Document:

Exhibit 4.14

 

RULES OF THE 

INDIVIOR UK

SAVINGS RELATED SHARE OPTION PLAN

 

SLAUGHTER AND MAY 

One Bunhill Row 
 London  EC1Y 8YY

 

 

Table of Contents

 

	
Contents
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
Definitions and   interpretation
    	
1
    
	
2
    	
 
    	
Invitations to apply   for Options
    	
3
    
	
3
    	
 
    	
Scaling down
    	
5
    
	
4
    	
 
    	
Grant of Options
    	
5
    
	
5
    	
 
    	
Plan limits
    	
6
    
	
6
    	
 
    	
Rights of Exercise and   Lapse of Options
    	
7
    
	
7
    	
 
    	
Exercise of Options
    	
8
    
	
8
    	
 
    	
Takeovers and   Liquidation
    	
9
    
	
9
    	
 
    	
Exchange of Options on   a Takeover
    	
10
    
	
10
    	
 
    	
Variation of Share   Capital
    	
11
    
	
11
    	
 
    	
Administration
    	
11
    
	
12
    	
 
    	
Amendments
    	
12
    
	
13
    	
 
    	
General
    	
13
    

 

 

1                                   Definitions and interpretation

 

1.1                            In this Plan, the following words and expressions shall, where the context so permits, have the following meanings:

 

“Act” means the Income Tax (Earnings and Pensions) Act 2003;

 

“Associated Company” has the meaning given by paragraph 47 (1) of Schedule 3 to the Act except in relation to Rule 6.6 where it will have the meaning given by paragraph  35 (4) of Schedule 3;

 

“Auditors” means the auditors for the time being of the Company;

 

“Bonus” means any sum payable by way of terminal bonus under a Savings Contract being the additional payment made by the nominated Savings Authority when repaying contributions under a Savings Contract and:

 

(a)                             “Three Year Bonus” shall mean the Bonus payable under a Three Year Savings Contract; and

 

(b)                                 “Five Year Bonus” shall mean the Bonus payable on the first date on which a Bonus is payable under a Five Year Savings Contract.

 

“Bonus Date” means the earliest date on which the relevant Bonus is payable; 

 

“Company” means Indivior PLC registered in England and Wales under no.9237894,  which for the purposes of the Rules may act through the Directors, or any employee or employees of it authorised to act;

 

“Control” has the meaning given by section 995 of the Income Tax Act 2007; “Date of Grant” means the date on which an Option is granted;

 

“Dealing Day” means a day on which the London Stock Exchange is open for business;

 

“Directors” means the board of directors from time to time of the Company or a duly authorised committee of it;

 

“Eligible Employee” means:

 

(a)                             any person who is an employee or Full-Time Director of any Participating Company who:

 

(i)                                  has such qualifying period (if any) of continuous service (being a period commencing not earlier than five years prior to the Date of Grant) as the Directors may in their absolute discretion and from time to time determine; and

 

(ii)                               receives earnings in respect of his office or employment which are general earnings to which section 15 of the Act applies (or would apply if there were any);

 

(b)                                 any other director or employee of any Participating Company whom the Directors may in their absolute discretion and from time to time select.

 

“Equity Share Capital” has the meaning given to it by Section 548 of the Companies  Act 2006;

 

 

“Exercise Price” means the price at which each Share the subject of an Option may be acquired on the exercise of that Option, being (subject to Rule 10) not less than:

 

(a)                              eighty per cent (80%) of the Market Value of a Share (or such other percentage as shall from time to time be specified in paragraph 28 (1)(b) of Schedule 3); or

 

(b)                                  if greater, and Shares are to be acquired by subscription, the nominal value of a Share;

 

“Full-Time Director” means an employee who is a director of any Participating Company and normally devotes not less than 25 hours per week (excluding meal breaks and normal holiday entitlement or such other number of hours as may be required by HMRC for the purposes of paragraph 6 of Schedule 3) to his duties;

 

“Grant Period” means the period during which the Directors may invite Eligible  Employees to apply for Options as specified in Rule 2.1; 

 

“Group” means the Company and all its Subsidiaries; 

 

“Group Company” means any company in the Group; 

 

“HMRC” means H. M. Revenue & Customs;

 

“London Stock Exchange” means The London Stock Exchange plc; “Market Value” means the lowest of the following:

 

(a)                                    the market value of a Share on the date on which the invitation is made in accordance with Rule 2 (the “relevant date”);

 

(b)                                    the average of the market values of a Share for the three Dealing Days immediately preceding the relevant date;

 

(c)                                     the average of the market values of a Share for the five Dealing Days immediately preceding the relevant date,

 

with the market value of a Share being determined in accordance with Part VIII of the Taxation of Chargeable Gains Act 1992 and for these purposes the Market Value of a Share subject to a restriction is to be determined as if it was not subject to a restriction;

 

“Maximum Contribution” means the maximum aggregate Monthly Contribution which an Optionholder may make under all Savings Contracts linked to options granted to him under the Plan or any other savings-related share option plan approved by HMRC under Part 8 of Schedule 3, being the lesser of:

 

(a)                              £500 per month or, if higher, the maximum amount specified in paragraph 25(3) of Schedule 3 from time to time; and

 

(b)                              such other maximum Monthly Contribution as may be determined from time to time by the Directors which need not be the same in relation to all Eligible Employees provided that it does not infringe the requirements of paragraph 7 of Schedule 3 (participation on similar terms);

 

“Monthly Contribution” means the monthly contribution agreed to be paid by an  Optionholder under the relevant Savings Contract;

 

“Option” means a right granted or to be granted to acquire Shares pursuant to the  Rules;

 

2

 

“Optionholder” means any person (including where the context permits the personal representatives of such a person) who holds an Option;

 

“Participating Company” means any Group Company which the Company has determined shall be a participating company for the purposes of the Plan;

 

“Plan” means this plan, being the Indivior UK Savings Related Share Option Plan constituted by the Rules as from time to time amended;

 

“Rules” means these rules together with any amendment effected in accordance with  Rule 12;

 

“Savings Authority” means the building society or bank recognised by the Directors from time to time for the purpose of receiving Monthly Contributions under Savings Contracts;

 

“Savings Contract” means a savings contract under a certified SAYE savings arrangement (within the meaning of paragraph 48(1) of Schedule 3 and “Three Year Savings Contract” and “Five Year Savings Contract” shall be construed accordingly;

 

“Schedule 3” means Schedule 3 to the Act;

 

“Share” means a fully paid ordinary share in the capital of the Company which satisfies the requirements of paragraphs 18 to 22 of Schedule 3 at both the Date of Grant and date of exercise of an Option;

 

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

 

“UK Listing Authority” The Financial Services Authority in its capacity as the competent authority for the purposes of the Financial Services and Markets Act 2000.

 

1.2                            References to any statutory provision are to that provision as amended or re-enacted from time to time (and any regulations made under it), and, unless the context otherwise requires, words in the singular shall include the plural and vice versa and words importing the masculine shall include the feminine and vice versa.

 

1.3                            The purpose of the Plan is to provide in accordance with Schedule 3 benefits to Eligible Employees in the form of share options.  The Plan may not provide benefits to employees or directors other than in accordance with Schedule 3.

 

2                                      Invitations to apply for Options

 

2.1                            The Directors may, in their absolute discretion, decide whether or not to operate the Plan. If they do so decide, they will invite all Eligible Employees to apply for the grant of Options at any time during the period of 30 days (or 42 days in the event that applications are scaled down under Rule 3) after any of the following:

 

2.1.1                  the announcement by the Company of its results for any period or the issue by the Company of any prospectus, listing particulars or other document containing equivalent information relating to Shares; or

 

2.1.2                  a day on which an announcement is made of a new prospectus for certified SAYE savings arrangements (within the meaning of section 703(1) of the Income Tax (Trading and Other Income) Act 2005) for the purposes of Schedule 3; or

 

3

 

2.1.3                  a day on which an announcement is made of amendments to be made to the Act (so far as those changes affect savings — related share option plans approved by HMRC) or a day on which any such amendments come into force; or

 

2.1.4                  any general meeting of the Company’s shareholders; or

 

2.1.5                  any day on which they resolve that exceptional circumstances exist which justify the grant of Options.

 

2.2                            Such invitations shall be made in writing to all Eligible Employees and shall include details of the following matters which shall be determined by the Directors:

 

2.2.1                  the Exercise Price or the means by which it will be notified to Eligible Employees;

 

2.2.2                  the latest date by which applications must be received, being neither earlier than 14 days nor later than 28 days after the date of the invitations;

 

2.2.3                  the Maximum Contribution; and

 

2.2.4                  whether the applicable Savings Contract(s) being offered are: 

 

(i)                                     a Three Year Savings Contract; or

 

(ii)                                  a Five Year Savings Contract; or

 

(iii)                               either a Three Year Savings Contract or a Five Year Savings Contract, as the applicant shall select; or

 

(iv)                              a combination of a Three Year Savings Contract and a Five Year Saving Contract (subject always to the Maximum Contribution).

 

2.3                            Each invitation shall be accompanied by:

 

2.3.1                  a proposal form for a Savings Contract; and

 

2.3.2                  an application form.

 

2.4                            An application form shall be in such form as the Directors may from time to time prescribe save that it must provide for the applicant to state:

 

2.4.1                  the Monthly Contribution (being a multiple of £1 and not less than £10) which he wishes to make under the related Savings Contract; and

 

2.4.2                  that his proposed Monthly Contribution (when taken together with any Monthly Contribution he makes under any other Savings Contract linked to an option granted to him under the Plan or any other savings-related share option plan which satisfies the requirements of Schedule 3) will not exceed the Maximum Contribution; and

 

2.4.3                  if the Directors have determined that an applicant may select either a Three Year Savings Contract and/or a Five year Savings Contract, his selection in that respect.

 

2.5                            Each application shall provide that, in the event of scaling down in accordance with Rule 3, the Directors are authorised by the applicant to modify his application to reflect such scaling down.

 

4

 

2.6                            Subject to Rule 2.7 and Rule 3, each application shall be deemed to be for an Option over such number of whole Shares as can be acquired at the Exercise Price with the expected repayment under the related Savings Contract at the appropriate Bonus Date.

 

2.7                            If an application for a Savings Contract specifies a Monthly Contribution which, when added to any other Monthly Contributions already being made or proposed to be made by the Eligible Employee, exceeds the Maximum Contribution, that application may be modified by the Company down to the maximum possible amount.

 

3                                      Scaling down

 

3.1                            To the extent that valid applications are received in excess of any maximum number of Shares which may be determined by the Directors or the limit in Rule 5, the Directors shall scale down applications in the same manner in order to eliminate the excess by:

 

3.1.1                  excluding the Bonuses under the relevant Savings Contracts; and/or

 

3.1.2                  reducing pro-rata the proposed Monthly Contributions in excess of £10; and/or

 

3.1.3                  each application for a Savings Contract with a Five Year Bonus will be deemed to be an application for a Savings Contract with a Three Year Bonus; and/or

 

3.1.4                  so far as necessary, selecting by lot.

 

3.2                            Where applications are scaled down in accordance with Rule 3.1 all relevant applications shall be deemed to have been amended or withdrawn, as the case may be.

 

3.3                            If the number of Shares is insufficient to enable an Option based on a £10 per month contribution to be granted to each Eligible Employee who has made a valid application, the Company may, as an alternative to selecting by lot, determine in its absolute discretion that no Options will be granted.

 

4                                      Grant of Options

 

4.1                            No Option shall be granted after whichever is the earlier of:

 

4.1.1                  30 days (or 42 days, or such longer period as may be agreed with HMRC, in the event that applications are scaled down under Rule 3) after the day(s) by reference to which the Exercise Price was fixed; and

 

4.1.2                  the last day of the applicable Grant Period.

 

4.2                            No Option shall be granted to a person unless at the Date of Grant he is an Eligible Employee. No payment will be required for the grant of an Option.

 

4.3                            As soon as is practicable after having granted an Option to an Eligible Employee the Company shall issue to him, or procure the issue to him of, an option certificate.  The option certificate shall be in such form determined by the Directors from time to time and shall state:

 

4.3.1                  the Date of Grant of the Option;

 

4.3.2                  the number of Shares over which the Option is granted;

 

4.3.3                  the Exercise Price payable for each Share subject to the Option; and

 

4.3.4                  if the Shares are subject to any restriction, details of the restriction.

 

5

 

4.4                            Subject to the right of an Optionholder’s personal representatives to exercise an Option as provided in Rule 6.4, every Option shall be personal to the Eligible Employee to whom it is granted and any purported assignment, transfer, charge, disposal or dealing with the rights or interests of the Optionholder under the Plan shall render the Option void.

 

5                                      Plan limits

 

5.1                            On or before the date upon which invitations are issued on any occasion the Board may determine a limit on the number of Shares over which applications for Options will be accepted on that occasion.

 

5.2                            The nominal amount of Shares over which the Board may grant Options on any date shall be limited so that it does not exceed the limit set out in Rule 5.3.  This limitation only applies to Options which are to be satisfied (directly or indirectly) by the issue of new Shares or the transfer of treasury Shares.

 

5.3                            The limit is 10 per cent of the nominal amount of the Company’s Equity Share Capital on the day preceding the Date of Grant, less the total nominal amount of:

 

5.3.1                  Shares allocated in respect of awards granted within the previous 10 years under any employee share scheme, and

 

5.3.2                  Shares remaining to be allocated in respect of awards granted on the same date or within the previous 10 years under any employee share scheme, and

 

5.3.3                  Shares allocated on the same date or within the previous 10 years under any employee share scheme otherwise than in respect of an award.

 

5.4                            Where an individual is granted two options on terms that the exercise of one will automatically result in a reduction to the extent to which the other may be exercised and vice versa, then for the purposes of this Rule 5 it shall only be necessary to take into account that number of Shares which could be acquired in respect of those options having regards to those terms.

 

5.5                            For the purposes of Rule 5:

 

5.5.1                  “allocate” means the issue of new Shares or the transfer of treasury Shares in satisfaction (directly or indirectly) of a person’s rights under an award;

 

5.5.2                  an “award” means any right to acquire or receive Shares whether conditional or unconditional;

 

5.5.3                  an “employee share scheme” means any scheme for employees of the Group which has been approved by the Company or Reckitt Benckiser plc (registered in England under no. 527217) in general meeting;

 

5.5.4                  “treasury Shares” has the same meaning as in Chapter 6 of the Companies Act 2006;

 

5.5.5                  no account will be taken of Shares acquired by an employee or former employee (or the personal representatives of such a person) where the Shares are acquired for a price equal to their market value at or about the date of acquisition and the cost of those Shares is borne by (or by the estate of) the employee or former employee;

 

6

 

5.5.6                  subject to Rule 5.5.7, no account will be taken of an award if and to the extent to which the Board considers that it will be satisfied by the transfer of existing Shares other than treasury Shares;

 

5.5.7                  any Shares allocated or remaining to be allocated to the trustee of any trust which were used or which are to be used to satisfy awards granted under an employee share scheme must be treated as having been allocated or as remaining to be allocated in respect of those awards unless the Shares were acquired by the trustee pursuant to a rights issue or other opportunity offered to the trustee in respect of Shares other than Shares previously allocated to it; and

 

5.5.8                  where an award was granted in consideration of the release by the holder of an award previously granted to him under an employee share scheme, then the earlier award shall be ignored and the later award shall be deemed to have been granted at the same time as the earlier award.

 

5.6                            No Option shall be granted under this Scheme after 30 November, 2024.

 

6                                      Rights of Exercise and Lapse of Options

 

6.1                            Save as provided in Rules 6.3 (death), 6.4 (good leavers) and 8 (takeovers etc), an Option may be exercised only during the period commencing with the Bonus Date under the related Savings Contract.

 

6.2                            Save as provided in Rules 6.3, 6.4 and 6.5, an Option may only be exercised by an Optionholder while he is a director or employee of a Participating Company.

 

6.3                            An Option may be exercised by the personal representatives of a deceased Optionholder:

 

6.3.1                  during the period of one year following the date of the Optionholder’s death if such death occurs before the Bonus Date; or

 

6.3.2                  during the period of one year following the Bonus Date if the Optionholder’s death occurs on or within the period of six months of the Bonus Date.

 

6.4                            Subject to Rule 6.5, if an Optionholder ceases to hold any office or employment with a Participating Company on account of:

 

6.4.1                  injury, ill-health or disability (evidenced to the satisfaction of the Directors); or

 

6.4.2                  redundancy (within the meaning of the Employment Rights Act 1996); or

 

6.4.3                  retirement; or

 

6.4.4                  the transfer of the undertaking or part-undertaking in which the Optionholder is employed to a person other than a Group Company; or

 

6.4.5                  the Company by which the Optionholder is employed ceasing to be under the Control of the Company; or

 

6.4.6                  provided more than three years have elapsed since the relevant Date of Grant pregnancy, and for the purposes of the Plan, a woman who leaves employment due to pregnancy or confinement will be regarded as having left such employment on the earlier of the date she notifies the relevant Participating Company of her intention not to return or the date on which she ceases to have a statutory or contractual right to return to work,

 

7

 

the Option may be exercised within the period of six months following such cessation.

 

6.5                            An Optionholder shall not be treated as having ceased to hold any office or employment with a Participating Company for the purposes of this Rules 6 if he continues to hold any office or employment with an Associated Company.

 

6.6                            An Option shall lapse on the occurrence of the earliest of the following:

 

6.6.1                    subject to Rule 6.6.2 below, the expiry of the period of six months after the Bonus Date;

 

6.6.2                    where the Optionholder has died, the expiry of the period during which the Option may be exercised in accordance with Rule 6.3;

 

6.6.3                     the expiry of any of the applicable periods specified in Rules 6.3 (exercise by personal representatives) and 6.4 (good leavers) but if an Optionholder dies while time is running under Rule 6.4, the Option shall not lapse until the expiry of the relevant period in Rule 6.3;

 

6.6.4                     subject to Rule 9 (exchange of options on a takeover), the expiry of any of the applicable periods in Rules 8.1, 8.2, 8.3 and 8.4 (takeovers etc);

 

6.6.5                     subject to Rule 6.5 (retaining an office or employment with an Associated Company etc), the date on which an Optionholder ceases to be a director or employee of a Participating Company for any reason other than his death or those specified in Rule 6.4 (good leavers);

 

6.6.6                     the date on which a resolution is passed, or an order is made by the Court, for the compulsory winding up of the Company;

 

6.6.7                  the date on which the Optionholder becomes bankrupt or does or omits to do anything as a result of which he is deprived of the legal or beneficial ownership of the Option; and

 

6.6.8                     where, before an Option has become capable of being exercised, the date on which the Optionholder:

 

(i)                                   gives notice that he intends to stop paying Monthly Contributions;

 

(ii)                               is deemed under the terms of the Savings Contract to have given such notice; or

 

(iii)                             makes an application for the repayment of Monthly Contributions.

 

7                                      Exercise of Options

 

7.1                            An Option may only be exercised with monies not exceeding the amount of repayment (including any Bonus or interest) made under the related Savings Contract. For this purpose, repayment under the Savings Contract shall exclude the repayment of any Monthly Contribution the due date for payment of which falls more than one month after the date on which repayment is made.

 

7.2                            Save as otherwise provided in the Rules, an Option shall be exercisable in whole or in part but only on one occasion, by notice in writing (in the form prescribed by the Directors) given by the Optionholder (or his personal representatives) to the Company (or to a duly authorised agent of the Company).  The notice of exercise of the Option

 

8

 

shall be accompanied by the relevant option certificate and a remittance in cleared funds for the aggregate Exercise Price payable.

 

7.3                            As soon as reasonably practicable (and not later than 30 days) after the Option exercise the Directors shall allot or procure the transfer of the Shares to the Optionholder (or his nominee) in respect of which the Option has been validly exercised.

 

7.4                            The allotment or transfer of any Shares pursuant to the Plan will be subject to obtaining any applicable approval or consent.

 

7.5                            Shares allotted under the Plan shall rank pari passu in all respects with the Shares of the same class for the time being in issue save as regards any rights attaching to such Shares by reference to a record date prior to the date of allotment and, in the case of a transfer of existing Shares, the transferee shall not acquire any rights attaching to such Shares by reference to a record date prior to the date of such transfer.

 

7.6                            If and so long as the Shares are listed on the London Stock Exchange, the Company shall apply to the London Stock Exchange for the Shares allotted pursuant to the Plan to be admitted to the Official List of the UK Listing Authority.

 

8                                      Takeovers and Liquidation

 

8.1                            Subject to Rule 8.5, if any person (either alone or together with any person acting in concert with him) obtains Control of the Company as a result of making:

 

8.1.1                  a general offer to acquire the whole of the issued ordinary share capital of the Company (or such part as is not already owned by the offeror or any person acting in concert with the offeror) which is made on a condition such that if it is satisfied the person making the offer together with persons acting in concert with him, will have Control of the Company; or

 

8.1.2                  a general offer to acquire all the shares in the Company which are of the same class as the Shares,  

 

any Option may be exercised immediately before and conditionally upon such change of  Control or within six months thereafter.

 

8.2                            Subject to Rule 8.5, if under section 899 of the Companies Act 2006 (or in either case closely comparable overseas legislation), the Court sanctions a compromise or arrangement applicable to or affecting:

 

(a)                                    all the ordinary share capital of the Company or all the Shares of the same class as the Shares to which the Option relates; or

 

(b)                                    all the Shares or all the Shares of that same class, which are held by a class of shareholders identified otherwise than by reference to their employment or directorships or their participation in an approved SAYE Option Scheme,

 

then any Option may be exercised within 6 months of the Court sanctioning such compromise or arrangement.

 

8.3                            Subject to Rule 8.5, if any person becomes bound or entitled to acquire Shares under Chapter 3 of Part 28 of the Companies Act 2006 (or closely comparable overseas legislation), any unexercised Option may be exercised at any time when that person remains so bound or entitled.

 

9

 

8.4                            Subject to Rule 8.5, if the Company passes a resolution for the voluntary winding up of the Company, any outstanding Option may be exercised within 60 days of the passing of the resolution after which, to the extent not exercised, it will lapse.

 

8.5                            If:

 

8.5.1                  the events referred to in rule 8.1, 8.2, 8.3 or 8.4 are part of an arrangement which will mean that the Company will be under the Control of another company; and

 

8.5.2                  the persons who owned Shares in the Company immediately before the change of Control will immediately afterwards own at least 75% of the shares in that other company; and

 

8.5.3                  Optionholders are to be offered substitute options under Rule 9,  

 

then Options which are not exercisable otherwise than as a consequence of those  Rules may not be exercised.

 

9                                      Exchange of Options on a Takeover

 

9.1                            Notwithstanding the provisions of Rule 8, if any company (the “Acquiring Company”) obtains Control of the Company or becomes bound or entitled to acquire shares in the Company within any of the sets of circumstances specified in Rules 8.1, 8.2 and 8.3, any Optionholder may at any time within the periods specified in those Rules, by agreement with the Acquiring Company, release his Option (the “Old Option”)  in consideration of the grant to him of a new option (the “New Option”) which is equivalent to the Old Option (by virtue of satisfying the requirements of paragraph 39 of Schedule 3 but relates to shares in a different company (whether the Acquiring Company itself or some other company falling within paragraph (b) or (c) of paragraph 18 of Schedule 3).

 

9.2                            Where the “New Options” are granted pursuant to Rule 9.1 they shall be regarded for the purposes of the subsequent application of the provisions of the Plan as having been granted at the time when the corresponding Old Options were granted and, with effect from the date on which the New Options are granted:

 

9.2.1                  save for the definitions of “Participating Company” and “Group Company” in Rule 1, references to the “Company” (including the definition in Rule 1 shall be construed as being references to the Acquiring Company or such other company to whose shares the New Option relates;

 

9.2.2                  references to “Shares” (including the definition in Rule 1) shall be construed as being references to shares in the Acquiring Company or shares in such other company to which the New Options relate but references to Participating Company shall continue to be construed as if references to the Company were references to Indivior;

 

9.2.3                  the Savings Contract made in connection with the Old Option has been made in connection with the New Option; and

 

9.2.4                  the Bonus Date in relation to the New Option was the same as in relation to the Old Option.

 

10

 

10                               Variation of Share Capital

 

10.1                     In the event of any capitalisation (other than a scrip issue), rights issue, consolidation, subdivision, reduction or other variation of the share capital of the Company:

 

10.1.1          the number of Shares comprised in an Option;

 

10.1.2          their Exercise Price;

 

10.1.3           where an Option has been exercised but no Shares have been allotted or transferred in satisfaction of such exercise, the number of Shares to be so allotted or transferred and their Exercise Price;

 

may be varied in such manner as the Directors shall determine provided that:

 

(i)                                        the variation or variations made under this Rule 10 must (in particular) secure: 

 

(a)                                 that the total market value of the Shares which may be acquired by the exercise of the Option is immediately after the variation or variations substantially the same as what it was immediately before the variation or variations; and

 

(b)                                 that the total price at which those Shares may be acquired is immediately after the variation or variations substantially the same as what it was immediately before the variation or variations; and

 

(ii)                                     except as provided in Rules 10.2 and 10.3, no variation shall be made which would result in the Exercise Price for an allotted Share being less than its nominal value.

 

10.2                     Any adjustment made to the Exercise Price of unissued Shares which would have the effect of reducing the Exercise Price to less than the nominal value of the Shares shall only be made if and to the extent that the Directors are authorised to capitalise from the reserves of the Company a sum equal to the amount by which the nominal value of the Shares in respect of which the Option is exercisable exceeds the adjusted Exercise Price.  The Directors may apply such sum in paying up such amount on such Shares so that on the exercise of any Option in respect of which such a reduction shall have been made, the Directors shall capitalise such sum (if any) and apply the same in paying up such amount as aforesaid.

 

10.3                     Where an Option subsists over both issued and unissued Shares, an adjustment may be only be made under Rule 10.2 if the reduction of the Exercise Price in relation to Options over both issued and unissued Shares can be made to the same extent.

 

10.4                     The Directors may take such steps as they consider necessary to notify Optionholders of any adjustment made under this Rule 10 and to call in, cancel, endorse, issue or re- issue any option certificate consequent upon such adjustment.

 

11                               Administration

 

11.1                     The Directors shall have power from time to time to make and vary such regulations (not being inconsistent with this Plan) for the implementation and administration of this Plan as they think fit.

 

11.2                     The decision of the Directors shall be final and binding in all matters relating to this Plan (other than in the case of matters to be determined or confirmed by the auditors for the time being of the Company in accordance with this Plan).

 

11

 

11.3                     The costs of establishing and administering this Plan shall be borne by the Company. However, the Company may require any Participating Company to enter into such arrangement with it as it shall deem necessary for each Participating Company to bear the costs borne by the Company directly or indirectly in respect of such participating Company’s employees.

 

11.4                     The Company may, but shall not be obliged to, provide Eligible Employees or Optionholders with copies of any notices circulars or other documents sent to shareholders of the Company.

 

12                               Amendments

 

12.1                     Subject to Rules 12.2 and 12.3 the Rules may be amended in any respect by the Directors.

 

12.2                     If and for so long as the Shares are admitted to the “Official List” of the London Stock Exchange no amendment to the advantage of Optionholders or Eligible Employees (except for an amendment which could be included in an additional section adopted under this Rule 12) can be made to the provisions in the Rules (if any) relating to:

 

12.2.1          who can be an Optionholder or Eligible Employee;

 

12.2.2          the number of Shares which can be allocated under the Plan; and

 

12.2.3           the basis for determining an Optionholder’s entitlement to and the terms of the Shares and any adjustment in the event of a variation in the share capital of the Company as described in Rule 10.

 

without the approval by ordinary resolution of the Company in general meeting, except for minor amendments to benefit the administration of the Plan, to take account of a change in legislation or to obtain or maintain favourable tax, exchange control or regulatory treatment for Optionholders or Eligible Employees or for a member of the Group.

 

12.3                     No amendment will be made under Rule 12.2 which would abrogate or materially affect adversely the existing rights of an Optionholder unless it is made with his written consent or by a resolution passed as if the Options constituted a separate class of share capital and the provisions of the Articles of Association of the Company and of the Companies Act 2006 relating to class meetings (with the necessary amendments) applied to that class.

 

12.4                     Written notice of any amendment to the Plan shall be given to all Optionholders affected thereby.

 

12.5                     The Company can adopt additional sections of the Rules, applicable in any jurisdiction, under which Options may be subject to additional and/or modified terms and conditions, having regard to any securities, exchange control or taxation laws, which may apply to the Optionholder, the Company, any Participating Company or Associated Company. Any additional sections must conform to the basic principles of the Plan and must not enlarge to the benefit of Optionholders the limits in the Rules.

 

12

 

13                               General

 

13.1                     The Plan will terminate on 30 November, 2024.  On termination, no further Options may be granted but such termination shall be without prejudice to any accrued rights in existence at the date thereof.

 

13.2                     The Company will at all times keep available sufficient authorised and unissued Shares, or shall ensure that sufficient Shares will be available, to satisfy the exercise to the full extent still possible of all subsisting Options, taking account of any other obligations of the Company to issue Shares.

 

13.3                     In the event that the Directors decide to grant options over issued Shares then the Company and/or any Participating Company may give or procure financial assistance (whether by way of loan, gift, guarantee to a third party lender or otherwise) to the trustee or trustees for the time being of any employee benefit trust established by any Group Company to facilitate the acquisition by such trustee or trustees of the relevant number of Shares, provided that any such financial assistance shall only be given to the extent permitted by Chapter 2 of Part 18 of the Companies Act 2006.

 

13.4                     Notwithstanding any other provision of this Plan:

 

13.4.1           this Plan shall not form part of any contract of employment between any Participating Company and any employee of any such company and the rights and obligations of any individual under the terms of his office or employment with any Group Company shall not be affected by his participation in this Plan or any right which he may have to participate in it and this Plan shall afford such an individual no additional rights to compensation or damages in consequence of the termination of such office or employment for any reason whatsoever;

 

13.4.2           no Optionholder shall be entitled to any compensation or damages for any loss or potential loss which he may suffer by reason of being unable to exercise an Option in consequence of the loss or termination of his office or employment with any Group Company for any reason whatsoever;

 

13.4.3           Participation in the Plan does not affect the rights of any Eligible Employee (whether beneficially or adversely) under any pension scheme which relates to his employment.  In particular (but without limitation), the contributions payable to such a pension scheme by his employer, and the benefits provided to or in respect of any Eligible Employee under the pension scheme, are not to be increased as a result of their participation in the Plan or the benefits received by them under the Plan;

 

13.4.4           this Plan shall not confer on any person any legal or equitable rights (other than those constituting the Options themselves) against any Group Company directly or indirectly, or give rise to any cause of action at law or in equity against any Group Company.

 

13.5                     Save as otherwise provided in this Plan any notice or communication to be given to any Eligible Employee or Optionholder may be:

 

13.5.1           delivered by electronic mail and it shall be deemed to have been received upon electronic confirmation of such delivery; or

 

13.5.2           personally delivered or sent by ordinary post to his last know address and where a notice or communication is sent by post it shall be deemed to have been

 

13

 

received 48 hours after the same was put into the post properly addressed and stamped.

 

Share certificates and other communications sent by post will be sent at the risk of the Eligible Employee or Optionholder concerned and neither the Company nor any of its Subsidiaries shall have any liability whatsoever to any such person in respect of any notification, document, share certificate or other communication so given, sent or made.

 

13.6                     Any notice to be given to the Company shall be delivered or sent to the Company at its registered office, marked for the attention of the Company Secretary, and shall be effective upon receipt. The Board may make other arrangements to receive notices.

 

13.7                     This Plan and all Options granted under it shall be governed by and construed in accordance with English law.

 

14Exhibit 4.15

 

Indivior PLC

 

U. S. Employee Stock Purchase Plan

 

 

TABLE OF CONTENTS

 

	
Article I. Purpose   and Effective Date
    	
1
    
	
 
    	
 
    
	
Article II.   Definitions
    	
1
    
	
 
    	
 
    
	
Article III.   Administration
    	
3
    
	
 
    	
 
    
	
Article IV. Number   of Shares
    	
4
    
	
 
    	
 
    
	
Article V.   Eligibility Requirements
    	
4
    
	
 
    	
 
    
	
Article VI.   Enrollment
    	
5
    
	
 
    	
 
    
	
Article VII. Grant   of Options on Enrollment
    	
5
    
	
 
    	
 
    
	
Article VIII.   Payroll Deductions
    	
6
    
	
 
    	
 
    
	
Article IX.   Purchase of Shares
    	
6
    
	
 
    	
 
    
	
Article X.   Withdrawal From the Plan; Termination of Employment; Leave of Absence;
    	
8
    
	
 
    	
 
    
	
Article XI.   Miscellaneous
    	
9
    

 

 

ARTICLE I

 

PURPOSE AND EFFECTIVE DATE

 

1.1       The purpose of the Indivior PLC U.S. Employee Stock Purchase Plan (the “Plan”) is to provide an opportunity for eligible employees to acquire a proprietary interest in Indivior PLC (the “Company”) through accumulated payroll deductions. It is the intent of the Company to have the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code, including any amendments or replacements of such section. The provisions of the Plan shall be construed to extend and limit participation in a manner consistent with the requirements of Section 423 of the Code.

 

1.2       The Plan was initially approved by the Remuneration Committee of the Board of Indivior PLC, a company registered in England and Wales, on 19 November 2015 (the “Effective Date”)]. No option shall be granted under the Plan after the date as of which the Plan is terminated by the Board in accordance with Section 11.7 of the Plan.

 

ARTICLE II 

 

DEFINITIONS

 

2.1                                      “Account” means a recordkeeping account maintained for a Participant to which payroll deductions are credited in accordance with Article VIII of the Plan.

 

2.2                                      “Accumulation Period” means, as to the Company or a Participating Subsidiary, a period of six (6) months commencing with the first regular payroll period commencing on or after each successive January 1 and ending on each successive June 30 and a period of six (6) months commencing with the first regular payroll period commencing on or after each successive July 1 and ending on each successive December 31. The Committee may modify (including increasing or decreasing the length of time covered) or suspend Accumulation Periods at any time and from time to time.

 

2.3                                      “Administrator” means the persons or committee appointed under Section 3.1 to administer the Plan.

 

2.4                                      “Article” means an Article of this Plan.

 

2.5                                      “Base Earnings” means base salary and wages payable by the Company or a Participating Subsidiary to an Eligible Employee, prior to pre-tax deductions for contributions to qualified or non-qualified (under the Code) benefit plans or arrangements, and excluding bonuses, incentives and overtime pay but including commissions.

 

2.6                                      “Board” means the Board of Directors of the Company or a duly authorized Committee thereof.

 

2.7                                      “Code” means the Internal Revenue Code of 1986, as amended.

 

2.8                                      “Company” means Indivior PLC, a company registered in England and Wales.

 

2.9                                      “Cut-Off Date” means the date established by the Administrator from time to time by which enrollment forms must be received with respect to an Accumulation Period.

 

1

 

2.10                               “Eligible Employee” means an Employee, including an employee on an Authorized Leave of Absence (as defined in Section 10.3), but shall exclude any executive directors unless and until the Plan is approved by ordinary resolution of the shareholders in General Meeting.

 

2.11                               “Employee” means an individual who performs services for the Company or a Participating Subsidiary pursuant to an employment relationship described in Treasury Regulations Section 31.3401(c)-1 or any successor provision, or an individual who would be performing such services but for such individual’s Authorized Leave of Absence (as defined in Section 10.3).

 

2.12                               “Enrollment Date” means the first Trading Day of an Accumulation Period beginning on or after January 1, 2016.

 

2.13                               “Exchange Act” means the Securities Exchange Act of 1934.

 

2.14                               “Fair Market Value” means, as of any applicable date:

 

(a)                                 If the security is listed on any established stock exchange or traded on the London Stock Exchange, the closing price of the security on such exchange (or the mean between the bid and asked prices for the security if the security is so quoted instead) on the date of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable, or if no such reported sale of the security shall have occurred on such date, on the latest preceding date on which there was such a reported sale, in all cases, as reported in The Wall Street Journal or such other source as the Board deems reliable. Unless otherwise provided by the Board, if there is no closing sales price (or closing bid if no sales were reported) for the security on the date of determination, then the Fair Market Value shall be the mean between the bid and asked prices for the security on the last preceding date for which such quotation exists.

 

(b)                                 In the absence of such markets for the security, the value determined by the Board in good faith.

 

2.15                               “Participant” means an Eligible Employee who has enrolled in the Plan pursuant to Article VI. A Participant shall remain a Participant until the applicable date set forth in Article X.

 

2.16                               “Participating Subsidiary” means a Subsidiary incorporated under the laws of any state in the United States, a territory of the United States, Puerto Rico, or the District of Columbia, or such foreign Subsidiary approved under Section 3.3, which has adopted the Plan as a Participating Subsidiary by action of its board of directors and which has been designated by the Board in accordance with Section 3.3 as covered by the Plan, subject to the requirements of Section 423 of the Code except as noted in Section 3.3.

 

2.17                               “Plan” means the Indivior PLC U.S. Employee Stock Purchase Plan, as amended from time to time.

 

2.18                               “Purchase Date” means the specific Trading Day during an Accumulation Period on which Shares are purchased under the Plan in accordance with Article IX. For each Accumulation Period, the Purchase Date shall be the last Trading Day occurring in such Accumulation Period. The Administrator may, in its discretion, designate a different Purchase Date with respect to any Accumulation Period.

 

2.19                               “Qualified Military Leave” means an absence due to service in the uniformed services of the United States (as defined in Chapter 43 of Title 38 of the United States Code) by an individual employee of the Company or a Participating Subsidiary, provided the individual’s rights to reemployment under the Uniformed Services Employment and Reemployment Rights Act of 1994 have not expired or terminated.

 

2

 

2.20                               “Section” means a section of this Plan, unless indicated otherwise.

 

2.21                               “Securities Act” means the Securities Act of 1933, as amended.

 

2.22                               “Share” means a share, par value, of Indivior PLC

 

2.23                               “Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Company if, as of the applicable Enrollment Date, each of the corporations other than the last corporation in the chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in the chain.

 

2.24                               “Trading Day” means a day the national exchange on which the Shares are listed for trading or, if not so listed, a day the London Stock Exchange is open for trading.

 

ARTICLE III 

 

ADMINISTRATION

 

3.1                                      Subject to Section 11.7, the Plan shall be administered by the Board, or a duly appointed committee of the Board (“Committee”). The Committee shall consist of at least one Board member, but may additionally consist of individuals who are not members of the Board. The Committee shall serve at the pleasure of the Board. If the Board does not so appoint a Committee, the Board shall administer the Plan. Any references herein to “Administrator” are, except as the context requires otherwise, references to the Board or the Committee, as applicable.

 

3.2                                      If appointed under Section 3.1, the Committee may select one of its members as chairman and may appoint a secretary. The Committee shall make such rules and regulations for the conduct of its business as it shall deem advisable; provided, however, that all determinations of the Committee shall be made by a majority of its members.

 

3.3                                      The Administrator shall have the power, in addition to the powers set forth elsewhere in the Plan, and subject to and within the limits of the express provisions of the Plan, to construe and interpret the Plan and options granted under it; to establish, amend and revoke rules and regulations for administration of the Plan including determination of beneficiary designation requirements; to determine all questions of policy and expediency that may arise in the administration of the Plan; to allocate and delegate such of its powers as it deems desirable to facilitate the administration and operation of the Plan; and, generally, to exercise such powers and perform such acts as it deems necessary or expedient to promote the best interests of the Company. The Administrator’s determinations as to the interpretation and operation of this Plan shall be final and conclusive.

 

3.4                                      The Board may designate from time to time which Subsidiaries of the Company shall be Participating Subsidiaries. Without amending the Plan, the Board may adopt special or different rules for the operation of the Plan which allow employees of any foreign Subsidiary to participate in the purposes of the Plan. In furtherance of such purposes, the Board may approve such modifications, procedures, rules or sub-plans as it deems necessary or desirable, including those deemed necessary or desirable to comply with any foreign laws or to realize tax benefits under foreign law. Any such different or special rules for employees of any foreign Subsidiary shall not be subject to Code Section 423 and for purposes of the Code shall be treated as separate and apart from the balance of the Plan.

 

3.5                       This Article III relating to the administration of the Plan may be amended by the Board from time to time as may be desirable to satisfy any requirements of or under the federal securities and/ or other applicable laws of the United States, or to obtain any exemption under such laws.

 

3

 

ARTICLE IV 

 

NUMBER OF SHARES

 

4.1                                      Subject to the Plan being approved by ordinary resolution of the shareholders of the Company in General Meeting, the nominal amount of Shares that may be authorized for issuance pursuant to the Plan shall be limited so that it does not exceed the limit set out in Section 4.2. This limitation only applies to the issuance of new Shares or the transfer of Treasury Shares.

 

4.2                              The number of Shares that may be allocated under the Plan on any day cannot, when added to the aggregate of the number of Shares allocated in the period of 10 years ending at that time under the Plan and any other Employees’ Share Plan adopted by the Company, exceed the number of Shares that is equal to 10 per cent. of the ordinary share capital of the Company in issue at that time.

 

4.3                                      In the event of any reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, acquisition of property or shares, separation, asset spin-off, stock rights offering, liquidation or other similar change in the capital structure of the Company, the Board shall make such adjustment, if any, as it deems appropriate in the number, kind and purchase price of the Shares available for purchase under the Plan in order to prevent the dilution or enlargement of a Participant’s rights under the Plan. In the event that, at a time when options are outstanding hereunder, there occurs a dissolution or liquidation of the Company, except pursuant to a transaction to which Section 424(a) of the Code applies, each option to purchase Shares shall terminate, but the Participant holding such option shall have the right to exercise his or her option prior to such termination of the option upon the dissolution or liquidation. The Company reserves the right to reduce the number of Shares which Employees may purchase pursuant to their enrollment in the Plan.

 

ARTICLE V 

 

ELIGIBILITY REQUIREMENTS

 

5.1                                      Except as provided in Section 5.2, each individual who is an Eligible Employee of the Company or a Participating Subsidiary on the applicable Cut-Off Date shall become eligible to participate in the Plan in accordance with Article VI as of the first Enrollment Date following the date the individual becomes an Employee of the Company or a Participating Subsidiary, provided that the individual remains an Eligible Employee on the first day of the Accumulation Period associated with such Enrollment Date. Participation in the Plan is entirely voluntary.  

 

5.2                                      Employees meeting any of the following restrictions are not eligible to participate in the Plan:

 

 

(a)                                 Employees who, immediately upon enrollment in the Plan or upon grant of an Option would own directly or indirectly, or hold options or rights to acquire, an aggregate of five percent (5%) or more of the total combined voting power or value of all outstanding shares of all classes of stock of the Company or any Subsidiary (and for purposes of this paragraph, the rules of Code Section 424(d) shall apply, and stock which the Employee may purchase under outstanding options shall be treated as stock owned by the Employee);

 

(b)                                 Employees (other than individuals on Authorized Leave of Absence (as defined in Section 10.3)) who are customarily employed by the Company or a Participating Subsidiary for not more than twenty (20) hours per week; or

 

(c)                                  Employees (other than individuals on Authorized Leave of Absence (as defined in Section 10.3)) who are customarily employed by the Company or a Participating Subsidiary for not more than five (5) months in any calendar year.

 

4

 

5.3                                      The Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the options shall be granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and the options granted hereunder shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

ARTICLE VI 

 

ENROLLMENT

 

6.1                                      Eligible Employees are able to enroll in the Plan on the first day of each Accumulation Period. Any Eligible Employee may consent to enrollment in the Plan for an Accumulation Period by completing and signing an enrollment form (which authorizes payroll deductions during such Accumulation Period in accordance with Section 8.1) and submitting such enrollment form to the Company or the Participating Subsidiary on or before the Cut-Off Date specified by the Administrator. Payroll deductions pursuant to the enrollment form shall be effective as of the first payroll period with a pay day after the Enrollment Date for the Accumulation Period to which the enrollment form relates, and shall continue in effect until the earliest of:

 

(a)                             The end of the last payroll period with a payday in the Accumulation Period;

 

(b)                             The date during the Accumulation Period as of which the Employee elects to cease his or her enrollment in accordance with Section 8.3; and

 

(c)                             The date during the Accumulation Period as of which the Employee withdraws from the Plan or has a termination of employment in accordance with Article X.

 

ARTICLE VII

 

GRANT OF OPTIONS ON ENROLLMENT

 

7.1                                      The automatic enrollment by an Eligible Employee in the Plan as of an Enrollment Date will constitute the grant as of such Enrollment Date by the Company to such Participant of an option to purchase Shares from the Company pursuant to the Plan.

 

7.2                              An option granted to a Participant pursuant to this Plan shall expire, if not terminated earlier for any reason, on the earliest to occur of: (a) the end of the Purchase Date with respect to the Accumulation Period in which such option was granted; (b) the completion of the purchase of Shares under the option under Article IX; or (c) the date on which participation of such Participant in the Plan terminates for any reason.

 

7.3                                      As of each Enrollment Date, except as otherwise provided below, on the Enrollment Date of each Accumulation Period, each Participant in such Accumulation Period shall automatically be granted an option to purchase on each Purchase Date during such Accumulation Period (at the applicable purchase price) up to a maximum number of Shares, subject to the terms of the Plan, equal to the quotient of twelve thousand five hundred dollars ($12,500) divided by the Fair Market Value of a Share on the Enrollment Date of such Accumulation Period, subject to adjustment under Section 4.2 above. The Administrator may, in its discretion and prior to the Enrollment Date of an Accumulation Period change the maximum number of Shares that may be purchased by a Participant in such Accumulation Period or on any Purchase Date within an Accumulation Period.

 

7.4                                      Notwithstanding any other provision of this Plan, no Participant may be granted an option which permits his or her rights to purchase Shares under the Plan and any other Code Section 423

 

5

 

employee stock purchase plan of the Company or any of its Subsidiaries or parent companies to accrue (when the option first becomes exercisable) at a rate which exceeds twenty-five thousand dollars ($25,000) of Fair Market Value of such Shares (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time.

 

ARTICLE VIII 

 

PAYROLL DEDUCTIONS

 

8.1                              An Employee who files an enrollment form pursuant to Article VI shall elect and authorize in such form to have deductions made from his or her pay on each payday he or she receives a paycheck during the Accumulation Period to which the enrollment form relates, and he or she shall designate in such form the percentage (in whole percentages) of Base Earnings to be deducted each payday during such Accumulation Period. The minimum an Employee may elect and authorize to have deducted is one percent (1%) of his or her Base Earnings paid per pay period in such Accumulation Period, and the maximum is ten percent (10%) of his or her Base Earnings paid per pay period in such Accumulation Period (or such larger or smaller percentage as the Administrator may designate from time to time).

 

8.2                                      Except as provided in the last paragraph of Section 6.1, deductions from a Participant’s Base Earnings shall commence upon the first payday on or after the commencement of the Accumulation Period, and shall continue until the date on which such authorization ceases to be effective in accordance with Article VI. The amount of each deduction made for a Participant shall be credited to the Participant’s Account. All payroll deductions received or held by the Company or a Participating Subsidiary may be, but are not required to be, used by the Company or Participating Subsidiary for any corporate purpose, and the Company or Participating Subsidiary shall not be obligated to segregate such payroll deductions, but may do so at the discretion of the Board.

 

8.3                                      As of the last day of any month during an Accumulation Period, a Participant may elect to cease (but not to increase or decrease) payroll deductions made on his or her behalf for the remainder of such Accumulation Period by filing the applicable election with the Company or Participating Subsidiary in such form and manner and at such time as may be permitted by the Administrator. A Participant who has ceased payroll deductions may have the amount which was credited to his or her Account prior to such cessation applied to the purchase of Shares as of the Purchase Date, in accordance with Section 9.1, and receive the balance of the Account with respect to which the enrollment is ceased, if any, in cash. A Participant who has ceased payroll deductions may also voluntarily withdraw from the Plan pursuant to Section 10.1. Any Participant who ceases payroll deductions for an Accumulation Period may re-enroll in the Plan on the next subsequent Enrollment Date following the cessation in accordance with the provisions of Article VI. A Participant who ceases to be employed by the Company or any Participating Subsidiary will cease to be a Participant in accordance with Section 10.2.

 

8.4                                      A Participant may not make any separate or additional contributions to his Account under the Plan. Neither the Company nor any Participating Subsidiary shall make separate or additional contributions to any Participant’s Account under the Plan.

 

ARTICLE IX 

 

PURCHASE OF SHARES

 

9.1                                      Subject to Section 9.2, any option held by the Participant which was granted under this Plan and which remains outstanding as of a Purchase Date shall be deemed to have been exercised on such Purchase Date for the purchase of the number of Shares (including partial or fractional Shares) which the funds accumulated in his or her Account as of the Purchase Date will purchase at the applicable purchase price (but not in excess of the number of Shares for which options have been

 

6

 

granted to the Participant pursuant to Section 7.3). Any purchase of Shares will be based on the applicable currency in which the Shares are listed and traded on an established stock exchange on the Purchase Date, and any required currency conversion shall be based on the closing day exchange rates as reported in The Wall Street Journal or such other source as the Board deems reliable. No Shares will be purchased on behalf of any Participant who fails to file an enrollment form authorizing payroll deductions for an Accumulation Period.

 

9.2                                      A Participant who holds an outstanding option as of a Purchase Date shall not be deemed to have exercised such option if the Participant elected not to exercise the option by withdrawing from the Plan in accordance with Section 10.1.

 

9.3                                      Except as otherwise set forth in this Section 9.3, the purchase price for each Share purchased under any option shall be eighty-five percent (85%) of the lower of:

 

(a)                             The Fair Market Value of a Share on the Enrollment Date on which such option is granted; or

 

(b)                             The Fair Market Value of a Share on the Purchase Date, but, in the case of newly issued Shares, not lower than the par value of a Share.

 

Notwithstanding the above, the Board may establish a different purchase price for each Share purchased under any option provided that such purchase price is determined at least thirty (30) days prior to the Accumulation Period for which it is applicable and provided that such purchase price may not  be less than (i) the purchase price set forth above and (ii)—in the case of newly issued Shares—than the par value per Share.

 

9.4                       If Shares are purchased by a Participant pursuant to Section 9.1, then such Shares shall be held in non-certificated form at a bank or other appropriate institution selected by the Administrator until the earlier of the Participant’s termination of employment or the time a Participant requests delivery of certificates representing such shares, which would only be possible if the Board resolved that share certificates shall be issued. If any law governing corporate or securities matters, or any applicable regulation of the Securities and Exchange Commission or other body having jurisdiction with respect to such matters, shall require that the Company or the Participant take any action in connection with the Shares being purchased under the option, delivery of such Shares shall be postponed until the necessary action shall have been completed, which action shall be taken by the Company at its own expense, without unreasonable delay. Shares transferred pursuant to this Section 9.4 shall be registered in the name of the Participant or, if the Participant so elects, in the names of the Participant and one or more such other persons as may be designated by the Participant in joint tenancy with rights of survivorship or in tenancy by the entireties or as spousal community property, or in such forms of trust as may be approved by the Administrator, to the extent permitted by law.

 

9.5                                      In the case of Participants employed by a Participating Subsidiary, the Board may provide for Shares to be sold through the Subsidiary to such Participants, to the extent consistent with and governed by Section 423 of the Code.

 

9.6                                      If the total number of Shares for which an option is exercised on any Purchase Date in accordance with this Article IX, when aggregated with all Shares previously granted under this Plan, exceeds the maximum number of Shares reserved in Section 4.1, the Administrator shall make a pro rata allocation of the Shares available for delivery and distribution in as nearly a uniform manner as shall be practicable and as it shall determine to be equitable, and the balance of the cash amount credited to the Account of each Participant under the Plan shall be returned to him or her as promptly as administratively practical.

 

7

 

9.8                                      If a Participant or former Participant sells, transfers, or otherwise makes a disposition of Shares purchased pursuant to an option granted under the Plan within two years after the date such option is granted or within one (1) year after the Purchase Date to which such option relates, or if the Participant or former Participant otherwise has a taxable event relating to Shares purchased under the Plan, and if such Participant or former Participant is subject to U.S. federal income tax, then such Participant or former Participant shall notify the Company or Participating Subsidiary in writing of any such sale, transfer or other disposition within ten (10) days of the consummation of such sale, transfer or other disposition, and shall remit to the Company or Participating Subsidiary or authorize the Company or Participating Subsidiary to withhold from other sources such amount as the Company may determine to be necessary to satisfy any federal, state, or local tax withholding obligations of the Company or Participating Subsidiary. A Participant must reply to a written request, within ten (10) days of the receipt of such written request, from the Company, Participating Subsidiary, or Administrator regarding whether such a sale, transfer or other disposition has occurred.

 

The Administrator may from time to time establish rules and procedures (including but not limited to postponing delivery of Shares until the earlier of the expiration of the two (2) year or one (1) year period or the disposition of such Shares by the Participant) to cause the withholding requirements to be satisfied.

 

ARTICLE X

 

WITHDRAWAL FROM THE PLAN; TERMINATION OF EMPLOYMENT; 
 LEAVE OF ABSENCE;

 

10.1                               Withdrawal from the Plan. Effective as of the last day of any calendar quarter during an Accumulation Period, a Participant may withdraw from the Plan in full (but not in part) by delivering a notice of withdrawal to the Company (in a manner prescribed by the Administrator) at least ten (10) business days prior to the end of such calendar quarter (but in no event later than the June 1 or December 1 immediately preceding the Purchase Date for the Plan’s two Accumulation Periods, respectively). Upon such withdrawal from participation in the Plan, all funds then accumulated in the Participant’s Account shall not be used to purchase Shares, but shall instead be distributed to the Participant as soon as administratively practical after the end of such calendar quarter, and the Participant’s payroll deductions shall cease as of the end of such calendar quarter. An Employee who has withdrawn during an Accumulation Period may not return funds to the Company or a Participating Subsidiary during the same Accumulation Period and require the Company or Participating Subsidiary to apply those funds to the purchase of Shares, nor may such Participant’s payroll deductions continue, in accordance with Article VI. Any Eligible Employee who has withdrawn from the Plan may, however, re-enroll in the Plan on the next subsequent Enrollment Date following withdrawal in accordance with the provisions of Article VI.

 

10.2                               Termination of Employment. Participation in the Plan terminates immediately when a Participant ceases to be employed by the Company or any Participating Subsidiary for any reason whatsoever, including but not limited to termination of employment, whether voluntary or involuntary, or on account of death, disability, or retirement, or if the participating Subsidiary employing the Participant ceases for any reason to be a Participating Subsidiary. Participation in the Plan also terminates immediately when a Participant ceases to be an Eligible Employee under Article V or withdraws from the Plan. Upon termination of participation such terminated Participant’s outstanding options shall thereupon terminate. As soon as administratively practical after termination of participation, the Company shall pay to the Participant or legal representative all amounts accumulated in the Participant’s Account and held by the Company at the time of termination of participation, and any Participating Subsidiary shall pay to the Participant or legal representative all amounts accumulated in the Participant’s Account and held by the Participating Subsidiary at the time of termination of participation.

 

8

 

10.3                 Leaves of Absence.

 

(a)                             If a Participant takes a leave of absence (other than an Authorized Leave of Absence) without terminating employment, such Participant will be deemed to have discontinued contributions to the Plan in accordance with Section 8.3, but will remain a Participant in the Plan through the balance of the Accumulation Period in which his or her leave of absence begins, so long as such leave of absence does not exceed ninety (90) days. If a Participant takes a leave of absence (other than an Authorized Leave of Absence) without terminating employment, such Participant will be deemed to have withdrawn from the Plan in accordance with Section 10.1 if such leave of absence exceeds ninety (90) days.

 

(b)                                 An Employee on an Authorized Leave of Absence shall remain a Participant in the Plan and, in the case of a paid Authorized Leave of Absence, shall have deductions made under Section 8.1 from payments that would, but for the Authorized Leave of Absence, be Base Earnings. An Employee who does not return from an Authorized Leave of Absence on the scheduled date (or, in the case of Qualified Military Leave, prior to the date such individual’s reemployment rights under the Uniformed Services Employment and Reemployment Rights Act of 1994 have expired or terminated) shall be deemed to have terminated employment on the last day of such Authorized Leave of Absence (or, in the case of Qualified Military Leave, the date such reemployment rights expire or are terminated).

 

(c)                             An “Authorized Leave of Absence” means (a) a Qualified Military Leave, and (b) an Employee’s absence of more than ninety (90) days which has been authorized, either pursuant to a policy of the Company or the Participating Subsidiary that employs the Employee, or pursuant to a written agreement between the employer and the Employee, which policy or written agreement guarantees the Employee’s rights to return to employment.

 

ARTICLE XII 

 

MISCELLANEOUS

 

11.1                               Interest. Interest or earnings will not be paid on any Employee Accounts.

 

11.2                               Restrictions on Transfer. The rights of a Participant under the Plan shall not be assignable or transferable by such Participant, and an option granted under the Plan may not be exercised during a Participant’s lifetime other than by the Participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from the Plan in accordance with Section 10.1.

 

11.3                               Administrative Assistance. If the Administrator in its discretion so elects, it may retain a brokerage firm, bank, other financial institution or other appropriate agent to assist in the purchase of Shares, delivery of reports or other administrative aspects of the Plan. If the Administrator so elects, each Participant shall (unless prohibited by applicable law) be deemed upon enrollment in the Plan to have authorized the establishment of an account on his or her behalf at such institution. Shares purchased by a Participant under the Plan shall be held in the account in the Participant’s name, or if the Participant so indicates in the enrollment form, in the Participant’s name together with the name of one or more other persons in joint tenancy with right of survivorship or in tenancy by the entireties or as spousal community property, or in such forms of trust as may be approved by the Administrator, to the extent permitted by law.

 

9

 

11.4                               Costs. All costs and expenses incurred in administering the Plan shall be paid by the Company or Participating Subsidiaries, including any brokerage fees on the purchased Shares; excepting that any stamp duties, transfer taxes, fees to issue stock certificates, and any brokerage fees on the sale price applicable to participation in the Plan after the initial purchase of the Shares on the Purchase Date shall be charged to the Account or brokerage account of such Participant.

 

11.5                               Equal Rights and Privileges. All Eligible Employees shall have equal rights and privileges with respect to the Plan so that the Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 or any successor provision of the Code and the related regulations. Notwithstanding the express terms of the Plan, any provision of the Plan which is inconsistent with Section 423 or any successor provision of the Code shall without further act or amendment by the Company or the Board be reformed to comply with the requirements of Code Section 423. This Section 11.5 shall take precedence over all other provisions in the Plan.

 

11.6                               Applicable Law. The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of Delaware.

 

11.7                               Amendment. The Board may amend or modify the Plan at any time; provided, however, that no amendment which would amend or modify (i) the definition of Eligible Employees entitled to participate in the Plan, (ii) the maximum number of Shares reserved for sale and issuance under the Plan pursuant to Section 4.2, (iii) the number, kind and purchase price of the Shares available for purchase in order to permit the enlargement of a Participant’s rights under the Plan pursuant to Section 4.3, (iv) the maximum Fair Market Value option amount that a Participant may be granted in a calendar year under the Plan pursuant to Section 7.4, (v) the Plan in a manner requiring stockholder approval under Code Section 423, or (vi) the requirements of any securities exchange on which the Shares are traded shall be effective unless, within one (1) year after it is adopted by the Board, it is approved by ordinary resolution of the shareholders of the Company in general meeting. In addition, the Committee (if appointed under Section 3.1) may amend the Plan as provided in Section 3.3, subject to the conditions set forth therein and in this Section 11.7.

 

11.8                               Termination. The Plan will remain in effect until the first to occur of: (i) its termination by the Board, or (ii) the expiry of ten years from the date of adoption of the Plan.

 

11.9                               If the Plan is terminated, the Board may elect to terminate all outstanding options either prior to their expiration or upon completion of the purchase of Shares on the next Purchase Date, or may elect to permit options to expire in accordance with the terms of this Plan (and participation to continue through such expiration dates). If the options are terminated prior to expiration, all funds accumulated in Participants’ Accounts as of the date the options are terminated shall be returned to the Participants as soon as administratively feasible.

 

11.10                        No Right of Employment. Neither the grant nor the exercise of any rights to purchase Shares under this Plan nor anything in this Plan shall impose upon the Company or Participating Subsidiary any obligation to employ or continue to employ any employee. The right of the Company or Participating Subsidiary to terminate any employee shall not be diminished or affected because any rights to purchase Shares have been granted to such employee.

 

11.11                        No Impact on Benefits. Any grant of an option to purchase Shares pursuant to the Plan shall not be considered compensation for purposes of calculating a Participant’s rights under any employee benefit plan that does not specifically require the inclusion of such grant of an option to purchase Shares in calculating benefits.

 

11.12                        Requirements of Law. The Company shall not be required to sell, issue, or deliver any Shares under this Plan if such sale, issuance, or delivery might constitute a violation by the Company or the Participant of any provision of law. Unless a registration statement under the Securities Act is in effect

 

10

 

with respect to the Shares proposed to be delivered under the Plan, the Company shall not be required to issue such Shares if, in the opinion of the Company or its counsel, such issuance would violate the Securities Act. Regardless of whether such Shares have been registered under the Securities Act or registered or qualified under the securities laws of any state, the Company may impose restrictions upon the hypothecation or further sale or transfer of such shares if, in the judgment of the Company or its counsel, such restrictions are necessary or desirable to achieve compliance with the provisions of the Securities Act, the securities laws of any state, or any other law or are otherwise in the best interests of the Company. Any determination by the Company or its counsel in connection with any of the foregoing shall be final and binding on all parties.

 

The Company may, but shall not be obligated to, register or qualify any securities covered by the Plan. The Company shall not be obligated to take any other affirmative action in order to cause the grant or exercise of any right or the issuance, sale, or deliver of Shares pursuant to the exercise of any right to comply with any law.

 

11.13                        Gender. When used herein, masculine terms shall be deemed to include the feminine, except when the context indicates to the contrary.

 

11.14                        Data Protection. The Board, the Committee, and any other person or entity empowered by the Board or the Committee to administer the Plan may process, store, transfer or disclose personal data of the Participants to the extent required for the implementation and administration of the Plan. The Board, the Committee and any other person or entity empowered by the Board or the Committee to administer the Restated Plan shall comply with any applicable data protection laws.

 

11.15                        Withholding of Taxes. The Company or Participating Subsidiary may withhold from any purchase of Shares under this Plan or any sale, transfer or other disposition thereof any local, state, federal or foreign taxes, employment taxes, social taxes or other taxes at such times and from such other amounts as it deems appropriate. The Company or Participating Subsidiary may require the Participant to remit an amount in cash sufficient to satisfy any required withholding amounts to the Company or  Participating Subsidiary, as the case may be.

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00260-of-00352.parquet"}]]