Document:

mm12-1511_8ke102.htm

 

 

Exhibit 10.2

 

 

 

EXECUTION VERSION

 

 

 

 

 

 

GUARANTY AGREEMENT

 

dated as of

 

December 16, 2011

 

among

 

TRINITY ACQUISITION PLC,

 

WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY,

 

THE OTHER GUARANTORS

 

IDENTIFIED HEREIN

 

and

 

BARCLAYS BANK PLC,

 

as Administrative Agent

 

 

 

 

 

 

 

  

  

  

TABLE OF CONTENTS

 

	
ARTICLE I Definitions

	
1

	
SECTION 1.01.

	
Credit Agreement

	
1

	
SECTION 1.02.

	
Other Defined Terms

	
1

	
ARTICLE II The Guaranty

	
2

	
SECTION 2.01.

	
Guaranty

	
2

	
SECTION 2.02.

	
Guarantee of Payment

	
2

	
SECTION 2.03.

	
No Limitations

	
2

	
SECTION 2.04.

	
Reinstatement

	
4

	
SECTION 2.05.

	
Agreement To Pay; Subrogation

	
4

	
SECTION 2.06.

	
Information

	
4

	
SECTION 2.07.

	
Payments Free and Clear

	
4

	
ARTICLE III Indemnity, Subrogation and Subordination

	
4

	
SECTION 3.01.

	
Indemnity and Subrogation

	
4

	
SECTION 3.02.

	
Contribution and Subrogation

	
5

	
SECTION 3.03.

	
Subordination

	
5

	
ARTICLE IV Miscellaneous

	
5

	
SECTION 4.01.

	
Notices

	
5

	
SECTION 4.02.

	
Waivers; Amendment

	
5

	
SECTION 4.03.

	
Administrative Agent’s Fees and Expenses; Indemnification

	
6

	
SECTION 4.04.

	
Successors and Assigns

	
6

	
SECTION 4.05.

	
Survival of Agreement

	
7

	
SECTION 4.06.

	
Counterparts; Effectiveness; Several Agreement

	
7

	
SECTION 4.07.

	
Severability

	
7

	
SECTION 4.08.

	
Right of Set-Off

	
7

	
SECTION 4.09.

	
Governing Law; Jurisdiction; Consent to Service of Process

	
8

	
SECTION 4.10.

	
WAIVER OF JURY TRIAL

	
8

	
SECTION 4.11.

	
Headings

	
9

	
SECTION 4.12.

	
Termination

	
9

	
SECTION 4.13.

	
Additional Guarantors

	
9

Exhibits

Exhibit A                      Form of Supplement

 

  

  

  

GUARANTY AGREEMENT (this “Guaranty Agreement”) dated as of December 16, 2011, among TRINITY ACQUISITION PLC, a company formed under the laws of England and Wales having company number 03588435 (the “Borrower”), WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY, a company incorporated under the laws of Ireland having company number 475616 (the “Parent”), the other Guarantors (as defined below), and BARCLAYS BANK PLC, as Administrative Agent (the “Administrative Agent”).

 

Reference is made to the Credit Agreement dated as of the date hereof (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the Parent, the Lenders party thereto and the Administrative Agent.  The Lenders have agreed to extend credit to the Borrower subject to the terms and conditions set forth in the Credit Agreement.  The obligations of the Lenders to extend such credit are conditioned upon, among other things, the execution and delivery of this Guaranty Agreement.  The Parent and the other Guarantors are affiliates of the Borrower, will derive substantial benefits from the extension of credit to the Borrower pursuant to the Credit Agreement and are willing to execute and deliver this Guaranty Agreement in order to induce the Lenders to extend such credit.  Accordingly, the parties hereto agree as follows:

 

ARTICLE I

Definitions

 

SECTION 1.01. Credit Agreement.  (a)  Capitalized terms used in this Guaranty Agreement and not otherwise defined herein have the meanings specified in the Credit Agreement.

 

(b) The rules of construction specified in Section 1.02 of the Credit Agreement also apply to this Guaranty Agreement.

 

SECTION 1.02. Other Defined Terms.  As used in this Guaranty Agreement, the following terms have the meanings specified below:

 

“Administrative Agent” has the meaning assigned to such term in the preliminary statement of this Guaranty Agreement.

 

“Borrower” has the meaning assigned to such term in the preliminary statement of this Guaranty Agreement.

 

“Credit Agreement” has the meaning assigned to such term in the preliminary statement of this Guaranty Agreement.

 

“Guaranty Agreement” has the meaning assigned to such term in the preliminary statement of this Guaranty Agreement.

 

“Guaranteed Parties” means (a) the Lenders (including the Swing Line Lender), (b) the Administrative Agent, (c) the L/C Issuers, (d) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document and (e) the successors and assigns of each of the foregoing.

 

“Guarantors” means the Parent, each of its Subsidiaries identified on Schedule 1.01(b) of the Credit Agreement and each Subsidiary that, at the Parent’s election, becomes a party to this Guaranty Agreement as a Guarantor after the Closing Date in accordance with Section 4.13.

 

  

  

  

“Obligations” means (a) the due and punctual payment by the Borrower of (i) the principal of and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans and Letters of Credit, when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, and (ii) all other monetary obligations of the Borrower to any of the Guaranteed Parties under the Credit Agreement and each of the other Loan Documents, including obligations to pay fees, expense reimbursement obligations and indemnification obligations, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), and (b) the due and punctual payment of all the obligations of each other Loan Party under or pursuant to this Guaranty Agreement and each of the other Loan Documents.

 

“Non-Parent Guarantors” means each Guarantor that does not wholly-own (directly or indirectly) the Borrower.

 

“Parent” has the meaning assigned to such term in the preliminary statement of this Guaranty Agreement.

 

“Parent Guarantors” means each Guarantor that wholly-owns (directly or indirectly) the Borrower.

 

ARTICLE II

The Guaranty

 

SECTION 2.01. Guaranty.  Each Guarantor unconditionally and irrevocably guarantees, jointly with the other Guarantors and severally, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Obligations.  Each of the Guarantors further agrees that the Obligations may be extended or renewed, in whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Obligation.  Each of the Guarantors waives presentment to, demand of payment from and protest to the Borrower or any other Loan Party of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment.

 

SECTION 2.02. Guarantee of Payment.  Each of the Guarantors further agrees that its guarantee hereunder constitutes a guarantee of payment when due and not of collection, and waives any right to require that any resort be had by the Guaranteed Parties to any balance of any deposit account or credit on the books of any Guaranteed Party in favor of the Borrower or any other Person.

 

SECTION 2.03. No Limitations.  (a) Except for termination of a Guarantor’s obligations hereunder as expressly provided in Section 4.12, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations or otherwise.  Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by (i) the failure of any Guaranteed Party to assert any claim or demand or to enforce any right or remedy under the provisions of any Loan Document or otherwise; (ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under this Guaranty Agreement; (iii) the release of any security held by any Guaranteed Party for any of the Obligations; (iv) any default, failure or delay,

 

  

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willful or otherwise, in the performance of the Obligations; (v) any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of any other Loan Party; (vi) any insolvency or similar proceeding of any other Loan Party; or (vii) any other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the indefeasible payment in full in cash of all the Obligations).  Without limiting the generality of the foregoing, each Guarantor’s liability shall extend to all amounts that constitute part of the Obligations and would be owed by any other Loan Party to any Guaranteed Party under or in respect of the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization, insolvency, liquidation, administration or similar proceeding involving such other Loan Party.  Each Guarantor expressly authorizes the Guaranteed Parties to take and hold security for the payment and performance of the Obligations, to exchange, waive or release any or all such security (with or without consideration), to enforce or apply such security and direct the order and manner of any sale thereof in their sole discretion or to release or substitute any one or more other guarantors or obligors upon or in respect of the Obligations, all without affecting the obligations of any Guarantor hereunder.

 

(b) To the fullest extent permitted by applicable law, each Guarantor waives (a) any right to require any Guaranteed Party, as a condition of payment or performance by such Guarantor, to proceed against the Borrower, any other guarantor (including any other Guarantor) of the Obligations or any other Person, (b) any defense based on or arising out of any defense of the Borrower or any other Loan Party or the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of the Borrower or any other Loan Party, other than the indefeasible payment in full in cash of all the Obligations and (c) any law or regulation of any jurisdiction or any other event affecting any term of any Obligation.  The Guaranteed Parties may, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with the Parent, the Borrower or any other Loan Party or exercise any other right or remedy available to them against the Parent, the Borrower or any other Loan Party, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Obligations have been fully and indefeasibly paid in full in cash.  To the fullest extent permitted by applicable law, each Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against the Parent, the Borrower or any other Loan Party, as the case may be, or any security.

 

(c) Each Guarantor, and by its acceptance of this Guaranty, the Administrative Agent and each other Guaranteed Party, hereby confirms that it is the intention of all such Persons that this Guaranty and the Guarantee of the Obligations by each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of Debtor Relief Laws, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the Guarantee of the Obligations by each Guarantor hereunder.  To effectuate the foregoing intention, the Administrative Agent, the other Guaranteed Parties and the Guarantors hereby irrevocably agree that the Guarantee of the Obligations by each Guarantor (other than the Parent) under this Guaranty at any time shall be limited to the maximum amount as will result in the Guarantee of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance after giving full effect to the liability under this Guaranty and any contribution rights set forth in Section 3.02 but before taking into account any liabilities under any other Guarantee.

 

(d) To the extent that any Guarantor shall be required hereunder to pay any portion of any Obligations exceeding the greater of (a) the amount of the value actually received by such Guarantor and its Subsidiaries (other than the Borrower) from the Facilities and (b) the amount such Guarantor

 

  

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would otherwise have paid if such Guarantor had paid the aggregate amount of the Obligations (excluding the amount thereof repaid by the Borrower) in the same proportion as such Guarantor’s net worth on the date enforcement is sought hereunder bears to the aggregate net worth of all the Guarantors on such date, then such Guarantor shall be reimbursed by such other Guarantors for the amount of such excess, pro rata, based on the respective net worth of such other Guarantors on such date.  For purposes of determining the net worth of any Guarantor in connection with the foregoing, all Guarantees of such Guarantor other than the Guaranty will be deemed to be enforceable and payable after the Guaranty.

 

SECTION 2.04. Reinstatement.  Each of the Guarantors agrees that its guarantee hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded or must otherwise be restored by any Guaranteed Party upon the bankruptcy, reorganization, insolvency, liquidation, administration or otherwise of the Borrower, any other Loan Party or otherwise.

 

SECTION 2.05. Agreement To Pay; Subrogation.  In furtherance of the foregoing and not in limitation of any other right that the Administrative Agent or any other Guaranteed Party has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other Loan Party to pay any Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent for distribution to the applicable Guaranteed Parties in cash the amount of such unpaid Obligation.  Upon payment by any Guarantor of any sums to the Administrative Agent as provided above, all rights of such Guarantor against the Borrower or any other Loan Party arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Article III.

 

SECTION 2.06. Information.  Each Guarantor assumes all responsibility for being and keeping itself informed of the Borrower’s and each other Loan Party’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that none of the Guaranteed Parties will have any duty to advise such Guarantor of information known to it or any of them regarding such circumstances or risks.

 

SECTION 2.07. Payments Free and Clear

 

.  All sums payable by each Guarantor hereunder shall be paid in full, without set-off or counterclaim or any deduction or withholding whatsoever (including, subject to Section 3.01 of the Credit Agreement, any Taxes), and if any such deduction or withholding is required, the sum payable by such Guarantor shall be increased as necessary so that after any required withholding or the making of all required deductions (including withholdings or deductions applicable to additional sums payable under this Section) the recipient receives an amount equal to the sum it would have received had no such withholding or deduction been made, in accordance with the terms and subject to the limitations and exceptions set forth in Section 3.01 of the Credit Agreement.

 

ARTICLE III

Indemnity, Subrogation and Subordination

 

SECTION 3.01. Indemnity and Subrogation

 

.  In addition to all such rights of indemnity and subrogation as the Guarantors may have under applicable law (but subject to Section 3.03), the Borrower agrees that in the event a payment of an Obligation shall be made by any Guarantor under this Guaranty Agreement, the Borrower shall indemnify such Guarantor for the full amount of such payment and such Guarantor shall be subrogated to the rights of the Person to whom such payment shall have been made to the extent of such payment.

 

  

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SECTION 3.02. Contribution and Subrogation.  (a) Each Non-Parent Guarantor (a “Contributing Party”) agrees (subject to Section 3.03) that, in the event a payment shall be made by any other Non-Parent Guarantor hereunder in respect of any Obligation and such other Guarantor (the “Claiming Party”) shall not have been fully indemnified by the Borrower as provided in Section 3.01, the Contributing Party shall indemnify the Claiming Party in an amount equal to the amount of such payment, multiplied by a fraction of which the numerator shall be the net worth of the Contributing Party on the date hereof and the denominator shall be the aggregate net worth of all the Non-Parent Guarantors on the date hereof (or, in the case of any Non-Parent Guarantor becoming a party hereto pursuant to Section 4.13, the date of the supplement hereto executed and delivered by such Non-Parent Guarantor).  Any Contributing Party making any payment to a Claiming Party pursuant to this Section 3.02 shall be subrogated to the rights of such Claiming Party under Section 3.01 to the extent of such payment.

 

(b)           Notwithstanding anything to the contrary contained herein, the parties hereto acknowledge and agree that each Non-Parent Guarantor shall have a right of reimbursement and indemnity from each Parent Guarantor (to the extent such Non-Parent Guarantor is a wholly-owned Subsidiary of such Parent Guarantor) for any amount paid by such Non-Parent Guarantor in lieu of a right of contribution between such Non-Parent Guarantor and such Parent Guarantor.

 

SECTION 3.03. Subordination.  (a) Notwithstanding any provision of this Guaranty Agreement to the contrary, all rights of the Guarantors under Sections 3.01 and 3.02 and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully subordinated to the indefeasible payment in full in cash of the Obligations.  No failure on the part of the Borrower or any Guarantor to make the payments required by Sections 3.01 and 3.02 (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Guarantor with respect to its obligations hereunder, and each Guarantor shall remain liable for the full amount of the obligations of such Guarantor hereunder.

 

(b)           Each Guarantor hereby agrees that all Indebtedness and other monetary obligations owed by it to any other Guarantor or any other Subsidiary shall be fully subordinated to the indefeasible payment in full in cash of the Obligations.

 

ARTICLE IV

Miscellaneous

 

SECTION 4.01. Notices.  All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in writing and given as provided in Section 10.02 of the Credit Agreement.  All communications and notices hereunder to any Guarantor shall be given to it in care of the Borrower as provided in Section 10.02 of the Credit Agreement.

 

SECTION 4.02. Waivers; Amendment.  (a)  No failure or delay by the Administrative Agent or any Guaranteed Party in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent and the Guaranteed Parties hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Guaranty Agreement or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 4.02, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  Without limiting the generality of the foregoing, the making of a Loan or the issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative

 

  

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Agent or any Guaranteed Party may have had notice or knowledge of such Default at the time.  No notice or demand on any Loan Party in any case shall entitle any Loan Party to any other or further notice or demand in similar or other circumstances.

 

(b) Neither this Guaranty Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Loan Party or Loan Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 10.01 of the Credit Agreement.

 

SECTION 4.03. Administrative Agent’s Fees and Expenses; Indemnification.  (a)  The parties hereto agree that the Administrative Agent shall be entitled to reimbursement of its expenses incurred hereunder as provided in Section 10.04 of the Credit Agreement.

 

(b) Without limitation of its indemnification obligations under the other Loan Documents, each Guarantor jointly and severally agrees to indemnify the Administrative Agent and the other Indemnitees (as defined in Section 10.04(b) of the Credit Agreement) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses incurred by or asserted against any Indemnitee (including the fees, charges and disbursements of one counsel to the Indemnitees, taken as a whole and, solely in the case of a conflict of interest, one additional counsel to each group of similarly affected Indemnitees, taken as a whole (and, if reasonably necessary, of one local counsel in any relevant material jurisdiction or one special counsel in any relevant area of expertise to each group of similarly affected Indemnitees, taken as a whole) and settlement costs) arising out of, in connection with, or as a result of, the execution, delivery or performance of this Guaranty Agreement or any claim, litigation, investigation or proceeding relating to any of the foregoing agreement or instrument contemplated hereby, whether or not any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (y) result from a claim brought by the Borrower or any other Loan Party against an Indemnitee for material breach of such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or such other Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction or (z) result from a dispute solely amongst the Indemnitees (other than claims against an Indemnitee in its capacity as Administrative Agent) not arising out of any act or omission of the Parent, the Borrower, or any Subsidiary.

 

(c) Any such amounts payable as provided hereunder shall be additional Obligations guaranteed hereunder.  The provisions of this Section 4.03 shall remain operative and in full force and effect regardless of the termination of this Guaranty Agreement or any other Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of the Obligations, the invalidity or unenforceability of any term or provision of this Guaranty Agreement or any other Loan Document, or any investigation made by or on behalf of any Guaranteed Party.  All amounts due under this Section 4.03 shall be payable on written demand therefor.

 

SECTION 4.04. Successors and Assigns.  Whenever in this Guaranty Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on behalf of any Guarantor or the Administrative Agent that are contained in this Guaranty Agreement shall bind and inure to the benefit of their respective successors and assigns.

 

  

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SECTION 4.05. Survival of Agreement.  All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Guaranty Agreement or any other Loan Document shall be considered to have been relied upon by the Lenders and shall survive the execution and delivery of the Loan Documents and the making of any Loans, regardless of any investigation made by any Lender or on its behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended under the Credit Agreement, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under any Loan Document, including with respect to any Letter of Credit, is outstanding and unpaid and so long as the Commitments have not expired or terminated.

 

SECTION 4.06. Counterparts; Effectiveness; Several Agreement.  This Guaranty Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Guaranty Agreement by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Guaranty Agreement.  This Guaranty Agreement and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  This Guaranty Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto and thereafter shall be binding upon each party hereto, the Administrative Agent and their respective permitted successors and assigns, and shall inure to the benefit of such parties, the Administrative Agent and the other Guaranteed Parties and their respective successors and assigns, except that no party hereto shall have the right to assign or transfer its rights or obligations hereunder or any interest herein (and any such assignment or transfer shall be void) except as expressly contemplated by this Guaranty Agreement or the Credit Agreement.  This Guaranty Agreement shall be construed as a separate agreement with respect to each Loan Party and may be amended, modified, supplemented, waived or released with respect to any Loan Party without the approval of any other Loan Party and without affecting the obligations of any other Loan Party hereunder.

 

SECTION 4.07. Severability.  If any provision of this Guaranty Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Guaranty Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

SECTION 4.08. Right of Set-Off.  If an Event of Default shall have occurred and be continuing, each Lender, each L/C Issuer and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Person or Affiliate to or for the credit or the account of any Guarantor against any of and all the obligations of such Guarantor then due and owing under this Guaranty Agreement to such Person, irrespective of whether or not such Person shall have made any demand under this Guaranty Agreement.  The rights of each Lender and the L/C Issuer under this Section 4.08 are in addition to other rights and remedies (including other rights of set-off) which such Person may have.

 

  

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SECTION 4.09. Governing Law; Jurisdiction; Consent to Service of Process.  (a)  This Guaranty Agreement shall be governed by, and construed in accordance with, the law of the State of New York without regard to principles of conflicts of law that would result in the  application of any law other than the law of the State of New York.

 

(b) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Guaranty Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

(c) Each of the parties hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Guaranty Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section 4.09.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 

(d) The Parent hereby irrevocably appoints Adam Ciongoli (c/o Trinity Acquisition plc, One World Financial Center, 200 Liberty Street, 7th floor, New York, New York 10281), and the Borrower hereby irrevocably appoints CT Corporation System (c/o CT Corporation System, 111 Eighth Avenue, New York, New York 10011), in each case, as its authorized agent in the Borough of Manhattan of the City of New York upon which process may be served in any suit or proceeding relating to the Credit Agreement, this Guaranty Agreement or any other Loan Document, and agrees that service of process upon such agent, and written notice of said service to the Parent or the Borrower, as applicable, by the person serving the same in the manner provided for notices in Section 4.01, shall be deemed in every respect effective service of process upon such party in any such suit or proceeding.  The Parent and the Borrower further agree to take any and all action as may be necessary to maintain such designation and appointment of such agents in full force and effect from the date hereof until the Commitments have expired or been terminated and all Obligations shall have been indefeasibly paid in full.  Each other Guarantor irrevocably consents to service of process delivered by hand or overnight courier service, mailed by certified or registered mail, to Trinity Acquisition plc, One World Financial Center, 200 Liberty Street, 7th floor, New York, New York 10281 (Attention: Adam Ciongoli), and the Administrative Agent irrevocably consents to service of process in the manner provided for notices in Section 4.01.  Nothing in this Guaranty Agreement or any other Loan Document will affect the right of any party to this Guaranty Agreement to serve process in any other manner permitted by law.

 

SECTION 4.10. WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE

 

  

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FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 4.10.

 

SECTION 4.11. Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Guaranty Agreement and shall not affect the construction or interpretation of this Guaranty Agreement or any other Loan Document.

 

SECTION 4.12. Termination.  (a)  Subject to Section 2.04, this Guaranty Agreement and the Guarantees made herein shall terminate when all the outstanding Obligations have been indefeasibly paid in full and the Lenders have no further commitment to lend under the Credit Agreement.

 

(a) A Non-Parent Guarantor shall automatically be released from its obligations hereunder upon the consummation of any transaction permitted by the Credit Agreement as a result of which such Non-Parent Guarantor ceases to be a Subsidiary of the Parent; provided that the Required Lenders shall have consented to such transaction (to the extent required by the Credit Agreement) and the terms of such consent did not provide otherwise.

 

SECTION 4.13. Additional Guarantors.  If the Parent at its option at any time elects that additional Subsidiaries become Guarantors hereunder after the date hereof, then such Subsidiary shall become a Guarantor hereunder with the same force and effect as if originally named as a Guarantor herein upon (a) execution and delivery by the Administrative Agent and  such Subsidiary of an instrument in the form of Exhibit A hereto and (b) delivery to the Administrative Agent of such Organization Documents, resolutions and favorable opinions of counsel or may be requested by the Administrative Agent in its reasonable discretion, all in form, content and scope reasonably satisfactory to the Administrative Agent.  The execution and delivery of any such instrument shall not require the consent of any other Loan Party hereunder.  The rights and obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the addition of any new Loan Party as a party to this Guaranty Agreement.

 

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9

  

IN WITNESS WHEREOF, the parties hereto have duly executed this Guaranty Agreement as of the day and year first above written.

BORROWER:

 

	 	 	 	TRINITY ACQUISITION PLC	 
	
 

	 	 	
 

	 
	 	 	 	By:	 /s/ Stephen Wood	 
	
 

	 	 	
 

	
Name:

	
Stephen Wood

	 
	 	 	 	 	Title:	 Director	 
	 	 	 	
 

	 	 
	 	 	 	 	 	 
	 	 	 	 	
signing under a power of attorney dated 9 December 2011

 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Trinity Acquisition plc Guaranty Agreement]

  

  

  

	 	 	 	 	 
	
PARENT GUARANTOR:

SIGNED AND DELIVERED for and on

behalf of and as the deed of

WILLIS GROUP HOLDINGS PUBLIC

LIMITED COMPANY,

	 	 	
 

	 
	by its lawfully appointed attorney 	 	 	 /s/ Michael K. Neborkak	 
	
in the presence of:

	 	 	
Name:

	
  Michael K. Neborkak

	 
	 	 	 	
Title: 

	Group Chief Financial Officer	 

	 Illegible	 	 	 	 
	
(Witness’ Signature)

	 	 	 	 
	 	 	 	 	 
	 200 Liberty Street	 	 	 	 
	 New York, NY 10281	 	 	 	 
	(Witness’ Address) 	 	 	 	 
	 	 	 	 	 
	 Analyst	 	 	 	 
	(Witness’ Occupation) 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Trinity Acquisition plc Guaranty Agreement]

  

  

  

NON-PARENT GUARANTORS:

 

	 	 	 	TA I LIMITED	 
	
 

	 	 	
 

	 
	 	 	 	By:	 /s/ Stephen Wood	 
	
 

	 	 	
 

	
Name:

	
Stephen Wood

	 
	 	 	 	 	Title:	 Director	 
	 	 	 	
 

	 	 
	 	 	 	 	 	 
	 	 	 	 	
signing under a power of attorney dated 9 December 2011

 	 

 

	 	 	 	WILLIS GROUP LIMITED	 
	
 

	 	 	
 

	 
	 	 	 	By:	 /s/ Stephen Wood	 
	
 

	 	 	
 

	
Name:

	
Stephen Wood

	 
	 	 	 	 	Title:	 Director	 
	 	 	 	
 

	 	 
	 	 	 	 	 	 
	 	 	 	 	
signing under a power of attorney dated 9 December 2011

 	 

 

	 	 	 	
WILLIS GROUP HOLDINGS PUBLIC

LIMITED COMPANY

	 
	
 

	 	 	
 

	 
	 	 	 	By:	/s/ Stephen Wood	 
	
 

	 	 	
 

	
Name:

	
Stephen Wood

	 
	 	 	 	 	Title:	 Director	 
	 	 	 	
 

	 	 
	 	 	 	 	 	 
	 	 	 	 	
signing under a power of attorney dated 9 December 2011

 	 

 

 

 

 

 

 

 

[Signature Page to Trinity Acquisition plc Guaranty Agreement]

  

  

  

 

 

	 	 	 	
WILLIS NORTH AMERICA INC.

	 
	
 

	 	 	
 

	 
	 	 	 	By:	 /s/ Adam Ciongoli	 
	
 

	 	 	
 

	
Name:

	
Adam Ciongoli

	 
	 	 	 	 	Title:	 Director, Secretary, and Executive Vice President	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Trinity Acquisition plc Guaranty Agreement]

  

  

  

 

 

 

 

	 	 	 	
WILLIS NETHERLANDS HOLDINGS B.V.

	 
	
 

	 	 	
 

	 
	 	 	 	By:	 /s/ A. C. Konijnendijk	 
	
 

	 	 	
 

	
Name:

	
A. C. Konijnendijk

	 
	 	 	 	 	Title:	 Managing Director A	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Trinity Acquisition plc Guaranty Agreement]

  

  

  

 

 

 

 

	 	 	 	
  

BARCLAYS BANK PLC,

as Administrative Agent

	 
	
 

	 	 	
 

	 
	 	 	 	By:	 /s/ Kevin Cullen	 
	
 

	 	 	
 

	
Name:

	
Kevin Cullen

	 
	 	 	 	 	Title:	 Director	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Trinity Acquisition plc Guaranty Agreement]

  

  

  

 

Exhibit A to the

Guaranty Agreement

 

SUPPLEMENT NO.___ dated as of __________, 20__, to the Guaranty Agreement dated as of December 16, 2011 among TRINITY ACQUISITION PLC, a company formed under the laws of England and Wales having company number 03588435 (the “Borrower”), WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY, a company incorporated under the laws of Ireland having company number 475616 (the “Parent”), each Subsidiary constituting a “Guarantor” thereunder as of date hereof (each of the Parent and each such Subsidiary, individually, a “Guarantor” and collectively, the “Guarantors”) and BARCLAYS BANK PLC, as Administrative Agent.

 

A.           Reference is made to the Credit Agreement dated as of December 16, 2011 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the Parent, the Lenders from time to time party thereto and Barclays Bank PLC, as Administrative Agent.

 

B.           Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement and the Guaranty Agreement referred to therein.

 

C.           The Guarantors have entered into the Guaranty Agreement in order to induce the Lenders to make Loans.  Section 4.13 of the Guaranty Agreement provides that additional Subsidiaries of the Parent may become Guarantors under the Guaranty Agreement by execution and delivery of an instrument in the form of this Supplement.  The undersigned Subsidiary (the “New Guarantor”) is executing this Supplement to become a Guarantor under the Guaranty Agreement in order to induce the Lenders to make additional Loans and as consideration for Loans previously made.

 

Accordingly, the Administrative Agent and the New Guarantor agree as follows:

 

SECTION 1.                      In accordance with Section 4.13 of the Guaranty Agreement, the New Guarantor by its signature below becomes a Guarantor under the Guaranty Agreement with the same force and effect as if originally named therein as a Guarantor, and the New Guarantor hereby (a) agrees to all the terms and provisions of the Guaranty Agreement applicable to it as a Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Guarantor thereunder are true and correct on and as of the date hereof.  Each reference to a “Guarantor” in the Guaranty Agreement shall be deemed to include the New Guarantor.  The Guaranty Agreement is hereby incorporated herein by reference.

 

SECTION 2.                      The New Guarantor represents and warrants to the Administrative Agent and the other Guaranteed Parties that this Supplement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms.

 

SECTION 3.                      This Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Supplement shall become effective when the Administrative Agent shall have received (a) a counterpart of this Supplement that bears the signature of the New Guarantor and the Administrative Agent has executed a counterpart hereof and (b) such other documents and opinions as the Administrative Agent may have requested in accordance with Section 4.13 of the Guaranty Agreement.  Delivery of an executed signature page to this Supplement by facsimile

 

  

A-1

  

transmission or other electronic imaging means shall be as effective as delivery of a manually signed counterpart of this Supplement.

 

SECTION 4.                      Except as expressly supplemented hereby, the Guaranty Agreement shall remain in full force and effect.

 

SECTION 5.                      THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

 

SECTION 6.                      In case any one or more of the provisions contained in this Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Guaranty Agreement shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction).  The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 7.                      All communications and notices hereunder shall be in writing and given as provided in Section 10.02 of the Credit Agreement.

 

SECTION 8.                      The New Guarantor agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent.

 

 

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A-2

  

IN WITNESS WHEREOF, the New Guarantor and the Administrative Agent have duly executed this Supplement to the Guaranty Agreement as of the day and year first above written.

 

 

	 	 	 	[NAME OF NEW GUARANTOR]	 
	
 

	 	 	
 

	 
	 	 	 	By:	 	 
	
 

	 	 	
Name:

	
 

	 
	 	 	 	
Title: 

	 	 

 

 

 

 

	 	 	 	
BARCLAYS BANK PLC,

as Administrative Agent

	 
	
 

	 	 	
 

	 
	 	 	 	By:	 	 
	
 

	 	 	
Name:

	
 

	 
	 	 	 	
Title: 

	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Guaranty Supplement]jg12-1511_8ke103.htm

 

 

EXHIBIT 10.3

WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY

FORM OF DEFERRED CASH AWARD AGREEMENT- 2011 LONG-TERM INCENTIVE

PROGRAM

(Performance-Based and Time-Based Deferred Cash Awards)

 

THIS DEFERRED CASH AWARD AGREEMENT (this “Agreement”), effective as of [INSERT] is made by and between Willis Group Holdings Public Limited Company, and any successor thereto (hereinafter referred to as the “Company”) and the individual (the “Participant”) who has duly completed, executed and delivered the Acceptance Form to this Agreement, a copy of which is attached hereto as Schedule A (including Exhibit 1 thereto) and which is deemed to be a part hereof (the “Acceptance Form”).

 

WHEREAS, the Company has established the 2011 Long-Term Incentive Program to provide, among other things, the opportunity for Participants to share in the Company’s success and to receive certain cash and equity incentives if certain performance and other criteria are attained.

 

WHEREAS, the Performance-Based Deferred Cash Award (as hereinafter defined) is also granted pursuant to the terms and conditions of the SMIP (as hereinafter defined), and is therefore, intended to qualify as “qualified performance-based compensation” for purposes of Section 162(m) of the Code (as hereinafter defined).

 

NOW, THEREFORE, the parties hereto do hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

Defined terms used in this Agreement shall have the meaning specified in this Article I unless the context clearly indicates to the contrary.

 

Section 1.1- Act

 

“Act” shall mean the Companies Act 1963 of Ireland.

 

Section 1.2- Adjusted Earnings Per Share

 

“Adjusted Earnings Per Share” shall mean the adjusted earnings per share as stated by the Company in its annual financial results as issued by the Company with respect to the Performance Period.

 

Section 1.3- Adjusted Operating Margin

 

“Adjusted Operating Margin” shall mean the adjusted operating margin as stated by the Company in its annual financial results as issued by the Company with respect to the Performance Period.

 

 

  

  

  

Section 1.4- Board

 

“Board” shall mean the board of directors of the Company.

 

Section 1.5- Cash Awards

 

“Cash Awards” shall mean Performance-Based Deferred Cash Awards and Time-Based Deferred Cash Awards, collectively.

 

Section 1.6 - Cash Payment

 

“Cash Payment” shall mean the cash payment subject to the Time-Based Deferred Cash Award that has become vested as set out in Section 3.2 and paid pursuant to Section 3.4.

 

Section 1.7 - Cause

 

“Cause” shall mean (i) the Participant’s continued and/or chronic failure to adequately and/or competently perform his material duties with respect to the Company or its Subsidiaries after having been provided reasonable notice of such failure and a period of at least ten days after the Participant’s receipt of such notice to cure and/or correct such performance failure, (ii) willful misconduct by the Participant in connection with the Participant’s employment which is injurious to the Company or its Subsidiaries (willful misconduct shall be understood to include, but not be limited to, any breach of the duty of loyalty owed by the Participant to the Company or its Subsidiaries), (iii) conviction of any criminal act (other than minor road traffic violations not involving imprisonment), (iv) any breach of the Participant’s restrictive covenants and other obligations in the Participant’s employment agreement (if any), or any other non-compete agreement and/or confidentiality agreement entered into between the Participant and the Company or any of its Subsidiaries (other than an insubstantial, inadvertent and non-recurring breach), or (v) any material violation of any written Company policy after reasonable notice and an opportunity to cure such violation within ten (10) days after the Participant’s receipt of such notice.

 

Section 1.8  - Certification Date

 

“Certification Date” shall mean the date that the Committee certifies in accordance with the requirements of Code Section 162(m), the amount payable under the SMIP based on “Earnings” for the Performance Period (as defined in the SMIP), the attainment level of the Performance Objectives and the amount of the Earned Performance Payment subject to Performance-Based Deferred Cash Award based on the amount payable under the SMIP and attainment level of the additional Performance Objectives.

 

Section 1.9 - Change of Control

 

“Change of Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person (within the meaning of the U.S. Securities Exchange Act of 1934 as amended, and the rules of the U.S. Securities and Exchange Commission thereunder as in effect on the date hereof) or group of Persons of the ordinary shares of the Company representing more than 50% of the aggregate voting power represented by the issued and outstanding ordinary shares of the Company; (b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Company by Persons (as defined above) who

 

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were neither (i) nominated by the Company’s board of directors nor (ii) appointed by directors so nominated.

 

Section 1.10- Code

 

“Code” shall mean the U.S. Internal Revenue Code of 1986, as amended.

 

Section 1.11 - Committee

 

“Committee” shall mean the Compensation Committee of the Board (or if no such committee is appointed, the Board provided that a majority of the Board are “independent directors” for the purpose of the rules and regulations of the New York Stock Exchange).

 

Section 1.12 - Earned Performance Payment

 

“Earned Performance Payment” shall mean the cash payment subject to the Performance-Based Deferred Cash Award in respect of which the applicable Performance Objectives, as set out in Section 3.1 and Exhibit 1 to the Acceptance Form, have been achieved and shall become vested as set out in Section 3.2 and paid as set out in Section 3.4.

 

Section 1.13- Grant Date

 

“Grant Date” shall mean [INSERT].

 

Section 1.14 - Long-Term Incentive Program

 

“Long-Term Incentive Program” is a 2011 program adopted by the Compensation Committee of the Company under which grants of Cash Awards and equity awards are to be made to certain eligible employees of the Willis Group.

 

Section 1.15 - Performance-Based Deferred Cash Award

 

“Performance-Based Deferred Cash Award” shall mean a conditional right to receive a cash payment equal to the amount set forth in the Acceptance Form, upon vesting and payment, subject to the Company meeting certain Performance Objectives.

 

Section 1.16 - Performance Period

 

“Performance Period” shall mean January 1, 2011 - December 31, 2011.

 

Section 1.17 - Performance Objectives

 

“Performance Objectives” shall mean the performance objectives applicable to the Performance-Based Deferred Cash Awards which are based on an Adjusted Earnings Per Share or Adjusted Operating Margin that are set forth in Section 3.1(a) and Exhibit 1 to the Acceptance Form.

 

Section 1.18 - Permanent Disability

 

The Participant shall be deemed to have a “Permanent Disability” if the Participant meets the requirements of the definition of such term, or of an equivalent term, as defined in the

 

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Company’s or Subsidiary’s long-term disability plan applicable to the Participant or, if no such plan is applicable, in the event the Participant is unable by reason of physical or mental illness or other similar disability, to perform the material duties and responsibilities of his job for a period of 180 consecutive business days out of 270 business days.

 

Section 1.19 - Pronouns

 

The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates.

 

Section 1.20- Secretary

 

“Secretary” shall mean the Secretary of the Company.

 

Section 1.21- SMIP

 

“SMIP” means the Willis Group Holdings Senior Management Incentive Plan as amended and restated on December 30, 2009 by Willis Group Holdings Limited and as amended and restated and assumed by Willis Group Holdings Public Limited Company on December 31, 2009.

 

Section 1.22 - Subsidiary

 

“Subsidiary” shall mean with respect to the Company, a body corporate which is a subsidiary of the Company within the meaning of Section 155 of the Act.

 

Section 1.23- Time-Based Deferred Cash Award

 

“Time-Based Deferred Cash Award” shall mean a conditional right to receive a cash payment equal to the amount set forth in the Acceptance Form, upon vesting and payment as set forth in Section 3.2 and Section 3.4.

 

Section 1.24- Willis Group

 

“Willis Group” shall mean the Company and its Subsidiaries collectively.

ARTICLE II

 

GRANT OF CASH AWARDS

 

Section 2.1- Grant of Cash Awards

 

Subject to the terms and conditions set forth in this Agreement, including any country-specific provisions set forth in Schedule B to this Agreement and the additional terms and conditions set forth in the SMIP, the Company hereby grants to the Participant a Performance-Based Deferred Cash Award equal in value to the targeted amount set forth in the Acceptance Form and a Time-Based Deferred Cash Award equal in value to the amount set forth in the Acceptance Form.  Unless and until the Cash Awards becomes payable in the manner set forth in Article III hereof, the Participant shall have no right to the cash amounts underlying the Cash Awards. Prior to actual payment of the Cash Awards, the Cash Awards shall represent an

 

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unsecured obligation of the Company, payable (if at all) from the general assets of the Company or one of its Subsidiaries.

 

Section 2.2 - Employment Rights

 

The rights and obligations of the Participant under the terms of his office or employment with the Company or any Subsidiary shall not be affected by his participation in the Long-Term Incentive Program or any right to the Cash Awards.  The Cash Awards and the Participant’s participation in the Long-Term Incentive Program will not be interpreted to form an employment agreement with the Company or any Subsidiary.  The Participant hereby waives any and all rights to compensation or damages in consequence of the termination of his office or employment for any reason whatsoever insofar as those rights arise or may arise from his ceasing to have rights under or be entitled to earn, or vest in any Cash Awards as a result of such termination.  If, notwithstanding the foregoing, any Participant is allowed by a court of competent jurisdiction to assert a claim with regard to rights under the Long-Term Incentive Program, then, by accepting the Cash Awards, the Participant shall be deemed irrevocably to have agreed not to pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claims.

Section 2.3 - Employee Costs/Taxes

 

The Participant must make full payment to the Company or any Subsidiary by which the Participant is employed (the “Employer”) of all income tax, payroll tax, payment on account, and social insurance contribution amounts (“Tax”), which under federal, state, local or foreign law, it is required to withhold upon vesting or other tax event related to the Cash Awards.  In a case where the Employer is obliged to (or would suffer a disadvantage if it were not to) account for any Tax (in any jurisdiction) or any social security contributions recoverable from and legally applicable to the Participant for which the Participant is liable by virtue of the Participant’s acceptance of the Cash Awards or receipt of the Earned Performance Payment and/or the Cash Payment (the “Tax-Related Items”), the Participant shall make full payment to the Employer of an amount equal to the Tax-Related Items, or otherwise enter into arrangements acceptable to the Employer or another Subsidiary to secure that such a payment is made (whether by withholding from the Participant’s wages or other cash compensation paid to the Participant).

 

ARTICLE III

 

PERIOD OF VESTING

 

Section 3.1 - Commencement of Earning for the Performance-Based Deferred Cash Award

 

(a)    Subject to Sections 3.1(b) and 3.1(d) below and subject to the aggregate amount payable limitations under the SMIP, the Performance-Based Deferred Cash Award shall become an Earned Performance Payment as of the Certification Date and shall become eligible to vest in accordance with the provisions of Section 3.2 if and to the extent that the Performance Objectives set out in Targets 1 (50% of the targeted amount of the Performance-Based Deferred Cash Award) and 2 (50% of targeted amount of the Performance-Based Deferred Cash Award) of Exhibit 1 to the Acceptance Form are attained and subject to the Participant being in the employment of the Company or any Subsidiary at each respective vesting date as set forth in Section 3.2.

 

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(b)    The Performance Objectives may be adjusted to the extent such adjustments would not prevent the Performance-Based Deferred Cash Award from qualifying as qualified performance-based compensation under Section 162(m) of the Code.

 

(c)    The Participant understands and agrees that the terms under which the Performance-Based Deferred Cash Award shall become an Earned Performance Payment as described in Section 3.1(a) above and in Exhibit 1 to the Acceptance Form is confidential and the Participant agrees not to disclose, reproduce or distribute such confidential information concerning the Company, except as required in the course of the Participant’s employment with the Company or one of its Subsidiaries, without the prior written consent of the Company.  The Participant’s failure to abide by this condition may result in the immediate cancellation of the Performance-Based Deferred Cash Award.

 

(d)    As of the Certification Date, the Committee shall certify the amount payable under the SMIP, determine the attainment level of applicable Performance Objectives, and based on such certification and determination, shall declare the amount that shall become an Earned Performance Payment under the Performance-Based Deferred Cash Award.  Anything to the contrary in this Section 3.1 and Exhibit 1 to the Acceptance Form notwithstanding, the Committee retains sole discretion to determine the amount of the Performance-Based Deferred Cash Award that will become an Earned Performance Payment, subject to any requirements under Code Section 162(m).

 

(e)    If, prior to the end of the Performance Period, (i) the Participant’s employment terminates for reasons other than Cause, or (ii) there is a Change of Control, the Committee, may, in its sole discretion deem the Performance Objectives to be attained at the level (not to exceed the maximum level) determined by the Committee as to all or part of the unearned amount underlying the Performance-Based Deferred Cash Award and deem such amount to be an Earned Performance Payment, provided, however, that any such discretion by the Committee to deem the Performance Objectives attained shall be exercised in a manner that shall not prevent the Performance-Based Deferred Cash Award from qualifying as qualified performance-based compensation under Section 162(m) of the Code.

 

(f)    Any amount of the targeted Performance-Based Deferred Cash Award that is not declared by the Committee to be an Earned Performance Payment shall be forfeited immediately on the earlier of the Participant’s termination of employment or the date that the Committee makes a determination on whether the Performance Objectives were attained.

 

Section 3.2 - Commencement of Vesting for the Cash Awards

 

(a)    Subject to the Participant’s continued employment with the Willis Group through the applicable vesting date (set forth in the left column), (i) the Earned Performance Payment underlying the Performance-Based Deferred Cash Award and/or (ii) the Cash Payment underlying the Time-Based Deferred Cash Award shall vest in accordance with this Section 3.2:

 

	
Date Earned Performance Payment and/or Cash Payment becomes vested

	
Percentage of Earned Performance Payment and/or Cash Payment that becomes vested

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Second anniversary of Grant Date

[INSERT]

 

Third anniversary of Grant Date

[INSERT]

	
 

50%

 

50%

 

 

(b)    In the event of a termination of the Participant’s employment as a result of death or Permanent Disability, then (i) the Earned Performance Payment underlying the Performance-Based Deferred Cash Award and (ii) the Cash Payment underlying the Time-Based Deferred Cash Award shall become immediately vested with respect to the amounts underlying such Cash Awards.  Such amounts shall be paid in accordance with Section 3.4 of this Agreement.

 

(c)    Notwithstanding anything herewith to the contrary and except as otherwise set forth in Section 3.1 (b) or (d), (i) any amount of the Performance-Based Deferred Cash Award which is not an Earned Performance Payment at the time of the Participant’s termination of employment shall immediately terminate and will at no time vest or be payable to the Participant; and (ii) any amount of the Time-Based Deferred Cash Awards that has not vested at the time of Participant’s termination of employment (other than due to death or Permanent Disability) shall immediately terminate and will not be payable to the Participant; provided, however, that the Committee may, in the event of termination of employment for reasons other than death, Permanent Disability or Cause, determine in its sole discretion that the Earned Performance Payment and/or the Time-Based Deferred Cash Awards that have not vested, shall become immediately vested.  Any amount that becomes payable pursuant to this Section 3.1(c) shall be paid to the Participant in accordance with Section 3.4 hereof.

 

(d)    In the event of a Change of Control, the Cash Awards shall not automatically vest and the Committee shall have the sole discretion to determine whether to accelerate the vesting of the unvested Earned Performance Payments or unvested Time-Based Deferred Cash Awards without regard to whether such Cash Awards are assumed or substituted by a successor company.

 

Section 3.3 - Acceptance of Cash Awards

 

The Participant agrees to execute and deliver the Acceptance Form and deliver it to the Company within 45 days of the receipt of this Agreement.  The Committee may, in its sole discretion, cancel the Cash Awards, if the Participant fails to execute and deliver the Acceptance Form within 45 days of the receipt of this Agreement.

 

Section 3.4 - Payment of Cash Awards

 

Except as provided herein, the Earned Performance Payment and/or the Cash Payment will be paid out to the Participant through local payroll within a reasonable period following each vesting date of the Cash Awards, as set out in 3.1 above, but in no circumstance shall the Earned Performance Payment and/or the Cash Payment be paid later than the date that is 2 1⁄2 months following the end of the year in which the applicable vesting date occurs (which payment schedule is intended to comply with the “short-term deferral” exception from the application of Section 409A of the Code).  Anything in Section 3.1 hereof to the contrary notwithstanding, the Participant will have no right to the Earned Performance Payment and/or the Cash Payment until 

 

  

7

  

 

the Earned Performance Payment and/or the Cash Payment are actually paid to the Participant.  Subject to Section 6.14 hereof, in the case the Committee exercises its discretion under Section 3.1(e) hereof and the Earned Performance-Based Deferred Cash Award becomes vested on an accelerated basis pursuant to either Section 3.2 (b), (c) or (d), the Earned Performance Payment underlying the Performance-Based Deferred Cash Award shall be paid on April 1st of the year following the last day of the applicable Performance Period.  Finally, the Company shall not be required to pay out the Earned Performance Payment and/or the Cash Payment to the Participant unless and until the Participant has paid or made arrangements to pay any Tax-Related Items liability in accordance with Section 2.3.

 

ARTICLE IV

 

ADDITIONAL TERMS AND CONDITIONS OF CASH AWARDS

 

Section 4.1 - Nature of Grant

 

In accepting the Cash Awards, the Participant acknowledges, understands and agrees that:

 

(e) the Cash Awards are discretionary in nature and may be amended, suspended or terminated by the Company at any time;

 

(f) the Cash Awards are voluntary and occasional and do not create any contractual or other right to receive future Cash Awards, or benefits in lieu of Cash Awards, even if Cash Awards have been granted repeatedly in the past;

 

(g) all decisions with respect to future Cash Awards, if any, will be at the sole discretion of the Company;

 

(h) the Participant’s acceptance of this Agreement is voluntary;

 

(i) the Cash Awards and any Earned Performance Payment or Cash Payment paid to Participant are not intended to replace any pension rights or compensation under any pension arrangement;

 

(j) the Cash Awards are not intended to be part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, dismissal, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to past services for, the Employer, the Company or a Subsidiary; and

 

(k) no claim or entitlement to compensation or damages shall arise from the loss of the Cash Awards in the event of the Participant’s termination of employment (whether or not in breach of local labor laws and whether or not later found to be invalid), and in consideration of the grant of the Cash Awards to which the Participant is otherwise not entitled, the Participant irrevocably agrees never to institute any claim against the Company or any Subsidiary, waives his ability, if any, to bring any such claim, and releases the Company and any Subsidiary from any such claim.

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Section 4.2 - No Advice Regarding Grant

 

The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Cash Awards, or the Earned Cash Payment and/or Cash Payment underlying the Cash Awards.  The Participant is hereby advised to consult with his own personal tax, legal and financial advisors regarding his participation in the Long-Term Incentive Program before taking any action related to the Cash Awards.

 

ARTICLE V

 

DATA PRIVACY NOTICE AND CONSENT

 

Section 5 - Data Privacy

 

(a)           The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Participant’s personal data as described in this Agreement and any other Cash Award materials by and among, as applicable, the Employer, the Company and its Subsidiaries for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Long-Term Incentive Program.

 

(b)           The Participant understands that the Company and the Employer may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address, telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the Company, details of all Cash Awards or any other entitlement to cash awards granted, canceled, vested, unvested or outstanding in the Participant’s favor, for the exclusive purpose of implementing, administering and managing the Cash Awards (“Data”).

 

(c)           The Participant understands that Data will be transferred to Global Shares or to any other third party assisting in the implementation, administration and management of the Cash Awards.  The Participant understands that the recipients of the Data may be located in the Participant’s country or elsewhere, and that the recipients’ country (e.g., Ireland) may have different data privacy laws and protections from the Participant’s country.  The Participant understands that he may request a list with the names and addresses of any potential recipients of the Data by contacting his local human resources representative.  The Participant authorizes the Company, Global Shares and any other recipients of Data which may assist the Company (presently or in the future) with implementing, administering and managing the Agreement to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his participation in the Long-Term Incentive Program.  The Participant understands that Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Long-Term Incentive Program.  The Participant understands that he may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his local human resources representative.  The Participant understands, however, that refusing or withdrawing his consent may affect the Participant’s ability to participate in the Long-Term Incentive Program.  For more information on the consequences of the Participant’s refusal to consent or

 

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withdrawal of consent, the Participant understands that he may contact his local human resources representative.

 

ARTICLE VI

 

MISCELLANEOUS

 

Section 6.1 - Administration

 

The Committee shall have the power to interpret this Agreement and to adopt such rules for the administration, interpretation and application of the Cash Awards as are consistent therewith and to interpret or revoke any such rules.  All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Participant, the Company and all other interested persons.  No member of the Committee shall be personally liable for any action, determination or interpretation made in good faith with respect the Cash Awards.

 

Section 6.2 - Cash Awards Not Transferable

 

Neither the Cash Awards nor any interest or right therein or part thereof shall be subject to the debts, contracts or engagements of the Participant or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 6.2 shall not prevent transfers made solely for estate planning purposes or under a will or by the applicable laws of inheritance.

 

Section 6.3 - Binding Effect

 

The provisions of this Agreement shall be binding upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors and assigns.

 

Section 6.4 - Notices

 

Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company at the following address:

 

Willis Group Holdings Public Limited Company

c/o Willis North America, Inc.

One World Financial Center

New York, NY 10281

Attention:  Share Plans

and any notice to be given to the Participant shall be at the address set forth in the Cash Awards Acceptance Form.

 

By a notice given pursuant to this Section 6.4, either party may hereafter designate a different address for notices to be given to him.  Any notice that is required to be given to the Participant shall, if the Participant is then deceased, be given to the Participant’s personal

 

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representatives if such representatives have previously informed the Company of their status and address by written notice under this Section 6.4.  Any notice shall have been deemed duly given when sent by facsimile or enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service or the United Kingdom’s Post Office or in the case of a notice given by an Participant resident outside the United States of America or the United Kingdom, sent by facsimile or by a recognized international courier service.

 

Section 6.5 - Titles

 

Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

 

Section 6.6 - Governing Law

 

This Agreement shall be governed by, and construed in accordance with the laws of Ireland, without regard to its conflicts of law provisions.

 

Section 6.7 - Jurisdiction

 

The courts of the state of New York shall have jurisdiction to hear and determine any suit, action or proceeding and to settle any disputes which may arise out of or in connection with this Agreement and, for such purposes, the parties hereto irrevocably submit to the jurisdiction of such courts.

 

Section 6.8 - Electronic Delivery and Acceptance

 

The Company may, in its sole discretion, decide to deliver any documents related to the Cash Awards by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Long-Term Incentive Program through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. Further, this Agreement has been executed on behalf of the Company electronically and the Participant accepts the electronic signature of the Company.

 

Section 6.9 - Language

 

If the Participant has received this Agreement, or any other document related to the Cash Awards translated into a language other than English and if the translated version is different than the English version, the English version will control.

 

Section 6.10 - Severability

 

The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

 

Section 6.11 - Schedule B

 

The Cash Awards shall be subject to any special provisions set forth in Schedule B for the Participant’s country of residence, if any.  If the Participant relocates to one of the countries

 

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included in Schedule B during the life of the Cash Awards, the special provisions for such country shall apply to the Participant, to the extent the Company determines that the application of such provisions is necessary or advisable in order to comply with local law or facilitate the administration of this Agreement.  Schedule B constitutes part of this Agreement.

 

Section 6.12 - Imposition of Other Requirements

 

The Company reserves the right to impose other requirements on the Cash Awards and any payment acquired upon settlement of the Cash Awards, to the extent the Company determines it is necessary or advisable in order to comply with local laws or facilitate the administration of the Cash Awards, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

 

Section 6.13 - Amendment

This Agreement may be amended only by a document executed by the parties hereto, which specifically states that it is amending this Agreement.

 

Section 6.14 - Code Section 409A

 

This Agreement may be amended at any time, without the consent of any party, to avoid the application of Section 409A of the Code in a particular circumstance or that is necessary or desirable to satisfy any of the requirements under Section 409A of the Code, but the Company shall not be under any obligation to make any such amendment.  Nothing in the Agreement shall provide a basis for any person to take action against the Company or any Subsidiary based on matters covered by Section 409A of the Code, including the tax treatment of any amount paid under the Cash Awards granted hereunder, and neither the Company nor any of its Subsidiaries shall under any circumstances have any liability to any participant or his estate or any other party for any taxes, penalties or interest due on amounts paid or payable under this Agreement, including taxes, penalties or interest imposed under Section 409A of the Code.

 

Anything in this Agreement to the contrary notwithstanding, no payment under this Agreement that constitutes an item of deferred compensation under Section 409A of the Code and becomes payable by reason of a Participant’s termination of employment with the Company shall be made to the Participant unless the Participant’s termination of employment constitutes a “separation from service” (within the meaning of Section 409A of the Code and any the regulations or other guidance thereunder).  In addition, no such payment or distribution shall be made to the Participant prior to the earlier of (a) the expiration of the six-month period measured from the date of the Participant’s separation from service or (b) the date of the Participant’s death, if the Participant is deemed at the time of such separation from service to be a “specified employee” (within the meaning of Section 409A of the Code and any the regulations or other guidance thereunder) and to the extent such delayed commencement is otherwise required in order to avoid a prohibited distribution under Section 409A of the Code and any the regulations or other guidance thereunder.  All payments which had been delayed pursuant to the immediately preceding sentence shall be paid to the Participant in a lump sum upon expiration of such six-month period (or, if earlier, upon the Participant’s death).

 

Section 6.15 - Counterparts

 

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This Agreement may be executed in any number of counterparts (including by facsimile), each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF the Company and the Participant have each executed this Agreement.

 

	 	WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY	 
	 	 	 	 
	 	
By: 

	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

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SCHEDULE A

WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY

ACCEPTANCE FORM TO

DEFERRED CASH AWARD AGREEMENT- 2011 LONG-TERM INCENTIVE

PROGRAM

 

 

	
 

Name

	  
	
 

Target Amount of Performance-Based Deferred Cash Award

	  
	
 

Amount of Time-Based Deferred Cash Award

	  
	
 

Grant Date

	  

 

I accept the grant of the Cash Awards and I agree to be bound by the terms and conditions of the Deferred Cash Award Agreement dated [insert] and any country-specific terms set forth in Schedule B, thereto.

 

	
Signature:

 

	
Address:

 

 

 

 

Once completed, please return one copy of this form to:

Willis Group Holdings Public Limited Company

c/o Willis North America, Inc.

One World Financial Center

New York, NY 10281

U.S.A.

Attention: Share Plans

This form should be returned to the above address within 45 days of receipt.  Your Deferred Cash Awards may be cancelled if your form is not received by that date.

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EXHIBIT 1

WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY

ACCEPTANCE FORM TO

 DEFERRED CASH AWARD AGREEMENT- 2011 LONG-TERM INCENTIVE PROGRAM

 

	
Performance-Based Deferred Cash Award - Performance Terms

	
Performance Period:  January 1, 2011 through December 31, 2011

	
Earned Date: Publication of Company’s Annual Financial Results

	  
	
Target 1:  Adjusted Operating Margin (“OM”) Target [INSERT]%

	
Percentage of Award Subject to Target 1:  50%

	
Performance Scale:*

	
94% or below

(OM of [INSERT]or below)

	
95-99%

(OM of [INSERT])

	
100-104%

(OM of [INSERT])

	
105% or above

(OM of [INSERT])

	
Percentage of Earned Performance Payment:

	
0%

	
80-99%

	
100-109%

	
110%

	  
	
Target 2:  Adjusted Earnings Per Share (“EPS”) Target $[INSERT]

	
Percentage of Award Subject to Target 2:  50%

	
Performance Scale:*

	
94% or below

(EPS of $[INSERT]or below)

	
95-99%

(EPS of $[INSERT])

	
100-104%

(EPS of $[INSERT])

	
105% or above

(EPS of $[INSERT])

	
Percentage of Earned Performance Payment:

	
0%

	
80-99%

	
100-109%

	
110%

 

	 	 	 	 

 

  

* Performance between amounts is subject to interpolation.

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SCHEDULE B

 

WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY

COUNTRY-SPECIFIC APPENDIX TO

DEFERRED CASH AWARD AGREEMENT- 2011 LONG-TERM INCENTIVE

PROGRAM

(Performance-Based and Time-Based Deferred Cash Awards)

Terms and Conditions

 

This Schedule B includes additional terms and conditions that govern the Cash Awards granted to the Participant if the Participant resides in one of the countries listed below. This Schedule B forms part of the Agreement.  Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement.

 

Notifications

 

This Schedule B also includes information based on the securities, exchange control and other laws in effect in the Participant’s country as of December 2011.  Such laws are often complex and change frequently.  As a result, the Company strongly recommends that the Participant not rely on the information noted herein as the only source of information relating to the consequences of the Participant’s participation in the 2011 Long-Term Incentive Program because the information may be out of date at the time the Participant vests in the Cash Awards or the Cash Awards become payable.

 

In addition, the information is general in nature.  The Company is not providing the Participant with any tax advice with respect to the Cash Awards.  The information is provided below may not apply to the Participant’s particular situation, and the Company is not in a position to assure the Participant of any particular result. Accordingly, the Participant is strongly advised to seek appropriate professional advice as to how the tax or other laws in the Participant’s country apply to the Participant’s situation.

 

Finally, if the Participant is a citizen or resident of a country other than the one in which the Participant is currently working, transfers employment after the Cash Awards are granted, or is considered a resident of another country for local law purposes, the notifications contained herein may not be applicable to the Participant, and the Company shall, in its discretion, determine to what extent the terms and conditions contained herein shall be applicable to the Participant.

 

UNITED KINGDOM

 

Terms and Conditions

 

Tax Withholding Obligations

The following provisions replace Section 2.3 of the Agreement:

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Prior to the relevant taxable or tax withholding event, as applicable, the Participant shall pay or make arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items.  In this regard, the Participant authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy the Tax-Related Items by one or a combination of the following (1) withholding from the Participant's wages or other cash compensation paid to the Participant by the Company, the Employer, or any Subsidiary at any time; or (2) payment directly from the Participant by cheque or cleared funds.

 

The Participant agrees that if he or she does not pay or the Employer or the Company does not withhold from the Participant the full amount of Tax-Related Items that the Participant owes at the time the Participant receives an Earned Performance Payment and/or a Cash Payment, or the receipt of any other benefit in connection with the Cash Awards (the “Taxable Event”), within 90 days after the Taxable Event or such other period specified in section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003, then the amount that should have been withheld shall constitute a loan owed by the Participant to the Employer, effective 90 days after the Taxable Event.  The Participant agrees that the loan will bear interest at the official rate of HM Revenue & Customs (“HMRC”) and will be immediately due and repayable by the Participant, and the Company and/or the Employer may recover it at any time thereafter by withholding the funds from the Earned Performance Payment and/or a Cash Payment or by demanding cash or a cheque from the Participant.

 

The Participant acknowledges that the Company or the Employer may recover any such additional income tax and National Insurance Contributions (“NICs”) at any time thereafter by any of the means referred to in the Section 2.3 of the Agreement, although the Participant acknowledges that the Participant ultimately will be responsible for reporting any income tax or NICs due on this additional benefit directly to HMRC under the self-assessment regime.

 

UNITED STATES OF AMERICA

 

There are no country-specific provisions.

 

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