Document:

1999 BARCLAYS BANK PLC DEFERRED COMPENSATION PLAN

 

Exhibit 4.1

1999 Barclays Bank PLC Deferred Compensation Plan

(As Amended and Restated Effective March 1, 2003)

 

 

1999 BARCLAYS BANK PLC

DEFERRED COMPENSATION PLAN

1.  Purpose

     The purpose of the 1999 Barclays Bank PLC Deferred Compensation Plan,
originally adopted effective January 1, 1999, amended and restated effective
December 2001, and as herein amended and restated effective March 1, 2003 is to
provide Participants with an opportunity to defer payment of a portion of Base
Salary and Bonus as a means of saving for their retirement or other purposes.
At all times, this Plan shall be considered entirely unfunded, both for tax
purposes and for purposes of Title I of ERISA. This Plan is maintained
primarily for the purpose of providing deferred compensation for a select group
of management and highly compensated employees, and is therefore not subject to
any of the participation, vesting, funding or fiduciary responsibility
provisions of ERISA.

2.  Definitions

     The following definitions shall be applicable throughout the Plan.

     (a)     “Account” shall mean the Participant’s account established pursuant to
Section 7 of the Plan. An Account will be maintained solely as a bookkeeping
entry by the Employer or Participating Company to evidence unfunded obligations
of the Employer or such Participating Company.

     (b)     “Base Salary” shall mean a Participant’s base pay, before reduction:
(i) for taxes, and (ii) for any before-tax contributions made on the
Participant’s behalf under benefit plans such as the Thrift Savings Plan, and
(iii) pursuant to the Participant’s election of benefits or coverage under a
“cafeteria” plan, as described in Sections 125 or 129 of the Code, or not
included in income under Section 132(f) of the Code.

     (c)     “Beneficiary” shall mean any person (which may include trusts and is
not limited to one person) designated by the Participant in his or her most
recent written Beneficiary designation form filed with the Committee to receive
the benefits specified under the Plan in the event of the Participant’s death.
The spouse of a married Participant shall be required to consent to the
designation of a Beneficiary or Beneficiaries other than such spouse, unless
such spouse cannot be located or the Committee, in its sole and absolute
discretion, determines in a particular case, that it would be appropriate to
waive the spousal consent requirement.

     (d)     “Board” shall mean the Board of Directors of the Employer, or its
duly authorized delegate.

 

 

     (e) “Bonus” shall mean a discretionary award payable under a cash bonus
plan maintained by the Employer or Participating Company or other cash bonus
payable to the Participant as determined by the Employer or Participating
Company in its sole and absolute discretion. “Bonus” shall not include any
severance pay, sign-on bonus, or equity buy-out for cash.

     (f)     “Code” shall mean the U.S. Internal Revenue Code of 1986, as it may be
amended from time to time, as well as regulations promulgated thereunder.

     (g)     “Committee” shall mean such individual(s) as may be designated from
time to time by the Board.

     (h)     “Deferred Amounts” shall mean Base Salary and/or Bonus that
Participants have elected to defer under the Plan and any predecessor plan(s).

     (i)     “Disability” shall mean a disability of a nature and duration that
would qualify a Participant for benefits under the Barclays Bank PLC Long Term
Disability Plan, as amended from time to time, if he or she participated in
such plan.

     (j)     “Employee” shall mean any person employed by the Employer or a
Participating Company on a regular, full-time salaried basis who is paid from a
United States payroll.

     (k)     “Employer” shall mean Barclays Bank PLC, or any U.S. branch or office
thereof.

     (l)     “ERISA” shall mean the U.S. Employee Retirement Income Security Act of
1974, as it may be amended from time to time, as well as regulations
promulgated thereunder.

     (m)     “Fair Market Value” shall mean, on a given date, (i) with respect to
any mutual fund, net asset value as reported in the U.S. edition of The Wall
Street Journal with respect to the date of valuation, and (ii) with respect to
any alternative investment, the value, as determined in good faith by the
Committee or its designee, based on all relevant factors for determining the
fair market value of an investment of such type and nature. In determining
Fair Market Value, the Committee or its designee may rely upon a valuation made
by independent third party appraisers experienced in the valuation of
investments similar to the investment.

     (n)     “Job Elimination” shall mean the elimination of an employee’s position
with the Employer or a Participating Company, as determined by the Committee or
its designee in its sole and absolute discretion in accordance with its
policies.

     (o)     “Participant” shall mean an Employee (i) who (A) is a member of Senior
Management (as defined herein), (B) is a highly compensated Employee, and (C)
is designated by the Committee as eligible to participate in the Plan, and (ii)
who is personally notified of his or her status by the Committee, in writing.

 

 

     (p)     “Participating Company” shall mean a branch or office of the Employer
located in the United States of America or any other branch, office, subsidiary
or affiliate of the Employer located in a state, territory or commonwealth of the United States of
America, excluding Barclays USA Inc. and all of its direct and indirect
subsidiaries.

     (q)     “Plan Year” shall mean the twelve month period beginning each January
1st and ending the following December 31st.

     (r)     “Retirement” or “Retires” (as the context requires) shall mean the
Participant’s termination of employment from the Employer or any subsidiary or
affiliate thereof, after attainment of (i) at least age 55 and completion of a
period of service of at least ten years, or (ii) at least age 65 with a period
of service of at least five years

     (s)     “Senior Management” shall mean any Employee who holds the title of
Director or above with the Employer or a Participating Company.

     (t)     “Trust” shall mean any trust or trusts established or designated by
the Employer to hold assets in connection with the Plan; provided, however,
that the assets of such trusts shall remain subject to the claims of the
general creditors of the Employer or Participating Company, as applicable, to
the extent required by law, such that they will not be taxable to Participants
or Beneficiaries until actually paid therefrom. Notwithstanding anything
herein to the contrary, any trust or trusts designated to hold assets in
connection with the Plan also may hold assets previously deferred under any
predecessor plan or assets previously deferred under other deferred
compensation plans of the Employer or any Participating Company or the
affiliate or any predecessor of either.

3.  Effective Date and Duration of the Plan

     The Plan shall remain in effect from January 1, 1999 until such time as it
may be terminated by the Employer. In the event that the Plan is terminated,
Deferred Amounts will be paid in accordance with distribution elections made
under Section 6 of the Plan or an earlier date or dates as determined at the
sole and absolute discretion of the Committee. The offering with respect to
the 2003 Plan Year and all subsequent offerings shall be governed exclusively
by the provisions of this Plan as amended and restated effective March 1, 2003.
Offerings for Plan Years prior to 2003 shall be governed by the provisions of
this Plan as in effect at the time of the offering, except that on or after
March 1, 2003, earnings on pre-2003 Deferred Amounts shall be governed solely
by the provisions of Section 7 of this Plan as amended and restated effective
March 1, 2003. In addition, distribution options in effect when deferral
elections under the 1998 and all prior offerings were made shall continue to be
honored with respect to any and all accounts outstanding as of December 31,
1998 under this and any predecessor plan(s) that were converted into
Participant Accounts hereunder effective January 1, 1999.

4.  Administration

 

 

     (a)     The Plan shall be administered by the Committee (subject to the
ability of the Board to restrict the Committee), which shall administer the
Plan in accordance with its terms. The Committee shall have all powers
necessary to accomplish such purpose, including the power and authority to
construe and interpret the Plan, to define the terms used herein, to prescribe,
amend and rescind rules and regulations, agreements, forms, and notices
relating to the administration of the Plan, and to make all other
determinations necessary or advisable for the administration of the Plan. Any
actions of the Committee with respect to the Plan shall be conclusive and
binding upon all persons interested in the Plan. Each of the Board and the
Committee may appoint agents and delegate thereto powers and duties under the
Plan, except as otherwise limited by the Plan.

     (b)     Each officer of the Employer or any Participating Company and each
Committee member shall be entitled, in good faith, to rely or act upon any
report or other information furnished to him or her by any officer or other
employee of the Employer or any Participating Company or any affiliate, the
Employer’s independent certified public accountants, or any executive
compensation consultant, legal counsel, or other professional retained by the
Employer to assist in the administration of the Plan. To the maximum extent
permitted by law, no officer of the Employer, any Participating Company or
Committee member, nor any person to whom ministerial duties have been
delegated, shall be liable to any person for any action taken or omitted in
good faith in connection with the interpretation and administration of the
Plan.

5.  Eligibility

     Any Employee who is notified that he or she has been designated as an
eligible Participant with respect to a Plan Year may make deferrals under this
Plan with respect to Compensation and Bonus to be earned during such Plan Year.
The Committee will notify each person of his or her eligibility to participate
in the Plan not later than 15 days (or such lesser period as may be practicable
in the circumstances) prior to any deadline for filing an election form.

6.  Election to Defer

     (a)     Timing. An election to defer must be made by a Participant prior to
(i) January 1 of the Plan Year with respect to Base Salary to be earned in such
Plan Year and (ii) August 1 of the Plan Year with respect to annual Bonus to be
awarded with respect to such Plan Year. Notwithstanding the above, newly
hired employees who are advised of their eligibility to participate in the Plan
may submit their deferral elections no later than 30 days following their first
day of employment and such elections will be effective as soon as practicable
after such first day of employment. Once a deferral election form, properly
completed, is received by the Committee, the elections of the Participant
thereon shall be irrevocable; provided, however, that such election shall be
subject to a request for modification pursuant to Section 8 of the Plan.

     (b)     Amount. Participants may elect to defer any portion of Base Salary or
Bonus, if any, to be received with respect to a particular Plan Year, subject
to the requirement that in no event may a Participant’s deferral election
result in a reduction of his or her nondeferred

 

 

compensation for the period to an amount below that necessary to satisfy applicable employment taxes on
deferred and nondeferred compensation, benefit plan withholding amounts, and
income tax withholding for nondeferred compensation. Notwithstanding the
above, the Committee may impose limitations on the amounts permitted to be
deferred and other terms and conditions of deferrals under the Plan, including
minimum and/or maximum periods of deferral. Any such limitations, and other terms and conditions of deferral, shall be set
forth in rules relating to the Plan or election forms, other forms, or
instructions published by the Committee.

     (c)     Election Alternatives. All elections made under this Section 6 shall
include an irrevocable distribution schedule that (i) provides for distribution
in lump sum or in up to ten annual installments and (ii) (A) specifies the
March 31, June 30, September 30 or December 31 on which such payments are to
begin, or (B) indicates that such payments are to begin following Retirement or
Job Elimination; provided, however, that such distribution schedule shall be
subject to a request for modification pursuant to Section 8 of the Plan. A
Participant cannot elect a deferral payment beginning date that would cause
payments to commence sooner than two years following March 31 of the year in
which the Deferred Amounts originally would have been payable. In the event
that there is no valid election by a Participant on file with the Committee,
all deferral payments to such Participant will (x) commence no later than a
Participant’s Retirement and (y) be made in a single lump sum. Payment to a
Participant of his or her Deferred Amounts following his or her Retirement or
Job Elimination will be made as follows: (A) if in the form of a lump sum
payment, no later than 30 days following such Retirement or Job Elimination,
and (B) if in the form of annual installment payments, beginning on the
earliest to occur of March 31, June 30, September 30 or December 31 first
following the expiration of 30 days following such Retirement or Job
Elimination. Notwithstanding the foregoing, earlier distribution of a
Participant’s Accounts shall be made as provided under Section 9 of the Plan.

7.  Participant Accounts

     (a)     Establishment of Accounts. One or more Accounts will be established
for each Participant, as determined by the Committee, into which the Deferred
Amount for each year shall be credited. The amount of Base Salary and Bonus
deferred with respect to each Account will be credited as of the date on which
such amounts would have been paid to the Participant but for the Participant’s
election to defer receipt hereunder, unless otherwise determined by the
Committee. Participant deferrals will be deemed to be invested in one or
more of the hypothetical investments, as provided in Section 7(b) hereof, no
later than five business days following the date of the deferral. The amounts
of hypothetical income and appreciation and depreciation in value of an Account
will be credited and debited to, or otherwise reflected in, such Account from
time to time. Unless otherwise determined by the Committee, amounts credited
to an Account shall be deemed invested in a hypothetical investment as of the
date so credited.

     (b)     Hypothetical Investments. Subject to the provisions of Section 7(c),
amounts credited to an Account shall be deemed to be invested, at the
Participant’s direction, in one or more of such mutual funds as may be
specified from time to time by the Committee, and/or such other investment
vehicles as may be specified from time to time by the Committee. The

 

 

Committee may make available or discontinue any hypothetical mutual fund or other
investment vehicle available to any Participant under the Plan at any time, in
its sole and absolute discretion.

     (c)     Reallocation of Hypothetical Investments. A Participant may
reallocate amounts credited to his or her Account among the available
hypothetical investment vehicles made available to such Participant on a basis determined by the Committee. The
Committee may, in its sole and absolute discretion, restrict allocation or
reallocation by specified Participants into or out of specified investment
vehicles or specify minimum or maximum amounts that may be allocated or
reallocated by Participants.

8.  Distribution in the Event of Unforeseeable Emergency

     The Committee may, in its sole and absolute discretion, make a partial or
total distribution of the amounts in a Participant’s Account(s) or accelerate
the Participant’s distribution schedule upon the Participant’s request and a
demonstration by the Participant of an “unforeseeable emergency”. An
unforeseeable emergency shall mean an unanticipated emergency that is caused by
an event beyond the control of the Participant or Beneficiary and that would
result in severe financial hardship to the individual if early withdrawal were
not permitted. An unforeseeable emergency may result from a sudden and
unexpected illness or accident of the Participant or a dependent (as defined
under Section 152(a) of the Code) of the Participant, loss of a Participant’s
property due to a casualty, or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the
Participant. The circumstances that will constitute an unforeseeable emergency
in any particular case shall be determined by the Committee, in its sole and
absolute discretion. The amount of any such early withdrawal shall be limited
to the amount deemed necessary by the Committee to alleviate or remedy the
Participant’s unforeseeable emergency.

9.  Distribution of Deferred Compensation

     (a)     General. Payout of Deferred Amounts shall be made at the time and in
the form elected by the Participant on his or her deferral election form(s)
with respect to deferrals made, or, in the absence of such an election, in
accordance with Section 6(c) hereof. The Committee shall settle a
Participant’s Account(s), and discharge all of its obligations to pay Deferred
Amounts under the Plan with respect to such Accounts, by payment of cash equal
to the Fair Market Value of the hypothetical amounts credited to the applicable
Account, less taxes required to be withheld. The Committee may set a minimum
amount for each distribution of Deferred Amounts. All amounts needed for a
payment will be deemed withdrawn from the investment vehicle(s) as close in
time as is practicable to the requested payment date. If a Participant has
elected to receive installment payments, unpaid balances will continue to earn
gains or losses based upon the performance of the investment vehicle(s) that
such Participant has designated as his or her hypothetical investment(s).
Notwithstanding any provision of this Plan to the contrary, in the event that
the Committee determines, in its sole and absolute discretion, that the amount
of any benefit (or any balance thereof) is too small to make it
administratively practical to begin or continue paying such benefit in
installments, such benefit (or any balance thereof) may be paid in the form of
a lump sum.

 

 

     (b)     Distribution of Amounts Deferred Under Section 6 of the Plan. Except
as otherwise provided in Sections 9(c) through 9(f) of the Plan, Amounts
deferred by election under Section 6 of the Plan shall be distributed in a lump
sum or in such number of annual installments (not exceeding ten) as irrevocably
elected by the Participant and on the date(s) as the Participant
shall have irrevocably elected in accordance with Section 6 of the Plan,
subject to earlier full or partial distribution as approved by the Committee
upon request under Section 8 of the Plan.

     (c)     Distribution Due to Death. Should a Participant die, the
undistributed amount of such Participant’s Account(s) shall be distributed to
the Participant’s Beneficiary or Beneficiaries. Such distributions shall be
made in accordance with the distribution schedule elected by the Participant,
or, in the sole and absolute discretion of the Committee, may be paid in a lump
sum as soon as practicable following the month in which death occurs.
Beneficiary designations shall be made by the Participant on a form prescribed
by the Committee. The Participant may, at any time, subject to the spousal
consent requirements set forth in Section 1(c) hereof, change or revoke such
designation, which change or revocation shall be effective upon receipt of a
new written beneficiary designation or a written revocation by the Participant
to the Committee. In the event that more than one Beneficiary is designated
and a Beneficiary predeceases the Participant, his share shall be allocated
proportionately among the remaining Beneficiary(ies) surviving the Participant.
If the Participant does not designate a Beneficiary or if no designated
Beneficiary survives the Participant, those portions of the Participant’s
Account(s) remaining unpaid upon the Participant’s death shall be paid to the
Participant’s estate.

     (d)     Distribution Due to Termination of Employment for reasons other than
death, including Disability. In the event of a Participant’s termination of
employment from the Employer or any of its affiliates for reasons other than
death, including Disability, the Committee shall distribute all of such
Participant’s Account(s) either (i) in accordance with the distribution
schedule elected by the Participant or (ii) in the sole and absolute discretion
of the Committee, in a lump sum as soon as practicable following the month in
which such termination of employment occurs.

     (e)     Changes in Laws. The Committee may distribute to the Participant(s)
such portion of their Accounts as the Committee shall determine if the
Committee concludes, in its sole and absolute discretion, that events such as
changes in the federal tax laws or applicable accounting principles or
practices have rendered continued deferral of the Deferred Amount(s)
undesirable either for the Employer, a Participating Company, or the
Participant(s).

     (f)     Incapacity of Participant or Beneficiary. If the Committee determines
that a Participant or Beneficiary is unable to care for his or her affairs and
a legal representative has not been appointed for such person, the Committee
may, in its sole and absolute discretion (i) suspend payment to such
Participant or Beneficiary until such legal representative is appointed, or
(ii) direct that any benefits payable hereunder shall be paid to the spouse,
child, parent or other blood relative of such Participant or Beneficiary, or
(if and as recognized by the state of domicile of the Participant or
Beneficiary) to the domestic partner of such Participant or Beneficiary, or to
any other person or entity, so long as such payment is permitted under
applicable law and

 

 

discharges completely all liability of the Employer and any
Participating Company under the Plan to such Participant or Beneficiary.

10.  Miscellaneous

     (a)     No Reserve or Trust Required. Nothing contained in the Plan shall
require the Employer or other Participating Company to segregate any funds for
purposes relating to the Plan, or to create any trust or make any special
deposit in respect of, any amount payable under the Plan to any Participant or
group of Participants. All credits to a Participant’s Account shall be made
only in the records of the Employer or other Participating Company. All
amounts becoming payable under the Plan shall be payable as general unsecured
liabilities of the Employer or other Participating Company to be paid out of
the general funds of the applicable Employer or other Participating Company.
Participants have the status of general unsecured creditors of the
Participating Company and the Plan constitutes a mere promise by the
Participating Company to make payments in the future. Notwithstanding the
above, the Employer or any Participating Company may, in its sole and absolute
discretion, establish one or more Trusts (including sub-accounts under such
Trust(s)), and deposit therein cash or other property in amounts not exceeding
the amount of the Employer or such Participating Company’s obligations with
respect to one or more Participants’ Accounts established under Section 7 of
the Plan.

     (b)     No Right to Assign. Other than by will, the laws of descent and
distribution, or by appointing a Beneficiary, no right, title or interest of
any kind in the Plan shall be transferable or assignable by a Participant (or
his or her Beneficiary) or be subject to alienation, anticipation, encumbrance,
garnishment, attachment, levy, execution or other legal or equitable process,
nor be subject to the debts, contracts, liabilities or engagements, or torts of
any Participant or his or her Beneficiary. Any attempt to alienate, sell,
transfer, assign, pledge, garnish, attach or take any other action subject to
legal or equitable process or encumber or dispose of any interest in the Plan
shall be void.

     (c)     No Employment Rights Conferred. Nothing contained in the Plan shall
(i) confer upon any Participant any right with respect to continuation of
employment with the Company or any Participating Company, (ii) interfere in any
way with the right of the Company or any Participating Company to terminate the
Participant’s employment at any time, or (iii) confer upon any Participant or
other person any claim or right to any distribution under the Plan except in
accordance with its terms.

     (d)     Indemnification. To the extent permitted by law, the Employer or
other Participating Company shall indemnify any employee or any director of a
Participating Company, or his or her heirs and legal representatives, against
all liability and reasonable expenses, including counsel fees, amounts paid in
settlement and amounts of judgments, fines or penalties, incurred or imposed
upon him or her in connection with any claim, action, suit or proceeding,
whether civil, criminal, administrative or investigative, arising from any act
or omission in connection with his or her duties with respect to this Plan,
provided that such act or omission does not constitute gross negligence or
willful misconduct.

 

 

     (e)     Choice of Law. This Plan and the Participant’s participation and
deferral election agreement (or any form that the Committee may prescribe in
order for a Participant to defer compensation) shall be interpreted and applied
in accordance with the laws of the State of New York, without regard to
conflicts of law principles, except to the extent superseded by applicable
federal law.

     (f)     Statements. The Committee will furnish statements to each Participant
reflecting the amount credited to a Participant’s Accounts and transactions
therein from time to time and not less frequently than once each calendar year.

     (g)     Receipt and Release. Payments (in any form) to any Participant or
Beneficiary (or any legal representative thereof) in accordance with the
provisions of the Plan shall, to the extent thereof, be in full satisfaction of
all claims for the awards or other compensation deferred and relating to the
Deferred Amount and/or any Account to which the payments relate against the
Employer or any Participating Company or the Committee, and the Employer may
require such Participant or Beneficiary (or any legal representative thereof),
as a condition to such payments, to execute a receipt and release to such
effect.

     (h)     Tax Withholding. The Employer and any Participating Company shall
have the right to deduct from amounts otherwise payable in settlement of a
Deferred Amount or Account any sums that federal, state, local or foreign tax
law requires to be withheld with respect to such payment.

     (i)     Offset. Notwithstanding anything contained herein to the contrary,
the Employer or any Participating Company, in its sole and absolute discretion,
may offset from the payment or payments otherwise to be made to any Participant
of any benefit hereunder, an amount equal to any indebtedness or liability to
the Employer or such Participating Company by such Participant existing at the
time of such distribution, including, without limitation, any amount arising
out of conversion or wrongful misappropriation of the property of the Employer
or such Participating Company by such Participant.

11.  Amendment and Termination

     The Committee and/or the Board may from time to time amend, suspend or
terminate the Plan, except that no amendment, suspension or termination may,
without his or her consent, adversely affect the Account(s) of any Participant
as it (or they) existed on the effective date of such amendment, suspension or
termination.U.S. SENIOR MANAGEMENT DEFERRED COMPENSATION PLAN

 

Exhibit 4.1

Barclays Bank PLC

U.S. Senior Management

Deferred Compensation Plan

	 	 	 
	Purpose	 	Barclays Bank PLC, a public limited company organized under
the laws of England and Wales (the “Company”), wishes to
provide an arrangement to permit certain senior executives to
defer their compensation for retirement or other purposes and
to receive notional investment returns measured by highly
speculative investments. To further these objectives, the
Company hereby sets forth the Barclays Bank PLC Senior
Management Deferred Compensation Plan (the “Plan”), effective
as of February 10, 2004 (the “Effective Date”). Under this
Plan, the Administrator will permit participating individuals
to defer part of their Salary or Bonus (“Deferrals”) under
the Plan.
	 
	Participants	 	The Administrator will select the senior executives who are
eligible for participation in this Plan. Unless the
Administrator determines otherwise, persons eligible under
this Plan will be the Company’s Managing Directors. Eligible
individuals become “Participants” when the Administrator
permits Deferrals or accepts Assumed Obligations by such
persons. Neither the existence of this Plan nor any person’s
participation in it creates any obligation to continue that
person as a Participant.
	 
	 	 	This Plan is an unfunded plan maintained primarily for the
purpose of retaining key employees by providing deferred
compensation for a select group of management and/or
highly-compensated employees. Such plans are described in
Sections 201(2), 301(a)(3), and 401(a)(1) of the Employee
Retirement Income Security Act of 1974 (“ERISA”), and this
Plan must be interpreted and administered in a manner
consistent with that intent.
	 
	 	 	If a Participant’s participation in the Plan ends for
any reason but he or she remains employed by the
Company, an Eligible Affiliate, or a successor
employer, his or her distribution rights will continue
to be covered by the terms of the Plan and all other
terms of the Plan will continue to apply to his or her
Account. The Administrator may make a distribution in
its sole discretion in this or any other situation if
it determines holding such Account could undermine the
intended treatment of this Plan under ERISA.

 

 

	 	 	 	 
	 	 	 	“Employee” means any person the Company or a
Participating Affiliate employs on a regular, full-time
salaried basis who is paid from a United States
payroll.
	 
	Deferrals	 	The Administrator may permit Participants to defer a
portion of their Bonuses (and/or Salary) for any
Fiscal Year to the Plan. (The “Fiscal Year” is the
Company’s annual accounting year ending as of December
31.) The Deferral elections will be irrevocable
(subject to Deferral Modification below). Deferral
amounts are fully vested when made.
	 
	 	Election Timing	 	The Participant must enter into the election before
the period of time in which he or she earns the
deferred compensation and in accordance with
procedures the Administrator establishes. Except as
the Administrator otherwise provides, the deadline for
Deferral election (i) for Salary is December 31 of the
year preceding the year in which the Participant earns
the Salary and (ii) for Bonuses is August 1 of the
year preceding the Fiscal Year in which the
Participant may receive a discretionary Bonus. As
soon as practicable after the date on which the
deferred amounts would otherwise have been paid to the
Participant, the Company will credit the Deferrals to
the Participant’s Account (with notional earnings and
losses beginning only after further designation of
Notional Investments).
	 
	 	 	 	Newly eligible Employees may elect to participate by
completing a deferral election form provided by the
Administrator. If such Employee fails to return a
completed deferral election form by the 30th day
following notification of eligibility to participate
(or such other earlier deadline as the Administrator
may determine), the Employee will be treated as having
elected not to defer any compensation under this Plan
for that Fiscal Year. Elections from newly eligible
Employees will apply to compensation (including
guaranteed Bonuses) earned after the date of election.
	 
	 	 	 	In the sole discretion of the Administrator, this Plan
may assume responsibility for Deferrals made by
Participants under another deferred compensation plan
(the “Assumed Obligations”). Assumed Obligations are
subject to the elections of Deferrals and distributions
alternatives and payout methods elected under the plans
at which the elections were made.
	 
	 	Salary	 	“Salary” means a Participant’s base pay, before reduction (i) for
taxes, (ii) for any before-tax contributions made on the
Participant’s behalf under benefit plans such as the Barclays Bank

Barclays Bank PLC

U.S. Senior Management

Deferred Compensation Plan

Page 2

 

	 	 	 	 
	 	 	 	PLC Thrift Savings Plan, and (iii) under the
Participant’s election of benefits or coverage under a
“cafeteria” plan, as described in Sections 125 or 129
of the Internal Revenue Code of 1986 (the “Code”) or
not included in income under Section 132(f) of the
Code.
	 
	 	Bonus	 	“Bonus” means a discretionary award payable under the cash
bonus plan of the Company or a Participating Affiliate or other cash
bonus payable to the Participant by the Company or Participating
Affiliate. “Bonus” excludes any severance pay, sign-on bonus, or
equity buy-out for cash.
	 
	 	Limits	 	A Participant’s Deferral may not result in a reduction of his or
her nondeferred compensation for the period to an amount below that
necessary to satisfy applicable employment taxes on deferred and
nondeferred compensation, benefit plan withholding amounts, and
income tax withholding for nondeferred compensation. The
Administrator may impose additional limitations on the Deferral
amounts and other terms and conditions of deferrals under the Plan,
including minimum and/or maximum periods of deferral.
	 
	 	Deferral Modification	 	The Administrator may establish further rules regarding the
amount that any Participant may defer, may expand upon or
further limit the sources or types of the compensation deferred, and
may establish further limitations on Deferrals of Salary and/or
Bonuses, including but not limited to reducing Participants’
deferral percentages and establishing limitations relating to
particular employment positions, compensation levels, or grades of
employees. The Administrator will advise affected Participants in
writing of such rules or limitations applying to them before the
start of any Fiscal Year (except when it considers that timing to be
impractical under the circumstances), and to the extent required,
such changes will override the provisions found in this Plan.
	 
	Accounts	 	The Administrator will establish Accounts for Participants. An
Account is the separate bookkeeping account that the Administrator creates
and maintains to reflect the interests of each Participant, Deferrals from
Salary, and Deferrals from Bonuses, and hypothetical gains, losses,
interest, and dividends allocated to such amounts. An Account will also
reflect any liabilities the Administrator determines the Plan should
assume in connection with any prior or contemporaneous deferred
compensation plan of the Company or any Eligible Affiliate, whether as a
result of acquisition or otherwise, as an Assumed Obligation.

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	 	Earnings/Losses	 	
The Administrator will reflect in the records of an
Account the value of any notional earnings and losses on each
Account under the Notional Investments.
	 
	 	Expenses	 	
Each Account will bear the notional expenses that would apply if
the Participant were able to invest in the Notional Investments
selected for his or her account, as well as an equitable share of
any expenses the Company incurs in administering the Plan.
	 
	Notional Investments	 	
The Administrator will select such mutual funds and other investment vehicles as it considers appropriate
for measuring investment performance (“Notional Investments”) and allow Participants to designate (and,
from time to time, reallocate) the one or more Notional Investments that the Participant requests. The
Administrator may make available or discontinue any Notional Investment at any time, in its sole
discretion. Notional Investments will be used to reflect hypothetical investment returns as soon as
practicable after the Administrator accepts a Participant’s request, taking into account the principles
described in Illiquidity of Notional Investments below. The Administrator may, in its sole discretion,
restrict allocations or reallocations by some or all Participants into or out of specific Notional
Investments and specify other rules, including frequency and minimum and maximum amounts for allocation or
reallocation.
	 
	 	Illiquidity of Notional Investments	 	
Because the Administrator expects to make available Notional
Investments that may provide greater risk and return than have
previously been available to Participants, the Administrator
may delay any distribution to coincide with any restrictions that
third party investment vehicles would have required if the
Participant had been able to invest directly in the vehicle (or, if
more restrictive, any timing restrictions actually imposed by the
investment vehicle on any investment by the Company). As a
condition to electing any Notional Investment that provides
liquidity less frequently than daily, Participants must agree to the
possible delay in payment.
	 
	Distributions	 	 
	 
	 	General Rule	 	
Unless earlier distributable under another provision of the
Plan, the Participant’s Account will be distributed according to the
Participant’s elected distribution date and method. The Participant
may elect a distribution commencement date that is either a date in
the year following the Participant’s Retirement or no earlier than
two years following March 31 of the year in with the Participant

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	 	 	 	would have otherwise received the Salary or Bonus.
Distributions (and installment payments) will be made
only on or around March 31, June 30, September 30, or
December 31, except as provided under Illiquidity of
Notional Investments. If the Participants fails to
make a valid election of distribution method, the
Administrator will provide for payment no later than 30
days following Retirement or Job Elimination (or, if in
the form of annual installments, the first March 31,
June 30, September 30, or December 31, following such
30th day).
	 
	 	Retirement	 	A Participant may elect, when making the Deferral election, to
have benefits paid on Retirement rather than at a fixed future date.
“Retirement” or “retired” refer to a person’s leaving employment
with the Company and all Eligible Affiliates at or after reaching
(i) age 55 with a 10 year period of service or (ii) 65 with a five
year period of service. “Periods of service” refer to the time
elapsed from date of employment through the date used above, without
reduction for authorized leaves of absence.
	 
	 	Job Elimination	 	
A Participant may elect, when making the Deferral
election, to have benefits paid on Job Elimination rather than at a
fixed future date. For this purpose, “Job Elimination” means the
elimination of an employee’s position with the Company and all
Eligible Affiliates, as the Administrator (or its designee)
determines in its sole and absolute discretion in accordance with
its policies.
	 
	 	Death	 	
The Participant’s Account balance (if any) will be
distributed as a lump sum payment to his or her Beneficiary or
estate within 120 days after confirmation of the Participant’s
death, notwithstanding any prior election the Participant made to
defer distribution, unless the Participant has specified a different
permissible schedule for payments on death. The following rules
apply to distributions if a Participant dies:
	 
	 	 	 	 	
The Administrator will only direct a distribution
after it receives such evidence of the
Participant’s death and of the right of any
Beneficiary to receive payment as the
Administrator considers necessary.
	 
	 	 	 	 	
The Participant may designate one or more
beneficiaries (the “Beneficiaries”) to receive a
distribution payable under the preceding
paragraph and may revoke or change such a
designation at any time. If and to the extent
applicable law requires, the spouse of a married
Participant

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must consent to the designation of any
Beneficiary other than the spouse, unless the
spouse cannot be located or the Administrator, in
its sole and absolute discretion, determines in a
particular case, that it would be appropriate to
waive the spousal consent requirement. Subject to
the spousal consent requirement, a Participant
may designate any natural or legal person or
persons as Beneficiary, including a fiduciary
such as a trustee of a trust or the legal
representative of an estate. If a Participant
designates two or more Beneficiaries,
distribution to them will be in such proportions
as the Participant specifies or, if none are
specified, in equal shares. Any designation of
Beneficiary will be in writing on such form as
the Administrator may prescribe or consider
acceptable and will be effective upon filing with
the Administrator.
	 
	 	 	 	 	
Any amount payable upon the death of a
Participant that is not distributed pursuant to a
designation of beneficiary under the preceding
paragraph, for any reason whatsoever, will be
paid to the Participant’s estate.
	 
	 	 	 	 	
The Administrator may make a distribution upon a
Participant’s death in accordance with a prior
designation of beneficiary (and will be fully
protected in so doing) if such distribution (i)
is made before a later designation is received or
(ii) is due to the Administrator’s inability to
verify the authenticity of a later designation.
Such a distribution will discharge the Company
and Administrator of all liability under this
Plan for the amount distributed.
	 
	 	Disability	 	
The Participant’s Account balance (if any) will be distributed
as a lump sum payment to him or her (or to a duly appointed guardian
or representative), within 120 days after confirmation of the
Participant’s Disability, notwithstanding any prior election the
Participant made to defer distribution. The following rules apply
to distributions if a Participant suffers a Disability:
	 
	 	 	 	 	
The Administrator will only direct a distribution
after it receives such evidence of the
Participant’s Disability as the Administrator
considers necessary.

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“Disability” means an incapacity of a nature and
duration that would qualify a Participant for
benefits under the Barclays Bank PLC Long Term
Disability Plan if he or she participated in such
plan.
	 
	 	Form and Timing	 	
Distributions from the Plan will be in the form of
cash (unless the Administrator determines otherwise).
	 
	 	 	 	
A Participant may elect to receive distributable
amounts in either a single payment on an elected
distribution date or in a series of up to ten annual
installments, payable on such date and on each
subsequent anniversary of such date for the total
number of installment years elected. Annual
installments will be paid in an amount, less applicable
withholding taxes, determined by multiplying the total
amount distributable by a fraction, the numerator of
which is one and the denominator of which is the number
of remaining unpaid annual installments.
	 
	 	 	 	
If a Participant remains employed by the Company or an
Eligible Affiliate, until an elected distribution date,
amounts will be distributed, pursuant to his election,
in either a single distribution on such date or in
installment payments that commence on that date and
then continue to be made on the anniversary of that
date for the duration of the installment period, unless
accelerated in accordance with the terms of this Plan.
	 
	 	Acceleration of Distribution; Hardship	 	
If a Participant has a serious Financial Hardship, he or she may
apply to the Administrator for an accelerated distribution from
the Plan. If the Administrator approves the hardship
distribution, the Plan will make the distribution as soon as
possible after the later of the date the Participant specified in
his or her request or the date the Administrator approves the
distribution. The amount of the distribution will be the amount
needed to alleviate the Participant’s Financial Hardship, as
determined by the Administrator, up to a maximum of the
Participant’s interest in his or her Account. Such a distribution
will be made from the Participant’s Account in a single lump-sum
distribution.
	 
	 	 	 	“Financial Hardship” will be limited to the following:
bankruptcy or impending bankruptcy of the Participant,
unexpected and unreimbursed major expenses resulting
from illness to person or accident to person (including
the Participant, spouse and/or dependents) or property
of the Participant and/or spouse, and other types of
unexpected and unreimbursed expenses

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of a major nature that normally would not be
budgetable. Financial hardship will not include
expenses such as down payments on a home or purchase of
an auto, cost of travel, vacation, college education,
or the like.
	 
	 	Incapacity; Unclaimed Benefits	 	
If the Administrator determines that a Participant or Beneficiary is
unable to care for his or her affairs and a legal
representative has not been appointed for such person, the
Administrator may, in its sole and absolute discretion (i) suspend
payment to such Participant or Beneficiary until such legal
representative is appointed, or (ii) direct that any benefits
payable will be paid to the spouse, child, parent or other blood
relative of such Participant or Beneficiary, or (if and as
recognized by the state of domicile of the Participant or
Beneficiary) to the domestic partner of such Participant or
Beneficiary, or to any other person or entity, so long as applicable
law permits such payment and discharges completely all liability of
the Company and any Participating Affiliate under the Plan to such
Participant or Beneficiary. Furthermore, the Administrator may, in
its sole discretion, direct that payments due to a Beneficiary who
is a minor may be paid instead to the person who is the minor’s
guardian or has custody of the minor.
	 
	 	 	 	
If, after diligent and documented efforts, the
Administrator cannot locate a Participant or the
Beneficiaries to whom the Plan should make payments,
the Account so payable will be forfeited.
	 
	Administrator	 	
The Administrator will be the [Pension\Thrift] Committee of the
New York branch of the Company.
	 
	 	 	 	
The Administrator is responsible for the general
operation and administration of this Plan and for
carrying out its provisions and has full discretion in
interpreting and administering the provisions of the
Plan. The Administrator’s determinations under the Plan
need not be uniform and need not consider whether
possible recipients are similarly situated. No member
of the Administrator may vote or act on any matter that
relates exclusively to himself/herself as a
Participant.
	 
	 	 	 	
The Administrator’s powers will include, but not be
limited to, the power to amend, waive, or extend any
provision or limitation under this Plan. The
Administrator may act through meetings of a majority of
its members or by unanimous consent.
	 
	Agreements	 	
Deferral Agreements will set forth the terms of participation in
Deferrals and will include such terms and conditions, consistent

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with this Plan, as the Administrator may determine are
necessary or advisable. To the extent a Deferral
Agreement contains any provision that contradicts any
provision of this Plan, the terms of the provision of
this Plan supersede the contradictory provision of the
Deferral Agreement. The Deferral Agreements may
contain special rules.
	 
	 	Fair Market Value	 	
“Fair Market Value” of a Notional Investment under the Plan, on
a given date, will be as follows: (i) with respect to any
mutual fund, net asset value as reported in the U.S. edition of The
Wall Street Journal with respect to the date of valuation, and (ii)
with respect to any alternative investment, the value, as determined
in good faith by the Administrator or its designee, based on all
relevant factors for determining the fair market value of an
investment of such type and nature. The Administrator will
determine the Fair Market Value for purposes of the Plan using any
measure of value it determines in good faith to be appropriate,
consistent the preceding sentence. In determining Fair Market
Value, the Administrator or its designee may rely upon a valuation
made by independent third party appraisers experienced in the
valuation of investments similar to the investment or may, as it
considers appropriate, rely on third party determinations of value
by the managing member, general partner, or investment manager of an
investment vehicle used as a Notional Investment. For Notional
Investments in hedge funds, the Administrator will, unless it
determines some other treatment is appropriate, use the value quoted
in the hedge fund’s most recent monthly statement preceding the date
as of which the Administrator determines value.
	 
	 	 	 	
The Administrator has sole discretion to determine the
Fair Market Value for purposes of this Plan, and all
benefits under this Plan are conditioned on the
Participants’ agreement that the Administrator’s
determination is conclusive and binding even though
others might make a different and also reasonable
determination.
	 
	Affiliate Employees	 	
Employees of Participating Affiliates will be entitled to participate
in the Plan if they otherwise qualify and if the Administrator selects them. “Participating Affiliate” means any
Eligible Affiliate other than those the Administrator specifies. “Eligible Affiliate” means a branch or office of
the Company located in the United States of America or any other branch, office, subsidiary, or affiliate of the
Company located in a state, territory or commonwealth of the United States of America, excluding Barclays USA Inc.
and all of its direct and indirect subsidiaries.

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	Legal Compliance	 	
No provision in the Plan or action taken under it authorizes any
action that Federal or state laws otherwise prohibit.
	 
	 	 	
This Plan is intended to conform to the extent
necessary with all provisions of the Securities Act of
1933 (“Securities Act”) and the Securities Exchange Act
of 1934 and all regulations and rules the Securities
and Exchange Commission issues under those laws.
Notwithstanding anything in the Plan to the contrary,
the Administrator must administer the Plan only in a
way that conforms to such laws, rules, and regulations.
To the extent permitted by applicable law, the Plan
will be treated as amended to the extent necessary to
conform to such laws, rules, and regulations.
	 
	Tax Withholding	 	
The Participant must satisfy all applicable foreign, Federal, state, and local income and employment tax
withholding requirements before or at the same time as the Company makes any Payments. The Company may decide
to satisfy the withholding obligations through additional withholding on salary or wages. If the Company does
not or cannot withhold from other compensation, the Participant must pay the Company, with a cashier’s check or
certified check, the full amounts, if any, required for withholding.
	 
	Transfers, Assignments, and Pledges, and Offsets	 	
No interest in a Participant’s Account or any payments due under
the Plan may be assigned, pledged, or otherwise transferred in any
way, whether by operation of law or otherwise or through any legal
or equitable proceedings (including bankruptcy), by the Participant (or
any Beneficiary) to any person, except by will or by operation of
applicable laws of descent and distribution. Other than by will, the laws
of inheritance, or by appointment of a Beneficiary, no right under the
Plan is subject to anticipation, attachment, lien, claim, liability,
encumbrance, or obligation by or with respect to any Participant, except
as the law otherwise requires, nor be subject to the debts, contracts,
liabilities or engagements, or torts of any Participant or his or her
Beneficiary. Any attempt to alienate, sell, transfer, assign, pledge,
garnish, attach or take any other action subject to legal or equitable
process or encumber or dispose of any interest in the Plan shall be void.
	 
	 	 	
The Company may reduce any payments due under this Plan
by the amount, if any, the Participant owes to the
Company or any Eligible Affiliate, including, without
limitation, any amount arising

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out of the Participant’s conversion or wrongful
misappropriation of the Company’s or its Affiliates’
property.
	 
	Assets	 	
The Plan is an unfunded plan. The Company will pay benefits payable
under this Plan to a Participant or his Beneficiary directly from its
general assets, and Participants will be treated only as general unsecured
creditors of the Company. Neither the Company nor any Participating
Affiliate is required to fund, or otherwise segregate assets to be used
for payment or benefits under the Plan. Notwithstanding the foregoing,
the Company and the Participating Affiliates, in the Administrator’s
discretion, may maintain one or more grantor trusts (“Trust”) of which the
applicable employer is treated as the owner under Section 671 of the Code
to provide for the payment of benefits under the Plan, subject to such
terms and conditions as the Administrator may consider necessary or
advisable to ensure that benefits are not includible, by reason of such
Trust, in the taxable income of any Participant (or Beneficiary) and that
existence of such a Trust does not cause the Plan to be considered
“funded” for purposes of Title I of ERISA. Any trust or trusts designated
to hold assets in connection with the Plan also may hold assets previously
deferred under any predecessor plan or assets previously deferred under
other deferred compensation plans of the Company or any Participating
Affiliate or the affiliate or any predecessor of either.
	 
	 	 	
Any payment by a Trust of benefits provided to a
Participant under the Plan will be considered payment
by the Company or applicable Participating Affiliate
and will discharge the Company and the Participating
Affiliates from any further liability under the Plan
for such payments.
	 
	Amendment or Termination of Plan and Deferrals	 	
The Board of Directors of the Company (the “Board”) may amend,
suspend, or terminate the Plan at any time, without the consent of
the Participants or their Beneficiaries. Except as required by law
or under Acceleration of Payments, the Administrator may not,
without the Participant’s or Beneficiary’s consent, modify
the terms and conditions of participation under the Plan so
as to adversely affect the Participant.
	 
	Acceleration of Payments	 	
Notwithstanding anything to the contrary set forth in this Plan, the
Administrator will have the right, in its sole discretion and
without the consent of any Participant, to accelerate the
payment of all or a portion of a Participant’s Account for
any reason the Administrator may determine to be appropriate
(for example, the termination of

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the Plan, changes in tax laws or applicable accounting principles, or the Administrator’s determination that remaining installments
are too small for it to be administratively practical to continue (or begin) making installment payments)). The Administrator will
have the authority, but no obligation, to cause any such acceleration under those circumstances.
	 
	Required Release	 	
Participants must agree (for themselves and any Beneficiaries) that payments in accordance with the Plan’s
provisions will fully satisfy all claims for the awards or other compensation deferred and relating to the
Deferrals and/or any Account to which the payments relate against the Company or any Participating
Affiliate or the Administrator. The Administrator or the Company may require such Participant or
Beneficiary (or any legal representative thereof), as a condition to such payments, to execute a receipt
and release to such effect.
	 
	Effect on Other Plans	 	
Whether participating in this Plan causes the Participant to accrue
or receive additional benefits under any pension or other plan is governed solely by the terms of such
other plan.
	 
	Limitations on Liability	 	
Notwithstanding any other provisions of the Plan, no individual
acting as a director, officer, other employee, or agent of the Company shall be liable to any Participant,
former Participant, spouse, beneficiary, or any other person for any claim, loss, liability, or expense
incurred in connection with the Plan, nor shall such individual be personally liable because of any
contract or other instrument he executes in such other capacity. The Company will indemnify and hold
harmless each director, officer, other employee, or agent of the Company to whom any duty or power
relating to the administration or interpretation of the Plan has been or will be delegated, against any
cost or expense (including attorneys’ fees) or liability (including any sum paid in settlement of a claim
with the Board’s approval) arising out of any act or omission to act concerning this Plan unless arising
out of such person’s gross negligence or willful misconduct.
	 
	Data Collection	 	
The Administrator will keep (or arrange for the keeping of) all data, records, books of account and
instruments pertaining to Plan administration. Each Eligible Affiliate will supply all information the
Administrator requires to administer the Plan with respect to Participants employed by it, and the
Administrator may rely upon the accuracy of such information.

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	No Employment Contract	 	
Nothing contained in this Plan constitutes an employment contract
between the Company and the Participants. The Plan does not give any Participant any right to be retained
in the Company’s employ, nor does it enlarge or diminish the Company’s right to end the Participant’s
employment or other relationship with the Company.
	 
	Applicable Law	 	
The laws of the State of New York (other than its choice of law provisions) govern this Plan and its
interpretation.

 

 

 

 

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