Document:

EX-4.(c)(xiii)

 Exhibit 4 (c) (xiii) 
 20 February 2013 
 Michael A Friedman 

15 Adam Street, 
 London 

WC2N 6LA 
 Dear Michael, 

SMITH & NEPHEW plc (THE “COMPANY”) AND YOUR APPOINTMENT 

AS A NON-EXECUTIVE DIRECTOR 
 Following the recommendation of the Nominations Committee, the board of the Company (the “Board”) is pleased to confirm your appointment as a non-executive director on the board of
Smith & Nephew plc. This letter sets out the main terms of your appointment to this office. It is agreed that on acceptance of this offer this letter will be a contract for services and not a contract of employment. You should be aware that
your appointment will have to be ratified by the Company’s shareholders at the annual general meeting in April 2013 and annually thereafter. Your appointment is also subject to the Company’s articles of association as amended from time to
time. If there is a conflict between the terms of this letter and the articles of association then the articles shall prevail. 
 DUTIES

  

	1.	The Board as a whole is collectively responsible for promoting the success of the Company by directing and supervising the Company’s affairs. The Board’s role
is to: 

  

	 	(a)	provide entrepreneurial leadership to the Company within a framework of prudent and effective controls which enable risk to be assessed and managed;

  

	 	(b)	set the Company’s strategic aims, ensure that the necessary financial and human resources are in place for the Company to meet its objectives, and review
management performance; and 

  

	 	(c)	set the Company’s values and standards and ensure that its obligations to its shareholders and others are understood and met. 

  
 1 

	2.	In your role as a non-executive director you will be required (with the other non-executives) to: 

 

	 	(a)	constructively challenge and contribute to the development of strategy; 

  

	 	(b)	scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance; 

 

	 	(c)	satisfy yourself that financial information is accurate and that financial controls and systems of risk management are robust and defensible; and

  

	 	(d)	have a prime role in appointing, and where necessary removing, senior management and in succession planning and where required by the relevant policy of the Company
from time to time be responsible for determining appropriate levels of remuneration of executive directors. 

  

	3.	You will be required to: 

  

	 	(a)	exercise relevant powers under the Company’s memorandum and articles of association; 

 

	 	(b)	perform your duties faithfully, efficiently and diligently and use all reasonable endeavours to promote the interests and reputation of the Company;

  

	 	(c)	serve on various committees of the Board and attend wherever possible all meetings of such committees. You will be provided with the terms of reference of a committee
on your appointment to such a committee; 

  

	 	(d)	attend wherever possible all Annual General Meetings and Extraordinary General Meetings of the Company; 

 

	 	(e)	attend wherever possible all meetings of the Board, which meets at least six times a year, normally at 15 Adam Street, London WC2N 6LA (one meeting a year is held at
one of the major business units); 

  

	 	(f)	attend wherever possible the Annual Strategy Review, which is usually held off-site over two or three days in September; 

 

	 	(g)	consider all relevant papers in advance of each meeting in order to ensure that you can play a full part in the work of the Board and its committees;

  

	 	(h)	bring independent judgement to bear on issues of strategy, policy, resources, performance and standards of conduct; 

 

	 	(i)	make yourself available (on reasonable notice) to provide ad hoc advice to individual directors of the Company. We do not envisage that this would take more than two
days of your time a year; 

  
 2 

	 	(j)	provide guidance and direction in planning, developing and enhancing the future strategic direction of the Company; 

 

	 	(k)	share responsibility with the other directors for the effective control of the Company and with the other non-executive directors for the supervision of the executive
directors; and 

  

	 	(l)	comply with the Financial Services Authority’s Model Code for securities transactions by directors of UK listed companies and with any code of conduct relating to
securities transactions by directors and specified employees issued by the Company from time to time The Smith & Nephew Code of Dealing in Securities will be sent to you on your appointment. 

 

	4.	Overall the Company anticipates that you will need to spend a minimum of 15 days per year fulfilling your duties. This will include the board meetings, annual general
meetings, one board away-day each year and board committee meetings. In addition you will be expected to spend an appropriate period of time preparing for each meeting and be prepared to be available for additional meetings and business when
required. By accepting this appointment you confirm that you are able to commit sufficient time to the role to meet the Company’s expectations. 

  

	5.	The Company seeks to adhere to the principles in UK Corporate Governance Code. You will be expected to carry out your duties in accordance with the principles set out
in these reports, copies of which are available from the Company Secretary. 

  

	6.	The performance of the Board and its committees, and of individual directors, is evaluated annually. At least every third year the performance will be reviewed by an
external body. 

  

	7.	You shall, in pursuance of your duties hereunder, be entitled to request such information from the Company, its subsidiary undertakings (as defined in section 1162 of
the Companies Act 2006 as amended from time to time) or its or their employees, consultants or professional advisers as may be reasonably necessary to enable you to perform your role effectively. The Company shall use its reasonable endeavours to
provide such information promptly. 

 CONFIDENTIALITY 
 During the course of your duties you will have access to confidential information belonging to the Company and its subsidiary undertakings (including, but not limited to, details of suppliers, customers,
margins, know-how, marketing and other relevant business information). Unauthorised disclosure of this information could seriously damage the Company. You will therefore undertake not to use or disclose such information save in pursuance of your
duties or in accordance with any statutory obligation or court or similar order. 
 Your attention is drawn to the rules relating to the
disclosure of price sensitive information. You must not make any statement or do anything which may be a breach of these rules without prior clearance from the Chairman or Company Secretary. 

  
 3 

 OUTSIDE INTERESTS 
 The agreement of the Chairman will have to be sought before you accept any new outside interests which might affect the time you are able to devote to this appointment. 

In accordance with the principles set out in the Combined Code you will have to inform the Company Secretary of any interests which you have, or acquire,
which might reasonably be thought to jeopardise your independence from the Company. 
 During your appointment you will not be able to take up
any office or employment with, or have any interest in, any firm or company which is or may be in direct or indirect competition with the Company. 
 The Board will determine you to be independent, according to the provisions of the Combined Code. 

INSURANCE 
 During your appointment you
will be covered by the Company’s directors’ and officers’ liability insurance on the terms in place from time to time. Details of the policy are available from the Company Secretary. The Company does not guarantee to maintain this
insurance cover after the termination of your appointment, but you will continue to be covered by the policy or any replacement on the same basis as the rest of the Board. A deed of indemnity will be put in place between you and the Company.

 APPOINTMENT 
 Your
appointment will be from 11 April 2013 and will be terminable at the will of the parties. However, it is envisaged that it will be for an initial period of 36 months from the date of appointment. The continuation of your appointment depends
upon satisfactory performance and re-election at the Annual General Meeting to be held on 11 April 2013 and at each Annual General Meeting. 
 All appointments and reappointments to the Board will be subject to the Company’s articles of association. If you are not re-elected to your position as a director of the Company by the shareholders
at any time and for any reason then this appointment shall terminate automatically and with immediate effect. 
 On termination of the
appointment you shall only be entitled to such fees as may have accrued to the date of termination together with reimbursement in the normal way of any expenses properly incurred prior to that date. 

REMUNERATION 
 The fees are $120,000
(subject to income tax and statutory deductions) per annum and will be reviewed each year. There is an additional allowance relating to inter-continental travel of $7,000 per trip and there would be an additional fee, should you take over as
Chairman of any of the Committees. 

  
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 EXPENSES 
 The Company will reimburse you for any expenses that you may incur properly and reasonably in performing your duties and which are properly documented. Such expenses would include reasonable legal fees if
circumstances should arise in which it was necessary for you to seek separate legal advice about the performance of your duties. In such a situation, you will be required to discuss the issue either with me or with one of your non-executive
colleagues in advance. 
 INDEPENDENT PROFESSIONAL ADVICE 
 In some circumstances you may think that you will need professional advice in the furtherance of your duties as a director. It may also be appropriate for you to seek advice from independent advisers at
the Company’s expense. The Company will reimburse the full cost of any expenditure incurred. 
 DATA PROTECTION 

By signing this agreement you consent to the Company holding and processing information about you which it may acquire during the course of this
agreement, providing such use is in accordance with the Data Protection Act 1998. 
 THIRD PARTY RIGHTS 

The Contracts (Rights of Third Parties) Act 1999 shall not apply to this agreement. No person other than the parties to this agreement shall have any
rights under it and it will not be enforceable by any person other than the parties to it. 
 ENTIRE AGREEMENT 

This agreement will constitute the entire and only agreement relating to your appointment between you and the Company. 

Any previous agreement or arrangement between you and the Company or any Group company shall be deemed to have been terminated by mutual consent as from
the commencement of your appointment. 

  
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 Please sign and return the enclosed copy of this letter to Susan Swabey, our Company Secretary to confirm
your agreement to your appointment on the above terms. She will be in touch with you shortly to request further information to enable us to fulfil our statutory obligations. 
 I look forward to working with you in the future. 
  

	
	Yours sincerely
	
	/s/ Susan Swabey
	 Susan Swabey
 Company
Secretary

 I, Michael Friedman, agree to the above terms of appointment as a non-executive director of Smith & Nephew plc.

  

			
	Name	 	 /s/ Michael Friedman

		
	Date	 	 20 February 2013

  
 6EX-4.(c)(xxxiii)

 Exhibit 4 (c) (xxxiii) 

Smith & Nephew plc 
 The Smith & Nephew Sharesave Plan (2012) 
 This is a copy of the
rules of 
 The Smith & Nephew Sharesave Plan 2012 

as produced to the Annual General Meeting 
 of the Company on 12 April 2012 and initialled by 
 the Chairman for the
purposes of identification only 
  
  

Chairman 

HMRC Ref No  ̈ 

 CONTENTS 

 

							
	Rules	  	 	  	Page	 
			
	 1.
	  	Interpretation	  	 	1	  
			
	 2.
	  	Invitations to apply for Options	  	 	6	  
			
	 3.
	  	The Exercise Price	  	 	7	  
			
	 4.
	  	Applications for Options	  	 	8	  
			
	 5.
	  	Acceptance and Scaling-Down of Applications	  	 	8	  
			
	 6.
	  	Grant of Options	  	 	10	  
			
	 7.
	  	Issue of Shares	  	 	11	  
			
	 8.
	  	Limits on Individual Contributions	  	 	11	  
			
	 9.
	  	Non-Transferability and Lapse of Options	  	 	12	  
			
	 10.
	  	Relationship with Service Contract	  	 	12	  
			
	 11.
	  	Exercise of Options	  	 	13	  
			
	 12.
	  	Manner of Exercise of Options	  	 	15	  
			
	 13.
	  	Reconstruction or Winding-Up of the Company	  	 	17	  
			
	 14.
	  	Take-over of the Company	  	 	17	  
			
	 15.
	  	Variation of Share Capital	  	 	19	  
			
	 16.
	  	Alteration of this Plan	  	 	20	  
			
	 17.
	  	Service of Documents	  	 	21	  
			
	 18.
	  	Miscellaneous	  	 	21	  
			
	 19.
	  	Jurisdiction	  	 	21	  
			
	 20.
	  	Data Protection	  	 	22	  
			
	 21.
	  	Third Party Rights	  	 	22	  

 RULES OF 
 SMITH & NEPHEW SHARESAVE PLAN 2012 
  

	1.	INTERPRETATION 

  

	 	1.1	In this Plan, the following words and expressions shall have the meanings respectively given below: 

 

			
		
	 “3 year Option”
	  	an Option linked to a 3 year Savings Contract
		
	 “5 year Option”
	  	an Option linked to a 5 year Savings Contract and which is not a 7 year Option
		
	 “7 year Option”
	  	an Option linked to a 5 year Savings Contract under which the Optionholder has elected, when applying for such Savings Contract, that repayments under the Savings Contract
be taken as including the maximum bonus payable
		
	 “Acquisition Cost”
	  	 in relation to the exercise of an Option, an amount equal to the product of:

 
 (a)     the maximum
number of Shares in respect of which that Option is then exercised in accordance with rule 11; and
  

(b)     the Exercise Price

		
	 “Announcement Date”
	  	a date of announcement of the annual, half-year or quarterly results of the Company
		
	 “Applicant”
	  	a person who, in response to an Invitation, submits an Application
		
	 “Application”
	  	an application for the grant of an Option made in accordance with rule 4
		
	 “Application Date”
	  	in relation to any Invitation, such date (being not less than 14 days after the date on which that invitation was issued) as shall be determined by the Committee to be the
last day on which an application for the grant of an Option may be submitted in response to Invitations issued on any occasion
		
	 “Approval Date”
	  	the date on which the Company receives notice that this Plan has been approved by HMRC pursuant to Schedule 3
		
	 “Associated Company”
	  	any company which, in relation to the Company, is an associated company as that term is defined for the purposes of paragraph 47 of Schedule 3
		
	 “Bonus Date”
	  	in relation to any Employee’s Savings Contract, the date on which the bonus becomes payable

  
 1 

			
		
	 “Committee”
	  	the Remuneration Committee of the Company
		
	 “the Company”
	  	Smith & Nephew plc (registered in England no 324357)
		
	 “control”
	  	the meaning given in section 719 of ITEPA
		
	 “Date of Grant”
	  	in relation to any Option, the date on which that Option is granted
		
	 “Date of Invitation”
	  	in relation to any Option, the date on which the invitation to apply for that Option is issued
		
	 “Dealing Day”
	  	a day on which the London Stock Exchange is open for business
		
	 “Directors”
	  	the board of directors of the Company or a duly constituted committee of that board
		
	 “Eligible Employee”
	  	 any Employee (other than an Employee precluded from participating in this Plan by virtue of paragraph 11 of Schedule 3)
who:
  
 1.

 
 (a)     is employed
by a Participating Company and
  

(b)     has been continuously employed by one or more Participating Companies throughout
the period of three months ending with the Date of Grant (or such other period immediately preceding that date as the Directors may from time to time determine not being more than 5 years) and

 
 (c)     whose
earnings from the office or employment are (or would be if there were any) general earnings to which section 15 of ITEPA applies and those general earnings are (or would be if there were any) earnings for a tax year in which the individual is
ordinarily resident in the United Kingdom; or
  
 2. is nominated by the
Directors as an Eligible Employee for the purposes of this Plan

		
	 “Employee”
	  	an employee or Full-time Director of any Participating Company

  
 2 

			
		
	“Employee’s Savings Contract”	  	in relation to an Eligible Employee or an Optionholder, the Savings Contract entered into by that person in connection with the grant to him of an Option (and any reference to
“his Savings Contract” shall be construed accordingly)
		
	 “the Exercise Price”
	  	in relation to Shares subject to any Option, the price per Share payable upon the exercise of that Option
		
	 “Full-time Director”
	  	a director of any Participating Company who is required to work more than 25 hours per week (exclusive of meal breaks) disregarding holiday entitlement
		
	 “Grantor”
	  	in relation to an Option, the Company or the Relevant Trustee which has granted or proposes to grant such Option
		
	 “the Group”
	  	the Company and every other company which is for the time being a Subsidiary
		
	 “HMRC”
	  	Her Majesty’s Revenue and Customs
		
	 “Initial Market Value”
	  	in relation to any Share in respect of which an Option is to be, or has been, granted the market value of such a Share shall (except as otherwise agreed with the Shares and
Assets Valuation of HMRC) be taken to be the average of the middle market quotations of a Share as derived from the Official List for the three consecutive Dealing Days last preceding the date of Invitation
		
	 “Invitation”
	  	an invitation to apply for the grant of an Option issued in accordance with rule 2
		
	 “ITEPA”
	  	Income Tax (Earnings and Pensions) Act 2003
		
	 “Jointly Owned Company”
	  	a company (and any subsidiary as defined in section 1159 and Schedule 6 of the Companies Act 2006 of such a company) of which the whole of the issued ordinary share capital is
jointly owned by a member of the Group and another person (not being a member of the Group) but which is not a Subsidiary and is not under the control of such other person
		
	 “Key Feature”
	  	a provision of the Plan which is necessary in order to meet the requirements of Schedule 3
		
	 “London Stock Exchange”
	  	means London Stock Exchange plc, or any successor to that company

  
 3 

			
	“Material Interest”	  	the meaning given by paragraphs 11 to 16 of Schedule 3
		
	“Model Code”	  	the code adopted by the Company which contains provisions similar in purpose and effect to the provisions of the Model Code for securities transactions by directors and certain
employees of listed companies, and persons connected with them, as issued by the UK Listing Authority from time to time
		
	“Official List”	  	the daily official list of the UK Listing Authority
		
	“Option”	  	a right to acquire Shares which is granted pursuant to and is exercisable only in accordance with the rules of this Plan
		
	“Option Certificate”	  	a certificate or other document issued by on or behalf of the Grantor evidencing the grant of an Option
		
	“Optionholder”	  	in relation to any Option, the person to whom that Option has been granted or, if that person has died, his Personal Representatives
		
	“Ordinary Share Capital”	  	issued ordinary share capital of the Company
		
	“Participating Company”	  	 (a) the Company; and
  

(b) any other company which at the Date of Grant is under the control of the Company and is for the time being designated by the Directors as a
Participating Company

		
	“Personal Data”	  	has the meaning it bears for the purposes of the Data Protection Act 1998
		
	“Personal Representatives”	  	in relation to an Optionholder, the legal personal representatives of the Optionholder (being either the executors of his will to whom a valid grant of probate has been made or if
he dies intestate the duly appointed administrator(s) of his estate) who have satisfied the Company of their appointment as such
		
	“this Plan”	  	the Smith & Nephew Sharesave Plan 2012 as set out in these rules as amended from time to time
		
	“Relevant Savings Body”	  	in relation to an Employee’s Savings Contract, the Savings Body which is a party to that Contract

  
 4 

			
	“Relevant Trustee”	  	the meaning given in article 71(6) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001
		
	“Repayment Value”	  	in relation to an Employee’s Savings Contract, the aggregate amount of all the monthly savings contributions payable under that Savings Contract together with the amount of
such bonus as would be due on the Bonus Date
		
	“Savings Body”	  	such bank or building society which operates an SAYE Scheme as is approved by the Directors for the purposes of this Plan
		
	“Savings Contract”	  	a savings contract entered into under an SAYE Scheme
		
	“SAYE Scheme”	  	a certified SAYE savings arrangement within the meaning of section 703 of the Income Tax (Trading and Other Income) Act 2005 which has been approved by HMRC for the purposes of
Schedule 3
		
	“Schedule 3”	  	Schedule 3 to ITEPA
		
	“Shares”	  	fully-paid ordinary shares in the capital of the Company which satisfy the conditions set out in paragraphs 17 to 22 (inclusive) of Schedule 3 at the Date of Grant and
date of exercise
		
	“Specified Age”	  	65 years of age
		
	“Subscription Options”	  	Options which are rights granted by the Company to subscribe for Shares or to acquire Treasury Shares
		
	“Subsidiary”	  	any company which is for the time being both a subsidiary (as defined in section 1159 and Schedule 6 of the Companies Act 2006) of the Company and under the control of the
Company
		
	“Taxable Year”	  	the calendar year or, if it would result in a longer period for the exercise of an Option, the 12 month period in respect of which the Optionholder’s employing company is
obliged to pay tax
		
	“Treasury Shares”	  	Shares which meet the conditions set out in paragraphs (a) and (b) of section 724(5) of the Companies Act 2006

  
 5 

			
	“UK Listing Authority”	  	the Financial Services Authority in its capacity as the competent authority for the purposes of Part VI of the Financial Services and Markets Act 2000
		
	“US Tax”	  	taxation under the tax rules of the United States of America
		
	“US Taxpayer”	  	a person who is subject to US Tax
		
	“year”	  	a financial year of the Company.

  

	 	1.2	Words and expressions not defined in this rule 1 have the same meanings as in Schedule 3. 

 

	 	1.3	References to any statutory provisions shall be read and construed as references to such provision as amended and re-enacted from time to time and no account should be
taken of the rule headings which have been inserted for ease of reference only. 

  

	 	1.4	If any question, dispute or disagreement arises as to the interpretation of this Plan, the decision of the Committee shall be final and binding upon all persons.

  

	 	1.5	Words denoting the masculine gender shall include the feminine. 

  

	 	1.6	Words denoting the singular shall include the plural and vice versa. 

  

	2.	INVITATIONS TO APPLY FOR OPTIONS 

  

	 	2.1	Subject to the following provisions of this rule 2, the Company may from time to time issue, or procure the issue, to all persons who are or are expected to be Eligible
Employees, invitations to apply for the grant of Options. 

  

	 	2.2	Invitations may be issued: 

  

	 	2.2.1	in the period of 42 days after the Approval Date, and thereafter, 

  

	 	2.2.2	in the period of 42 days beginning with the fourth Dealing Day following an Announcement Date 

or, if the Company is restricted by statute, order or regulation (including any regulation, order or requirement imposed on the Company
by the London Stock Exchange or any other regulatory authority) from issuing invitations in any such period, at any time in the period of 42 days beginning with the date on which such restriction is removed; and 

 

	 	2.2.3	at any other time if the Directors consider the circumstances to be exceptional unless the Company is or would then be so restricted from issuing invitations at that
time. 

  

	 	2.3	Invitations may be issued in writing (including by way of hard copy invitation or an invitation by electronic means, as the Committee may specify) and may be in the
form of letters, emails or other forms of invitation and/or by way of notices, advertisements, circulars or otherwise for the general attention of Employees and to which the particular attention of individual Employees is drawn by notices issued
with pay and salary advice slips. 

  
 6 

	 	2.4	Each such invitation shall: 

  

	 	2.4.1	be in the same terms as all other such invitations issued on the same occasion; 

 

	 	2.4.2	invite the person to whom it is addressed to apply for such one or more (as the Committee shall specify) 3 year Option, 5 year Option and/or 7 year
Option; 

  

	 	2.4.3	specify the form and manner in which each such person may apply for any such Option; 

 

	 	2.4.4	identify the Savings Body; 

  

	 	2.4.5	state the minimum amount of monthly savings contribution which may be made under a Savings Contract (which shall not be less than £5 or more than £10);

  

	 	2.4.6	state the maximum amount of monthly savings contribution which may be made by an Optionholder (being such sum as is mentioned in rule 8.2);

  

	 	2.4.7	if the Company so determines, include a statement that, if it becomes necessary to scale-back applications pursuant to rule 5, such scaling-back shall, in the
first instance, apply to every application in relation to which the amount of monthly savings contribution proposed to be made is greater than such lesser amount as is specified in the invitation; 

 

	 	2.4.8	if the Company so determines, include a statement that, if it becomes necessary to scale-back applications pursuant to rule 5, all applications for 7 year
Options may be accepted on the basis that they are deemed to be applications for 5 year Options and that, in this event, every corresponding application for a 5 year Savings Contract shall be deemed to be made and shall be accepted by the
Relevant Savings Body on the basis that, in each such case, the Applicant will be deemed not to have elected for repayments to be taken as including the maximum bonus payable; 

 

	 	2.4.9	specify the Application Date 

and shall otherwise be in such form as the Company shall determine. 

 

	 	2.5	On any occasion on which invitations are issued, the Directors may in their discretion (and acting with the consent of the Grantor where appropriate) determine and
announce the maximum number of Shares in respect of which Options will be granted in response to applications made pursuant to the invitations issued on that occasion. 

 

	 	2.6	No invitation may be issued after 11 April 2022. 

  

	3.	THE EXERCISE PRICE 

  

	 	3.1	Subject to any adjustment in accordance with rule 15, the price per Share payable upon the exercise of Options granted on any occasion shall be determined by the
Grantor but shall be not less than 80% (rounded up to the nearest whole penny) of the Initial Market Value of a Share. 

  

	 	3.2	Subject to rule 15, the Exercise Price shall be the same in relation to all Options granted on the same occasion and, in relation to Subscription Options, shall not in
any event be less than the nominal value of a Share. 

  
 7 

	4.	APPLICATIONS FOR OPTIONS 

  

	 	4.1	Any Eligible Employee to whom an Invitation has been issued may apply for an Option by submitting to the person specified in the Invitation an application in writing
(including by way of hard copy application or an application by electronic means, as the Committee may specify) which: 

  

	 	4.1.1	is received in such manner and/or at such address as is stipulated in the Invitation not later than the Application Date; 

 

	 	4.1.2	specifies the amount of the savings contributions proposed to be paid each month under the Employee’s Savings Contract (or, if more than one, each such Savings
Contract) and authorises the Applicant’s employer (from time to time) to deduct such amount (or such lesser amount as may be determined pursuant to rule 5) from his pay; 

 

	 	4.1.3	if the terms of the Invitation so permit, indicates whether or not the Applicant applies for one or more 3 year Option and/or one or more 5 year Option and/or
one or more 7 year Option; 

  

	 	4.1.4	includes or is accompanied by an application for a Savings Contract linked to each such Option in a form approved by the Relevant Savings Body;

  

	 	4.1.5	otherwise complies with such terms and conditions as may have been specified in the Invitation; 

 

	 	4.1.6	is subject to the Applicant being an Eligible Employee at the Date of Grant; 

 

	 	4.1.7	provides that the Applicant agrees to accept and be bound by the rules of this Plan; 

 

	 	4.1.8	authorises the transfer and process of the Applicant’s Personal Data for the purposes of the administration of this Plan; 

 

	 	4.1.9	is duly completed and signed by the Applicant 

 and is otherwise in such form as the Directors may determine. 
  

	 	4.2	Subject to rule 5, an application for an Option shall be made shall be made in respect of the whole number of Shares for which the Acquisition Cost payable would
be as nearly as may be equal to, but not exceed, the amount which would be the Repayment Value of the Employee’s Savings Contract if the amount of each of the contributions payable under that Savings Contract (or under each such Savings
Contract) was equal to the maximum amount specified by the Applicant in his application. 

  

	5.	ACCEPTANCE AND SCALING-DOWN OF APPLICATIONS 

  

	 	5.1	Subject to the following provisions of this rule 5, each application for an Option shall be accepted to the extent of the total number of Shares in respect of
which that application is made (as mentioned in rule 4.2). 

  

	 	5.2	If the total number of Shares in respect of which applications for Options have been made on that occasion would result in any of the limits in rules 2.5 or 7
being exceeded then the number of Shares in respect of which each application for an Option is accepted shall be reduced in accordance with the following provisions of this rule 5. 

  
 8 

	 	5.3	If the Invitation included such statement as is mentioned in rule 2.4.8, and subject to rules 5.8 and 5.9, the number of Shares in respect of which each
application for an Option is made shall be determined on the basis that the amount of monthly savings contribution to be made under such Savings Contract is reduced to the amount so specified. 

 

	 	5.4	If, after the application of rule 5.3, the total number of shares in respect of which applications for Options are deemed to have been made on that occasion
exceeds any of the limits in rules 2.5 or 7 then each application for a 7 year Option shall be deemed to be an application for a 5 year Option (and the corresponding application(s) for one or more 5 year Savings Contract
linked to such Option shall be deemed to be made and shall be accepted by the Relevant Savings Body on the basis that, in each such case, the Applicant has not elected for repayments to be taken as including the maximum bonus).

  

	 	5.5	If, after the application of rule 5.4, the total number of shares in respect of which applications for Options are deemed to have been made on that occasion
exceeds any of the limits in rules 2.5 or 7 then the number of Shares in respect of which each application for an Option shall be accepted shall be further reduced as nearly as may be on a proportionate basis to the extent necessary to
ensure that none of those limits is exceeded (and the amount of monthly savings contributions to be made under the Savings Contracts linked to each such Option shall be reduced accordingly) SAVE THAT the number of Shares in respect of which any
application for an Option shall be accepted shall not be reduced below the number for which the Acquisition Cost payable would be as nearly as may be equal to, but not exceed, the Repayment Value of the Employee’s Savings Contract linked to
that Option if the monthly savings contributions under each such Savings Contract were £5 or such other minimum amount per month specified in the Invitation (the “Minimum Number of Shares”). 

 

	 	5.6	The provisions of rule 5.5 shall, if necessary, be applied repeatedly until either none of the limits in rules 2.5 and/or 7 will be exceeded or the
number of Shares in respect of which each application for an Option would be accepted is reduced to the Minimum Number of Shares. 

  

	 	5.7	If, notwithstanding the provisions of rules 5.2 to 5.6 (inclusive), any one or more of the limits in rules 2.5 and 7 would still be exceeded then
the selection of applications for acceptance shall be made by the Committee on the basis that each application (after adjustment as mentioned above) has an equal chance of selection for acceptance. 

 

	 	5.8	If on any occasion an Applicant has applied for more than one 3 year Option or for more than one 5 year Option or for more than one 7 year Option then,
in applying the provisions of this rule 5 the number of Shares in respect of which applications have been received from such Applicant for all such 3 year Options (or, as the case may be, all such 5 year or 7 year Options) shall
first be aggregated and treated as if a single application for such an Option had been received in respect of the aggregate number of such Shares. 

  

	 	5.9	 Having, in the case of an Applicant who has applied for more than one 3 year Option (or, as the case may be, more than one 5 year or
7 year Option) identified the maximum aggregate number of Shares in respect of which such applications may be accepted, such number of Shares shall be divided by the number of Options for which such Applicant had applied and the monthly
contributions to be made in respect of each Savings Contract for which an application has been made shall be identified and such applications shall be deemed to have been made, and shall be accepted, on that basis PROVIDED THAT if in consequence the
amount of monthly contributions to be made under any such Savings Contract would be less than the minimum amount specified pursuant to rule 2.4.5 then the number of Savings Contracts for which

  
 9 

	 	
applications shall be deemed to have been made by such Applicant, and shall be accepted, shall be reduced so as to ensure that the monthly contributions to be made in each case is not less than
that minimum amount. 

  

	 	5.10	As soon as reasonably practicable after the Application Date in relation to Invitations issued on any occasion, the Committee (acting with the consent of the Grantor
where appropriate) shall: 

  

	 	5.10.1	determine the maximum number of Shares in respect of which each application may be accepted; and 

 

	 	5.10.2	cause each application for a Savings Contract to be submitted to the Relevant Savings Body. 

 

	6.	GRANT OF OPTIONS 

  

	 	6.1	An Option may be granted by the Company or, if the Company has determined with the consent of a Relevant Trustee, the Relevant Trustee. 

 

	 	6.2	No Option shall be granted to any person: 

 a) who is not an Eligible Employee at the Date of Grant; or 
 b) who has a
Material Interest, or has had a Material Interest at any time within the twelve month period preceding the Date of Grant. 
  

	 	6.3	Subject to the following provisions of this rule 6, Options for which Invitations are issued on any occasion shall be granted within the period of 30 days
beginning with the first of the three days by reference to which the Initial Market Value is determined on that occasion. 

  

	 	6.4	The Grantor (or, if the Grantor is the Company, the Committee) shall pass a resolution granting to each Applicant who is an Eligible Employee an Option to acquire the
whole number of Shares for which the Acquisition Cost payable would be as nearly as possible equal to, but not exceed, the amount which would be the Repayment Value of the Employee’s Savings Contract, and the date of such resolution shall be
the Date of Grant. 

  

	 	6.5	If on any occasion it is necessary to reduce the number of Shares in respect of which any applications are accepted then rule 6.3 shall take effect as if the
reference therein to a period of 30 days was a reference to 42 days. 

  

	 	6.6	No payment shall be required in respect of the grant of any Option. 

  

	 	6.7	As soon as reasonably practicable after the Date of Grant, the Grantor shall issue to each Optionholder an Option Certificate in such form as it may determine which
specifies: 

  

	 	6.7.1	the Grantor; 

  

	 	6.7.2	the Date of Grant; 

  

	 	6.7.3	the number of Shares in respect of which the Option is granted; 

  

	 	6.7.4	the Exercise Price; and 

  

	 	6.7.5	whether a bonus is included. 

  

	 	6.8	No Option shall be granted before the date on which this Plan is approved by HMRC pursuant to Schedule 3. 

  
 10 

	7.	ISSUE OR TRANSFER OF SHARES 

  

	 	7.1	Subject to rule 7.2, and unless specified to the contrary by the Committee at the Date of Grant, an Option may be satisfied: 

 

	 	7.1.1	by the issue of new Shares; and/or 

  

	 	7.1.2	by the transfer of Treasury Shares; and/or 

  

	 	7.1.3	by the transfer of Shares (other than the transfer of Treasury Shares). 

 The Committee may change the way in which an Option may be satisfied after the Option has been granted, subject always to the limit in rule 7.2. 

 

	 	7.2	The number of Shares in respect of which Subscription Options may be granted on a given day in any year, when added to: 

 

	 	7.2.1	the number of Shares in respect of which Subscription Options have previously been granted (and which, if not exercised, have not ceased to be exercisable); and

  

	 	7.2.2	the number of Shares issued, the number of Treasury Shares transferred and the number of Shares in respect of which any rights to subscribe for Shares or to acquire
Treasury Shares have previously been granted (and which have neither been exercised nor ceased to be exercisable) under any other employee share option or share incentive plan 

in that year and the nine preceding years may not exceed such number of Shares as represents 10 per cent of the Ordinary Share
Capital on that day. 
  

	 	7.3	The total number of Shares in respect of which Options may be granted in response to applications made by Eligible Employees pursuant to Invitations issued on any
occasion may not exceed the maximum (if any) determined and published by the Grantor on that occasion pursuant to rule 2.5. 

  

	 	7.4	The Company may issue Shares to a Relevant Trustee for the purpose of enabling the Relevant Trustee to satisfy the Company’s obligation or the Relevant
Trustee’s obligation (as the case may be) to transfer Shares to Optionholders upon the exercise of Options. 

  

	 	7.5	To the extent that a Relevant Trustee has purchased Shares to be transferred to Optionholders in satisfaction of any Subscription Options, the Shares over which such
Options are held shall be left out of account for the purposes of this rule 7. 

  

	 	7.6	If the Options are to be satisfied by the transfer of Shares from a Relevant Trustee, the Committee (acting with the consent of the Relevant Trustee) may from time to
time direct and notify the Optionholder in writing that the Exercise Price shall be payable, and the Optionholder shall pay the Exercise Price to the Relevant Trustee (as mentioned in rule 12.4). 

 

	8.	LIMITS ON INDIVIDUAL CONTRIBUTIONS 

  

	 	8.1	The aggregate amount of an Employee’s monthly savings contributions under his Savings Contract, when added to the aggregate amount of his monthly savings
contributions under any other Savings Contracts may not at any time exceed the sum specified in rule 8.2. 

  
 11 

	 	8.2	The sum mentioned in rule 8.1 is £250 or such other amount as is specified in the relevant Savings Contract or such other maximum amount (not exceeding such
other maximum amount per month specified from time to time in paragraph 25(3) of Schedule 3) as the Grantor may determine SAVE THAT if on any occasion the Grantor shall determine for these purposes a sum (“the new limit”) which
is less than the maximum aggregate of the monthly contributions applicable on any previous occasion then that determination shall be made without prejudice to any Option previously granted to an Optionholder or to any Employee’s Savings
Contract previously entered into by any Optionholder if the aggregate monthly savings contributions payable by that Optionholder under such Savings Contract would thereby exceed the new limit. 

 

	 	8.3	The Company may determine that, in relation to the grant of Options on any occasion, the amount of any monthly contribution which would have been made by any such
Applicant in the calendar month in which falls the Date of Grant of such Options under the terms of a Savings Contract which has been cancelled or allowed by the Applicant to lapse shall be counted in applying to that Applicant the limit in rule
8.1. 

  

	9.	NON-TRANSFERABILITY AND LAPSE OF OPTIONS 

  

	 	9.1	During his lifetime only the individual to whom an Option is granted may exercise that Option. 

 

	 	9.2	An Option shall immediately lapse if: 

  

	 	9.2.1	it is transferred or assigned (other than to Personal Representatives of the Optionholder), mortgaged, charged or otherwise disposed of by the Optionholder;

  

	 	9.2.2	the Optionholder is adjudged bankrupt or an interim order is made because he intends to propose a voluntary arrangement to his creditors under the Insolvency
Act 1986; 

  

	 	9.2.3	the Optionholder makes or proposes a voluntary arrangement under the Insolvency Act 1986, or any other scheme or arrangement in relation to his debts, with his
creditors or any section of them; or 

  

	 	9.2.4	the Optionholder is not, or ceases for any other reason (except his death) to be, the sole legal and beneficial owner of the Option free from encumbrances or would not,
upon the exercise of the Option, be the sole legal and beneficial owner of the Shares thereby acquired, free from encumbrances. 

  

	10.	RELATIONSHIP WITH SERVICE CONTRACT 

  

	 	10.1	The grant of an Option does not form part of the Optionholder’s entitlement to remuneration or benefits pursuant to his contract of employment nor does the
existence of a contract of employment between any person and any present or past member of the Group or Associated Company or Jointly Owned Company, give such person any right or entitlement to have an Option granted to him in respect of any number
of Shares or any expectation that an Option might be granted to him or that he will be invited to apply for the grant of an Option whether subject to any conditions or at all. 

  
 12 

	 	10.2	Neither the existence of this Plan nor the fact that an individual has on any occasion been granted an Option (or been invited to apply for the grant of an Option)
shall give such individual any right entitlement or expectation that he has or will in future have any such right entitlement or expectation to participate in this Plan by being granted an Option (or invited to apply for the grant of an Option) on
any other occasion. 

  

	 	10.3	The rights and obligations of an Optionholder under the terms of his contract of employment with any present or past member of the Group or Associated Company or
Jointly Owned Company shall not be affected by the grant of an Option or his participation in this Plan. 

  

	 	10.4	An Optionholder shall not be entitled to any compensation or damages for any loss or potential loss which he may suffer by reason of being unable to exercise an Option
in consequence of the loss or termination of his office or employment with any present or past member of the Group or Associated Company or Jointly Owned Company for any reason whatsoever (whether or not such termination is ultimately held to be
wrongful or unfair). 

  

	11.	EXERCISE OF OPTIONS 

  

	 	11.1	Subject to the following provisions of this rule 11.1 and rules 13 and 14, an Option shall only be exercisable within the period of 6 months after
the Bonus Date and, if not then exercised, shall lapse and cease to be exercisable at the end of that period. 

  

	 	11.2	If an Optionholder dies, his Personal Representatives may exercise that Option: 

 

	 	11.2.1	if he dies before the Bonus Date, to the extent permitted by rule 11.10.2 during the period of 12 months commencing on the date of his death; or

  

	 	11.2.2	if he dies within the period of 6 months after the Bonus Date, to the extent permitted by rule 11.10.1 during the period of 12 months commencing on the Bonus
Date 

 and if it is not then exercised that Option shall lapse and cease to be exercisable at the end of such
12-month period. 
  

	 	11.3	If an Optionholder ceases to be an Employee by reason of: 

  

	 	11.3.1	injury or disability (evidenced to the satisfaction of the Committee); 

  

	 	11.3.2	dismissal by reason of redundancy (within the meaning of the Employment Rights Act 1996); 

 

	 	11.3.3	retirement on reaching either the Specified Age or any other age at which he is bound to retire in accordance with the terms of his contract of employment;

  

	 	11.3.4	the company with which he holds office or employment by virtue of which he is eligible to participate in this Plan ceasing to be a Subsidiary; or

  

	 	11.3.5	the fact that the office or employment by virtue of which he is eligible to participate in this Plan relates to a business or part of a business which is transferred to
a person which is neither an Associated Company nor a Subsidiary 

 then (without prejudice to any rights the
Optionholder has under the Employee’s Saving Contract to make independent arrangements with the Savings Body to continue to make Contributions following cessation of his employment) his Option may be exercised, to the extent permitted by
rule 11.10.2 only, during the period of 6 months commencing on 

  
 13 

 
the date on which the Optionholder shall have ceased to be an Employee, and if it is not then exercised that Option shall lapse and cease to be exercisable at the end of that period. 

 

	 	11.4	If, before an Option has lapsed or otherwise been exercised, the Optionholder attains the Specified Age but remains an Employee he may exercise the Option, to the
extent permitted by rule 11.10.2, during the period of six months commencing on his attaining such age. 

  

	 	11.5	Subject to rule 11.6, if at any time an Optionholder ceases to be an Employee otherwise than as mentioned in rules 11.2, 11.3 or 11.7, any Option which he holds
shall lapse and cease to be exercisable upon such cessation. 

  

	 	11.6	No Optionholder shall be treated for the purposes of rules 11.3 or 11.5 as ceasing to be an Employee until he no longer holds any office or employment in:

  

	 	11.6.1	a Participating Company; 

  

	 	11.6.2	any Associated Company; 

  

	 	11.6.3	any other company of which the Company has control; or 

  

	 	11.6.4	a Jointly Owned Company. 

  

	 	11.7	If, at the Bonus Date, an Optionholder holds an office or employment in a company which is not a Participating Company but is: 

 

	 	11.7.1	an Associated Company; 

  

	 	11.7.2	any other company of which the Company has control; or 

  

	 	11.7.3	a Jointly Owned Company 

 then
the Optionholder may exercise an Option within the period of six months after the Bonus Date and if it is not then exercised it shall lapse and cease to be exercisable at the end of that period. 

 

	 	11.8	If the Optionholder obtains repayment of the contributions under his Savings Contract the relevant Option shall immediately cease to be exercisable and will lapse
unless, immediately before the repayment, such Option is exercisable by reason of rules 11.1, 11.3, 11.4, 13 or 14. 

  

	 	11.9	Except as provided in rule 11.2, no Option shall be capable of being exercised later than six months after the Bonus Date. 

 

	 	11.10	An Option may only ever be exercised in respect of such number of Shares as is mentioned below: 

 

	 	11.10.1	if the Option is exercisable pursuant to rule 11.1, 11.2.2 or 11.7, the maximum number of Shares in respect of which it shall subsist;

  

	 	11.10.2	if the Option is exercisable pursuant to rules 11.2.1, 11.3, 11.4 or to rules 13 or 14, that number of Shares for which the Acquisition Cost payable is
most nearly equal to but does not exceed the aggregate amount of contributions paid under the Employee’s Savings Contract (excluding the amount of any monthly contribution the due date of payment of which is more than one calendar month after
the date on which repayment is made under the Employee’s Savings Contract) together with the amount of any bonus or interest received or due thereunder as at that date or (if less) the maximum number of Shares in respect of which the Option
shall subsist; or 

  
 14 

	 	11.10.3	in either case, such lesser number of Shares as the Optionholder may specify in the notice of exercise given pursuant to rule 12.1. 

 

	 	11.11	No Option may be exercised by (or by the Personal Representatives of) any Optionholder who is (or at the date of his death was): 

 

	 	11.11.1	not an Employee (unless the Option is or was at the date of his death exercisable pursuant to rules 11.2, 11.3 or 11.7); or 

 

	 	11.11.2	ineligible to participate in the Plan at that time by virtue of having a Material Interest. 

 

	 	11.12	In deciding whether and when to exercise an Option, an Optionholder shall have regard to the Model Code. 

 

	 	11.13	This rule 11.13 shall apply to US Taxpayers. Notwithstanding anything contrary contained in this Plan, a US Taxpayer may only exercise an Option within the shorter of
any exercise period specified in the rules of this Plan and the expiry of 2.5 calendar months after the end of the Taxable Year in which the Option first becomes exercisable. 

 

	12.	MANNER OF EXERCISE OF OPTIONS 

  

	 	12.1	An Option shall be exercised only by the Optionholder giving notice in writing to the Company, or to such person at such address as may from time to time be notified to
Optionholders by the Grantor, which: 

  

	 	12.1.1	is given at any time when the Option is exercisable; 

  

	 	12.1.2	states that the Option is being exercised in respect of all the Shares in respect of which it is then capable of being exercised or otherwise specifies the number of
Shares in respect of which the Option is being exercised in accordance with rule 11.10; 

  

	 	12.1.3	is accompanied by a duly completed application to the Relevant Savings Body for payment of the Repayment Value of the Employee’s Savings Contract;

  

	 	12.1.4	unless the Committee otherwise permits, is accompanied by the Option Certificate relating to that Option; 

and is otherwise in such form as the Company may determine and notify to the Optionholder. 

 

	 	12.2	Subject to rule 12.9, not later than 30 days after the date on which the Grantor shall have received the Acquisition Cost the Grantor shall either allot and
issue (if the Grantor is the Company), or procure the transfer, to the Optionholder of the number of Shares in respect of which the Option is then exercised and as soon as reasonably practicable thereafter: 

 

	 	12.2.1	if at that time Shares are listed on the Official List, procure that Shares allotted to the Optionholder are admitted to the Official List; and

  
 15 

	 	12.2.2	issue or procure the issue of a definitive share certificate or such other acknowledgement of shareholding as is prescribed from time to time in respect of the Shares
so allotted or transferred. 

  

	 	12.3	If the amount received by the Grantor is greater than the Acquisition Cost of the Shares in relation to which the Optionholder has served a notice of exercise under
rule 12.1, the Grantor shall procure repayment of the excess amount to the Optionholder. 

  

	 	12.4	If the Committee has made a direction pursuant to rule 7.6 then, when an Option is exercised, the Relevant Trustee may, and shall if so directed by the Committee:

  

	 	12.4.1	apply any amount of the Exercise Price received from the Optionholder (pursuant to rule 7.6), together with such other amount as the Relevant Trustee may receive
by way of contribution from the Company (or, the Participating Company with which the Optionholder holds office or employment or, if he has ceased to hold office or employment with any Participating Company, the Company or the Subsidiary with which
he last held office or employment), in subscribing for shares at such price (being not less than the Exercise Price) as the Company may determine; and 

  

	 	12.4.2	within 30 days after receiving the Exercise Price, transfer such Shares to Optionholders (or to such other persons as are mentioned in rule 12.7) in
satisfaction of their rights under the terms of their Options 

 and insofar as shares are subscribed and
transferred to any Optionholder in such manner upon the exercise of an Option, the Company shall be discharged from all liability to issue such Shares to such Optionholder. 

 

	 	12.5	If a Subscription Option is exercised, the Committee may within 7 days of the date of exercise request any Relevant Trustee to transfer sufficient Shares to the
Optionholder to satisfy the Option in full and if the Relevant Trustee is able and willing to satisfy such Option in full the Shares shall be transferred to the Optionholder within 30 days of the date of exercise and the Company shall pay over
the Acquisition Cost to the Relevant Trustee when the Shares are transferred and pay the appropriate stamp duty on behalf of the Optionholder in respect of the transfer. If the Relevant Trustee is unable or unwilling to satisfy the Option in full,
rule 12.2 shall apply as if the Committee had not requested the Trustee to satisfy the Option. 

  

	 	12.6	A Relevant Trustee may exercise such of its powers and duties as are appropriate to give effect to the arrangements mentioned in rules 7.6, 12.4 and 12.5.

  

	 	12.7	The Grantor may, if the Optionholder so requests in writing, allot and issue or transfer some or all of such Shares to: 

 

	 	12.7.1	a nominee of the Optionholder provided that beneficial ownership of such Shares shall be vested in the Optionholder; or 

 

	 	12.7.2	to an account manager (or his nominee) of an individual savings account on terms that such Shares shall be in the beneficial ownership of the Optionholder
notwithstanding that title to such Shares shall be vested in the account manager or his nominee or jointly in one of them and the Optionholder 

 and for the purposes of this rule the terms ‘account manager’ and ‘individual savings account’ shall have the meanings they bear in the Individual Savings Account
Regulations 1998 (SI 1998/1870). 

  
 16 

	 	12.8	All Shares allotted or transferred upon the exercise of any Option shall rank equally in all respects with the Shares for the time being in issue save as regards any
rights attaching to such Shares by reference to a record date prior to the date of such allotment or transfer. 

  

	 	12.9	The allotment or transfer of Shares pursuant to the exercise of an Option shall be subject to the Articles of Association of the Company and to any necessary consents
of any governmental or other authorities (whether in the United Kingdom or elsewhere) under any enactments or regulations from time to time in force and it shall be the responsibility of the Optionholder to comply with any requirements to be
fulfilled in order to obtain or obviate the necessity for any such consent. 

  

	13.	RECONSTRUCTION OR WINDING-UP OF THE COMPANY 

  

	 	13.1	If the court sanctions a compromise or arrangement proposed for the purposes of or in connection with a scheme for the reconstruction of the Company or its amalgamation
pursuant to section 899 of the Companies Act 2006 the Optionholder shall be entitled to exercise his Option to the extent permitted by rule 11.10.2 during the period of 6 months commencing on the date on which the court sanctions the
compromise or arrangement, and thereafter the Option shall lapse and cease to be exercisable. 

  

	 	13.2	If notice is given to the holders of Shares of a resolution for the voluntary winding-up of the Company, notice of the same shall be given to all Optionholders and each
Optionholder shall be entitled to exercise his Option to the extent permitted by rule 11.10.2 at any time within the period of six months commencing on the date on which the resolution is passed. 

 

	 	13.3	All Options shall immediately lapse and cease to be exercisable upon the commencement of a winding-up of the Company. 

 

	14.	TAKE-OVER OF THE COMPANY 

  

	 	14.1	If, as a result of either: 

  

	 	14.1.1	a general offer to acquire the whole of the Ordinary Share Capital which is made on a condition such that if it is satisfied the person making the offer will have
control of the Company; or 

  

	 	14.1.2	a general offer to acquire all the shares in the Company of the same class as the Shares 

the Company shall come under the control of another person or persons, then the Grantor shall as soon as reasonably practicable
thereafter notify every Optionholder accordingly and the Optionholder shall be entitled to exercise his Option to the extent permitted by rule 11.10.2 within 6 months of the date when the person making the offer has obtained control of the
Company and any condition subject to which the offer is made has been satisfied (but not in any event more than 6 months after the Bonus Date) and to the extent the Option has not been exercised it shall upon the expiration of that period cease
to be exercisable and shall only remain in existence for the purpose of forming the subject of an offer (if any) made pursuant to rule 14.3 and shall lapse upon the expiry of the “appropriate period” as defined in rule 14.4 if
such offer is made but is not accepted by the Optionholder. 
  

	 	14.2	 If at any time any person becomes entitled or bound to acquire Shares under sections 979 to 982 of the Companies Act 2006 the Optionholder
shall be entitled to exercise his Option to the extent permitted in rule 11.10.2 at any time when that 

  
 17 

	 	
person remains so entitled or bound (but not in any event more than 6 months after the Bonus Date) and to the extent the Option has not been exercised it shall upon the expiration of that
period cease to be exercisable and shall only remain in existence for the purpose of forming the subject of an offer (if any) made pursuant to rule 14.3 and shall lapse upon the expiry of the “appropriate period” as defined in
rule 14.4 if such offer is made but is not accepted by the Optionholder. 

  

	 	14.3	If any company (in this rule referred to as the “acquiring company”): 

 

	 	14.3.1	obtains control of the Company as a result of making a general offer: 

  

	 	(a)	to acquire the whole of the Ordinary Share Capital of the Company which is made on a condition such that if it is satisfied the person making the offer will have
control of the Company; or 

  

	 	(b)	to acquire all the shares in the Company which are of the same class as the Shares; 

 

	 	14.3.2	obtains control of the Company in pursuance of a compromise or arrangement sanctioned by the court made under section 899 of the Companies Act 2006; or

  

	 	14.3.3	becomes bound or entitled to acquire Shares under sections 979 to 982 (inclusive) of the Companies Act 2006 

an Optionholder may, at any time within the “appropriate period” as mentioned in rule 14.4, by agreement with the
acquiring company, release his rights under his Option in consideration of the grant to him of rights to acquire shares in the acquiring company or any other company falling within sub-paragraphs (b) and (c) of paragraph 18 of
Schedule 3 (read and construed as if references in those provisions to the Company were references to the acquiring company) PROVIDED THAT: 
  

	 	(a)	such rights will be exercisable only in accordance with the provisions of this Plan as it had effect immediately before the release of the rights referred to above
(read and construed as mentioned in rule 14.5); 

  

	 	(b)	the shares to which the new rights relate satisfy the provisions of paragraphs 18 to 22 of Schedule 3; 

 

	 	(c)	the total market value, immediately before such release, of the Shares in respect of which the Option then subsists is equal to the total market value, immediately
after such grant, of the shares in respect of which new rights are granted to the Optionholder; and 

  

	 	(d)	the total amount payable by the Optionholder for the acquisition of shares upon exercise of the new rights is equal to the total amount that would have been payable for
the acquisition of Shares upon exercise of the Option. 

 An exchange of Options pursuant to this rule 14 shall
not alter the fact that this Plan remains that of Smith & Nephew plc as the original scheme organiser. No further options will be granted other than those granted upon exchange. 

 

	 	14.4	In rule 14.3 the “appropriate period” means: 

  

	 	14.4.1	in a case falling within rule 14.3.1 the period of six months beginning with the time when the person making the offer has obtained control of the Company and any
condition or conditions subject to which the offer is made has or have been satisfied or waived; 

  
 18 

	 	14.4.2	in a case falling within rule 14.3.2 the period of six months beginning with the time when the court sanctions the compromise or arrangement; and

  

	 	14.4.3	in a case falling within rule 14.3.3 the period during which the acquiring company remains bound or entitled as mentioned in that paragraph.

  

	 	14.5	For the purposes mentioned in rule 14.3.3(a) of the proviso to rule 14.3, the provisions of this Plan shall be read and construed as if: 

 

	 	14.5.1	references to “the Company”, except for the purposes of the definitions of Jointly Owned Company and Participating Company and rule 16.2, were
references to the company in respect of whose shares the new rights are granted; 

  

	 	14.5.2	references to “Shares” were references to such shares; 

  

	 	14.5.3	reference to “Option” were references to such rights; 

  

	 	14.5.4	references to “Optionholder” were references to the persons to whom such rights are granted; 

 

	 	14.5.5	references to “Ordinary Share Capital” were references to the ordinary share capital (other than fixed rate preference shares) of such company;

  

	 	14.5.6	references to the “Directors”, except for the purposes of rule 16.2, were references to the directors of such company; and 

 

	 	14.5.7	references to the “Exercise Price” were references to the price per share payable upon the exercise of such new rights. 

 

	 	14.6	Rights granted pursuant to rule 14.3 shall be regarded for the purposes of the subsequent application of the provisions of this Plan as having been granted on the
Date of Grant of the corresponding rights released as mentioned in rule 14.3. 

  

	 	14.7	Apart from rules 14.3 and 14.4 a person shall be deemed to have control of a company if he and others acting in concert with him have together obtained
control of it. 

  

	15.	VARIATION OF SHARE CAPITAL 

  

	 	15.1	In the event of any alteration of the Ordinary Share Capital by way of a capitalisation or rights issue or by way of sub-division, consolidation, reduction or any other
variation in the share capital of the Company, the Grantor may make such adjustment as it considers appropriate: 

  

	 	15.1.1	to the aggregate number of Shares subject to any Option; 

  

	 	15.1.2	to the Exercise Price; and/or 

  

	 	15.1.3	if an Option has been exercised but no Shares have been allotted or transferred, to the number of Shares which may be so allotted or transferred and the Acquisition
Cost relating to such Shares 

  
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 PROVIDED THAT: 

 

	 	(a)	no such adjustment shall be made without the prior approval of HMRC; 

  

	 	(b)	the aggregate Acquisition Cost payable by an Optionholder on the exercise of all his Options shall not be materially altered; 

 

	 	(c)	except insofar as the Directors (on behalf of the Company) agree to capitalise the Company’s reserves and apply the same at the time of exercise in paying up the
difference between the Exercise Price and the nominal value of the Shares, the Exercise Price in relation to any Subscription Option shall not be reduced below the nominal value of a Share; and 

 

	 	(d)	the number of Shares as so adjusted shall be rounded down to the nearest whole number and the Exercise Price as so adjusted shall be rounded up to the nearest whole
penny. 

  

	 	15.2	As soon as reasonably practicable after making any adjustment pursuant to rule 15.1 the Grantor shall give notice in writing thereof to every Optionholder affected
thereby. 

  

	16.	ALTERATION OF THIS PLAN 

  

	 	16.1	Before this Plan is first approved by HMRC, the Committee may make any alteration or addition to these rules as may be necessary or appropriate to take account of
comments of HMRC and to ensure that this Plan is so approved. 

  

	 	16.2	The Committee may, at any time thereafter, alter or add to the rules of this Plan in any respect PROVIDED THAT: 

 

	 	16.2.1	no alteration or addition to a Key Feature shall take effect until approved by HMRC; 

 

	 	16.2.2	no alteration or addition shall be made to the advantage of existing or new Optionholders to the provisions relating to eligibility to participate, the overall
limitations on the issue of new Shares, the individual limitations on Option grants under this Plan and the basis for determining an Optionholder’s rights to acquire Shares and the adjustment of such rights in the event of variation of the
Ordinary Share Capital without the prior approval by ordinary resolution of the shareholders of the Company SAVE THAT the provisions of this rule 16.2.2 shall not apply to the extent that such alteration or addition is in the opinion of the
Committee a minor amendment which is necessary or appropriate: 

  

	 	(a)	to benefit the administration of this Plan; 

  

	 	(b)	to take account of any change in legislation; or 

  

	 	(c)	to maintain HMRC approval of this Plan or obtain or maintain favourable tax, exchange control or regulatory treatment for Optionholders or for the Company or for any
Subsidiary; and 

  

	 	16.2.3	if in relation to any Options the Grantor is not the Company, no alteration or addition shall be made to the terms of such Options without the approval of the Grantor.

  

	 	16.3	As soon as reasonably practicable after making any such alteration or addition the Committee shall give notice in writing thereof to every Optionholder (if any)
affected thereby. 

  
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	17.	SERVICE OF DOCUMENTS 

  

	 	17.1	Except as otherwise provided in this Plan, any notice or document to be given by, or on behalf of, the Company or other Grantor or any administrator appointed to
administer the Plan to any person in accordance or in connection with this Plan shall be duly given by sending it through the post in a pre-paid envelope to the address last known to the Company to be his address and, if so sent, it shall be deemed
to have been duly given on the date of posting, or if he holds office or employment with any member of the Group or any Associated Company, by delivering it to him at his place of work or by sending to him a facsimile transmission or by electronic
means addressed to him at his place of work and if so sent it shall be deemed to have been duly given at the time of transmission. 

  

	 	17.2	Any notice or document so sent to an Employee or Optionholder shall be deemed to have been duly given notwithstanding that such Optionholder is then deceased (and
whether or not the Company or other Grantor has notice of his death) except where his Personal Representatives have established their title to the satisfaction of the Company and supplied to the Company an address to which documents are to be sent.

  

	 	17.3	Any notice in writing or document to be submitted or given to the Grantor, the Company or any Administrator appointed to administer the Plan in accordance or in
connection with this Plan may be delivered, sent by post, facsimile transmission or electronic means but shall not in any event be duly given unless it is actually received by the secretary of the Company or such other individual as may from time to
time be nominated by the Company and whose name and address is notified to Optionholders. 

  

	18.	MISCELLANEOUS 

  

	 	18.1	No Option to purchase existing Shares shall be granted by any person unless that person beneficially owns such Shares at the Date of Grant or the Committee is satisfied
that sufficient Shares will be made available to satisfy the exercise in full of all Options granted or to be granted by that person. 

  

	 	18.2	The Committee may from time to time make and vary such rules and regulations not inconsistent herewith and establish such procedures for the administration and
implementation of this Plan as they think fit. 

  

	 	18.3	The Company shall not be obliged to provide Optionholders with copies of any notices, circular or other documents sent to holders of Shares. 

 

	 	18.4	The costs of the administration and implementation of this Plan shall be borne by the Company. 

 

	19.	JURISDICTION 

  

	 	19.1	This Plan shall be governed by and construed in all respects in accordance with English law. 

 

	 	19.2	In applying for the grant of an Option an Eligible Employee shall be deemed to submit to the exclusive jurisdiction of the English courts as regards any claim legal
action or proceedings arising out of this Plan and to waive any objection to such proceedings taking place in the English courts on the grounds of venue or on the grounds that such proceedings have been brought in an inconvenient forum.

  
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	20.	DATA PROTECTION 

  

	 	20.1	By accepting the grant of an Option the Optionholder shall agree and consent to: 

 

	 	20.1.1	the collection, use and processing by any member of the Group, the Savings Body and any Relevant Trustee of Personal Data relating to the Optionholder, for all purposes
reasonably connected with the administration of this Plan and the subsequent registration of the Optionholder or any other person as a holder of Shares acquired pursuant to the exercise of an Option; 

 

	 	20.1.2	any member of the Group, the Savings Body and any Relevant Trustee transferring Personal Data to or between any of such persons for all purposes reasonably connected
with the administration of this Plan; 

  

	 	20.1.3	the use of Personal Data by any member of the Group, the Savings Body and any Relevant Trustee for all purposes reasonably connected with the administration of this
Plan; and 

  

	 	20.1.4	the transfer to and retention of such Personal Data by any third party for such purposes. 

 

	21.	THIRD PARTY RIGHTS 

  

	 	21.1	Except as otherwise expressly stated to the contrary, neither this Plan nor the grant of any Option nor the U.K. Contracts (Rights of Third Parties) Act 1999 shall have
the effect of giving any third party any rights under this Plan and that Act shall not apply to this Plan or to the terms of any Option granted under it. 

  
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