Document:

EX-10.10

 Exhibit 10.10 

RETENTION AGREEMENT 

This Retention Agreement (the “Agreement”) is entered into as of
                    , 2015 (the “Effective Date”) by and between
            (the “Executive”) and FitBit, Inc., a Delaware corporation (the “Company”). 

1. Term of Agreement. 
 Except to the
extent renewed as set forth in this Section 1, this Agreement shall terminate the earlier of the third (3rd) anniversary of the Effective Date (the “Expiration Date”) or
the date the Executive’s employment with the Company terminates for a reason other than a Qualifying Termination or CIC Qualifying Termination; provided however, if a definitive agreement relating to a Change in Control has been signed
by the Company on or before Expiration Date, then this Agreement shall remain in effect through the earlier of: 
 (a) The date the
Executive’s employment with the Company terminates for a reason other than a Qualifying Termination or CIC Qualifying Termination, or 

(b) The date the Company has met all of its obligations under this Agreement following a termination of the Executive’s employment with
the Company due to a Qualifying Termination or CIC Qualifying Termination. 
 This Agreement shall renew automatically and continue in
effect for three (3) year periods measured from the initial Expiration Date, unless the Company provides Executive notice of non-renewal at least three (3) months prior to the date on which this Agreement would otherwise renew. For the
avoidance of doubt, and notwithstanding anything to the contrary in Section 2 or 3 below, the Company’s non-renewal of this Agreement shall not constitute a Qualifying Termination or CIC Qualifying Termination. 

2. Qualifying Termination. If the Executive is subject to a Qualifying Termination, then, subject to Sections 4, 9, and 10 below, Executive will be
entitled to the following benefits: 
 (a) Severance Benefits. The Company shall pay the Executive [twelve (12)]*[nine (9)]** months of his or her monthly base salary (at the rate in effect immediately prior to the actions that resulted in the Qualifying
Termination). Such severance payment shall be paid in accordance with the Company’s standard payroll procedures. The Executive will receive his or her severance payment in a cash lump-sum which will be made on the first business day occurring
after the sixtieth (60th) day following the Separation, provided that the Release Conditions have been satisfied. 

(b) Continued Employee Benefits. If Executive timely elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act
(“COBRA”), the Company shall pay the full amount of Executive’s COBRA premiums on behalf of the Executive for the Executive’s continued coverage under the Company’s health, dental and vision plans, including coverage
for the Executive’s eligible dependents, for the [twelve (12)]*[nine (9)]** month period following the Executive’s Separation or, if
earlier, until Executive is eligible to be covered under another substantially equivalent medical insurance plan by a subsequent employer. Notwithstanding the foregoing, if the Company, in its sole discretion, determines that it cannot provide the
foregoing subsidy of COBRA coverage without potentially violating or causing the Company to incur additional expense as a result of noncompliance with applicable law (including, without limitation, Section 2716 of the Public Health Service
Act), the Company instead shall provide to Executive a taxable monthly payment in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue the group health coverage in effect on the date of the 

 

	*	For our President and Chief Executive Officer. 

	**	 For our other executive officers, including our other named executive officers. 

 
Separation (which amount shall be based on the premium for the first month of COBRA coverage), which payments shall be made regardless of whether Executive elects COBRA continuation coverage and
shall commence on the later of (i) the first day of the month following the month in which Executive experiences a Separation and (ii) the effective date of the Company’s determination of violation of applicable law, and shall end on
the earlier of (x) the effective date on which Executive becomes covered by a health, dental or vision insurance plan of a subsequent employer, and (y) the last day of the period [twelve
(12)]*[nine (9)]** months after the Separation, provided that, any taxable payments under Section 2(b) will not be paid before the
first business day occurring after the sixtieth (60th) day following the Separation and, once they commence, will include any unpaid amounts accrued from the date of Executive’s
Separation (to the extent not otherwise satisfied with continuation coverage). However, if the period comprising the sum of the sixty (60)-day period described in the preceding sentence and the ten (10)-day period described in Section 7(e)(3)
below spans two calendar years, then the payments which constitute deferred compensation subject to Section 409A will not in any case be paid in the first calendar year. Executive shall have no right to an additional gross-up payment to account
for the fact that such COBRA premium amounts are paid on an after-tax basis. 
 3. CIC Qualifying Termination. If the Executive is subject to a CIC
Qualifying Termination, then, subject to Sections 4, 9, and 10 below, Executive will be entitled to the following benefits: 
 (a)
Severance and Bonus Payments. The Company or its successor shall pay the Executive (i) [eighteen (18)]*[twelve (12)]** months of
his or her monthly base salary (at the rate in effect immediately prior to the actions that resulted in the Separation) and
(ii) [150%]*[100%]** of Executive’s then-current target bonus opportunity. Such payment shall be paid in a cash lump sum payment in
accordance with the Company’s standard payroll procedures, which payment will be made on the first business day occurring after the sixtieth (60th) day following the Separation,
provided that the Release Conditions have been satisfied. 
 (b) Equity. Each of Executive’s then outstanding Equity
Awards, including awards that would otherwise vest only upon satisfaction of performance criteria, shall accelerate and become vested and exercisable as to [100% of the total shares underlying the Equity Award]***. “Equity Awards” means all options to purchase shares of Company common stock as well as any and all other stock-based awards granted to the Executive, including but not limited to
stock bonus awards, restricted stock, restricted stock units or stock appreciation rights. Subject to Section 4, the accelerated vesting described above shall be effective as of the Separation. 

(c) Pay in Lieu of Continued Employee Benefits. If Executive timely elects continued coverage under the Consolidated Omnibus Budget
Reconciliation Act (“COBRA”), the Company or its successor shall pay the full amount of Executive’s COBRA premiums on behalf of the Executive for the Executive’s continued coverage under the Company’s health, dental
and vision plans, including coverage for the Executive’s eligible dependents, for the [eighteen (18)]*[twelve (12)]** month period
following the Executive’s Separation or, if earlier, until Executive is eligible to be covered under another substantially equivalent medical insurance plan by a subsequent employer. Notwithstanding the foregoing, if the Company, in its sole
discretion, determines that it cannot provide the foregoing subsidy of COBRA coverage without potentially violating or causing the Company to incur additional expense as a result of noncompliance with applicable law (including, without limitation,
Section 2716 of the Public Health Service Act), the Company instead shall provide to Executive a taxable monthly payment in an amount equal to the monthly COBRA premium that Executive would be required to pay to continue the group health
coverage in effect on the date of the Separation (which amount shall be based on the premium for the first month of COBRA coverage), which payments shall be made regardless of whether Executive elects COBRA continuation coverage, shall commence on
the later of (i) the first day of the month following the month in which Executive experiences a Separation and (ii) the effective date of the 

 

	*	For our President and Chief Executive Officer. 

	**	For our other executive officers, including our other named executive officers. 

	***	 For our executive officers, including our named executive officers. 

  
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Company’s determination of violation of applicable law, and shall end on the earlier of (x) the effective date on which Executive becomes covered by a health, dental or vision insurance
plan of a subsequent employer, and (y) the last day of the period [eighteen (18)]*[twelve (12)]** months after the Separation, provided
that, any taxable payments under Section 3(c) will not be paid before the first business day occurring after the sixtieth (60th) day following the Separation and, once they commence,
will include any unpaid amounts accrued from the date of Executive’s Separation (to the extent not otherwise satisfied with continuation coverage). However, if the period comprising the sum of the sixty (60)-day period described in the
preceding sentence and the ten (10)-day period described in Section 7(e)(3) below spans two calendar years, then the payments which constitute deferred compensation subject to Section 409A will not in any case be paid in the first calendar
year. Executive shall have no right to an additional gross-up payment to account for the fact that such COBRA premium amounts are paid on an after-tax basis. 

4. General Release. Any other provision of this Agreement notwithstanding, the benefits under Section 2 and 3 shall not apply unless the Executive
(i) has executed a general release (in a form prescribed by the Company) of all known and unknown claims that he or she may then have against the Company or persons affiliated with the Company and such release has become effective and
(ii) has agreed not to prosecute any legal action or other proceeding based upon any of such claims. The release must be in the form prescribed by the Company, without alterations (this document effecting the foregoing, the
“Release”). The Company will deliver the form of Release to the Executive within thirty (30) days after the Executive’s Separation. The Executive must execute and return the Release within the time period specified in the
form. 
 5. Accrued Compensation and Benefits. Notwithstanding anything to the contrary in Section 2 and 3 above, in connection with any
termination of employment upon or following a Change in Control (whether or not a Qualifying Termination or CIC Qualifying Termination), the Company shall pay Executive’s earned but unpaid base salary and other vested but unpaid cash
entitlements for the period through and including the termination of employment, including unused earned vacation pay and unreimbursed documented business expenses incurred by Executive prior to the date of termination (collectively “Accrued
Compensation and Expenses”), as required by law and the applicable Company plan or policy. In addition, Executive shall be entitled to any other vested benefits earned by Executive for the period through and including the termination date
of Executive’s employment under any other employee benefit plans and arrangements maintained by the Company, in accordance with the terms of such plans and arrangements, except as modified herein (collectively “Accrued
Benefits”). Any Accrued Compensation and Expenses to which the Executive is entitled shall be paid to the Executive in cash as soon as administratively practicable after the termination, and, in any event, no later than two and one-half
(2-1/2) months after the end of the taxable year of the Executive in which the termination occurs or at such earlier time as may be required by Section 10 below or to such lesser extent as may be mandated by Section 9 below. Any Accrued
Benefits to which the Executive is entitled shall be paid to the Executive as provided in the relevant plans and arrangements. 
 6. Covenants. 

(a) Non-Competition. The Executive agrees that, during his or her employment with the Company, he or she shall not engage in any other
employment, consulting or other business activity (whether full-time or part-time) that would create a conflict of interest with the Company. 

(b) Cooperation and Non-Disparagement. The Executive agrees that, during the six (6) month period following his or her cessation
of employment, he or she shall cooperate with the Company in every reasonable respect and shall use his or her best efforts to assist the Company with the transition of Executive’s duties to his or her successor. The Executive further agrees
that, during this six-month period, he or she shall not in any way or by any means disparage the Company, the members of the Company’s Board of Directors or the Company’s officers and employees. 

 

	*	For our President and Chief Executive Officer. 

	**	For our other executive officers, including our other named executive officers. 

  
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 7. Definitions. 

(a) “Cause” means (a) an unauthorized use or disclosure by Executive of the Company’s confidential information or
trade secrets, which use or disclosure causes material harm to the Company, (b) a material breach of any agreement between Executive and the Company, (c) a material failure to comply with the Company’s written policies or rules that
has caused or is reasonably likely to cause material injury to the Company, its successor, or its affiliates, or any of their business, (d) conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of
the United States or any state thereof, (e) willful misconduct that has caused or is reasonably likely to cause material injury to the Company, its successor, or its affiliates, or any of their business, (f) embezzlement, (g) failure
to cooperate with the Company in any investigation or formal proceeding if the Company has requested Executive’s reasonable cooperation, or (h) a continued failure to perform assigned duties after receiving written notification of such
failure from the Company’s Chief Executive Officer (or, in the case of the Chief Executive Officer, from the Board of Directors); provided that Executive must be provided with written notice of Executive’s termination for
“Cause” and Executive must be provided with a thirty (30) day period following Executive’s receipt of such notice to cure the event(s) that trigger “Cause,” with the Company’s Board of Directors making the final
determination whether Executive has cured any Cause. 
 (b) “Code” means the Internal Revenue Code of 1986, as amended.

 (c) “Change in Control.” For all purposes under this Agreement, a Change in Control shall mean a “Corporate
Transaction,” as such term is defined in the Company’s 2015 Equity Incentive Plan, as may be amended from time to time, provided that the transaction (including any series of transactions) also qualifies as a change in control under
U.S. Treasury Regulation 1.409A-3(i)(5)(v) or 1.409A-3(i)(5)(vii). 
 (d) “CIC Qualifying Termination” means a Separation
(A) within twelve (12) months following a Change in Control or (B) within three (3) months preceding a Change in Control (but as to part (B), only if the Separation occurs after a Potential Change in Control) resulting, in either
case (A) or (B), from (i) the Company terminating the Executive’s employment for any reason other than Cause or (ii) the Executive voluntarily resigning his or her employment for Good Reason. A termination or resignation due to
the Executive’s death or disability shall not constitute a CIC Qualifying Termination. A “Potential Change in Control” means the date of execution of a legally binding and definitive agreement for a corporate transaction which,
if consummated, would constitute the applicable Change in Control (which for the avoidance of doubt, would include a merger agreement, but not a term sheet for a merger agreement). In the case of a termination following a Potential Change in Control
and before a Change in Control, solely for purposes of benefits under this Agreement, the date of Separation will be deemed the date the Change in Control is consummated. 

(e) “Good Reason” means, without the Executive’s consent, (i) a material reduction in the Executive’s level of
responsibility and/or scope of authority, (ii) a reduction by more than 10% in Executive’s base salary (other than a reduction generally applicable to executive officers of the Company and in generally the same proportion as for the
Executive), or (iii) relocation of the Executive’s principal workplace by more than thirty-five (35) miles from Executive’s then current place of employment. For the purpose of clause (i), a change in responsibility shall not be
deemed to occur (A) solely because Executive is part of a larger organization or (B) solely because of a change in title. For the Executive to receive the benefits under this Agreement as a result of a voluntary resignation under this
subsection (e), all of the following requirements must be satisfied: (1) the Executive must provide notice to the Company of his or her intent to assert Good Reason within sixty (60) days of the initial existence of one or more of the
conditions set forth in subclauses (i) through (iii); (2) the Company will have thirty (30) days (the “Company Cure Period”) from the date of such notice to remedy the condition and, if it does so, the Executive may
withdraw his or her resignation or may resign with no benefits; and (3) any termination of employment under this provision must occur within ten (10) days of the earlier of expiration of the

  
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Company Cure Period or written notice from the Company that it will not undertake to cure the condition set forth in subclauses (i) through (iii). Should the Company remedy the condition as
set forth above and then one or more of the conditions arises again within twelve months following the occurrence of a Change in Control, the Executive may assert Good Reason again subject to all of the conditions set forth herein. 

(f) “Release Conditions” mean the following conditions: (i) Company has received the Executive’s executed Release
and (ii) any rescission period applicable to the Executive’s executed Release has expired. 
 (g) “Qualifying
Termination” means a Separation that is not a CIC Qualifying Termination, but which results from (i) the Company terminating the Executive’s employment for any reason other than Cause or (ii) the Executive voluntarily
resigning his or her employment for Good Reason. A termination or resignation due to the Executive’s death or disability shall not constitute a Qualifying Termination. 

(h) “Separation” means a “separation from service,” as defined in the regulations under Section 409A of the
Code. 
 8. Successors. 
 (a)
Company’s Successors. The Company shall require any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or
assets, by an agreement in substance and form satisfactory to the Executive, to assume this Agreement and to agree expressly to perform this Agreement in the same manner and to the same extent as the Company would be required to perform it in the
absence of a succession. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets or which becomes bound by this Agreement by operation of law. 

(b) Executive’s Successors. This Agreement and all rights of the Executive hereunder shall inure to the benefit of, and be
enforceable by, the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 

9. Golden Parachute Taxes. 
 (a) Best
After-Tax Result. In the event that any payment or benefit received or to be received by Executive pursuant to this Agreement or otherwise (“Payments”) would (i) constitute a “parachute payment” within the meaning
of Section 280G of the Code and (ii) but for this subsection (a), be subject to the excise tax imposed by Section 4999 of the Code, any successor provisions, or any comparable federal, state, local or foreign excise tax
(“Excise Tax”), then, subject to the provisions of Section 10, such Payments shall be either (A) provided in full pursuant to the terms of this Agreement or any other applicable agreement, or (B) provided as to such
lesser extent which would result in no portion of such Payments being subject to the Excise Tax (“Reduced Amount”), whichever of the foregoing amounts, taking into account the applicable federal, state, local and foreign income,
employment and other taxes and the Excise Tax (including, without limitation, any interest or penalties on such taxes), results in the receipt by Executive, on an after-tax basis, of the greatest amount of payments and benefits provided for
hereunder or otherwise, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax. Unless the Company and Executive otherwise agree in writing, any determination required under this Section shall be made by
independent tax counsel designated by the Company and reasonably acceptable to Executive (“Independent Tax Counsel’), whose determination shall be conclusive and binding upon Executive and the Company for all purposes. For purposes
of making the calculations required under this Section, Independent Tax Counsel may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code; provided that Independent Tax Counsel shall assume that Executive pays all taxes at the highest marginal rate. The Company and Executive shall furnish to Independent Tax Counsel such information and
documents as 

  
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Independent Tax Counsel may reasonably request in order to make a determination under this Section. The Company shall bear all costs that Independent Tax Counsel may reasonably incur in
connection with any calculations contemplated by this Section. In the event that Section 9(a)(ii)(B) above applies, then based on the information provided to Executive and the Company by Independent Tax Counsel, Executive may, in
Executive’s sole discretion and within thirty (30) days of the date on which Executive is provided with the information prepared by Independent Tax Counsel, determine which and how much of the Payments (including the accelerated vesting of
equity compensation awards) to be otherwise received by Executive shall be eliminated or reduced (as long as after such determination the value (as calculated by Independent Tax Counsel in accordance with the provisions of Sections 280G and 4999 of
the Code) of the amounts payable or distributable to Executive equals the Reduced Amount). If the Internal Revenue Service (the “IRS”) determines that any Payment is subject to the Excise Tax, then Section 9(b) hereof shall
apply, and the enforcement of Section 9(b) shall be the exclusive remedy to the Company. 
 (b) Adjustments. If, notwithstanding
any reduction described in Section 9(a) hereof (or in the absence of any such reduction), the IRS determines that Executive is liable for the Excise Tax as a result of the receipt of one or more Payments, then Executive shall be obligated to
surrender or pay back to the Company, within one-hundred twenty (120) days after a final IRS determination, an amount of such payments or benefits equal to the “Repayment Amount.” The Repayment Amount with respect to such
Payments shall be the smallest such amount, if any, as shall be required to be surrendered or paid to the Company so that Executive’s net proceeds with respect to such Payments (after taking into account the payment of the Excise Tax imposed on
such Payments) shall be maximized. Notwithstanding the foregoing, the Repayment Amount with respect to such Payments shall be zero (0) if a Repayment Amount of more than zero (0) would not eliminate the Excise Tax imposed on such Payments
or if a Repayment Amount of more than zero would not maximize the net amount received by Executive from the Payments. If the Excise Tax is not eliminated pursuant to this Section 9(b), Executive shall pay the Excise Tax. 

10. Miscellaneous Provisions. 
 (a)
Section 409A. To the extent (i) any payments to which Executive becomes entitled under this Agreement, or any agreement or plan referenced herein, in connection with Executive’s termination of employment with the Company
constitute deferred compensation subject to Section 409A of the Code and (ii) Executive is deemed at the time of such termination of employment to be a “specified” employee under Section 409A of the Code, then such payment
or payments shall not be made or commence until the earlier of (i) the expiration of the six (6)-month period measured from the Executive’s Separation; or (ii) the date of Executive’s death following such Separation; provided,
however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to Executive, including (without limitation) the additional twenty percent (20%) tax for which Executive would otherwise be liable
under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in
the absence of this paragraph shall be paid to Executive or Executive’s beneficiary in one lump sum (without interest). Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind
benefit under this Agreement (or otherwise referenced herein) is determined to be subject to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in
one calendar year shall not affect the expenses eligible for reimbursement or in kind benefits to be provided in any other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar
year in which Executive incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit. To the extent that any provision of this Agreement is
ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such
construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of
Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under 

  
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another provision of Section 409A. Payments pursuant to this Agreement (or referenced in this Agreement) are intended to constitute separate payments for purposes of
Section 1.409A-2(b)(2) of the regulations under Section 409A. 
 (b) Other Arrangements. This Agreement supersedes any and
all cash severance arrangements and vesting acceleration arrangements on change in control under any prior option agreement, restricted stock unit agreement, severance and salary continuation arrangements, programs and plans which were previously
offered by the Company to the Executive, including change in control severance arrangements and vesting acceleration arrangements pursuant to an employment agreement or offer letter, and Executive hereby waives Executive’s rights to such other
benefits[, provided that, this Agreement shall not supersede the acceleration referenced in that certain Stock Option Agreement, by and between Executive and the Company representing an option grant on August 7, 2014]. In no event shall
any individual receive cash severance benefits under both this Agreement and any other severance pay or salary continuation program, plan or other arrangement with the Company. For the avoidance of doubt, in no event shall Executive receive payment
under both Section 2 and Section 3 with respect to Executive’s Separation. 
 (c) Dispute Resolution. To ensure rapid
and economical resolution of any and all disputes that might arise in connection with this Agreement, Executive and the Company agree that any and all disputes, claims, and causes of action, in law or equity, arising from or relating to this
Agreement or its enforcement, performance, breach, or interpretation, will be resolved solely and exclusively by final, binding, and confidential arbitration, by a single arbitrator, in San Francisco County, and conducted by Judicial
Arbitration & Mediation Services, Inc. (“JAMS”) under its then-existing employment rules and procedures. Nothing in this section, however, is intended to prevent either party from obtaining injunctive relief in court to
prevent irreparable harm pending the conclusion of any such arbitration. Each party to an arbitration or litigation hereunder shall be responsible for the payment of its own attorneys’ fees. 

(d) Notice. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been
duly given when personally delivered or when mailed by U.S. registered or certified mail, return receipt requested and postage prepaid or deposited with Federal Express Corporation, with shipping charges prepaid. In the case of the Executive, mailed
notices shall be addressed to him or her at the home address which he or she most recently communicated to the Company in writing. In the case of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be
directed to the attention of its Secretary. 
 (e) Waiver. No provision of this Agreement shall be modified, waived or discharged
unless the modification, waiver or discharge is agreed to in writing and signed by the Executive and by an authorized officer of the Company (other than the Executive). No waiver by either party of any breach of, or of compliance with, any condition
or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 

(f) Withholding Taxes. All payments made under this Agreement shall be subject to reduction to reflect taxes or other charges required
to be withheld by law. 
 (g) Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall
not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
 (h) No Retention
Rights. Nothing in this Agreement shall confer upon the Executive any right to continue in service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or any subsidiary of the Company
or of the Executive, which rights are hereby expressly reserved by each, to terminate his or her service at any time and for any reason, with or without Cause. 

  
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 (i) Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of California (other than its choice-of-law provisions). 

  
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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company
by its duly authorized officer, as of the day and year first above written. 
  

	
	FITBIT, INC.
	
	  

	By:
	Title:

  
 9EXHIBIT 4.2

 

Amec Foster Wheeler plc

 

RULES OF THE AMEC FOSTER WHEELER PLC LONG-TERM INCENTIVE PLAN 2015

 

	
 
    	
 
    	
Shareholders’   Approval:
    	
14   May 2015
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Directors’   Adoption:
    	
20   March 2015
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Expiry   Date:
    	
14   May 2025
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
HMRC   reference number:
    	
 
    	
 
    	
 
    

 

	
Linklaters   LLP
    	
 
    
	
One   Silk Street
    	
 
    
	
London   EC2Y 8HQ
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Telephone   (+44) 20 7456 2000
    	
 
    
	
Facsimile   (+44) 20 7456 2222
    	
 
    

 

 

Table of Contents

 

	
Contents
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1
    	
Granting Awards
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2
    	
Before Vesting
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
3
    	
Malus, Holding Period and clawback
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
4
    	
Vesting
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
5
    	
Leaving employment and death
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
6
    	
Corporate events
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
7
    	
Changing the Plan and termination
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
8
    	
General
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
9
    	
Definitions
    	
 
    	
18
    

 

i

 

Rules of the Amec Foster Wheeler plc Long-term Incentive Plan 2015

 

1                                      Granting Awards

 

1.1                            Grantor

 

1.1.1                   The Grantor of an Award must be:

 

(i)                                  the Company;

 

(ii)                               any other Member of the Group; or

 

(iii)                            a trustee of any trust set up for the benefit of Employees.

 

1.1.2                   An Award granted under the Plan, and the terms of that Award, must be approved in advance by the Committee.

 

1.2                            Eligibility

 

The Grantor may grant an Award to anyone who is an Employee (including an executive director) on the Award Date in accordance with any selection criteria that the Committee in its discretion may set. However, unless the Committee considers that special circumstances exist, an Award may not be granted to an Employee who on the Award Date has given or received notice of termination of employment, whether or not such termination is lawful.

 

1.3                            Timing of Award

 

Awards may not be granted at any time after the 10th anniversary of approval of the Plan. Awards may only be granted within 42 days starting on any of the following:

 

1.3.1                   the date of shareholder approval;

 

1.3.2                   the day after the announcement of the Company’s results for any period;

 

1.3.3                   the date of the Company’s annual general meeting or any general meeting;

 

1.3.4                   any day on which the Committee resolves that exceptional circumstances exist which justify the grant of Awards;

 

1.3.5                   any day on which changes to the legislation or regulations affecting share plans are announced, effected or made; or

 

1.3.6                   the lifting of Dealing Restrictions which prevented the granting of Awards during any period specified above.

 

1.4                            Terms of Awards

 

Awards are subject to the rules of the Plan and any applicable condition and must be granted by deed. The terms of the Award must be determined by the Committee. The terms must be set out in the deed, including:

 

1.4.1                   whether the Award is:

 

(i)                                  a Conditional Award;

 

(ii)                               an Option;

 

(iii)                            Forfeitable Shares;

 

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or a combination of these;

 

1.4.2                   the number of Shares subject to the Award or the basis on which the number of Shares subject to the Award will be calculated;

 

1.4.3                   any condition specified under rule 1.5;

 

1.4.4                   the Normal Vesting Date;

 

1.4.5                   whether clawback will apply to the Award in accordance with rule 3.3 and, where it does so, the Clawback Period;

 

1.4.6                   whether the Participant is entitled to receive any Dividend Equivalent;

 

1.4.7                   whether a Holding Period will apply to the Award in accordance with rule 3.4, and over what period;

 

1.4.8                   the Award Date;

 

1.4.9                   the Option Price (if relevant), which may be nil; and

 

1.4.10            for an Option, the Final Exercise Date.

 

1.5                            Conditions

 

1.5.1                   Subject to rule 1.5.2 below, when granting an Award, the Committee may make the Vesting of all or part of the Award conditional on the satisfaction of one or more conditions which may or may not be linked to the performance of the Company, the Participant or the Member of the Group in whose business unit the Participant works.

 

1.5.2                   When granting an Award to an executive director of the Company, the Committee must make the Vesting of the Award conditional on the satisfaction of one or more conditions which are linked to the performance of the Company, the Participant or the Member of the Group in whose business unit the Participant works.

 

1.5.3                   Any condition(s) must be specified at the Award Date.

 

1.5.4                   The Committee may waive or change a condition in accordance with its terms or if anything happens which causes the Committee reasonably to consider it appropriate to do so.

 

1.6                            Award notification

 

Each Participant will receive a notification setting out the terms of the Award as soon as practicable after the Award Date.

 

1.7                            No payment

 

A Participant is not required to pay for the grant of any Award.

 

1.8                            Administrative errors

 

If the Grantor grants an Award which is inconsistent with rule 1.2, it will lapse immediately. If the Grantor tries to grant an Award which is inconsistent with rules 1.9, 1.10 or 1.11, the Award will be limited and will take effect from the Award Date on a basis consistent with those rules.

 

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1.9                            Individual limit for Awards

 

An Award must not be granted to an Employee if it would, at the proposed Award Date, cause the market value of Shares subject to Awards granted to him in respect of that financial year under the Plan to exceed 250 per cent of his basic annual salary from Members of the Group. For these purposes, market value may be determined by reference to share price averaged over a period as specified by the Committee.

 

Basic annual salary for Employees whose salary is not denominated in the same currency as the Shares shall be determined using an appropriate exchange rate as determined by the Committee.

 

1.10                     Plan limits - 10 per cent

 

A Grantor must not grant an Award if the number of Shares committed to be issued under that Award exceeds 10 per cent of the ordinary share capital of the Company in issue immediately before that day, when added to the number of Shares which have been issued, or committed to be issued, to satisfy Awards under the Plan, or options or awards under any other employee share plan operated by the Company, granted in the previous 10 years.

 

1.11                     Plan limits - 5 per cent

 

A Grantor must not grant an Award if the number of Shares committed to be issued under that Award exceeds 5 per cent of the ordinary share capital of the Company in issue immediately before that day, when added to the number of Shares which have been issued, or committed to be issued, to satisfy Awards under the Plan, or options or awards under any other discretionary employee share plan adopted by the Company, granted in the previous 10 years.

 

1.12                     Scope of Plan limits

 

Where the right to acquire Shares is released or lapses, the Shares concerned are ignored when calculating the limits in rules 1.10 and 1.11.

 

As long as so required by The Investment Association, shares transferred from treasury are counted as part of the ordinary share capital of the Company and as shares issued by the Company.

 

1.13                     Listing Rules

 

No Shares will be issued under the Plan if it would cause Listing Rule 6.1.19 (shares in public hands) to be breached.

 

1.14                     Forfeitable Share Agreement

 

Where an Award consists of Forfeitable Shares, the Participant must enter into a Forfeitable Share Agreement with the Grantor. This Forfeitable Share Agreement must provide that to the extent that the Award lapses under the Plan, the Shares are forfeited and the Participant will immediately transfer his interest in the Shares, for no consideration or nominal consideration, to any person (which may include the Company, where permitted) specified by the Grantor.

 

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1.15                     Transfer of Forfeitable Shares

 

On or after the grant of an Award of Forfeitable Shares, the Grantor will procure that the relevant number of Shares are transferred, including a transfer out of treasury or otherwise:

 

1.15.1            to the Participant or to another person; or

 

1.15.2            where Awards are subject to a Holding Period in accordance with rule 3.4, to the Nominee as defined in rule 3.4.2,

 

to be held for the benefit of the Participant under the terms of the Plan.

 

1.16                     Documents and elections

 

Where the Award is of Forfeitable Shares:

 

1.16.1            the Participant must sign any documentation, including a power of attorney or blank stock transfer form, requested by the Grantor. If he does not do so within a period specified by the Grantor, the Award will lapse at the end of that period. The Grantor may retain the share certificates relating to any Forfeitable Shares; and

 

1.16.2            the Participant must enter into any elections required by the Grantor, including elections under Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (or similar) and elections to transfer any liability, or agreements to pay, social security contributions. If he does not do so within a period specified by the Grantor, the Award will lapse at the end of that period.

 

2                                      Before Vesting

 

2.1                            Rights

 

2.1.1                   A Participant is not entitled to vote, to receive dividends or to have any other rights of a shareholder in respect of Shares subject to an Award until the Shares are issued or transferred to the Participant.

 

2.1.2                   Except to the extent specified in the Forfeitable Share Agreement, a Participant will have all rights of a shareholder in respect of Forfeitable Shares until the Award lapses.

 

2.2                            Transfer

 

A Participant may not Assign an Award or any rights in respect of it. If he does, whether voluntarily or involuntarily, then it will immediately lapse. This rule 2.2 does not apply to:

 

2.2.1                   the transmission of an Award on the death of a Participant to his personal representatives; or

 

2.2.2                   the Assignment of an Award, with the prior consent of the Committee, subject to any terms and conditions the Committee imposes.

 

2.3                            Variation in share capital, etc.

 

2.3.1                   If there is:

 

(i)                                  a variation in the equity share capital of the Company, including a capitalisation or rights issue, sub-division, consolidation or reduction of share capital;

 

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(ii)                               a demerger (in whatever form) or exempt distribution by virtue of Section 1075 of the Corporation Tax Act 2010;

 

(iii)                            a special dividend or distribution, or

 

(iv)                           any other corporate event which might affect the current or future value of any Award,

 

where the Award is a Conditional Award or an Option, the Committee may adjust the number or class of Shares or securities subject to the Award and, in the case of an Option, the Option Price.

 

2.3.2                   Subject to the Forfeitable Share Agreement, a Participant will have the same rights as any other shareholders in respect of Forfeitable Shares where there is a variation or other event of the sort described in rule 2.3.1 of the Plan. Any shares, securities or rights allotted to a Participant as a result of such an event will be:

 

(i)                                  treated as if they were awarded to the Participant under the Plan in the same way and at the same time as the Forfeitable Shares in respect of which the rights were conferred; and

 

(ii)                               subject to the rules of the Plan and the terms of the Forfeitable Share Agreement.

 

3                                      Malus, Holding Period and clawback

 

3.1                            Malus

 

Notwithstanding anything else in these rules, if at any time before an Award Vests the Committee determines that an event set out in rule 3.2 has occurred, it may in its absolute discretion decide that any Award will be adjusted as follows:

 

3.1.1                   the number of Shares subject to any Award will be reduced;

 

3.1.2                   the Award will lapse or be forfeited;

 

3.1.3                  Vesting of the Award will be delayed (e.g. to allow any action or investigation to be undertaken or completed); and/or

 

3.1.4                  additional conditions will be imposed on the Vesting of the Award.

 

For the avoidance of doubt, where there is a delay under rule 3.1.3, there may (or may not) be an adjustment or further adjustment under this rule following completion of any action, investigation or procedure.

 

For the avoidance of doubt, the Committee may not apply malus in respect of an unexercised Option after it Vests.

 

3.2                            Events giving rise to malus

 

The events referred to in rule 3.1 are set out below:

 

3.2.1                   in the opinion of the Committee, a Participant has engaged in misconduct which justifies the application of malus;

 

3.2.2                   there has been, in respect of any financial year covered by, or part of which falls within, the period between the Award Date and Vesting, a materially adverse misstatement of the Company’s financial statements; and/or

 

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3.2.3                   in the opinion of the Committee, the Participant has previously received performance-based remuneration (being in the form of a Vested Award under the Plan, or otherwise), at a level that was higher than would otherwise have been due to an error or mistake in determining the relevant performance outcome.

 

3.3                            Application of clawback

 

This rule 3.3 applies if the Committee has determined under rule 1.4 that an Award is subject to clawback. Where the Committee has so determined, it may, during the Clawback Period, decide to apply clawback, as set out in rules 3.4 to 3.8 below, in its absolute discretion and notwithstanding any other rule of the Plan, if there has been or will be, in respect of any financial year covered by, or part of which falls within, the period between the Award Date and Vesting, a restatement of the Company’s financial statements to correct a material prior period error relating to any condition that was applicable to the Award.

 

3.4                            Determination of Holding Period

 

3.4.1                   The Committee may determine under rule 1.4 that any Shares (the “Retained Shares”) held by the Nominee (as defined below) prior to Vesting or to be issued or transferred to a Participant on Vesting (or, in the case of an Option, exercise), after deductions for income tax and social security under rule 4.9, shall be subject to a Holding Period during which the Participant agrees to restrict his dealings with the Retained Shares in accordance with rules 3.5  to 3.8.

 

3.4.2                   Notwithstanding rule 4.4, 4.5 or 4.6, the Committee will arrange for the Retained Shares to be issued or transferred to a designated nominee (the “Nominee”) to be held on trust absolutely for the Participant during the Holding Period on such administrative terms as the Committee determines.

 

3.4.3                   For the avoidance of doubt, to the extent that the Participant exercises an Option:

 

(i)                                  during the Holding Period, the resulting Shares will be subject to the Holding Period and will be issued or transferred to the Nominee following exercise; and

 

(ii)                               after the end of the Holding Period, the resulting Shares will not be subject to the Holding Period and will not be issued or transferred to the Nominee.

 

3.5                            Terms applicable to Retained Shares

 

3.5.1                   The Participant agrees with the Company that he shall not Assign his beneficial interest in the Retained Shares, instruct the Nominee to Assign the Retained Shares or call for the legal title to the Retained Shares during the Holding Period, except:

 

(i)                                  in the case of the sale of sufficient entitlements nil-paid in relation to a Share to take up the balance of the entitlements under a rights issue or similar event;

 

(ii)                               in respect of Shares disposed of under rule 4.9; or

 

(iii)                            where the Committee agrees otherwise in exceptional circumstances.

 

3.5.2                   During the Holding Period, the Participant will be entitled to vote and have all other rights of a shareholder in respect of the Retained Shares held by the Nominee. Any

 

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dividends payable in respect of the Retained Shares during the Holding Period will not be held by the Nominee but will be paid to the Participant. However, where clawback applies to the Retained Shares, such dividends may be subject to clawback during the Clawback Period in accordance with rule 3.6.

 

3.5.3                   For the avoidance of doubt, where clawback applies to an Award, any Retained Shares relating to that Award will be subject to clawback in accordance with rules 3.3 and 3.6 for the relevant Clawback Period.

 

3.6                            Clawback

 

If, during the Clawback Period, irrespective of whether or not the Participant is still employed by any Member of the Group, the Committee decides to apply clawback in accordance with rule 3.3, the Participant shall, as specified by the Committee in its absolute discretion:

 

3.6.1                   transfer Shares (which may, where a Holding Period applies, include directing the Nominee to transfer Retained Shares) to the recipient(s) specified by the Committee for no consideration;

 

3.6.2                   pay to, or to the order of, the Company an amount equal to the value of any dividends received in respect of any Shares (including Retained Shares) between the Award Date and Vesting, or during the Clawback Period, which have been subject to clawback under this rule 3.6 or such lower amount as determined by the Committee; and/or

 

3.6.3                   if the Participant has sold or otherwise disposed of Shares (including Retained Shares which have been released pursuant to rule 3.5.1), pay to, or to the order of, the Company an amount equal to the market value (as determined by the Committee) of such number of Shares or Retained Shares as the Committee determines as at the date of the sale and provide such evidence of the sale or disposal as the Committee may require.

 

For the avoidance of doubt, the Participant shall bear any liability to taxation which arises as a result of the clawback of the Shares, Retained Shares and/or dividends in accordance with this rule 3.6 and the recipient(s) specified by the Committee under this rule 3.6 may include the Company, where permitted.

 

3.6.4                   If, during the Clawback Period, irrespective of whether or not the Participant is still employed by any Member of the Group, the Committee decides to apply clawback in accordance with rule 3.3 to Options which have Vested but have not yet been exercised, the Committee may, in its absolute discretion, determine:

 

(i)                                  the number of Shares subject to the Option will be reduced;

 

(ii)                               the Option will lapse;

 

(iii)                            the delivery of Shares following a valid exercise of the Option will be delayed (e.g. to allow any action or investigation to be undertaken or completed); and/or

 

(iv)                           additional conditions will be imposed on the exercise of the Option.

 

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3.7                            Duration of the Clawback Period and the Holding Period

 

The Clawback Period and Holding Period will begin on the date on which an Award Vests and will end on the earliest of the following:

 

3.7.1                   the date or dates specified by the Committee under rule 1.4;

 

3.7.2                   the date of a Change of control;

 

3.7.3                   the death of the Participant; or

 

3.7.4                   if the Committee so decides, on the date of any of the corporate events described in rule 6.1.

 

At the end of the Holding Period, rule 3.5 will cease to apply to the Retained Shares and the Participant agrees that he will direct the Nominee to transfer the Retained Shares to the Participant or an alternative recipient(s) specified by the Participant.

 

3.8                            General

 

3.8.1                   For the avoidance of doubt, the circumstances described in rules 3.2.2, 3.2.3 and 3.3 can arise even if the Participant was not responsible for the matter in question or if it happened before or after the Vesting or grant of the Award or before the Participant’s employment with any Member of the Group.

 

3.8.2                   Malus and/or clawback may be applied differently for different Participants or for different Awards held by the same Participant in relation to the same matter.

 

3.8.3                   The Committee will notify the Participant of any application of malus or clawback.

 

3.8.4                   Without limiting rule 8.1, the Participant will not be entitled to any compensation in respect of any application of malus or clawback.

 

4                                      Vesting

 

4.1                            Determining Vesting

 

As soon as reasonably practicable after the end of the Condition Period, the Committee will determine how many Shares Vest for each Award as described in this rule 4.

 

4.2                            Timing of Vesting

 

Subject to rule 4.3, an Award will normally Vest on the latest of:

 

4.2.1                   the date on which the Committee determines the extent to which any condition has been satisfied or waived;

 

4.2.2                   the Normal Vesting Date; and

 

4.2.3                   the first date on which Vesting is not prevented by a Dealing Restriction.

 

4.3                            Delayed Vesting

 

Vesting is delayed in respect of a Participant’s Award, or any part of it, if any of the following circumstances apply on the anticipated date of Vesting:

 

4.3.1                   if the Participant is subject to any Disciplinary Action;

 

4.3.2                   if the Participant’s employment has terminated or is about to terminate in circumstances where it is not clear whether the Award should lapse under rule 5;

 

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4.3.3                   if a matter which may otherwise involve or affect that Participant has been referred to the Committee for review under rule 3.1; or

 

4.3.4                   the Committee considers that it is necessary or appropriate to defer Vesting.

 

In these cases, Vesting will not occur unless and until the Committee determines that the Award should Vest.

 

“Disciplinary Action”, for the purpose of this rule 4.3, means any enquiry or investigation by any Member of the Group into the conduct, capability or performance of a Participant that may potentially lead to disciplinary action being taken against that Participant, and/or any disciplinary procedure (whether in accordance with any relevant contractual obligation, policy or otherwise) that has been commenced by any Member of the Group against a Participant.

 

4.4                           Consequences of Vesting for Conditional Awards

 

As soon as reasonably practicable and in any case within 30 days of a Conditional Award Vesting, the Grantor will arrange (subject to rules 3, 4.8, 4.9, 5.5 and 8.8) for the transfer, including a transfer out of treasury or issue, to, or to the order of, the Participant, of the number of Shares in respect of which the Award has Vested.

 

4.5                            Consequences of Vesting for Options

 

4.5.1                   A Participant may only exercise an Option to the extent it has Vested. To exercise the Option, the Participant must give notice in the prescribed form to the Grantor or any person nominated by the Grantor and pay the Option Price (if any). Subject to a valid exercise of the Option and rule 3.6.4, the Grantor will arrange, as soon as reasonably practicable and in any case within 30 days (subject to rules 3, 4.8, 4.9, 5.5 and 8.8), for the transfer, including a transfer out of treasury or issue to, or to the order of, the Participant, of the number of Shares in respect of which the Option is exercised.

 

4.5.2                   To the extent that an Option has not been exercised by the close of business on the Final Exercise Date, the Company will, subject to the condition set out below being satisfied, be deemed to have received a valid exercise notice immediately preceding the close of business on the Final Exercise Date, together with a direction to sell sufficient Shares arising on the exercise of each Option to fund the Option Price (if any) and any taxation or social security contributions payable under rule 4.9. The remaining Shares subject to the Option will be transferred to, or to the order of, the Participant.

 

The condition referred to above is that A - B is greater than C, calculated as follows: A equals the expected sale proceeds of the Shares resulting from the exercise of the Option. B equals any costs of any sale (including any actual or estimated liability to taxation, social security contributions and any other related costs in respect of the Option) and C equals the Option Price.

 

4.5.3                   The Option will lapse, at the latest, on the close of business on the Final Exercise Date.

 

4.5.4                   If an Option lapses under more than one provision of the rules of the Plan, the provision resulting in the shortest exercise period will prevail.

 

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4.6                            Consequences of Vesting of Forfeitable Shares

 

Subject to rule 3, to the extent it has Vested, an Award of Forfeitable Shares will not lapse under the Plan and the restrictions referred to in rule 1.14 and contained in the Forfeitable Share Agreement will cease to have effect. Rule 4.9 will apply to any tax and social security contributions payable on Vesting.

 

4.7                            Dividend Equivalent

 

4.7.1                   An Award may include the right to receive a Dividend Equivalent which may be paid in cash or Shares (as determined from time to time by the Committee). Dividend equivalents will be paid to any relevant Participant as soon as practicable after Vesting or, in the case of Options, exercise. For the avoidance of doubt, the Dividend Equivalent includes the tax credit.

 

4.7.2                   The Committee may determine no additional cash or Shares will be paid in relation to all or part of a special dividend that would otherwise be included.

 

4.8                            Cash and Share alternative

 

The Grantor may, subject to the approval of the Committee, decide to satisfy an Award (other than Forfeitable Shares or where clawback with a Holding Period is to apply to an Award) by paying an equivalent amount in cash (subject to rule 4.9). For Options, the cash amount must be equal to the amount by which the market value of the Shares in respect of which the Option is exercised exceeds the Option Price. An Award may be granted on the basis that it will always be satisfied in this manner.

 

In respect of Awards which consist of a right to receive a cash amount, the Committee may decide instead to satisfy such Awards (and any Dividend Equivalents) by the delivery of Shares (subject to rule 4.9). The number of Shares will be calculated by reference to the market value of the Shares on the date of Vesting for Conditional Awards and the date of exercise for Options.

 

4.9                            Withholding

 

The Company, the Grantor, any employing company or trustee of any employee benefit trust may withhold such amount and make such arrangements as it considers appropriate to meet any liability to taxation or social security contributions in respect of Awards. These arrangements may include the sale or reduction in number of any Shares or the Participant discharging the liability himself.

 

5                                      Leaving employment and death

 

5.1                            General rule on leaving employment

 

Unless rule 5.2 applies, an Award that has not yet Vested will lapse on the date the Participant leaves employment.

 

5.2                            “Relevant leavers” — continuation of Awards

 

Subject to rule 5.3, an Award will not lapse and the rules (including any applicable clawback or Holding Period terms) will continue to apply if a Participant leaves employment due to:

 

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5.2.1                   disability, ill-health or injury, as established to the satisfaction of the Participant’s employer;

 

5.2.2                   redundancy;

 

5.2.3                   retirement with the agreement of the Participant’s employer;

 

5.2.4                   the Participant’s employing company ceasing to be a Member of the Group;

 

5.2.5                   a transfer of the undertaking, or the part of the undertaking, in which the Participant works to a person which is not a Member of the Group; or

 

5.2.6                   any other reason, if the Committee so decides in any particular case.

 

Unless the Committee decides otherwise, the number of Shares in respect of which the Award Vests will be reduced to reflect the proportion of the period up to the Normal Vesting Date which had elapsed by the date the Participant left employment.

 

The Vesting of an Award under this rule is subject to such condition(s) as the Committee in its absolute discretion may determine.

 

5.3                            “Relevant leavers” — early Vesting

 

Where a Participant leaves employment for one of the reasons set out in rule 5.2, the Committee may decide, in its discretion, the Award will Vest on the date the Participant leaves employment. Where it does so:

 

5.3.1                   the Award will Vest to the extent that any condition has been or is likely to be satisfied (as determined by the Committee, at the time the Participant leaves employment, in the manner specified in the condition or in such manner as it considers reasonable);

 

5.3.2                   the number of Shares in respect of which the Award Vests will, unless the Committee decides otherwise, be reduced to reflect the proportion of the period up to the Normal Vesting Date which had elapsed by the date the Participant left employment;

 

5.3.3                   the number of Shares in respect of which the Award Vests will, unless the Committee decides otherwise, continue to be subject to any applicable clawback or Holding Period terms; and

 

5.3.4                   the Award will lapse to the extent it does not Vest.

 

For a Participant who leaves employment due to an event referred to in rule 5.2.4 or 5.2.5 (sale of employing company or business), this rule 5.3 is subject to rule 5.4.

 

5.4                            Exchange of awards on a sale of employer

 

If the Committee, with the agreement of any relevant purchaser, so decides before the event referred to in rule 5.2.4 or 5.2.5 takes effect, Awards will not Vest, but will instead be exchanged, and rules 6.1 to 6.4 will apply. In applying rules 6.1 to 6.4, the “Acquiring Company” will mean the relevant purchaser.

 

5.5                            Death

 

If a Participant dies, his Award will Vest in full (and, in the case of Options, become exercisable) on the date of death and any applicable clawback or Holding Period terms will cease to apply.

 

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The Grantor will only arrange for Shares to be issued or transferred, or cash paid to the personal representatives of a deceased Participant if they have produced appropriate evidence of entitlement, to the satisfaction of the Committee.

 

5.6                            General

 

5.6.1                   A Participant will only be treated as “leaving employment” when he is no longer an Employee or director of any Member of the Group. Unless the Committee decides otherwise, a Participant will be treated as leaving employment on the date he is no longer an Employee or director of any Member of the Group.

 

5.6.2                  The Committee must make the decision referred to in rule 5.2.6 no later than 45 days after cessation of the relevant Participant’s employment or office.

 

5.6.3                  An Option which is exercisable after the Participant has left employment will be exercisable for six months from the date of leaving or, if later, the date on which it Vests. In the case of death, the Option will be exercisable for 12 months from the date of death.

 

5.7                            Overseas transfer

 

If a Participant remains an Employee but is transferred to work in another country or changes tax residence status and, as a result, would:

 

5.7.1                   suffer a tax disadvantage in relation to his Awards (this being shown to the satisfaction of the Committee); or

 

5.7.2                   become subject to restrictions on his ability to exercise his Awards or to hold or deal in the Shares or the proceeds of the sale of the Shares acquired on exercise because of the security laws or exchange control laws of the country to which he is transferred,

 

then the Committee may decide that the Awards will Vest on a date it selects before or after the transfer takes effect. The Award will Vest to the extent the Committee permits and will lapse as to the balance.

 

6                                      Corporate events

 

6.1                            Exchange

 

Unless an Award Vests under rule 6.5, an Award will be exchanged pursuant to rule 6.4:

 

6.1.1                   in the event of a Change of control; or

 

6.1.2                   if the Committee so decides, if the Company is or may be affected by:

 

(i)           any demerger, delisting, distribution (other than an ordinary dividend) or other transaction, which, in the opinion of the Committee, might affect the current or future value of any Award; or

 

(ii)          any reverse takeover (not within rule 6.1.1), merger by way of a dual listed company or other significant corporate event, as determined by the Committee,

 

to the extent that:

 

6.1.3                   an offer to exchange the Award is made and accepted by a Participant; or

 

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6.1.4                   the Committee, with the consent of the Acquiring Company, decides before the Change of control or other event that the Award will be automatically exchanged.

 

An Award will also be exchanged under this rule 6 if rule 5.4 applies.

 

6.2                            Committee

 

In this rule 6, “Committee” means the members of the remuneration committee of the Company immediately before the Change of control or other event.

 

6.3                            Timing of exchange

 

Where an Award is to be exchanged under rule 6.1, the exchange is effective immediately following the relevant event unless the Committee decides otherwise.

 

6.4                            Exchange terms

 

Where a Participant is granted a new award in exchange for an existing Award, the new award:

 

6.4.1                   must confer a right to acquire shares in the Acquiring Company or another body corporate determined by the Acquiring Company;

 

6.4.2                   must be equivalent to the existing Award, subject to rule 6.4.4;

 

6.4.3                   is treated as having been acquired at the same time as the existing Award and, subject to rule 6.4.4, Vests in the same manner and at the same time;

 

6.4.4                   must:

 

(i)           be subject to a condition which is, in the Committee’s opinion, equivalent to any condition applying to the existing Award; or

 

(ii)          not be subject to any condition but be in respect of the number of shares which is equivalent to the number of Shares comprised in the existing Award which would have Vested under rule 6.5; and/or

 

(iii)         be subject to such other terms as the Committee considers appropriate in all the circumstances; and

 

6.4.5                   is governed by the Plan, excluding rule 7.2, as if references to Shares were references to the shares over which the new award is granted and references to the Company were references to the Acquiring Company or the body corporate determined under rule 6.4.1.

 

For the avoidance of doubt, the new award will not be subject to clawback under rule 3.3 or any Holding Period.

 

6.5                            Vesting

 

6.5.1                   If the Committee so determines, in the event of a Change of control, an Award will:

 

(i)           Vest subject to rules 6.6 and 6.7; and

 

(ii)          lapse as to the balance,

 

except to the extent exchanged under rule 6.1.

 

6.5.2                   If the Company is or may be affected by:

 

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(i)                                  any demerger, delisting, distribution (other than an ordinary dividend) or other transaction, which, in the opinion of the Committee, might affect the current or future value of any Award; or

 

(ii)                               any reverse takeover (not within rule 6.5.1), merger by way of a dual listed company or other significant corporate event, as determined by the Committee,

 

the Committee may allow an Award to Vest. The Award will Vest to the extent specified in rules 6.6 and 6.7 and will lapse as to the balance unless exchanged under rule 6.1. The Committee may impose other conditions on Vesting.

 

6.6                            Extent of Vesting

 

Where an Award vests under rule 6.5:

 

6.6.1                   if the Award is subject to a condition, the Committee will determine the extent to which that condition has been satisfied and the proportion of the Award which will Vest.  Where an Award is subject to more than one condition, the Committee may determine that only one such condition shall apply and will determine the extent to which that one condition has been satisfied and the proportion of the Award which will Vest; and

 

6.6.2                   the Committee will determine whether or not the Award is reduced to reflect the acceleration of Vesting, having regard to the time elapsed since the Award Date.

 

6.7                            Lapse of Options

 

Where an Option Vests under rule 6.5:

 

6.7.1                   following a Change of control, it will be exercisable for six months after the Change of control or, if earlier, for six weeks after the date on which a notice to acquire Shares under section 979 of the Companies Act 2006 is first served; or

 

6.7.2                   following an event described in rule 6.5.2, it will be exercisable for such period (not exceeding one year) as the Committee may set at the time of the event,

 

and will lapse at the end of that period to the extent unexercised.

 

7                                      Changing the Plan and termination

 

7.1                            Committee’s powers

 

Except as described in the rest of this rule 7, the Committee may at any time change the Plan or any Award in any way, including changes to the disadvantage of existing Participants.

 

7.2                            Shareholder approval

 

7.2.1                   Except as described in rule 7.2.2, the Company in general meeting must approve in advance by ordinary resolution any proposed change to the Plan to the advantage of present or future Participants, which relates to:

 

(i)           the Participants;

 

(ii)          the individual limit for each Participant under the Plan;

 

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(iii)         the limits on the number of Shares which may be issued under the Plan;

 

(iv)         the basis for determining a Participant’s entitlement to, and the terms of, securities, cash or other benefit to be provided and for the adjustment thereof (if any) if there is a capitalisation issue, rights issue or open offer, sub-division or consolidation of shares or reduction of capital or any other variation of capital; or

 

(v)          the terms of this rule 7.2.1.

 

7.2.2                   The Committee can change the Plan and need not obtain the approval of the Company in general meeting for any minor changes:

 

(i)           to benefit the administration of the Plan;

 

(ii)          to comply with or take account of the provisions of any proposed or existing legislation;

 

(iii)         to take account of any changes to legislation; or

 

(iv)         to obtain or maintain favourable tax, exchange control or regulatory treatment of the Company, any Subsidiary or any present or future Participant.

 

7.2.3                   The Committee may, without obtaining the approval of the Company in general meeting, establish further plans (by way of schedules to the rules or otherwise) based on the rules, but modified to take account of local tax, exchange control or securities law in non-UK territories. However, any Shares made available under such plans are treated as counting against any limits on individual or overall participation in the Plan under rules 1.9, 1.10 and 1.11.

 

7.3                            Employees’ share scheme

 

No amendment or operation of the Plan will be effective to the extent that the Plan would cease to be an “employees’ share scheme” as defined in Section 1166 of the Companies Act 2006.

 

7.4                            Notice

 

The Committee is not required to give Participants notice of any changes.

 

7.5                            Termination

 

The Plan will terminate on the 10th anniversary of approval of the Plan, but the Committee may terminate the Plan at any time before that date. The termination of the Plan will not affect existing Awards.

 

8                                     General

 

8.1                            Terms of employment

 

8.1.1                   This rule 8.1 applies during an Employee’s employment and after the termination of an Employee’s employment, whether or not the termination is lawful.

 

8.1.2                   Nothing in the rules or the operation of the Plan forms part of the contract of employment of an Employee. The rights and obligations arising from the employment relationship between the Employee and his employer are separate 

 

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from, and are not affected by, the Plan. Participation in the Plan does not create any right to, or expectation of, continued employment.

 

8.1.3                   No Employee has a right to participate in the Plan. Participation in the Plan or the grant of Awards on a particular basis in any year does not create any right to or expectation of participation in the Plan or the grant of Awards on the same basis, or at all, in any future year.

 

8.1.4                   The terms of the Plan do not entitle the Employee to the exercise of any discretion in his favour.

 

8.1.5                   The Employee will have no claim or right of action in respect of any decision, omission or discretion, which may operate to the disadvantage of the Employee even if it is unreasonable, irrational or might otherwise be regarded as being in breach of the duty of trust and confidence (and/or any other implied duty) between the Employee and his employer.

 

8.1.6                   No Employee has any right to compensation for any loss in relation to the Plan, including any loss in relation to:

 

(i)           any loss or reduction of rights or expectations under the Plan in any circumstances (including lawful or unlawful termination of employment);

 

(ii)          any exercise of a discretion or a decision taken in relation to an Award or to the Plan, or any failure to exercise a discretion or take a decision; or

 

(iii)         the operation, suspension, termination or amendment of the Plan.

 

8.2                            Committee’s decisions final and binding

 

The decision of the Committee on the interpretation of the Plan or in any dispute relating to an Award or matter relating to the Plan will be final and conclusive.

 

8.3                            Third party rights

 

Nothing in this Plan confers any benefit, right or expectation on a person who is not a Participant. No such third party has any rights under the Contracts (Rights of Third Parties) Act 1999 or any equivalent local legislation to enforce any term of this Plan. This does not affect any other right or remedy of a third party which may exist.

 

8.4                            Documents sent to shareholders

 

The Company is not required to send to Participants copies of any documents or notices normally sent to the holders of its Shares.

 

8.5                            Costs

 

The Company will pay the costs of introducing and administering the Plan. The Company may ask a Participant’s employer to bear the costs in respect of an Award to that Participant.

 

8.6                            Employee trust

 

The Company and any Subsidiary may provide money to the trustee of any trust or any other person to enable them or him to acquire Shares to be held for the purposes of the Plan, or enter into any guarantee or indemnity for those purposes, to the extent permitted by Section 682 of the Companies Act 2006 or any applicable law.

 

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8.7                            Data protection

 

By participating in the Plan, the Participant consents to the holding and processing of personal information provided by the Participant to any Member of the Group, trustee or third party service provider, for all purposes relating to the operation of the Plan. These include, but are not limited to:

 

8.7.1                   administering and maintaining Participant records;

 

8.7.2      providing information to Members of the Group, trustees of any employee benefit trust, registrars, brokers or third party administrators of the Plan;

 

8.7.3      providing information to future purchasers or merger partners of the Company, the Participant’s employing company or the business in which the Participant works;

 

8.7.4      transferring information about the Participant to a country or territory that may not provide the same statutory protection for the information as the Participant’s home country.

 

The Participant is entitled, on payment of a fee, to a copy of the personal information held about him or her. If anything is inaccurate, the Participant has the right to have it corrected.

 

8.8                            Consents

 

All allotments, issues and transfers of Shares will be subject to any necessary consents under any relevant enactments or regulations for the time being in force in the United Kingdom or elsewhere. The Participant is responsible for complying with any requirements he needs to fulfil in order to obtain or avoid the necessity for any such consent.

 

8.9                            Consistency with directors’ remuneration policy

 

Nothing in these rules or the terms of any Award will oblige the Grantor or any other person to make any remuneration payment or payment for loss of office which would be in breach of Chapter 4A of Part 10 of the Companies Act 2006 (which requires such payments to be within an approved remuneration policy or otherwise approved by shareholders).

 

The Company will not be obliged to seek the approval of its shareholders in general meeting for any such payment but may make such changes as are necessary or desirable to the terms of any payment to ensure that it is not in breach of that Chapter.

 

8.10                     Share rights

 

Shares issued to satisfy Awards under the Plan will rank equally in all respects with the Shares in issue on the date of allotment. They will not rank for any rights attaching to Shares by reference to a record date preceding the date of allotment. Where Shares are transferred to a Participant, including a transfer out of treasury, the Participant will be entitled to all rights attaching to the Shares by reference to a record date on or after the transfer date. The Participant will not be entitled to rights before that date.

 

8.11                     Listing

 

If and so long as the Shares are listed and traded on a public market, the Company will apply for listing of any Shares issued under the Plan as soon as practicable.

 

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8.12                     Notices

 

8.12.1            Any information or notice to a person who is or will be eligible to be a Participant under or in connection with the Plan may be posted, or sent by electronic means, in such manner to such address as the Company considers appropriate, including publication on any website.

 

8.12.2            Any information or notice to the Company or other duly appointed agent under or in connection with the Plan may be sent by post or transmitted to it at its registered office or such other place, or by such other means, as the Committee or duly appointed agent may decide and notify Participants.

 

8.12.3            Notices sent by post will be deemed to have been given on the second day after the date of posting. However, notices sent by or to a Participant who is working overseas will be deemed to have been given on the seventh day after the date of posting. Notices sent by electronic means, in the absence of evidence to the contrary, will be deemed to have been received on the day after sending.

 

8.13                     Governing law and jurisdiction

 

English law governs the Plan and all Awards and their construction. The English courts have non-exclusive jurisdiction in respect of disputes arising under or in connection with the Plan or any Award.

 

9                                      Definitions

 

In these rules:

 

“Acquiring Company” means a person who has or obtains control (within the meaning of Section 995 of the Income Tax Act 2007) of the Company or any other appropriate person as determined by the Committee (and, for the purpose of rules 6.1 to 6.4, has the meaning given in rule 5.4 or any other appropriate person as determined by the Committee);

 

“Assign” means to transfer, assign, grant any security interest over, hold on trust or otherwise dispose of;

 

“Award” means a Conditional Award, an Option or Forfeitable Shares;

 

“Award Date” means the date on which an Award is granted by deed under rule 1.4;

 

“Change of control” means:

 

(i)                                   when a general offer to acquire Shares made by a person (or a group of persons acting in concert) becomes wholly unconditional;

 

(ii)           when, under Section 895 of the Companies Act 2006 or equivalent procedure under local legislation, a court sanctions a compromise or arrangement in connection with the acquisition of Shares; or

 

(iii)          a person (or a group of persons acting in concert) obtaining control (within the meaning of Section 995 of the Income Tax Act 2007) of the Company in any other way;

 

“Clawback Period” means the period specified in rule 3.7;

 

“Committee” means, subject to rule 6.2, the remuneration committee of the board of directors of the Company or a duly authorised person or group of persons (except that in 

 

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relation to Awards to be granted to executive directors of the Company, only the remuneration committee of the board of directors of the Company may approve the terms of Awards under rule 1.1.2);

 

“Company” means Amec Foster Wheeler plc registered in England with number 1675285;

 

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

 

“Condition Period” means the period in respect of which a condition is to be satisfied;

 

“Dealing Restriction” means any restriction imposed by statute, order, regulation or Government directive, or by the Model Code or any code adopted by the Company based on the Model Code and, for this purpose, the Model Code means the Model Code on dealings in securities set out in Listing Rule 9, annex 1 (of the London Stock Exchange plc), as varied from time to time;

 

“Dividend Equivalent” means an amount equal to the gross ordinary dividends (and, if the Committee so determines, special dividends in respect of which no adjustment has been made pursuant to rule 2.3) payable on the number of Vested Shares with record dates falling between the Award Date and Vesting (or, in the case of Options, the date of exercise). This amount will be calculated, subject to rule 4.6, on the basis that such dividends were reinvested in shares at the time of payment and added to the number of Vested Shares and, where paid in cash, the market value of a share will be the middle market quotation derived from the Daily Official List of the London Stock Exchange on the day preceding Vesting (or, in the case of Options, the date of exercise);

 

“Employee” means any employee of a Member of the Group;

 

“Final Exercise Date” means the 10th anniversary of the Award Date of an Option or an earlier date set under rule 1.4;

 

“Forfeitable Share Agreement” means the agreement referred to in rule 1.14;

 

“Forfeitable Shares” means Shares held in the name of or for the benefit of a Participant subject to the Forfeitable Share Agreement;

 

“Grantor” means, in respect of an Award, the entity which grants that Award under the Plan;

 

“Holding Period” means the period specified in rule 3.7;

 

“Member of the Group” means:

 

(i)            the Company;

 

(ii)           its Subsidiaries from time to time; or

 

(iii)          any other company which is associated with the Company and is so designated by the Committee;

 

“Nominee” has the meaning given in rule 3.4.2;

 

“Normal Vesting Date” means the date (or dates) set by the Committee for Vesting of an Award under rule 1.4 which may be a date determined under rule 4.2.1 or a later date;

 

“Option” means a right to acquire Shares granted under the Plan;

 

“Option Price” means the amount payable for each Share on the exercise of an Option, which may be nil;

 

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“Participant” means a person holding, or who has held, an Award or his personal representatives who have produced a UK grant of representation;

 

“Plan” means these rules known as “The Amec Foster Wheeler plc Long-term Incentive Plan 2015”, as changed from time to time;

 

“Retained Shares” has the meaning given in rule 3.4.1;

 

“Shares” means fully paid ordinary shares in the capital of the Company and, where the context requires, includes an American depository share representing Shares;

 

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

 

“Vesting” means:

 

(i)            in relation to an Option, an Option becoming exercisable;

 

(ii)           in relation to a Conditional Award, a Participant becoming entitled to have the Shares transferred to him subject to the Plan; and

 

(iii)          in relation to Forfeitable Shares, the restrictions set out in the Forfeitable Share Agreement ceasing to have effect as described in rule 4.6.

 

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