Document:

Exhibit 10.17

 

GROUP MANAGEMENT ANNUAL BONUS PLAN RULES

 

1.                                      Outline of Plan

 

1.1                               The objectives of the plan are to encourage participants to:

 

a)             deliver superior results by setting clear, measurable personal and business performance targets; and

 

b)             contribute as members of the senior management team to the achievement of AMEC plc performance targets;

 

and to reward achievement against these targets.

 

1.2                               The plan is overseen by the Remuneration Committee which, in relation to Designated Executives, retains absolute discretion over the setting of bonus targets, adjustment of the targets in the course of or at the end of the year if they deem this appropriate, and the judgement of performance.  This also applies for other participants in respect of the AMEC plc Performance Element (see 4 below).

 

1.3                               The plan year will run from 1 January to 31 December.   Payments in respect of each bonus year are normally made during March of the subsequent year subject to any voluntary elections by participants to receive bonus in the form of deferred shares (see 9 below).  However the Remuneration Committee may decide in advance that part of the bonus for any particular year will be compulsorily deferred in accordance with 3.4 below.

 

1.4                               It is anticipated that the plan will be continued from year to year but the Remuneration Committee reserves the right to withdraw or amend the plan by notifying participants at any time.

 

1.5                               These Rules apply to bonus years from 2014 onwards.

 

2.                                      Eligibility and Definitions

 

2.1                               All Executive Directors and other members of the Group Management Team will be included in the plan.

 

2.2                               In order to have any entitlement to bonus, including any deferred element, participants must remain in employment until payment is due to be made, except where their employment has terminated due to retirement with the Company’s consent or otherwise at the committee’s discretion.

 

2.3                              The relevant salary for all elements of bonus is the total basic salary received by each participant for that part of the plan year when they were included in that bonus plan i.e. joiners and leavers are included pro rata, as are salary changes for participants.

 

2.4                               Bonus will not be pensionable.

 

3.                                      Maximum Bonus Potential and allocation between elements

 

3.1                               The maximum bonus potential for the Chief Executive is 150%.  The maximum bonus potential for other Executive Directors is 125%.  The maximum bonus potential for other executives will be determined by the Chief Executive between

 

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60% and 100%.  In each case, these are percentages of relevant salary as defined at 2.3 above.

 

3.2                               The plan consists of four elements:

 

	
AMEC plc performance (EBITA and Cash)
    
	
Business Unit performance (EBITA and Cash)

Other business targets
    
	
Individual performance against defined   personal objectives
    

 

3.3                               The bonus allocation between these elements will vary from individual to individual according to their overall maximum and whether or not Business Unit targets are included, however the proportion of overall potential bonus allocated to the EBITA targets will be not less than half.

 

3.4                               For executive directors, part of their bonus opportunity equal to 25% of their salary will be subject to additional EBITA targets and will be deferred in accordance with the provisions in section 8 below

 

4.                                      AMEC plc Performance Element

 

4.1                               A realistic, stretching but achievable Maximum performance level will be set each year that is consistent with the highest potential level of EBITA for the year. Maximum bonus under this element will be earned if this performance level is met.

 

4.2                               A Target performance level for the year will also be set, normally in line with the approved Short Range Plan.

 

4.3                               A Threshold performance level for the year will also be set.  No bonus will be payable under this element for achievement of less than Threshold.  Under normal circumstances, the threshold will be greater than the previous year’s actual result, thus ensuring that no bonus will be payable under this element unless EBITA grows year on year.

 

Maximum and Threshold performance levels will be recommended by the Chief Executive to the Remuneration Committee following approval of the Short Range Plan.

 

4.4                               Where the result falls between two of the set targets, the actual bonus payable will be determined on a straight line sliding scale between the amounts payable at those two targets.

 

4.5                               The proportion of maximum bonus on this element payable for the achievement of Threshold or Target performance may vary from year to year as determined by the Remuneration Committee.

 

4.6                               A further stretch target above the Maximum will be set in respect of the deferred bonus element for executive directors referred to under 3.4 above.  Bonus will be earned on a straight line basis running from Nil at Maximum to 25% of salary at the higher stretch target.

 

4.7                               Cash targets for AMEC plc will also be established following the same principles.

 

4.8                               The definitions for EBITA and Cash will be confirmed each year as part of the target setting.

 

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5.                                      Business Unit Performance Element

 

5.1                               Business Unit EBITA and Cash targets for the year will be established following the same principles as outlined above.

 

5.2                               Business Unit targets will apply to those participants who have operational responsibilities and will relate to the unit or units for which they are responsible.

 

6.                                      Other Business Targets

 

6.1                               Other business performance targets may be set for members of the Management Team collectively or for individual members, in line with the company’s strategic objectives and non-financial KPIs.

 

7.                                      Individual Performance Element

 

7.1                               Individuals may be paid an element of their bonus based on the achievement of a number of predetermined personal targets.   This will operate independently of the other elements.

 

7.2                               This element of bonus may be split amongst a number of personal targets.   The number of targets and the proportion of total bonus allocated to each target may vary between individuals.   A sliding scale of differing levels of bonus for different levels of achievement may be included.  Targets should, as far as possible, be specific and measurable, and normally be achievable during the period in question.

 

7.3                               In the case of Designated Executives other than himself, personal targets will be recommended to the Remuneration Committee by the Chief Executive.  Personal targets for the Chief Executive will be recommended by the Chairman.  In the case of other participants, personal targets will be agreed between participants and the Chief Executive as soon as possible in the relevant plan year or within one month of joining the scheme for those not included at the start of the year.   Copies will be lodged with Group Human Resources.

 

7.4                               Achievement against personal targets will be assessed at the end of the year and the appropriate level of payment will be recommended to the Remuneration Committee by the Chief Executive in the case of Executive Directors other than himself.  Achievement and payment for the Chief Executive will be recommended by the Chairman.  Achievement and payment for other executives will be determined by the Chief Executive.

 

8.                                      Compulsory Deferred bonus

 

8.1                               Deferred bonus earned in relation to 3.4 above will be converted, after tax, into AMEC plc shares based on the Market Value (defined in the same way as under the Performance Share Plan) at the date when the normal annual bonus is paid. These shares will be held for a three year deferral period by the Trustee of the AMEC Employee Share Trust.

 

8.2                               During the deferral period, the individual will have beneficial ownership of the shares, including the right to receive dividends on them, but will not be able to sell, pledge or otherwise encumber them except to designate them as Investment Shares in relation to an award under the Performance Share Plan.

 

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8.3                               In the event that the individual leaves employment before the end of the deferral period for reasons of resignation to take up another full-time job or dismissal for gross misconduct, the deferred shares will be forfeit.  In the event of leaving for other reasons, the Remuneration Committee will have the discretion to decide whether to release the deferred shares at the time of leaving or at the end of the original deferral period.

 

8.4                               In the event that, before the end of the deferral period, the accounts for the year for which the shares were earned are required to be restated for a correction of a prior period error, as defined by International Account Standard 8 (Accounting Policies, changes in Accounting Estimates and Errors), the Remuneration Committee may determine that some or all, at its discretion, of the deferred shares will be forfeit.

 

9.                                      Voluntary Deferred bonus

 

9.1                               Prior to the amount of bonus earned for the year being determined, participants may elect to receive that portion of their bonus that would otherwise be due as a cash payment in the form of a nil cost option over AMEC plc shares. The committee retains full discretion as to whether to permit this for any particular year.

 

9.2                               In the event that voluntary elections are agreed, the gross amount of bonus will be converted into AMEC plc shares based on the Market Value (defined in the same way as under the Performance Share Plan) at the date when the normal annual bonus is paid and instead of receiving bonus the individual will be given an option over that number of shares.  The number of shares will be increased to take account of any dividends that become payable in the period between grant and exercise.

 

9.3                               The option may not be exercised until 3 months after the date of grant and may then be exercised at any time within the following 6 months. The requisite number of shares may be sold and the amounts realised retained by the Company in order to meet any tax with-holding required at either the point of vesting or exercise.

 

9.4                               In the event that the individual leaves employment before the option becomes exercisable for reasons of resignation to take up another full-time job or dismissal for gross misconduct, the option will lapse and the deferred bonus will be forfeit.  In the event of leaving for other reasons, the Remuneration Committee will have the discretion to decide whether to permit the early exercise of the option or for it to continue to subsist and be exercised in accordance with the original terms.

 

Note: Where Deferred Bonus shares that have been used as Investment Shares in relation to an award under the Performance Share Plan become forfeit or lapse prior to vesting, this will also apply to the associated Matched Share award, in accordance with the rules of that plan.

 

5 March 2014

 

4Exhibit 10.18

 

AGREED FORM

 

Form of Mandate Agreement

 

Mandate Agreement

 

dated as of [date]

 

by and between

 

[Ares], [place]

 

(hereinafter the Principal)

 

and

 

[Remaining Company Board Member]

 

(hereinafter the Agent)

 

 

1.                            The Principal submitted a public tender offer (the Offer) to acquire all issued and to be issued registered shares with a nominal value of CHF 3.00 each of the capital of [Zeus], [place] (hereinafter the Company). The Agent is a member of the board of directors of the Company, in his capacity as an individual, and not as a representative, employee, member, shareholder or partner of a corporate entity or partnership.

 

Subject to and with effect from the consummation of the Offer (the Offer Closing), the Agent herewith agrees to serve in a fiduciary capacity as a non-executive member of the board of directors of the Company with joint signatory power in accordance with the terms of this mandate agreement (the Agreement).

 

2.                            The Principal herewith designates its [function] (presently Mr. [name]) and its [function] (presently Mr. [name]) to be the sole persons authorized, each individually, to instruct the Agent (hereinafter each, a Designee).

 

Subject to the immediately following paragraph of this Article 2 and Article 10, the Agent agrees to comply with and act in accordance with the instructions of the Principal, such instructions to be delivered to the Agent in written form by either of the Designees or directly by the Principal in accordance with the last paragraph of this Article 2 at least 5 business days prior to the Agent being required to take any specified action, unless the matter in question and such action are urgent. If more than one person is entitled to give instructions as or on behalf of the Principal or as Designee, the Agent may follow the instructions of any one of them without previously contacting the other persons so entitled.

 

In carrying out the instructions of the Principal, the Agent shall comply with the rules imposed by law and the articles of association and by-laws of the Company and the Agent shall inform the Designee if in [his|her] view the instructions given violate such rules (including [his|her] fiduciary duties) or conflict with the Agent’s rights or obligations under the Implementation Agreement (as defined in Article 10). In any such case, the Principal and the Agent shall consult in good faith with a view to resolve the issue (if any). In case after such consultation the Agent remains in doubt whether or not an instruction is in violation of the Agent’s duties or in conflict with the Agent’s rights or obligations under the Implementation Agreement [he|she] shall be entitled to obtain, at reasonable cost to be borne by the Principal, written legal advice from an independent legal advisor appointed by the Agent on this question, and shall provide the Principal with a copy of such legal advice. The Agent shall, after having obtained such legal advice, not be obliged to follow any instructions which, based thereon, [he|she] considers as being against the law, including as violating [his|her] fiduciary duties, or in conflict with the Agent’s rights or obligations under the Implementation Agreement.

 

The Agent shall in no event be under an obligation to follow any instructions which would result in the Agent not acting in line with all applicable laws and regulations including [his|her] fiduciary duties as a member of the board of directors of the Company.

 

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If [both] Designees resign, or if they are no longer able to instruct the Agent, the Principal shall appoint one or several new Designees. Except as provided for in Article 3 of this Agreement, prior to the designation of a new Designee, the Agent shall only comply with written instructions duly signed by authorized signatories of the Principal.

 

3.                            If the Principal is not able to, or if he fails to, timely issue necessary instructions, or if the interests of the Company require immediate action and the Agent is not able to obtain any instructions, then the Agent shall to the best of [his|her] knowledge act in the best interests of the Company and in accordance with Article 2, paragraph 2 of this Agreement.

 

4.                            From the Offer Closing, during the term of this Agreement and following its termination, the Principal shall neither directly nor indirectly and procures that the Company will not assert any claims for monetary damages against the Agent in [his|her] capacity as agent under this Agreement and/or director of the Company; provided, however, that notwithstanding the foregoing, the Principal and any other person may at any time assert claims for, or based upon, fraud, unlawful intent (Absicht) or gross negligence.

 

The Principal hereby waives and procures that the Company will waive any claims as against the Agent and releases and procures that the Company will release the Agent from any responsibility arising out of or in connection with the Agent’s actions or omissions in the direction and management of the Company made in accordance and compliance with the Principal’s instructions or Article 3.

 

5.                            Indemnity

 

a.              Subject to Article 5(b), during the term of this Agreement and following its termination, the Principal shall, on the Agent’s demand, indemnify, release, discharge and hold the Agent harmless from and against any and all costs, charges (including but not limited to any reasonable legal costs and professional charges), expenses, losses, damages, penalties, interest and liabilities of whatever nature  (“Liability”) sustained or incurred by the Agent in connection with the Agent complying with the terms of this Agreement or arising out of or in connection with any claim, demand, proceeding, investigation or other action (“Claim”) which the Agent may sustain or incur in connection with the Agent complying with and acting in accordance with the instructions of the Principal issued (whether directly or through a Designee) pursuant to this Agreement (including, in each case, any cost incurred in enforcing this indemnity or making an insurance claim pursuant to Article 5(b)). The Principal agrees to indemnify the Agent based on agreed or customary rates for the time spent in defending any Claims.

 

b.              Subject to Article 11, the indemnity in Article 5(a) shall not apply to the extent that:

 

i.                            the Agent recovers the amount of the Liability from any other person (including without limitation under any policy of insurance) (save that any costs incurred in making such recovery including the amount of any

 

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excess or deductible or increased premium incurred by the Agent and any tax incurred as a result of the receipt of such recovery shall be deducted from the amount that the Agent is deemed to have recovered); or

 

ii.                         the amount of the Liability is covered either by the indemnity provided by the Company to the Agent in connection with the Agent’s directorship of the Company or by the Principal to the Agent in connection with the Agent’s directorship of the Principal and its subsidiaries, in which case the Agent shall (unless such coverage is contingent upon the Agent having first exhausted his rights under the indemnity provided by this Agreement) claim under the relevant indemnity before making any claim under the indemnity in Article 5(a) above; or

 

iii.                      the Liability arises from the fraud or fraudulent concealment, wilful default or gross negligence of the Agent.

 

c.               Irrespective of any limitation according to Article 5(b), the Principal agrees to reimburse or, at the discretion of the Agent and upon its first request, advance to the Agent all costs of proceedings and of reasonable attorneys’ and other fees and expenses incurred in analysing and defending Claims.

 

6.                            In view of the statutory provisions on Swiss withholding tax and the responsibility of the members of board of directors related thereto, the Principal shall, subject to and with effect from the Offer Closing, at any time as necessary and on the Agent’s demand, make available to the Company in Switzerland liquid assets or any other appropriate security in an amount equal to the applicable withholding tax on the Company’s reported and accrued earnings in the current financial year.

 

7.                            For its services as a member of the board of directors, from the Offer Closing the Agent shall receive from Principal or the Company an annual fee of CHF [20,000] plus reimbursement of all social charges and expenses levied or incurred in connection therewith. The fee shall be payable pro rata if the Agent serves as a member of the board of directors for less than an entire year. From the Offer Closing, the Principal shall procure that the Company pay such fee.

 

8.                            If the Principal terminates this Agreement after the Offer Closing, the Agent shall resign from the board of directors of the Company in accordance with the Principal’s instructions. If the Agent terminates this Agreement after the Offer Closing the Agent shall, unless mutually agreed otherwise, resign from the board of directors of the Company with immediate effect. Further, in case of resignation of the Agent as director this Agreement shall be terminated as of the date the resignation becomes effective.

 

The provisions in Articles 4, 5, 6, 8, 9 and 11 shall survive the termination of this Agreement.

 

9.                            Subject to and with effect from the Offer Closing, and except in the case of fraud, unlawful intent (Absicht) or gross negligence, the Principal shall vote its shares of the Company

 

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in favor of the Agent’s discharge at each relevant ordinary shareholders’ meeting where a vote is to be held on the Agent’s discharge in its function as a non-executive member of the board of directors of the Company while having acted in a fiduciary capacity under this Agreement.

 

10.                     Nothing contained in this Agreement shall in any way limit the parties’ rights or obligations under or in connection with the implementation agreement dated February 13, 2014, entered into by Principal and the Company in connection with the Offer (as amended from time to time) (the “Implementation Agreement”) and the rights and benefits under this Agreement shall be in addition to any rights and benefits under the Implementation Agreement.  In particular, the terms of this Agreement are without prejudice to any discretions or decisions granted or delegated to the Agent pursuant to the terms of the Implementation Agreement (including, but without limitation, pursuant to clause 9.5 thereof).

 

11.                     The parties to this Agreement agree that the purpose of the indemnity in Article 5 is to provide the Agent with coverage in relation to any liability or loss incurred by the Agent in connection with its compliance with the terms of this Agreement in circumstances where the director indemnities and D&O insurance provided to the Agent by the Principal and the Company do not cover any or all of such liability or loss. For the avoidance of doubt, nothing in Article 5 (and, in particular, Article 5(b)) is intended to prejudice the Agent’s ability to bring claims under any insurance policies or other indemnity provisions in relation to the Agent’s general activities as a director of the Principal or the Company.

 

12.                     This Agreement shall be governed by and construed in accordance with the substantive laws of Switzerland; in particular in accordance with the rules applicable to ordinary mandate agreements according to article 394 et seq. Swiss Code of Obligations.

 

All disputes arising out of or in connection with this Agreement shall be resolved, to the exclusion of the ordinary courts, by a sole arbitrator in accordance with the Swiss Rules of International Arbitration of the Swiss Chambers of Commerce in force on the date when the notice of arbitration is submitted in accordance with these rules. The seat of the arbitral tribunal shall be in Zurich. The arbitral proceedings shall be conducted in English.

 

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The Principal:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The Agent:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    

 

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