Document:

Exhibit 10.3

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (this “Agreement”) is made effective as of                , 2017 (the “Effective Date”) by and between (i) Ardagh Group S.A., a limited liability company incorporated under the laws of Luxembourg (the “Company”), and (ii)                             , a director, officer or key employee of the Company or one of the Company’s subsidiaries or other service provider who satisfies the definition of Indemnifiable Person set forth below (“Indemnitee”).

 

RECITALS

 

A.                                    The Company is aware that competent and experienced persons are increasingly reluctant to serve as representatives of corporations unless they are protected by comprehensive liability insurance and indemnification, due to increased exposure to litigation costs and risks resulting from their service to such corporations, and due to the fact that the exposure frequently bears no relationship to the compensation of such representatives;

 

B.                                    The members of the Board of Directors of the Company (the “Board”) have concluded that to retain and attract talented and experienced individuals to serve as representatives of the Company and its Subsidiaries and Affiliates (each as defined below) and to encourage such individuals to take the business risks necessary for the success of the Company and its Subsidiaries and Affiliates, it is necessary for the Company to contractually indemnify certain of its representatives and the representatives of its Subsidiaries and Affiliates, and to assume for itself maximum liability for Expenses and Other Liabilities (each as defined below) in connection with claims against such representatives in connection with their service to the Company and its Subsidiaries and Affiliates;

 

C.                                    The articles of association (the “Articles”) of the Company and Luxembourg law, by their non-exclusive nature, permit contracts between the Company and its directors, officers, employees, controlling persons, agents or fiduciaries with respect to indemnification of such directors, officers, employees, controlling persons, agents or fiduciaries; and

 

D.                                    The Company desires and has requested Indemnitee to serve or continue to serve as a representative of the Company and/or the Subsidiaries or Affiliates of the Company free from undue concern about inappropriate claims for damages arising out of or related to such service to the Company and/or the Subsidiaries or Affiliates of the Company.

 

AGREEMENT

 

Now, therefore, the parties hereto, intending to be legally bound, hereby agree as follows:

 

Section 1.                                           Definitions.

 

(a)                                 “Affiliate” means any corporation, partnership, limited liability company, joint venture, trust or other enterprise in respect of which Indemnitee is, was or will be serving as a director, officer, trustee, manager, member, partner, employee, agent, attorney, consultant, member of the entity’s governing body (whether constituted as a board of directors, board of managers, general partner or otherwise), fiduciary, or in any other similar capacity at the request,

 

 

election or direction of the Company, and including, but not limited to, any employee benefit plan of the Company or a Subsidiary or Affiliate of the Company.

 

(b)                                 “Change in Control” means (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the U.S. Securities Exchange Act of 1934, as amended), other than a Subsidiary or a trustee or other fiduciary holding securities under an employee benefit plan of the Company or Subsidiary, becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 20% or more of the total voting power represented by the Company’s then outstanding capital stock; (ii) during any period of two (2) consecutive years, individuals who at the beginning of such period constitute the Board and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation that would result in the outstanding capital stock of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into capital stock of the surviving entity) at least 80% of the total voting power represented by the capital stock of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company (in one transaction or a series of transactions) of all or substantially all of the Company’s assets.

 

(c)                                  “Determination” means a determination that either (i) there is a reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee met a particular standard of conduct (a “Favorable Determination”) or (ii) there is no reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee met a particular standard of conduct (an “Adverse Determination”).  An Adverse Determination shall include the decision that a Determination was required in connection with indemnification and the decision as to the applicable standard of conduct.

 

(d)                                 “Expenses” means all reasonable direct and indirect costs, expenses, fees and charges of any type or nature whatsoever (including, without limitation, all attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and related disbursements, and other out-of-pocket costs), paid or incurred by Indemnitee in connection with (i) the investigation, defense or appeal of, or being a witness in a Proceeding (as defined below), including, without limitation, the premium, security for, and other costs relating to any costs bond, supersedes bond, or other appeal bond or its equivalent; (ii) establishing or enforcing a right to indemnification under this Agreement, Luxembourg law or otherwise; (iii) any U.S. or non-U.S. federal, national, state, provincial, local or similar taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement (on a grossed up basis); or (iv) any interest, assessment or other charges in respect of the foregoing; provided, however, that Expenses shall not include any judgments, fines, ERISA or other benefit plan

 

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related excise taxes  or penalties or amounts paid in settlement (other than those approved in accordance with Section 8(d) herein) of a Proceeding.

 

(e)                                  “Indemnifiable Event” means any event or occurrence related to (i) the fact that Indemnitee is or was an Indemnifiable Person, whether or not serving in such capacity at the time any Expense or Other Liability is incurred, or (ii) any actual or alleged action on Indemnitee’s part while acting in the service for the Company, any Subsidiary or Affiliate of the Company, or another person at the request of the Company as an Indemnifiable Person (as defined below), or by reason of anything done or not done, or any act or omission, by Indemnitee in any such capacity.

 

(f)                                   “Indemnifiable Person” means any person who is or was a director, officer, trustee, manager, member, partner, employee, attorney, consultant, member of an entity’s governing body (whether constituted as a board of directors, board of managers, general partner or otherwise) or other agent or fiduciary of the Company, a Subsidiary or Affiliate of the Company, or another person at the request of the Company.

 

(g)                                  “Independent Counsel” means legal counsel that has not performed services for the Company or Indemnitee in the five years preceding the time in question and that would not, under applicable standards of professional conduct, have a conflict of interest in representing either the Company or Indemnitee.

 

(h)                                 “Independent Director” means a member of the Board who was not party to the Proceeding (as defined below) for which a claim is made under this Agreement.

 

(i)                                     “Other Liabilities” means any and all liabilities, damages, losses and other amounts incurred by Indemnitee of any type whatsoever (including, but not limited to, judgments, orders, fines, penalties (to the extent permitted by law), liabilities for contribution, ERISA (or other benefit plan related) excise taxes or penalties, and amounts paid in whole or partial settlement and all interest, taxes, assessments and other charges paid or payable in connection with or in respect of any such judgments, orders, fines, penalties (to the extent permitted by law), ERISA (or other benefit plan related) excise taxes or penalties, or amounts paid in whole or partial settlement).

 

(j)                                    “Proceeding” means any threatened, pending or completed action, claim, suit, inquiry or investigation, litigation, administrative hearing or any other actual, threatened or completed judicial, administrative, arbitration or other proceeding (including, without limitation, any such proceeding under the Securities Act of 1933), whether civil, criminal, administrative, investigative, legislative or any other type whatsoever, preliminary, informal or formal, including any arbitration or other alternative dispute resolution and including any appeal of any of the foregoing.

 

(k)                                 “Subsidiary” means any corporation of which more than 50% of the outstanding voting securities is owned directly or indirectly by the Company.

 

Section 2.                                           Agreement to Serve.  The Indemnitee agrees to serve and/or continue to serve as an Indemnifiable Person in the capacity or capacities in which Indemnitee currently serves the Company as an Indemnifiable Person, and any additional capacity in which

 

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Indemnitee may agree to serve, until such time as Indemnitee’s service in a particular capacity shall end according to the terms of an agreement, the Company’s Articles, governing law, or otherwise.  Nothing contained in this Agreement is intended to create any right to continued employment or other form of service for the Company or a Subsidiary or Affiliate of the Company by Indemnitee.

 

Section 3.                                           Mandatory Indemnification.  In the event Indemnitee is a person who was or is a party to or witness in or is threatened to be made a party to or witness or otherwise involved in any Proceeding by reason of an Indemnifiable Event, the Company shall indemnify Indemnitee from and against any and all Expenses and Other Liabilities incurred by Indemnitee in connection with (including in preparation for) such Proceeding to the fullest extent not prohibited by Luxembourg law.

 

Section 4.                                           Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Expenses or Other Liabilities but not entitled, however, to indemnification for the total amount of such Expenses or Other Liabilities, the Company shall nevertheless indemnify Indemnitee for such total amount except as to the portion thereof to which indemnification is prohibited by Luxembourg law.  In any review or Proceeding to determine the extent of indemnification, the Company shall bear the burden to establish, by clear and convincing evidence, the lack of a successful resolution of a particular claim, issue or matter and which amounts sought in indemnity are allocable to claims, issues or matters which were not successfully resolved.

 

Section 5.                                           Exculpation.  The Indemnitee shall not be liable to the Company or its stockholders for monetary damages for breach of fiduciary duty as an Indemnifiable Person to the fullest extent permitted by Luxembourg law.  The foregoing shall not eliminate or limit any liability that may exist with respect to (i) a breach of the Indemnitee’s duty of loyalty to the Company or its stockholders, (ii) acts or omissions not in good faith or which involve fraud, intentional misconduct or a knowing violation of law, (iii) criminal liability or (iv) a transaction from which the Indemnitee derived an improper personal benefit.

 

Section 6.                                           Liability Insurance.  So long as Indemnitee shall continue to serve the Company or a Subsidiary or Affiliate of the Company as an Indemnifiable Person and thereafter so long as Indemnitee shall be subject to any possible claim or threatened, pending or completed Proceeding as a result of an Indemnifiable Event, the Company shall maintain in full force and effect for the benefit of Indemnitee as an insured (i) liability insurance issued by one or more reputable insurers and having the policy amount and deductible deemed appropriate by the Board and providing in all respects coverage at least comparable to and in the same amount as that being provided to the Chairman of the Board, the Chief Executive Officer or Chief Financial Officer of the Company when such insurance is purchased, and (ii) any replacement or substitute policies issued by one or more reputable insurers providing in all respects coverage at least comparable to and in the same amount as that being provided to the Chairman of the Board, the Chief Executive Officer or Chief Financial Officer of the Company when such replacement or substitute policies are purchased.  The purchase, establishment and maintenance of any such insurance or other arrangements shall not in any way limit or affect the rights and obligations of the Company or of Indemnitee under this Agreement, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights and

 

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obligations of the Company or the other party or parties thereto under any such insurance or other arrangement.

 

Section 7.                                           Mandatory Advancement of Expenses.  If requested by Indemnitee, the Company shall advance prior to the final disposition of the Proceeding all Expenses actually incurred by Indemnitee in connection with (including in preparation for) a Proceeding related to an Indemnifiable Event without regard to whether an Adverse Determination has been made.  Indemnitee hereby undertakes to repay such amounts advanced if, and only if and to the extent that, it shall ultimately be determined by a court or arbitral body of competent jurisdiction in a final and nonappealable decision that Indemnitee is not entitled to be indemnified by the Company under the provisions of this Agreement or Luxembourg law.  The advances to be made hereunder shall be paid by the Company to Indemnitee or directly to a third party designated by Indemnitee within ten (10) days following delivery of a written request therefor by Indemnitee to the Company.  Indemnitee’s undertaking to repay any Expenses advanced to Indemnitee hereunder shall be unsecured and shall not be subject to the accrual or payment of any interest thereon.

 

Section 8.                                           Notice and Other Indemnification Procedures.

 

(a)                                 Notification/Cooperation by Indemnitee.  Promptly following the time that Indemnitee has received written notice of the commencement of or the threat of commencement of any Proceeding, Indemnitee shall, if Indemnitee believes that indemnification or advancement of Expenses with respect thereto may be sought from the Company under this Agreement, notify the Company of the commencement or threat of commencement thereof.  However, a failure so to notify the Company promptly following Indemnitee’s receipt of such notice shall not relieve the Company from any liability that it may have to Indemnitee except to the extent that the Company is materially prejudiced in its defense of such Proceeding as a result of such failure, and shall not constitute a waiver by Indemnitee of any rights under this Agreement.  In addition, Indemnitee shall cooperate with, and provide information to, the Company as it may reasonably require and as shall be within Indemnitee’s power.

 

(b)                                 Insurance and Other Matters.  If, at the time of the receipt of a notice of the commencement of a Proceeding pursuant to Section 8(a) above, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such Proceeding to the issuers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all reasonable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such insurance policies.

 

(c)                                  Assumption of Defense.  In the event the Company shall be obligated to advance the Expenses for any Proceeding against Indemnitee, the Company, if deemed appropriate by the Indemnitee in writing, shall assume the defense of such Proceeding as provided herein within ten (10) days of the Company’s receipt of such written notice from Indemnitee.  Such defense by the Company may include the representation of two or more parties by one attorney or law firm as permitted under the ethical rules and legal requirements related to joint representations.  Following delivery of written notice to Indemnitee of the Company’s confirmation to assume the defense of such Proceeding, the approval by Indemnitee

 

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(which approval shall not be unreasonably withheld) of counsel designated by the Company and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees and expenses of counsel subsequently incurred by Indemnitee with respect to the same Proceeding.  If (i) the employment of counsel by Indemnitee has been previously authorized by the Company, (ii) the Company fails to employ counsel to assume and diligently conduct the defense of such Proceeding, or (iii) in the reasonable opinion of legal counsel to Indemnitee, there is a conflict of interest between Indemnitee and the Company (or any other party or parties being jointly represented) or there are legal defenses available to Indemnitee that are not available to the Company (or any other party or parties being jointly represented), the fees and expenses of Indemnitee’s counsel shall be subject to indemnification and/or advancement pursuant to the terms of this Agreement.  Nothing herein shall prevent Indemnitee from employing counsel for any such Proceeding at Indemnitee’s expense or providing the Company with information indicating that there may be a conflict of interest in the conduct of any such defense between (A) the Company and Indemnitee or (B) Indemnitee and any other party or parties being jointly represented.  The party having responsibility for defense of a Proceeding shall provide the other party and its legal counsel with all copies of pleadings and material correspondence relating to the Proceeding.  Indemnitee and the Company shall reasonably cooperate in the defense of any Proceeding with respect to which indemnification is sought hereunder, regardless of whether the Company or Indemnitee assumes the defense thereof.

 

(d)                                 Settlement.  The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the Company’s written consent, provided, however, that if a Change in Control has occurred, the Company shall be liable for indemnification of Indemnitee for amounts paid in settlement if the Independent Counsel has approved the settlement.  Neither the Company nor any Subsidiary or Affiliate of the Company shall enter into a settlement of any Proceeding that might result in the imposition of any Expense, Other Liability, limitation or detriment on Indemnitee, whether indemnifiable under this Agreement or otherwise, without Indemnitee’s written consent.  Neither the Company nor Indemnitee shall unreasonably withhold consent from any settlement of any Proceeding.

 

Section 9.                                           Determination of Right to Indemnification.

 

(a)                                 Success on the Merits or Otherwise.  To the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding referred to in Section 3 above or in the defense of any claim, issue or matter described therein, the Company shall indemnify Indemnitee against Expenses and Other Liabilities actually and reasonably incurred in connection therewith.

 

(b)                                 Indemnification in Other Situations.  In the event that Section 9(a) is inapplicable, the Company shall also indemnify Indemnitee if he or she has not failed to meet the applicable standard of conduct for indemnification.

 

(c)                                  Determination.  The Company intends that Indemnitee shall be indemnified to the fullest extent permitted by law as provided in Section 3 and that no Determination shall be required in connection with such indemnification.  In no event shall a

 

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Determination be required in connection with advancement of Expenses pursuant to Section 7 or in connection with indemnification for Expenses incurred as a witness or incurred in connection with any Proceeding or portion thereof with respect to which Indemnitee has been successful on the merits or otherwise (including, without limitation, settlement of Proceeding with or without payment of money or other consideration or the termination of any issue or matter in such Proceeding by dismissal, with or  without prejudice).  Any decision that a Determination is required by law in connection with any other indemnification of Indemnitee, and any such Determination, shall be made in accordance with Section 9(d) and Section 9(e).

 

(d)                                 Forum.  Indemnitee shall be entitled to select the forum in which determination of whether or not Indemnitee has met the applicable standard of conduct shall be decided, and such election will be made from among the following:

 

(1)                                 those members of the Board who are Independent Directors even though less than a quorum;

 

(2)                                 by a committee of Independent Directors designated by a majority vote of Independent Directors, even though less than a quorum; or

 

(3)                                 Independent Counsel selected by Indemnitee and approved by the Board, which approval shall not be unreasonably withheld, which Independent Counsel shall make such determination in a written opinion.

 

If Indemnitee is an officer or a director of the Company at the time that Indemnitee is selecting the forum, then Indemnitee shall not select Independent Counsel as such forum unless there are no Independent Directors or unless the Independent Directors agree to the selection of Independent Counsel as the forum.  The selected forum shall be referred to herein as the “Reviewing Party.”  Notwithstanding the foregoing, following any Change in Control, the Reviewing Party shall be Independent Counsel selected in the manner provided in clause (3) above.

 

(e)                                  As soon as practicable, and in no event later than ten (10) days after receipt by the Company of written notice of Indemnitee’s choice of forum pursuant to Section 9(d) above, the Company and Indemnitee shall each submit to the Reviewing Party such information as they believe is appropriate for the Reviewing Party to consider.  The Reviewing Party shall arrive at its decision within a reasonable period of time following the receipt of all such information from the Company and Indemnitee, but in no event later than thirty (30) days following the receipt of all such information, provided that the time by which the Reviewing Party must reach a decision may be extended by mutual agreement of the Company and Indemnitee.  All Expenses associated with the process set forth in this Section 9(e), including but not limited to the Expenses of the Reviewing Party, shall be paid by the Company.

 

(f)                                   Consequences of Determination; Remedies of Indemnitee.  The Company shall be bound by and shall have no right to challenge a Favorable Determination.  If an Adverse Determination is made, or if for any other reason the Company does not make timely indemnification payments or advances of Expenses or Other Liabilities, Indemnitee shall have the right to commence a Proceeding before a court or arbitral body of competent jurisdiction to

 

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challenge such Adverse Determination and/or to require the Company to make such payments or advances.  Indemnitee shall be entitled to be indemnified for all Expenses or Other Liabilities incurred in connection with such a Proceeding in accordance with Section 3 and to have such Expenses and Other Liabilities advanced by the Company in accordance with Section 7.  If Indemnitee fails to timely challenge an Adverse Determination, or if Indemnitee challenges an Adverse Determination and such Adverse Determination has been upheld by a court of competent jurisdiction, in a final and non-appealable decision then, to the extent and only to the extent required by such final decision, the Company shall not be obligated to indemnify or advance Expenses to Indemnitee under this Agreement.

 

(g)           Expenses.  The Company shall indemnify Indemnitee against all Expenses incurred by Indemnitee in connection with any hearing or Proceeding under this Section 9 involving Indemnitee and against all Expenses and Other Liabilities incurred by Indemnitee in connection with any other Proceeding between the Company and Indemnitee involving the interpretation or enforcement of the rights of Indemnitee under this Agreement unless a court of competent jurisdiction finds that each of the material claims of Indemnitee in any such Proceeding was frivolous or made in bad faith.

 

(h)           Determination of “Good Faith.”  For purposes of any determination of whether Indemnitee acted in “good faith,” Indemnitee shall be deemed to have acted in good faith if in taking or failing to take the action in question Indemnitee relied on the records or books of account of the Company or a Subsidiary or Affiliate of the Company, including financial statements, or on information, opinions, reports or statements provided to Indemnitee by the officers or other employees of the Company or a Subsidiary or Affiliate of the Company in the course of their duties, or on the advice of legal counsel for the Company or a Subsidiary or Affiliate of the Company, or on information or records given or reports made to the Company or a Subsidiary or Affiliate of the Company by an independent certified public accountant or by an appraiser or other expert selected by the Company or a Subsidiary or Affiliate of the Company, or by any other person (including legal counsel, accountants and financial advisors) as to matters Indemnitee reasonably believes are within such other person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Company.  In connection with any determination as to whether Indemnitee is entitled to be indemnified hereunder, or to advancement of Expenses, the Reviewing Party or the court shall presume that Indemnitee has satisfied the applicable standard of conduct and is entitled to indemnification or advancement of Expenses, as the case may be, and the burden of proof shall be on the Company to establish, by clear and convincing evidence, that Indemnitee is not so entitled.  The provisions of this Section 9(h) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.  In addition, the knowledge and/or actions, or failures to act, of any other person serving the Company or a Subsidiary or Affiliate of the Company as an Indemnifiable Person shall not be imputed to Indemnitee for purposes of determining the right to indemnification hereunder.

 

Section 10.            Exceptions.  Any other provision herein to the contrary notwithstanding:

 

(a)           Claims Initiated by Indemnitee.  The Company shall not be obligated pursuant to the terms of this Agreement to indemnify or advance Expenses to Indemnitee with

 

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respect to Proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except (i) with respect to Proceedings brought to establish or enforce a right to indemnification under this Agreement, any other statute or law, as permitted under Luxembourg law, or otherwise, (ii) where the Board has consented to the initiation of such Proceeding, or (iii) with respect to Proceedings brought to discharge Indemnitee’s fiduciary responsibilities, whether under ERISA or otherwise, but such indemnification or advancement of Expenses may be provided by the Company in specific cases if the Board finds it to be appropriate.

 

(b)           Unlawful Indemnification.  The Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee for Expenses and Other Liabilities if such indemnification is prohibited by law.

 

Section 11.            Non-exclusivity.  The provisions for indemnification and advancement of Expenses set forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee may have under any provision of law, the Company’s Articles, the vote of the Company’s stockholders or disinterested directors, other agreements, or otherwise, both as to acts or omissions in his or her official capacity and to acts or omissions in another capacity while serving the Company or a Subsidiary or Affiliate of the Company as an Indemnifiable Person and Indemnitee’s rights hereunder shall continue after Indemnitee has ceased serving the Company or a Subsidiary or Affiliate of the Company as an Indemnifiable Person and shall inure to the benefit of the heirs, executors and administrators of Indemnitee; provided that to the extent that Indemnitee is entitled to be indemnified by the Company under this Agreement and by any stockholder of the Company or any Affiliate of any such stockholder (other than the Company) under any other agreement or instrument, or by any insurer under a policy maintained by any such stockholder or Affiliate, the obligations of the Company hereunder shall be primary, and the obligations of such stockholder, Affiliate or insurer secondary.  Any such stockholder or Affiliate shall be entitled to enforce the Company’s obligation to provide indemnification in accordance with the priorities set forth in this Section 11 directly against the Company, and each such stockholder or Affiliate shall constitute an express intended third party beneficiary under this Agreement for such purpose (a “Third Party Beneficiary”).  In the event that any such stockholder or Affiliate makes indemnification payments or advances to Indemnitee in respect of any Expenses or Other Liabilities for which the Company would also be obligated pursuant to this Agreement, the Company shall reimburse such stockholder or affiliate in full on demand.  Notwithstanding anything to the contrary in the foregoing, the Company shall not be entitled to contribution or indemnification from or subrogation against any stockholder of the Company, any Affiliate of any such stockholder or any insurer under a policy maintained by any such stockholder or Affiliate.

 

Section 12.            Non-Circumvention.  The Company shall not seek or agree to any order of any court or other governmental authority that would prohibit or otherwise interfere, and shall not take or fail to take any other action if such action or failure would reasonably be expected to have the effect of prohibiting or otherwise interfering, with the performance of the Company’s indemnification, advancement or other obligations under this Agreement.

 

Section 13.            Binding Effect; Severability.  The Company shall, to the fullest extent permitted by law, be precluded from asserting in any Proceeding that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any

 

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such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever, (a) the validity, legality and enforceability of the remaining provisions of the Agreement (including, without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby, and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal  or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

 

Section 14.            Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar) and except as expressly provided herein, no such waiver shall constitute a continuing waiver.

 

Section 15.            Successors and Assigns.  The terms of this Agreement shall bind, and shall inure to the benefit of, the successors and assigns of the parties hereto; provided, however, that neither party shall assign this Agreement without the prior written consent of the other.

 

Section 16.            No Third Party Beneficiaries.  Except as set forth in Section 11, nothing in this Agreement is intended to confer on any person other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

Section 17.            Notices.  All notices and other communications required or permitted hereunder shall be in writing, shall be effective when given, and shall in any event be deemed to be given (a) five calendar days after deposit with the postal service, if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one business day after the business day of deposit with Federal Express or similar overnight courier, freight prepaid, or (d) one day after the business day of delivery by facsimile transmission, if deliverable by facsimile transmission, with copy by first class mail, postage prepaid, and shall be addressed if to Indemnitee, at Indemnitee’s address as set forth beneath Indemnitee’s signature to this Agreement and if to the Company at the address of its principal corporate offices (attention: Chairman and Chief Executive Officer) or at such other address as such party may designate by ten calendar days’ advance written notice to the other party hereto.

 

Section 18.            Presumptions; Burden and Effect of Certain Proceedings.

 

(a)           It shall be a presumption that a Determination is not required.

 

(b)           It shall be a presumption that Indemnitee has met the applicable standard of conduct and that indemnification of Indemnitee is proper in the circumstances. A finding, admission or stipulation that Indemnitee has acted with gross negligence or recklessness shall

 

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not, of itself, create a presumption that such Indemnitee has failed to meet the standard or conduct required for indemnification hereunder.

 

(c)           The burden of proof shall be on the Company to overcome the presumptions set forth in the preceding clauses (a) and (b), and each such presumption shall only be overcome if the Company establishes that there is no reasonable basis to support it.

 

(d)           If a Determination (to the extent legally required) shall not have been made within thirty (30) days (as may be extended pursuant to Section 9(e)) after receipt by the Company of the Indemnitee’s request, a favorable Determination of entitlement to indemnification shall, to  the fullest extent permitted by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent a prohibition of such indemnification under applicable law.

 

(e)           The termination of any Proceeding, by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law or otherwise.

 

(f)            Neither the failure of the Company or a Reviewing Party to have made a determination as to whether Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual determination by the Company or a Reviewing Party that Indemnitee has not met such standard of conduct or did not have such belief, prior to the commencement of Proceedings by Indemnitee to secure a judicial or arbitral determination by exercising Indemnitee’s rights under Section 9(f) of this Agreement shall be a defense to Indemnitee’s claim or create a presumption that Indemnitee has failed to meet any particular standard of conduct or did not have any particular belief or is not entitled to indemnification under applicable law or otherwise.  Any such Proceeding shall be conducted in all respects as a de novo trial, or arbitration, on the merits and the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses and Other Liabilities, as the case may be.

 

(g)           To the fullest extent permitted by law, termination of any Proceeding by judgment, order, finding or settlement (whether with or without court approval) without any finding of responsibility, wrongdoing or guilt on the part of Indemnitee with respect to claims asserted by such Proceeding shall constitute a conclusive determination that Indemnitee is entitled to indemnification hereunder.

 

(h)           If a Determination shall have been made pursuant to this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to Section 25, absent (i) a misstatement by Indemnitee of a material fact, or an omission by Indemnitee of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

11

 

Section 19.            Survival of Rights.  The rights conferred on Indemnitee by this Agreement shall continue after Indemnitee has ceased to serve the Company or a Subsidiary or Affiliate of the Company as an Indemnifiable Person and shall inure to the benefit of Indemnitee’s heirs, executors and administrators.

 

Section 20.            Subrogation.  Except as set forth in Section 11, in the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

 

Section 21.            Specific Performance, Etc.  The parties recognize that if any provision of this Agreement is violated by the Company, Indemnitee may be without an adequate remedy at law.  Accordingly, in the event of any such violation, Indemnitee or a Third Party Beneficiary shall be entitled, if Indemnitee so elects, to institute Proceedings, either in law or at equity, to obtain damages, to enforce specific performance, to enjoin such violation, or to obtain any relief or any combination of the foregoing as Indemnitee or such Third Party Beneficiary may elect to pursue.

 

Section 22.            Counterparts.  This Agreement may be executed in counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

Section 23.            Headings.  The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction or interpretation thereof.

 

Section 24.            Governing Law.  This Agreement shall be governed by and its provisions construed and enforced in accordance with the laws of Luxembourg, as applied to contracts between Luxembourg residents, entered into and to be performed entirely within the Grand Duchy of Luxembourg, without regard to the conflict of laws principles thereof.

 

Section 25.            Consent to Jurisdiction.  The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of Luxembourg for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement and agree that any action instituted under this Agreement shall be commenced, prosecuted and continued only in the Luxembourg courts, which shall be the exclusive and only proper forum for adjudicating such a claim.

 

[SIGNATURE PAGE FOLLOWS]

 

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The parties hereto have entered into this Indemnification Agreement effective as of the Effective Date.

 

	
 
    	
 
    
	
Ardagh   Group S.A.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
INDEMNITEE
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:  
    	
 
    
	
Title:
    	
 
    
				

 

[Signature Page to Indemnification Agreement]

 

13EX-4.11

 Exhibit 4.11 
  

 
 BARCLAYS PLC 

 
  

RULES OF THE 
 BARCLAYS
GROUP DEFERRED SHARE VALUE PLAN 
  
  

Adopted by the Board Remuneration Committee of Barclays PLC on 8 February 2017 

 CONTENTS 
  

							
	Rule	  	 	  	Page	 
			
	 1.
	  	Definitions and Interpretation	  	 	1	 
			
	 2.
	  	Grant of Awards	  	 	4	 
			
	 3.
	  	Vesting of Awards	  	 	5	 
			
	 4.
	  	Consequences of Vesting	  	 	7	 
			
	 5.
	  	Vesting After Cessation of Employment	  	 	9	 
			
	 6.
	  	Take-over and Liquidation	  	 	10	 
			
	 7.
	  	Variations in the Share Capital of the Company	  	 	11	 
			
	 8.
	  	Administration of the Plan	  	 	11	 
			
	 9.
	  	Amendment of the Plan	  	 	11	 
			
	 10.
	  	Forfeitable Securities	  	 	11	 
			
	 11.
	  	Cash Alternative	  	 	12	 
			
	 12.
	  	General Provisions	  	 	12	 
		
	 Schedule 1 – Special Provisions Schedule
	  	 	15	 
		
	 Schedule 2 Cash Awards
	  	 	18	 

  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	In the Plan, unless the context otherwise requires: 

 “Adoption Date” means
8 February 2017 being the date on which the Plan was adopted by the Committee; 
 “Award” means a Conditional Award, a
Forfeitable Award, an Option, a Provisional Allocation or such other form of award as determined by the Committee on or before the Award Date which may relate to Shares or to Capital Instruments; 

“Award Date” means in relation to an Award the date specified as such by the Committee in the Award Letter; 

“Award Letter” means a letter containing the information specified in Rule 2.2 in such form as may be prescribed from time to
time by the Committee provided to a Participant informing the Participant of the grant of an Award to him; 
 “Board” means
the board of directors for the time being of the Company or a duly authorised committee of the Board or a duly authorised person; 

“Capital Instrument” means a capital instrument or security issued by a member of the Group from time to time; 

“Cash Award” means an Award which relates to a cash sum granted under Schedule 2 to the Plan; 

  
 1 

 “Committee” means the remuneration committee for the time being of the Board (or
a duly authorised committee thereof or person or persons duly authorised by the remuneration committee to exercise any of its powers or duties under the Plan) empowered to act on behalf of the Company for all purposes in connection with the Plan or,
if there is no such committee in existence at the relevant time, the Board, save that, should any person obtain Control of the Company, the Committee shall mean the members of the Committee immediately before such Control is obtained; 

“Company” means Barclays PLC (registered no. 48839); 

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

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

“Coupon” means an amount paid as interest or a similar payment in respect of Capital Instruments subject to an Award over all
or part of the Vesting Period; 
 “Coupon Equivalent” means an amount that the Committee may determine to add to a Vesting
Portion on a Vesting Date which is equal to the value of any Coupons paid on the Capital Instruments subject to an Award which would have been paid to the Participant in respect of the Capital Instruments acquired on the exercise of an Option or
Vesting of a Conditional Award or Provisional Allocation between the Award Date and the date on which the Option first became exercisable or the Conditional Award or Provisional Allocation Vested as the case may be, had those Capital Instruments
been beneficially owned by the Participant during that period; 
 “Dividend Shares” means a number of Shares equal to the
value of dividends paid on the Shares subject to an Award over all or any part of the Vesting Period and which may be added to a Vesting Portion on a Vesting Date as determined by the Committee; 

“Eligible Employee” means any person who is an employee or former employee of any member of the Group and who is deemed to be
eligible to participate by the Committee PROVIDED THAT a person shall not be eligible to participate in the Plan if he is a director of the Company; 

“Employer” means the employing company of an Eligible Employee or a Participant, as the context so requires; 

“Forfeitable Award” means the transfer of the beneficial interest in Forfeitable Securities to a Participant and the
subsequent holding of that interest in accordance with the Plan; 
 “Forfeitable Securities” means Securities comprised in a
Forfeitable Award which are subject to certain restrictions and forfeiture under the Plan; 
 “Group” means the Company and
all of its Subsidiaries and the expression “member of the Group” shall be construed accordingly; 
 “Involved
in an Investigation” means: 
  

	 	(a)	where a current or former employee: 

  

	 	(i)	is suspended from employment or placed on paid leave in connection with a disciplinary or regulatory matter (whether internal or external); or 

 

	 	(ii)	is the subject of, undergoing or involved in an investigation in connection with a disciplinary or regulatory matter (whether internal or external); or 

  
 2 

	 	(iii)	by virtue of his or her line management responsibilities could become the subject of, undergo or become involved in an investigation in connection with a disciplinary or regulatory matter (whether internal or external);
or 

  

	 	(b)	any other category of employee or former employee as determined by the Committee from time to time in its discretion; 

“Option” means a right to acquire Securities granted under the Plan which is designated as an option by the Committee under
Rule 2.2; 
 “Option Price” means the amount, if any, payable on the exercise of an Option; 

“Participant” means an Eligible Employee who has been granted an Award or, where applicable, his personal representative; 

“Participating Companies” means the Company and other members of the Group which have been nominated by the Committee to
participate in the Plan; 
 “Performance Condition” means a condition related to performance which is specified by the
Committee under Rule 2.2; 
 “Plan” means the Barclays Group Deferred Share Value Plan as constituted by these rules and as
amended from time to time in accordance with the provisions hereof; 
 “Provisional Allocation” means a provisional award of
Securities which does not constitute the acquisition by a Participant of an interest in the Securities awarded to him or the acquisition of a right to acquire those Securities; 

“Risk Committee” means the Barclays Group Risk Committee (or a duly authorised committee thereof or a duly authorised person);

 “Rules” means the rules of the Plan as set out in this document and “Rule” shall be construed
accordingly; 
 “Securities” means Shares or Capital Instruments as the context so requires; 

“Shares” means ordinary shares in the capital of the Company or such other class of shares as may represent the same as a
result of any reorganisation, reconstruction or other variation of the share capital of the Company to which the provisions of the Plan may apply from time to time PROVIDED THAT if a corporate event described in Rule 6 occurs, references to
“Shares” in Rules 3 to 6 inclusive shall include any consideration received for any such shares under an Award which may otherwise have Vested; 

“Special Provisions Schedule” means Schedule 1 to the Plan; 

“Subsidiary” means any company which is a subsidiary of the Company within the meaning of section 1159 of the Companies Act
2006; 
 “US Participant” means a Participant who (i) is resident in, or a citizen or green card holder of, the United
States of America on the Award Date, (ii) is otherwise subject to US taxation on the Award Date or (iii) becomes subject to US taxation prior to exercise or Vesting of an Award; 

“Vest” means: 

  
 3 

	 	(a)	in relation to a Conditional Award, a Participant becoming entitled to have Securities transferred to him (or his nominee account) subject to the Rules; 

 

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

  

	 	(c)	in relation to a Forfeitable Award, the restrictions imposed on the Forfeitable Securities under the Plan ceasing to apply; 

  

	 	(d)	in relation to a Provisional Allocation, the Committee determining in its absolute discretion to release some or all of the Securities subject to the Provisional Allocation, 

and “Vesting” shall be construed accordingly; 

“Vesting Date” means such date as the Committee shall in its absolute discretion determine in relation to a Vesting Portion of
an Award; 
 “Vesting Period” means the period from the Award Date to the final Vesting Date specified in the Award Letter;
and 
 “Vesting Portion” means such percentage of the Securities subject to an Award (rounded down to the nearest whole
Security) as may Vest on or about any Vesting Date as set out in the Award Letter. 
  

	1.2	Any reference in the Plan to a statutory provision shall include a reference to that provision as amended or re-enacted from time to time. Where the context permits the singular shall include the plural and vice versa
and the masculine gender shall include the feminine. 

  

	2.	GRANT OF AWARDS 

  

	2.1	Subject to the limitations specified in this Rule 2, the Committee may in its absolute discretion grant any Eligible Employee an Award in accordance with the Rules and if relevant modified by the Special Provisions
Schedule and on such additional terms as the Committee may specify at the time of grant. For the avoidance of doubt, an Award may not be granted to a person who is not an Eligible Employee. 

 

	2.2	The Committee shall as soon as reasonably practicable on or after the Award Date notify the Eligible Employee of the grant of the Award in writing in an Award Letter. The Award Letter shall specify (without limitation):

  

	 	(a)	the form of the Award; 

  

	 	(b)	the number of Securities in respect of which the Award is granted or the formula by which such number may be found; 

  

	 	(c)	the Award Date; 

  

	 	(d)	whether the Award is subject to any Performance Condition(s); and 

  

	 	(e)	details of the applicable Vesting Date(s) and Vesting Portion(s). 

  

	2.3	The number of Securities in respect of which an Award is to be granted shall be calculated by the Committee. 

  

	2.4	There shall be no consideration payable for the grant of an Award. 

  
 4 

	2.5	The grant of any Award shall be subject to obtaining any approval or consent required under the United Kingdom Listing Authority Listing Rules, any relevant securities dealing code of the Company, the City Code on
Takeovers and Mergers and any other relevant UK or overseas regulation or enactment. 

  

	2.6	An Award may be granted: 

  

	 	(a)	in the 6 weeks beginning with: 

  

	 	(i)	the date on which the Plan is adopted by the Committee; or 

  

	 	(ii)	the dealing day after the date on which the Company announces its results for any period; or 

  

	 	(iii)	the removal of any restrictions imposed on the Committee or the Company which prevented an Award from being granted in the period mentioned in (ii); or 

 

	 	(iv)	the date on which changes to any legislation or regulations affecting the Plan are announced or made; or 

  

	 	(b)	at any other time when the Committee so decides, provided that it is not restricted from granting Awards at that time by law or regulation 

but an Award may not be granted after [●] 2027 (that is, the expiry of the period of 10 years beginning with the date on which the Plan
is adopted by the Committee). 
  

	2.7	Any Award granted to a Participant is personal to him and shall not be capable of being transferred or otherwise disposed of by a Participant. Any such Award shall lapse immediately if it is so transferred, purported to
be transferred or otherwise disposed of or if the Participant is adjudged bankrupt. 

  

	2.8	Except in the case of Forfeitable Awards, until an Award Vests, a Participant shall not be entitled to any dividends or other distributions made in respect of the Securities awarded to him and shall have no right to
vote in respect of the Securities subject to his Award. 

  

	2.9	An Award of Shares may only be satisfied by the transfer of Shares (other than the transfer of treasury Shares). 

  

	2.10	An Award of Capital Instruments may only be satisfied by the transfer of Capital Instruments. 

  

	3.	VESTING OF AWARDS 

  

	3.1	Subject to the remainder of Rule 3 and Rules 5 and 6 and to the satisfaction of any Performance Condition attaching to an Award, the relevant Vesting Portion of an Award (provided it is not a Provisional Allocation) and
any Dividend Shares or Coupon Equivalent (if applicable) shall Vest in accordance with Rule 4 on the Vesting Date. In the case of a Provisional Allocation, the Committee shall, in its absolute discretion, determine whether the Vesting Portion shall
Vest on the Vesting Date in accordance with Rule 4. 

  

	3.2	Subject to Rules 3.3, 3.4, 3.6 and 5 and to the satisfaction of any Performance Condition attaching to an Award, if on any Vesting Date the Participant is not an employee of the Group, the Committee may in its absolute
discretion and in accordance with Rule 4 allow: 

  
 5 

	 	(a)	the relevant Vesting Portion and any Dividend Shares or Coupon Equivalent (if applicable) to Vest on its Vesting Date; or 

  

	 	(b)	a lower number of such Securities and any Dividend Shares or Coupon Equivalent (if applicable) to Vest; or 

  

	 	(c)	no Securities, Dividend Shares or Coupon Equivalent at all to Vest. 

  

	3.3	Notwithstanding any other provision of the Plan, and irrespective of whether any Performance Condition attached to an Award has been satisfied, if the Committee determines in its absolute discretion that the underlying
financial health of the Group has significantly deteriorated over the whole or any part of the Vesting Period, such that there are severe financial constraints on the Group which preclude or limit the Group’s ability to facilitate funding of
Awards then: 

  

	 	(a)	the Committee may at its absolute discretion determine that any Vesting Portion and/or Dividend Shares or Coupon Equivalent (if any) that may otherwise Vest may be limited, reduced (to nil if appropriate) and/or made
subject to any other condition as the Committee considers at its absolute discretion appropriate; and 

  

	 	(b)	in the absence of any determination by the Committee under Rule 3.3(a), the Vesting of any Vesting Portion and/or Dividend Shares or Coupon Equivalent (if any) that may otherwise Vest (including any Securities not
released as the result of the exercise of discretion by the Committee under Rule 3.3 (a)) shall be suspended until such time as the Committee lifts such suspension or exercises its discretion under Rule 3.3(a) PROVIDED THAT to the extent that
the Committee has not lifted such suspension or exercised its discretion under Rule 3.3(a) within 3 years from the date specified at the Award Date as the final Vesting Date of an Award which remains outstanding and in respect of which Vesting of
any Vesting Portion and/or Dividend Shares or Coupon Equivalent (if any) remains suspended under this Rule 3.3(b), all such Awards shall be forfeited and lapse in their entirety, unless the Committee, in exceptional circumstances, determines
otherwise. 

  

	3.4	Notwithstanding any other provision of the Plan, and irrespective of whether any Performance Condition attached to an Award has been satisfied, the Committee may, in its absolute discretion, determine that any Vesting
Portion and/or Dividend Shares or Coupon Equivalent (if any) may be reduced (to nil if appropriate) at any time at its discretion, including (but without limitation) as a result of: 

 

	 	(a)	the Group or any Subsidiary’s financial statements having been materially restated at any time whether before or during the Vesting Period other than restatement due to a change in accounting policy or to rectify a
minor error; 

  

	 	(b)	the Group or any business unit having suffered a material downturn in its financial performance at any time whether before or during the Vesting Period; 

 

	 	(c)	the Participant having, in the reasonable opinion of the Committee, following consultation with his Employer, deliberately misled the management of the Company, the market and/or the Company’s shareholders
regarding the financial performance of the Group or of any Subsidiary at any time whether before or during the Vesting Period; 

  

	 	(d)	the Participant’s actions at any time whether before or during the Vesting Period having, in the reasonable opinion of the Committee, following consultation with his Employer, caused harm to the reputation of the
Group and/or the Participant’s business unit; 

  

	 	(e)	the Participant’s actions at any time whether before or during the Vesting Period having, in the reasonable opinion of the Committee, following consultation with his Employer, amounted to misconduct or a material
error; 

  
 6 

	 	(f)	the Group or the business in which the Participant works having, in the reasonable opinion of the Committee, following consultation with the Risk Committee, suffered a material failure of risk management whether before
or during the Vesting Period; 

  

	 	(g)	the Participant’s actions having, in the reasonable opinion of the Committee, following consultation with his Employer, amounted to negligence, incompetence or poor performance at any time whether before or during
the Vesting Period; or 

  

	 	(h)	any other matter which, in the reasonable opinion of the Committee, is required to be taken into account to comply with prevailing legal and / or regulatory requirements, which for the avoidance of doubt, includes any
regulations or guidance published by a regulator from time to time. 

 For the purposes of this Rule 3.4, the determination of
what constitutes “negligence”, “incompetence”, “poor performance” and “misconduct” shall be determined by the Committee acting in good faith, following consultation with the Employer. 

 

	3.5	If a Participant relocates to another jurisdiction before his Award Vests and, as a result of the relocation, the Participant or any member of the Group would be subject to additional tax or social security on the
Vesting of the Award or the Vesting of the Award in that other jurisdiction would be subject to any regulatory restriction, approval or consent, the Committee may determine that the Award may: 

 

	 	(a)	vest on such terms and during such period preceding the date on which the Participant relocates as the Committee may determine; or 

  

	 	(b)	lapse and be replaced by the grant of such other form of Award as the Committee may specify. 

  

	3.6	Notwithstanding any other provision of the Plan, and irrespective of whether any Performance Condition attached to an Award has been satisfied, if, at the time that an Award is due to Vest, a Participant is Involved in
an Investigation then the Committee in its absolute discretion, following consultation with his Employer, may determine that any Vesting of any Vesting Portion and/or Dividend Shares or Coupon Equivalent (if any) shall be suspended until such time
as the Committee lifts such suspension and exercises its discretion to allow the Award to Vest or otherwise reduces the Award (to nil, if appropriate) in accordance with Rule 3.4 PROVIDED THAT if a Participant ceases to be employed by the
Group in accordance with Rule 5.4 then the Award shall lapse in its entirety unless the Committee, in exceptional circumstances, determines otherwise as permitted by Rule 5.4 and/or PROVIDED FURTHER THAT to the extent that the Committee has
not lifted such suspension or exercised its discretion under this Rule 3.6 within 5 years from the date of any such suspension, then all such Awards shall be forfeited and lapse in their entirety, unless the Committee, in exceptional circumstances,
determines otherwise. 

  

	4.	CONSEQUENCES OF VESTING 

  

	4.1	In the case of a Conditional Award, the Committee shall, subject to the remainder of this Rule 4, transfer or procure the transfer of the Vesting Portion of the Award to the Participant or his nominee account on or as
soon as reasonably practicable after the relevant Vesting Date. 

  

	4.2	 In the case of an Option, the Option shall, subject to the remainder of this Rule 4, be exercisable in respect of
Securities subject to the Vesting Portion for a period determined by the Committee at the Award Date in its absolute discretion, but being a period of no longer than 10 years from the Award Date, starting with the relevant Vesting Date unless it
lapses 

  
 7 

	 	
earlier under Rules 5 or 6. If an Option is not exercised during the last 30 days of that period because of any regulatory restrictions, the Committee may extend the period during which the
Option may be exercised so as to permit the Option to be exercised as soon as those restrictions cease to apply. 

  

	4.3	In the case of a Forfeitable Award, the Vesting Portion of the Forfeitable Securities shall cease to be subject to the restrictions imposed on those Forfeitable Securities under the Plan and the Committee shall, subject
to the remainder of this Rule 4, transfer or procure the transfer of the legal title to those Forfeitable Securities and/or any documents of title relating to those Forfeitable Securities to the Participant or his nominee account on or as soon as
reasonably practicable on or around the relevant Vesting Date. 

  

	4.4	In the case of a Provisional Allocation, if the Committee determines that any Securities under an Award shall Vest pursuant to Rules 3, 5 or 6, the Committee shall as soon as reasonably practicable on or around the
relevant Vesting Date transfer or procure the transfer to the Participant or his nominee account of the Vesting Portion in such form and manner as the Committee shall from time to time prescribe in which case: 

 

	 	(a)	the Committee shall inform the Participant of the release of Securities to him within 28 days of Vesting; and 

  

	 	(b)	the Participant shall from the date of such determination become beneficially entitled to such Securities and shall have the right to receive all dividends or Coupons, as the case may be, paid on such Securities on or
after their Vesting (net of any tax payable on such dividends or Coupon) and the right to vote or direct the voting in respect of such Securities (where such Securities are Shares and those Shares are held by the trustees of an employee benefit
trust established by the Company or any member of the Group and the trustees shall vote in accordance with any such instructions). 

  

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

  

	 	(a)	if the Committee so requires, the Participant shall enter into an election to be made jointly with his Employer pursuant to section 431 of the Income Tax (Earnings and Pensions) Act 2003 for the Securities to be treated
as if they are not restricted securities for the purposes of Chapter 2, Part 7, Income Tax (Earnings and Pensions) Act 2003; 

  

	 	(b)	subject to Rule 4.6, the Participant shall pay in such manner as the Committee may from time to time prescribe any such additional amount of which the Committee may notify the Participant in respect of any deduction on
account of tax or similar liabilities as may be required by law which may arise on the release of Securities to him; and 

  

	 	(c)	the Vesting of the Award or exercise of the Option and the transfer of Securities after such Vesting or exercise would be lawful in all relevant jurisdictions and in compliance with the United Kingdom Listing Authority
Listing Rules, any relevant securities dealing code of the Company, the City Code on Takeovers and Mergers and any other relevant UK or overseas regulation or enactment. 

 

	4.6	The Committee may sell, or procure the sale of, such number of Securities which have Vested to meet any obligation of the Committee, any member of the Group or any other person to deduct tax or employees’ social
security contributions or other tax withholding which may be required by law in any jurisdiction or which the Committee and/or the Employer reasonably considers to be necessary or desirable in respect of the Vesting of an Award. 

 

	4.7	 An Award shall lapse in accordance with the Plan or to the extent that it does not Vest under the Plan. On the
lapse of all or any part of a Forfeitable Award, the beneficial interest (and, if appropriate, the legal interest) of the Forfeitable Securities 

  
 8 

	 	
in respect of which such Award has lapsed shall be transferred for no (or nominal) consideration to any person specified by the Committee. 

 

	5.	VESTING AFTER CESSATION OF EMPLOYMENT 

  

	5.1	Subject to Rules 3.3, 3.4 and 3.6 and unless a Vesting Portion may Vest before its Vesting Date under Rules 5.2, 5.3, 5.4 and 6, a Vesting Portion may not Vest before the relevant Vesting Date. Any Vesting Portion which
does not Vest shall lapse. 

  

	5.2	Subject to Rules 3.3, 3.4 and 3.6, if a Participant dies his Award (provided it is not a Provisional Allocation) shall, unless the Committee decides otherwise in exceptional circumstances, Vest on the earlier of its
applicable Vesting Date and the date on which the Committee is notified of the death in accordance with Rule 4. In the case of a Provisional Allocation, the Committee shall, in its absolute discretion, decide whether the Award should Vest.

  

	5.3	Subject to Rules 3.3, 3.4 and 3.6, if a Participant ceases to be employed by the Group by reason of: 

  

	 	(a)	injury, disability or ill health; 

  

	 	(b)	redundancy; 

  

	 	(c)	retirement with the agreement of his Employer; 

  

	 	(d)	the company by which he is employed ceasing to be a member of the Group or the undertaking in which he is employed being transferred to a transferee which is not a member of the Group; 

 

	 	(e)	his Employer terminating his employment, other than in circumstances which, in the reasonable opinion of the Committee, amount to gross misconduct or dismissal for cause; or 

 

	(f)	resignation after the third anniversary of the Award Date 

 his Award (provided it is not a
Provisional Allocation) shall, unless the Committee decides otherwise in exceptional circumstances, Vest on the applicable Vesting Date for each Vesting Portion as set out in the Award Letter and in accordance with Rule 4 PROVIDED THAT if a
Participant ceases to be employed by the Group before the Vesting Date of any Vesting Portion the Committee may allow such unvested Vesting Portions as the Committee so decides to Vest on the date of such cessation. In the case of a Provisional
Allocation, the Committee shall, in its absolute discretion, decide whether each Vesting Portion should Vest. Any Vesting Portion which does not Vest shall lapse. 
  

	5.4	If a Participant ceases to be employed by the Group due to resignation on or before the third anniversary of the Award Date, dismissal for cause or gross misconduct or for any reason other than one of the events
specified in Rules 5.2 or 5.3, his Award shall lapse unless the Committee in its absolute discretion in exceptional circumstances determines otherwise in which case the Committee may release to the Participant each Vesting Portion on or after the
applicable Vesting Date for each Vesting Portion as set out in the Award Letter and in accordance with Rule 4 PROVIDED THAT if a Participant ceases to be employed by the Group before the Vesting Date for any Vesting Portion, the Committee may
allow such unvested Vesting Portions as the Committee so decides to Vest on the date of such cessation. Any Vesting Portion which does not Vest shall lapse. 

  

	5.5	For the purposes of this Rule 5, a Participant shall be deemed to have ceased to be employed by a member of the Group on the earlier of the day on which (i) the Participant gives notice of resignation or
(ii) his employment terminates, unless the Committee decides otherwise in its absolute discretion. 

  
 9 

	6.	TAKE-OVER AND LIQUIDATION 

  

	6.1	Rule 6.2 shall apply if: 

  

	 	(a)	any person obtains Control of the Company as a result of making: 

  

	 	(i)	a general offer to acquire the whole of the issued share capital of the Company (other than that which is already owned by such person) made on a condition such that if it is satisfied the person making the offer will
have Control of the Company; or 

  

	 	(ii)	a general offer to acquire all the Company’s ordinary shares (or such of those shares as are not already owned by such person); or 

 

	 	(b)	under section 899 of the Companies Act 2006 the Court sanctions a compromise or arrangement between the Company and its creditors or its members which, if it becomes effective, will result in a person obtaining Control
of the Company. 

  

	6.2	Subject to Rules 3.3, 3.4 and 3.6, the Committee shall have absolute discretion to determine whether: 

  

	 	(a)	any Performance Condition should be waived or deemed to be satisfied; and/or 

  

	 	(b)	any Awards should Vest early before their relevant Vesting Dates; and/or 

  

	 	(c)	Awards should continue in the same or a revised form following the change of Control. 

  

	6.3	Subject to Rules 3.3, 3.4 and 3.6, if the Company gives notice of a general meeting to consider a resolution for the voluntary winding up of the Company (the “resolution”) the Committee shall allow
Awards to Vest PROVIDED THAT any Vesting pursuant to this Rule 6.3 shall be conditional upon the resolution being duly passed. If the resolution is defeated or withdrawn, the Award shall be unaffected. If the Committee allows Awards to Vest
pursuant to this Rule 6.3, the Participant shall be entitled to share in the assets of the Company with existing holders of the Securities in the same manner as if the Securities had been registered in his name before the resolution was passed.

  

	6.4	Subject to Rules 3.3, 3.4 and 3.6, if, in the opinion of the Committee, the Company will be affected by any demerger, dividend in specie, special dividend or other transaction which will adversely affect the current or
future value of any Award, the Committee may depending on the form of the Award, acting fairly, reasonably and objectively, allow all unvested Awards to Vest on such event happening. 

 

	6.5	On the commencement of any liquidation of the Company (subject to Rule 6.3 and otherwise than in connection with a compromise or arrangement as referred to in paragraph (b) of Rule 6.1) the Award shall lapse.

  

	6.6	If any company (“Acquiring Company”) obtains Control of the Company as a result of making an offer referred to in Rule 6.1 or a compromise or arrangement referred to in Rule 6.1 any Participant may, by
agreement with the Acquiring Company, release any Award (“Old Award”) in consideration of the grant to him of an Award (“New Award”) which is equivalent to the Old Award except that it will be over securities in the
Acquiring Company or some other company. 

 The Rules will apply to any New Award granted under this Rule 6.6 as if references
to Securities were references to securities over which the New Award is granted and references to the Company were references to the company whose securities are subject to the New Award. 

  
 10 

	7.	VARIATIONS IN THE SHARE CAPITAL OF THE COMPANY 

  

	7.1	In the event of any variation of the share capital of the Company or a demerger, special dividend or other similar event which affects the market price of Securities to a material extent, the Committee may make such
adjustment as it considers appropriate to the number of Securities subject to any Award and, in the case of an Option over Securities, the Option Price. 

  

	8.	ADMINISTRATION OF THE PLAN 

  

	8.1	The Plan shall be administered by the Committee whose decision on any matter connected with the Plan shall be final and binding. 

  

	8.2	The Committee shall determine any dispute about the rights and obligations of any person under the Plan or any question concerning the construction or interpretation or effect of the Plan or any other question in
connection with the Plan and its determination shall be final, binding and conclusive on all persons. 

  

	9.	AMENDMENT OF THE PLAN 

  

	9.1	Notwithstanding any other provision of the Plan the Committee may at any time and from time to time in its absolute discretion and without notice modify or amend, in whole or in part, any or all of the provisions of
this Plan or suspend or terminate the Plan entirely, provided that no such modification or amendment may be made that would materially adversely affect existing Awards, save in circumstances in which such amendment, modification, suspension or
termination is deemed necessary to ensure consistency with Barclays remuneration policy and / or practices (as amended from time to time) or to ensure the Group’s compliance with prevailing legal and / or regulatory requirements, which for the
avoidance of doubt, includes any regulations or guidance published by a regulator from time to time. 

  

	10.	FORFEITABLE SECURITIES 

 On or before the grant of a Forfeitable Award, each Eligible
Employee selected for such an Award must enter into an agreement with the Company under the terms of which the Eligible Employee agrees: 
  

	10.1	to have full beneficial ownership of the Securities; 

  

	10.2	unless the Committee decides otherwise, to waive his right to all Coupons, cash and scrip dividends on his Forfeitable Securities until Vesting; 

 

	10.3	that he will not assign, transfer, charge or otherwise dispose of any Forfeitable Securities or any interest in them until Vesting save as otherwise required by the Plan; 

 

	10.4	if required by the Committee, to enter into any elections under Part 7 of ITEPA and any election to transfer or any agreement to pay secondary Class 1 National Insurance Contributions (or their equivalents in any
jurisdiction) in relation to his Forfeitable Securities; and 

  

	10.5	to sign any documentation to give effect to the terms of the Forfeitable Award. 

  
 11 

	11.	CASH ALTERNATIVE 

  

	11.1	Where a Conditional Award or a Provisional Allocation Vests or where an Option has been exercised and Vested Securities have not yet been transferred to the Participant (or his nominee account), the Committee may
determine that, instead of acquiring such number of Vested Securities as the Committee may decide (but in full and final satisfaction of his right (if any) to acquire those Securities), he shall be paid by way of additional employment income a sum
equal to the cash equivalent (as defined in Rule 11.3) of that number of Securities in accordance with the following provisions of this Rule 11. 

  

	11.2	Rule 11.1 shall not apply in relation to an Award made to a Participant in any jurisdiction where the presence of Rule 11.1 would cause the grant of the Award to be unlawful or for it to fall outside any applicable
securities law exclusion or exemption or adverse tax or social security contributions consequences for the Participant or any member of the Group as determined by the Board provided that this Rule 11.2 shall apply only if its application would
prevent the occurrence of a consequence referred to in this Rule 11.2. 

  

	11.3	For the purpose of this Rule 11, the cash equivalent of a Security is: 

  

	 	(a)	in the case of a Conditional Award or a Provisional Allocation, the market value of a Security on the day when the Award Vests; and 

  

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

Market value on any day shall be such value of a Security as the Committee reasonably determines. 

 

	11.4	As soon as reasonably practicable after the Committee has determined under Rule 11.1 that a Participant shall be paid a sum in substitution for his right (if any) to acquire any number of Vested Securities the Company
shall pay to him or procure the payment to him of that sum in cash and if he has already paid the Company for those Securities, the Company shall return to him the amount so paid by him. 

 

	11.5	There shall be deducted from any payment under this Rule 11 such amounts (on account of tax or similar liabilities) as may be required by law or as the Committee may reasonably consider to be necessary or desirable.

  

	12.	GENERAL PROVISIONS 

  

	12.1	Terms of employment 

 The rights and obligations of any Participant under the terms of
his employment with any member of the Group shall not be affected by his participation in the Plan or any right which he may have to participate in it. Participants shall waive any and all rights to compensation or damages in consequence of the
termination of employment for any reason whatsoever (and regardless of whether such termination is lawful or unlawful) insofar as such rights arise or may arise from his ceasing to have rights under the Plan as a result of such termination.
Participation in the Plan shall not confer a right to continued employment upon any individual who participates in it. The grant of any Award under the Plan does not imply that any further Award will be granted nor that a Participant has any right
to receive any further Award. The terms of the Plan are separate from and do not form a term of or any part of or create any obligations or rights pursuant to an individual’s contract of employment. 

  
 12 

	12.2	Tax and other similar liabilities 

 Any liability of a Participant to taxation or social
security contributions or similar liabilities in respect of an Award shall be for the account of the relevant Participant. The Committee may make an Award and the release of Securities under it conditional on the Participant complying with
arrangements specified by the Committee for the payment of any taxation, employees’ social security contributions or employer’s social security obligations (including, without limitation, the deduction of taxation at source). 

 

	12.3	Notices 

 Any notice or other communication under or in connection with the Plan may be
given by personal delivery, electronically or by sending the same by post in the case of a company to its registered office, in the case of the Committee, to the registered office of the Company and in the case of an individual to his last known
address, or, where he is an employee of any member of the Group, either to his last known address or to the address of the place of business at which he performs the whole or substantially the whole of the duties of his employment. Where a notice or
other communication is given by first-class post, it shall be deemed to have been received 48 hours after it was put into the post properly addressed and stamped. 

 

	12.4	Data Protection provisions 

  

	 	(a)	The Company and any trustees, administrators and/or third parties (and/or their agents) who manage and administer the Plan on behalf of the Company will store and process information about a Participant on their
computers and in other ways. “Information about a Participant” means personal information the Company, any trustees, administrators and/or third parties (and/or their agents) have obtained from the Participant, the Employer and any other
Group companies or other organisations in anticipation of a Participant’s participation in the Plan and during the term of the Plan. 

  

	 	(b)	The Company, any trustees, administrators and/or third parties (and/or their agents) who manage and administer the Plan on behalf of the Company will use information about a Participant to manage and administer the
Plan, give the Participant information about the Plan and his Award, to develop and improve their services to the Participant and other customers and to protect their interests. Any trustees, administrators and/or third parties (and/or their agents)
agree to apply the same levels of protection to information about a Participant as the Company is required to in the UK. 

  

	 	(c)	The Company may give information about a Participant and his participation in the Plan to the following: 

  

	 	(i)	a Participant’s Employer and its agents or service providers where disclosure is necessary to enable the Company to discharge its duties and obligations in the management and administration of the Plan (including
any disclosure of information as may be necessary to enable the Employer to comply with the requirements of any relevant tax, social security or other governmental authority). (For the purposes of this Rule “Employer” includes any
company or other entity of the Group who may become the Participant’s employer during the term of the Plan and any other company or entity which has a duty to comply with any requirements imposed by any relevant tax, social security or other
governmental authority in connection with his participation in the Plan.) 

  

	 	(ii)	people who provide a service to the Company or are acting as its agents on the understanding that they will keep the information confidential. 

  
 13 

	 	(iii)	anyone to whom the Company transfers or may transfer their rights and duties under the Plan. 

  

	 	(iv)	where the Company has a duty to do so or if the law allows the Company to do so (including any relevant tax, social security or other governmental authority) 

Otherwise the Company will keep information about a Participant confidential. 

 

	 	(d)	If the Company transfers information about a Participant to a service provider or agent in another country, it will procure that the service provider or agent agrees to apply the same levels of protection as the Company
is required to apply in the UK and other EU jurisdictions and to use information about a Participant only for the purpose of providing the service to the Company. 

 

	12.5	Severability of Provisions 

 If any provision in this Plan is for any reason held by any
Court or other competent authority of any jurisdiction to be illegal, invalid or unenforceable in whole or in part, the remaining provisions of this Plan shall continue to be valid and, if appropriate, the affected provision and the legality,
validity or enforceability of such provision in any other jurisdiction shall be unaffected. 
  

	12.6	Third Parties 

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

	12.7	Awards not Pensionable 

 Awards, Securities and any other benefits provided under the
Plan shall not be pensionable. 
  

	12.8	Resolution of disputes 

 Any dispute arising out of or in connection with the Plan,
including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the LCIA Rules, which rules are deemed to be incorporated by reference into this Rule. In the event of
arbitration: 
  

	 	(a)	the number of arbitrators shall be one; 

  

	 	(b)	the seat, or legal place, of arbitration shall be London; 

  

	 	(c)	the language to be used in arbitral proceedings shall be English. 

 The Committee and, by
accepting the Award, any Participant waive any right of application to determine a preliminary point of law or appeal on a point of law under Sections 45 and 69 of the Arbitration Act 1996. 

 

	12.9	Governing Law 

 This Plan shall be construed, administered and governed in all respects
under and by the law of England and Wales. 

  
 14 

 SCHEDULE 1: SPECIAL PROVISIONS SCHEDULE 

The Special Provisions Schedule takes effect as if the Rules were set out in it incorporating the following modifications. 

Words or phrases in this Schedule 1 shall have the same meaning as in Rule 1.1 except as provided below. Except as noted in this Schedule 1, the Rules apply
to Awards granted under this Schedule 1. 
  

	A.	AWARDS FOR NEW JOINERS 

 For Eligible Employees who are New Joiners and who are granted
an Award under the Plan, the Rules are modified by deleting: 
  

	(a)	Rule 5.3(e) and replacing it with the following: 

 “5.3 (e) any other reason as
determined by the Committee in its absolute discretion,”; 
  

	(b)	Rule 5.3(f); and 

  

	(c)	The words “on or before the third anniversary of the Award Date” in Rule 5.4. 

 For
the purposes of this Schedule 1, “New Joiners” means any person who on the relevant Award Date is an Eligible Employee by reason of his having commenced employment within the Group in the six months (or such period as determined by
the Committee) preceding the Award Date and who is determined to be a New Joiner by the Committee. 
  

	B.	AWARDS TO OVERSEAS ELIGIBLE EMPLOYEES (NON-US) 

  

	1.	Brazil 

 For Eligible Employees resident in Brazil, the Rules are modified by the
deletion of the definition of “Award” in Rule 1.1 and its replacement with the following: 
 ““Award” means a
Conditional Award of Securities to Vest on the Vesting Dates applicable to the Award or an Option to acquire Securities for no payment which shall become exercisable in respect of each Vesting Portion on its applicable Vesting Date for a period of
90 days following which any unexercised Vesting Portion shall lapse.” 
  

	2.	Spain 

 For Eligible Employees resident in Spain, the Rules are modified so that Rule
5.3(e) shall not apply. 
  

	C.	UNITED STATES SPECIAL PROVISIONS1 

The following shall apply for all US Participants who are Eligible Employees. Where a Participant becomes a US Participant after the grant of
an Award, such Award is modified in a manner consistent with these provisions. 
 Notwithstanding anything in the Plan to the contrary,
Awards granted to a US Participant shall be subject to the following provisions, as applicable: 
  

	1 	No Awards in the form of nil-cost Options over Securities or other Options over Capital Instruments shall be granted to US Participants. 

  
 15 

	(a)	The Award Letter provided for Conditional Awards and Awards otherwise subject to section 409A of the United States Internal Revenue Code of 1988, as amended (“Section 409A”) shall include the scheduled
payment/settlement date(s) for such Award. 

  

	(b)	The grant of Dividend Shares and Coupon Equivalents shall not apply to Options. 

  

	(c)	Rule 3.2 (b) shall not apply unless the payment delay described in Rule 3.2(b) is legally required under applicable law (within the meaning of US Treasury Regulation Section 1.409A-2(b)(7)(ii)) or the payment
would otherwise would jeopardize the Company’s ability to continue as a “going concern” (within the meaning of US Treasury Regulation Section 1.409A-3(d)). 

 

	(d)	Notwithstanding anything to the contrary in Rule 3.5, if, at the time that an Award to a US Participant that is subject to Section 409A (other than an Award under which a Participant is determined not to have a
“legally binding right” within the meaning of Section 409A) is due to Vest, a Participant is Involved in an Investigation, then the Committee may decide at its discretion to lapse any such Award. Thereafter, the Committee, at its
absolute discretion, following consultation with the Participant’s Employer, may determine, within 5 years from the date of any such lapse, whether to grant such Participant a new Award on terms as determined by the Committee.

  

	(e)	Notwithstanding anything to the contrary in the Rules, payment/settlement with respect to any: 

  

	 	(i)	Provisional Allocation or other Award that is exempt from Section 409A or any Dividend Shares or Coupon Equivalents shall be made no later than 2 1⁄2 months following the end of the calendar year in which such Award or amount Vests; and 

  

	 	(ii)	Conditional Award or any other Award that is subject to Section 409A shall be made as soon as practicable following the scheduled payment/settlement date but in no event more than 30 days thereafter, except as
otherwise permitted under Section 409A; provided, however, that to the extent a Participant dies before the scheduled Vesting Date(s), such Participant’s Awards shall be paid/settled as soon as practicable following the date of death, but
only to the extent then Vested. 

  

	(f)	Notwithstanding anything in Rule 5.3 or Rule 6 to the contrary, in the case of a Conditional Award or other Award that is subject to Section 409A, the provisions of Rule 5.3 or 6, as the case maybe, may be invoked
to accelerate the Vesting of such Award but not the payment or settlement of such Award. Such Award shall be paid or settled on the originally-scheduled payment/settlement date, unless otherwise permitted under Section 409A. 

 

	(g)	Adjustments made pursuant to Rule 7 with respect to any Award granted to a US Participant shall be made in accordance with US Treasury Regulation Section 1.409A-1(b)(5). 

 

	(h)	To the extent that a Participant who has been granted an Option becomes subject to US taxation and his Option is determined to have been granted with an option price less than “fair market value” on the Award
Date as defined in US Treasury Regulation Section 1.409A-1(b)(5), his Option shall be exercisable only as follows: (i) if the Option is Vested in the year that the Participant becomes subject to US taxation, the Option shall be exercisable
only in the first calendar year after the year in which the Participant becomes subject to US taxation; and (ii) if the Option is not Vested in the year that the Participant becomes subject to US taxation, the Option shall be exercisable only
in the first calendar year after the year in which the substantial risk of forfeiture (within the meaning of Section 409A) lapses. 

  

	(i)	These provisions shall also apply to Cash Awards granted under Schedule 2 to the Plan to the same extent that these provisions apply to other Conditional Awards, Provisional Allocations or Options. 

 

	(j)	In the event that a Participant is a “specified employee” (within the meaning of US Treasury Regulation Section 1.409A-1(i)) as of the date of the Participant’s “separation from service”
(within the meaning of US Treasury Regulation Section 1.409A-1(h)) and if any Award both (i) constitutes a “deferral of compensation” within the meaning of Section 409A and (ii) cannot be paid or provided in the manner
otherwise provided without subjecting the Participant to “additional tax”, interest or penalties under Section 409A, then, to the extent necessary to avoid penalties under Section 409A, no Award that is a deferral of compensation
shall be paid or settled prior to the first day of the seventh month following the Participant’s separation from service. 

  
 16 

 SCHEDULE 2: CASH AWARDS 

The Rules of the Plan shall apply to a Cash Award granted or to be granted under this Schedule as if it was a Conditional Award, an Option or a Provisional
Allocation over Securities as determined by the Committee, except as set out in this Schedule. References in the Rules of the Plan to Securities shall be read as references to a cash sum where the context so requires. Where there is any conflict
between the Rules and this Schedule, the terms of this Schedule shall prevail. 
  

	(a)	The Committee may grant or procure the grant of a Cash Award. 

  

	(b)	The Committee shall determine the form of a Cash Award (Conditional Award, Option or Provisional Allocation) on or before the Award Date of that Cash Award. 

 

	(c)	Each Cash Award shall relate to a given number of notional Securities. 

  

	(d)	On or as soon as reasonably practicable after the Vesting of a Cash Award structured as a Conditional Award or a Provisional Allocation, the holder of that Award shall be entitled to a cash sum which shall be equal to
the “Cash Value” of the notional Vested Securities. 

  

	(e)	A Cash Award structured as an Option shall be exercisable in respect of notional Vested Securities for a period determined by the Committee at the Award Date in its absolute discretion (being a period of no longer than
10 years from the Award Date) beginning with the date on which the Cash Award Vests (unless it lapses earlier under Rule 5.4 or Rule 6). Following the exercise of a Cash Award structured as an Option, the holder of that Award shall be entitled to a
cash sum which shall be equal to the “Cash Value” of the notional Vested Securities less the Option Price (if any). 

  

	(f)	For the purposes of this Schedule: 

  

	 	(i)	the Cash Value of a notional Security is the Market Value of a Security on the date of Vesting of a Cash Award structured as a Conditional Award or a Provisional Allocation and on the date of exercise of a Cash
Award structured as an Option; and 

  

	 	(ii)	the Market Value of a Security on any day shall be determined in accordance with Rule 11.3. 

  

	(g)	Any cash sum payable under paragraphs (d) or (e) above shall be paid by the Employer as soon as practicable after the Vesting of the Cash Award under paragraph (d) or its exercise under paragraph (e), net
of any deductions (on account of any tax or social security or similar liabilities) as may be required by law. 

  

	(h)	For the avoidance of doubt, a Cash Award shall not confer any right on the holder of such an Award to receive Securities or any interest in Securities. 

  
 17

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