Document:

EX-4.1

 Exhibit 4.1 

GW Pharmaceuticals plc 
  

 
 2020 LONG-TERM INCENTIVE PLAN

  
  

Approved by shareholders on 26 May 2020 

Adopted by the board of directors on 26 March 2020 

Amended on 19 May 2020 

 CONTENTS 
  

							
	Rule	 	 	  	Page	 
			
	1.	 	INTRODUCTION	  	 	2	 
			
	2.	 	DEFINITIONS AND INTERPRETATION	  	 	2	 
			
	3.	 	INVESTMENT SHARES	  	 	6	 
			
	4.	 	GRANT OF AWARDS	  	 	7	 
			
	5.	 	LIMITS	  	 	10	 
			
	6.	 	VESTING OF AWARDS	  	 	12	 
			
	7.	 	CONSEQUENCES OF VESTING	  	 	13	 
			
	8.	 	EXERCISE OF OPTIONS	  	 	14	 
			
	9.	 	CASH ALTERNATIVE	  	 	16	 
			
	10.	 	LAPSE OF AWARDS	  	 	17	 
			
	11.	 	LEAVERS	  	 	18	 
			
	12.	 	TAKEOVERS AND OTHER CORPORATE EVENTS	  	 	20	 
			
	13.	 	ADJUSTMENT OF AWARDS	  	 	22	 
			
	14.	 	ALTERATIONS	  	 	23	 
			
	15.	 	MISCELLANEOUS	  	 	24	 
		
	SCHEDULE 1	  	 	28	 
		
	CASH CONDITIONAL AWARDS	  	 	28	 
		
	SCHEDULE 2	  	 	29	 
		
	ITALIAN AWARDS	  	 	29	 
		
	SCHEDULE 3	  	 	30	 

  

  
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 RULES OF THE 

GW PHARMACEUTICALS PLC 2020 LONG-TERM INCENTIVE PLAN 
  

	1.	 INTRODUCTION 

The Plan is a discretionary benefit offered by GW Pharmaceuticals plc for the benefit of employees, directors and consultants of its group. Its
main purpose is to increase the interest of such people in GW Pharmaceuticals plc’s long-term business goals and performance through share ownership. The Plan is an incentive for their future performance and commitment to the goals of the GW
Pharmaceuticals group. 
 The Plan allows for the grant of Awards in the form of: 

 

	 	(a)	 Conditional Awards, which are rights to receive Shares for free automatically to the extent the Award Vests;
and 

  

	 	(b)	 Options, which are Awards under which the Participant can buy Shares, to the extent the Award has Vested,
during the Exercise Period at a price (which may be zero) set when the Option is granted. 

 The Plan also provides (in
Rule 3 (Investment Shares) for invitations to be made to Participants to acquire Investment Shares. Where a Participant acquires Investment Shares, he will also be granted a Matching Award (which may be either a Conditional Award or an
Option). 
 Awards which are not Matching Awards are termed Incentive Awards. 

Share-based Awards may be settled in cash under Rule 9 (Cash Alternative), and Awards which may only be settled in cash may be granted
under Schedule 1 (Cash Conditional Awards). 
 Options may be granted to eligible US Taxpayers that qualify ISO Options, to the extent
permitted or desirable. Only employees of the Company and any “subsidiary” of the Company (as such term is defined in Section 424(f) of the IRS Code, respectively), shall be eligible to receive ISO Options on such terms established by
the Committee in compliance with the requirements of Section 422 of the IRS Code. 
  

	2.	 DEFINITIONS AND INTERPRETATION 

 

	2.1	 In the Plan, unless the context otherwise requires: 

“2017 LTIP” means the GW Pharmaceuticals plc Long-Term Incentive Plan adopted by the Board and approved by the Company’s
shareholders on 14 March 2017; 
 “2017 LTIP’s Available Reserve” means the number of Ordinary Shares available
for the grant of new awards under rule 5.4(a) of the 2017 LTIP as of immediately prior to the Effective Date; 
 “ADS” means
an American Depositary Share (also known as an American Depositary Receipt or ADS), each of which represents 12 ordinary shares of nominal value 0.1p in the capital of the Company (the underlying Ordinary Shares); 

“Award” means an Incentive Award or a Matching Award in the form of a Conditional Award or an Option; 

  
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 “Board” means the board of directors of the Company or a duly authorised
committee of the Board or a duly authorised person; 
 “Committee” means the remuneration committee of the Board or, on and
after the occurrence of a corporate event described in Rule 12 (Takeovers and other corporate events), the remuneration committee of the Board as constituted immediately before such event occurs; 

“Company” means GW Pharmaceuticals plc (registered in England and Wales with registered number 4160917); 

“Conditional Award” means a conditional right to acquire Shares granted under the Plan which is designated as a conditional
award under Rule 4.2 (Type of Award); 
 “Connected Person” means an individual who is a an employee or director
(including a non-executive director) of, or a Consultant to, a Group Member; 

“Consultant” means an individual who is contracted to provide services to a Participating Company or a Group Member (as
applicable) and who is not an employee or director of that company; 
 “Control” means control within the meaning of section
719 of ITEPA; 
 “Dividend Equivalent” means a benefit calculated by reference to dividends paid on Shares as described in
Rule 4.4; 
 “Early Vesting Date” means either: 
  

	 	(a)	 the date a Participant ceases to be a Connected Person where Rule 11.2(b) (Good Leaver: unvested Awards)
applies or such later date determined in accordance with that Rule; or 

  

	 	(b)	 the date of Vesting referred to in Rule 12.1 (General offers), Rule 12.2 (Schemes of arrangement and
winding up) or Rule 12.3 (Demergers and similar events) (as applicable); or 

  

	 	(c)	 such other date on which the Committee allows Discretionary Vesting before the Normal Vesting Date in
accordance with Rule 6.1 (Timing of Vesting: Normal Vesting Date); 

 “Effective Date” means
26 May 2020; 
 “Eligible Person” means an individual who is an employee or director (including a non-executive director) of, or a Consultant to, a Participating Company; 
 “Employer Social
Security Liability” means employer’s national insurance contributions (secondary class 1) or equivalent in jurisdictions other than the UK, to the extent lawfully recoverable from the relevant employee, for which any Group Member or
former Group Member is liable to account to the relevant authority; 
 “Exercise Period” means the period referred to in
Rule 7.2 during which an Option may be exercised; 
 “Fair Market Value” means, with respect to a Share, as of any date
(i) if the Shares are admitted to trading on a securities exchange, the closing price of a Share on the preceding day on such securities exchange or, if no such sale is reported on that date, on the last preceding date on which a sale was so
reported; (ii) if the Shares are not at the time listed or admitted to 

  
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trading on a stock exchange, the closing average of the closing bid and asked price of a Share on the preceding day in the
over-the-counter market, as such price is reported in a publication of general circulation selected by the Committee and regularly reporting the market price of the
Shares in such market; or (iii) if the Shares are not listed or admitted to trading on any stock exchange or traded in the over-the-counter market, as determined by
the Committee in good faith using a reasonable application of a reasonable valuation method. For purposes of Options granted to US Taxpayers, Fair Market Value shall also be determined in a manner compliant with Section 409A or, in the case of
an ISO Option, in compliance with Section 422 of the IRS Code. 
 “Grant Date” means the date on which an Award is
granted; 
 “Group Member” means: 
  

	 	(a)	 a Participating Company or a body corporate which is the Company’s holding company (within the meaning of
section 1159 of the Companies Act 2006) or a Subsidiary of the Company’s holding company; 

  

	 	(b)	 a body corporate which is a subsidiary undertaking (within the meaning of section 1162 of that Act) of a body
corporate within paragraph (a) above and has been designated by the Board for this purpose; and 

  

	 	(c)	 any other body corporate in relation to which a body corporate within paragraph (a) or (b) above is able
(whether directly or indirectly) to exercise 20% or more of its equity voting rights and has been designated by the Board for this purpose; 

“Incentive Award” means an Award designated as an Incentive Award under Rule 4.2 (Type of Award); 

“IRS Code” means the United States Internal Revenue Code, as the same may be amended from time to time and any successor
thereto; 
 “ISO Option” means an Option granted to a US Taxpayer that is intended to be, and qualifies as, an incentive
stock option within the meaning of Section 422 of the IRS Code. 
 “ITEPA” means the Income Tax (Earnings and Pensions)
Act 2003; 
 “Investment Shares” means Shares acquired pursuant to Rule 3 (Investment Shares) and any further Shares
added to a holding of Investment Shares under Rule 3.4 (Variation of share capital – Investment Shares); 
 “Matching
Award” means an Award designated as a Matching Award under Rule 4.2 (Type of Award); 
 “Normal Vesting
Date” means the date on which an Award Vests under Rule 6.1 (Timing of Vesting: Normal Vesting Date), in the absence of an Early Vesting Date; 

“Option” means a right to acquire Shares granted under the Plan which is designated as an option under Rule 4.2 (Type of
Award); 
 “Option Price” means the amount, if any, payable per Share on the exercise of an Option; 

“Ordinary Shares” means fully paid ordinary shares of nominal value 0.1p in the capital of the Company; 

  
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 “Participant” means in the case of an Incentive Award, such Eligible Person
to whom an Incentive Award is granted, and, in the case of a Matching Award, a person who acquires Investment Shares pursuant to Rule 3 (Investment Shares) including, in either case, his personal representatives; 

“Participating Company” means the Company or any Subsidiary of the Company; 

“Performance Condition” means a condition related to performance which is specified by the Committee under Rule 4.1 (Terms
of grant); 
 “Plan” means the GW Pharmaceuticals plc 2020 Long-Term Incentive Plan as amended from time to time; 

“Regular Option” means an Option other than a Short-Term Option or an RSU-style
Option; 
 “Return Date” means the date by which an invitation issued under Rule 3.2 (Invitations in respect of
Investment Shares) must be returned to the Company; 
 “RSU-style Option” is an
Option with an Option Price equal to the nominal value of an Ordinary Share, if it is an option to acquire Ordinary Shares, or twelve times the nominal value of an Ordinary Share (being 1.2p per ADS), if it is an option to acquire ADSs, which is
automatically exercised in accordance with the provisions of Rule 8.4 (Method of exercise: RSU-style Option) as soon as it becomes exercisable; 

“Rule” means a rule of the Plan; 

“Section 409A” means Section 409A of the IRS Code and the Treasury Regulations and other guidance published by the United
States Treasury Department and the United States Internal Revenue Service with respect thereto, and any United States state law of similar effect; 

“Shares” means Ordinary Shares or ADSs, as the context so admits; 

“Short-Term Deferral Period” means the short-term deferral period (within the meaning of IRS Code Section 409A and Treas.
Regs. §1.409A-1(b)(4)); 
 “Short-Term Option” is an Option which may not be
exercised later than the end of the Short-Term Deferral Period in relation to that Option; 
 “Subsidiary” means a body
corporate which is a subsidiary (within the meaning of section 1159 of the Companies Act 2006); 
 “Tax Liability” means any
amount of tax or social security contributions for which a Participant would or may be liable and for which any Group Member or former Group Member would or may be obliged to (or would or may suffer a disadvantage if it were not to) account for to
any relevant authority, together with any Employer Social Security Liability in relation to a specific Award to the extent that the Committee determined at the Grant Date that such liability was to be recovered from the Award Holder; 

“Treasury Regulations” or “Treas. Regs.” means the United States Treasury Regulations, as the same may
be amended from time to time and any successor thereto; 
 “US Taxpayer” means a person who is subject to the federal income
tax laws of the United States; 

  
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 “Vest” means: 

 

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

  

	 	(b)	 in relation to an Option, it becoming exercisable (subject to the conditions contained in Rule 8.1
(Restrictions on the exercise of an Option: regulatory and tax issues)), 

 and Vesting shall be construed
accordingly; 
 “Vested Shares” means those Shares in respect of which an Award Vests. 

 

	2.2	 Any reference in the Plan to any enactment includes a reference to that enactment as from time to time
modified, extended or re-enacted. 

  

	2.3	 Expressions in italics and headings are for guidance only and do not form part of the Plan.

  

	3.	 INVESTMENT SHARES 

 

	3.1	 Invitations in respect of Investment Shares 

Where the Committee is proposing the grant of Matching Awards, it may invite any Eligible Person to provide funds to acquire Shares in
accordance with Rule 3.2 (Source of Investment Shares). Any such invitation shall specify: 
  

	 	(a)	 whether the invitation relates to Ordinary Shares or ADSs; 

 

	 	(b)	 the maximum amount which may be used to acquire Investment Shares (or the basis for calculating such amount);

  

	 	(c)	 the procedure for providing the funds to invest in Investment Shares; 

 

	 	(d)	 a Return Date; 

  

	 	(e)	 the maximum number of Shares over which a related Matching Award will be made (or how that number will be
determined); and 

  

	 	(f)	 such other terms relating to the Investment Shares as the Committee may decide from time to
time.

  

	3.2	 Source of Investment Shares 

In relation to the proposed grant of any Matching Award, an individual’s Investment Shares shall, at the discretion of the Committee,
comprise: 
  

	 	(a)	 Shares acquired pursuant to Rule 3.3 (Acquisition of Investment Shares) using an amount of the
individual’s post-tax annual bonus; and/or 

  

	 	(b)	 Shares acquired pursuant to Rule 3.3 (Acquisition of Investment Shares) using an individual’s
monies other than an amount of his post-tax annual bonus. 

  

	3.3	 Acquisition and holding of Investment Shares 

As soon as practicable after the Return Date, and subject to any restrictions referred to in Rule 4.7 (Approvals and consents), the
Company will procure the acquisition of the Investment Shares. Investment Shares will then be held in one or more of the following ways: 
  

	 	(a)	 on the Participant’s behalf by a nominee chosen from time to time by the Committee; or

  
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	 	(b)	 directly by the Participant but he will deposit the documents of title relating to the Investment Shares with
any person specified by the Committee; or 

  

	 	(c)	 by such other method as the Committee decides that will enable it to monitor ownership of the Investment
Shares.

  

	3.4	 Variation of share capital – Investment Shares 

Unless the Committee decides otherwise, if: 
  

	 	(a)	 a Participant acquires any further Shares by virtue of his holding of Investment Shares under a variation of
share capital of the Company then he may add those Shares to his holding of Investment Shares; 

  

	 	(b)	 a Participant receives a special dividend by virtue of his holding of Investment Shares, he may purchase
further Shares with the dividend and add those Shares to his holding of Investment Shares; 

  

	 	(c)	 a Participant receives securities other than Shares by virtue of his holding of Investment Shares, he may sell
(or where appropriate redeem) those securities and use the proceeds to purchase further Shares which may be added to his holding of Investment Shares 

and, in any such case, his Award shall be adjusted accordingly under Rule 13 (Adjustment of Awards). 

 

	3.5	 Voting and dividend rights 

While a Participant’s Investment Shares are held for the purposes of the Plan, he shall be entitled to exercise full voting rights in
respect of those Investment Shares and receive any dividends declared by reference to the dividend record dates falling after the date of acquisition of the Investment Shares. 

 

	3.6	 Release of Investment Shares on or after Vesting 

On or as soon as practicable after the Vesting or lapse of a Matching Award, the Committee shall transfer or procure the transfer of: 

 

	 	(a)	 the legal title for the Investment Shares related to the Award; and/or 

 

	 	(b)	 any documents of title relating to those Investment Shares 

to the Participant (or his nominee). 
  

	4.	 GRANT OF AWARDS 

 

	4.1	 Terms of grant 

Subject to Rule 4.6 (Timing of grant), Rule 4.7 (Approvals and consents) and Rule 5 (Limits), the Committee may
resolve to grant an Award on: 
  

	 	(a)	 the terms set out in the Plan; and 

 

	 	(b)	 such additional terms (whether a Performance Condition and/or any other terms) as the Committee may specify

 to, in the case of an Incentive Award, such Eligible Persons as it decides and, in the case of a Matching Award, to
those Eligible Persons who have acquired Investment Shares. 

  
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	4.2	 Type of Award 

On or before the Grant Date, the Committee shall determine whether an Award shall be: 

 

	 	(a)	 granted in relation to Ordinary Shares or ADSs; 

 

	 	(b)	 an Incentive Award or a Matching Award; 

 

	 	(c)	 in the form of a Conditional Award or an Option; 

 

	 	(d)	 if granted as an Option, whether it is a Regular Option (and if granted to a US Taxpayer, whether it is
intended to be an ISO Option), a Short-Term Option or an RSU-style Option; 

 If
the Committee does not specify the type of an Award on or before the Grant Date then an Award shall be an Option to acquire ADSs with an Option Price equal to twelve times the nominal value of an Ordinary Share (1.2p per ADS). Any Option granted to
a US Taxpayer with an Option Price that is less than Fair Market Value on the Grant Date that is not granted as an RSU-style Option shall be deemed a Short-Term Option. 

 

	4.3	 Method of grant 

An Award shall be granted as follows: 
  

	 	(a)	 by deed executed by the Company; and 

 

	 	(b)	 if an Award is an Option, the Committee shall determine the Option Price (if any) on or before the Grant Date
provided that, except in the case of an Option granted to a US Taxpayer, the Committee may reduce or waive such Option Price on or prior to the exercise of the Option. In the case of a Regular Option granted to a US Taxpayer, the Option Price per
Share shall, subject to any adjustments permitted by Section 409A of the IRS Code and its regulations for corporate transactions, never be less than the Fair Market Value of such Share on the Grant Date. 

In the case of an Option granted to a US Taxpayer, for the avoidance of doubt, the following actions shall have occurred as of the Grant Date:
(i) the recipient of the grant of the Option shall have been identified, (ii) the maximum number of Shares that can be purchased under the Option shall have been established, (iii) the Option Price shall have been established;
(iv) whether the Option is granted in relation to Ordinary Shares or ADSs shall have been established (all Options not designated otherwise shall be Options to acquire ADSs); and (v) the recipient of the grant shall have acquired a legally
binding right to the Option (which may, however, be subject to lapse or forfeiture). 
  

	4.4	 Acceptance of RSU-style Options 

An RSU-style Option is subject to the requirement that the Participant accepts the Award in such manner
as the Board may specify agreeing to be bound by the terms of the Award, and undertaking to pay the Option Price for the Award upon its exercise in accordance with Rule 8.4 (Method of exercise: RSU-style
Option). If the Participant has not duly accepted the Award by midnight on the date 30 days after the Grant Date the Company may, at any time before the Award has been duly accepted determine that the Award has lapsed. The undertaking to pay the
Option Price shall be deemed an undertaking to pay the subscription price for the Ordinary Shares, or underlying Ordinary Shares, as appropriate, subject to the Award. 

  
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	4.5	 Treatment of dividends 

The Committee may, but is not obliged to, decide on or before the grant of an Award that either:- 

 

	 	(a)	 a Participant (or his nominee) shall be entitled to receive a benefit determined by reference to the value of
the dividends that would have been paid on the Vested Shares in respect of dividend record dates occurring during the period between the Grant Date and the date of Vesting. The Committee shall decide the basis on which the value of such dividends
shall be calculated which may assume the reinvestment of dividends. The Committee may also decide at this time whether the Dividend Equivalent shall be provided to the Participant in the form of cash and/or Shares. The Dividend Equivalent shall be
provided in accordance with Rule 7.3; or 

  

	 	(b)	 it shall grant an Award on terms where the number of Shares comprised in an Award shall increase by deeming
dividends that would have been paid on such Shares in respect of dividend record dates occurring within the period between the Grant Date and the date of Vesting to have been reinvested in additional Shares on such terms (as to the price at which
any such additional Shares shall be deemed to have been purchased or otherwise) as the Committee shall decide on or before the Grant Date of an Award. 

  

	4.6	 Method of satisfying Awards 

Unless specified to the contrary by the Committee on the Grant Date, an Award may be satisfied: 

 

	 	(a)	 by the issue of new Shares; and/or 

 

	 	(b)	 by the transfer of existing Shares. 

The Committee may decide to change the way in which it is intended that an Award may be satisfied after it has been granted, having regard to
the provisions of Rule 5 (Limits). 
  

	4.7	 No grants after expiry of seven-year grant period 

No Awards may be granted after 26 May 2027 (that is, the expiry of the period of 7 years beginning with the Effective Date). The Plan
shall remain in effect after that date in relation to any Awards granted before that date which are still outstanding. 
  

	4.8	 Approvals and consents 

The grant of any Award shall be subject to obtaining any approval or consent required under any applicable rules of any exchange on which
Shares or securities of the Company are listed or traded, any relevant share dealing code of the Company, the City Code on Takeovers and Mergers, or any other relevant UK or overseas regulation or enactment. 

 

	4.9	 Non-transferability and bankruptcy 

An Award granted to any person: 
  

	 	(a)	 shall not be transferred, assigned, encumbered, pledged, charged or otherwise disposed of (save as expressly
permitted below in this Rule 4.9 and except on his death to his personal representatives) and shall lapse immediately on any attempt to do so; and 

  

	 	(b)	 shall lapse immediately if he is declared bankrupt. 

  
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 Notwithstanding the foregoing, Participants resident in the United States of America may
with the permission of the Committee transfer an Award to family members by gift or pursuant to a domestic relations order, within the parameters permitted for registration of the Shares on a Form S-8
Registration Statement under the US Securities Act of 1933, as amended and other applicable securities rules. In no event may any Award be transferred for consideration. 
  

	5.	 LIMITS 

  

	5.1	 Overall Plan Limit 

No Award may be granted if it would cause the aggregate number of Ordinary Shares (including as part of the process for the issue of new ADSs)
allocated (as defined in Rule 5.2) pursuant to Awards granted under the Plan since its adoption to exceed 22,200,000 plus: 
  

	 	(a)	 a number of Ordinary Shares (including as part of the process for the issue of new ADSs) equal to the 2017
LTIP’s Available Reserve; and 

  

	 	(b)	 a number of Ordinary Shares (including as part of the process for the issue of new ADSs) equal to the number of
Returning Shares, if any, that become available from time to time as and when such shares become Returning Shares under Rule 5.4 below, up to a maximum of 12,749,175 Ordinary Shares. 

The overall limit in this Rule 5.1 will be subject to such other adjustment as the Board may determine to be appropriate upon any change that
is made in, or other events that occur with respect to, the Shares without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, share dividend, dividend in property other than
cash, large nonrecurring cash dividend, share split, reverse share split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or any similar equity restructuring transaction. 

Upon the Effective Date, (1) no further new awards may be granted over Shares under the 2017 LTIP and (2) the number of Ordinary
Shares subject to the 2017 LTIP’s Available Reserve shall cease to be available for grant under the 2017 LTIP and shall become available for grant hereunder pursuant to Rule 5.1(a) above. 

 

	5.2	 Meaning of “allocated” 

For the purposes of Rule 5.1: 
  

	 	(a)	 Ordinary Shares are allocated: 

 

	 	(i)	 when an option, award or other contractual right to acquire Shares which may result in the issue of new
Ordinary Shares (including as part of the process for the issue of new ADSs) is granted; 

  

	 	(ii)	 where Ordinary Shares are issued (including as part of the process for the issue of new ADSs) otherwise than
pursuant to an option, award or other contractual right to acquire Shares, when those Ordinary Shares are issued; 

  

	 	(b)	 any Ordinary Shares which have been issued or which may be issued to any trustees to satisfy the exercise of
any option, award or other contractual right granted under any arrangement falling within Rule 5.1 shall count as allocated unless they are already treated as allocated under this Rule; and 

 

	 	(c)	 for the avoidance of doubt, existing Ordinary Shares that are transferred or over which options, awards or
other contractual rights are granted shall not count as allocated. 

  
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	5.3	 Post-grant events affecting numbers of “allocated” Ordinary Shares 

For the purposes of Rule 5.2: 
  

	 	(a)	 where: 

  

	 	(i)	 any option, award or other contractual right to acquire unissued Shares is released or lapses (whether in whole
or in part); or 

  

	 	(ii)	 after the grant of an option, award or other contractual right the Committee determines that:

  

	 	(aa)	 it shall be satisfied by the payment of cash equal to the gain made on its vesting or exercise; or

  

	 	(bb)	 it shall be satisfied by the transfer of existing Shares 

the unissued Ordinary Shares which consequently cease to be subject to the option, award or other contractual right (whether directly or as
the Ordinary Shares represented by ADSs) shall not count as allocated; and 
  

	 	(b)	 the number of Ordinary Shares allocated in respect of an option, award or other contractual right shall be such
number as the Board shall reasonably determine from time to time. 

  

	5.4	 2017 LTIP 

Where any option, award or other contractual right to acquire unissued Shares that was granted under the 2017 LTIP and that is outstanding as
of the Effective Date is, on or after the Effective Date released or lapses (whether in whole or in part), the overall Plan limit specified in Rule 5.1 shall be increased by the number of unissued Ordinary Shares which consequently cease to be
subject to the option, award or other contractual right under the 2017 LTIP (whether directly or as the Ordinary Shares represented by ADSs) (such shares that may increase the number of unissued Ordinary Shares, the “Returning
Shares”). 
  

	5.5	 ISO Option limit 

The aggregate maximum number of Ordinary Shares which have been and may be acquired by Participants (including the underlying Ordinary Shares
in relation to ADSs) pursuant to the exercise of ISO Options granted under the Plan since its adoption shall be 5,000,000 (the “ISO Limit”), subject to such adjustment as the Board may determine to be appropriate upon any change
that is made in, or other events that occur with respect to, the Shares without the receipt of consideration by the Company through merger, consolidation, reorganization, recapitalization, reincorporation, share dividend, dividend in property other
than cash, large nonrecurring cash dividend, share split, reverse share split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or any similar equity restructuring transaction. For clarity, the ISO Limit
shall not permit any Award to be granted if it would cause the aggregate number of Ordinary Shares which may be acquired pursuant to all Awards granted under the Plan to exceed the overall plan limit described in Rule 5.1 above. 

 

	5.6	 Effect of limits 

Any Award shall be limited and take effect so that the limits in this Rule 5 are complied with. 

  
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	6.	 VESTING OF AWARDS 

 

	6.1	 Timing of Vesting: Normal Vesting Date  

Subject to Rule 6.3 (Restrictions on Vesting: tax issues), an Award shall Vest on the later of: 

 

	 	(a)	 the date on which the Committee determines whether or not any Performance Condition and any other condition
imposed on the Vesting of the Award has been satisfied (in whole or part); and 

  

	 	(b)	 the third anniversary of the Grant Date, or such other date (which may be before the third anniversary of the
Grant Date) as the Committee may determine on or before the grant of the relevant Award, 

 except where earlier Vesting
occurs on an Early Vesting Date under Rule 11 (Leavers) or Rule 12 (Takeovers and other corporate events) or where the Committee in its discretion permits earlier Vesting, whether pursuant to a separate written plan or agreement
approved by the Committee or otherwise (“Discretionary Vesting”). 
  

	6.2	 Extent of Vesting 

An Award shall only Vest to the extent: 
  

	 	(a)	 that any Performance Condition is satisfied on the Normal Vesting Date or, if appropriate, the Early Vesting
Date; 

  

	 	(b)	 permitted by any other term imposed on the Vesting of the Award, or pursuant to a separate written plan or
agreement approved by the Committee; and 

  

	 	(c)	 in relation to Vesting before the Normal Vesting Date, as permitted by Rules 11.5 and 12.5 (Reduction in
number of Vested Shares), or, in the case of Discretionary Vesting to the extent determined by the Committee in its discretion. 

Where, under Rule 11 (Leavers) or Rule 12 (Takeovers and other corporate events) or in the case of Discretionary Vesting, an
Award would (subject to the satisfaction of any Performance Condition) Vest before the end of the full period over which performance would be measured under Performance Condition then, unless provided to the contrary by the Performance Condition,
the extent to which the Performance Condition has been satisfied in such circumstances shall be determined by the Committee on such reasonable basis as it decides. 
  

	6.3	 Restrictions on Vesting: tax issues  

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

 

	 	(a)	 if, on the Vesting of the Award, a Tax Liability would arise by virtue of such Vesting and the Board decides
that such Tax Liability shall not be satisfied by the sale of Shares pursuant to Rule 6.5 (Payment of Tax Liability) then the Participant must have entered into arrangements acceptable to the Board that the relevant Group Member will receive
the amount of such Tax Liability; and 

  

	 	(b)	 where the Committee requires, the Participant has entered into, or agreed to enter into, a valid election under
Part 7 of ITEPA (Employment income: elections to disapply tax charge on restricted securities) or any similar arrangement in any overseas jurisdiction. 

For the purposes of this Rule 6.3, references to Group Member include any former Group Member. 

  
 -12- 

 In the case of a Participant who is a US Taxpayer, any delay in the Vesting of an Award for
the satisfaction of the conditions in Rule 6.3(a) or (b) shall not delay the distribution of Shares or cash in lieu of Shares beyond the Short-Term Deferral Period in relation to the Award, and if any of those conditions is not satisfied by the
end of that Short-Term Deferral Period the Award shall lapse without any further obligation of the Company, the Participant’s employer, or any other Group Member to the Participant with respect thereto. 

 

	6.4	 Tax Liability before Vesting 

If any Tax Liability will or is likely to arise before the Vesting of an Award then the Participant must enter into arrangements acceptable to
any relevant Group Member to ensure that it receives the amount of such Tax Liability. If no such arrangement is made then the Participant shall be deemed to have authorised the Company to sell or procure the sale of sufficient of the Shares subject
to his Award on his behalf to ensure that the relevant Group Member receives the amount required to discharge the Tax Liability and the number of Shares subject to his Award shall be reduced accordingly. 

For the purposes of this Rule 6.4, references to Group Member include any former Group Member. 

 

	6.5	 Payment of Tax Liability 

The Participant authorises the Company to: 
  

	 	(a)	 sell or procure the sale of sufficient Vested Shares on or following the Vesting of his Award on his behalf to
ensure that any relevant Group Member or former Group Member receives the amount required to discharge the Tax Liability which arises on Vesting; or 

  

	 	(b)	 to withhold from the number of Shares deliverable on the Vesting of the Award such number of Shares as has a
Fair Market Value on the date the Tax Liability is to be determined equal to the Tax Liability in satisfaction of the Participant’s obligations in relation to that Tax Liability, 

except to the extent that the Board decides that all or part of the Tax Liability shall be funded in a different manner. 

 

	7.	 CONSEQUENCES OF VESTING 

 

	7.1	 Conditional Awards 

On or as soon as reasonably practicable after the Vesting of a Conditional Award, the Company shall, subject to Rule 6.5 (Payment of Tax
Liability) and any arrangement made under Rules 6.3(a) and 6.3(b) (Restrictions on Vesting: tax issues), transfer or procure the transfer of the Vested Shares to the Participant (or a nominee for him). 

 

	7.2	 Options 

An Option shall, subject to Rule 8.1 (Restrictions on the exercise of an Option: regulatory and tax issues), be exercisable in respect
of Vested Shares at any time prior to: 
  

	 	(a)	 in relation to a Regular Option, the tenth anniversary of the Grant Date; and 

 

	 	(b)	 in relation to a Short-Term Option, the end of the Short-Term Deferral Period in relation to that Option,

  
 -13- 

 unless, in each case, it lapses earlier under Rule 11.2 (Good Leavers: unvested
Awards), Rule 11.3 (Good Leavers: Vested Awards), Rule 11.4 (Other leavers), Rule 12.1 (General offers), Rule 12.2 (Schemes of arrangement and winding up) or Rule 12.3 (Demergers and similar events). 

For purposes of clarity, an RSU-style Option shall be automatically exercised upon Vesting in
accordance with the provisions of Rule 8.4 (Method of exercise: RSU-style Option) and therefore there is no period where the Participant may exercise it. 

 

	7.3	 Dividend Equivalent 

If the Committee decided under Rule 4.4 (Treatment of dividends) that a Participant would be entitled to a Dividend Equivalent in
relation to Shares under their Award but did not decide at that time whether the Dividend Equivalent would be provided in the form of cash and/or Shares, then the Committee shall make such decision on or as soon as practicable after Vesting. 

The Committee, acting fairly and reasonably, may decide to exclude the value of all or part of a special dividend or any other dividend from
the amount of the Dividend Equivalent. 
 The provision of the Dividend Equivalent to the Participant shall be made as soon as practicable
after the issue or transfer of Vested Shares and: 
  

	 	(a)	 in the case of a cash payment, shall be subject to such deductions (on account of tax or similar liabilities)
as may be required by law or as the Board may reasonably consider to be necessary or desirable; and 

  

	 	(b)	 in the case of a provision of Shares, Rule 6.3 (Restrictions on Vesting: tax issues) and Rule 6.5
(Payment of Tax Liability) shall apply as if such provision was the Vesting of an Award. 

  

	8.	 EXERCISE OF OPTIONS 

 

	8.1	 Restrictions on the exercise of an Option: regulatory and tax issues 

An Option which has Vested may not be exercised unless the following conditions are satisfied: 

 

	 	(a)	 the exercise of the Option and the issue or transfer of Shares after such exercise would be lawful in all
relevant jurisdictions and in compliance with any applicable rules of any exchange on which Shares or securities of the Company are listed or traded, any relevant share dealing code of the Company, the City Code on Takeovers and Mergers and any
other relevant UK or overseas regulation or enactment; 

  

	 	(b)	 if, on the exercise of the Option, a Tax Liability would arise by virtue of such exercise and the Board decides
that such Tax Liability shall not be satisfied by the sale of Shares pursuant to Rule 8.5 (Payment of Tax Liability) then the Participant must have entered into arrangements acceptable to the Board that the relevant Group Member will receive
the amount of such Tax Liability; and 

  

	 	(c)	 where the Committee requires, the Participant has entered into, or agreed to enter into, a valid election under
Chapter 2, Part 7, ITEPA (Employment income: elections to disapply tax charge on restricted securities) or any similar arrangement in any overseas jurisdiction. 

  
 -14- 

 In no event shall any restrictions under this Rule 8.1 on the exercise of a Vested Option
extend the Exercise Period beyond the limit of Rule 7.2(a) (for a Regular Option) and Rule 7.2(b) (for an RSU-style Option or a Short-Term Option). For the purposes of this Rule 8.1, references to Group Member
include any former Group Member. 
  

	8.2	 Exercise in whole or part 

An Option must be exercised over at least 2,000 Shares on any occasion unless the Committee decides that a Participant may exercise the Option
in respect of such fewer number of Shares as it decides or there are fewer than 2,000 Shares (or such other number as the Committee may decide) in respect of which the Option may be exercised at the relevant time, in which case the Option must be
exercised to the maximum extent possible at that time. 
  

	8.3	 Method of exercise: Options other than RSU-style Options

 The exercise of any Option other than an RSU-style Option shall be effected in
the form and manner prescribed by the Board. Unless the Board, acting fairly and reasonably determines otherwise, any notice of exercise shall, subject to Rule 8.1 (Restrictions on the exercise of an Option: regulatory and tax issues), take
effect only when the Company receives it, together with payment of any relevant Option Price (or, if the Board so permits, an undertaking to pay that amount). An RSU-style Option shall be automatically
exercised in accordance with the provisions of Rule 8.4. 
  

	8.4	 Method of exercise: RSU-style Options 

An RSU-style Option shall be automatically exercised to the full extent of the Vested Shares on the day
it becomes exercisable in relation to those Vested Shares (taking account of any restrictions on exercise pursuant to Rule 8.1), and the Participant’s undertaking to pay the Option Price shall satisfy the obligation to pay the Option Price. By
accepting the RSU-style Option the Participant shall: 
  

	 	(a)	 authorise the Company to sell or procure the sale of sufficient Vested Shares on or following exercise of his RSU-style Option on his behalf to ensure that the Company receives the amount required to discharge that undertaking to pay (and authorises the Company to apply that amount in discharging the undertaking);

  

	 	(b)	 if the Company does not so sell or procure the sale of Vested Shares, authorise the Company to recover a
sufficient amount to discharge the undertaking to pay from any amounts payable to the Participant by any Group Member whether by way of salary or otherwise; and 

 

	 	(c)	 otherwise agree to be bound by all provisions of the Plan in relation to the
RSU-style Option, including, without limitation, in relation to its exercise. 

  

	8.5	 Payment of Tax Liability 

The Participant authorises the Company to: 
  

	 	(a)	 sell or procure the sale of sufficient Vested Shares on or following exercise of his Option on his behalf to
ensure that any relevant Group Member receives the amount required to discharge the Tax Liability which arises on such exercise; or 

  

	 	(b)	 to withhold from the number of Shares deliverable on exercise of the Option such number of Shares as has a Fair
Market Value on the date the Tax Liability is to be determined equal to the Tax Liability in satisfaction of the Participant’s obligations in relation to that Tax Liability, 

except to the extent that he and the Company agree that all or part of the Tax Liability is to be funded in a different manner. 

  
 -15- 

	8.6	 Transfer or allotment timetable 

As soon as reasonably practicable after an Option has been exercised, the Company shall, subject to Rule 8.5 (Payment of Tax Liability)
and any arrangement made under Rules 8.1(b) and 8.1(c) (Restrictions on exercise: regulatory and tax issues), transfer or procure the transfer to him (or a nominee for him) or, if appropriate, allot to him (or a nominee for him) the number of
Shares in respect of which the Option has been exercised. 
  

	8.7	 Lapse of Options 

An Option which has become exercisable shall, subject to Rule 11.2 (Cessation of employment in other circumstances), Rule 12.1
(General offers), Rule 12.2 (Schemes of arrangement and winding up) or Rule 12.3 (Demergers and similar events), lapse at the end of the Exercise Period to the extent it has not been exercised. 

 

	9.	 CASH ALTERNATIVE 

 

	9.1	 Committee determination 

Where a Conditional Award Vests or where an Option has been exercised and Vested Shares have not yet been allotted or transferred to the
Participant (or his nominee), the Committee may determine that, in substitution for his right to acquire such number of Vested Shares as the Committee may decide (but in full and final satisfaction of his right to acquire those Shares), he shall be
paid by way of additional employment income a sum equal to the cash equivalent (as defined in Rule 9.3) of that number of Shares in accordance with the following provisions of this Rule 9. 

 

	9.2	 Limitation on the use of this Rule 

Rule 9.1 shall not apply in relation to an Award made to a Participant in any jurisdiction where the presence of Rule 9.1 would cause: 

 

	 	(a)	 the grant of the Award to be unlawful or for it to fall outside any applicable securities law exclusion or
exemption; or 

  

	 	(b)	 adverse tax or social security contribution consequences for the Participant or any Group Member as determined
by the Board 

 provided that this Rule 9.2 shall only apply if its application would prevent the occurrence of a
consequence referred to in (a) or (b) above. 
  

	9.3	 Cash equivalent 

For the purpose of this Rule 9, the cash equivalent of a Share is: 
  

	 	(a)	 in the case of a Conditional Award, the Fair Market Value of a Share on the day when the Award Vests;

  

	 	(b)	 in the case of an Option, the Fair Market Value of a Share on the day when the Option is exercised reduced by
the Option Price. 

  
 -16- 

	9.4	 Payment of cash equivalent 

Subject to Rule 9.5 (Share alternative), as soon as reasonably practicable after the Committee has determined under Rule 9.1 that a
Participant shall be paid a sum in substitution for his right to acquire any number of Vested Shares: 
  

	 	(a)	 the Company shall pay to him or procure the payment to him of that sum in cash; and 

 

	 	(b)	 if he has already paid the Company for those Shares, the Company shall return to him the amount so paid by him.

  

	9.5	 Share alternative 

If the Committee so decides, the whole or any part of the sum payable under Rule 9.4 shall, instead of being paid to the Participant in cash,
be applied on his behalf: 
  

	 	(a)	 in subscribing for Shares at a price equal to the market value by reference to which the cash equivalent is
calculated; or 

  

	 	(b)	 in purchasing such Shares; or 

 

	 	(c)	 partly in one way and partly in the other 

and the Company shall allot or transfer to him (or his nominee) or procure the transfer to him (or his nominee) of the Shares so subscribed for
or purchased. 
  

	9.6	 Deductions 

There shall be deducted from any payment under this Rule 9 such amounts (on account of tax or similar liabilities) as may be required by law or
as the Board may reasonably consider to be necessary or desirable and permitted by law. 
  

	10.	 LAPSE OF AWARDS 

 

	10.1	 General 

An Award shall lapse: 
  

	 	(a)	 in accordance with the Rules; or 

 

	 	(b)	 to the extent it does not Vest under these Rules. 

 

	10.2	 Dealings in Investment Shares 

A Matching Award shall lapse on the date on which the Participant: 
  

	 	(a)	 does any act in breach of any of the terms relating to his Investment Shares unless the Committee decides
otherwise; or 

  

	 	(b)	 loses his entitlement to, transfers, charges, or otherwise disposes of the Investment Shares to which the
relevant Matching Award relates 

 and such lapse shall be pro-rata to the number
of Investment Shares in respect of which such act or event occurs. 

  
 -17- 

	10.3	 Short-Term Options 

A Short-Term Option shall lapse at the end of the Short-Term Deferral Period in relation to that Option (or such shorter period set forth in
the grant documentation or as specified in by the Committee in order to avoid adverse tax consequences), if not exercised. 
  

	11.	 LEAVERS 

  

	11.1	 Good Leavers 

  

	 	(a)	 If a Participant who is a UK resident at the Grant Date of an Award ceases to be a Connected Person by reason
of: 

  

	 	(i)	 death; 

  

	 	(ii)	 retirement with the agreement of the Committee (in the case of Participants who are executive directors of the
Company or members of senior management) or the employer or company to whom the Participant provides services (in the case of all other UK Participants), determined on a
case-by-case basis in the absolute discretion of the Committee, employer or company, as applicable; 

 

	 	(iii)	 ill health, injury or disability evidenced to the satisfaction of the Committee; 

 

	 	(iv)	 redundancy (within the meaning of the UK Employment Rights Act 1996) or any overseas equivalent;

  

	 	(v)	 his office, employment or consultancy contract being with either a company which ceases to be a Group Member or
relating to a business or part of a business which is transferred to a person who is not a Group Member; or 

  

	 	(vi)	 for any other reason, if the Committee so decides, 

then he shall be a “Good Leaver” in relation to that Award. 

 

	 	(b)	 If a Participant who is resident outside of the UK at the Grant Date of an Award ceases to be a Connected
Person, then he shall be a “Good Leaver” in relation to that Award if: 

  

	 	(i)	 he is required to be so treated to comply with applicable local law; 

 

	 	(ii)	 he is to be so treated in accordance with an agreement approved by the Committee, or 

 

	 	(iii)	 the Committee otherwise in its complete discretion determines that he is to be so treated.

  

	 	(c)	 Where the Committee decides in accordance with Rule 11.1(a)(vi) or Rule 11.1(b)(iii) that the Participant is to
be a Good Leaver, they may so decide in relation to all Awards held by the Participant or certain Awards only. In the latter case, the Participant shall only be treated as a Good Leaver in relation to the relevant Awards. 

  
 -18- 

	11.2	 Good Leavers: unvested Awards 

Where a Participant ceases to be a Connected Person as a Good Leaver before the Normal Vesting Date of an Award, then: 

 

	 	(a)	 subject to Rule 6.3 (Restrictions on Vesting: tax issues) and Rule 12 (Takeovers and other corporate
events), his Award shall Vest on the Normal Vesting Date; unless 

  

	 	(b)	 the Committee decides that, subject to Rule 6.3 (Restrictions on Vesting: tax issues), his Award shall
Vest on the date of cessation or such later date (before the Normal Vesting Date) that the Committee may determine, 

 and,
in both cases, Rule 11.5 (Leavers: reduction in number of Vested Shares) shall apply. 
 If the Participant ceasing to be a Connected
Person as a Good Leaver is a US Taxpayer, then only Rule 11.2(b) shall apply to that Participant. 
 If the Award is an Option other than a RSU-style Option, it may, subject to Rule 8.1 (Restrictions on the exercise of an Option: regulatory and tax issues) and Rule 10.3 (Short-Term Options), be exercised within six months of the date of
Vesting (if Rule 11.2(a) applies), or within six months of the date of cessation (if Rule 11.2(b) applies, but in no event shall it become exercisable at any time after then end of the otherwise applicable Exercise Period. To the extent that the
Option is not exercised within the permitted exercise period, it shall (regardless of any other provision of the Plan) lapse at the end of that period. 
  

	11.3	 Good Leavers: Vested Awards 

Where a Participant ceases to be a Connected Person as a Good Leaver after the Normal Vesting Date of an Award, the Vested Award (other than a RSU-style Option) may, subject to Rule 8.1 (Restrictions on the exercise of an Option: regulatory and tax issues) and Rule 10.3 (Short-Term Options), be exercised within six months of the date of
cessation, but in no event shall it become exercisable at any time after then end of the otherwise applicable Exercise Period. To the extent that the Option is not exercised within the permitted exercise period, it shall (regardless of any other
provision of the Plan) lapse at the end of that period. 
  

	11.4	 Other leavers 

If a Participant ceases to be a Connected Person other than as a Good Leaver in relation to an Award held by him then that Award shall lapse
immediately on such cessation. 
  

	11.5	 Leavers: reduction in number of Vested Shares 

Where an Award Vests on or after a Participant ceasing to be a Connected Person, the Committee shall determine the number of Vested Shares of
that Award by the following steps: 
  

	 	(a)	 applying any Performance Condition and any other condition imposed on the Vesting of the Award in accordance
with Rule 6.2 (Extent of Vesting); and 

  

	 	(b)	 if the Committee so decides, applying such reduction to the number of Shares determined under Rule 11.5(a) as
it sees fit (such reduction to be, unless it decides otherwise, on such pro-rata basis as it may determine). 

If an Award Vests under any of Rules 12.1 to 12.3 when the holder of that Award has ceased to be a Connected Person then this Rule 11.5 shall
take precedence over Rule 12.5. 
  

	11.6	 Meaning of ceasing to be a Connected Person 

A Participant shall not be treated for the purposes of this Rule 11 as ceasing to be a Connected Person until such time as he is no longer a
director or employee of, or a Consultant to, any Group Member. If any Participant ceases to be such a director or employee before the Vesting of his Award in circumstances where he retains a statutory right to return to work then he shall

  
 -19- 

 
be treated as not having ceased to be such a director or employee until such time (if at all) as he ceases to have such a right to return to work while not acting as an employee or director. In
the case of a US Taxpayer, a Participant shall not be treated for the purposes of this Rule 11 as ceasing to be a Connected Person unless and until the Participant has also had a “separation from service” for purposes of Section 409A.

 The reason for the termination of office or employment of a Participant, or the relevant consultancy contract, shall be determined by
reference to Rules 11.1 and 11.4 regardless of whether such termination was lawful or unlawful. 
  

	12.	 TAKEOVERS AND OTHER CORPORATE EVENTS  

 

	12.1	 General offers 

If any person (or group of persons acting in concert): 
  

	 	(a)	 obtains (or, in the reasonable opinion of the Committee, is expected to obtain) Control of the Company as a
result of making a general offer to acquire Shares; or 

  

	 	(b)	 having obtained Control of the Company makes such an offer and such offer becomes unconditional in all respects

 the Committee shall within 7 days of becoming aware of that event or forming such opinion (as applicable) notify every
Participant accordingly and, subject to Rule 12.4 (Internal reorganisations), the following provisions shall apply: 
  

	 	(i)	 subject to Rule 6.3 (Restrictions on Vesting: tax issues), all Awards shall Vest on such date as the
Committee may determine (being no later than the date of the change in Control of the Company or the offer becoming unconditional in all respects, as applicable) (such date being the Early Vesting Date) if they have not then Vested and Rule 12.5
(Corporate events: reduction in number of Vested Shares) shall apply; and 

  

	 	(ii)	 any Option may, subject to Rule 8.1 (Restrictions on the exercise of an Option: regulatory and tax
issues), be exercised within one month of the Early Vesting Date (or such shorter period of time approved by the Committee, not to be less than five days), except for RSU-style Options, which shall be
automatically exercised to the full extent of the Vested Shares upon the Early Vesting Date, but to the extent that an Option is not exercised within that period, that Option shall (regardless of any other provision of the Plan) lapse at the end of
that period. 

  

	12.2	 Schemes of arrangement and winding up 

In the event that: 
  

	 	(a)	 a compromise or arrangement is sanctioned by the Court under section 899 of the Companies Act 2006 in
connection with or for the purposes of a change in Control of the Company; or 

  

	 	(b)	 the Company passes a resolution for a voluntary winding up of the Company; or 

 

	 	(c)	 an order is made for the compulsory winding up of the Company 

or, in the reasonable opinion of the Committee, any of the above events is expected to occur, all Awards shall, subject to Rule 6.3
(Restrictions on Vesting: tax issues) and Rule 12.4 (Internal reorganisations), Vest on such date as the Committee may determine (being no later than the date of such event) (such date being the Early Vesting Date) if they have not
then Vested and Rule 12.5 (Corporate events: reduction in number of Vested Shares) shall apply. 

  
 -20- 

 If an event as described in this Rule 12.2 occurs (or, in the reasonable opinion of the
Committee, is expected to occur) then an Option may, subject to Rule 8.1 (Restrictions on the exercise of an Option: regulatory and tax issues) and Rule 12.4 (Internal reorganisations), be exercised within one month of the Early
Vesting Date (except for RSU-style Options, which shall be automatically exercised to the full extent of the Vested Shares upon the Early Vesting Date), but to the extent that the Option is not exercised
within that period, it shall (regardless of any other provision of the Plan) lapse at the end of that period. 
  

	12.3	 Demergers and similar events  

If a demerger, special dividend or other similar event (the “Relevant Event”) is proposed which, in the opinion of the
Committee, would affect the market price of Shares to a material extent, then the Committee may, at its discretion, decide that the following provisions shall apply: 
  

	 	(a)	 the Committee shall, as soon as reasonably practicable after deciding to apply these provisions, notify a
Participant that, subject to earlier lapse under Rule 11 (Leavers), his Award Vests and, if relevant, his Option may be exercised on such terms as the Committee may determine and during such period preceding the Relevant Event or on the
Relevant Event as the Committee may determine and shall lapse at the end of that period to the extent unexercised; 

  

	 	(b)	 if an Award Vests, or an Option is exercised, conditional upon the Relevant Event and such event does not occur
then the conditional Vesting or exercise shall not be effective and the Award shall continue to subsist; and 

  

	 	(c)	 if the Committee decides that an Award Vests under this Rule 12.3 then the date of that Vesting shall be the
Early Vesting Date and the provisions of Rule 12.5 (Corporate events: reduction in number of Vested Shares) shall apply. 

  

	12.4	 Internal reorganisations 

In the event that: 
  

	 	(a)	 a company (the “Acquiring Company”) is expected to obtain Control of the Company as a result
of an offer referred to in Rule 12.1 (General offers) or a compromise or arrangement referred to in Rule 12.2(a) (Schemes of arrangement and winding up); and 

 

	 	(b)	 at least 75% of the shares in the Acquiring Company are expected to be held by substantially the same persons
who immediately before the obtaining of Control of the Company were shareholders in the Company 

 then the Committee, with
the consent of the Acquiring Company, may decide before the obtaining of such Control that an Award shall not Vest under Rule 12.1 or Rule 12.2 but shall be automatically surrendered in consideration for the grant of a new award which the Committee
determines is equivalent to the Award it replaces except that it will be over shares in the Acquiring Company or some other company. 
 The
Rules will apply to any new award granted under this Rule 12.4 as if references to Shares were references to shares over which the new award is granted and references to the Company were references to the company whose shares are subject to the new
award. 

  
 -21- 

 In the case of an Award granted to a US Taxpayer, Rule 12.4 shall be administered in a
manner that either complies with Section 409A of the IRS Code, or in a manner that does not result in the Award becoming subject to Section 409A. 
  

	12.5	 Corporate events: reduction in number of Vested Shares  

If an Award Vests under any of Rules 12.1 to 12.3, the Committee shall determine in its absolute discretion, including by way of an agreement
approved by the Committee, the number of Vested Shares of that Award. Without limitation to the generality of the foregoing, the Committee may determine that number by the following steps: 

 

	 	(a)	 applying any Performance Condition and any other condition imposed on the Vesting of the Award; and

  

	 	(b)	 subject to Rule 11.5 (Leavers: reduction in number of Vested Shares), and if the Committee so decides,
by applying such reduction to the number of Shares determined under Rule 12.5(a) as it sees fit (such reduction to be, unless it decides otherwise, on such pro-rata basis as it may determine).

 If an Award Vests under any of Rules 12.1 to 12.3 after the holder of that Award has ceased to be a Connected Person
then Rule 11.5 shall take precedence over this Rule 12.5. 
  

	13.	 ADJUSTMENT OF AWARDS 

 

	13.1	 General rule 

In the event of: 
  

	 	(a)	 any variation of the share capital of the Company; or 

 

	 	(b)	 a demerger, special dividend or other similar event which affects the market price of Shares to a material
extent 

 the Committee may make such adjustments as it considers appropriate under Rule 13.2 (Method of adjustment)
taking into account, where relevant, any adjustment to the related holding of Investment Shares under Rule 3.4 (Variation of share capital – Investment Shares). 
  

	13.2	 Method of adjustment 

An adjustment made under this Rule shall be to one or more of the following: 

 

	 	(a)	 the number of Shares comprised in an Award; 

 

	 	(b)	 subject to Rule 13.3 (Adjustment below nominal value), the Option Price; and 

 

	 	(c)	 where any Award has Vested or Option has been exercised but no Shares have been transferred or allotted after
such Vesting or exercise, the number of Shares which may be so transferred or allotted and (if relevant) the price at which they may be acquired. 

In the case of any Award granted to a US Taxpayer, any adjustment under this Rule 13.2 shall be made in a manner that complies with Sections
409A and, in the case of ISO Options, 424 of the Code. 

  
 -22- 

	13.3	 Adjustment below nominal value 

An adjustment under Rule 13.2 may have the effect of reducing the price at which Shares may be subscribed for on the exercise of an Option to
less than their nominal value, but only if and to the extent that the Board is authorised: 
  

	 	(a)	 to capitalise from the reserves of the Company a sum equal to the amount by which the nominal value of the
Shares in respect of which the Option is exercised and which are to be allotted after such exercise exceeds the price at which the Shares may be subscribed for; and 

 

	 	(b)	 to apply that sum in paying up such amount on such Shares 

so that on exercise of any Option in respect of which such a reduction shall have been made the Board shall capitalise that sum (if any) and
apply it in paying up that amount. 
  

	14.	 ALTERATIONS 

  

	14.1	 General rule on alterations 

Except as described in Rule 14.2 (Shareholder approval) and Rule 14.4 (Alterations to disadvantage of Participants), the
Committee may at any time alter the Plan or the terms of any Award including without limitation to modify Awards granted or to be granted to individuals who are nationals of a jurisdiction, or employed, outside the United Kingdom and the United
States or establish sub-plans or procedures under the Plan to address differences in laws, rules, regulations or customs of such international jurisdictions with respect to tax, securities, currency, employee
benefit or other matters. 
  

	14.2	 Shareholder approval 

Except as described in Rule 14.3 (Exceptions to shareholder approval), no alteration to the advantage of an individual to whom an Award
has been or may be granted shall be made under Rule 14.1 to the provisions concerning: 
  

	 	(a)	 the individual limits on participation; 

 

	 	(b)	 the overall limits on the issue of Shares or the transfer of treasury Shares; and 

the terms of this Rule 14.2 without the prior approval by ordinary resolution of the members of the Company in general meeting. 

In addition, the Company shall not have the authority to: (i) reduce the Option Price of any outstanding Options under the Plan, or
(ii) cancel any outstanding Option that has an Option Price greater than the current Fair Market Value of the Shares in exchange for cash or other Awards under the Plan, unless the shareholders of the Company have approved such an action within
twelve (12) months prior to such an event. 
  

	14.3	 Exceptions to shareholder approval 

Rule 14.2 (Shareholder approval) shall not apply to: 
  

	 	(a)	 any minor alteration to benefit the administration of the Plan, to take account of a change in legislation or
to obtain or maintain favourable tax, exchange control or regulatory treatment for Participants or any Group Member; or 

  

	 	(b)	 any alteration relating to the Performance Condition made under Rule 14.5; or 

  
 -23- 

	 	(c)	 for the avoidance of doubt, any alteration not named in Rule 14.2. 

 

	14.4	 Alterations to disadvantage of Participants 

No alteration to the material disadvantage of Participants (other than a change to any Performance Condition) shall be made under Rule 14.1
unless: 
  

	 	(a)	 the Board shall have invited every relevant Participant to indicate whether or not he approves the alteration;
and 

  

	 	(b)	 the alteration is approved by a majority of those Participants who have given such an indication.

 Notwithstanding the foregoing, the Board may amend the Plan so as to apply to existing Awards, or the terms of an Award,
without such approval to: correct what they consider to be an error in the drafting of the Plan or the Award documentation which is evidently an error from the wording of the Plan or the Award documentation; clarify the manner of exemption from, or
to bring the Award into compliance with, Section 409A; or to comply with other applicable laws, regulations, ruling, judicial decision or listing requirements. 
  

	14.5	 Alterations to a Performance Condition 

The Committee may amend any Performance Condition without prior shareholder approval if: 

 

	 	(a)	 an event has occurred which causes the Committee reasonably to consider that it would be appropriate to amend
the Performance Condition; and 

  

	 	(b)	 the Committee shall act fairly and reasonably in making the alteration. 

 

	15.	 MISCELLANEOUS 

 

	15.1	 Employment, office or consultancy 

The rights and obligations of any individual under the terms of his office or employment with any Group Member, or the contract pursuant to
which he is a Consultant, shall not be affected by his participation in the Plan or any right which he may have to participate in it. An individual who participates in the Plan waives any and all rights to compensation or damages in consequence of
the termination of his office, employment or consultancy for any reason whatsoever insofar as those rights arise or may arise from him ceasing to have rights under an Award as a result of such termination. Participation in the Plan shall not confer
a right to continued employment, office or consultancy upon any individual who participates in it. 
  

	15.2	 No implied right to participate 

No Connected Person has a right to participate in the Plan The grant of any Award does not imply that any further Award will be granted nor
that a Participant has any right to receive any further Award. Participation in the Plan or the grant of Awards on a particular basis in any year does not create any right to or expectation of participation in the Plan or the grant of Awards on the
same basis, or at all, in any future year. 
  

	15.3	 Disputes 

In the event of any dispute or disagreement as to the interpretation of the Plan, or as to any question or right arising from or relating to
the Plan, the decision of the Committee shall be final and binding upon all persons. 

  
 -24- 

	15.4	 Exercise of powers and discretions and delegation 

 

	 	(a)	 The exercise of any power or discretion by the Board or the Committee shall not be open to question by any
person and a Participant or former Participant shall have no rights in relation to the exercise of or omission to exercise any such power or discretion. 

  

	 	(b)	 Notwithstanding anything else to the contrary in these Rules, any matter to be determined in relation to an
Award granted or to be granted to, or held by, the Company’s chief executive officer or its other executive officers must be determined or recommended to the full board of the Company for determination either by: 

 

	 	(i)	 independent directors constituting a majority of the board’s independent directors in a vote in which only
independent directors participate; or 

  

	 	(ii)	 a compensation committee comprised solely of independent directors. 

This Rule 15.4(b) shall be interpreted in accordance with the NASDAQ Listing Rules, save that “independent director” shall mean a
person who is both an independent director within the meaning of the NASDAQ Listing Rules and a non-employee director within the meaning of Rule16b-3 under the
Securities Exchange Act of 1934 of the United States (the “Exchange Act”). 
  

	 	(c)	 Subject always to Rule 15.4(b), the Board or the Committee may delegate its powers to such person or persons as
it determines, and on such terms as it determines, provided that the Board or Committee may not delegate its power and authority to the chief executive officer or other executive officer of the Company with regard to the selection for participation
in the Plan of an officer, director or other person subject to Section 16 of the Exchange Act or decisions concerning the timing, pricing or amount of an Award granted to such an officer, director or other person. 

 

	15.5	 Share rights 

All Shares allotted under the Plan shall rank equally in all respects with Shares then in issue except for any rights attaching to such Shares
by reference to a record date before the date of the allotment. 
 Where Vested Shares are transferred to Participants (or their nominee)
they shall be entitled to all rights attaching to such Shares by reference to a record date on or after the date of such transfer. 
  

	15.6	 Notices 

Any notice or other communication under or in connection with the Plan may be given: 

 

	 	(a)	 by personal delivery or by post, in the case of a company to its registered office, and in the case of an
individual to his last known address, or, where he is a Connected Person, either to his last known address or to the address of the place of business at which he performs the whole or substantially the whole of the duties of his office, employment
or other arrangement pursuant to which he is a Connected Person; 

  

	 	(b)	 in an electronic communication to their usual business address or such other address for the time being
notified for that purpose to the person giving the notice; or 

  

	 	(c)	 by such other method as the Board determines. 

  
 -25- 

	15.7	 Third parties 

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

 

	15.8	 Benefits not pensionable 

Benefits provided under the Plan shall not be pensionable. 
  

	15.9	 Data Protection 

 

	 	(a)	 As a condition for receiving any Award, each Participant acknowledges that the Company and any Subsidiary of
the Company may collect, use and transfer, in electronic or other form, personal data as described in this section by and among the Company and its Subsidiaries and affiliates exclusively for implementing, administering and managing the
Participant’s participation in the Plan. The Company (as above) may hold certain personal information about a Participant, including the Participant’s name, address and telephone number; birthdate; social security, insurance number or
other identification number; salary; nationality; job title(s); any Shares held; and Award details, to implement, manage and administer the Plan and Awards (the “Data”). The Company (as above) may transfer the Data amongst
themselves as necessary to implement, administer and manage a Participant’s participation in the Plan, and the Company (as above) may transfer the Data to third parties assisting the Company with Plan implementation, administration and
management. These recipients may be located in the Participant’s country, or elsewhere, and the Participant’s country may have different data privacy laws and protections than the recipients’ country. By accepting an Award, each
Participant acknowledges that such recipients may receive, possess, use, retain and transfer the Data, in electronic or other form, to implement, administer and manage the Participant’s participation in the Plan, including any required Data
transfer to a broker or other third party with whom the Company or the Participant may elect to deposit any Shares. The Data related to a Participant will be held only as long as necessary to implement, administer, and manage the Participant’s
participation in the Plan. A Participant may, at any time, view the Data that the Company holds regarding such Participant, request additional information about the storage and processing of the Data regarding such Participant and recommend any
necessary corrections to the Data regarding the Participant in writing, without cost, by contacting the local human resources representative. 

  

	 	(b)	 For the purpose of operating the Plan in the European Union and the United Kingdom, the Company will collect
and process information relating to Participants in accordance with the privacy notice which is provided to each Participant. 

  

	15.10	 Governing law 

The Plan and all Awards shall be governed by and construed in accordance with the laws of England and Wales and the Courts of England and Wales
have exclusive jurisdiction to hear any dispute. 
  

	15.11	 Section 409A 

Although neither the Company, the Committee nor any Group Member guarantees any particular tax treatment to a US Participant, all Awards
granted to US Taxpayers are intended to be exempt from, or compliant with, the application of Section 409A of the IRS Code: 

  
 -26- 

	 	(a)	 in the case of Awards other than Regular Options, pursuant to the short-term deferral exception set forth
Treas. Regs. §1.409A-1(b)(4)); and 

  

	 	(b)	 in the case of Regular Options, as options which are exempt from Section 409A; 

and this Plan shall be limited, construed and administered consistent with that intent. Accordingly, notwithstanding any Rule in the Plan to
the contrary, in the case of Awards granted to US Taxpayers: 
  

	 	(c)	 in any instance in which a new Regular Option is substituted for an outstanding Option pursuant to a corporate
transaction or in any instance in which an outstanding Regular Option is assumed pursuant to a corporate transaction, the number of Shares and the Option Price shall be adjusted in accordance with the principles set forth in Sections 1.424-1(a)(5) and 1.409A-1(b)(5)(v)(D) of the Treasury Regulations. The instances in which there may be a substitution of a new Regular Option for an outstanding Option
pursuant to a corporate transaction shall be limited to those corporate transactions authorized by the Plan but shall be further limited to only those corporate transactions described in Section 1.424(a)(3) of the Treasury Regulations. In the
case of a stock split (including a reverse stock split), or stock dividend involving the Shares where the only effect of the stock split or stock dividend is to increase or decrease on a pro rata basis the number of Shares owned by each shareholder,
the Option Price and the number of Shares subject to an Option shall be proportionally adjusted to reflect such stock split or stock dividend; 

  

	 	(d)	 The Shares underlying any Regular Option granted to a US Taxpayer shall in all instances constitute
“service recipient stock” and shall be issued by a Group Member that is, with respect to such US Taxpayer, an “eligible issuer of service recipient stock” for purposes of IRS Code Section 409A; 

 

	 	(e)	 To the extent that any amount payable under the Plan constitutes
non-exempt “deferred compensation” for purposes of Section 409A and would otherwise be payable or distributable under the Plan by reason of the occurrence of a corporate transaction, such amount
or benefit will not be payable or distributable to the Participant who is a US Taxpayer by reason of such corporate transaction unless the circumstances giving rise to such corporate transaction constitutes a “change in control event” in
Section 409A of the IRS Code. If this provision prevents the payment or distribution of any amount, such payment or distribution shall be made on the next earliest payment or distribution date or event specified in the Plan that is permissible
under Section 409A; and 

  

	 	(f)	 If any amount or benefit that constitutes non-exempt “deferred
compensation” for purposes of Section 409A would otherwise be payable or distributable under this Plan by reason of a Participant’s separation from service during a period in which the Participant is a Specified Employee (as defined
below), then, subject to any permissible acceleration of payment by the Committee under Treas. Reg. Section 1.409A -3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or
(j)(4)(vi) (payment of employment taxes), the Participant’s right to receive payment or distribution of such non-exempt deferred compensation will be delayed until the earlier of the Participant’s
death or the first day of the seventh month following the Participant’s separation from service. For purposes of this Plan, the term “Specified Employee” has the meaning given such term in Section 409A, provided, however, that,
as permitted thereunder, the Company’s Specified Employees and its application of the six-month delay rule of IRS Code Section 409A(a)(2)(B)(i) shall be determined in accordance with rules adopted by
the Committee, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company applicable to US Taxpayers, including this Plan. 

  
 -27- 

 SCHEDULE 1 

CASH CONDITIONAL AWARDS 
 The Rules of the
GW Pharmaceuticals plc 2020 Long-Term Incentive Plan shall apply to a right (a “Cash Conditional Award”) to receive a cash sum granted or to be granted under this Schedule as if it was a Conditional Award, except as set out in this
Schedule. Where there is any conflict between the Rules and this Schedule, the terms of this Schedule shall prevail. 
  

	1.	 The Committee may grant or procure the grant of a Cash Conditional Award. 

 

	2.	 Each Cash Conditional Award shall relate to a given number of notional Shares. 

 

	3.	 On the Vesting of the Cash Conditional Award the holder of that Award shall be entitled to a cash sum which
shall be equal to the “Cash Value” of the notional Vested Shares, where the Cash Value of a notional Share is the market value of a Share on the date of Vesting of the Cash Conditional Award. For the purposes of this Schedule, the
market value of a Share on any day shall be determined in accordance with Rule 9.3 (Cash equivalent). 

  

	4.	 The cash sum payable under paragraph 3 above shall be paid by the employer of the Participant as soon as
practicable after the Vesting of the Cash Conditional Award, net of any deductions (on account of tax or similar liabilities) as may be required by law or as the Board may reasonably consider to be necessary or desirable (and in relation to any Cash
Conditional Award granted to a US Taxpayer, within such period of time as may be specified in the grant documentation to avoid adverse tax consequences under Section 409A). 

 

	5.	 For the avoidance of doubt, a Cash Conditional Award shall not confer any right on the holder of such an Award
to receive Shares or any interest in Shares. 

  
 -28- 

 SCHEDULE 2 

ITALIAN AWARDS 
 This schedule
(“Schedule 2”) modifies the provisions of the GW Pharmaceuticals plc 2020 Long-Term Incentive Plan, as amended from time to time (the “Plan”) with respect to Awards made to a Participant who is employed in Italy. The provisions
of this Schedule 2 apply automatically to those Awards. 
  

	1.	 Indirect pay 

By accepting an Award, the Participant agrees and accepts that any economic benefits deriving from the Award or the Plan shall not be
considered part of normal or expected compensation, and accordingly shall not be included in the calculation of indirect pay for any purpose (including, without limitation, for the purpose of severance payments, TFR (trattamento di fine rapport),
payment in lieu of notice and bonus payments). 
  

	2.	 Statutory right to return to work 

The sentence “If any Participant ceases to be such a director or employee before the Vesting of his Award in circumstances where he
retains a statutory right to return to work then he shall be treated as not having ceased to be such a director or employee until such time (if at all) as he ceases to have such a right to return to work while not acting as an employee or
director.” in Rule 11.6 (Meaning of ceasing to be a Connected Person) shall not apply in circumstances where the Participant ceases to be a Connected Person by reason of the relevant relationship being terminated by a Group Member. 

  
 -29- 

 SCHEDULE 3 

FRENCH SUB PLAN 

FRENCH-QUALIFIED FREE SHARES 

Preamble 
 The
Board of Directors of GW Pharmaceuticals plc (the “Company”) has established the 2020 Long-term Equity Incentive Plan (the “Plan”) for the benefit of certain eligible persons, including employees of the Company and
its Subsidiaries, including its Subsidiaries in France of which the Company holds directly or indirectly at least 10% of the share capital (each, a “French Entity”). 

Rule 14.1 (General rule on alterations) of the Plan specifically authorises the Committee to adopt
sub-plans and/or special terms applicable to any Award made under the Plan to the benefit of participants outside the United Kingdom and United States. 

The Committee has determined that it is appropriate and desirable to establish a sub-plan for the
purposes of permitting RSU-style Options granted to employees of a French Entity that qualify for specific tax and social security treatment in France (“Free Share Awards”). The Committee,
therefore, decided to establish a sub-plan to the Plan for the purpose of granting Free Share Awards that qualify for the specific tax and social security treatment in France applicable to free shares granted
under Sections L. 225-197-1 to L. 225-197-6 of the French Commercial Code, as amended
(referred to herein as “French-qualified Free Shares”), to employees of a French Entity who are resident in France for French tax purposes and/or subject to the French social security regime (the “French
Participants”). 
 The Free Share Awards shall be RSU-style Options governed by the terms of
the Plan applicable to RSU-style Options, subject to the provisions set forth in this Schedule, and those terms together shall constitute the “French
Sub-Plan”. 
 Fundamental characteristics of the
RSU-Style Options granted as Free Share Awards to French Participants under the French Sub-Plan: 

 

	 	•	 	 the beneficiaries will receive Ordinary Shares or ADSs when the Free Share Awards Vest. Save as provided in this
Schedule, the Free Share Awards shall not Vest before the second anniversary of the Grant Date (and, accordingly, the Normal Vesting Date shall not be before that second anniversary). 

 

	 	•	 	 the exercise of the Free Share Awards will be automatic as provided for by Rule 8.4 of the Plan

  

	 	•	 	 the delivery of the Shares pursuant to the Free Share Awards is subject to the payment by the beneficiaries of
the nominal value of 0.1p for each Ordinary Share subject to the Free Share Award. In accordance with position of the French tax authorities, the payment of this consideration does not exceed 5% of the Fair Market Value of the Share at the Grant
Date and does not prevent that the Free Share Award qualifying as French-qualified Free Shares (BOI-RSA-ES-20-20-10-20, n°390). 

  
 -30- 

 Specific provisions of the French Sub Plan which supersede Rules of the Plan.  

Definitions. Capitalised terms not otherwise defined herein shall have the same meanings as set forth in the Plan. 

Accelerated vesting: Takeovers etc. A Free Share Award may not be exercised before the Normal Vesting Date pursuant to Rule 12 (Takeovers and other
corporate events) unless the Committee specifically determines that the Award may be so exercised, in which case the provisions of Rule 12 shall apply in relation to the relevant transaction. 

Accelerated vesting: Good Leavers: Except in the case of the death of a French Participant, the Committee shall not make any determination under Rule
11.2(b) (Good Leavers: unvested Awards) that would result in a Free Share Award Vesting before the second anniversary of the Grant Date. 
 Death
of a French Participant. If a French Participant ceases to be a Connected Person by reason of death before the Normal Vesting Date of a Free Share Award the Committee shall determine that the French Participant is a Good Leaver pursuant to Rule
11.1(b) (Good Leavers). If a French Participant so ceases to be a Connected Person or, following ceasing to be a Connected Person as a Good Leaver, dies before the Normal Vesting Date, his or her rightful heirs can request, within a 6-month period following the date of death, the immediate delivery of the Shares subject to the Free Share Awards held by that French Participant, in accordance with Article L. 225-197-3 of the French Commercial Code. Upon receiving any such request, the Committee shall determine that the Free Share Award shall Vest immediately in accordance with Rule 11.2(b) (Good Leavers:
unvested Awards), and the Award shall vest in full (so the Committee shall not apply any reduction pursuant to Rule 11.5(b) (Leavers: reduction in number of Vested Shares). If no such request is made within the aforementioned 6-month period, the Award will automatically lapse at the end of that period. 
 Limits regarding percentage of holding
of the Company’s capital by a French Participant. Free Share Awards may not be issued under the French Sub-Plan to French Participants who own more than ten percent (10%) of the Company’s
share capital. 
 Grants of Free Share Awards may not result in any French Participant’s owning more than ten percent (10%) of the Company’s share
capital. 
 Delivery of Shares only. Only Shares, and not the cash equivalent in lieu of such Shares, may be delivered to any French Participant
pursuant to Free Share Awards. Accordingly, Rule 9 (Cash alternative) of the Plan does not apply to Free Share Awards. 
 Disqualification of Free Share
Awards as French-qualified Free Shares. If, following the grant, changes are made to the terms and conditions of the Free Share Awards due to any applicable legal requirements or a decision of the Company’s shareholders, the Board or the
Committee, the Free Share Awards may no longer qualify as French-qualified Free Shares. If the Free Share Awards no longer qualify as French-qualified Free Shares, the Committee may determine, in its sole discretion, to lift, shorten or terminate
certain restrictions applicable to the vesting of the Free Share Awards or to the sale of the Shares delivered pursuant to the Free Share Awards, which restrictions have been imposed under this French
Sub-Plan. 
 Adjustment of Free Share Awards. The Committee may only make adjustments to a Free Share Award
pursuant to Rule 13 (Adjustment of Awards) in the case of transactions mentioned in Article L. 225-181 of the French Commercial Code. Any such adjustment shall be in order to guarantee the neutrality of
the relevant transaction on the rights of the French Participants, such adjustments not being mandatory upon the Company. 

  
 -31- 

 Employment Rights. The adoption of this French Sub-Plan
(a) shall not confer any employment rights upon the French Participants or any employees of a French Entity, and (b) shall not be construed as a part of any employment contracts that a French Entity has with its employees. 

Amendments. Subject to the terms of the Plan, the Committee reserves the right to amend or terminate this French
Sub-Plan at any time in accordance with applicable French law. 
 Interpretation. The Free Share Awards are
intended to qualify for the specific tax and social security treatment applicable to free shares granted under Sections L. 225-197-1 to L.
225-197-6 of the French Commercial Code, as amended, and in accordance with the relevant provisions set forth by French tax and social security laws. Nevertheless, the
Company does not undertake to maintain this status. The terms of this French Sub-Plan shall be interpreted accordingly and in accordance with the relevant provisions set forth by French tax and social security
laws and relevant guidelines published by French tax and social security administrations and subject to the fulfilment of certain legal, tax, and reporting obligations, to the extent applicable. In the event of any conflict between the provisions of
this French Sub-Plan and the Plan, the provisions of this French Sub-Plan shall control for any grants of Free Share Awards made hereunder to French Participants. 

  
 -32-Exhibit

Exhibit 4(T)
DESCRIPTION OF SECURITIES
V.F. Corporation (“VF,” the “Company,” “we,” “us,” or “our”) has four classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  VF’s common stock is registered under Section 12(b) of the Exchange Act and is listed on the New York Stock Exchange under the symbol “VFC”.  VF’s (i) 0.625% Senior Notes due 2023, (ii) 0.250% Senior Notes due 2028 and (iii) 0.625% Senior Notes due 2032 are also registered under Section 12(b) of the Exchange Act and are listed on the New York Stock Exchange under the symbols “VFC23,” “VFC28” and “VFC32,” respectively.

Common Stock
The following description of our capital stock is based upon our articles of incorporation, which were restated as of October 21, 2013 (the “Articles of Incorporation”), our amended and restated by-laws, which were amended as of May 12, 2020 (the “By-laws”), and applicable provisions of law.  We have summarized certain portions of the Articles of Incorporation and By-laws below.  The summary is not complete.  The Articles of Incorporation and By-laws are filed as exhibits to our most recent Annual Report on Form 10-K and are incorporated by reference herein.  Holders should read the Articles of Incorporation and By-laws for the provisions that are important to them.
Certain provisions of the Pennsylvania Business Corporation Law, as amended (the “BCL”), the Articles of Incorporation and By-laws could have the effect of delaying, deferring or preventing a tender offer, change in control or the removal of existing management that a shareholder might consider in its best interests, including those attempts that might result in a premium over the market price for its shares.
Authorized Capital Stock
Our Articles of Incorporation authorize us to issue 1,200,000,000 shares of common stock, without par value, and 25,000,000 shares of preferred stock, par value $1.00 per share.
Common Stock
As of March 28, 2020, there were 388,812,158 shares of common stock issued and outstanding, which were held of record by 3,094 shareholders.   The holders of common stock are entitled to one vote per share (which is non-cumulative) on all matters to be voted upon by the shareholders.  Subject to preferences that may be applicable to any outstanding preferred stock, the holders of common stock are entitled to receive dividends, if any, as may be declared from time to time by the board of directors out of funds legally available therefor.  In the event of the liquidation, dissolution or winding up of VF, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding.  The common stock has no preemptive or conversion rights or other subscription rights.  There are no redemption or sinking fund provisions applicable to the common stock.  All outstanding shares of common stock are fully paid and non-assessable.  The common stock is listed on the New York Stock Exchange.  The transfer agent and registrar for the common stock is Computershare Trust Company, N.A., P.O. Box 43126, Providence, Rhode Island 02940.
Preferred Stock
Under the Articles of Incorporation, the board of directors is authorized to provide for the issuance of up to 25,000,000 shares of preferred stock, par value $1.00 per share, in one or more series, with such voting powers, full or limited and the number of votes per share, or without voting powers, and with such designations, preferences and relative, participating, optional or other special rights, and qualifications, limitations or restrictions thereof, as shall be established in or pursuant to the resolution or resolutions providing for the issuance thereof to be adopted by the board of directors.  Prior to the issuance of each series of preferred stock, the board of directors will adopt resolutions creating and designating such series as a series of preferred stock. As of March 28, 2020, there were no shares of preferred stock outstanding.

Certain Provisions of the Articles of Incorporation, the By-laws and Pennsylvania Law
Advance Notice of Proposals and Nominations
Notices of shareholder proposals and nominations for election of directors at the Company’s annual meeting of shareholders may be made by any shareholder entitled to vote only if written notice is given by the shareholder and received by the Secretary of the Company not less than 120 days before the anniversary of the date the Company mailed its proxy materials for the prior year’s annual meeting of shareholders.
Supermajority Voting Provisions
Certain provisions of our Articles of Incorporation and By-laws require a greater percentage shareholders’ vote than a majority of the shares cast at a meeting at which a quorum of shareholders is present.  For example, removal of directors requires approval by 80% of the votes that all shareholders would be entitled to cast at any election of directors. Our By-laws and Articles of Incorporation may only be amended, altered, repealed or new By-laws or Articles adopted upon approval by at least 80% of the votes entitled to be cast by shareholders, unless the change was proposed by a majority of the “disinterested directors” (as defined in the By-laws), in which case only a majority approval vote is required, or unless the change was approved by a majority vote of the disinterested directors.
Certain Anti-Takeover Effects of Pennsylvania Law
We are subject to Subchapter F of Chapter 25 of the BCL.  Subchapter F applies to a transaction between a publicly traded corporation and an interested shareholder (defined generally to be any beneficial owner of 20% or more of the corporation’s voting stock).  Subchapter F prohibits such a corporation from engaging in a “business combination” (as defined in the BCL) with an interested shareholder unless (i) the board of directors of such corporation gives approval to the proposed transaction or gives approval to the interested shareholder’s acquisition of 20% of the shares entitled to vote in an election of directors of such corporation, in either case prior to the date on which the shareholder first becomes an interested shareholder (the “Share Acquisition Date”); (ii) the interested shareholder owns at least 80% of the stock of such corporation entitled to vote in an election of directors of such corporation, and no earlier than three months after such interested shareholder reaches such 80% level, the majority of the remaining shareholders approve the proposed transaction, shareholders receive a minimum “fair price” for their shares (as set forth in the BCL) in the transaction and the other conditions of Subchapter F are met; (iii) holders of all outstanding shares of common stock of the corporation approve the transaction; (iv) no earlier than five years after the Share Acquisition Date, a majority of the holders of the remaining shares entitled to vote in an election of directors approve the transaction; or (v) no earlier than five years after the Share Acquisition Date, a majority of all holders of the shares of the corporation approve the transaction, all shareholders receive a minimum “fair price” for their shares (as set forth in the BCL) and the other conditions of Subchapter F are met.
Under certain circumstances, Subchapter F of the BCL makes it more difficult for an interested shareholder to effect various business combinations with a corporation by imposing additional time delays and higher voting requirements with respect to such transactions.  The provisions of Subchapter F should encourage persons interested in acquiring us to negotiate in advance with our board of directors, since the five-year delay and higher shareholder voting requirements would not apply if such person, prior to acquiring 20% of our voting shares, obtained the approval of our board for such acquisition or for the proposed business combination transaction.
Subchapter F of the BCL will not prevent a hostile takeover of VF.  It may, however, make more difficult or discourage a takeover of VF or the acquisition of control of VF by a significant shareholder and thus the removal of incumbent management.  Some shareholders may find this disadvantageous in that they may not be afforded the opportunity to participate in takeovers that are not approved as required by Subchapter F but in which shareholders might receive, for at least some of their shares, a substantial premium above the market price at the time of a tender offer or other acquisition transaction.
We are also subject to Section 2538 of Subchapter D of Chapter 25 of the BCL and Subchapter E of Chapter 25 of the BCL.  Section 2538 requires the approval of a majority of the disinterested shareholders with respect to certain transactions between an “interested shareholder” (as defined in Section 2538) and a publicly traded corporation unless 

2

certain procedural requirements are satisfied.  Subchapter E of Chapter 25 of the BCL requires a “controlling person,” defined generally as a person who acquires 20% or more of the voting shares of a publicly traded corporation, to offer to purchase the shares of all other shareholders at “fair value” (determined as provided in Subchapter E).  Fair value for this purpose is defined as a value not less than the highest price paid per share by the controlling person during the 90-day period ending on and including the date the controlling person acquired 20% or more of the voting shares of the corporation, plus any control premium that is not already reflected in such price.
Subchapter G of Chapter 25 of the BCL also contains certain provisions applicable to a publicly traded corporation pursuant to which, under certain circumstances, “control shares” (as defined in the BCL) lose voting rights until restored by a vote of a majority of disinterested shares and a majority of the outstanding shares.  The corporation may redeem the control shares if the acquiring person does not request restoration of voting rights.  Subchapter H of Chapter 25 of the BCL requires the disgorgement of profits realized from the disposition of certain stock occurring 18 months after a person or group becomes a “controlling person” or group (as defined in the BCL).  Subchapter I of Chapter 25 of the BCL mandates severance compensation for eligible employees whose employment is terminated within a certain period following a restoration of voting rights to control shares under Subchapter G of Chapter 25.  We have opted out of the provisions contained in Subchapters G, H and I of Chapter 25 of the BCL.
Notes
General
The following is a description of the material terms and conditions of our (i) 0.625% Senior Notes due 2023 (the “2023 Notes”), (ii) 0.250% Senior Notes due 2028 (the “2028 Notes”) and (iii) 0.625% Senior Notes due 2032 (the “2032 Notes” and, collectively with the 2023 Notes and the 2028 Notes, the “Notes”).  Each series of Notes has been issued under an Indenture which we entered into with The Bank of New York Mellon Trust Company, N.A., formerly known as The Bank of New York Trust Company, N.A., as trustee (the “Trustee”), on October 15, 2007 (the “Base Indenture”), as supplemented by the third supplemental indenture, in the case of the 2023 Notes, which we entered into with the Trustee, as trustee, and The Bank of New York Mellon, London Branch, as paying agent on September 20, 2016 (the “Third Supplemental Indenture”), and as supplemented by the fourth supplemental indenture, in the case of the 2028 Notes and the 2032 Notes, which we entered into with the Trustee, as trustee, and The Bank of New York Mellon, London Branch, as paying agent on February 25, 2020 (the “Fourth Supplemental Indenture” and, together with the Third Supplemental Indenture, the “Supplemental Indentures” and, together with the Base Indenture, the “Indenture”), and are our unsecured obligations.  As of March 28, 2020, there were $939.7 million aggregate principal amount of the 2023 Notes outstanding,$547.6 million aggregate principal amount of the 2028 Notes outstanding and $543.2 million aggregate principal amount of the 2032 Notes outstanding.  Capitalized terms used but not defined in this section have the meanings assigned in the Base Indenture or the applicable Supplemental Indenture.
We have summarized certain portions of the Indenture below.  The summary is not complete.  The Base Indenture and the Supplemental Indentures are filed as exhibits to our most recent Annual Report on Form 10-K. Holders should read the Base Indenture and the Supplemental Indentures for the provisions that are important to them. The Indenture is subject to and governed by the Trust Indenture Act of 1939, as amended, and the laws of the State of New York.  We have also included references in parentheses to certain sections of the Base Indenture.  Because this section is a summary, it does not describe every aspect of each series of Notes.  This summary is subject to and qualified in its entirety by reference to all the provisions of the Base Indenture, the Third Supplemental Indenture and the Fourth Supplemental Indenture, including definitions of certain terms used in the Indenture.

Ranking
The Notes are not secured by any of our property or assets.  Accordingly, holders are unsecured creditors of the Company.  The Notes are not subordinated to any of the Company’s other debt obligations and therefore rank equally with all of the Company’s other unsecured and unsubordinated indebtedness.
The Notes effectively rank junior to any of our existing and future secured indebtedness to the extent of the assets securing such indebtedness, and are structurally subordinated to any existing or future indebtedness and liabilities of our subsidiaries, none of which guarantee the Notes.  Indebtedness of our subsidiaries and obligations and liabilities 

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of our subsidiaries are structurally senior to the Notes since, in the event of a bankruptcy, liquidation, dissolution, reorganization or other winding up, the assets of our subsidiaries will be available to pay the Notes only after the subsidiaries’ indebtedness and other obligations and liabilities are paid in full.  If that happens, we may not have sufficient assets remaining to pay the amounts due on any or all of the applicable series of Notes then outstanding.  The Indenture does not limit our ability or the ability of any of our subsidiaries to issue additional debt.
As of March 28, 2020, we had total outstanding indebtedness of $3.8 billion, and an additional $1.0 billion of unutilized capacity under our senior unsecured revolving line of credit, after giving effect to outstanding commercial paper borrowings of $215.0 million and standby letters of credit of $18.4 million.
The Indenture does not limit the incurrence of indebtedness by the Company or any of its subsidiaries.  The Company and its subsidiaries may be able to incur substantial amounts of additional indebtedness in certain circumstances.  Such indebtedness may be senior indebtedness and, subject to certain limitations, may be secured.  See “-Covenants-Restrictions on Mortgages and Other Liens” below.  The Notes of each series are effectively subordinated to all of our existing and future secured debt and structurally subordinated to all existing and future liabilities of our subsidiaries.  This may affect the ability of holders to receive payments on the applicable series of Notes.
Principal, Maturity and Interest
The Notes are our general, unsecured obligations.  We issued each series of Notes in minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof.  We limited the initial aggregate principal amount of the 2023 Notes to €850,000,000, the 2028 Notes to €500,000,000 and the 2032 Notes to €500,000,000.  However, the Indenture does not limit the aggregate principal amount of Notes of each series that we may issue, and we may issue additional notes of each series in amounts that exceed the initial amount at any time having identical terms and conditions as the applicable series of Notes, other than the date of issuance and, under certain circumstances, the first interest payment date and the date from which interest thereon will begin to accrue, without holder consent and without notifying holders; provided, however, that, if such additional notes are not fungible with the applicable series of Notes for U.S. federal income tax purposes, such additional notes will have one or more separate CUSIP numbers, ISINs and/or Common Codes from such series of Notes.  Under the Indenture, the Notes of each series and any such additional notes we may issue will be treated as a single series for all purposes under the Indenture, including waivers, amendments, redemptions and offers to purchase.  We also may, without the consent of the holders, issue other series of debt securities under the Indenture in the future on terms and conditions different from each series of the Notes.
The 2023 Notes will mature on September 20, 2023, the 2028 Notes will mature on February 25, 2028 and the 2032 Notes will mature on February 25, 2032, unless redeemed in whole or in part as described below under “-Optional Redemption.”  The Notes of each series are not be subject to any mandatory redemption or sinking fund payments.
We may at any time and from time to time acquire each series of Notes by means other than a redemption, whether by tender offer, open market purchases, negotiated transactions or otherwise, in accordance with applicable securities laws, so long as such acquisition does not otherwise violate the terms of the Indenture.
The 2023 Notes bear interest at the rate of 0.625% per annum from September 20, 2016, payable annually in arrears on September 20 of each year, commencing September 20, 2017, to the persons in whose names the 2023 Notes are registered at the close of business on the business day next preceding the relevant interest payment date, or in the event the 2023 Notes cease to be held in the form of one or more global notes, at the close of business on the September 5 immediately prior to that interest payment date, whether or not a business day.  The 2028 Notes bear interest at the rate of 0.250% per annum from February 25, 2020, payable annually in arrears on February 25 of each year, commencing February 25, 2021, to the persons in whose names the 2028 Notes are registered at the close of business on the business day next preceding the relevant interest payment date, or in the event the 2028 Notes cease to be held in the form of one or more global notes, at the close of business on the February 10 immediately prior to that interest payment date, whether or not a business day.  The 2032 Notes bear interest at the rate of 0.625% per annum from February 25, 2020, payable annually in arrears on February 25 of each year, commencing February 25, 2021, to the persons in whose names the 2032 Notes are registered at the close of business on the business day next preceding the relevant interest payment date, or in the event the 2032 Notes cease to be held in the form of one or more global notes, at the close of business 

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on the February 10 immediately prior to that interest payment date, whether or not a business day.  Interest on each series of Notes is computed on the basis of the actual number of days in the period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the applicable series of Notes, to but excluding the next scheduled interest payment date.  This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association.
We pay the principal of and interest on each Note of each series to the registered holder in euros in immediately available funds.  Notwithstanding anything to the contrary in this summary, so long as the Notes of each series are in book-entry form, we will make payments of principal and interest through the paying agent.
Issuance in Euro; Payments on the Notes
Initial holders were required to pay for the applicable series of Notes in euro, and all payments of principal of, the redemption price (if any), the repurchase price upon a Change of Control Repurchase Event (as defined below, if any), and interest and additional amounts (as defined below, if any), on the applicable series of Notes, will be payable in euros, provided, that if on or after the original issue date of the applicable series of Notes, the euro is unavailable to us due to the imposition of exchange controls or other circumstances beyond our control or if the euro is no longer being used by the then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the applicable series of Notes will be made in U.S. dollars until the euro is again available to us or so used.  In such circumstances, the amount payable on any date in euro with respect to the applicable series of Notes will be converted into U.S. dollars at the rate mandated by the U.S. Federal Reserve Board as of the close of business on the second business day prior to the relevant payment date or, in the event the U.S. Federal Reserve Board has not mandated a rate of conversion, on the basis of the then most recent U.S. dollar/euro exchange rate available on or prior to the second business day prior to the relevant payment date as determined by us in our sole discretion.  Any payment in respect of the applicable series of Notes so made in U.S. dollars will not constitute an event of default under the applicable series of Notes or the Indenture.  Neither the trustee nor the paying agent shall have any responsibility for any calculation or conversion in connection with the foregoing.  Any references in this summary to payments being made in euros notwithstanding, payments shall be made in U.S. dollars to the extent set forth under this heading “-Issuance in Euro; Payments on the Notes.”
The March 27, 2020 closing euro/U.S. dollar exchange rate was €1.00 = U.S. $1.1098, as published by Bloomberg L.P.  Holders are subject to foreign exchange risks as to payments of principal and interest that may have important economic and tax consequences to them.
Listing
The Notes are listed on The New York Stock Exchange.  We have no obligation to maintain such listing, and we may delist any series of Notes at any time.
Paying Agent and Registrar
The Bank of New York Mellon, London Branch, acts as paying agent for the Notes.  The Bank of New York Mellon Trust Company, N.A. acts as registrar for the Notes.  Upon notice to the Trustee, we may change any paying agent or registrar.
Business Day
The term “business day” means any day, other than a Saturday or Sunday, (1) which is not a day on which banking institutions in the City of New York or London are authorized or required by law, regulation or executive order to close and (2) for any payments to be made under the Indenture, such day shall also be a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer payment system is open for the settlement of payments.

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Optional Redemption
We may redeem any series of Notes in whole or in part at any time.  If the 2023 Notes are redeemed before June 20, 2023, if the 2028 Notes are redeemed before December 25, 2027 or if the 2032 Notes are redeemed before November 25, 2031 (in each case, the date three months prior to the maturity date of the applicable series of Notes (the “Make Whole Call Date”)), the redemption price will equal the greater of:
		
	•
	100% of the principal amount being redeemed; and

		
	•
	the sum calculated by the Company of the present value of the remaining scheduled payments of principal and interest on the applicable series of Notes to be redeemed if such series of Notes matured on the applicable Make Whole Call Date (excluding any portion of such payments of interest accrued as of the date of redemption), discounted to the date of redemption on an annual basis (assuming ACTUAL/ACTUAL (ICMA)) at the applicable Comparable Government Bond Rate (as defined below), plus 15 basis points (with respect to the 2023 Notes and the 2028 Notes) or 20 basis points (with respect to the 2032 Notes), plus, in each case, accrued and unpaid interest, to, but excluding, the date of redemption.

If the applicable series of Notes are redeemed on or after the applicable Make Whole Call Date, the redemption price for the Notes of such series will equal 100% of the principal amount of the Notes of such series then outstanding to be redeemed.  The redemption price for the Notes of such series will include accrued interest on the Notes of such series being redeemed, to, but excluding, the date of redemption.
Installments of interest on the applicable series of Notes being redeemed that are due and payable on interest payment dates falling on or prior to a redemption date shall be payable on the interest payment date to the holders as of the close of business on the relevant regular record date according to the applicable Notes and the Indenture.
Notice of any redemption will be mailed (or delivered by electronic transmission in accordance with the applicable procedures of Euroclear and Clearstream) at least 30 days but not more than 60 days before the redemption date to each holder of the applicable series of Notes to be redeemed.
Unless we default in payment of the redemption price on or after the redemption date, interest will cease to accrue on the applicable series of Notes called for redemption on the date of such redemption.
If less than all of the applicable series of Notes are to be redeemed, the applicable series of Notes to be redeemed shall be selected by the trustee pro rata or by lot, or otherwise in accordance with the applicable procedures of Clearstream and Euroclear.
The Notes of each series are also subject to redemption prior to maturity if certain events occur involving U.S. taxation.  If any of these special tax events do occur, the applicable series of Notes will be redeemed at a redemption price of 100% of their principal amount plus accrued and unpaid interest to, but excluding, the date of redemption.  See “-Redemption for Taxation Reasons.”
Definitions
“Comparable Government Bond” means, in relation to any Comparable Government Bond Rate calculation, at the discretion of an independent investment bank selected by us, a German government bond whose maturity is closest to the maturity of the applicable series of Notes (assuming, for this purpose, that such series of Notes matures on the Make Whole Call Date), or if such independent investment bank in its discretion determines that such similar bond is not in issue, such other German government bond as such independent investment bank may, with the advice of three brokers of, and/or market makers in, German government bonds selected by us, determine to be appropriate for determining the Comparable Government Bond Rate.
“Comparable Government Bond Rate” means the yield-to-maturity, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards), on the third business day prior to the date fixed for redemption of the Comparable Government Bond on the basis of the middle market price of the Comparable Government Bond 

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prevailing at 11:00 a.m.  (London time) on such business day as determined by an independent investment bank selected by us.
Payment of Additional Amounts
With respect to each series of Notes, we will, subject to the exceptions and limitations set forth below, pay such additional amounts on the applicable series of Notes as are necessary in order that the net payment by us of the principal of, premium, if any, and interest on the applicable series of Notes to a beneficial owner who is not a United States person (as defined below), after withholding or deduction for any present or future tax, assessment or other governmental charge imposed by the United States or a taxing authority in the United States, will not be less than the amount provided in the applicable series of Notes to be then due and payable; provided, however, that the foregoing obligation to pay additional amounts shall not apply:
		
	(1)
	to any tax, assessment or other governmental charge that is imposed by reason of the holder of a Note (or the beneficial owner for whose benefit such holder holds such Note), or a fiduciary, settlor, beneficiary, member or shareholder of the holder if the holder is an estate, trust, partnership or corporation, or a person holding a power over an estate or trust administered by a fiduciary holder, being considered as:

		
	(a)
	having a current or former connection with the United States (other than a connection arising solely as a result of the ownership of the Notes, the receipt of any payment thereon or the enforcement of any rights under the Indenture or the Notes), including being or having been a citizen or resident of the United States, being or having been engaged in a trade or business in the United States or having or having had a permanent establishment in the United States;

		
	(b)
	being or having been a personal holding company, a passive foreign investment company or a controlled foreign corporation for United States income tax purposes or a corporation that has accumulated earnings to avoid United States federal income tax;

		
	(c)
	being or having been a “10-percent shareholder” of the Company as defined in Section 871(h)(3) of the United States Internal Revenue Code of 1986, as amended to the date hereof (the “Code”), or any successor provision; or

		
	(d)
	being a bank receiving payments on an extension of credit made pursuant to a loan agreement entered into in the ordinary course of its trade or business;

		
	(2)
	to any holder that is not the sole beneficial owner of the applicable series of Notes, or a portion of such Notes, or that is a fiduciary, partnership or limited liability company, but only to the extent that a beneficial owner with respect to the holder, a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership or limited liability company would not have been entitled to the payment of additional amounts had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the payment;

		
	(3)
	to any tax, assessment or other governmental charge that would not have been imposed but for the failure of the holder or beneficial owner of the applicable series of Notes to comply, to the extent it is legally able to do so, with certification, identification or information reporting requirements concerning the nationality, residence, identity or connection with the United States of the holder or beneficial owner of the applicable series of Notes, if compliance is requested with proper notice and required by statute, by regulation of the United States or any taxing authority therein or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from such tax, assessment or other governmental charge;

		
	(4)
	to any tax, assessment or other governmental charge that is imposed otherwise than by withholding by us or a paying agent from the payment;

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	(5)
	to any estate, inheritance, gift, sales, excise, transfer, wealth, capital gains or personal property tax or similar tax, assessment or other governmental charge;

		
	(6)
	to any tax, assessment or other governmental charge required to be withheld by any paying agent from any payment of principal of or interest on any Note of the applicable series of Notes, if such payment can be made without such withholding by presenting such Note (where presentation is required) to at least one other paying agent;

		
	(7)
	to any tax, assessment or other governmental charge that would not have been imposed but for the presentation by the holder of any Note of the applicable series of Notes, where presentation is required, for payment on a date more than 30 days after the date on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later;

		
	(8)
	to any tax, assessment or other governmental charge imposed under Sections 1471 through 1474 of the Code (or any amended or successor provisions), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such sections of the Code; or

		
	(9)
	in the case of any combination of items (1), (2), (3), (4), (5), (6), (7) and (8).

Each series of Notes are subject in all cases to any tax, fiscal or other law or regulation or administrative or judicial interpretation applicable to such Notes.  Except as specifically provided under this heading “-Payment of Additional Amounts,” we will not be required to make any payment for any tax, assessment or other governmental charge imposed by any government or a political subdivision or taxing authority of or in any government or political subdivision.
As used under this heading “-Payment of Additional Amounts” and under the heading “-Redemption for Taxation Reasons”, the term “United States” means the United States of America, the states of the United States, and the District of Columbia, and the term “United States person” means any individual who is a citizen or resident of the United States for U.S. federal income tax purposes, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state of the United States or the District of Columbia, or any estate or trust the income of which is subject to United States federal income taxation regardless of its source.
Any references in this summary to principal, premium, interest or any other amount payable in respect of the applicable series of Notes shall be deemed to include additional amounts, as the context shall require.  If we shall be obligated to pay any additional amounts with respect to any payment under or with respect to the applicable series of Notes, we will deliver to the trustee a certificate of an officer stating that such additional amounts shall be payable and the amounts so payable and setting forth such other information as is necessary to enable the trustee or other paying agent to pay such additional amounts to the holders of such applicable series of Notes on the payment date.  We will make copies of such certificate, as well as copies of tax receipts or other documentation evidencing the payment of the associated taxes or other charges, available to the holders or beneficial owners of the applicable series of Notes upon written request.
Redemption for Taxation Reasons
If, as a result of any change in, or amendment to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any taxing authority in the United States), or any change in, or amendment to, an official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment is announced or becomes effective on or after September 13, 2016, in the case of the 2023 Notes, or February 18, 2020, in the case of the 2028 Notes and the 2032 Notes, we become or, based upon a written opinion of independent counsel selected by us, will become obligated to pay additional amounts as described herein under the heading “-Payment of Additional Amounts” with respect to any series of Notes and such obligation cannot be avoided by the use of reasonable measures available to us, then we may at any time at our option redeem, in whole, but not in part, the such series of Notes on not less than 30 nor more than 60 days prior notice, at a redemption price equal to 100% of 

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their principal amount, together with accrued and unpaid interest on such series of Notes to, but excluding, the date fixed for redemption.
Repurchase upon Change of Control Repurchase Event
If a Change of Control Repurchase Event (as defined below) occurs with respect to any series of Notes, unless we have exercised our right to redeem all the applicable series of Notes as described above, we will make an offer to each holder of the applicable series of Notes to repurchase all or any part (in integral multiples of €1,000) of that holder’s Notes of such series at a repurchase price in cash equal to 101% of the aggregate principal amount of such Notes repurchased plus any accrued and unpaid interest on such  Notes repurchased, to, but excluding, the date of repurchase.  Within 30 days following any Change of Control Repurchase Event or, at our option, prior to any Change of Control (as defined below), but after the public announcement of an impending Change of Control, we will mail (or deliver by electronic transmission in accordance with the applicable procedures of Euroclear and Clearstream) a notice to each holder, with a copy to the trustee, describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase such Notes on the payment date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (or delivered by electronic transmission in accordance with the applicable procedures of Euroclear and Clearstream).  The notice will, if mailed (or delivered by electronic transmission in accordance with the applicable procedures of Euroclear and Clearstream) prior to the date of consummation of the Change of Control, state that the offer to repurchase is conditioned on the Change of Control Repurchase Event occurring on or prior to the payment date specified in the notice.
We will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder, to the extent those laws and regulations are applicable in connection with the repurchase of the applicable series of Notes as a result of a Change of Control Repurchase Event.  To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Repurchase Event provisions of such series of Notes, we will comply with the applicable securities laws and regulations and will not be deemed to have breached our obligations under the Change of Control Repurchase Event provisions of such series of Notes by virtue of such conflict.
On the Change of Control Repurchase Event payment date with respect to a series of Notes, we will, to the extent lawful:
		
	•
	accept for payment all Notes or portions of Notes of the applicable series (in integral multiples of €1,000) properly tendered pursuant to our offer;

		
	•
	deposit with the paying agent an amount equal to the aggregate repurchase price in respect of all Notes or portions of Notes of the applicable series properly tendered; and

		
	•
	deliver or cause to be delivered to the trustee the Notes of the applicable series properly accepted, together with an officers’ certificate stating the aggregate principal amount of such Notes being purchased by us.

The trustee will promptly mail (or deliver by electronic transmission in accordance with the applicable procedures of Euroclear and Clearstream) to each holder of the applicable series of Notes properly tendered the repurchase price for such Notes, and the trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each holder a new Note of the applicable series equal in principal amount to any unpurchased portion of any Notes of the applicable series surrendered; provided, that each new Note of the applicable series will be in minimum denominations of €100,000 and integral multiples of €1,000 in excess thereof.
We will not be required to make an offer to repurchase the applicable series of Notes upon a Change of Control Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by us, and such third party purchases all Notes of the applicable series properly tendered and not withdrawn under its offer.  In addition, the Company will not be required to make an offer to repurchase the Notes of the applicable series upon a Change of Control Repurchase Event if such Notes have been or are called for redemption by the Company prior to it being required to deliver notice of the Change of Control Repurchase Event, 

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and thereafter redeems all such Notes called for redemption in accordance with the terms set forth in such redemption notice.  Notwithstanding anything to the contrary contained herein, a revocable offer to repurchase the applicable series of Notes upon a Change of Control Repurchase Event may be made in advance of a Change of Control Repurchase Event, conditioned upon the consummation of the relevant Change of Control Repurchase Event, if a definitive agreement is in place for the applicable Change of Control at the time such offer to repurchase is made.
The definition of Change of Control includes a phrase relating to the direct or indirect sale, transfer, conveyance or other disposition of “all or substantially all” of our and our subsidiaries’ properties or assets taken as a whole.  Although there is a limited body of case law interpreting the phrase “substantially all,” there is no precise established definition of this phrase under applicable law.  Accordingly, the ability of a holder of an applicable series of Notes to require us to repurchase such holder’s Notes as a result of a sale, transfer, conveyance or other disposition of less than all of our and our subsidiaries’ assets taken as a whole to another person or group may be uncertain.
Definitions
“Below Investment Grade Rating Event” means, with respect to each series of Notes, that the applicable series of Notes are rated below Investment Grade by each of the Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public notice of the occurrence of a Change of Control (which period shall be extended so long as the rating of such Notes is under publicly announced consideration for possible downgrade by any of the Rating Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Repurchase Event hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance composed of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event).
“Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of VF and its subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act), other than VF or one of its subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) becomes the beneficial owner (as such term is used in Rules 13d-3 and 13d-5 of the Exchange Act), directly or indirectly, of more than 50% of the then-outstanding number of shares of VF’s Voting Stock; (3) the consummation by VF of a consolidation with, or merger with or into, any person or entity, or the consummation by any person or entity of a consolidation with, or merger with or into, VF, in any such event pursuant to a transaction in which any of the outstanding Voting Stock of VF is converted into or exchanged for cash, securities or other property, other than any such transaction where the Voting Stock of VF outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person or entity immediately after giving effect to such transaction; or (4) the adoption of a plan relating to the liquidation or dissolution of VF.
“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating Event.
“Fitch” means Fitch Inc., and its successors or any successor to its rating agency business.
“Investment Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s); a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P); and a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch); or the equivalent investment grade credit rating from any additional Rating Agency or Rating Agencies selected by us.
“Moody’s” means Moody’s Investors Service, Inc. or any successor to its rating agency business.

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“Rating Agency” means (1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch, Moody’s or S&P ceases to rate the applicable series of Notes or fails to make a rating of such Notes publicly available for reasons outside of our control, a “nationally recognized statistical rating organization” within the meaning of Section 3(a)(62) of the Exchange Act, selected by us as a replacement agency for Fitch, Moody’s or S&P, as the case may be.
“S&P” means S&P Global Ratings, a division of S&P Global Inc. or any successor to its rating agency business.
“Voting Stock” means, with respect to any specified person, capital stock of any class or kind the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such person, even if the right so to vote has been suspended by the happening of such a contingency.
Modification and Waiver
There are three types of changes that can be made to the Indenture and the Notes of any series:
		
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	Changes requiring holder approval.  First, the consent of each affected Note holder is required to:

		
	•
	change the stated maturity of the principal or interest on a Note;

		
	•
	reduce any amounts due on a Note;

		
	•
	reduce the amount of principal payable upon acceleration of the maturity of a Note following a default;

		
	•
	change the place or currency of payment on a Note;

		
	•
	impair a holder’s right to sue for payment;

		
	•
	reduce the percentage of holders of Notes whose consent is needed to modify or amend the Indenture;

		
	•
	reduce the percentage of holders of Notes whose consent is needed to waive compliance with certain provisions of the Indenture or to waive certain defaults; or

		
	•
	modify any other aspect of the provisions dealing with modification and waiver of the Indenture.  (See Section 9.02 of the Base Indenture)

		
	•
	Changes requiring a majority vote.  The second type of change to the Indenture and the Notes requires a vote in favor by holders of Notes owning a majority of the outstanding aggregate principal amount of each series of Notes affected.  Most changes fall into this category.  A majority vote would also be required for us to obtain a waiver of all or part of the restrictive covenants described below, or a waiver of a past default.  However, we cannot obtain a waiver of a payment default or any other aspect of the Indenture or the Notes listed in the first category described above under “-Changes requiring holder approval” unless we obtain individual holder consent to the waiver.  (See Sections 5.13 and 9.02 of the Base Indenture)

		
	•
	Changes not requiring holder approval.  The third type of change does not require any vote by holders of Notes.  This type is limited to clarifications and certain other changes that would not adversely affect holders of the Notes.  (See Section 9.01 of the Base Indenture)

Notes of any series will not be considered outstanding, and therefore will not be eligible to vote on any matter, if we have deposited or set aside in trust for holders thereof money for their payment or redemption.  Notes will also not be eligible to vote if they have been fully defeased as described under “-Defeasance-Full Defeasance.”
We will generally be entitled to set any day as a record date for the purpose of determining the holders of outstanding Notes that are entitled to vote or take other action under the Indenture.  In certain limited circumstances, 

11

the trustee will be entitled to set a record date for action by holders.  If we or the trustee set a record date for a vote or other action to be taken by holders of a particular series, that vote or action may be taken only by persons who are holders of outstanding Notes of that series on the record date and must be taken within 180 days following the record date.  We may shorten or lengthen (but not beyond 180 days) this period from time to time.  (See Section 1.04 of the Base Indenture)
Covenants
In the Indenture, we agree to restrictions that limit our and our Subsidiaries’ (as defined below) ability to create liens or enter into sale and leaseback transactions.
Restrictions on Mortgages and Other Liens
We will not, nor will we permit any Subsidiary to, issue, assume or guarantee any debt secured by a Mortgage (as defined below) upon any Principal Property (as defined below) or on any shares of stock or indebtedness of any Restricted Subsidiary (as defined below) without providing that the Notes (together with, if we so determine, any other indebtedness of or guaranteed by us or such Restricted Subsidiary ranking equally with the notes then existing or thereafter created) will be secured equally and ratably with such debt, except that the foregoing restrictions do not apply to:
		
	(i)
	Mortgages on property, shares of stock or indebtedness of or guaranteed by any corporation existing at the time such corporation becomes a Restricted Subsidiary;

		
	(ii)
	Mortgages on property existing at the time of acquisition thereof, or to secure the payment of all or part of the purchase price of such property, or to secure debt incurred or guaranteed for the purpose of financing all or part of the purchase price of such property or construction or improvements thereon, which debt is incurred or guaranteed prior to, at the time of, or within 120 days after the later of such acquisition, completion of such improvements or construction, or commencement of full operation of such property;

		
	(iii)
	Mortgages securing debt owing by any Restricted Subsidiary to the Company or another Restricted Subsidiary;

		
	(iv)
	Mortgages on property of a corporation existing at the time such corporation is merged into or consolidated with us or a Restricted Subsidiary or at the time of a purchase, lease or other acquisition of the property of a corporation or firm as an entirety or substantially as an entirety by us or a Restricted Subsidiary;

		
	(v)
	Mortgages on our property or that of a Restricted Subsidiary in favor of the United States or any state or political subdivision thereof, or in favor of any other country or political subdivision thereof, to secure certain payments pursuant to any contract or statute or to secure any indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price or the cost of construction of the property subject to such Mortgages (including, but not limited to, Mortgages incurred in connection with pollution control industrial revenue bond or similar financing);

		
	(vi)
	Mortgages existing on the date of the Indenture; and

		
	(vii)
	any extension, renewal or replacement (or successive extensions, renewals or replacements), in whole or in part, of any Mortgage referred to in any of the foregoing clauses.

Notwithstanding the above, we or our Subsidiaries may, without securing the Notes, issue, assume or guarantee secured debt which would otherwise be subject to the foregoing restrictions, provided that after giving effect thereto the aggregate amount of debt which would otherwise be subject to the foregoing restrictions then outstanding (not including secured debt permitted under the foregoing exceptions) does not exceed 15% of the shareholders’ equity of the Company and its consolidated Subsidiaries as of the end of the previous fiscal year.  (See Section 10.08 of the Base Indenture)

12

Restrictions on Sale and Leaseback Transactions
Sale and leaseback transactions by us or any Restricted Subsidiary of any Principal Property (whether now owned or hereafter acquired) are prohibited unless:
		
	(i)
	the Company or such Restricted Subsidiary would be entitled under the Indenture to issue, assume or guarantee debt secured by a Mortgage upon such Principal Property at least equal in amount to the Attributable Debt (as defined below) in respect of such transaction without equally and ratably securing the Notes, provided that such Attributable Debt shall thereupon be deemed to be debt subject to the provisions described above under “-Restrictions on Mortgages and Other Liens,” or

		
	(ii)
	the Company applies, within 90 days of the effective date of such sale and leaseback transaction, an amount in cash equal to such Attributable Debt to the retirement (other than mandatory retirement or by way of payment at maturity) of non-subordinated debt of the Company or a Restricted Subsidiary which by its terms matures at, or is extendable or renewable at the sole option of the obligor without requiring the consent of the obligee, to a date more than twelve months after the date of the creation of such debt.  (See Section 10.09 of the Base Indenture)

The restrictions described above do not apply to:
		
	(i)
	such transactions involving leases with a term of up to three years,

		
	(ii)
	leases between the Company and a Restricted Subsidiary or between Restricted Subsidiaries, or

		
	(iii)
	leases of any Principal Property entered into within 120 days after the later of the acquisition, completion of construction or commencement of full operation of such Principal Property.

Definitions
“Attributable Debt” means the present value (discounted at the rate of interest implicit in the terms of the lease) of the obligation of a lessee for net rental payments during the remaining term of any lease (including any period for which such lease has been extended or may, at the option of the lessor, be extended).
“Mortgage” means any mortgage, pledge, lien or other encumbrance.
“Principal Property” means any manufacturing plant or facility located within the United States (other than its territories and possessions) owned by the Company or any Subsidiary, except any such plant or facility which, in the opinion of the board of directors of the Company, is not of material importance to the business conducted by the Company and its Subsidiaries, taken as a whole.
“Restricted Subsidiary” means a Subsidiary which owns or leases any Principal Property.
“Subsidiary” means any corporation, partnership or other legal entity of which, in the case of a corporation, more than 50% of the outstanding voting stock is owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries or, in the case of any partnership or other legal entity, more than 50% of the ordinary equity capital interests is directly or indirectly owned or controlled by the Company or by one or more other Subsidiaries or by the Company and one or more other Subsidiaries.
(See Section 1.01 of the Base Indenture)

13

Mergers and Similar Events
We may not consolidate with or merge into any other person (as defined in Section 1.01 of the Base Indenture) or convey, transfer or lease our properties and assets substantially as an entirety, unless:
		
	(i)
	the successor person is a corporation, partnership or trust organized and validly existing under the laws of the United States of America, any state thereof or the District of Columbia, and expressly assumes our obligations on the Notes and under the Indenture;

		
	(ii)
	immediately after giving effect to such transaction, no event of default, and no event which, after notice or lapse of time or both, would become an event of default, would occur and be continuing; and

		
	(iii)
	after giving effect to such transaction, neither we nor the successor person, as the case may be, would have outstanding indebtedness secured by any mortgage or other encumbrance prohibited by the provisions of our restrictive covenant relating to liens or, if so, shall have secured the Notes equally and ratably with (or prior to) any indebtedness secured thereby.  (See Section 8.01 of the Base Indenture)

Defeasance
Full Defeasance
If there is a change in U.S. federal income tax law or an Internal Revenue Service ruling, as described below, we can legally release ourselves from any payment or other obligations on the Notes of any series (this is called “full defeasance”) if, among other things:
		
	•
	we deposit in trust for the benefit of all direct holders of the Notes cash in euros or euro-denominated European Government Obligations (defined below) or a combination thereof that, in the opinion of a nationally recognized firm of independent public accountants, will generate enough cash to make interest, principal and any other payments on the Notes as such payments become due;

		
	•
	there is a change in U.S. federal income tax law or an Internal Revenue Service ruling that permits us to make the above deposit without causing the beneficial owners of the Notes to be taxed on the Notes any differently than if we did not make the deposit and simply repaid the Notes; and

		
	•
	we deliver to the trustee a legal opinion of our counsel confirming the tax law change described above.

If we accomplish full defeasance, holders would have to rely solely on the trust deposit for all payments on the Notes.  Holders could not look to us for payment in the event of any shortfall.  Conversely, the trust deposit would most likely be protected from claims of our lenders and other creditors if we became bankrupt or insolvent.  (See Sections 13.02 and 13.04 of the Base Indenture)
Covenant Defeasance
Under current U.S. federal income tax law, if we make the type of trust deposit described above, we can be released from some of the restrictive covenants in the Indenture.  This is called “covenant defeasance.”  In that event, holders would lose the benefit of those restrictive covenants but would gain the protection of having cash in euros or euro-denominated European Government Obligations or a combination thereof set aside in trust to repay the Notes of any series.  In order to achieve covenant defeasance, we must:
		
	•
	deposit in trust for the benefit of all direct holders of the Notes cash in euros or euro-denominated European Government Obligations or a combination thereof that, in the opinion of a nationally recognized firm of independent public accountants, will generate enough cash to make interest, principal and any other payments on the Notes as such payments become due; and

14

		
	•
	deliver to the trustee a legal opinion of our counsel confirming that under current U.S. federal income tax law we may make the above deposit without causing the beneficial owners of the Notes to be taxed on the notes any differently than if we did not make the deposit and simply repaid the notes.

If we accomplish covenant defeasance, the following provisions of the Indenture and the Notes would no longer apply:
		
	•
	our obligations regarding the conduct of our business described above under “-Covenants,” and any other covenants applicable to the Notes described in this summary;

		
	•
	the conditions to our engaging in a merger or similar transaction, as described above under “-Covenants-Mergers and Similar Events”; and

		
	•
	the events of default relating to breaches of covenants, certain events in bankruptcy, insolvency or reorganization, and acceleration of the maturity of other debt, described below under “-Events of Default.”

If we accomplish covenant defeasance, holders can still look to us for repayment of the Notes in the event of a shortfall in the trust deposit.  In fact, if one of the remaining events of default occurred (such as our bankruptcy) and the Notes become immediately due and payable, such a shortfall could arise.  Depending on the event causing the default, holders may not be able to obtain payment of the shortfall.  (See Sections 13.03 and 13.04 of the Base Indenture)
“European Government Obligations” means any security that is (1) a direct obligation of the Federal Republic of Germany or any country that is a member of the European Monetary Union whose long-term debt is rated “A-1” or higher by Moody’s or “A+” or higher by S&P or the equivalent rating category of another internationally recognized rating agency on the date of the Indenture, for the payment of which the full faith and credit of the Federal Republic of Germany or such country, respectively, is pledged or (2) an obligation of a person controlled or supervised by and acting as an agency or instrumentality of the Federal Republic of Germany or any such country the payment of which is unconditionally guaranteed as a full faith and credit obligation by the Federal Republic of Germany or such country, respectively, which, in either case under the preceding clause (1) or (2), is not callable or redeemable at the option of the issuer thereof.
Events of Default
Holders will have special rights if an event of default occurs and is not cured, as described later in this subsection.  The term “event of default” means any of the following:
		
	•
	we do not pay interest on a Note within 30 days of its due date;

		
	•
	we do not pay the principal or any premium on a Note on its due date;

		
	•
	we remain in breach of a restrictive covenant or any other term of the Indenture for 60 days after we receive a notice of default stating we are in breach.  The notice must be sent by the trustee or holders of 10% of the outstanding aggregate principal amount of the Notes;

		
	•
	we default under any other indebtedness having an aggregate principal amount outstanding of $100,000,000 or more in the aggregate, our obligation to repay is accelerated, and this repayment obligation remains accelerated for ten days after we receive a notice of default under the Notes as described in the previous bullet point; or

		
	•
	we file for bankruptcy or certain other events of bankruptcy, insolvency or reorganization occur.  (See Section 3.01 of the Base Indenture)

15

Remedies if an Event of Default Occurs
If an event of default has occurred and has not been cured, the trustee or the holders of 25% in outstanding aggregate principal amount of the Notes may declare the entire principal amount of all the Notes to be due and immediately payable.  This is called a “declaration of acceleration of maturity.”  If an event of default occurs because of certain events of bankruptcy, insolvency or reorganization, the principal amount of all outstanding Notes will be automatically accelerated, without any action by the trustee or any holder.  A declaration of acceleration of maturity may be canceled by the holders of a majority in aggregate outstanding principal amount of the Notes.  (See Section 5.02 of the Base Indenture)
Except in cases of an event of default, where the trustee has some special duties, the trustee is not required to take any action under the Indenture at the request of any holders unless the holders offer the trustee reasonable protection from expenses and liability (an “indemnity”).  If reasonable indemnity is provided, the holders of a majority in aggregate principal amount of the outstanding Notes may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the trustee.  These majority holders may also direct the trustee in performing any other action under the Indenture.  (See Sections 6.03 and 5.12 of the Base Indenture)
Before a holder bypasses the trustee and brings the holder’s own lawsuit or other formal legal action or take other steps to enforce the holder’s rights or protect the holder’s interests relating to the Notes, the following must occur:
		
	•
	the holder must give the trustee written notice that an event of default has occurred and remains uncured;

		
	•
	the holders of 25% in aggregate principal amount of all the outstanding Notes must make a written request that the trustee take action because of the default, and must offer reasonable indemnity to the trustee against the cost and other liabilities of taking that action;

		
	•
	the holders of a majority in aggregate principal amount of all the outstanding Notes must not have given the trustee any direction inconsistent with that request; and

		
	•
	the trustee must have not taken action for 60 days after the receipt of the above notice and offer of indemnity.  (See Section 5.07 of the Base Indenture)

A holder is, however, entitled at any time to bring a lawsuit for the payment of amounts due on the holder’s Notes on or after the relevant due date.  (See Section 5.08 of the Base Indenture)
The trustee, within 90 days after the occurrence of a default (meaning the events specified above without grace periods) with respect to the Notes, will give to the holders of the Notes notice of all uncured defaults known to it, provided that, except in the case of default in the payment of principal of (or premium, if any) or interest, if any, on any Note, or in the deposit of any sinking fund payment with respect to any Notes, the trustee will be protected in withholding such notice if it in good faith determines that the withholding of such notice is in the interest of the holders of the Notes.  (See Section 6.02 of the Base Indenture)
We furnish to the trustee every year a written statement of certain of our officers certifying that to their knowledge we are in compliance with the Indenture and the Notes, or specifying the nature of any default.  We will also notify the trustee if we become aware of the occurrence of any default and the steps to cure such default.  (See Section 10.04 of the Base Indenture)
Book-Entry System; Delivery and Form; Global Note
The Notes of each series were issued in the form of one or more fully registered global notes deposited with, or on behalf of, a common depositary, and registered in the name of the nominee of the common depositary for the accounts of Clearstream and Euroclear.  Except under the circumstance described below, the global notes may be transferred, in whole and not in part, only to Euroclear or Clearstream or their respective nominees.  A holder may hold the holder’s interests in the global notes in Europe through Clearstream or Euroclear, either as a participant in such 

16

systems or indirectly through organizations which are participants in such systems.  Clearstream and Euroclear hold interests in the global notes on behalf of their respective participating organizations or customers through customers’ securities accounts in Clearstream’s or Euroclear’s names on the books of their respective depositaries.  Book-entry interests in the Notes and all transfers relating to the Notes are reflected in the book-entry records of Clearstream and Euroclear.
Any secondary market trading of book-entry interests in the Notes takes place through Clearstream and Euroclear participants and settles in same-day funds.  Owners of book-entry interests in the Notes receive payments relating to their Notes in euro, except as described in this summary under “-Issuance in Euro; Payments on the Notes.”
Clearstream and Euroclear have established electronic securities and payment transfer, processing, depositary and custodial links among themselves and others, either directly or through custodians and depositaries.  These links allow the Notes to be issued, held and transferred among the clearing systems without the physical transfer of certificates.  Special procedures to facilitate clearance and settlement have been established among these clearing systems to trade securities across borders in the secondary market.
The policies of Clearstream and Euroclear govern payments, transfers, exchanges and other matters relating to a holder’s interest in the Notes held by the holder.  We have no responsibility for any aspect of the records kept by Clearstream or Euroclear or any of their direct or indirect participants.  We also do not supervise these systems in any way.
Clearstream and Euroclear and their participants perform these clearance and settlement functions under agreements they have made with one another or with their customers.  Holders should be aware that they are not obligated to perform or continue to perform these procedures and may modify them or discontinue them at any time.
Except as provided below, owners of beneficial interests in the Notes are not entitled to have the Notes registered in their names, will not receive or be entitled to receive physical delivery of the Notes in definitive form and will not be considered the owners or holders of the Notes under the Indenture, including for purposes of receiving any reports delivered by us or the trustee pursuant to the Indenture.  Accordingly, each person owning a beneficial interest in a Note must rely on the procedures of the depositary and, if such person is not a participant, on the procedures of the participant through which such person owns its interest, in order to exercise any rights of a holder of notes.
We have been advised by Clearstream and Euroclear, respectively, as follows:
Clearstream.  Clearstream is incorporated under the laws of Luxembourg as a professional depositary.  Clearstream holds securities for its participating organizations (“Clearstream Participants”) and facilitates the clearance and settlement of securities transactions between Clearstream Participants through electronic book-entry changes in accounts of Clearstream Participants, thereby eliminating the need for physical movement of certificates.  Clearstream provides Clearstream Participants with, among other things, services for safekeeping, administration, clearance and establishment of internationally traded securities and securities lending and borrowing.  Clearstream interfaces with domestic markets in several countries.  As a professional depositary, Clearstream is subject to regulation by the Luxembourg Commission for the Supervision of the Financial Sector (Commission de Surveillance du Secteur Financier).  Clearstream Participants are recognized financial institutions around the world, including underwriters, securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations, and may include the underwriters.  Indirect access to Clearstream is also available to others, such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a Clearstream Participant either directly or indirectly.
Distributions with respect to Notes held beneficially through Clearstream are credited to cash accounts of Clearstream Participants in accordance with its rules and procedures.
Euroclear.  Euroclear was created in 1968 to hold securities for participants of Euroclear (“Euroclear Participants”) and to clear and settle transactions between Euroclear Participants through simultaneous electronic book-entry delivery against payment, thereby eliminating the need for physical movement of certificates and any risk from lack of simultaneous transfers of securities and cash.  Euroclear includes various other services, including securities 

17

lending and borrowing and interfaces with domestic markets in several markets in several countries.  Euroclear is operated by Euroclear Bank S.A./N.V.  (the “Euroclear Operator”), under contract with Euroclear Clearance Systems S.C., a Belgian cooperative corporation (the “Cooperative”).  All operations are conducted by the Euroclear Operator, and all Euroclear securities clearance accounts and Euroclear cash accounts are accounts with the Euroclear Operator, not the Cooperative.  The Cooperative establishes policy for Euroclear on behalf of Euroclear Participants.  Euroclear Participants include banks (including central banks), securities brokers and dealers and other professional financial intermediaries and may include the underwriters.  Indirect access to Euroclear is also available to other firms that clear through or maintain a custodial relationship with a Euroclear Participant, either directly or indirectly.
The Terms and Conditions Governing Use of Euroclear and the related Operating Procedures of the Euroclear System, or the Euroclear Terms and Conditions, and applicable Belgian law govern securities clearance accounts and cash accounts with the Euroclear Operator.  Specifically, these terms and conditions govern:
		
	•
	transfers of securities and cash within Euroclear;

		
	•
	withdrawal of securities and cash from Euroclear; and

		
	•
	receipt of payments with respect to securities in Euroclear.

All securities in Euroclear are held on a fungible basis without attribution of specific certificates to specific securities clearance accounts.  The Euroclear Operator acts under the terms and conditions only on behalf of Euroclear Participants and has no record of or relationship with persons holding securities through Euroclear Participants.  Distributions with respect to interests in the Notes held beneficially through Euroclear will be credited to the cash accounts of Euroclear Participants in accordance with the Euroclear Terms and Conditions.
The information in this section concerning Clearstream and Euroclear’s respective book-entry systems has been obtained from sources that we believe to be reliable, but we take no responsibility for the accuracy of this information.
Clearance and Settlement Procedures.  We understand that investors that hold their Notes through Clearstream or Euroclear accounts will follow the settlement procedures that are applicable to conventional eurobonds in registered form.  Notes will be credited to the securities custody accounts of Clearstream and Euroclear participants on the business day following the settlement date, for value on the settlement date.  They will be credited either free of payment or against payment for value on the settlement date.
We understand that secondary market trading between Clearstream and/or Euroclear participants will occur in the ordinary way following the applicable rules and operating procedures of Clearstream and Euroclear.  Secondary market trading will be settled using procedures applicable to conventional eurobonds in registered form.
Holders should be aware that holders will only be able to make and receive deliveries, payments and other communications involving the Notes through Clearstream and Euroclear on the days when those clearing systems are open for business.  Those systems may not be open for business on days when banks, brokers and other institutions are open for business in the United States.
In addition, because of time-zone differences, there may be problems with completing transactions involving Clearstream and Euroclear on the same business day as in the United States.  U.S. investors who wish to transfer their interests in the Notes, or to make or receive a payment or delivery of the Notes, on a particular day, may find that the transactions will not be performed until the next business day in Luxembourg or Brussels, depending on whether Clearstream or Euroclear is used.
Clearstream or Euroclear will credit payments to the cash accounts of Clearstream Participants or Euroclear Participants, as applicable, in accordance with the relevant system’s rules and procedures, to the extent received by its depositary.  Clearstream or the Euroclear Operator, as the case may be, will take any other action permitted to be taken by a holder under the Indenture on behalf of a Clearstream Participant or Euroclear Participant only in accordance with its relevant rules and procedures.

18

Clearstream and Euroclear have agreed to the foregoing procedures in order to facilitate transfers of the Notes among participants of Clearstream and Euroclear.  However, they are under no obligation to perform or continue to perform those procedures, and they may discontinue those procedures at any time.
Certificated Notes
If,
		
	•
	Clearstream or Euroclear is no longer willing or able to discharge its responsibilities properly, and neither the trustee nor we have approved a qualified successor within 90 days; or

		
	•
	upon the request of a holder upon the occurrence and continuance of an event of default with respect to the Notes entitling the holders to accelerate the maturity thereof,

we will issue Notes in definitive form in authorized denominations in exchange for, all or part, as the case may be, the registered global note that had been held by the depositary.  Any Notes issued in definitive form in exchange for a registered global note will be registered in the name or names that the depositary gives to the trustee or relevant agent of ours or the trustee.  It is expected that the depositary’s instructions will be based upon directions received by the depositary from participants with respect to ownership of beneficial interests in the registered global note that had been held by the depositary.  In addition, we may at any time determine in our discretion that the Notes shall no longer be represented by a global note, in which case we will issue Notes in definitive form in exchange for such global note pursuant to the procedure described above.
Regarding the Trustee
The trustee’s current address is The Bank of New York Mellon Trust Company, N.A., 10161 Centurion Parkway, Jacksonville, Florida 32256.
The Indenture provides that, except during the continuance of an event of default, the trustee will perform only such duties as are specifically set forth in the Indenture.  During the existence of an event of default, the trustee will exercise such rights and powers vested in its exercise as a prudent person would exercise under the circumstances in the conduct of such person’s own affairs.  (See Section 6.01 of the Base Indenture)
The Indenture and provisions of the Trust Indenture Act incorporated by reference therein contain limitations on the rights of the trustee, should it become a creditor of the company, to obtain payment of claims in certain cases or to realize on certain property received by it in respect of any such claim as security or otherwise.  The trustee is permitted to engage in other transactions with the Company or any affiliate.  If it acquires any conflicting interest (as defined in the Indenture or in the Trust Indenture Act), it must eliminate such conflict or resign.  (See Sections 6.08 and 6.13 of the Base Indenture)

19

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