the terms of his service contract (as defined in
Section 227 of the Companies Act 2006)
that have been or are to be considered by a meeting of the directors, or by a
committee of directors appointed for the purpose under these Articles.

 

101.4      A director
shall not, save as otherwise agreed by him, be accountable to the Company for any benefit which he (or a
person connected with him) derives from any interest referred to in Article 101.1,
and no contract, transaction, arrangement or proposal shall be liable to be
avoided on the grounds of any such interest.

 

101.5      For the
purposes of this Article 101, “Relevant
Company” shall mean the Company;
a subsidiary undertaking
of the Company; any
holding company of the Company or a subsidiary undertaking of any such holding company; any body corporate
promoted by the Company; or any
body corporate in which the Company is
otherwise interested.

 

45

 

102         Restrictions on quorum and voting

 

102.1      Save as
provided in this Article 102, and whether or not the interest is one which
is authorised pursuant to Article 100.1 or permitted under
Article 101.1, a director shall not be entitled to vote on any resolution
in respect of any contract, transaction, arrangement or proposal, in which he
(or a person connected with him) is interested. Any vote of a director in
respect of a matter where he is not entitled to vote shall be disregarded.

 

102.2      A director shall
not be counted in the quorum for
a meeting of the directors in relation to any resolution on which he is not
entitled to vote.

 

102.3      Subject
to the provisions of the Companies Acts,
a director shall (in the absence of some other interest than is set out below)
be entitled to vote, and be counted in the quorum,
in respect of any resolution concerning any contract, transaction, arrangement
or proposal:

 

·              in which he has
an interest of which he is not aware;

 

·              in which he has
an interest which cannot reasonably be regarded as likely to give rise to a
conflict of interest;

 

·              in which he has
an interest only by virtue of interests in shares,
debentures or other securities of the Company, or by reason of any other interest
in or through the Company;

 

·              which involves
the giving of any security, guarantee or indemnity
to the director or any other person in respect of (i) money lent or
obligations incurred by him or by any other person at the request of or for the
benefit of the Company or any of
its subsidiary
undertakings; or (ii) a debt or other obligation of the Company or any of its subsidiary undertakings for
which he himself has assumed responsibility in whole or in part under a
guarantee or indemnity or by the
giving of security;

 

·              concerning an
offer of shares or debentures or
other securities of or by the Company or any of its subsidiary undertakings (i) in
which offer he is or may be entitled to participate as a holder of securities; or (ii) in the underwriting or
sub-underwriting of which he is to participate;

 

·              concerning any
other body corporate in which he is interested, directly or indirectly and
whether as an officer, shareholder,
creditor, employee or otherwise, provided that he (together with persons
connected with him) is not the holder of, or beneficially interested in, one
per cent. or more of the issued equity
share capital of any class of such body corporate or of the voting rights
available to members of the
relevant body corporate;

 

·              relating to an
arrangement for the benefit of the employees or former employees of the Company or any of its subsidiary undertakings which
does not award him any privilege or benefit not generally awarded to the
employees or former employees to whom such arrangement relates;

 

·              concerning the
purchase or maintenance by the Company of
insurance for any liability for
the benefit of directors or for the benefit of persons who include directors;

 

·              concerning the
giving of indemnities in favour of directors;

 

46

 

·              concerning the
funding of expenditure by any director or directors on (i) defending
criminal, civil or regulatory proceedings or actions against him or them,
(ii) in connection with an application to the court for relief, or
(iii) defending him or them in any regulatory investigations;

 

·              concerning the
doing of anything to enable any director or directors to avoid incurring
expenditure as described in the tenth bullet paragraph of this
Article 102.3 immediately above; and

 

·              in respect of
which his interest, or the interest of directors generally, has been authorised
by ordinary resolution.

 

102.4      Where proposals
are under consideration concerning the appointment (including fixing or varying
the terms of appointment) of two or more directors to offices or employments
with the Company (or any body corporate in which the Company is interested), the proposals may
be divided and considered in relation to each director separately. In such
case, each of the directors concerned (if not debarred from voting under the
sixth bullet paragraph of Article 102.3) shall be entitled to vote, and be
counted in the quorum, in respect
of each resolution except that concerning his own appointment or the fixing or
variation of the terms thereof.

 

102.5      If a question
arises at any time as to whether any interest of a director prevents him from
voting, or being counted in the quorum,
under this Article 102, and such question is not resolved by his
voluntarily agreeing to abstain from voting, such question shall be referred to
the chairman of the meeting and his ruling in relation to any director other
than himself shall be final and conclusive, except in a case where the nature
or extent of the interest of such director has not been fairly disclosed. If
any such question shall arise in respect of the chairman of the meeting, the
question shall be decided by resolution of the directors and the resolution
shall be conclusive except in a case where the nature or extent of the interest
of the chairman of the meeting (so far as it is known to him) has not been
fairly disclosed to the directors.

 

103         Confidential information

 

103.1      Subject to
Article 103.2, if a director, otherwise than by virtue of his position as
director, receives information in respect of which he owes a duty of
confidentiality to a person other than the Company,
he shall not be required to disclose such information to the Company or to the directors, or to any
director, officer or employee of the Company,
or otherwise use or apply such confidential information for the purpose of or
in connection with the performance of his duties as a director.

 

103.2      Where such duty
of confidentiality arises out of a situation in which the director has, or can
have, a direct or indirect interest that conflicts, or possibly may conflict,
with the interests of the Company,
Article 103.1 shall apply only if the conflict arises out of a matter
which has been authorised under Article 100.1 above or falls within
Article 100 above.

 

103.3      This
Article 103 is without prejudice to any equitable principle or
rule of law which may excuse or release the director from disclosing
information, in circumstances where disclosure may otherwise be required under
this Article 103.

 

47

 

104                           Directors’ interests – general

 

104.1                 For the
purposes of Articles 100 to 103:

 

·                  where the
context permits, any reference to an interest includes a duty and any reference
to a conflict of interest includes a conflict of interest and duty and a conflict
of duties;

 

·                  an interest of
a person who is connected with a director shall be treated as an interest of
the director; and

 

·                  Section 252
of the Companies Act 2006 shall
determine whether a person is connected with a director.

 

104.2                 Where a
director has an interest which can reasonably be regarded as likely to give
rise to a conflict of interest, the director may, and shall if so requested by
the directors, take such additional steps as may be necessary or desirable for
the purpose of managing such conflict of interest, including compliance with
any procedures laid down from time to time by the directors for the purpose of
managing conflicts of interest generally and/or any specific procedures
approved by the directors for the purpose of or in connection with the
situation or matter in question, including without limitation:

 

·                  absenting
himself from any meeting or part of a meeting of the directors at which the
relevant situation or matter falls to be considered; and

 

·                  not reviewing
documents or information made available to the directors generally in relation
to such situation or matter and/or arranging for such documents or information
to be reviewed by a professional adviser to ascertain the extent to which it
might be appropriate for him to have access to such documents or information.

 

104.3                 The Company may by ordinary resolution ratify any contract, transaction,
arrangement or proposal, not properly authorised by reason of a contravention
of any provisions of Articles 100 to 103.

 

DIRECTORS’ COMMITTEES

 

105                           Delegating powers to committees

 

The
directors can delegate any of their powers, or discretions, to committees of
one or more directors. This includes powers or discretions relating to
directors’ pay or giving benefits
to directors. If the directors
have delegated any power or discretion to a committee, any references in these Articles to using that power or discretion
include its use by the committee. Any such delegation may be either
collaterally with or to the exclusion of their own powers and the directors may
revoke or alter the terms of any
such delegation. Any such person or committee shall, unless the directors
otherwise resolve, have power to sub-delegate any of the powers or discretions
delegated to them. Any committee must comply with any regulations laid down by
the directors. These regulations can require or allow people who are not
directors to be co-opted onto the committee, and can give voting rights to
co-opted members. However:

 

·              there must be more directors on a
committee than co-opted members; and

 

48

 

·                                          a resolution of
the committee is only effective if a majority of the members of the committee
present at the time of the resolution were directors.

 

106                           Committee
procedure

 

If
a committee includes two or more people, the Articles
which regulate directors’ meetings and their procedure will also apply to
committee meetings (if possible), unless these are inconsistent with any
regulations for the committee which have been laid down under Article 105.

 

DIRECTORS’ POWERS

 

107                           The directors’ management powers

 

107.1                 The Company’s business will be managed by the
directors. They can use all the Company’s powers
except where the Articles, or the Companies Acts, provide that powers can only
be used by the shareholders voting
to do so at a General Meeting. The
general management powers under this Article are not limited in any way by
specific powers given to the directors by other Articles.

 

107.2                 The directors
are, however, subject to:

 

·                  the provisions
of the Companies Acts;

 

·                  the
requirements of these Articles;
and

 

·                  any other
requirements (whether or not consistent with these Articles) which are approved by the shareholders by passing a special
resolution at a General Meeting.

 

However,
if any change is made to these Articles or
if the shareholders approve a
requirement relating to something which the directors have already done which
was within their powers, this will not invalidate any prior act of the
directors which would otherwise have been valid.

 

108                           Provision for employees on cessation or transfer of business

 

The
directors may make provision for the benefit of persons employed or formerly
employed by the Company or any of
its subsidiaries (other
than a director, former director or shadow director) in connection with the
cessation or transfer to any person of the whole or part of the undertaking of
the Company or that subsidiary.

 

109                           The power to establish local boards

 

109.1                 The directors
can set up local committees, local boards or local agencies to manage any of
the Company’s business. These can
be either in or outside the United Kingdom.
The directors can appoint, remove and re-appoint anybody (who need not be a
director) to be:

 

·                  members of any
local committee, board or agency; or

 

·                  managers or agents of the Company.

 

49

 

109.2                 The directors
can:

 

·                  decide on the pay and other benefits of people appointed
under this Article;

 

·                  delegate any of
their authority, powers or discretions to:

 

(i)                                     any local board
or committee; or

 

(iii)                               any manager, or
agent of the Company;

 

·                  allow local
committees or boards, managers or agents to
delegate to another person;

 

·                  allow the
members of local committees, boards or agencies to fill any vacancies on them;

 

·                  allow the
members of local committees, boards or agencies to continue to act even though
there are vacancies on them;

 

·                  remove any
people they have appointed under this Article; and

 

·                  cancel or
change an appointment or delegation made under this Article, although this will
not affect anybody who acts in good faith who has not had any notice of any
cancellation or variation.

 

Any
appointment or delegation by the directors which is referred to in this
Article can be on any terms and conditions decided on by the directors.

 

109.3                 A person who is
employed by, or occupies an office with, the Company
may be given a title which includes the words “Associate Director”.
This will not imply that such person is a director of the Company or that he is entitled to act as a
director or be deemed to be a director for the purposes of these Articles.

 

110                           The power to appoint attorneys

 

110.1                 The directors
can appoint anyone (including the members of a group which changes over time)
as the Company’s attorney or attorneys by granting a power
of attorney or by authorising him or them in some other way. The attorney or attorneys can either be appointed directly by the directors,
or the directors can give someone else the power to select attorneys. The directors can decide on the
purposes, powers, authorities and discretions of attorneys.

 

110.2                 The directors
can decide for how long a power of attorney will
last and they can apply any terms and conditions to it. The power of attorney can also include any
provisions which the directors decide on for the protection and convenience of
anybody dealing with the attorney.
The power of attorney can also
allow the attorney to
sub-delegate any or all of his power, authority or discretion to any other
person.

 

111                           Bank mandates

 

The
directors may by resolution authorise such person or persons as they think fit
to act as signatories to any bank account of the Company and may amend or remove such authorisation from time
to time by resolution.

 

50

 

112                           Name

 

The
Company may change its name by
resolution of the directors.

 

113                           Borrowing powers

 

So
far as the Companies Acts allow,
the directors can exercise all
the powers of the Company to:

 

·                  borrow money;

 

·                  issue
(subject
to the provisions of the Companies Acts regarding authority to allot debentures convertible into shares)
debentures and other securities;
and

 

·                  give any form
of:

 

·                  guarantee; and

 

·                  security,
either outright or as collateral and over all or any of the Company’s undertaking, property and
uncalled capital,

 

for any debt, liability or
obligation of the Company or of
any third party.

 

114                           Borrowing restrictions

 

114.1                 The directors
must:

 

·                  limit the Borrowings of the Company and

 

·                  exercise
all voting and other rights or powers of control exercisable by the Company in relation to its subsidiary undertakings

 

to
ensure that the total amount of all Borrowings
by the Group outstanding
at any time will not exceed 1.5 times the Adjusted
Total of Capital and Reserves at such time.

 

This
limitation on Borrowings will only
affect subsidiary
undertakings to the extent that the directors can restrict the
borrowings of the subsidiary
undertakings by exercising the rights or powers of control which
the Company has over its subsidiary undertakings.
The Company may consent in advance
to exceeding the borrowing limit by passing an ordinary
resolution at a General Meeting.

 

114.2                 In this
Article:

 

Group means the Company
and its subsidiary
undertakings for the time being;

 

Adjusted Total of Capital and Reserves means the
aggregate of the share capital and reserves as
shown in the latest audited consolidated balance sheet of the Group (including the amount paid-up or
credited as paid-up on the issued share capital of the Company, the share premium account, capital
redemption reserve, profit and loss account and other reserves included within the Group’s equity shareholders’ funds) (the “Reserves”)
but:

 

·                  adjusted as
appropriate in respect of any variation to the paid-up share capital or reserves
since the date of the latest audited consolidated balance sheet as
recorded within the monthly management accounting records of the Group

 

51

 

prepared
in accordance with the accounting bases and principles applied in the
preparation of its latest audited consolidated balance sheet;

 

·                  adding any
amount which has been deducted at any time from the Reserves of the Group for
goodwill arising on consolidation either by direct charge to Reserves or by charge to the Group’s consolidated profit and loss
account; and

 

·                  making such
other adjustments (if any) as the auditors of the Company consider appropriate.

 

Borrowings means the aggregate amount
of all liabilities and
obligations of the Group which in
accordance with the accounting bases and principles of the Group are treated as borrowings in the
latest audited consolidated balance sheet of the Group but:

 

·                  adjusted as appropriate
in respect of any variation to borrowings since the date of the latest audited
consolidated balance sheet as recorded within the monthly management accounting
records of the Group prepared in
accordance with the accounting bases and principles applied in its latest
audited consolidated balance sheet;

 

·                  excluding any
borrowings under finance or structured tax lease arrangements to the extent
matched as part of those arrangements by deposits of cash or cash equivalent
investments which are treated by the creditor concerned as available to reduce
its net exposure; and

 

·                  making such
other adjustments (if any) as the auditors of the Company consider appropriate.

 

114.3                 The
determination of the Company’s auditors
as to the amount of the Adjusted Total of
Capital and Reserves and the total amount of Borrowings at any time shall be conclusive
and binding on all concerned and for the purposes of their computation the Company’s auditors may at their discretion
make such further or other adjustments (if any) or determinations as they think
fit. Nevertheless the directors may act in reliance on a bona fide estimate of
the amount of the Adjusted Total of Capital
and Reserves and the total amount of Borrowings at any time and if in consequence the borrowing
limit is inadvertently exceeded an amount of borrowings equal to the excess may
be disregarded until the expiration of three months after the date on which by
reason of a determination of the Company’s auditors
or otherwise the directors became aware that such a situation has or may have
arisen.

 

114.4                 No lender or other
person dealing with the Group need
be concerned whether the borrowing limit is observed. No debt incurred or
security given in breach of the borrowing limit will be invalid or ineffective
unless the lender or the recipient of the security had express notice at the
time when the debt was incurred or security given, that the limit had been or
would as a result be breached.

 

ALTERNATE DIRECTORS

 

115                           Alternate directors

 

115.1                 Any director
may appoint any person (including another director) to act in his place (such
person is called an alternate director).
Such appointment requires the approval of the

 

52

 

directors,
unless the proposed alternate director is
another director. A director appoints an alternate
director by delivering an appointment notice signed, or
authenticated in accordance with Article 141, by him (or in any other
manner which has been approved by the directors) to the Registered Office. An alternate director need not be a shareholder.

 

115.2                 The appointment
of an alternate director ends if
the director appointing him ceases to be a director, unless that director
retires at a General Meeting at
which he is re-elected under Article 85.1. A director can also remove his
alternate by delivering a notice signed, or authenticated in accordance with
Article 141, by him (or doing something else which has been approved by
the directors) delivered to the Registered
Office. An alternate director can
also be removed as an alternate by a resolution of the directors.

 

115.3                 An alternate director is entitled to receive
notices of directors’ meetings once he has given the Company an address to which notices may be served on him. He
is entitled to attend and vote as a director at any such meeting at which the
director appointing him is not personally present and generally at such meeting
to perform all functions of the director appointing him as a director. If he is
himself a director or attends any such meeting as an alternate for more than
one director, he will have one vote for each director for whom he acts as an
alternate, in addition to his own vote as a director. However, he may not be
counted more than once for the purposes of the quorum.
If his appointor is temporarily unable to act through ill health or disability
his signature of or authentication of any directors’ written resolution is as
effective as the signature or authentication of his appointor.

 

115.4                 If the
directors decide to allow this, Article 115.3 also applies in a similar
fashion to any meeting of a committee of which his appointor is a member.

 

115.5                 An alternate director shall be an officer of
the Company and shall alone be
responsible to the Company for his
own actions and mistakes. Except as said in this Article 115, an alternate director:

 

·              does not have power to act as a
director;

 

·              is not considered to be a director
for the purposes of the Articles;

 

·              is not considered to be the agent of his appointor; and

 

·              cannot appoint an alternate director.

 

115.6                 Subject
to the Companies Acts, an alternate director is entitled to contract
and be interested in and benefit from contracts or arrangements or transactions
and to be repaid expenses and to be indemnified
to the same extent as if he were a director. However, he is not
entitled to receive from the Company as
alternate director any pay, except only such part (if any) of the pay otherwise payable to his appointor as
such appointor may direct the Company in
writing to pay to his alternate.

 

THE SECRETARY

 

116                           The Secretary and deputy and assistant secretaries

 

116.1                 The Secretary is appointed by the directors.
The directors decide on the terms and period of his appointment so long as
allowed to do so by the Companies Acts.
The directors can

 

53

 

also
remove the Secretary, but this
does not affect any claim for damages against the Company for breach of any contract between him and the Company.

 

116.2                 The directors
can also appoint one or more people to be deputy or assistant secretary.
Anything which the Companies Acts allow
to be done by or to the Secretary can,
if there is no Secretary, or the Secretary is for any reason not capable of
doing what is required of him, also be done by or to any deputy or assistant
secretary. If there is no deputy or assistant secretary capable of acting, the
directors can appoint any officer to do what would be required of the deputy or
assistant secretary.

 

THE SEAL

 

117                           The Seal

 

117.1                 The directors
are responsible for arranging for the Common
Seal and any Securities Seal to
be kept safely. The Common Seal and
any Securities Seal can only be
used with the authority of the directors or of a committee authorised by the
directors to use it. The Securities Seal can
be used only for sealing securities issued by
the Company in certificated form and sealing documents
creating or evidencing securities issued by
the Company.

 

117.2                 Subject
to the provisions of these Articles which
relate to share certificates, every document which is sealed using the Common Seal must be signed personally by:

 

·                  one director
and the Secretary; or

 

·                  two directors;
or

 

·                  by a director
or any other persons who are authorised to do so by the directors in the
presence of a witness who attests to the signature.

 

117.3                 Where a
signature is required to witness the Common
Seal, the directors may decide that the individual need not sign the
document personally but that his signature may be printed on it mechanically, electronically or in any other way the
directors approve.

 

117.4                 Securities
and documents which have the Securities
Seal stamped on them do not need to be signed unless the directors
or the Companies Acts require
this.

 

117.5                 The directors
can use all the powers given by the Companies
Acts relating to official seals for use abroad.

 

117.6                 Certificates
for debentures or other securities of the Company may be printed in any way and may
be sealed and/or signed for in any manner allowed by these Articles.

 

117.7                 As long as it
is allowed by the Companies Acts,
any document signed by:

 

·                  one director
and the Secretary; or

 

·                  by two
directors; or

 

·                  one director in
the presence of a witness who attests to the signature,

 

and
expressed to be entered into by the Company shall
have the same effect as if it had been made effective by using the Common Seal.

 

54

 

AUTHENTICATING DOCUMENTS

 

118                           Establishing that documents are genuine

 

118.1                 Any director,
or the Secretary, has power to
identify as genuine any of the following and to certify copies or extracts from
them as true copies or extracts:

 

·                  any documents
relating to the Company’s constitution;

 

·                  any resolutions
passed by the shareholders or any
class of shareholders, or by the
directors or by a committee of the directors; and

 

·                  any books,
documents, records or accounts which relate to the Company’s business.

 

The directors can also delegate this power to other people.

 

118.2                 When any books,
documents, records or accounts are not kept at the Registered Office, the officer of the Company who has custody of them is treated
as a person who has been authorised by the directors to identify them as
genuine and to provide certified copies or extracts from them.

 

118.3                 A document
which appears to be a copy of a resolution or an extract from the minutes of
any meeting, and which is certified as a copy or extract as described in
Article 118.1 or 118.2 is conclusive evidence for anyone who deals with
the Company on the strength of the
document that:

 

·                  the resolution
has been properly passed; or

 

·                  the extract is
a true and accurate record of the proceedings of a valid meeting.

 

DIVIDENDS

 

119                           Final dividends

 

The
directors may recommend the amount of any final dividend. The shareholders can then declare dividends by passing an ordinary resolution, but the amount declared cannot exceed the amount recommended
by the directors.

 

120                           Fixed and interim dividends

 

120.1                 If the
directors consider that the profits of the Company
justify such payments, they can pay:

 

·                  fixed dividends
on any class of shares carrying a
fixed dividend on the dates fixed for the payment of those dividends; and

 

·                  interim
dividends on shares of any class
of any amounts and on any dates and for any period which they decide.

 

120.2                 If the directors
act in good faith, they are not liable to any shareholders
for any loss they may suffer because a lawful dividend (whether
fixed or interim) has been paid under this Article on other shares which rank equally with or behind their shares.

 

55

 

121                           Dividends not in cash

 

If
the directors recommend this, shareholders can pass an ordinary
resolution to direct all or part of a dividend to be paid by
distributing specific assets (and
in particular paid-up shares or debentures of any other company) rather than cash. The directors
must give effect to that resolution. Where any difficulty arises on the
distribution and valuation of the assets,
the directors can settle it as they decide. In particular, they can:

 

·                  issue
fractional certificates;

 

·                  value assets for distribution purposes;

 

·                  pay cash of a similar value to adjust the rights of
persons entitled to the dividend; and/or

 

·                  transfer any assets to trustees
for persons entitled to the dividend.

 

122                           Calculation and currency of dividends

 

122.1                 All dividends
will be divided and paid in proportions based on the amounts which have been paid-up on the shares during any period for which the dividend is paid. Sums
which have been paid-up in advance
of calls do not count in
calculating the amount of a dividend to be paid on a share. If the terms on
which any share is issued provide that such share will be entitled to a dividend as if
it were a fully-paid-up, or partly-paid-up, share from a particular date (in the past or the future), it
will be entitled to a dividend on this basis. This Article applies unless
the rights attached to any shares, or the terms of any shares,
provide otherwise.

 

122.2                 Unless the rights attached to any shares, or the terms of any shares,
or the Articles provide otherwise,
a dividend, or any other money payable in respect of any share, can be paid to a shareholder in whatever currency the
directors decide, using an appropriate exchange rate selected by the directors
for any currency conversions which are required.

 

122.3                 The directors
can decide that a particular Approved
Depositary should be able to receive dividends in a currency other
than the currency in which it is declared and
can make arrangements accordingly. In particular, if an Approved Depositary has chosen or agreed to
receive dividends in another currency, the directors can make arrangements with
the Approved Depositary for
payment to be made to the Approved Depositary
for value on the date on which the relevant dividend is paid, or a
later date decided on by the directors.

 

123                           Deducting amounts owing from dividends and other money

 

If
a shareholder owes any money for calls on shares,
or money relating in any other way to shares,
the directors can deduct any of this money (as long as it is immediately
payable) from:

 

·                  any dividend on
any shares held by the shareholder; or

 

·                  any other money
payable by the Company in
connection with the shares.

 

Money
deducted in this way can be used to pay amounts owed to the Company in connection with the shares.

 

56

 

124                           Payments to shareholders

 

124.1                 Any dividend or
other money payable in connection with the shares
must be paid to:

 

·                  the holder of
that share;

 

·                  if the share is held by more than one person,
whichever of the joint holders’ names appears first in the Register;

 

·                  if the member
is no longer entitled to the share,
the person or persons who have become automatically
entitled to the shares by law;
or

 

·                  such other
person or persons as the member (or, in the case of joint holders of a share, all of them) may direct.

 

124.2                 Any dividend or
other money payable in cash (whether in sterling
or foreign currency) relating to a share
can be paid by such method as the directors, in their absolute
discretion, may decide. Different methods of payment may apply to different shareholders or groups of shareholders (such as overseas shareholders). Without limiting any other
method of payment which the Company may
adopt, the directors may decide that payment can be made wholly or partly:

 

·                  by inter-bank
transfer, electronic form, electronic means or by such other means
approved by the directors directly to an account (of a type approved by the
directors) as instructed by the shareholder or
the joint shareholders; or

 

·                  by cheque or warrant or any other similar financial
instrument made payable to the shareholder who
is entitled to it and sent direct to his registered address or, in the case of
joint shareholders, to the shareholder who is first named in the Register and sent direct to his registered
address, or to someone else named in an instruction from the shareholder (or from all joint shareholders).

 

124.3                 If the
directors decide that payments will be made by electronic transfer to an
account (of a type approved by the directors) nominated by a shareholder or joint shareholders, but no such account is
nominated by the shareholder or
joint shareholders or an
electronic transfer into a nominated account is rejected or refunded, the Company may credit the amount payable to an
account of the Company to be held
until the shareholder nominates a
valid account.

 

124.4                 An amount
credited to an account under Article 124.3 is to be treated as having been
paid to the shareholder at the
time it is credited to that account. The Company
will not be a trustee of the money and no interest will accrue on the money.

 

124.5                 The Company will not pay interest on any
dividend or other money due to a shareholder in
respect of his shares, unless the rights of the shares provide otherwise.

 

124.6                 Payment by
electronic transfer, cheque or warrant,
or in any other way, is made at the risk of the people who are entitled to the
money. The Company is treated as
having paid a dividend if a payment using electronic or other means approved by
the directors is made in accordance with instructions given by the Company or if such a cheque or warrant is cleared. The Company will not be responsible for a
payment which is lost or delayed.

 

124.7                 For joint shareholders, the Company can rely on a receipt for a
dividend or other money paid on shares from
any one of them.

 

57

 

125                           Record dates for payments and other matters

 

Any dividend or distribution
on shares of any class can be paid
to the holder or holders of the shares shown
on the Register, at the close of
business on whatever day may be provided in the resolution declaring the
dividend or providing for the distribution. The dividend or distribution will
be based on the number of shares registered
on that day. This Article applies whether what is being done is the result of a
resolution of the directors or a resolution passed at a General Meeting. The date can be before any
relevant resolution was passed. This Article does not affect the rights to the
dividend or distribution as between past and present shareholders.

 

126                           No interest on dividends

 

No interest is payable on
any dividend or other money payable in connection with the shares unless the terms of issue
of those shares or the
provisions of any agreement between the Company
and the shareholders provide
otherwise.

 

127                           Retention of dividends

 

127.1                 The directors may retain all
or part of any dividend or other money payable in connection with the shares on which the Company has a lien in respect of which a notice has been issued following
non-payment of a call in accordance with Article 23.

 

127.2                 The Company must use any amounts retained under
Article 127.1 towards satisfaction of the moneys payable to the Company in respect of that share.

 

127.3                 The Company must notify the person otherwise
entitled to payment of the sum that it has been retained and how the retained
sum has been used.

 

127.4                 The directors may retain the
dividends payable upon shares:

 

·                                          in respect of
which any person is entitled to become a member pursuant to Article 41 until
such person shall become a member in respect of such shares; or

 

·                                          which any
person is entitled to transfer pursuant to Article 44 until such person has
transferred those shares.

 

128                           Dividends which are not claimed

 

128.1                 If an amount is held in an
account pursuant to Article 124.3, or a payment made by cheque, warrant or any other written financial instrument for an amount payable under
Article 124.2 has not been claimed, for one year after the passing of either
the resolution passed at a General Meeting declaring
that dividend or the resolution of the directors providing for payment of that
dividend, the directors may invest the dividend or use it in some other way for
the benefit of the Company until
the dividend is claimed. If a dividend has not been claimed for 12 years after
either the passing of the relevant resolution either declaring that dividend or
providing for payment of that dividend, it will be forfeited and belong to the Company again.

 

128.2                 If an amount is held in an
account pursuant to Article 124.3, or a cheque, warrant or other written financial instrument for an amount payable under
Article 124.2 has been sent back or is not cashed, for two dividends in a row,
the Company can stop paying
dividends. If the

 

58

 

shareholder
or a person automatically entitled
to the shares
by law claims those dividends in writing (before they are forfeited
under Article 128.1), the Company must
start paying dividends by any payment method approved by the directors in
accordance with Article 124.

 

129                           Waiver of
dividends

 

Where a shareholder wants to waive his entitlement
to all or any part of a dividend, he may do so by delivering a notice in
writing to that effect, signed, or authenticated in accordance with Article
141, by him, to the Company. If
appropriate, the notice in writing may be signed, or authenticated in
accordance with Article 141, by whoever has become automatically entitled to the shares
by law. For the waiver to be effective, the Company must accept the notice in writing
and act on it. The Company may,
however, decline to act on the notice in writing and continue to pay dividends
to the shareholder accordingly.

 

CAPITALISING RESERVES

 

130                           Capitalising reserves

 

130.1                 Subject to
any special rights attaching
to any class of shares, the shareholders can pass an ordinary resolution to allow the directors
to change into capital any sum which:

 

·                                          is part of any
of the Company’s reserves (including premiums received when any shares were issued, capital redemption reserves or other undistributable
reserves); or

 

·                                          the Company is holding as undistributed
profits.

 

130.2                 Unless the ordinary resolution states otherwise the
directors will use the sum which is changed into capital for the Ordinary Shareholders on the Register at the close of business on the
day the resolution is passed (or another date stated in the resolution or fixed
as stated in the resolution). The sum set aside must be used to pay up in full shares of the Company and to allot such
shares and distribute them to
holders of Ordinary Shares as
bonus shares in proportion to
their holdings of Ordinary Shares at
the time. The shares can be Ordinary Shares or, if the rights of other existing shares allow this, shares of some other class.

 

130.3                 If any difficulty arises in
operating this Article, the directors can, subject to the Companies Act 2006 and the CREST Regulations, resolve it in any way
which they decide. For example they can deal with entitlements to fractions of
a share. They can decide that the
benefit of fractions of a share belongs
to the Company or that fractions
of a share are ignored or deal
with fractions of a share in some
other way.

 

130.4                 The directors can appoint
any person to sign any contract with the Company
on behalf of those who are entitled to shares under the resolution. Such a contract is binding on all
concerned.

 

59

 

SCRIP DIVIDENDS

 

131                           Ordinary Shareholders can be offered the right to receive extra shares
instead of cash dividends

 

131.1                 The directors can offer Ordinary Shareholders the right to choose
to receive extra Ordinary Shares,
which are credited as fully-paid shares instead
of some or all of their cash dividend. Before they can do this, the shareholders must have passed an ordinary resolution authorising the
directors to make this offer.

 

131.2                 The ordinary resolution can apply to a
particular dividend or dividends (whether declared
or not). Alternatively, it can apply to some or all of the dividends
which may be declared or paid in
a specified period. The specified period must end no later than five years
after the ordinary resolution is
passed. The directors can (without the need for any further ordinary resolution) offer rights of
election in respect of any dividend declared
or proposed after the date these Articles are
adopted and at, or prior to, the next Annual General
Meeting.

 

131.3                 The directors can offer Ordinary Shareholders or persons automatically entitled by operation of law the
right to request new Ordinary Shares instead
of cash for:

 

·                                          the next
dividend proposed to be paid; or

 

·                                          in respect of
that dividend or all future dividends (if shares
are made available as an alternative to a cash dividend), until they
tell the Company that they no
longer wish to receive new Ordinary Shares,
or the authority given under Article 131.1 expires and in not renewed
(whichever happens earlier).

 

The
directors can also allow Ordinary
Shareholders to choose between these alternatives.

 

131.4                 An Ordinary Shareholder opting for new shares is entitled to Ordinary Shares whose total relevant value is as near as possible to
the cash dividend (disregarding any tax credit) he would have received, but no
greater than such cash dividend.

 

131.5                 The relevant value of an Ordinary Share is a value calculated in the
manner set out in the ordinary resolution or,
if the ordinary resolution does
not set out how the relevant value of
an Ordinary Share is to be
calculated, then the relevant value of
an Ordinary Share is the average
value of the Ordinary Shares for
the five dealing days starting from, and including, the day when the shares are first quoted “ex dividend ”.
This average value is worked out from the average middle market quotations for
the Ordinary Shares on the London Stock Exchange, as published in its
Daily Official List. A certificate or report from the Company’s auditors as to the amount of the relevant value will be conclusive evidence
of that amount.

 

131.6                 After the directors have
decided to apply this Article to a dividend, they must notify eligible Ordinary Shareholders in writing of their
right to choose new Ordinary Shares.
This notice should also set out the procedure by which the Ordinary Shareholders must notify the Company if they wish to receive new Ordinary Shares. Where Ordinary Shareholders have already chosen
to receive new Ordinary Shares in
place of all cash future dividends, if new Ordinary
Shares are available, the Company will
not notify them of a right to receive new Ordinary
Shares. Instead, the Company will
remind them that they have already chosen to receive new Ordinary Shares and explain to them how to
tell the Company if they wish to
start receiving cash dividends again.

 

60

 

131.7                 The directors can set a
minimum number of Ordinary Shares in
respect of which the right to choose new Ordinary
Shares can be exercised.
No Ordinary Shareholder or person
who is automatically entitled to an Ordinary Share by law will
receive a fraction of a share. The
directors can decide how to deal with any fractions left over and the Company can, if the directors decide,
receive the benefit of any or all of these.

 

131.8                 The directors can exclude or
restrict the right to choose new Ordinary
Shares, or make any other arrangements where they decide that:

 

·                                          this is
necessary or convenient to deal with any legal or practical problems in
relation to holders of Ordinary Shares with
registered addresses in any particular territory under the laws of any
territory, or requirements of any recognised regulatory body or stock exchange
in any territory; or

 

·                                          special
formalities would otherwise apply in connection with the offer of new Ordinary Shares (including Ordinary Shares being represented by American Depositary Shares); or

 

·                                          it would be
impractical or unduly onerous to give the right to any Ordinary Shareholder or that for some other
reason the offer should not be made to them.

 

131.9                 The directors can exclude or
restrict the right to choose new Ordinary
Shares in the case of any shareholder who is an Approved Depositary or a nominee for an Approved Depositary. They can do this if
the offer or exercise of the
right to or by the people on whose behalf the Approved
Depositary holds the shares would
suffer from legal or practical problems of the kind mentioned in Article 131.8.
If other Ordinary Shareholders (other
than those excluded under Article 131.8) have the right to choose new Ordinary Shares, the directors must be
satisfied that an appropriate dividend reinvestment plan or similar arrangement
is available to a substantial majority of the people on whose behalf the Approved Depositary holds shares or that such arrangements will be
available promptly. The first sentence of this Article 131.9 does not apply
until the directors are satisfied of this.

 

131.10          If an Ordinary Shareholder chooses to receive new
Ordinary Shares, no dividend on
the Ordinary Shares for which he
has chosen to receive new Ordinary Shares (which
are called the elected shares),
will be declared or payable.
Instead, new Ordinary Shares will
be allotted on the basis set out
earlier in this Article. To do this the directors will convert into capital a
sum equal to the total nominal value of
the new Ordinary Shares to be allotted. They will use this sum to pay up
in full the appropriate number of new Ordinary
Shares. These will then be allotted
and distributed to the holders of the elected shares as set out above. The sum to be converted into
capital can be taken from any amount which is then in any reserve or fund (including the share premium account, any capital redemption reserve and the profit
and loss account). Article 130 applies to this process, so far as it is
consistent with this Article 131.

 

131.11          The new Ordinary Shares rank equally in all respects with the existing fully-paid-up Ordinary Shares at the time the new Ordinary Shares are allotted. The new Ordinary Shares are not entitled to share
in the dividend from which they arose or any other dividend or distribution or
other entitlement which has been declared,
made or paid or is payable by reference to such record date or earlier record
date.

 

131.12          Unless the directors decide
otherwise or the CREST Regulations or
the rules of a relevant
system require otherwise, any new Ordinary Shares which an Ordinary
Shareholder has chosen to receive instead of some or all of his cash
dividend will be:

 

61

 

·                                          shares in uncertificated
form if the corresponding elected
shares were uncertificated shares on
the record date for that dividend;
and

 

·                                          shares in certificated
form if the corresponding elected
shares were shares in certificated form on the record date for that dividend.

 

131.13          The directors can decide
that new Ordinary Shares will not
be available in place of any cash dividend. They can decide this at any time
before new Ordinary Shares are allotted in place of such dividend,
whether before or after Ordinary Shareholders
have chosen to receive new Ordinary
Shares.

 

131.14          The directors have the power
to do all acts and things they consider necessary to give effect to this
Article.

 

ACCOUNTS

 

132                           Accounting and other records

 

132.1                 The directors must make sure
that proper accounting records that comply with the Companies Acts are kept. These records must explain the Company’s transactions and show its
financial position at any time with reasonable accuracy.

 

133                           Location and inspection of records

 

133.1                 The accounting records must
be kept:

 

·                                          at the Registered Office; or

 

·                                          at any other
place which the Companies Acts allow
and the directors decide on.

 

133.2                 The Company’s officers always have the right to
inspect the accounting records.

 

133.3                 No shareholder (other than a shareholder who is also an officer) has any
right to inspect any books or papers of the Company
unless:

 

·                                          the Companies Acts or a proper court order give
him that right; or

 

·                                          the directors
authorise him to do so; or

 

·                                          he is
authorised by an ordinary resolution to
do so.

 

COMMUNICATIONS WITH SHAREHOLDERS

 

134                           Serving and delivering notices and other documents

 

134.1                 To the extent permitted and
unless required otherwise by the Companies
Acts, any other Act applying
to the Company or these Articles, the Company can send, serve, supply or deliver any offer, notice,
information or any other document, including a share certificate, on or to a shareholder:

 

·                                          personally;

 

62

 

·                                          by posting it
in a letter (with postage paid) to the shareholder’s
registered address or by causing it to be left at that address in
some other way; or

 

·                                          by electronic means and/or by making such
offers, notices, information or documents available on a website.

 

134.2                 The Company Communication Provisions have
effect, subject to the provisions
of Articles 137, 138 and 141, for the purposes of any provisions of the Companies Acts or these Articles that authorise or requires offers,
notices, information or any other documents to be sent, served, supplied or
delivered by or to the Company.

 

134.3                 Articles 134 to 141 do not
affect any provision of the Companies Acts requiring
offers, notices, information or documents to be sent, served, supplied or
delivered in a particular way.

 

135                           Notices to joint holders

 

135.1                 Anything which needs to be
agreed or specified by the joint holders of a share shall for all purposes be
taken to be agreed or specified by all the joint holders where it has been
agreed or specified by the joint holder whose name stands first in the Register in respect of the share.

 

135.2                 If more than one joint
holder gives instructions or notifications to the Company pursuant to these Articles
then save where these Articles specifically
provide otherwise, the Company shall
only recognise the instructions or notifications of whichever of the joint
holders’ names appears first in the Register.

 

135.3                 Any offer, notice,
information or any other document which is authorised or required to be sent or
supplied to joint holders of a share may be sent or supplied to the joint
holder whose name stands first in the Register
in respect of the share, to the exclusion of the other joint
holders. For such purpose, a joint holder having no registered address in the United Kingdom and not having supplied an
address within the United Kingdom for
the service of notices may, subject to any
Act applying to the Company, be disregarded.

 

135.4                 The provisions of this
Article shall have effect, subject to the
Companies Acts, in place of the Company Communications Provisions regarding
notices to joint holders.

 

136                           Notices for shareholders with foreign addresses

 

Subject to
the Companies Acts and any
other Act applying to the Company, the Company shall not be required to send offers, notices,
information or any other documents to a shareholder
who (having no registered address within the United Kingdom) has not supplied to the Company a postal address within the United Kingdom for the service of notices.

 

137                           When notices are served

 

137.1                 If an offer, notice,
information or any other document is delivered or served by hand, it is treated
as being delivered or served at the time it is handed to the shareholder or left at his registered
address.

 

63

 

137.2                 If an offer, notice,
information or any other document (including a share certificate) is sent or
supplied by the Company in hard
copy form, or in electronic form, but to be delivered other than by electronic means, and which is sent by
pre-paid post and properly addressed shall be deemed to have been received by
the intended recipient at the expiration of 24 hours after the time it was
posted, and in proving such receipt it shall be sufficient to show that such
offer, notice, information or other document was properly addressed, pre-paid
and posted.

 

137.3                 If an offer, notice,
information or any other document is sent or supplied by the Company by electronic means it shall be deemed to have been received by
the intended recipient two hours after it was transmitted, and in proving such
receipt it shall be sufficient to show that such offer, notice, information or
other document was properly addressed.

 

137.4                 If an offer, notice,
information or any other document is sent or supplied by the Company by means of a website it shall be
deemed to have been received when the material was first made available on the
website or, if later, when the recipient received (or is deemed to have
received) notice of the fact that the material was available on the website.

 

137.5                 This Article shall have
effect, subject to any mandatory
provision of the Companies Acts and
any other Act applying to the Company, in place of the Company Communications Provisions relating
to when offers, notices, information or any other documents are deemed
delivered.

 

138                           Serving notices and documents on shareholders who have died or are
bankrupt

 

138.1                 A person who claims to be
entitled to a share in consequence of the death or bankruptcy of a shareholder or otherwise by operation of
law shall supply to the Company:

 

·                                          such evidence
as the directors may reasonably require to show his title to the share; and

 

·                                          an address
within the United Kingdom for the
service of notices,

 

whereupon he shall be
entitled to have served upon or delivered to him at such address any offer,
notice, information or any other document to which the said shareholder would have been entitled, and
such service or delivery shall for all purposes be deemed a sufficient service
or delivery of such offer, notice, information or any other document on all
persons interested (whether jointly with or claiming through or under him) in
the share.

 

138.2                 Save as provided by Article
138.1, any offer, notice, information or any other document delivered or sent
to the address of any shareholder in
pursuance of these Articles shall,
notwithstanding that such shareholder be
then dead or bankrupt or in liquidation, and whether or not the Company has notice of his death or
bankruptcy or liquidation, be deemed to have been duly delivered or sent in
respect of any share registered in the name of such shareholder as sole or first-named joint holder.

 

138.3                 The provisions of this
Article shall have effect in place of the Company
Communications Provisions regarding the death or bankruptcy of a
holder of shares in the Company.

 

64

 

139                           If documents are accidentally not sent or the postal services are
suspended

 

139.1                 The accidental failure to
send, or the non-receipt by any person entitled to any offer, notice,
information or any other document relating to any meeting or other proceeding
shall not invalidate the meeting or other proceeding.

 

139.2                 If at any time by reason of
the suspension or curtailment of postal services within the United Kingdom the Company is unable to give notice by post in
hard copy form of a shareholders’ meeting,
such notice shall be deemed to have been given to all shareholders entitled to receive such
notice in hard copy form if such notice is advertised in at least one national
newspaper and such notice shall be deemed to have been given on the day when
the advertisement appears. In any such case, the Company shall (i) make such notice available on its website
from the date of such advertisement until the conclusion of the meeting or any adjournment thereof and (ii) send
confirmatory copies of the notice by post to such shareholders if at least seven days prior to the meeting the
posting of notices again becomes practicable.

 

140                           When entitlement to notices stops

 

140.1                 If the Company sends a notice or other
communication to a shareholder on
two separate occasions during a 12-month period and each of them is returned
undelivered or the Company receives
notification that such notice or other communication has not been delivered in
each case then that shareholder will
not be entitled to receive notices or other communications from the Company.

 

140.2                 A shareholder who has ceased to be entitled to receive notices
or communications from the Company pursuant to Article 140.1 becomes entitled
to receive a notice or communication again by supplying the Company with:

 

·                                          a new postal
address; or

 

·                                          an electronic
address,

 

for
the service of notices.

 

140.3                 For the purposes of this
Article 140, references to a communication include references to any method of
payment; but nothing in this Article 140 will entitle the Company to stop sending any dividend by any
means, unless the Company is also
entitled to do so under Article 128.2.

 

141                           Signature or authentication of documents sent electronically

 

141.1                 Where these Articles require an offer, notice,
information or any other document to be signed or authenticated by a shareholder or any other person then any
such offer, notice or other document sent or supplied in electronic form or by
means of a website shall be sufficiently authenticated in any manner authorised
by the Company Communications Provisions or
in such other manner approved by the directors.

 

141.2                 The directors may determine
procedures for validating offers, notices, information or any other documents
sent or supplied in electronic form or by means of a website, and any offer,
notice, information or any other document, not validated in accordance with
such procedures shall be deemed not to have been received by the Company.

 

65

 

MINUTES

 

142                           Minutes

 

142.1                 The directors must ensure
that minutes are entered in books kept for the purpose of:

 

·                                          all
appointments of officers made by the directors;

 

·                                          the names of
the directors present at each directors’ meeting and of any committee of the
directors;

 

·                                          all resolutions
and proceedings at all General Meetings of the Company,
the holders of any class of shares in
the Company, the directors and any
committees of the directors.

 

142.2                 If any such minute purports
to be signed or authenticated by the chairman of the meeting at which the
proceedings took place or by the chairman of the next succeeding meeting this
shall be conclusive evidence of the proceedings.

 

WINDING UP

 

143                           Directors’
power to petition

 

The directors can present a
petition to the Court in the name and on behalf of the Company for the Company to be wound up.

 

DESTROYING DOCUMENTS

 

144                           Destroying documents

 

144.1                 The Company can destroy all:

 

·                                          forms of
transfer of shares, and documents
sent to support a transfer, and any other documents which were the basis for
making an entry on the Register,
after six years from the date of registration;

 

·                                          dividend
payment instructions and notifications of a change of address or name, after
two years from the date these were registered;

 

·                                          cancelled share
certificates, one year after the date they were cancelled; and

 

·                                          proxy
appointments from one year after the end of the meeting to which the
appointment relates.

 

144.2                 A document destroyed in
accordance with Article 144.1 is conclusively treated as having been a valid
and effective document in accordance with the Company’s
records relating to the document. Any action of the Company in dealing with the document in
accordance with its terms before it was destroyed is conclusively treated as
properly taken.

 

144.3                 Articles 144.1 and 144.2
only apply to documents which are destroyed in good faith and if the Company has not been informed that keeping
the documents is relevant to any claim.

 

66

 

144.4                 For documents relating to shares in uncertificated
form, the Company must
also comply with any rules (as defined in the CREST
Regulations) which limit its ability to destroy these documents.

 

144.5                 This Article does not make
the Company liable if it:

 

·                                          destroys a
document earlier than referred to in Article 144.1; or

 

·                                          would not be
liable if this Article did not exist.

 

144.6                 The Company can, subject to the Companies
Acts, destroy a document earlier than the dates mentioned in Article
144.1 if the Company makes a
permanent record (whether made electronically
or by any other means) of that document before it is destroyed.

 

144.7                 This Article applies whether
a document is destroyed or disposed of in any other manner.

 

DIRECTORS’ LIABILITIES

 

145                           Indemnity

 

145.1                 Subject to
the provisions of, and so far as may be permitted by and consistent
with, the Companies Acts, rules
made by the UK Listing Authority and
local law as applicable, every director, Secretary
and officer of the Company and
of each Associated Company of the Company may be indemnified by the Company
out of its own funds against:

 

·                                          any liability incurred by or attaching to him
in connection with any negligence, default, breach of duty or breach of trust
by him in relation to the Company or
any Associated Company of the Company other than in the case of a
director of the Company or any Associated Company:

 

(i)                                     any liability to the Company or any Associated Company; and

 

(ii)                                  any liability of the kind referred to in
Section 234(3) of the Companies Act 2006;
and

 

·                                          any other liability incurred by or attaching to him
in the actual or purported execution and/or discharge of his duties and/or the exercise or purported exercise of his powers and/or otherwise in
relation to or in connection with his duties, powers or office.

 

145.2                 Subject to
the provisions of, and so far as may be permitted by and consistent
with, the Companies Acts, the
rules of the UK Listing Authority and
local law as applicable, every director, Secretary
and officer of the Company and
of each Associated Company of the Company may be indemnified by the Company
out of its own funds against:

 

·                                          any liability incurred by or attaching to him
in connection with any negligence, default, breach of duty or breach of trust
by him in relation to the Company or
any Associated Company of the Company, if it is the trustee of an
occupational pension scheme (within the meaning of Section 235(6) of the Companies Act 2006), in so far as such liability relates to the Company’s or any such Associated Companies’ activities as trustee
of such occupational pension scheme and other than in the case of a director of
the Company or any Associated Company any liability of the kind referred to in
Section 235(3) of the Companies Act 2006;
and

 

67

 

·                                          any other liability incurred by or attaching to him
in the actual or purported execution and/or discharge of his duties and/or the exercise or purported exercise of his powers and/or otherwise in
relation to or in connection with his duties, powers or office.

 

145.3                 Where a director, Secretary or officer is indemnified against any liability in accordance with this Article
145, such indemnity shall extend
to all costs, charges, losses, expenses and liabilities
incurred by him in relation thereto.

 

145.4                 In this Article Associated Company shall have the meaning
given by Section 256 of the Companies Act
2006.

 

145.5                 So far as the Companies Acts allow, the Secretary and other officers, who are not
directors of the Company or an Associated Company of the Company of the Company are exempted from any liability
to the Company or any Associated Company of the Company where that liability would be covered by the indemnity in Article 145.1.

 

146                           Insurance and defence funding

 

146.1                 For the purpose of this
Article each of the following is a Relevant
Company:

 

·                                          the Company;

 

·                                          any holding company of the Company;

 

·                                          any company in which the Company or its holding company or any of the predecessors of the Company or of its holding company has or had any interest,
whether direct or indirect; and

 

·                                          any company which is in any way allied to or
associated with the Company, or
any subsidiary
undertaking of the Company or
such other company.

 

146.2                 Without limiting Article 145
in any way, the directors can arrange for the Company
to purchase and maintain insurance for or for the benefit of any
persons who are or were at any time:

 

·                                          directors,
officers or employees of any Relevant Company;
or

 

·                                          trustees
of any pension fund or employees’ share scheme in which employees of
any Relevant Company are
interested.

 

This
includes, for example, insurance against any liability
incurred by them for any act or omission:

 

·                                          in performing
or omitting to perform their duties; and/or

 

·                                          in exercising or omitting to exercise their powers; and/or

 

·                                          in claiming to
do any of these things; and/or

 

·                                          otherwise in
relation to their duties, powers or offices.

 

146.3                 Subject to
the provisions of and so far as may be permitted by the Companies Act 2006, rules made by the UK Listing Authority and local law as
applicable, the Company:

 

68

 

·                                          may provide a
director, Secretary or officer of
the Company or any Associated Company of the Company with funds to meet expenditure
incurred or to be incurred by him in:

 

(i)                                     defending any
criminal or civil proceedings in connection with any negligence, default,
breach of duty or breach of trust by him in relation to the Company or an Associated Company of the Company;
or

 

(ii)                                  in connection
with any application for relief under the provisions mentioned in Section
205(5) of the Companies Act 2006;
and

 

·                                          may do anything
to enable any such director, Secretary or
officer to avoid incurring such expenditure.

 

146.4                 The terms set out in Section
205(2) of the Companies Act 2006 shall
apply to any provision of funds or other things done under Article 146.3.

 

146.5                 Subject to
the provisions of and so far as may be permitted by the Companies Acts, rules made by the UK Listing Authority and local law as
applicable, the Company:

 

·                                          may provide a
director, Secretary or officer of
the Company or any Associated Company of the Company with funds to meet expenditure
incurred or to be incurred by him in defending himself in an investigation by a
regulatory authority or against action proposed to be taken by a regulatory
authority in connection with any alleged negligence, default, breach of duty or
breach of trust by him in relation to the Company
or any Associated Company of
the Company; and

 

·                                          may do anything
to enable any such director, Secretary or
officer to avoid incurring such expenditure.

 

146.6                 In this Article Associated Company shall have the meaning
given thereto by Section 256 of the Companies
Act 2006.

 

SHARE WARRANTS

 

147                           Issue of Share Warrants

 

147.1                 The Company can issue Share Warrants which
state that the bearer of the Share Warrant (“Bearer”) is entitled to the shares specified in the Share Warrant. The Company can only do this in a way which is
allowed under the Companies Acts and
in Articles 147 to 154. Share Warrants can
provide for the payment of future dividends and other distributions relating to
the shares. Payment can be made by
exchanging coupons which can be attached to the Share Warrants, or in any other way which the directors
determine.

 

147.2                 The Bearer of a Share Warrant is entitled to the number of shares which are specified in it. These shares can be transferred by one person
delivering the Share Warrant to
another.

 

147.3                 Subject to
Article 147.2, the provisions of the Articles
relating to share certificates and transferring shares do not apply to Share Warrants.

 

147.4                 Each Share Warrant must be issued under the Seal.

 

69

 

147.5                 The directors can decide on
the language and form of, and the number of shares
represented by, each Share Warrant.
Subject to the Articles, the directors can vary the
conditions of issue of any Share Warrant from
time to time.

 

148                           Directors can accept a certificate instead of a Share Warrant

 

148.1                 The directors can accept a
certificate from the persons referred to in Article 148.2 stating that they
hold Share Warrants on behalf of
someone named in the certificate as proof of matters set out in such
certificate. The certificate will be in such form as the directors decide
(including details of the number of shares to
which the Share Warrant relates).

 

148.2                 The only people who may
deliver a certificate to the Company are
the ADR Depositary or any bank or agent which has been appointed by the Company. For the purposes of Articles 147
to 153, the Company can treat the
deposit of the certificate as though the Share
Warrant itself had been deposited at the Transfer Office.

 

148.3                 As long as the certificate
is in a form agreed by the directors, the Company
does not need to make any further enquiry into the accuracy of the
information contained in the certificate.

 

149                           Requesting a Share Warrant

 

149.1                 A Share Warrant will only be issued
if a shareholder requests
in writing that a Share Warrant is
issued for some or all of the shares which are registered in his name.

 

149.2                 The request must be
addressed to the directors at the Transfer
Office. The directors can specify the form of the request, and can
require that evidence is sent with the request to prove the identity of the
person making the request and his right to the shares. The directors do not have to agree to this request.

 

149.3                 Where a shareholder requests that Share Warrants are issued in relation to shares registered in his name, and there are
share certificates in respect of those shares,
a Share Warrant will only be issued once the share certificates have
been delivered to the Transfer Office for
cancellation.

 

149.4                 A person who requests a Share Warrant (including a person
requesting a Share Warrant in the
circumstances described in Article 150) is responsible (and will re-imburse the
Company) for all and any stamp
duties, stamp duty reserve tax, bearer instrument
duty, taxes, charges, fees, interest and penalties payable in
connection with the issue of the Share Warrants. This Article 149.4 applies
unless the person requesting the Share
Warrant agrees otherwise with the Company.

 

150                           Replacing Share Warrants

 

150.1                 If a Share Warrant is damaged or defaced, the Bearer can request a new one, once he
returns the damaged or defaced Share Warrant to
the directors at the Transfer Office.
Once any payments of the types described in Article 149.4 are made (if any), a
new Share Warrant will be issued.

 

150.2                 If a Share Warrant is said to have been lost,
stolen or destroyed, the directors can issue a replacement (although they do
not have to do so). The directors can require satisfactory evidence of the
loss, theft or destruction, an indemnity,
the payment of any exceptional out

 

70

 

of pocket expenses, and
payments of the types described in Article 149.4 before issuing a replacement.

 

150.3                 The Bearer can ask the directors to cancel his
existing Share Warrant and replace
it with two (or more) Share Warrants which
together represent the same number of shares which
the original single Share Warrant represented.
The directors do not have to comply with this request. If they do, the Bearer will have to surrender his original Share Warrant and can be required by the
directors to make any payments of the types described in Article 149.4 before
the new Share Warrants are issued.

 

151                           Rights of the Bearer

 

151.1                 The Bearer (or a person who has deposited his Share Warrant in accordance with Article
151.2 or if the directors so decide, Article 148.2) shall be entitled to the
same rights and be subject to the
same obligations as those to which he would be entitled or subject if he were
the registered holder of the shares to
which the Share Warrant relates.
This is subject to the provisions
of Articles 147 to 154.

 

151.2                 Where a Bearer deposits his Share Warrant, together with a declaration
in writing giving his name and address, at the Transfer Office (or some other place specified by the
directors) he has certain rights at any General
Meeting provided that such Share
Warrant is deposited at least 48 hours in advance of such meeting.
For as long as the Share Warrant remains
so deposited, the person who deposited it will have the following rights as if
he were the registered holder from the time of deposit of the shares specified in the Share Warrant at a General Meeting:

 

·                                          the right to
sign a form requiring a General Meeting;

 

·                                          the right to
give notice of his intention to submit a resolution at a General Meeting;

 

·                                          the right to
attend, speak and vote, appoint a proxy and
exercise the other rights of a shareholder at a General Meeting.

 

151.3                 Any Share Warrant which is deposited in
accordance with Article 151.2 must remain deposited until the end of the General Meeting at which the person who
deposited the Share Warrant desires
to attend or be represented.

 

151.4                 If a person presents a Share Warrant at the Transfer Office, the Company is entitled to assume that this
person is the owner of the Share Warrant.
The Company can pay dividends or
moneys relating to the shares specified
in the Share Warrant which are due
to this person either to such person or to an account specified by him. If the Company does this, it shall have performed
its obligation to pay that dividend or those moneys.

 

152                           Bearers of Share Warrants participating in securities offers

 

152.1                 In the case of a securities offer, there is no need to
contact any Bearer individually.
Instead, all the Company need do
is advertise the details of the securities
offer in a leading United Kingdom national
daily newspaper (and any other newspapers the directors decide on).

 

152.2                 If, following the
publication of the advertisement referred to above, the Bearer deposits the Share Warrant (or, if appropriate, the
coupon attached to the Share Warrant)
at the Transfer Office (or some
other place mentioned in the advertisement), within the time limit

 

71

 

set out in the securities offer, he shall have the same
right to participate in the securities offer as
if he were the registered holder of the shares
specified in the Share Warrant.

 

152.3                 For the purposes of this
Article, a securities offer means
an offer of shares, securities or debentures to shareholders
or any class of shareholders,
or a proposed issue of shares pursuant to Article 130.

 

153                           Communications with Bearers of Share Warrants

 

153.1                 In the case of any
communication (for example, a notice of General
Meeting, a circular or annual report) with shareholders, there is no need for the Company to contact any Bearer individually. Instead, all the Company need do is advertise the
communication in a leading United Kingdom national
daily newspaper (and any other newspapers the directors decide on), giving an
address where copies of the communication may be obtained by the Bearer.

 

153.2                 The Company must communicate with the Bearer in a different way, if the London Stock Exchange requires this.

 

154                           Issuing shares to which the Share Warrant relates

 

154.1                 The Bearer can ask to be registered as a shareholder (or that another person be so
registered) in respect of all or any of the shares
specified in the Share Warrant.
In order to do so he must deposit at the Transfer
Office (or another place specified by the directors):

 

·                                          the Share Warrant; and

 

·                                          a signed
declaration in a form agreed by the directors which sets out the names and
addresses of the persons, and the numbers of shares,
in whose name he wishes such shares to
be registered.

 

154.2                 The Company will comply with a request made in
accordance with Article 154.1 only upon the payment (or reimbursement) by the Bearer of all and any stamp duties, stamp
duty reserve tax, bearer instrument duty,
taxes, charges, fees, interest and penalties payable in connection with the issue of the shares. The Company may,
however, agree that any such taxes or costs do not have to be paid by the Bearer.

 

154.3                 If the Company complies with a request made in
accordance with Article 154.1, the person named in the declaration will be
entitled to have his name entered as a member
in the Register in
respect of the shares specified in
the declaration and to receive a share certificate for them. The time limit for
the Company to prepare a share
certificate under this Article 154.3 is two months from the decision to comply
with a request made in accordance with Article 154.1.

 

154.4                 If the declaration does not
deal with all the shares to which
the Share Warrant relates, a new Share Warrant for the remaining shares will be issued, without charge, to the person who deposited the old Share Warrant. The new Share Warrant will only be issued upon the cancellation of the old Share Warrant.

 

72

 

ADR DEPOSITARY

 

155                           ADR Depositary can appoint proxies

 

155.1                 The ADR Depositary can appoint more than one
person to be its proxy. As long
as the appointment complies with the requirements in Article 155.2, the
appointment can be made in any way and on any terms which the ADR Depositary thinks fit. Each person
appointed in this way is called an Appointed
Proxy.

 

155.2                 The appointment must set out
the number of shares in relation
to which an Appointed Proxy is
appointed. This number is called the Appointed
Number. The Appointed Number of
all Appointed Proxies appointed by
the ADR Depositary, when added
together, must not be more than the number of Depositary
Shares (as calculated in Article 155.3).

 

155.3                 The Depositary Shares attributable to the ADR Depositary consist of the total of the
number of shares:

 

·                                          registered in
the name of the ADR Depositary;

 

·                                          represented by Share Warrants which have been deposited by
the ADR Depositary with the Company in accordance with Article 151; and

 

·                                          represented by Share Warrants which are set out in a
certificate from the ADR Depositary accepted
by the directors in accordance with Article 148.

 

156                           The ADR Depositary must keep a Proxy Register

 

156.1                 The ADR Depositary must keep a register of the
names and addresses of all the Appointed
Proxies. This is called the Proxy Register.
The Proxy Register will also set
out the Appointed Number of shares of each Appointed Proxy. This
can be shown by setting out the number of American
Depositary Receipts which each Appointed
Proxy holds and stating that the Appointed
Number of shares can be
ascertained by multiplying the said number of American
Depositary Receipts by such number which for the time being is equal
to the number of shares which any
one American Depositary Receipt represents.

 

156.2                 The ADR Depositary must let anyone whom the
directors nominate inspect the Proxy Register
during usual business hours on a working
day. The ADR Depositary must
also provide, as soon as possible, any information contained in the Proxy Register if it is demanded by the Company or its agents.

 

157                           Appointed Proxies can only attend General Meetings if properly appointed

 

An Appointed Proxy may only attend a General Meeting if he provides the Company with evidence in writing of his
appointment by the ADR Depositary for
that General Meeting. This must be
in a form agreed between the directors and the ADR Depositary.

 

158                           Rights of Appointed Proxies

 

Subject to
the Companies Acts and
these Articles and so long as the Depositary Shares are sufficient to include
an Appointed Proxy’s Appointed Number:

 

73

 

·                                          at a General Meeting which an Appointed Proxy is entitled to attend, he
is entitled to the same rights and has the same obligations in relation to his Appointed Number of shares as if the ADR Depositary was the registered holder of such shares and he had been validly appointed in
accordance with Articles 69 to 71 by the ADR
Depositary as its proxy in
relation to those shares; and

 

·                                          an Appointed Proxy can himself appoint another
person to be his proxy in
relation to his Appointed Number of
shares, as long as the appointment
is made and deposited in accordance with Articles 69 to 71 and, if it is, the
provisions of these Articles will
apply to such an appointment as though the Appointed
Proxy was the registered holder of such shares and the appointment was made by him in that capacity.

 

159                           Sending information to an Appointed Proxy

 

The Company can send to an Appointed Proxy at his address in the Proxy Register all the same documents which
are sent to shareholders.

 

160                           The Company can pay dividends to an Appointed Proxy

 

The Company can pay to an Appointed Proxy at his address in the Proxy Register all dividends or other
moneys relating to the Appointed Proxy’s
Appointed Number of shares instead
of paying this amount to the ADR Depositary.
If the Company does this, it will
not have any obligation to make this payment to the ADR Depositary as well.

 

161                           The Proxy Register may be fixed at a certain date

 

161.1                 In order to determine which
persons are entitled as Appointed Proxies to:

 

·                                          exercise
the rights conferred by Article 158;

 

·                                          receive
documents sent pursuant to Article 159; and

 

·                                          be paid
dividends pursuant to Article 160

 

and the Appointed Number of shares in respect of which a person is to
be treated as having been appointed as an Appointed
Proxy for such purpose, the ADR
Depositary may determine that the Appointed
Proxies who are entitled are the persons entered in the Proxy Register at the close of business on
a date (a Record Date) determined
by the ADR Depositary in
consultation with the Company.

 

161.2                 When a Record Date is determined for a particular
purpose:

 

·                                          the Appointed Number of shares in respect of an Appointed Proxy will be treated as the
number appearing against his name in the Proxy
Register as at the close of business on the Record Date;

 

·                                          this can be
shown by setting out the number of American
Depositary Receipts which each Appointed
Proxy holds and stating that the number of shares can be ascertained by multiplying
the said number of American Depositary
Receipts by such number which for the time being is equal to the
number of shares which any one American Depositary Receipt represents; and

 

74

 

·                                          changes to
entries in the Proxy Register after
the close of business on the Record Date will
be ignored in determining the entitlement of any person for the purpose
concerned.

 

162                           The nature of an Appointed Proxy’s interest

 

Except as required by the Companies Acts, no Appointed Proxy will be recognised by the Company as holding any interest in shares upon any trust. Except for
recognising the rights given in relation to General
Meetings by
appointments made by Appointed Proxies pursuant
to Article 158, the Company is
entitled to treat any person entered in the Proxy
Register as an Appointed Proxy as
the only person (other than the ADR
Depositary) who has any interest in the shares in respect of which the Appointed Proxy has been appointed.

 

163                           Validity of the appointment of Appointed Proxies

 

163.1                 If any question arises as to
whether any particular person or persons has or have been validly appointed to
vote (or exercise any other
right) in respect of any shares (for
example because the total number of shares in
respect of which appointments are recorded in the Proxy Register is more than the number of Depositary Shares) this question will, if
it arises at or in relation to a General
Meeting be determined by the chairman of the General Meeting. His decision (which can
include declining to recognise a particular appointment or appointments as
valid) will, if made in good faith, be final and binding on all persons
interested.

 

163.2                 If a question of the type
described in Article 163.1 arises in any circumstances other than at or in
relation to a General Meeting, the
question will be determined by the directors. Their decision (which can include
declining to recognise a particular appointment or appointments as valid) will
also, if made in good faith, be final and binding on all persons interested.

 

Approved Depositaries

 

164                           Appointments

 

164.1                 Subject to
these Articles and the
relevant Act or Acts, an Approved
Depositary can appoint as its proxy
or proxies in relation to any Ordinary
Shares which it holds, anyone it thinks fit and can decide how and
on what terms to appoint them. Each appointment must state the number of Ordinary Shares it relates to and the total
number of Ordinary Shares in
respect of which appointments exist at any time must not be more than the total
number of Depositary Shares which
are registered in the name of the Approved
Depositary or its nominee at that time.

 

164.2                 The Approved Depositary must keep a register
(the Nominated Proxy Register) of
each person it has appointed as a Nominated
Proxy under Article 164.1 and the Appointed
Number. The directors will decide what information about each Nominated Proxy is to be recorded in the Nominated Proxy Register. Any person
authorised by the Company may
inspect the Nominated Proxy Register during
usual business hours and the Approved

 

75

 

Depositary will give such
person any information which he requests as to the contents of the Nominated Proxy Register.

 

165                           Rights of Nominated Proxies

 

165.1                 A Nominated Proxy may only attend a General Meeting if he provides the Company with evidence in writing of his appointment as such.
This must be in a form agreed between the directors and the Approved Depositary.

 

165.2                 Subject to
these Articles and the relevant
Act or Acts, and so long as the Approved
Depositary or a nominee of the Approved
Depositary holds at least his Appointed
Number of Ordinary Shares,
a Nominated Proxy is entitled to
attend a General Meeting which
holders of Ordinary Shares are
entitled to attend, and he is entitled to the same rights, and subject to the
same obligations, in relation to his Appointed
Number of Depositary Shares as
if he had been validly appointed in accordance with Articles 69 to 73 by the
registered holder of these shares as its proxy
in relation to those shares.

 

165.3                 A Nominated Proxy may appoint another person as his proxy for his Appointed Number of Depositary
Shares, as long as the appointment is made and deposited in
accordance with Articles 69 to 73, and these Articles
apply to that appointment and to the person so appointed as though
those Depositary Shares were
registered in the name of the Nominated Proxy
and the appointment was made by him in that capacity. The directors
may require such evidence as they think appropriate to decide that such
appointment is effective.

 

165.4                 For the purposes of
determining who is entitled as a Nominated
Proxy to exercise the
rights conferred by Articles 165.2 and 165.3 and the number of Depositary Shares in respect of which a person
is to be treated as having been appointed as a Nominated Proxy for these purposes, the Approved Depositary can decide that the Nominated Proxies who are so entitled are
the people entered in the Nominated Proxy
Register at a time and on a date (a Record Time) agreed between the Approved Depositary and the Company.

 

165.5                 When a Record Time is decided for a particular
purpose:-

 

·                                          a Nominated Proxy is to be treated as having
been appointed for that purpose for the number of shares appearing against his name in the Nominated Proxy Register as at the Record Time; and

 

·                                          changes to
entries in the Nominated Proxy Register after
the Record Time will be ignored
for this purpose.

 

165.6                 Except for recognising the
rights given in relation to General Meetings by
appointments made by Nominated Proxies pursuant
to Article 165.3, the Company is
entitled to treat any person entered in the Nominated
Proxy Register as a Nominated
Proxy as the only person (other than the Approved Depositary) who has any interest in the Depositary Shares in respect of which the Nominated Proxy has been appointed.

 

165.7                 At a General Meeting the chairman of the General Meeting has the final decision as
to whether any person has the right to vote or exercise
any other right relating to any Depositary
Shares. In any other situation, the directors have the final
decision as to whether any person has the right to exercise any right relating to any Depositary Shares.

 

76

 

Glossary

 

About the
glossary

 

This glossary is to help
readers understand the Company’s
Articles of Association. Words are explained as they are used in the Articles - they might mean different things
in other documents. The glossary is not legally part of the Articles, and it does not affect their
meaning. The definitions are intended to be a general guide - they are not
precise.

 

abrogate If the special rights of a share are abrogated,
they are cancelled or withdrawn.

 

accrue If interest is accruing, it is running or mounting up,
day by day.

 

adjourned In relation to
a shareholders’ meeting, means
that the meeting has come to an end for the time being, to be continued at a
later time or day, at the same or a different place and adjourned and adjourn shall be construed accordingly.

 

agent A person who
has been appointed to act for another person.

 

allot When new shares are allotted,
they are set aside for the person they are intended for. This will normally be
after the person has agreed to pay for a new share,
or has become entitled to a new share
for any other reason. As soon as a share
is allotted, that person gets the
right to have his name put on the register of shareholders.
When he has been registered, the share
has also been issued.

 

allottee A person to
whom a share is allotted (see renunciation).

 

asset Any property of
any description which is of any value to its owner.

 

attorney An attorney is a person who has been
appointed to act for another person in a particular way. The person is
appointed by a formal document, called a power
of attorney.

 

automatically  entitled  to
a  share  by law In
some situations, a person will be entitled to have shares which are registered in somebody else’s name registered
in his own name. Or he can require the shares
to be transferred to another person. When a shareholder
dies, or the sole survivor of joint shareholders
dies, his personal representatives
have this right. If a shareholder is
made bankrupt, his trustee in
bankruptcy has the right.

 

beneficial
interest A person on whose behalf or for whose benefit a trustee holds shares has a beneficial
interest in those shares.

 

brokerage Commission
which is paid to a broker by a company
issuing shares, where the broker’s clients have
applied for shares.

 

call A call to pay money which is due on shares which has not yet been paid. This
happens if the Company  issues  shares
which are partly-paid, where
money remains to be paid to the Company for
the shares. The money which has
not been paid can be “called”
for. If all the money to be paid on a share
has been paid, the share is called
a fully-paid share.

 

capital
redemption reserve A reserve
of funds which a company may have
to set up to ensure that the Company’s
capital base remains the same when shares
are redeemed or bought back. It
is equivalent to the amount by which the Company’s
issued share capital is reduced by the redemption
or purchase.

 

casual
vacancy A vacancy amongst the directors which occurs by reason of the death,
resignation or disqualification of a director, or from the failure of an
elected director to accept his

 

77

 

appointment, or for any
other reason except the retirement of a director in accordance with the Articles.

 

charge See lien and charge.

 

consolidate
When shares are consolidated, they are combined with other
shares. For example, every three
£1 shares might be consolidated into one new £3 share.

 

cumulative
dividends If a dividend which is cumulative cannot be paid in
one year because the company does
not have enough profits to cover the payment, the shareholder has the right to receive the dividend in a future
year, when the company has enough
profits to pay the dividend. Compare this with a non-cumulative dividend.

 

debenture A typical debenture is a type of long-term borrowing
by a company. The loan usually has
to be repaid at a fixed date in the future, and carries a fixed rate of
interest.

 

declare Generally, when
a final dividend is declared, it
becomes due to be paid.

 

dividend
arrears Any dividend
arrears. This includes any dividends on shares with cumulative rights
which could not be paid, but which have been carried forward.

 

documents
of title The documents which show that a person owns
something.

 

electronically
Any document or information sent or supplied by electronic means.

 

executed A document is executed when it is signed, authenticated
or sealed or made valid in some other way.

 

exercise When a power is
exercised, it is put to use.

 

forfeit When a share is forfeited
it is taken away from the shareholder
and becomes the property of the Company
which can do with it as it likes. This process is called “forfeiture”. This can
happen if a call on a partly-paid share is not paid on time.

 

fully-paid  shares When all of the money which is due
to the Company for a share has been paid, a share is called a fully-paid share.

 

good title If a person has
good title to a share, he owns it outright.

 

holding  company A company
which controls another company
(for example by owning a majority of its shares)
is called the holding company of
that other company. The other company is the subsidiary of the holding company.

 

indemnity If a person
gives another person an indemnity,
he promises to make good any losses or damage which the other might suffer. The
person who gives the indemnity is
said to “indemnify” the other
person.

 

in issue See issue.

 

instruments
Formal legal documents.

 

issue When a share
has been issued, everything has
been done to make the shareholder
the owner of the share. In
particular, the shareholder’s name
has been put on the Register of shareholders. Existing shares which have been issued are “in issue”.

 

liabilities
Debts and other obligations.

 

liable
jointly and severally Where more than one person is liable jointly and severally it means that
any one of them may be sued, or they can all be sued together.

 

78

 

lien and
charge Where the Company has a lien and charge over shares, it can take the dividends, and any
other payments relating to the shares
which it has a charge over, or it can sell the shares, to repay the debt and so on.

 

members Are shareholders.

 

nominal
value The nominal  value of the share. The nominal
value of the US$0.113/7 Ordinary Shares is US$0.113/7. This value is shown on the share certificate for a
share, if there is one. When the Company  issues
new shares this can be for a price
which is at a premium to the nominal  value.
When shares are bought and sold on
the stock market this can be for
more, or less, than the nominal  value. The nominal  value
is sometimes also called the “par value”.

 

non-cumulative
dividends If a dividend which is non-cumulative cannot be paid in one year because the Company does not have enough profits
available to cover the payment, the shareholder
does not have the right to receive the dividend in a future year. This is the
opposite to a cumulative dividend.

 

ordinary
resolution A decision reached by a simple majority of votes -
that is by more than 50 per cent. of the votes cast.

 

par value See nominal value.

 

partly-paid  shares If any money remains to be paid on a
share, it is said to be partly-paid. The unpaid money can be “called” for.

 

personal
representatives A person who is entitled to deal with the property
(“the estate”) of a person who has died. If the person who has died left a
valid will, the will appoints “executors” who are personal representatives. If the person died without a will,
the courts will appoint one or more “administrators” to be the personal representatives.

 

poll A poll vote is usually a card vote but to
the extent permitted by the Companies Acts
may be an electronic vote. On a poll
vote, the number of votes which a shareholder
has will depend on the number of shares
which he owns. An Ordinary  Shareholder has one vote for each share he owns. A poll vote is different to a show
of hands vote, where each person who is entitled to vote has just
one vote, however many shares he
owns.

 

power of
attorney A formal document which legally appoints one or more
persons to act on behalf of another person.

 

pre-emption
rights The right of some shareholders
which is given by the Companies Acts
to be offered a proportion of certain classes of newly issued  shares
and other securities before they
are offered to anyone else. This offer must be made on terms which are at least
as favourable as the terms offered to anyone else.

 

premium If the Company  issues
a new share for more than its nominal value (for example because the
market value is more than the nominal value),
the amount above the nominal value
is the premium.

 

proxy A proxy is a person who is appointed by a shareholder to attend a shareholders’  meeting and vote for that shareholder.
A proxy is appointed by using a proxy form. A proxy does not have to be a shareholder. At a shareholders’  meeting a proxy
can exercise the rights of the shareholder that appointed him.

 

proxy form A form which a shareholder uses to appoint a proxy to attend a shareholders’ meeting and vote for him. The
proxy form
must be delivered to the Company
before the meeting to which it relates.

 

79

 

quorum The minimum
number of shareholders or
directors who must be present before a meeting can start. When this number is
reached, the meeting is said to be “quorate”.

 

rank &
ranking When either capital or income is distributed to shareholders, it is paid out according to
the rank (or ranking) of the shares. For example, a share
which ranks before (or ahead of)
another share in sharing in the Company’s income is entitled to have its
dividends paid first, before any dividends are paid on shares which rank behind (or after) it. If there is not enough income to
pay dividends on all shares, the
available income must be used first to pay dividends on shares which rank ahead, and then to shares
which rank behind. The same
applies for repayments of capital. Capital must be paid first to shares which rank ahead in sharing in the Company’s capital, and then to shares which rank
behind. The Company’s  Fixed Rate Shares rank ahead of its Ordinary Shares. Where certain shares  rank
equally with other shares, both
types of shares have the same
rights as each other.

 

recognised
investment exchange An “investment exchange” which has been officially
recognised by the UK authorities. An investment exchange is a place where
investments, such as shares, are
traded. The London Stock Exchange
is a  recognised
investment exchange.

 

redeem and
redemption When a share
is redeemed, it is effectively
bought back by the Company in
return for a sum of money (the “redemption price”) which was fixed before the share was issued.
This process is called redemption.
A share which can be redeemed is called a “redeemable” share.

 

relevant
system This is a term used in the CREST
Regulations for a computer-based system which allows shares without share certificates to be
transferred without using transfer forms. The CREST system for paperless share
dealing is a “relevant
system”.

 

renunciation
Where a share has been allotted, but no one has been entered on
the share register as the holder of the share,
it can be renounced by the allottee to another person. This transfers
the right to be registered as the holder of the share to another person. This
process is called renunciation.

 

requisition
a meeting A formal process which shareholders can use to call a shareholders’ meeting. Generally speaking the shareholders who want to call a meeting
must hold at least 10 per cent of the issued
shares.

 

reserve
fund or reserves A fund which
has been set aside in the accounts of a company.
Profits which are not paid out to shareholders
as dividends, or used up in some other way, are held in a reserve fund by the company. The capital redemption reserve and share premium account are also reserve funds.

 

revoke To withdraw, or
cancel.

 

securities All shares, bonds and other investment instruments issued by a company which entitle the holder to a share in the profits or assets of that company, to receive a cash payment from a company or to subscribe for such a security.

 

share  premium account If a new share is issued
by the Company for more than its nominal value (generally because the
market value is more than the nominal value)
then the amount above the nominal value
is the premium, and the total of
these premiums is held in a reserve fund (which cannot be used to pay
dividends) called the share premium account.

 

show of
hands A shareholder raises his
hand to vote at a shareholders’ meeting
(unless there is a poll). Each
person who is entitled to vote has just one vote, however many shares he holds.

 

80

 

special
notice This term is defined in Companies
Acts. Broadly, if special notice
of a resolution is required by the Companies
Acts, the resolution is not valid unless the Company has been told about the intention
to propose it at least 28 days before the shareholders’
meeting at which it is proposed (although in certain circumstances
the meeting can be on a date less than 28 days from the date of the notice).

 

special
resolution A decision reached by a majority of at least 75 per
cent of votes cast.

 

special
rights These are the rights of a
particular class of shares, as
distinct from rights which apply
to all shares generally. Typical
examples of special rights are
where the shares  rank, their rights to sharing in income
and assets and voting rights.

 

statutory
declaration A formal way of declaring something in writing.
Particular words and formalities must be used - these are laid down by the
Statutory Declarations Act of 1835.

 

stock When shares have been converted into stock the holder’s interest in the Company is expressed by reference to a sum
of money divided into transferable units. For example, the interest of a shareholder with one hundred £1 shares might have been converted into £100
worth of stock transferable in
units of £1 each.

 

stockholder
A holder of stock.

 

subject to Where something
else has priority, or prevails, or must be taken into account. When a statement
is subject to another statement
this means that the first statement must be read in the light of the other
statement, which will prevail if there is any conflict.

 

subordinate
Where a right or interest is subordinated to something else, it ranks behind it.

 

subsidiary This is a term
used by the Companies Act 2006. A company which is controlled by another company (for example because the other Company owns a majority of its shares) is called a subsidiary of that company.

 

subsidiary  undertaking This is a term used by the Companies  Acts.
It is a wider definition than subsidiary. Generally speaking it is a company which is controlled by another company because the other company:

 

·                  has a majority of the votes
in the company either alone, or
acting with others;

 

·                  is a shareholder who can appoint or remove a
majority of the directors; or

 

·                  can exercise dominant influence over the company because of anything in the Company’s Articles, or because of a certain
kind of contract.

 

treasury
shares Where shares which are
held by a company as treasury
shares in line with Sections 724 to 726 of the Companies Act  2006.

 

trustees People who hold
property of any kind for the benefit of one or more other people under a kind
of arrangement which the law treats as a “trust”. The people whose property is
held by the trustees are called
the beneficiary.

 

uncertificated
proxy instruction A properly authenticated instruction sent by means
of a relevant system,
in line with the rules of the relevant system to a person acting on the Company’s behalf, on terms decided by the
directors.

 

unincorporated
associations Associations, partnerships, societies and other
bodies which the law does not treat as a separate legal person to their
members.

 

warrant See the
definition of dividend warrant.

 

81

 

wind up The formal process
to put an end to a company. When a
company is wound up its assets are distributed. The assets
go first to creditors, and then to shareholders.
Shares which rank first in sharing in the Company’s  assets
will receive any funds which are left over before any shares which rank after (or behind) them.

 

82exhibit10_22.htm

Exhibit 10.22

 

SEPARATION AGREEMENT

 

THIS SEPARATION AGREEMENT (“Agreement”) is made and entered into as of this 27th day of May, 2010, by and among CFS BANCORP, INC. (“Company”), an Indiana corporation, CITIZENS FINANCIAL BANK (“Bank”), a federally-chartered stock savings association, and CHARLES V. COLE (“Employee”), a resident of the State of Illinois,

 

W I T N E S S E T H:

 

WHEREAS, the Employee is serving as the Executive Vice President and Chief Financial Officer of the Company and the Bank; and

 

WHEREAS, the Company, the Bank and the Employee desire to enter into this Agreement to memorialize their mutual understanding and agreement with respect to the Employee’s resignation from employment with the Company, the Bank and all subsidiaries and affiliates of the Company and the Bank, the payment of severance to the Employee and certain other matters as provided herein.

 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual agreements and obligations contained herein, the payments contemplated hereby and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Employee hereby agree as follows:

 

Section 1.                      Resignation.  The Employee hereby resigns from his employment as an officer, employee and Executive Vice President and Chief Financial Officer of the Company and the Bank, and from all other positions at, the Company, the Bank and all subsidiaries and affiliates of the Company and the Bank, effective as of 5:00 p.m. (Central Time) on May 27, 2010 (“Effective Time”), thereby ending any employer-employee relationship between the Company, the Bank and all subsidiaries and affiliates of the Company and the Bank, on the one hand, and the Employee, on the other hand.  The Employee’s resignation shall be irrevocable, and the Company and the Bank hereby accept the Employee’s resignation.

 

Section 2.                      Employment Agreement.  The Company, the Bank and the Employee understand that they are parties to an Employment Agreement dated December 23, 2009 (the “Employment Agreement”), which shall continue in full force and effect following the Effective Time as set forth in the Employment Agreement, other than Sections 2, 4 and 5 thereof which provisions shall terminate as of the Effective Time.  The Employee’s resignation contemplated by this Agreement shall be a termination by the Employee of his employment under the Employment Agreement without Good Reason, and the date of this Agreement shall be the Date of Termination under the Employment Agreement.  The Company, the Bank and the Employee hereby waive all requirements for a Notice of Termination and any other notices under the Employment Agreement and agree that the Date of Termination for purposes of the Employment Agreement shall be the Effective Time.  The Employee represents and agrees that neither the Company nor the Bank has ever breached the Employment Agreement, nor does the execution of this Agreement or the transactions, actions and payments contemplated hereby constitute a breach of the Employment Agreement by either the Company or the Bank.

 

Section 3.                      Severance Payment.  Subject to the remaining provisions of this Section, the Company shall pay a severance payment to the Employee in the aggregate amount of Three Hundred Thirty-Six Thousand Four Hundred and Eighty-Eight Dollars ($336,488), without interest (“Severance Payment”), which shall be paid in accordance with this Section.  The payment of the Severance Payment shall be suspended for a six-month period following the Effective Time as required by Section 409A of the Internal Revenue Code of 1986, as amended, because the Employee is a Specified Employee as defined in Treasury Regulation §1.409A-1(h).  The Severance Payment shall be paid in two (2) equal 

 

  

  

  

installments of One Hundred Sixty-Eight Thousand Two Hundred and Forty-Four Dollars ($168,244) each.  The first installment shall be paid to the Employee on the first regular payroll date of the Company in December, 2010 and the second installment shall be paid to the Employee on the second payroll date of the Company in January, 2011, which is on January 28, 2011.  The Company shall deduct all required taxes and other amounts required to be withheld from each of such payments.

 

The Severance Payment payable under this Agreement constitutes full satisfaction and discharge of the Company’s and the Bank’s respective obligations under the Employment Agreement, including, but not limited to, any severance payments; provided, however, that the foregoing shall not affect the Company’s and the Bank’s obligations under Section 25 of the Employment Agreement if the Company or the Bank requests the Employee’s cooperation under such section.  The Employee agrees that the Severance Payment payable under this Agreement and the waiver of the Employee’s non-competition covenants set forth below constitute adequate consideration for his waivers, covenants and agreements set forth in this Agreement, the Release of Claims attached hereto as Exhibit A and the covenants, agreements and provisions of the Employment Agreement that survive the termination of the Employee’s employment and continue in effect following the Effective Time, including, but not limited to, Section 3(d) (confidential information), Section 3(e) (non-solicitation) and Section 6(f) (return of property and confidential information), Section 24 (non-disparagement) and Section 25 (cooperation), which covenants, agreements and provisions the Employee hereby ratifies and confirms and agrees are binding upon and applicable to him in accordance with the terms thereof as set forth in the Employment Agreement.  The Company and the Bank hereby waive compliance by the Employee with Sections 3(b) and 3(c) (non-competition) of the Employment Agreement and agree that such sections shall not be binding upon or enforceable against the Employee, but only so long as Employee has executed and not subsequently revoked the Release of Claims attached hereto as Exhibit A and does not breach any of the covenants, agreements or provisions of this Agreement or of the Employment Agreement that survive the termination of the Employee’s employment with the Company and the Bank.

 

The Severance Payment payable under this Agreement is in lieu of any severance payments or benefits that may otherwise be payable to the Employee under the Employment Agreement, any other agreement or any severance pay policies or practices of the Company or the Bank.  The Employee hereby forever releases, waives and relinquishes any and all payments, benefits, rights, claims and interests in and under, and shall not be entitled to, any payments or benefits under the Employment Agreement, any other agreement and any severance pay policies or practices of the Company or the Bank.

 

Notwithstanding the foregoing provisions of this Section, (a) the Severance Payment shall not be paid to the Employee if the Employee breaches any of the provisions of this Agreement, the Release of Claims attached hereto as Exhibit A or any of the covenants, agreements or provisions of the Employment Agreement that survive the termination of the Employee’s employment and that continue in effect following the Effective Time, and (b) in the event that the Company or the Bank is not obligated to pay the Severance Payment to the Employee because of a breach by the Employee contemplated by (a) above, the Employee shall nevertheless continue to be bound by and subject to this Agreement, the Release of Claims and the covenants, agreements and provisions in the Employment Agreement that survive the termination of his employment.

 

Section 4.                      Salary; Vacation; Expenses; Other.

 

(a)           Salary.  The Employee agrees that (i) the Company and/or the Bank have paid in full to the Employee all salary and all other compensation (other than accrued but unused vacation) to which he is entitled in connection with all of his services as an officer and employee of the Company, the Bank and all subsidiaries and affiliates of the Company and the Bank, whether pursuant to the Employment Agreement or otherwise, through and including the Company’s last payroll date immediately preceding the date of this Agreement, and (ii) he shall not be entitled to any additional salary, compensation or other

 

  

2

  

amounts from the Company, the Bank and/or any subsidiaries or affiliates following the date of this Agreement, other than (A) his normal salary from such last payroll date through the Effective Time, which shall be paid in accordance with the Company’s usual and customary payroll practices (including, but not limited to, withholding for taxes and deductions for certain costs of employee benefits), and (B) the benefits and amounts contemplated by this Agreement.

 

(b)           Vacation.  The Employee agrees that he is entitled to be paid for eight (8) days of accrued but unused vacation relating to all periods of employment ending on or before the Effective Time and hereby waives any right to payment for all other accrued but unused vacation, if any.  The Company shall pay the Employee for such eight (8) days of accrued but unused days of vacation on the first regular payroll date following the Effective Time in accordance with the Company’s usual and customary payroll practices (including, but not limited to, withholding for taxes and deductions for certain costs of employee benefits).

 

(c)           Expenses.  The Employee agrees that he has submitted to the Company and the Bank all expense reports and other requests for expense reimbursement to which he is entitled for all periods ending on or before the Effective Time and that all such reports and requests have related to bona fide and reasonable expenses incurred by the Employee in furtherance of his duties on behalf of the Company or the Bank.  The Company and the Bank have reimbursed the Employee for all of such expense reports and requests for reimbursement, and the Employee shall not be entitled to any additional reimbursement for expenses incurred for or on behalf of the Company or the Bank following the Effective Time.

 

(d)           Other.  The Employee understands and agrees that he is not entitled to any compensation, payments or other amounts from the Company, the Bank or any subsidiary or affiliate of the Company or the Bank except pursuant to this Agreement, the ESOP and the 401(k) Plan.

 

Section 5.                      Employee Benefit Plans.

 

(a)           General.  The Employee’s participation and eligibility to participate in, and all benefits, payments and rights under, any and all employee benefit plans (as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended) and any and all other plans, programs, arrangements and policies sponsored, maintained or offered by the Company and/or the Bank shall terminate and cease as of the Effective Time, except as provided in this subsection.  Such plans, programs, arrangements and policies shall include, but not be limited to, the CFS Bancorp, Inc. 2010 Performance-based Cash Incentive Plan (“2010 Cash Plan”); CFS Bancorp, Inc. 2009 Service Retention Program (“2009 Retention Program”); CFS Bancorp, Inc. 2008 Omnibus Equity Incentive Plan (“2008 Incentive Plan”); CFS Bancorp, Inc. 2003 Stock Option Plan (“2003 Stock Option Plan”); CFS Bancorp, Inc. Employee Stock Ownership Plan (“ESOP”); Citizens Financial Bank 401(k) Retirement Plan (“401(k) Plan”); the Bank’s group health, dental, vision, life and disability insurance plans or policies; and all other retirement, profit sharing, deferred compensation, retention, incentive compensation, bonus, health, medical, hospitalization, dental, vision, life, accidental death, disability and similar plans, programs, arrangements and policies sponsored, maintained or offered by the Company and/or the Bank; provided, however, that (i) all benefits of the Employee that are fully vested under the ESOP and the 401(k) Plan shall be paid to the Employee in accordance with the terms of such plans, (ii) the Employee shall be entitled to exercise the outstanding stock options granted to him under 2003 Stock Option Plan in accordance with the terms of such plan, and (iii) notwithstanding that the Employee has terminated his employment under the Employment Agreement without Good Reason, the Company and the Bank hereby agree, subject to the next two paragraphs of this Subsection 5(a), that (A) the Employee (and his spouse or legal dependents) shall be eligible for continued participation in all group health, dental and vision insurance plans of the Company or the Bank and in which the Employee (and his spouse or legal dependents) participated immediately prior to the Effective Time, and (B) the Employee (and his spouse and legal dependents) shall not be eligible for continued participation in any group life and disability

 

  

3

  

insurance plans or policies of the Company or the Bank in which the Employee participated immediately prior to the Effective Time, but instead only the Employee shall be permitted to convert his coverage existing at the Effective Time to individual life and disability policies.

 

With respect to the continuation coverage available to the Employee (and his spouse or legal dependents) under all group health, dental and vision insurance plans of the Company or the Bank, (I) such coverage shall be in accordance with the requirements of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), (II) in order to receive coverage, the Employee shall make a proper and timely COBRA election pursuant to the terms of such plans, and (III) the Company or the Bank shall pay the cost for only the employee (and not for his spouse or any legal dependents) for the continuation coverage under such plans elected by the Employee pursuant to COBRA for a period of time ending on the earlier of June 23, 2011 or the date on which the Employee becomes eligible to participate in a health, dental or vision insurance plan of another employer, consultant or party (provided that the Employee is entitled to health, dental and vision benefits from such other employer, consultant or party that are substantially similar to those provided under the applicable health, dental and vision plans of the Company or the Bank in which the Employee participated immediately prior to, and at the same or lesser cost to the Employee as under such plans of the Company or the Bank at, the Effective Time).  As of the date of this Agreement, the total premium for employee only coverage under the health, dental and vision plans of the Company is $491.97, and such amount is subject to adjustment as determined under the plans.

 

With respect to any life or disability coverage that the Employee converts to individual policies, the Company or the Bank shall pay for only the Employee’s premiums (and not any premiums for his spouse or legal dependents) under such policies for a period of time ending on the earlier of June 23, 2011 or the date on which the Employee becomes eligible to participate in a life or disability insurance plan or policy of another employer, consultant or party (provided that the Employee is entitled to life or disability benefits from such other employer, consultant or party that are substantially similar to those provided under the applicable life and disability plans or policies of the Company or the Bank in which the Employee participated immediately prior to, and at the same or lesser cost to the Employee as under such plans or policies of the Company or the Bank at, the Effective Time).

 

(b)           Outstanding Cash Bonus, Stock Option, Restricted Stock and Other Award Opportunities.  All award opportunities granted to the Employee relating to cash bonuses, stock options, restricted stock and other cash, stock or equity-based awards which have not vested or been earned, or have not become exercisable, on or prior to the Effective Time under the 2010 Cash Plan, 2009 Retention Plan, the 2008 Incentive Plan and all other plans, programs, arrangements or policies of the Company or the Bank are hereby terminated and forfeited as of the Effective Time, and the Employee hereby forever releases, waives and relinquishes any and all rights, claims and interests in and to such awards.  All stock options granted to the Employee under the 2003 Stock Option Plan that have not been exercised on or prior to the Effective Time shall terminate thirty (30) days following the Effective Time.  All stock option, restricted stock and other award agreements between the Company and the Employee under all plans, programs, arrangements or policies of the Company or the Bank are hereby terminated as of the Effective Time, other than the stock option agreements relating to unexercised stock options under the 2003 Stock Option Plan, which shall remain in effect only until the stock options covered thereby shall have terminated as provided above or been exercised.

 

The Employee further understands and agrees that he has not accrued and is not entitled to any benefits or payments (and has never received, and is not entitled to receive, any award opportunities relating to cash bonuses, stock options, restricted stock or other cash, stock or equity-based awards or other awards or amounts) under the Company’s defined benefit pension plan that was frozen effective March 1, 2003; CFS Bancorp, Inc. 2005 Supplemental ESOP Benefit Plan; Citizens Financial Services, FSB Deferred Compensation Plan for Key Employees; Amended and Restated Supplemental ESOP

 

  

4

  

Benefit Plan of CFS Bancorp, Inc. and Citizens Financial Services, FSB; CFS Bancorp, Inc. Amended and Restated 1998 Stock Option Plan; or CFS Bancorp, Inc. 1998 Recognition and Retention Plan.

 

(c)           Retirement Status.  The Employee has not satisfied the requirements for retirement or early retirement under any of the plans, programs, arrangements or policies referenced in Section 5(a) above.

 

(d)           Release.  The continuation coverage pursuant to COBRA under the Bank’s group health, dental and vision plans and the conversion election available under the Bank’s group life and disability plans or policies specified in Section 5(a) are in lieu of any benefits that may otherwise be provided to the Employee under the Employment Agreement, any other agreement or any plan, policy or practice of the Company or the Bank.  The Employee hereby forever releases, waives and relinquishes any and all benefits, payments, rights, claims and interests in and under all plans, programs, arrangements and policies sponsored, maintained or offered by the Company, the Bank and all subsidiaries and affiliates of the Company and the Bank, other than as specified in Section 5(a).

 

Section 6.                      Certain Other Matters.

 

(a)           Compliance with Law.  The Employee understands and agrees that he has ongoing responsibilities under and shall comply with the federal securities laws and other applicable laws and legal requirements, including but not limited to Section 16 of the Securities Exchange Act of 1934 and the rules and regulations thereunder.

 

(b)           Club Memberships.  All memberships (including, but not limited to, memberships in any country clubs or health clubs) that are in the name of the Company or the Bank shall be retained by the Company or the Bank and shall not be used by the Employee subsequent to the Effective Time.  The Company’s or the Bank’s obligation to pay any dues or other amounts with respect to such corporate memberships shall cease as of the Effective Time.  Any memberships that are personal to and in the name of the Employee may continue to be held as private memberships in the Employee’s name and at his sole expense.

 

(c)           No Admission.  This Agreement does not constitute an admission or evidence of any (i) violation by the Company, the Bank or the Employee of any statute, law, rule or regulation, or (ii) liability or wrongdoing on the part of the Company, the Bank or the Employee.

 

(d)           No Assignment.  The Employee represents and agrees that he has not made and shall not make any assignment or other transfer of any interest in any claim, right, demand or action which he had, has or may have against the Company, the Bank or any of their subsidiaries or affiliates or against any of their respective directors, officers, employees, managers, fiduciaries, administrators, representatives or agents.

 

(e)           Unemployment Compensation Claim.  In the event that the Employee files or otherwise makes a claim for unemployment compensation resulting from his resignation of employment contemplated by this Agreement, neither the Company nor the Bank will contest such claim.

 

Section 7.                      Miscellaneous.

 

(a)           Binding Effect; Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns, executors, representatives and heirs; provided, however, that none of the parties may assign this Agreement, or their respective rights and obligations hereunder, without the prior written consent of each of the other parties, except that the Company and the Bank may, without the prior consent of the Employee, each assign this Agreement to

 

  

5

  

any subsidiary, affiliate or successor of the Company or the Bank (whether in connection with any merger, consolidation, share exchange, combination, change in control, sale of stock, assets or business or other similar transaction or otherwise).  In the event of the Employee’s death, any unpaid balance of the Severance Payment shall be paid to the Employee’s spouse (or, if his spouse does not survive him, to the Employee’s estate) in accordance with the same payment schedule specified in this Agreement.

 

(b)           Waiver; Amendment.  Any party hereto may, by a writing signed by the waiving party, waive the performance by another party of any of the covenants or agreements to be performed by such other party under this Agreement.  The waiver by any party hereto of a breach of or noncompliance with any provision of this Agreement shall not operate or be construed as a continuing waiver or a waiver of any other or subsequent breach or noncompliance hereunder.  The failure or delay of any party at any time to insist upon the strict performance of any provision of this Agreement or to enforce its rights or remedies under this Agreement shall not be construed as a waiver or relinquishment of the right to insist upon strict performance of such provision, or to pursue any of its rights or remedies for any breach hereof, at a future time.

 

Except with respect to an assignment by the Company or the Bank contemplated by Section 7(a), this Agreement may be amended, modified or supplemented only by a written agreement executed by all of the parties hereto.

 

(c)           Headings.  The headings in this Agreement have been inserted solely for ease of reference and shall not be considered in the interpretation, construction, or enforcement of this Agreement.

 

(d)           Severability.  All provisions of this Agreement are severable from one another.  In case any one or more of the provisions (or any portion thereof) contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, but this Agreement shall be construed as if such invalid, illegal or unenforceable provision or provisions (or portion thereof) had never been contained herein.

 

(e)           Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute one and the same agreement.

 

(f)           Governing Law; Jurisdiction; Venue; Waiver of Jury Trial.  This Agreement shall be governed by and construed in accordance with the laws of the State of Indiana, without reference to any choice of law provisions, principles or rules thereof (whether of the State of Indiana or any other jurisdiction) that would cause the application of any laws of any jurisdiction other than the State of Indiana.  The parties hereto hereby agree that all demands, claims, actions, causes of action, suits, proceedings and litigation between or among the parties relating to this Agreement, shall be filed, tried and litigated only in a federal or state court located in the State of Indiana.  In connection with the foregoing, the parties hereto irrevocably consent to the jurisdiction and venue of such court and expressly waive any claims or defenses of lack of jurisdiction of or proper venue by such court.  THE COMPANY, THE BANK AND THE EMPLOYEE HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TO THE MAXIMUM EXTENT PERMITTED BY LAW ANY AND ALL RIGHT TO A TRIAL BY JURY IN ANY DEMAND, CLAIM, ACTION, SUIT, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR OTHERWISE RELATING TO THIS AGREEMENT.

 

(g)           Entire Agreement.  This Agreement (including the Release of Claims attached hereto), the Employment Agreement, the ESOP, the 401(k) Plan and the 2003 Stock Option Plan constitute the entire understanding and agreement between and among the parties hereto relating to the subject matter hereof and thereof and supersede all other understandings, commitments, representations, negotiations,

 

  

6

  

 contracts, agreements, plans, programs, arrangements or policies, whether oral or written, between or among the parties hereto relating to the matters contemplated hereby or thereby.  In the event of any conflict between this Agreement and the Employment Agreement, the provisions of this Agreement shall control.  The Non-Solicitation & Confidentiality Agreement dated October 16, 2003 between the Bank and the Employee is hereby terminated.

 

(h)           Construction.  This Agreement shall be deemed to have been drafted by both parties hereto.  This Agreement shall be construed in accordance with the fair meaning of its provisions and its language shall not be strictly construed against, nor shall ambiguities be resolved against, any party.

 

(i)           Taxes.  All federal, state, local and other taxes (including, but not limited to, interest, fines and penalties) resulting from, imposed upon by virtue of or relating to the transactions or the payments or benefits to the Employee contemplated by this Agreement or the Employment Agreement shall be paid by the Employee, other than payment by the Company of its portion of any FICA or other employment taxes relating to the Severance Payment.

 

(j)           Review and Consultation.  The Employee hereby acknowledges and agrees that he (i) has read this Agreement in its entirety prior to executing it, (ii) understands the provisions and effects of this Agreement, (iii) has consulted with such of his own attorneys, accountants and financial and other advisors as he has deemed appropriate in connection with his execution of this Agreement, and (iv) has executed this Agreement voluntarily.  THE EMPLOYEE HEREBY UNDERSTANDS, ACKNOWLEDGES AND AGREES THAT HE HAS NOT RECEIVED ANY ADVICE, COUNSEL OR RECOMMENDATION WITH RESPECT TO THIS AGREEMENT FROM THE COMPANY, THE BANK, ANY DIRECTOR, OFFICER OR EMPLOYEE OF THE COMPANY OR THE BANK, OR ANY ATTORNEY, ACCOUNTANT OR ADVISOR FOR THE COMPANY OR THE BANK.

 

(k)           Notices.  All notices and other communications under this Agreement shall be in writing and given by hand delivery, certified mail, overnight delivery or facsimile transmission and shall be deemed to have been duly given (i) upon delivery by hand (in the Company’s and the Bank’s case, to its Chief Executive Officer or its Chief Operating Officer); (ii) on the day of receipt if the notice or communication is sent by certified United States Mail, return receipt requested; (iii) on the next business day after deposit with a nationally recognized overnight delivery service; or (iv) on the date indicated on the fax confirmation page of the sender.  All notices and other communications shall be addressed as follows: if to the Company or the Bank, c/o its Chief Executive Officer or Chief Operating Officer at its corporate headquarters; and if to the Employee, to his last known address reflected on the records of the Company or the Bank; or to such other address as any party hereto may have furnished to the others in writing in accordance herewith.

 

(l)           Capitalized Terms.  All capitalized terms not otherwise defined in this Agreement shall have the same meanings ascribed to them in the Employment Agreement.

 

(m)         Recitals.  The recitals and “Whereas” clauses contained on page 1 of this Agreement are expressly incorporated into and made a part of this Agreement.

 

(n)          Electronic Signatures.  This Agreement may be executed and delivered by facsimile or electronic transmission.  Any facsimile or electronic signature shall be considered as an original signature and the document transmitted shall be considered to have the same binding effect as an original signature on an original document.

 

[Signature Page Follows This Page]

 

  

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IN WITNESS WHEREOF, the Company, the Bank and the Employee have made, entered into, executed and delivered this Agreement as of the day and year first above written.

 

 

                                                                                                                                                                  /s/ Charles V. Cole                     

                        Charles V. Cole

                                                      

 

                        CFS BANCORP, INC.

 

 

 

                        By: /s/ Daryl D. Pomranke                                                                 

                              Daryl D. Pomranke, President

                                and Chief Operating Officer

 

 

                        CITIZENS FINANCIAL BANK

 

 

 

                        By: /s/ Daryl D. Pomranke                                                                 

                              Daryl D. Pomranke, President

                                and Chief Operating Officer

 

 

 

 

 

 

 

 

 

  

8

  

EXHIBIT A

 

Release of Claims

 

1.           In consideration of the execution by CFS Bancorp, Inc. (the “Company”) and Citizens Financial Bank (the “Bank”) of that certain Employment Agreement (the “Employment Agreement”) dated December 23, 2009 and that certain Separation Agreement (the “Agreement”) dated May 27, 2010, both by and among the Company, the Bank and the undersigned, Charles V. Cole (the “Employee”), and for other good and valuable consideration, the Employee hereby irrevocably, unconditionally, and forever releases, waives, discharges and covenants not to sue or make any claim against the Company, the Bank, each of their subsidiaries and affiliates, the Company’s and the Bank’s respective predecessors and successors, their respective former, present and/or future shareholders, members, owners, directors, officers, employees, managers, fiduciaries, administrators, insurers, attorneys, representatives and agents, and all persons acting by, through, under or in concert with any of them (collectively, the “Released Parties”) for or from any and all complaints, claims, demands, liabilities, obligations, actions, rights of actions and proceedings of any nature whatsoever (including, but not limited to, claims for damages, attorneys fees, interest and costs), whether administrative or judicial, known or unknown, suspected or unsuspected, matured or unmatured, or otherwise, that exist as of (or existed prior to) the date that the Employee signs this Release.  Without limiting the generality of the foregoing, the Employee understands and agrees that this Release includes and constitutes a complete waiver and release by the Employee in all capacities (including, but not limited to, as a shareholder, officer, employee, participant, individual or otherwise), and by his heirs, executors, administrators, representatives, and assigns, of any and all possible claims against each of the Released Parties based upon, arising out of or in any manner related to any salary, commission, bonuses (discretionary or otherwise) and other compensation from the Company, the Bank or any of their subsidiaries or affiliates; any plan, policy, program or promise of compensation from any of the Released Parties; any award of stock options, restricted stock or other stock-based or incentive compensation from the Company or the Bank; the Employee’s employment with or termination of employment by the Company and/or the Bank; wrongful termination or discharge; breach of contract; breach of good faith or fair dealing; infliction of emotional distress; and discrimination based on age, race, sex, religion, national origin, disability, veterans status, sexual orientation, gender identity, or any other claim of employment discrimination, including, but not limited to, claims arising under the following laws and amendments thereto, if any:  the Civil Rights Act of 1866 (42 U.S.C. § 1981), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act of 1967, the Federal Rehabilitation Act of 1973, the Family and Medical Leave Act, the Fair Labor Standards Act, the Older Workers Benefit Protection Act, the Employee Retirement Income Security Act of 1974; any other federal or state employment law; any federal or state wage and hour laws, and all other similar federal, state or local laws, statutes, rules or regulations; and, in addition, all other tort or contract claims and other theories of recovery, to the extent permitted by law.  Notwithstanding the foregoing, this Release does not affect, release or waive any of the Employee’s claims (a) under the Agreement, (b) under Section 25 under the Employment Agreement if the Company or the Bank requests the Employee’s cooperation under such section, or (c) for vested benefits or payments under the ESOP and the 401(k) Plan (as defined in the Agreement).

 

2.           This Release shall be construed as broadly and comprehensively as applicable law permits; provided, however, that this Release shall not be construed as releasing or waiving any right that, as a matter of law, cannot be released or waived, including but not limited to any right to file a charge or participate in an investigation or proceeding conducted by the U.S. Equal Employment Opportunity Commission.  Notwithstanding the foregoing, the Employee waives any right to recover monetary remedies in his own behalf in any such investigation or proceeding.

 

  

A-1

  

 

3.           The Employee acknowledges that the Company and the Bank have advised him to consult with an attorney of the Employee’s own choice prior to signing this Release and that he has had ample time and adequate opportunity to discuss thoroughly all aspects of this Release with his attorney.

 

4.           In the event the Employee is forty (40) years of age or older, the Employee acknowledges that the Company and the Bank have advised him that he has a period of twenty-one (21) days to review and consider this Release.  The Employee understands that he may use as much or all of the twenty-one (21) day period as the Employee desires prior to signing this Release.  Upon execution of this Release, the Employee waives any remaining portion of the twenty-one (21) day review period.

 

5.           In the event the Employee is forty (40) years of age or older, the Employee acknowledges that the Company and the Bank have advised him that he may revoke this Release within seven (7) days after signing it.  If the Employee signs this Release and does not revoke it after such seven (7) day period has expired, he may not thereafter revoke this Release.

 

ANY SUCH REVOCATION MUST BE IN WRITING AND RECEIVED BY THE COMPANY AND THE BANK AT THE FOLLOWING ADDRESS NOT LATER THAN 5:00 P.M. (MUNSTER, INDIANA TIME) ON THE SEVENTH (7TH) DAY FOLLOWING THE DATE OF EXECUTION OF THIS RELEASE:

 

CFS Bancorp, Inc. and Citizens Financial Bank

Attn:  Daryl D. Pomranke, President and Chief Operating Officer

707 Ridge Road

Munster, Indiana 46321

 

6.           All provisions of this Release are severable from one another.  In case any one or more of the provisions (or any portion thereof) contained in this Release shall, for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Release, but this Release shall be construed as if such invalid, illegal, or unenforceable provision or provisions (or portion thereof) had never been contained herein.  This Release shall be governed by and construed in accordance with the laws of the State of Indiana, without reference to any choice of law provisions, principles, or rules thereof (whether of the State of Indiana or any other jurisdiction) that would cause the application of any laws of any jurisdiction other than the State of Indiana.  This Release may not be assigned, terminated or amended without the prior written consent of the Company and the Bank (by their respective Chief Executive Officers or Chief Operating Officers).  This Release may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute one and the same document.

 

IN WITNESS WHEREOF, the undersigned has executed this Release of Claims as of the date indicated below.

 

 

                                           /s/ Charles V. Cole                                                                 

                        Charles V. Cole

 

                                                                                                               6/2/10                        

                                                                                                                       (Date)

 

  

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