Document:

luxferuipupdatedmarch201

                             LUXFER HOLDINGS PLC                   LONG-TERM UMBRELLA INCENTIVE PLAN      1.    Purpose of the Plan         The purpose of the Plan is to attract and retain high-quality senior employees in an  environment where compensation levels are based on global market practice, to align rewards of  employees with returns to shareholders and to reward the achievement of business targets and  key strategic objectives.  The Plan is designed to serve these goals by providing such employees  with a proprietary interest in pursuing the long-term growth, profitability and financial success of  the Company.  Award grants are intended to be determined annually, but may be made on other  occasions, such as recruitments.    2.    Definitions         As used in the Plan or in any instrument governing the terms of any Award, unless stated  otherwise, the following definitions apply to the terms indicated below:         (a)    “Award” means any Option, Stock Appreciation Right, Restricted Stock,  Restricted Stock Unit, or Other Stock Based Award, or Cash Incentive Award granted to a  Participant pursuant to the Plan.         (b)   “Award Agreement” means any written agreement, contract or other instrument  or document evidencing an Award.         (c)   “Beneficiary” means a person designated in writing by the Participant to receive  any amounts due to the Participant hereunder in the event of the Participant’s death or, absent  any such designation, the Participant’s estate.  Such designation, if any, must be on file with the  Company prior to the Participant’s death.         (d)   “Board” means the Board of Directors of Luxfer.         (e)   “Cash Incentive Award” means an award granted pursuant to Section 9 of the  Plan.         (f)   “Cause” means (i) if the Participant is a party to an employment agreement with  the Company and such agreement provides for a definition of Cause or the grounds for summary  dismissal, the definition of Cause contained therein or such grounds for summary dismissal, as  applicable, or (ii) if no such agreement exists or if such agreement does not define Cause and  does not provide for the grounds for summary dismissal, such conduct of a Participant that  constitutes grounds for summary dismissal, as determined by the Company in its sole discretion.  For the avoidance of doubt, grounds for summary dismissal will include, without limitation, (i)  gross misconduct, gross incompetence or any other material breach of obligations to the  Company, (ii) commission of any criminal offence other than a road traffic offence or any other  offence which does not result in a custodial sentence and in the reasonable opinion of the  Company does not affect the Participant’s employment, (iii) becoming bankrupt or making any                                               

 

   formal arrangement or composition with the Participant’s creditors generally, (iv)  disqualification from being a director of any company by reason of an order made by any  competent court other than by reason of mental or physical disability; (v) engaging in any  conduct which brings the Participant or the Company into disrepute.         (g)   “Change in Control” means, unless otherwise defined in the Award Agreement,  the occurrence of any of the following after the Effective Date:  (i) any Person is or becomes the  “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of  securities of the Company representing 40% or more of the combined voting power of the  Company’s outstanding securities (other than any Person who was a “beneficial owner” of  securities of the Company representing 40% or more of the combined voting power of the  Company’s outstanding securities prior to the Effective Date); or (ii) dissolution or liquidation of  the Company; or (iii) material reconstruction or significant demerger; or (iv) individuals who  constitute the Board on the Effective Date (the “Incumbent Board”) cease for any reason to  constitute at least a majority of the members of the Board, provided that any person becoming a  director subsequent to the Effective Date whose appointment to fill a vacancy or to fill a new  Board position was approved by a vote of at least three-quarters of the directors comprising the  Incumbent Board, or whose nomination for election by the Company’s shareholders was  approved by the same nominating committee serving under an Incumbent Board, shall be, for  purposes of this clause (iv), considered as though he were a member of the Incumbent Board; or  (v) the occurrence of any of the following of which the Incumbent Board does not approve: (A)  merger or consolidation in which the Company is not the surviving corporation or (B) sale of all  or substantially all of the assets of the Company; or (vi) consummation of a plan of  reorganization, merger or consolidation of the Company with one or more corporations as a  result of which the outstanding shares of the class of securities then subject to the plan of  reorganization are exchanged or converted into cash or property or securities not issued by the  Company, which was approved by shareholders pursuant to a proxy statement soliciting proxies  from shareholders of the Company, by someone other than the then current management of the  Company.           (h)   “Code” means the United States Internal Revenue Code of 1986, as amended  from time to time, and all regulations, interpretations and administrative guidance issued  thereunder.         (i)   “Committee” means the Remuneration Committee of the Board or such other  committee as the Board shall appoint from time to time to administer the Plan and to otherwise  exercise and perform the authority and functions assigned to the Committee under the terms of  the Plan.         (j)   “Company” means Luxfer and all of its Subsidiaries, collectively.         (k)   “Director EIP” means the Luxfer Non-Executive Directors Equity Incentive Plan,  as it may be amended from time to time.         (l)   “Disability” means any physical or mental impairment which qualifies a  Participant for (i) disability benefits under any long-term disability plan maintained by the  Company, (ii) workers’ compensation total disability benefits, (iii) Social Security disability                                        2       

 

   benefits, or (iv) as otherwise determined by the Board.  For purposes of the Plan, a Participant’s  employment shall be deemed to have terminated as a result of Disability on the date as of which  he or she is first entitled to receive disability benefits under such policy, law or regulation or  such other date as the Committee shall determine in its sole discretion; provided that with respect  to any Award that is subject to Section 409A of the Code, if such Award provides for any  payment or distribution upon a Participant’s (i) Disability, then “Disability” shall have the  meaning given to such term in Section 1.409A-3(i)(4) of the Treasury Regulations or  (ii) termination of employment as a result of Disability, then such Participant’s employment shall  be deemed to have terminated as a result of Disability on the date on which such Participant  experiences a separation from service within the meaning of Section 409A of the Code and  regulations promulgated thereunder.          (m)   “Effective Date” means October 2, 2012.         (n)   “Exchange Act” means the United States Securities Exchange Act of 1934, as  amended from time to time.         (o)   “Executive Officers” shall mean the Chief Executive Officer, the Chief Financial  Officer, Corporate Secretary and other members of the Executive Leadership Team of Luxfer.         (p)   “Exercise Price” means the price per Share at which a holder of an Option or a  Stock Appreciation Right may purchase Shares or exercise a Stock Appreciation Right, as  applicable.          (q)   “Fair Market Value” means, with respect to a Share, as of the applicable date of  determination (i)  (x) for purposes of Sections 3(c) and 6(a) hereof, the closing price per Share on  the trading day immediately preceding such date as reported on the New York Stock Exchange  and (y) for all other purposes, the closing price per Share on that date as reported on the New  York Stock Exchange (or if not reported,  the closing price per Share on the trading day  immediately preceding such date as reported on the New York Stock Exchange) or (ii) if not so  reported, as determined by the Committee in its sole discretion using a reasonable valuation  method taking into account, to the extent applicable,  the requirements of Section 409A of the  Code.         (r)    “Luxfer” means Luxfer Holdings PLC, incorporated in England and Wales, and  any successor thereto.         (s)   “Nonqualified Stock Option” means an Option that is not intended to meet the  requirements of Section 422 of the Code or that otherwise does not meet such requirements.         (t)   “Option” means a right granted to a Participant pursuant to Section 6 to purchase  a specified amount of Shares at an Exercise Price.         (u)   “Ordinary Shares” means Luxfer’s ordinary shares, nominal value £0.50 per  share, or any other security into which the ordinary shares shall be changed pursuant to the  adjustment provisions of Section 12 of the Plan.                                         3       

 

         (v)   “Other Stock Based Award” means an equity-based or equity-related award, other  than an Option, Stock Appreciation Right, Restricted Stock, or Restricted Stock Unit, granted to  a Participant pursuant to Section 10, including a nil or nominal cost right to acquire Shares.         (w)   “Participant” means an employee of the Company who is eligible to participate in  the Plan and to whom one or more Awards have been granted pursuant to the Plan.         (x)   “Performance-Based” means, with respect to an Award, an Award that vests, in  whole or in part, on the basis of one or more Performance Targets that are imposed on such  Award pursuant to Section 11.         (y)   “Performance Measures” means such measures as are described in Section 11 on  which Performance Targets are based in respect of Performance-Based Awards.          (z)   “Performance Percentage” means the factor determined pursuant to a  Performance Schedule that is to be applied to a Target Award and that reflects actual  performance compared to the Performance Target.         (aa)  “Performance Period” means the period of time during which the Performance  Targets must be met in order to determine the degree of payout and/or vesting with respect to a  Performance-Based Award.  Performance Periods for different Awards may be overlapping.         (bb)  “Performance Schedule” means a schedule or other objective method for  determining the applicable Performance Percentage to be applied to each Target Award.         (cc)  “Performance Target” means performance goals and objectives with respect to  Performance Measures for a Performance Period.         (dd)  “Person” means a “person” as such term is used in Section 13(d) and 14(d) of the  Exchange Act, including any “group” within the meaning of Section 13(d)(3) under the  Exchange Act.         (ee)  “Personal Data” means the name, home address, email address and telephone  number, date of birth, social security number or equivalent of a Participant, details of all rights to  acquire Shares or other securities or cash granted to the Participant and of Shares or other  securities issued or transferred or cash paid to the Participant pursuant to the Plan and any other  personal information which could identify the Participant and is necessary for the administration  of the Plan.         (ff)  “Plan” means this Luxfer Holdings PLC Long-Term Umbrella Incentive Plan, as  it may be amended from time to time.         (gg)  “Restricted Stock” means Shares awarded to a Participant pursuant to Section 7  subject to a substantial risk of forfeiture.         (hh)  “Restricted Stock Unit” means a right to receive a number of Shares subject to the  Award or the value thereof as of the specified date granted to a Participant pursuant to Section 8.                                          4       

 

         (ii)  “Securities Act” means the United States Securities Act of 1933, as amended.         (jj)  “Share” means an Ordinary Share.         (kk)  “Stock Appreciation Right” means a right granted to a Participant under Section  6.          (ll)  “Subsidiary” shall mean any entity of which a majority of the outstanding voting  shares or voting power is beneficially owned directly or indirectly by Luxfer.         (mm)  “Target Award” means a target Award determined by the Committee to be  payable upon satisfaction of any applicable Performance Targets.         (nn)  “Time-Based“ means, with respect to an Award, an Award that vests solely on the  basis of continued employment.         (oo)  “Transfer” means, with respect to any Award,  a transfer, sale, exchange,  assignment, pledge, hypothecation or other encumbrance or disposition of such Award, whether  for or without consideration.  “Transferee”, “Transferred” and “Transferability” shall have  correlative meanings.         (pp)  “U.S.” shall mean the United States of America.   3.    Term; Stock Subject to the Plan; Limitations on Individual Awards         (a)   Term of the Plan         Unless the Plan shall have been earlier terminated by the Company, Awards may be  granted under the Plan at any time in the period commencing on the Effective Date and ending  immediately prior to the tenth anniversary of the Effective Date.  Awards granted pursuant to the  Plan within that period shall not expire solely by reason of the termination of the Plan.         (b)   Stock Subject to the Plan         The maximum number of Shares that initially may be available for Awards under the  Plan and awards under the Director EIP, in the aggregate, shall be a number equal to 2,010,820,  which represents 7.4% of the outstanding share capital of Luxfer as of the Effective Date.  The  maximum referred to in the preceding sentences of this paragraph shall be subject to adjustment  as provided in Section 12.  The Board may, subject to any applicable law, from time to time  increase the maximum number of Shares that may be available for Awards under the Plan.  The  Company may satisfy its obligation to deliver Shares under the Plan in any manner permitted by  law, including without limitation, by issuing new Shares that are authorized for issuance, using  treasury shares or causing an employee benefit trust or any other trust to deliver Shares.          For purposes of the preceding paragraph, Shares covered by Awards shall only be  counted as used to the extent they are actually transferred or delivered to a Participant (or such  Participant’s permitted transferees as described in the Plan) pursuant to the Plan.  For purposes of  clarification, in accordance with the preceding sentence, if an Award is settled for cash or if                                        5       

 

   Shares are withheld to pay the Exercise Price of an Option or to satisfy any tax withholding  requirement in connection with an Award, only the shares transferred or delivered (if any), net of  the shares withheld or paid, will be deemed transferred or delivered for purposes of determining  the number of Shares that are available for transfer and delivery under the Plan or the Director  EIP.  In addition, if Shares are transferred or delivered subject to conditions which may result in  the forfeiture, cancellation or return of such Shares to the Company, any portion of the Shares  forfeited, cancelled or returned shall thereafter be treated as not transferred or delivered pursuant  to the Plan.  In addition, if Shares owned by a Participant (or such Participant’s permitted  transferees as described in the Plan) are tendered (either actually or through attestation) to the  Company in payment of any obligation in connection with an Award, the number of Shares  tendered shall be added to the number of Shares that are available for delivery under the Plan or  the Director EIP.  Shares covered by Awards granted pursuant to the Plan in connection with the  assumption, replacement, conversion or adjustment of outstanding equity-based awards in the  context of a corporate acquisition or merger (within the meaning of Section 303A.08 of the New  York Stock Exchange Listed Company Manual) shall not count as used under the Plan for  purposes of this Section 3(b).         (c)   Individual Award Limits; Valuation         Unless otherwise determined by the Committee, the maximum value of the Awards  granted under the Plan in any calendar year shall not exceed in the aggregate: (i) 220% of base  salary for the Chief Executive Officer, (ii) 150% of base salary for the Chief Financial Officer  and other members of the Executive Leadership Team of Luxfer (other than the Chief Executive  Officer), and (iii) 100% of base salary for other Participants.   For purposes of these individual  limits, the Awards shall be valued as follows: (i) Time-Based Restricted Stock and Time-Based  Restricted Stock Units shall be valued at the Fair Market Value of Shares subject to the Award  on the date of grant; (ii) Options and Stock Appreciation Rights shall be valued at one-third of  the Fair Market Value of Shares subject to the Award on the date of grant; (iii) Performance- Based Restricted Stock and Performance-Based Restricted Stock Units shall be valued at 50% of  the Fair Market Value on the date of grant of the Target Award; (iv) Cash Incentive Awards shall  be valued at the maximum cash value payable under the Award, and (v) Other Stock Based  Awards shall be valued, as determined by the Committee in good faith at the time of grant, by  reference to the Fair Market Value of Shares subject to the Award at the time of grant.   4.    Administration of the Plan         The Plan shall be administered by the Committee.  The Committee shall, consistent with  the terms of the Plan, from time to time designate those employees of the Company who shall be  granted Awards under the Plan and the amount, type and other terms and conditions of such  Awards.  The Committee, in its discretion and consistent with applicable law and regulations,  may delegate its authority and duties under the Plan to any other individual or committee as it  deems to be advisable, under any conditions and subject to any limitations that the Committee  may establish, except that the Committee may not delegate its authority with respect to  establishing the terms and conditions of Awards made to the Executive Officers of the Company.         The Committee shall have full discretionary authority to administer the Plan, including  discretionary authority to interpret and construe any and all provisions of the Plan and the terms                                        6       

 

   of any Award (and any Award Agreement) granted thereunder and to adopt and amend from  time to time such rules and regulations for the administration of the Plan as the Committee may  deem necessary or appropriate.  The employment of a Participant with the Company shall be  deemed to have terminated for all purposes of the Plan if such Participant is employed by a  Subsidiary of Luxfer and such Subsidiary ceases to be a Subsidiary of Luxfer, unless the  Committee determines otherwise.           On or after the date of grant of an Award under the Plan, the Committee may (i)  accelerate the date on which any such Award becomes vested, exercisable or transferable, as the  case may be, (ii) extend the term of any such Award, including, without limitation, extending the  period following a termination of a Participant’s employment during which any such Award may  remain outstanding, (iii) waive any conditions to the vesting, exercisability or transferability, as  the case may be, of any such Award or (iv) provide for the payment of dividends or dividend  equivalents with respect to any such Award; provided that the Committee shall not have any  such authority to the extent that the grant or exercise of such authority would cause any tax to  become due under Section 409A of the Code or any other applicable law.         Without limiting the generality of the foregoing, in order to assure the viability of  Awards granted to Participants employed in various jurisdictions, the Committee may provide  for such special terms as it may consider necessary or appropriate to accommodate differences in  local law, tax policy, or custom applicable in the jurisdiction in which the Participant resides or  is employed.  Moreover, the Committee may approve such supplements to, or amendments,  restatements, or alternative version of, the Plan as it may consider necessary or appropriate for  such purposes without thereby affecting the terms of the Plan for any other purpose.         Decisions of the Committee shall be final, binding and conclusive on all parties.         To the extent permitted by applicable law, (i) no member of the Committee shall be liable  for any action, omission, or determination relating to the Plan, and (ii) the Company shall  indemnify and hold harmless each member of the Committee and each other director or  employee of the Company to whom any duty or power relating to the administration or  interpretation of the Plan has been delegated against any cost or expense (including counsel fees)  or liability (including any sum paid in settlement of a claim with the approval of the Committee)  arising out of any action, omission or determination relating to the Plan.   5.    Eligibility; Award Agreements; Non-Transferability         (a)   The Committee shall select from time to time the employees of the Company who  are eligible to receive Awards pursuant to the Plan, including those key employees who are  largely responsible for the management, growth and protection of the business of the Company.         (b)   Employees of Subsidiaries may participate in the Plan upon approval of Awards  to such employees by the Committee.  A Subsidiary’s participation in the Plan may be  conditioned upon the Subsidiary’s agreement to reimburse Luxfer for costs and expenses of such  participation, as determined by Luxfer.  The Committee may terminate the Subsidiary’s  participation in the Plan at any time and for any reason.  If a Subsidiary’s participation in the  Plan shall terminate, such termination shall not relieve it of any obligations theretofore incurred                                         7       

 

   by it under the Plan, except with the approval of the Committee, and the Committee shall  determine, in its sole discretion, the extent to which employees of the Subsidiary may continue to  participate in the Plan with respect to previously granted Awards.  Unless the Committee  determines otherwise, a Subsidiary’s participation in the Plan shall terminate upon the  occurrence of any event that results in such entity no longer constituting a Subsidiary as defined  herein; provided, however, that such termination shall not relieve such Subsidiary of any of its  obligations to Luxfer theretofore incurred by it under the Plan, except with the approval of the  Committee.  Notwithstanding the foregoing, unless otherwise specified by the Committee, upon  any such Subsidiary ceasing to be a Subsidiary as defined herein, the Participants employed by  such Subsidiary shall be deemed to have terminated employment for purposes of the Plan.  With  respect to Awards subject to Section 409A of the Code, for purposes of determining whether a  distribution is due to a Participant, such Participant’s employment shall be deemed terminated as  described in the preceding sentence only if the Committee determines that a separation from  service (within the meaning of Section 409A of the Code and regulations promulgated  thereunder) has occurred.         (c)   Each Award granted under the Plan shall be evidenced by an Award Agreement  in form and substance approved by the Committee.  Except as otherwise determined by the  Committee, an Award may not be Transferred.     6.    Options and Stock Appreciation Rights         The Committee may from time to time grant Time-Based Options that are Nonqualified  Stock Options and Time-Based Stock Appreciation Rights, subject to the following terms and  conditions:         (a)   Evidence of Grant          The Award Agreement evidencing the grants of Options and Stock Appreciation Rights  shall include the amount of Shares subject to an Award, the Exercise Price, vesting conditions  (as set forth below) and such additional provisions as may be specified by the Committee.  The  Exercise Price per Share covered by any Option or Stock Appreciation Right shall be not less  than 100% of the Fair Market Value of a Share on the date on which such Option or Stock  Appreciation Right is granted.          (b)   Vesting         Unless otherwise determined by the Committee, each Option or Stock Appreciation Right  shall become vested and exercisable with respect to one-third of the Shares subject to the Award  on each of the first three anniversaries from the date of grant provided the Participant is  continuously employed through each such respective anniversary.           (c)   Exercise Period         No Option or Stock Appreciation Right shall be exercisable after the expiration of ten  years from the date such Option or Stock Appreciation Right is granted.           (d)   Exercise of Options and Stock Appreciation Rights                                         8       

 

         Each Option or Stock Appreciation Right may, to the extent vested and exercisable, be  exercised in whole or in part.  The partial exercise of an Option or Stock Appreciation Right  shall not cause the expiration, termination or cancellation of the remaining portion thereof.  An  Option or Stock Appreciation Right shall be exercised by such methods and procedures as the  Committee determines from time to time, including without limitation, in the case of an Option,  through net physical settlement or other method of cashless exercise.  The Exercise Price of an  Option must be paid in full when the Option is exercised.  For the avoidance of doubt, the  preceding sentence will not prevent the Exercise Price being paid from the proceeds pursuant to  the prompt sale of Shares acquired upon exercise or the Participant entering into other  permissible arrangements, agreed by the Committee, for procuring payment of the aggregate  Exercise Price.         (e)   Payment in Cash or Shares.         Upon exercise, a Stock Appreciation Right may be settled for cash or Shares or a  combination of cash and Shares, in the discretion of the Committee, and as described in the  Award Agreement.  If a Stock Appreciation Right is settled for cash, the Company shall make a  payment to the Participant equal to the excess, if any, of the Fair Market Value of a Share on the  date of exercise over the Exercise Price, for each Share for which a Stock Appreciation Right  was exercised.  If the Stock Appreciation Right is settled for Shares, the Company shall deliver  to the Participant a number of Shares in the amount equal to the cash payment amount that would  have been payable if the Stock Appreciation Right was settled in cash divided by the Fair Market  Value of a Share on the date of exercise, rounded down to the nearest whole number of Shares.          (f)   Termination of Employment.         Subject to the discretion of the Committee, upon the termination of the Participant’s  employment for any reason other than for Cause,  (i) the portion of an Option or a Stock  Appreciation Right that has not become vested or exercisable as of the date of such termination  shall immediately lapse and (ii) except as otherwise provided in the Plan or in the applicable  Award Agreement, the portion of the Option or a Stock Appreciation Right that is vested or   exercisable as of the date of termination of employment will lapse on the first anniversary of the  date of termination of employment to the extent not theretofore exercised.  In the event of the  termination of the Participant’s employment for Cause, all Shares subject to an Option or a Stock  Appreciation Right, whether then vested or exercisable or not, shall immediately lapse on such  termination.    7.    Restricted Stock         The Committee may from time to time grant Time-Based and Performance-Based  Restricted Stock, subject to the following terms and conditions:         (a)   Grant of Restricted Stock          At the time of grant, the Committee shall determine, in its discretion, the terms and  conditions that will apply to Restricted Stock granted pursuant to this Section 7.  Time-Based  Restricted Stock shall vest with respect to one-third of the Shares subject to the Award on each                                         9       

 

   of the first three anniversaries from the date of grant provided the employee is continuously  employed through each such respective anniversary.             (b)   Issuance of Restricted Stock; Rights of Participants         As soon as practicable after Restricted Stock has been granted, Restricted Stock shall be  transferred to the Participant.  Shares of Restricted Stock may be evidenced in such manner as  the Committee shall determine.  Except as otherwise determined by the Committee, the  Participant will have all rights of a shareholder with respect to the Shares of Restricted Stock,  including the right to vote and to receive dividends or other distributions, except that the Shares  may be subject to a vesting schedule and forfeiture and may not be Transferred until the  restrictions are satisfied or lapse.  The Committee may enforce any restrictions that the  Committee may impose on Restricted Stock in such manner as the Committee shall determine,  including legends, custody accounts or any other restrictions on transfer.           (c)   Dividends   The Committee may provide that any dividends declared on the Restricted Stock before they are  vested shall either (i) be reinvested in the form of additional Shares, which shall be subject to the  same vesting provisions that apply to the Shares of Restricted Stock to which they relate, or (ii)  be credited by the Company to an account for the Participant and accumulated with or without  interest until the date upon which the Shares of Restricted Stock to which they relate become  vested, and any dividends accrued with respect to forfeited Restricted Stock will be reconveyed  to the Company without further consideration or any act or action by the Participant. In cases  where dividends are reinvested, the number of additional Shares shall be determined by first (i)  multiplying the number of Shares of Restricted Stock subject to an Award on the dividend  payment date by the per-Share dollar amount of the dividend so paid, and then (ii) dividing the  resulting amount by the Fair Market Value of Shares on the dividend payment date, with the  number of Shares rounded down to the nearest whole number and the cash balance remaining  being carried forward and added to the dividend amounts (if any) paid on the next occasion. If  Shares of Restricted Stock subject to an Award are forfeited, the additional Shares that relate to  such Restricted Stock shall also be forfeited.”             (d)   Termination of Employment.         Subject to the discretion of the Committee, upon the termination of the Participant’s  employment for any reason other than for Cause, (i) all Shares underlying Time-Based Restricted  Stock that have not yet become vested as of the date of the Participant’s termination shall be  immediately forfeited by the Participant and the Participant shall have no further rights with  respect thereto and (ii) the  Performance-Based Restricted Stock shall vest with respect to the  number of Shares underlying such Award equal to (a) the number of Shares underlying such  Award that would have been vested in the Participant for the full Performance Period, as  determined by the Committee in its sole discretion, taking into account actual performance  results as of the date of termination multiplied by (b) a fraction, the numerator of which is the  number of days during such Performance Period that have elapsed prior to (and including) the                                        10       

 

   date of termination and the denominator of which is the total number of days in such  Performance Period, rounded down to the nearest whole number of Shares.  Any portion of a  Performance-Based Restricted Stock that does not vest pursuant to the clause (ii) of the  preceding sentence shall be immediately forfeited by the Participant as of the termination and the  Participant shall have no further rights with respect thereto.  In the event of the termination of the  Participant’s employment for Cause, all unvested Restricted Stock shall be immediately forfeited  by the Participant as of the termination and the Participant shall have no further rights with  respect thereto.   8.    Restricted Stock Units         The Committee may from time to time grant Time-Based and Performance-Based  Restricted Stock Units, subject to the following terms and conditions:         (a)   Grant of Restricted Stock Units         At the time of grant, the Committee shall determine, in its discretion, the terms and  conditions that will apply to Restricted Stock Units granted pursuant to this Section 8.  Unless  otherwise determined by the Committee, Time-Based Restricted Stock Units shall vest with  respect to one-third of the Shares subject to the Award on each of the first three anniversaries  from the date of grant provided the Participant is continuously employed through each such  respective anniversary.           (b)   Dividend Equivalents         The Committee shall provide for the payment of dividend equivalents with respect to  Restricted Stock Units.  The Company shall credit the Participant with additional Restricted  Stock Units as of each date on which the Company pays a cash dividend on Shares, the number  of which shall be determined by first (i) multiplying the number of Restricted Stock Units  subject to an Award on the dividend payment date by the per-Share dollar amount of the  dividend so paid, and then (ii) dividing the resulting amount by the Fair Market Value of Shares  on the dividend payment date.  Additional Restricted Stock Units shall be subject to the same  restrictions, including but not limited to vesting, Transferability and payment restrictions, that  apply to the Restricted Stock Units to which they relate.  If the Restricted Stock Units subject to  an Award are forfeited, the additional Restricted Stock Units that relate to such Restricted Stock  Units shall also be forfeited.         (c)   Form and Timing of Settlement         Payment of earned Restricted Stock Units shall be made as soon as practicable after the  date(s) determined by the Committee and set forth in the Award Agreement, provided that with  respect to any Restricted Stock Units subject to Section 409A of the Code such payment will  occur in a manner that would not cause any tax to become due under Section 409A of the Code.   Restricted Stock Units may be settled for cash, Shares, or a combination of both, as determined  by the Committee and set forth in the Award Agreement.  The Committee may permit  Participants to request the deferral of payment of vested Restricted Stock Units (including the  value of related dividend equivalents, if any) to a date later than the payment date specified in the                                        11       

 

   Award Agreement, provided that with respect to any Restricted Stock Units subject to Section  409A of the Code such deferral will be made in a manner that would not cause any tax to  become due under Section 409A of the Code.           (d)   Termination of Employment.         Subject to the discretion of the Committee, upon the termination of the Participant’s  employment for any reason other than for Cause, (i) all Shares underlying Time-Based Restricted  Stock Units that have not yet become vested as of the date of the Participant’s termination shall  be immediately forfeited by the Participant, and (ii) the Performance-Based Restricted Stock  Units shall vest and be settled in cash or Shares with respect to the number of Shares underlying  such Award equal to (a) the number of Shares underlying such Award that would have been  delivered to the Participant for the full Performance Period, as determined by the Committee in  its sole discretion, taking into account actual performance results as of the date of termination  multiplied by (b) a fraction, the numerator of which is the number of days during such  Performance Period that have elapsed prior to (and including) the date of termination and the  denominator of which is the total number of days in such Performance Period, rounded down to  the nearest whole number of Shares.  Any portion of a Performance-Based Restricted Stock  Units Award that does not vest pursuant to the clause (ii) of the preceding sentence shall be  immediately forfeited by the Participant as of the termination and the Participant shall have no  further rights with respect thereto.  In the event of the termination of the Participant’s  employment for Cause, all Restricted Stock Units shall be immediately forfeited by the  Participant as of the termination and the Participant shall have no further rights with respect  thereto.   9.    Cash  Incentive Awards         The Committee may from time to time grant Cash Incentive Awards.  At the time of  grant, the Committee shall determine, in its discretion, the terms and conditions that will apply to  Cash Incentive Awards granted pursuant to this Section 9.  Cash Incentive Awards may be  settled in cash or in other property, including Shares, as determined by the Committee at the time  of grant.  Unless otherwise determined by the Committee, all Cash Incentive Awards shall be  granted upon satisfaction of applicable performance conditions and shall be deferred for at least  two years, subject to continued service of the Participant.  If during such deferral period the  Company restates its financial results based on which the Cash Incentive Award was computed,  the Participant shall forfeit the excess of the amount of the Cash Incentive Award over what he  would have received based on the restated financial results.  Upon the termination of the  Participant’s employment for any reason other than for Cause, the Cash Incentive Award held by  the Participant shall become vested in full and payable within 30 days after the termination of the  Participant’s employment, except (i) if the Participant is subject to United States taxation and the  Cash Incentive Award is subject to Section 409A of the Code, the payment of the Cash Incentive  Award shall not be accelerated and (ii) if the Committee, in its sole discretion, reasonably  believes that there is more than minimal risk of a restatement of the Company’s financial results  during the original deferral period, the Cash Incentive Award shall be treated as if the Participant  remained employed through the original payment date set forth in the Award.  In the event of the  termination of the Participant’s employment for Cause, all outstanding Cash Incentive Awards                                        12       

 

   shall be forfeited by the Participant and the Participant shall have no further rights with respect  thereto.   10.   Other Stock Based Awards         The Committee may grant Other Stock Based Awards not otherwise described herein in  such amounts and subject to such terms and conditions as the Committee shall determine.   Without limiting the generality of the preceding sentence, each such Other Stock Based Award  may (i) involve the transfer of Shares to Participants, either at the time of grant or thereafter, or  payment in cash or otherwise of amounts based on the value of Shares, and (ii) be Time-Based or  Performance-Based; provided that each Other Stock Based Award shall be denominated in, or  shall have a value determined by reference to, a number of Shares that is specified at the time of  the grant of such award.  The UK schedule hereto or applicable Award Agreement shall specify  the consequences, if any, on the Award of the Participant’s termination of employment; provided  that in the event of the termination of the Participant’s employment for Cause, all outstanding  Other Stock Based Awards shall be immediately forfeited by the Participant and the Participant  shall have no further rights with respect thereto.   11.   Performance-Based Awards         The Performance-Based Awards shall be subject to the following terms and conditions:         (a)   Performance Targets, Target Awards and Performance Schedules         Within 90 days after the beginning of a Performance Period, and in any case before 25%  of the Performance Period has elapsed, the Committee shall establish (a) Performance Targets  for such Performance Period, (b) Target Awards for each Participant, and (c) Performance  Schedules for such Performance Period.  The Performance Targets may be with respect to  corporate performance, operating group or sub group performance, individual company  performance, other group or individual performance, or division performance, and shall be based  on one or more of the Performance Measures described below.         (b)   Performance Measures         The Performance Targets upon which the payment or vesting of any Performance-Based  Award depends shall relate to one or more of the following Performance Measures: (i) net  income or operating net income (before or after taxes, interest, depreciation, amortization, and/or  nonrecurring/unusual items), (ii) return on assets, return on capital, return on equity, return on  economic capital, return on other measures of capital, return on sales or other financial criteria,  (iii)  revenue or net sales, (iv) gross profit or operating gross profit, (v) cash flow, (vi)  productivity or efficiency ratios, (vii) share price or total shareholder return, (viii) earnings per  share, (ix) budget and expense management, (x) customer and product measures, including  market share, high value client growth, and customer growth, (xi) working capital turnover and  targets, (xii) margins, and (xiii) economic value added or other value added measurements, in  any such case (x) considered absolutely or relative to historic performance or relative to one or  more other businesses and (y) determined for the Company or any business unit or division  thereof.                                          13       

 

         The measurement of any Performance Measure(s) may exclude the impact of charges for  restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring  items, and the cumulative effects of accounting changes, each as defined by generally accepted  accounting principles and as identified in the Company’s audited financial statements, including  the notes thereto.           Each Performance Measure may be expressed on an absolute and/or relative basis and  may be used to measure the performance of any Participant or group of Participants, or Luxfer,  the Company or a Subsidiary as a whole or any business unit of Luxfer or any Subsidiary or any  combination thereof, as the Committee may deem appropriate, or any of the above Performance  Measures as compared to the performance of a group of comparator companies, or a published or  special index that the Committee, in its sole discretion, deems appropriate.            (c)   Certification          Except as otherwise provided in the Plan, no distribution shall be made under this Plan  until after the Committee has certified the attainment of the Performance Targets and the amount  to be paid to each Participant.          (d)   Service Requirements         Nothing in this Section 11 is intended to limit the Committee’s discretion to adopt any  service conditions or restrictions with respect to Performance-Based Awards.   12.   Adjustment upon Certain Changes         (a)   Adjustment of Shares          If the number of outstanding Shares is changed by a stock dividend, recapitalization,  stock split, reverse stock split, subdivision, combination, reclassification or similar change in the  capital structure of Luxfer, without the fair market value consideration, then (i) the number of  Shares available for Awards under the Plan and awards under the Director EIP set forth in  Section 3, (ii) the Exercise Prices of and number of Shares subject to outstanding Options and  Stock Appreciation Rights and (iii) the nominal value per Share, if applicable, and the number of  Shares subject to other outstanding Awards,  may be proportionately adjusted, subject to any  required action by the Board or the shareholders of the Company and in compliance with  applicable securities laws and, to the extent applicable, Section 409A of the Code.  In addition,  except insofar as the Board (on behalf of Luxfer) agrees to capitalize Luxfer’s reserves and apply  the same in paying up any difference between the Exercise Price (or any amount payable per  Share in relation to an Award) and the nominal value of the Shares, the Exercise Price (or other  amount payable per Share in relation to an Award) of any Award over Shares that are to be  newly issued by Luxfer in satisfaction of the Award shall not be reduced below a Share’s  nominal value.         (b)         Certain Mergers         Subject to any required action by the shareholders of Luxfer, in the event that the  Company shall be the surviving corporation in any merger, consolidation or similar transaction                                       14       

 

   as a result of which the holders of Shares receive consideration consisting exclusively of  securities of such surviving corporation, the Committee may, to the extent deemed appropriate  by the Committee, adjust each Award outstanding on the date of such merger or consolidation so  that it pertains and applies to the securities which a holder of the number of Shares subject to  such Award would have received in such merger or consolidation.         (c)          Certain Other Transactions         In the event of (i) a dissolution or liquidation of Luxfer, (ii) a sale of all or substantially  all of the Luxfer’s assets (on a consolidated basis), (iii) a merger, consolidation or similar  transaction involving Luxfer in which Luxfer is not the surviving corporation or (iv) a merger,  consolidation or similar transaction involving Luxfer in which Luxfer is the surviving  corporation but the holders of Shares receive securities of another corporation and/or other  property, including cash, the Committee shall, in its sole discretion, have the power to:               (i)  cancel, effective immediately prior to the occurrence of such event, each        Award (whether or not then exercisable), and, in full consideration of such cancellation,        pay to the Participant to whom such Award was granted an amount in cash, for each        Share subject to such Award equal to the value, as determined by the Committee in its        reasonable discretion, of such Award, provided that with respect to any outstanding        Option or Stock Appreciation Right, such value shall be equal to the excess of (A) the        value, as determined by the Committee in its reasonable discretion, of the property        (including cash) received by the holder of a Share as a result of such event over (B) the        Exercise Price of such Option or Stock Appreciation Right; or               (ii)  provide for the exchange of each Award (whether or not then exercisable or        vested) for an award with respect to, as appropriate, some or all of the property which a        holder of the number of Shares subject to such Award would have received in such        transaction and, incident thereto, make an equitable adjustment as determined by the        Committee in its reasonable discretion in the Exercise Price of the Award, or the number        of shares or amount of  property subject to the Award or, if appropriate, provide for a        cash payment to the Participant to whom such Award was granted in partial consideration        for the exchange of the Award.         (d)         Notice         The Company shall give each Participant notice of an adjustment, substitution,  cancellation or other action hereunder and, upon notice, such adjustment, substitution,  cancellation or other action shall be conclusive and binding for all purposes.  Notwithstanding  the foregoing, the Committee may, in its discretion, decline to take action under this Section 12  with respect to any Award if the Committee determines that such action would violate (or cause  the Award to violate) applicable law or result in adverse tax consequences to the Participant or to  the Company.           (e)   Changes to Awards Subject to Performance Conditions                                         15       

 

         In the event of any transaction or event described in this Section 12, the Committee may,  in its sole discretion, make such adjustments in any Performance Schedule, Performance Targets  or Target Award, and in such other terms of any Award, as the Committee may consider  appropriate in respect of such transaction or event.         (f)   No Repricing         Notwithstanding any provision of the Plan to the contrary, in no event shall (i) any  repricing (within the meaning of U.S. generally accepted accounting principles or any applicable  stock exchange rule) of Awards granted under the Plan be permitted at any time under any  circumstances or (ii) any new Awards be granted in substitution for outstanding Awards  previously granted to Participants if such action would be considered a repricing (within the  meaning of U.S. generally accepted accounting principles or any applicable stock exchange  rule).         (g)   No Other Rights         Except as expressly provided in the Plan, no Participant shall have any rights by reason of  any subdivision or consolidation of shares of stock of any class, the payment of any dividend,  any increase or decrease in the number of shares of stock of any class or any dissolution,  liquidation, merger or consolidation of Luxfer or any other corporation.  Except as expressly  provided in the Plan, no issuance by Luxfer of shares of stock of any class, or securities  convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof  shall be made with respect to, the number of Shares or amount of other property subject to, or the  terms related to, any Award.         (h)   Savings Clause         No provision of this Section 12 shall be given effect to the extent that such provision  would cause any tax to become due under Section 409A of the Code.   13.   Rights under the Plan         No person shall have any rights as a shareholder with respect to any Shares covered by or  relating to any Award granted pursuant to the Plan until the date of the transfer or delivery of  Shares.  Except as otherwise expressly provided in Section 12, no adjustment of any Award shall  be made for dividends or other rights for which the record date occurs prior to the date such  Shares are transferred or delivered.  Nothing in this Section 13 is intended, or should be  construed, to limit authority of the Committee to cause the Company to make payments based on  the dividends that would be payable with respect to any Share if it were transferred or delivered  or outstanding, or from granting rights related to such dividends.         The Company may, but shall not have any obligation to, establish any separate fund or  trust or other segregation of assets to provide for the satisfaction of Awards under the Plan.                                          16       

 

   14.   No Special Employment Rights; No Right to Award         Nothing contained in the Plan or any Award Agreement shall confer upon any Participant  any right with respect to the continuation of his employment by or service to the Company or  interfere in any way with the right of the Company at any time to terminate such employment or  service or to increase or decrease the compensation of the Participant from the rate in existence  at the time of the grant of an Award.         No person shall have any claim or right to receive an Award hereunder.  The  Committee’s granting of an Award to a Participant at any time shall neither require the  Committee to grant an Award to such Participant or any other Participant or other person at any  time nor preclude the Committee from making subsequent grants to such Participant or any other  Participant or other person.   15.   Securities Matters         The Company shall be under no obligation to effect the registration pursuant to the  Securities Act or any federal, state or non-U.S. securities laws of any Shares to be transferred or  delivered hereunder or to effect similar compliance under any state laws.  Notwithstanding  anything in the Plan to the contrary, the Company shall not be obligated to cause to be  transferred or delivered any Shares pursuant to the Plan unless and until the Company is advised  by its counsel that the transfer and delivery of Shares is in compliance with all applicable laws,  regulations of governmental authority and the requirements of any securities exchange on which  Shares are traded.  The Committee may require, as a condition to the transfer and delivery of  Shares pursuant to the terms hereof, that the recipient of such Shares make such covenants,  agreements and representations, and that certificates, if any, evidencing such Shares, bear such  legends, as the Committee deems necessary or desirable.         The exercise of any Option or Stock Appreciation Right that is settled in Shares granted  hereunder shall only be effective at such time as counsel to the Company shall have determined  that the transfer or delivery of Shares pursuant to such exercise is in compliance with all  applicable laws and regulations and the requirements of any securities exchange on which Shares  are traded.  The Company may, in its sole discretion, defer the effectiveness of an exercise of an  Award hereunder or the delivery or transfer of Shares pursuant to any Award pending or to  ensure compliance under federal, state, non-U.S. securities laws and the requirements of any  securities exchange on which Shares are traded.  The Company shall inform the Participant in  writing of its decision to defer the effectiveness of the exercise of an Award or the delivery or  transfer of Shares pursuant to any Award.  During the period that the effectiveness of the  exercise of an Award has been deferred, the Participant may, by written notice, withdraw such  exercise and obtain the refund of any amount paid with respect thereto.         The issue or transfer of any Shares under the Plan shall be subject to Luxfer’s Articles of  the Association and to any necessary consents of any governmental or other authorities (in any  jurisdiction) under any enactments or regulations from time to time in force.  The Participant  shall comply with any requirements to be fulfilled in order to obtain or obviate the necessity of  any such consent.                                        17       

 

   16.   Withholding Taxes         (a)   Payment of Taxes         Participants shall be solely responsible for any applicable taxes imposed on the  Participant by applicable law (including without limitation income, social security and excise  taxes but excluding any taxes imposed in connection with the issuance of  Shares) and penalties,  and any interest that accrues thereon, which they incur in connection with the receipt, vesting,  settlement or exercise of any Award.  Notwithstanding any provision of the Plan to the contrary,  in no event shall the Company or the Committee be liable to a Participant on account of an  Award’s failure to (i) qualify for favorable U.S. or non-U.S. tax treatment or (ii) avoid adverse  tax treatment under U.S. or non-U.S. law, including, without limitation, under Section 409A of  the Code.         (b)   Cash Remittance         Whenever Shares are to be transferred or delivered upon the exercise, grant or vesting of  an Award, and whenever any cash amount shall become payable in respect of any Award, the  Company shall have the right to require the Participant to remit to the Company in cash an  amount sufficient to satisfy federal, state, local and/or non-U.S. withholding tax requirements, if  any, attributable to such exercise, grant, vesting or payment prior to the delivery of Shares or  recordation by the Company of the Participant or his or her nominee as the owner of such Shares  or the effectiveness of the lapse of such restrictions or making of such payment.  In addition,  upon the exercise or settlement of any Award in cash, or any payment (including in Shares) with  respect to any Award, the Company shall have the right to withhold from any payment required  to be made pursuant thereto an amount sufficient to satisfy the federal, state, local and/or non- U.S. withholding tax requirements, if any, attributable to such exercise, settlement or payment.         (c)   Share Remittance         At the election of the Participant, subject to the approval of the Committee, when Shares  are to be transferred or delivered upon the exercise, grant or vesting of an Award, the Participant  may tender to the Company a number of Shares that have been owned by the Participant for at  least six months (or such other period as the Committee may determine) having a Fair Market  Value at the tender date determined by the Committee to be sufficient to satisfy the minimum  federal, state, local and/or non-U.S. withholding tax requirements, if any, attributable to such  exercise, grant or vesting, but not greater than the minimum withholding obligations.  Such  election shall satisfy the Participant’s obligations under Section 16(a) hereof, if any.                                         18       

 

         (d)   Share Withholding         At the election of the Participant, subject to the approval of the Committee, when Shares  are to be transferred or delivered upon the exercise, grant or vesting of an Award, the Company  shall withhold a number of such Shares determined by the Committee to be sufficient to satisfy  the minimum federal, state, local and/or non-U.S. withholding tax requirements, if any,  attributable to such exercise, grant or vesting, but not greater than the minimum withholding  obligations.  Such election shall satisfy the Participant’s obligations under Section 16(a) hereof,  if any.   17.   Amendment or Termination of the Plan         (a)   The Board may at any time suspend or discontinue the Plan or revise or amend it  in any respect whatsoever; provided, however, that to the extent that any applicable law,  regulation or rule of a stock exchange requires shareholder approval in order for any such  revision or amendment to be effective, such revision or amendment shall not be effective without  such approval.  The preceding sentence shall not restrict the Committee’s ability to exercise its  discretionary authority hereunder pursuant to Section 4 hereof, which discretion may be  exercised without amendment to the Plan.  No provision of this Section 17 shall be given effect  to the extent that such provision would cause any tax to become due under Section 409A of the  Code.  Except as expressly provided in the Plan, no action hereunder may, without the consent of  a Participant, reduce the Participant’s rights under any previously granted and outstanding  Award.  Nothing in the Plan shall limit the right of the Company to pay compensation of any  kind outside the terms of the Plan.         (b)   The Committee may amend or modify the terms and conditions of an Award to  the extent that the Committee determines, in its sole discretion, that the terms and conditions of  the Award violate or may violate Section 409A of the Code; provided, however, that (i) no such  amendment or modification shall be made without the Participant’s written consent if such  amendment or modification would violate the terms and conditions of any other agreement  between the Participant and the Company and (ii) unless the Committee determines otherwise,  any such amendment or modification of an Award made pursuant to this Section 17(b) shall  maintain, to the maximum extent practicable, the original intent of the applicable Award  provision without contravening the provisions of Section 409A of the Code.  The amendment or  modification of any Award pursuant to this Section 17(b) shall be at the Committee’s sole  discretion and the Committee shall not be obligated to amend or modify any Award or the Plan,  nor shall the Company be liable for any adverse tax or other consequences to a Participant  resulting from such amendments or modifications or the Committee’s failure to make any such  amendments or modifications for purposes of complying with Section 409A of the Code or for  any other purpose.  To the extent the Committee amends or modifies an Award pursuant to this  Section 17(b), the Participant shall receive notification of any such changes to his or her Award  and, unless the Committee determines otherwise, the changes described in such notification shall  be deemed to amend the terms and conditions of the Award and the applicable Award  Agreement.                                         19       

 

   18.   Transfers upon Death         Upon the death of a Participant, to the extent provided in the applicable Award  Agreement, (i) any outstanding Options and Stock Appreciation Rights granted to such  Participant may be exercised only by the Beneficiary and (ii) any Award granted to such  Participant may only be transferred to the Beneficiary.  The Beneficiary, as a condition of such  exercise or transfer, as the case may be, shall be bound in all respects by the provisions of the  Plan and the applicable Award Agreement as if the Beneficiary were an original party thereto  and by the acknowledgements made by the Participant in connection with the grant of the Award  and all references in the Plan and the applicable Award Agreement to the Participant shall be  deemed to refer to such Beneficiary.  Any attempt to Transfer an Award in violation of the Plan  shall render such Award null and void.   19.   Change in Control         (a)   Treatment of the Awards         Unless otherwise set forth in the Award Agreement, upon a Change in Control,                (i)   each outstanding Time-Based Award shall become fully vested and (a)        with respect to Options and Stock Appreciation Rights, exercisable or (b) with respect to        all other Awards hereunder, settled in cash or Shares, as applicable, and all restrictions        thereon shall lapse, and except as otherwise provided in the Plan or in the applicable        Award Agreement or as otherwise communicated to the Participants by the Committee in        connection with the Change in Control, an Option or a Stock Appreciation Right shall        lapse on the first anniversary of the Change in Control to the extent not theretofore        exercised.               (ii)  each outstanding Performance-Based Award shall become vested and        exercisable and/or settled in cash or Shares, as applicable, and the restrictions thereon        shall lapse, in each case, with respect to the number of Shares underlying such Award or        the amount of cash that is equal to (x) the number of Shares underlying such Award or        cash amount under an Award  that would have been vested in or delivered to the        Participant, as applicable, for the full Performance Period, as determined by the        Committee in its sole discretion, taking into account actual performance results as of the        date of a Change in Control  multiplied by (y) a fraction, the numerator of which is the        number of days during such Performance Period that have elapsed prior to (and        including) the date of the Change in Control and the denominator of which is the total        number of days in such Performance Period, rounded down to the nearest whole number        of Shares.  Any portion of a Performance-Based Award that does not vest pursuant to this        clause (ii) shall be forfeited or lapse, as applicable, as of the date of the Change in        Control and the Participant shall have no further rights with respect thereto.         (b)   409A Savings Clause         Notwithstanding the foregoing and for the purposes of timing of payment, distribution or  settlement only, a Change in Control shall not be deemed to occur under this Section 19 of the                                        20       

 

   Plan with respect to any Award that constitutes “non-qualified deferred compensation” within  the meaning of Section 409A of the Code and is granted to a Participant subject to United States  taxation, unless the events that have occurred would also constitute a “Change in the Ownership  or Effective Control of a Corporation or in the Ownership of a Substantial Portion of the Assets  of a Corporation” under Treasury Department Final Regulation 1.409A-3(i)(5), or any successor  thereto.         (c)   280G Cutback         In the event that it shall be determined by the Committee that any benefit provided or  payment made by the Company to or for the benefit of the Participant, whether paid or payable  or distributed or distributable pursuant to the terms of the Plan or any other agreement, plan,  program, arrangement or otherwise (“Parachute Payments”), would subject the Participant to an  obligation to pay an excise tax imposed by Section 4999 of the Code or any interest or penalties  related to such excise tax (such excise tax, together with any such interest and penalties, are  hereinafter collectively referred to as the “Excise Tax”), the amount of Parachute Payments  payable to such Participant shall be reduced in the manner determined by the Committee, to the  extent and only to the extent that such reduction would result in a greater after-tax benefit for  such Participant than if the Parachute Payments were not reduced; provided, however, that in no  event shall such reduction be effected through a delay in the timing of any Payment that is  subject to Section 409A of the Code (or  that would become subject to 409A of the Code as a  result of such delay).   20.   Fractional Shares          The Company shall not be required to issue any fractional Shares pursuant to the Plan.   The Committee may provide for the elimination of fractions or for the settlement thereof in cash.    21.   Nominal Value         If determined by the Committee, the vesting/exercise of an Award over Shares and the  issue of Shares pursuant to the Award will be subject to the payment of the aggregate nominal  value of the underlying Shares by the Participant.  Any cash payment to be made to a Participant  pursuant to Section 12(c)(i) of the Plan in consideration of the cancellation of an Award or an  award that is provided in exchange for an Award pursuant to Section 12(c)(ii) of the Plan, shall  where appropriate and if determined by the Committee, take account of the nominal value of the  Shares subject to the Award.   22.   Data Protection         It shall be a condition of an Award that the Participant agrees and consents to:         (a)   The collection, use, processing and transfer of Participant’s Personal Data by the  Company, any trustee or third party administrator of the Plan, the Company’s registrars, or any  broker through whom Shares are to be sold on behalf of a Participant.         (b)   The Company, any trustee or third party administrator of the Plan, the Company’s  registrars, or any broker through whom Shares are to be sold on behalf of a Participant                                       21       

 

   transferring the Participant's Personal Data amongst themselves for the purposes of  implementing, administering and managing the Plan and the grant of Awards and the acquisition  of Shares pursuant to Awards, the disposal of such Shares or the making of any cash payment  under the Plan.         (c)   The use of Personal Data by any such person for any such purposes; and         (d)   The transfer to and retention of Personal Data by third parties including any  trustee or third party administrator of the Plan for or in connection with such purposes.   23.   Service of Documents         (a)   Except as otherwise provided in the Plan, any written notice or document to be  given by, or on behalf of, the Company or any administrator of the Plan to a Participant in  accordance or in connection with the Plan may be given by hand or sent by pre-paid first class  mail (airmail if overseas), facsimile transmission or email to the Participant's home or work  address, facsimile number or email address last known to the Company to be the Participant’s  address, facsimile number or email address.  Subject to the paragraph (d) of this Section 23 any  notice or document given in accordance with this Section 23 shall be deemed to have been given:  (i) upon delivery, if delivered by hand; (ii) after 24 hours, if sent by mail; after 4 hours, if sent by  facsimile transmission; and (iv) at the time of transmission, if sent by email except that  a notice  or document shall not be duly given by email unless that person is known by his employer  company to have personal access during his normal business hours to information sent to him by  email.         (b)   Any notice or document so sent to a Participant shall be deemed to have been  duly given notwithstanding that such person is then deceased (and whether or not the Company  has notice of his death) except where his personal representatives have supplied an alternative  address to which documents are to be sent to the Company.         (c)   Any written notice or document to be submitted or given to the Company or any  administrator of the Plan in accordance or in connection with the Plan may be given by hand or  sent by pre-paid first class post (airmail if overseas), facsimile transmission or email but shall not  in any event be duly given unless it is actually received by the Secretary of the Company or such  other individual as may from time to time be nominated by the Company and whose name and  address, facsimile number or email address is notified to the Participant.         (d)   For the purposes of the Plan, an email shall be treated as not having been duly  sent or received if the recipient of such email notifies the sender that it has not been opened  because it contains, or is accompanied by a warning or caution that it could contain or be subject  to, a virus or other computer program which could alter, damage or interfere with any computer  software or email.   24.   Third Party Rights         Except as otherwise expressly stated to the contrary, neither the Plan nor the making of  any Award shall have the effect of giving any third party any rights under the Plan pursuant to                                        22       

 

   the UK Contracts (Rights of Third Parties) Act 1999 or otherwise and that Act shall not apply to  the Plan or to the terms of any Award under it.   25.   Governing Law         (a)   This Plan and any Award shall be governed by, and construed in accordance with,  English law.         (b)   Any person or persons referred to in the Plan shall:               (i)   submit to the exclusive jurisdiction of the English courts as regards any              claim, legal action, dispute, difference or proceedings concerning an Award or              any matter arising from, or in relation to, the Plan;               (ii)  waive personal service of any proceedings;               (iii)  agree that service on him or it of proceedings may be effected by              registered mail to his or its address for service of notices under the Plan; and               (iv)  waive any objection to proceedings taking place in the English courts on              the grounds of venue or that proceedings have been brought in an inconvenient              forum.                                                                               23       

 

   AMENDMENT NO. 1 TO LUXFER HOLDINGS PLC LONG-TERM UMBRELLA  INCENTIVE PLAN      The Luxfer Holdings PLC Long-Term Umbrella Incentive Plan (the “Plan”) is hereby amended  effective as of January 23, 2013 as follows:      1.    By deleting Section 3(c) of the Plan in its entirety and replacing it by the following:       “(c)   Unless otherwise determined by the Committee, the maximum value of the Awards  granted under the Plan in any calendar year shall not exceed in the aggregate: (i) 150% of base  salary for the Chief Executive Officer, (ii) 120% of base salary for the Chief Financial Officer  and other members of the Executive Management Board of Luxfer (other than the Chief  Executive Officer), and (iii) 100% of base salary for other Participants.  For purposes of these  individual limits, the Awards shall be valued as follows: (i) Time-Based Restricted Stock and  Time-Based Restricted Stock Units shall be valued at the Fair Market Value of Shares subject to  the Award on the date of grant; (ii) Options and Stock Appreciation Rights shall be valued at  one-third of the Fair Market Value of Shares subject to the Award on the date of grant; (iii)  Performance-Based Restricted Stock and Performance-Based Restricted Stock Units shall be  valued at 50% of the Fair Market Value on the date of grant of the Target Award; (iv) Cash  Incentive Awards shall be valued at the maximum cash value payable under the Award, and (v)  Other Stock Based Awards shall be valued, as determined by the Committee in good faith at the  time of grant, by reference to the Fair Market Value of Shares subject to the Award at the time of  grant.”     2.    By deleting Section 7(c) of the Plan in its entirety and replacing it by the following:      “(c)  The Committee may provide that any dividends declared on the Restricted Stock before  they are vested shall either (i) be reinvested in the form of additional Shares, which shall be  subject to the same vesting provisions that apply to the Shares of Restricted Stock to which they  relate, or (ii) be credited by the Company to an account for the Participant and accumulated with  or without interest until the date upon which the Shares of Restricted Stock to which they relate  become vested, and any dividends accrued with respect to forfeited Restricted Stock will be  reconveyed to the Company without further consideration or any act or action by the Participant.  In cased dividends are reinvested, the number of additional Shares shall be determined by first (i)  multiplying the number of Shares of Restricted Stock subject to an Award on the dividend  payment date by the per-Share dollar amount of the dividend so paid, and then (ii) dividing the  resulting amount by the Fair Market Value of Shares on the dividend payment date, with the  number of Shares rounded down to the nearest whole number and the cash balance remaining  being carried forward and added to the dividend amounts (if any) paid on the next occasion. If                                        24       

 

   Shares of Restricted Stock subject to an Award are forfeited, the additional Shares that relate to  such Restricted Stock shall also be forfeited.”    3.    By deleting Section 5(c) of the Plan in its entirety and replacing it by the following:      “(c)   Each Award granted under the Plan shall be evidenced by an Award Agreement, in form  and substance approved by the Committee.  Except as otherwise determined by the Committee,  an Award may not be Transferred.”   4     This amendment shall not affect any other provisions of the Plan and the Plan shall  remain in full force and effect.                                                                                             25       

 

   AMENDMENT NO. 2 TO LUXFER HOLDINGS PLC LONG-TERM UMBRELLA  INCENTIVE PLAN      The Luxfer Holdings PLC Long-Term Umbrella Incentive Plan (the “Plan”) is hereby amended  effective as of March 28, 2013 as follows:      1.    By deleting Section 2(r) of the Plan in its entirety and replacing it by the following:       “(r)   “Fair Market Value” means, with respect to a Share, as of the applicable date of  determination (i)  (x) for purposes of Sections 3(c) and 6(a) hereof, the closing price per Share on  the trading day immediately preceding such date as reported on the New York Stock Exchange  and (y) for all other purposes, the closing price per Share on that date as reported on the New  York Stock Exchange (or if not reported,  the closing price per Share on the trading day  immediately preceding such date as reported on the New York Stock Exchange) or (ii) if not so  reported, as determined by the Committee in its sole discretion using a reasonable valuation  method taking into account, to the extent applicable, the requirements of Section 409A of the  Code.”   2.    This amendment shall not affect any other provisions of the Plan and the Plan shall  remain in full force and effect.                                                                         26       

 

   AMENDMENT NO. 3 TO LUXFER HOLDINGS PLC LONG-TERM UMBRELLA  INCENTIVE PLAN      The Luxfer Holdings PLC Long-Term Umbrella Incentive Plan (the “Plan”) is hereby amended  effective as of January 23, 2018 as follows:      1.    By deleting the reference to American Depositary Shares.    2.          In 2(u) By changing the nominal shares of Luxfer’s ordinary shares to a nominal value  £0.50 per share, or any other security into which the ordinary shares shall be changed pursuant to  the adjustment provisions of Section 12 of the Plan.   3.    In 3(b) By increasing the maximum number of Shares that initially may be available for  Awards under the Plan and awards under the Director EIP, in the aggregate, shall be a number  equal to 2,010,820, which represents 7.4% of the outstanding share capital of Luxfer as of the  Effective Date.   4.    In 2(g) by increasing the percentage from 30% to 40% in (i) if any Person is or becomes  the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,  of securities of the Company representing 40% or more of the combined voting power of the  Company’s outstanding securities (other than any Person who was a “beneficial owner” of  securities of the Company representing 40% or more of the combined voting power of the  Company’s outstanding securities prior to the Effective Date);                                                                        27       

 

   AMENDMENT NO. 4 TO LUXFER HOLDINGS PLC LONG-TERM UMBRELLA  INCENTIVE PLAN      The Luxfer Holdings PLC Long-Term Umbrella Incentive Plan (the “Plan”) is hereby amended  effective as of May 22, 2018 as follows:      1. By removing references to “Executive Management Board” and replacing with “Executive     Leadership Team”, throughout.   2. Section 3(c) “Individual Award Limits; Valuation”, following shareholder approval of the     updated Remuneration Policy at the 2018 annual general meeting, updating the maximum     value of the share award in any calendar year under the UIP from 150% to 220% for the     Chief Executive Officer and from 120% to 150% for the Chief Financial Officer and all other     members of the Executive Leadership Team (excluding the Chief Executive Officer).                                                                                     28       

 

   AMENDMENT NO. 5 TO LUXFER HOLDINGS PLC LONG-TERM UMBRELLA  INCENTIVE PLAN   The Luxfer Holdings PLC Long-Term Umbrella Incentive Plan (the “Plan”) is hereby amended  effective as of March 5, 2019 as follows:      1.    Section 6(b) “Options and Stock Appreciation Rights; (b) Vesting”, amended to include  the following text “Unless otherwise determined by the Committee”.                                            29exhibit109

  PLAN RULES AND TRUST DEED AS AMENDED AND RESTATED PURSUANT TO A DEED DATED 15 MAY 2019                                                                                                                                                                                                                                     THE LUXFER SHARE INCENTIVE PLAN                                        The Plan has been:-   (a)    established by resolution of the directors of Luxfer Holdings PLC (the "Company")          passed on 26 September 2013;    (b)    approved by H M Revenue & Customs pursuant to Schedule 2 ITEPA on 29 October 2013          under reference A 110826; and   (c)    amended by deed pursuant to resolutions of the directors and of shareholders of the          Company on 15 May 2019.             

 

                                                     LUXFER HOLDINGS PLC                                                                            THE LUXFER HOLDINGS PLC SHARE INCENTIVE PLAN      PART A: GENERAL...................................................................................................................................... 5   PART B: PARTNERSHIP SHARES ........................................................................................................... 10   PART C: MATCHING SHARES ................................................................................................................. 17   PART D: FREE SHARES ........................................................................................................................... 19   PART E: PROVISIONS    RELATING   TO THE  HOLDING   OF  PLAN SHARES ....................................... 23   PART F: GLOSSARY ................................................................................................................................. 30   PART G: PLAN TRUST DEED ................................................................................................................... 35                          

 

                                                          CONTENTS                   PART A: GENERAL...................................................................................................................................... 5   1.    PURPOSE OF THE PLAN ................................................................................................................ 5   2.    PROVISION OF FREE, PARTNERSHIP AND MATCHING SHARES ............................................. 5   3.    HOLDING OF PLAN SHARES .......................................................................................................... 5   4.    DEFINITIONS AND INTERPRETATION .......................................................................................... 5   5.    ESTABLISHMENT OF PLAN TRUST ............................................................................................... 5   6.    REFERENCES TO THE TRUSTEE TO INCLUDE REFERENCES TO THE ADMINISTRATOR .... 6   7.    ELIGIBILITY TO PARTICIPATE IN THE PLAN ................................................................................ 6   8.    AMENDMENT OF THE PLAN .......................................................................................................... 6   9.    TERMINATION OF THE PLAN ......................................................................................................... 7   10.   ERRORS AND OMISSIONS ............................................................................................................. 8   11.   RELATIONSHIP WITH CONTRACT OF EMPLOYMENT ................................................................ 8   12.   PROPER LAW .................................................................................................................................. 9   PART B: PARTNERSHIP SHARES ........................................................................................................... 10   13.   ISSUE OF INVITATIONS TO ENTER INTO A PARTNERSHIP SHARE AGREEMENT ................ 10   14.   ENTRY INTO A PARTNERSHIP SHARE AGREEMENT ............................................................... 10   15.   QUALIFYING PERIOD OF EMPLOYMENT ................................................................................... 10   16.   AUTHORITY TO MAKE DEDUCTIONS FROM SALARY ............................................................... 11   17.   INDIVIDUAL LIMIT ON DEDUCTIONS FROM SALARY ................................................................ 11   18.   VARIATION BY PARTICIPANTS OF AMOUNTS DEDUCTED ...................................................... 11   19.   TERM OF A PARTNERSHIP SHARE AGREEMENT ..................................................................... 11   20.   NOTICE OF EFFECT OF DEDUCTIONS ON BENEFITS AND TAX CREDITS ............................ 11   21.   NOTICE TO STOP DEDUCTIONS ................................................................................................. 12   22.   PARTNERSHIP SHARE MONEY TO BE HELD BY THE TRUSTEE ............................................. 12   23.   ACCUMULATION PERIODS .......................................................................................................... 12   24.   CONNECTED SHARE INCENTIVE PLANS ................................................................................... 13   25.   ACQUISITION OF PARTNERSHIP SHARES ................................................................................ 14   26.   SCALING BACK OF PARTNERSHIP SHARES ............................................................................. 14   27.   CARRY-FORWARD OF SURPLUS PARTNERSHIP SHARE MONEY .......................................... 15   28.   NOTIFICATION OF ACQUISITION OF PARTNERSHIP SHARES ................................................ 15   29.   WITHDRAWAL FROM A PARTNERSHIP SHARE AGREEMENT ................................................. 15                    

 

                 30.   RETURN OF PARTNERSHIP SHARE MONEY UPON THE PLAN CEASING TO BE A SCHEDULE 2           SIP OR TERMINATION .............................................................................................................. 15   31.   SUSPENSION OF DEDUCTIONS FROM SALARY ....................................................................... 15   PART C: MATCHING SHARES ................................................................................................................. 17   32.   ISSUE OF INVITATIONS TO ACCEPT AN AWARD OF MATCHING SHARES ............................ 17   33.   REQUIREMENTS FOR MATCHING SHARES ............................................................................... 17   34.   LIMIT ON MATCHING SHARES ..................................................................................................... 17   35.   CARRY-FORWARD OF UNMATCHED PARTNERSHIP SHARES ............................................... 17   36.   AGREEMENT TO ACCEPT AN AWARD OF MATCHING SHARES ............................................. 17   37.   HOLDING PERIOD FOR MATCHING SHARES ............................................................................ 17   38.   NOTIFICATION OF AWARD .......................................................................................................... 18   39.   FORFEITURE OF MATCHING SHARES ....................................................................................... 18   PART D: FREE SHARES ........................................................................................................................... 19   40.   AWARD OF FREE SHARES .......................................................................................................... 19   41.   CONNECTED SHARE INCENTIVE PLANS ................................................................................... 19   42.   QUALIFYING PERIOD OF EMPLOYMENT ................................................................................... 19   43.   ISSUE OF INVITATIONS TO ACCEPT AN AWARD OF FREE SHARES ..................................... 19   44.   PLAN EMPLOYEES' RIGHT NOT TO ACCEPT AN AWARD OF FREE SHARES ........................ 20   45.   NO MATCHING OF FREE SHARES .............................................................................................. 20   46.   TOTAL NUMBER OF FREE SHARES TO BE AWARDED ............................................................ 20   47.   NUMBERS OF FREE SHARES TO BE AWARDED TO EACH ELIGIBLE EMPLOYEE ................ 20   48.   LIMIT ON THE VALUE OF FREE SHARES AWARDED IN ANY TAX YEAR ................................ 20   49.   ALLOCATION OF FREE SHARES BY REFERENCE TO PERFORMANCE ................................. 20   50.   METHOD ONE ................................................................................................................................ 21   51.   METHOD TWO ............................................................................................................................... 21   52.   NON-PERFORMANCE RELATED FREE SHARES TO BE AWARDED ON BASIS OF SAME TERMS           .................................................................................................................................................... 21   53.   HOLDING PERIOD FOR FREE SHARES ...................................................................................... 22   54.   NOTIFICATION OF AWARD .......................................................................................................... 22   55.   FORFEITURE OF FREE SHARES ................................................................................................. 22   PART E: PROVISIONS    RELATING   TO THE  HOLDING   OF  PLAN SHARES ....................................... 23   56.   HOLDING OF PLAN SHARES ........................................................................................................ 23   57.   VOLUNTARY WITHDRAWAL  OF SHARES FROM THE PLAN .................................................... 23                   

 

                 58.   AUTOMATIC WITHDRAWAL OF PLAN SHARES UPON CEASING TO BE IN RELEVANT           EMPLOYMENT .......................................................................................................................... 23   59.   CONSEQUENCES OF WITHDRAWAL OF SHARES FROM THE PLAN ...................................... 23   60.   NO LIABILITY FOR LOSS OCCASIONED BY DELAY .................................................................. 24   61.   FORFEITURE OF FREE AND MATCHING SHARES .................................................................... 24   62.   PROVISIONS OF SHAREHOLDERS ' INFORMATION TO PARTICIPANTS ................................ 25   63.   VOTING RIGHTS ATTACHING TO PLAN SHARES ...................................................................... 25   64.   RIGHTS ISSUES ............................................................................................................................ 25   65.   HOLDING PERIOD : FREEDOM TO AUTHORISE  TRUSTEE TO ACCEPT A GENERAL OFFER           ETC ............................................................................................................................................ 26   66.   COMPANY RECONSTRUCTIONS ................................................................................................. 26   67.   REINVESTMENT OF CASH DIVIDENDS IN PLAN SHARES ........................................................ 27   68.   HOLDING PERIOD FOR DIVIDEND SHARES .............................................................................. 28   69.   NOTIFICATION OF ACQUISITION OF DIVIDEND SHARES ........................................................ 28   70.   PAYE ............................................................................................................................................... 29   PART F: GLOSSARY ................................................................................................................................. 30   71.   DEFINITIONS ................................................................................................................................. 30   72.   INTERPRETATION OF THE PLAN ................................................................................................ 34   PART G: PLAN TRUST DEED ................................................................................................................... 35   1.    INTERPRETATION ......................................................................................................................... 35   2.    PRINCIPAL TRUSTS ...................................................................................................................... 36   3.    ADDITIONS TO THE TRUST FUND .............................................................................................. 37   4.    PARTNERSHIP SHARE MONIES AND PARTNERSHIP SHARES ............................................... 37   5.    TRUSTEE 'S POWERS AND DUTIES RELATING TO THE PLAN ................................................ 37   6.    TRUSTEE'S DEALINGS IN SHARES ............................................................................................. 41   7.    INVESTMENT  POWERS ............................................................................................................... 42   8.    ADDITIONAL  POWERS ................................................................................................................. 42   9.    PERPETUITY  PERIOD .................................................................................................................. 44   10.   TRUSTEE ....................................................................................................................................... 44   11.   REMUNERATION OF THE TRUSTEE ........................................................................................... 45   12.   PERSONAL INTERESTS OF TRUSTEE ........................................................................................ 45   13.   PROTECTION OF THE TRUSTEE ................................................................................................. 46   14.   INFORMATION SUPPLIED BY THE COMPANY ........................................................................... 46   15.   POWER OF MODIFICATION ......................................................................................................... 46                  

 

                 16.   PROPER LAW ................................................................................................................................ 47   17.   EXCLUSIONS FROM BENEFIT ..................................................................................................... 47   18.   COUNTERPARTS .......................................................................................................................... 47   19.   IRREVOCABILITY OF TRUSTS ..................................................................................................... 47                                                                                         

 

                                        LUXFER HOLDINGS PLC                                               RULES OF                                THE LUXFER SHARE INCENTIVE PLAN                                            PART A: GENERAL   1.     PURPOSE OF THE PLAN          The purpose of the Plan is to provide benefits to employees of Participating Companies in the nature         of Shares which give such employees a continuing stake in the Company .   2.     PROVISION OF FREE, PARTNERSHIP AND MATCHING SHARES   2.1    The Plan provides:-          2.1.1      in  Part B,  for  Partnership  Shares  to  be  acquired  on  behalf  of  participating  Eligible                    Employees out of sums deducted from their Salary;          2.1.2      in Part C, for the Company to procure that Matching Shares are awarded to participating                    Eligible Employees without payment in proportion to the Partnership Shares acquired by                    them; and          2.1.3      in  Part D,  for  Free  Shares  to  be  awarded  to  participating  Eligible  Employees  without                    payment.   2.2    The Directors may from time to time determine whether Eligible Employees shall, in a given Tax Year,         or in, or in respect of, a given Financial Year, be offered the opportunity to acquire Shares pursuant to         the  provisions  of  either  or  both  of  Part B (Partnership  Shares)  and  Part D (Free  Shares)  and,  if         pursuant to Part B, also Part C (Matching Shares).   3.     HOLDING OF PLAN SHARES          Part E contains provisions governing the terms on which Dividend Shares may be acquired and on         which Partnership Shares, Matching Shares, Free Shares and Dividend Shares shall be held in the         Plan.   4.     DEFINITIONS AND INTERPRETATION          Words and expressions used in the Plan shall have the meanings given in the Glossary in Part F.   5.     ESTABLISHMENT OF PLAN TRUST   5.1    The Company has established a trust by the execution of a Deed, (a pro-forma of which is set out in         Part G) which is constituted under the laws of England and Wales for the purposes of:-          5.1.1      in the case of Free Shares and Matching Shares, acquiring Shares and awarding them to                    Eligible Employees in accordance with the Plan;          5.1.2      in the case of Partnership Shares, holding Partnership Share Money and applying it in                    acquiring Shares on behalf of Eligible Employees in accordance with the Plan;          5.1.3      in the case of Dividend Shares, acquiring such Shares in accordance with the Plan; and          5.1.4      holding all such Shares so awarded or acquired in accordance with the Plan.      LMF/UKDP/UKM/92357982.1                                                                         5   

 

   5A       LIMITS OF THE PLAN    5A.1     Subject to Rule 5A.2, the maximum number of Shares that may be available under the Plan shall            be 500,000.  The  Directors  may,  subject  to  any  applicable  law,  from  time  to  time  increase  the            maximum number of Shares that may be available under the Plan. The Company may satisfy its            obligation  to  deliver  Shares  under  the  Plan  in  any  manner  permitted  by  law,  including,  without            limitation, by issuing new Shares that are authorised for issuance, using treasury shares or causing            an employee benefit trust or other trust to deliver Shares.    5A.2     If the number of outstanding Shares of the Company is changed by any bonus issues, rights issue,            consolidation, reduction, subdivision or otherwise, without the fair market value consideration, the            maximum   number  of  Shares  available  under  the  Plan  as  specified  in  Rule 5A.1 may  be            proportionately adjusted, subject to any required action by the Directors or the shareholders of the            Company and in compliance with applicable securities laws.   6.     REFERENCES TO THE TRUSTEE TO INCLUDE REFERENCES TO THE ADMINISTRATOR          References in Parts A to F of this Plan to anything done or to be done by or to the Trustee shall be         read and construed as including anything done or to be done by or to the Administrator pursuant to the         powers and duties delegated to the Administrator by the Trustee.   7.     ELIGIBILITY TO PARTICIPATE IN THE PLAN   7.1    An individual shall not be entitled to have Shares acquired on his behalf under Part B, or to receive an         award of Matching or Free Shares under Parts C or D at any time unless:-          7.1.1      subject to Rule 25.4, he is then an employee of a Participating Company;          7.1.2      if, pursuant to Rules 15 or 42, the Directors have specified a Qualifying Period in relation                    to eligibility on that occasion, he has, at all times during that Qualifying Period, been an                    employee of a Qualifying Company ; and          7.1.3      he  has  entered  into  a  Participation  Agreement  as  mentioned  in  Rule 43.3 and/or  a                    Partnership Share Agreement as mentioned in Rule 14.   7.2    Free Shares or Matching Shares shall not be awarded to an individual if he has directed the Trustee         not to award Shares to him.   7.3    Whenever the Directors decide to invite individuals to participate in the Plan, they must invite all Plan         Employees who meet the requirements in Rule 7.1 (i.e., all Eligible Employees).   7.4    Every Eligible Employee shall be invited to participate in the Plan on the same terms, and all who do         participate in the Plan shall do so on the same terms, subject to the provisions of Rules 49 and 52.   8.     AMENDMENT OF THE PLAN   8.1    Before the Plan is approved by H M Revenue & Customs, the Directors may by resolution in writing         alter (by amending, deleting or adding to) any of the terms of the Plan in any respect.   8.2    After the Plan is approved by H M Revenue & Customs, the Directors may so alter any of the terms of         Parts A to F of the Plan PROVIDED THAT:-          8.2.1      no such alteration to any term which is a Key Feature of the Plan shall take effect if, as a                    result, the Plan would no longer be a Schedule 2 SIP and without compliance with such                    process as may apply or be required by H M Revenue & Customs from time to time in                    relation to the amendment of a Key Feature, including notifying H M Revenue & Customs                    of any alteration of a Key Feature; and          8.2.2      no  such  alteration  shall  be  made  without  the  prior  approval  of  shareholders  of  the                    Company, if so required by any applicable statute, regulation or other legal provision, rule                    or guidance.   8.3    The terms of the Plan Trust may be amended, deleted or added to in accordance with the terms of the         Deed by the Company executing a deed expressed to be supplemental to the Deed SAVE THAT no         such amendment deletion or addition to any Key Feature of the Plan Trust shall take effect if, as a      LMF/UKDP/UKM/92357982.1                                                                         6   

 

         result, the Plan would no longer be a Schedule 2 SIP and without compliance with such process as         may apply or be required by H M Revenue & Customs from time to time in relation to the amendment         of a Key Feature.   9.     TERMINATION OF THE PLAN   9.1    The Directors may at any time, by giving notice in writing to:-          9.1.1      the Trustee; and          9.1.2      each Participant          terminate the operation of the Plan on and with effect from a date specified in such notice which is not         earlier than 14 days after the date of such notice.   9.2    Following such termination:-          9.2.1      no further Partnership Shares shall be acquired by the Trustee on behalf of Participants;          9.2.2      no further Free or Matching Shares shall be awarded by the Trustee;          9.2.3      no further Dividend Shares shall be acquired by the Trustee on behalf of any Participant;          9.2.4      the Trustee shall as soon as practicable after such notice is given to the Trustee return to                    each  Participant  (subject  to  deduction  of  income  tax  and  NICs  under  PAYE)  all  of  the                    Partnership Share Money and any other money held on behalf of such Participant;          9.2.5      the Trustee shall withdraw from the Plan each Participant's Plan Shares as soon as is                    practicable after:-                      (a)     the end of the period of 3 months beginning with the date on which notice is                             given pursuant to Rule 9.1; or                      (b)     if later, the first date on which such Participant's Plan Shares may be removed                             from the Plan without giving rise to a charge to income tax under Chapter 6 of                             Part 7 of ITEPA on the part of such Participant;          9.2.6      the  Trustee  may,  if  the  Participant  so  directs,  withdraw  from  the  Plan  any  of  a                    Participant's Plan Shares at any time before the end of the relevant period mentioned in                    Rule 9.2.5 above SAVE  THAT   the  Trustee  shall  disregard  any  such  direction  given                    before the date on which notice is given to such Participant pursuant to Rule 9.1; and          9.2.7      Shares which remain held in the Plan pending their withdrawal from the Plan by virtue of                    Rules 9.2.5 and 9.2.6 above shall continue to be so held by the Trustee subject to the                    provisions of Part E of the Plan.   9.3    Whenever a Participant's Plan Shares are withdrawn from the Plan pursuant to Rules 9.2.5 and 9.2.6,         the Trustee shall, subject to the provisions of Rule 70 (PAYE):-          9.3.1      transfer  such  Shares  to  the  Participant  or  to  such  other  person  as  the Participant may                    direct; or          9.3.2      dispose of the Shares and account (or hold itself ready to account) for the proceeds to                    the Participant or to such other person as the Participant has specified .   9.4    Unless the Participant otherwise agrees, a disposal of Shares as mentioned in Rule 9.3.2 shall be for         the best consideration which the Trustee is able to obtain at the time of such disposal.      LMF/UKDP/UKM/92357982.1                                                                         7   

 

  9.5    References  in  this  Rule 9 to  a  disposal  of  Shares  shall  be  construed  as  including  references  to  a         purchase of the beneficial interest in such Shares by the Trustee.   9.6    If a Participant has died, references in Rule 9.3 to the Participant shall be read as references to his         Personal Representatives.   10.    ERRORS AND OMISSIONS          If in consequence of an error or omission:-   10.1   an Eligible Employee has not been given the opportunity to participate in the Plan on any occasion; or   10.2   the number of Shares appropriated to any Eligible Employee on any occasion is found to be incorrect;          and such error or omission cannot be corrected within the relevant period specified in the Plan, the         Company and the Trustee may do all such acts and things as may be agreed with H M Revenue &         Customs to rectify such error or omission notwithstanding that such actions may not otherwise be in         accordance with the rules of the Plan.   11.    RELATIONSHIP WITH CONTRACT OF EMPLOYMENT   11.1   Neither the opportunity given to any person to participate in the Plan nor any award to any person of         Free  or  Matching  Shares  shall  form  part  of  such  person's  entitlement  to  remuneration  or  benefits         pursuant to his contract of employment.   11.2   Except  as  otherwise  expressly  provided  in  the  Plan,  the  existence  of  a  contract  of  employment         between any person and any member or former member of the Group or any Associated Company         shall  not  give  such  person  any  right  or  entitlement  to  participate  in the  Plan  in  any  manner  or  any         expectation that Shares might be awarded to such person.   11.3   The rights, entitlements and obligations under the terms of any contract of employment between any         person  and  any  member  or  former  member  of  the  Group  or  any  Associated Company  shall  not  be         affected by such person's participation in the Plan.   11.4   Participation in the Plan shall not afford any person any rights or additional rights to compensation or         damages in consequence of the loss or termination of such person's employment with any member or         former member of the Group or any Associated Company for any reason whatsoever (whether or not         such termination is ultimately held to be wrongful or unfair).   11.5   Neither the existence of this Plan nor the fact that Shares have been awarded to an individual on any         occasion shall give such individual any right, entitlement or expectation that he has or will in future         have any such right, entitlement or expectation to participate in this Plan by being awarded Shares on         any other occasion.   11.6   The  rights  or  opportunity  granted  to  a  Participant  in  relation  to  Plan  Shares  shall  not  give  the         Participant any rights or additional rights to compensation or damages in consequence of either:-          11.6.1     the Participant giving or receiving notice of termination of his office or employment ; or          11.6.2     the loss or termination of his office or employment with the Company or any present or                    past Subsidiary or Associated Company for any reason whatsoever,          whether or not the termination (and/or giving of notice) is ultimately held to be wrongful or unfair.   11.7   A Participant shall not be entitled to any compensation or damages for any loss or potential loss which         he  may  suffer  by  reason  of  being  unable  to  acquire  or  retain  Plan  Shares,  or any  interest  in  Plan         Shares in consequence of:-          11.7.1     the Participant  giving  or  receiving  notice  of  termination  of  his  office  or  employment                    (whether or not the termination (and/or giving of notice) is ultimately held to be wrongful                    or unfair);      LMF/UKDP/UKM/92357982.1                                                                         8   

 

         11.7.2     the loss or termination of his office or employment with the Company or any present or                    past Subsidiary or Associated Company for any reason whatsoever (whether or not the                    termination is ultimately held to be wrongful or unfair);          11.7.3     the exercise (or non-exercise) by the Directors of any discretion in accordance with any                    Rule of this Plan,          or for any other reason.   12.    PROPER LAW          The Plan shall be subject to the laws of England and Wales and the Company and the Trustee and all         Participants shall submit to the exclusive jurisdiction of the Courts of England and Wales in relation to         any matter concerning the Plan or the rights or entitlement of any person under the Plan.               LMF/UKDP/UKM/92357982.1                                                                         9   

 

                                   PART B: PARTNERSHIP SHARES   13.    ISSUE OF INVITATIONS TO ENTER INTO A PARTNERSHIP SHARE AGREEMENT   13.1   The Company may from time to time invite every Plan Employee to enter into a Partnership Share         Agreement under which:-          13.1.1     such Employee agrees to one or more deductions being made from his Salary (before                    deduction  of  income  tax  and  NICs  under  PAYE)  for  the  acquisition  of  Shares  on his                    behalf to be held in the Plan ("Partnership Shares"); and          13.1.2     the Company undertakes to arrange for Partnership Shares to be acquired by the Trustee                    on behalf of such person in accordance with the Plan.   13.2   If  the  terms  of  such  Partnership  Share  Agreement  (as is  mentioned  in  Rule 13.1)  do  not  differ         materially from the terms of any subsisting Partnership Share Agreement, then no such invitation need         be  issued  to  any  Plan  Employee  who  is  already  party  to  such  a  subsisting  Partnership  Share         Agreement.   13.3   If the terms of such Partnership Share Agreement (as is mentioned in Rule 13.1) differ in any material         respect from the terms of any subsisting Partnership Share Agreement , then the Company shall on         that occasion invite each of those Plan Employees who is already party to a subsisting Partnership         Share Agreement either:-          13.3.1     to  give  notice  of  withdrawal  from  such  subsisting  Partnership  Share  Agreement  (as                    mentioned in Rule 29) and enter into a fresh Partnership Share Agreement; or          13.3.2     if the difference relates only to an increase in the maximum amount of deductions from                    Salary specified by the Directors (as mentioned in Rule 17), to vary the amount of  the                    deductions authorised to be made under such subsisting Partnership Share Agreement                    (as mentioned in Rule 18).   14.    ENTRY INTO A PARTNERSHIP SHARE AGREEMENT          Each Plan Employee who wishes to enter into a Partnership Share Agreement in response to such an         invitation shall, within the period of 14 days after such notice is given, or such further period as the         Company may allow, complete and return to the Company (or such other person as the Company may         direct)  in  such  form  as  the  Company  may specify  (which  may  be  in  writing  or  electronic  form) a         Partnership Share Agreement.   15.    QUALIFYING PERIOD OF EMPLOYMENT   15.1   The Directors may determine that a Plan Employee shall be eligible to have Shares acquired by the         Trustee on his behalf on any occasion only if he has, throughout such period as the Directors shall         specify, held continuous employment with a Qualifying Company.   15.2   Any such Qualifying Period shall:-          15.2.1     if  a  Participant's  deductions  from  Salary  are  to  be  accumulated  as  mentioned  in  Rule                    23.4, be a period of not more than 6 months ending with the start of the Accumulation                    Period;          15.2.2     if not, be a period of not more than 18 months ending on the day on which the deduction                    is made from the Participant's Salary; and          15.2.3     be  the  same  for  all  Plan  Employees  in  relation  to  acquisitions  of  Shares  on  the  same                    occasion.      LMF/UKDP/UKM/92357982.1                                                                        10   

 

  16.    AUTHORITY TO MAKE DEDUCTIONS FROM SALARY          A Partnership Share Agreement shall specify:-   16.1   the  amount  (or  percentage  of  the  amount  of  Salary  from  which  such  deduction  is made)  which the         Plan Employee authorises to be deducted from his Salary each month; and   16.2   at what intervals such deductions shall be made.   17.    INDIVIDUAL LIMIT ON DEDUCTIONS FROM SALARY   17.1   The amount deducted from a Participant's Salary in any Tax Year shall not exceed:-          17.1.1     10 per cent of the Participant's Salary for the Tax Year or, if such deductions are to be                    accumulated  within  successive  Accumulation  Periods,  10  per  cent  of  the  total  of  the                    Participant's Salary paid during the Accumulation Period; and          17.1.2     £1,500          or such other percentage or amount as is stated in Schedule 2 to be the maximum which may be so         deducted.   17.2   Any  amount  deducted  in  excess  of  that  allowed  by  Rule 17.1 shall  be  paid  over  to  the  Participant,         subject to deduction of income tax and NICs under PAYE, as soon as is practicable.   17.3   The minimum amount to be deducted pursuant to a Partnership Share Agreement on any occasion         shall:-          17.3.1     be determined by the Directors and specified in the Partnership Share Agreement;          17.3.2     be not greater than £10; and          17.3.3     be the same in relation to all Partnership Share Agreements entered into in response to                    invitations issued on the same occasion.   18.    VARIATION BY PARTICIPANTS OF AMOUNTS DEDUCTED          A  Participant  may  only  be  a  party  to  one  Partnership  Share  Agreement  authorising  one or  more         deductions from his Salary in any given month, but the Directors may from time to time, and subject to         Rule 17.1 and  the  terms  of  the  relevant  Partnership  Share  Agreement,  agree  to  any  request  by  a         Participant to vary the amount of the deductions authorised to be made.   19.    TERM OF A PARTNERSHIP SHARE AGREEMENT          The  authority  to  make  deductions  from  Salary  granted  by  a  Participant  pursuant  to  a  Partnership         Share Agreement shall lapse upon the occurrence of any of the events specified in Rule 23.6 or, if         earlier, upon the effective date of a Participant's withdrawal from a Partnership Share Agreement as         mentioned in Rule 29.   20.    NOTICE OF EFFECT OF DEDUCTIONS ON BENEFITS AND TAX CREDITS          Every  Partnership  Share  Agreement  shall contain  a  notice  under  paragraph  48  of  Schedule  2         containing information prescribed by regulations made by H M Revenue & Customs as to the possible         effect of deductions on a Plan Employee's entitlement to social security benefits and tax credits.      LMF/UKDP/UKM/92357982.1                                                                        11   

 

  21.    NOTICE TO STOP DEDUCTIONS   21.1   A Participant may at any time give notice in writing to the Company directing the Company to procure         that deductions being made from his Salary pursuant to a Partnership Share Agreement are stopped .   21.2   If  a  Participant  has  given  a  notice  pursuant  to  Rule 21.1,  he  may  (on  one  occasion  only  in  any         Accumulation Period) subsequently give notice in writing to the Company directing the Company to         procure that deductions are again made pursuant to that Partnership Share Agreement.   21.3   Unless a Participant specifies a later date in any such notice, the Company shall procure that:-          21.3.1     within 30 days of receiving a notice given pursuant to Rule 21.1, no further deductions                    are so made; or          21.3.2     if  a  notice  is given  pursuant  to  Rule 21.2,  the  first  deduction  made  thereafter  shall  be                    made not later than the date on which the first deduction is due to be made under the                    relevant Partnership Share Agreement more than 30 days after receipt of such notice.   21.4   A Participant may not make up any deduction that has been missed in consequence of having given         any such notice.   22.    PARTNERSHIP SHARE MONEY TO BE HELD BY THE TRUSTEE   22.1   Partnership Share Money shall be paid to the Trustee as soon as is practicable after it is deducted         from a Participant's Salary.   22.2   The Trustee shall hold such monies on behalf of, and on trust for the benefit of, such Participant and         shall apply such monies in acquiring Partnership Shares on the Participant's behalf.   22.3   A Participant's Partnership Share Money shall be deposited by the Trustee in an account with a Bank.   22.4   If such account pays interest, the Trustee shall account for such interest to the Participant.   22.5   Participants' Partnership Share Monies shall either:-          22.5.1     be applied by the Trustee in acquiring Shares on behalf of each Participant on the date                    set by the Trustee (which shall be the same date in relation to all Participants) being a                    date within 30 days after each deduction is made; or          22.5.2     be  accumulated  by  the  Trustee  within  each  successive  Accumulation  Period  (as                    mentioned in Rule 23) and be applied in acquiring Shares on behalf of each Participant                    on  the  date  set  by  the  Trustee  (which  shall  be  the  same date  in  relation  to  all                    Participants),  being  a  date within  30  days  after  the  end  of  the  relevant  Accumulation                    Period.   23.    ACCUMULATION PERIODS   23.1   If  the  Directors  determine  that  the  Plan  is  to  be  operated  using  an  Accumulation  Period  instead  of         monthly purchase, the first Accumulation Period shall begin on the first date (after such determination         has taken effect) on which the first deductions from Salary are made and successive Accumulation         Periods shall each begin on the date on which the first deductions from Salary are made after the end         of the last Accumulation Period.   23.2   Accumulation  Periods  relating  to  deductions  from  Salaries  made  pursuant  to  all  Partnership  Share         Agreements entered into in response to invitations issued on the same occasion shall be of the same         length.      LMF/UKDP/UKM/92357982.1                                                                        12   

 

  23.3   Subject  to  Rule 23.2,  successive  Accumulation  Periods  may  vary  in  length,  but  no  Accumulation         Period shall exceed 12 months.   23.4   A Participant's Partnership Share Money first deducted within a given Accumulation Period shall be         accumulated  by  the  Trustee  with  all  other  amounts  of  that  Participant's  Partnership  Share  Money         deducted from Salary within that Accumulation Period.   23.5   If, after the end of an Accumulation Period, the Shares which would otherwise be acquired on behalf         of  Participants  in  accordance  with  Rule 22.5.2 would  not  then  satisfy  the  requirements  of  Part  4  of         Schedule 2 the Trustee shall, as soon as practicable, return to each Participant (subject to deduction         of  income  tax  and  NICs under  PAYE)  all  of  the  Partnership  Share  Money  held on  behalf  of  such         Participant.   23.6   All  subsisting  Accumulation Periods  shall  immediately  come  to  an  end  (and,  except  as  provided  by         Rule 31.2, no new Accumulation Period shall thereafter begin):-          23.6.1     with effect from the date specified in a notice to terminate the operation of the Plan given                    in accordance with Rule 9.1;          23.6.2     if notice is given to shareholders of the Company of a resolution being proposed for the                    voluntary winding-up of the Company;          23.6.3     upon the commencement of a winding-up of the Company;          23.6.4     if a general offer is made to acquire the whole of the issued ordinary share capital of the                    Company which is made on a condition such that if it is satisfied the person making the                    offer will have Control of the Company;          23.6.5     if a general offer is made to acquire all the shares in the Company of the same class as                    the Shares;          23.6.6     if  any  person  becomes  entitled  or  bound  to  acquire  shares  in  the  Company  under                    sections 974 to 991 of the Companies Act 2006; or          23.6.7     with effect from the date on which the Directors specify in a notice in writing given to all                    Participants pursuant to Rule 31.1.   23.7   If  an  Accumulation  Period  comes  to  an  end  pursuant  to  Rule 23.6,  and  if  the  Partnership  Share         Agreement so provides, the Trustee shall , as soon as practicable, pay to each Participant, subject to         deduction  of income  tax  and  NICs  under  PAYE,  the  amount  of  that  Participant's Partnership  Share         Money deducted from Salary in that Accumulation Period.   23.8   Where  a  Participant  ceases  to  be  in  Relevant  Employment  during  an  Accumulation  Period,  any         Partnership Share Money deducted in that Accumulation Period shall be paid over to him (subject to         deduction of income tax and NICs under PAYE) as soon as practicable instead of being applied in         purchasing Shares on his behalf.   24.    CONNECTED SHARE INCENTIVE PLANS   24.1   An individual shall be entitled to have Shares acquired on his behalf pursuant to this Part B in any Tax         Year, if in that Tax Year he has had shares awarded to him or acquired on his behalf (or would have         had shares awarded to him but for his failure to meet any performance target set in relation to such         award) under any connected Schedule 2 SIP PROVIDED THAT:-          24.1.1     an individual shall not be entitled to participate simultaneously in connected Schedule 2                    SIPs; and          24.1.2     the  limit  on  a  Participant's  contributions  towards  the  purchase  of  Partnership  Shares                    referred to in Rule 17.1 shall apply as if the Plan and the other connected Schedule 2                    SIP(s) in which the individual participates in the same Tax Year were one plan.   24.2   For purposes of Rule 24.1 a Schedule 2 SIP is a "connected Schedule 2 SIP" if it is established by the         Company or a Connected Company.      LMF/UKDP/UKM/92357982.1                                                                        13   

 

  25.    ACQUISITION OF PARTNERSHIP SHARES   25.1   Subject  to  Rule 25.2,  the  Trustee  shall  apply  Participants'  Partnership  Share  Money  in  acquiring         Shares on the Acquisition Date and shall do so at a price per Share equal to the Market Value of a         Share on that date.   25.2   If a Participant's deductions from Salary are to be accumulated as mentioned in Rule 23.4, the Trustee         shall  on  each  occasion  on  which  a  Participant's Partnership  Share  Money  is  applied  in  acquiring         Shares, do so at a price per Share determined as specified in the applicable Partnership Agreement         pursuant to paragraph 52 of Schedule 2, being any of the following:-          25.2.1     the lesser of the Market Value of a Share on the first day of the relevant Accumulation                    Period and the Market Value of a Share on the Acquisition Date;          25.2.2     the Market Value of a Share on the first day of the relevant Accumulation Period; or          25.2.3     the Market Value of a Share on the Acquisition Date.   25.3   If the application of Rules 25.1 and 25.2 would result in the acquisition of a fraction of a Share, the         number  of  Shares  actually  acquired  on  that  occasion  shall  be  rounded  down  to  the  nearest  whole         number.   25.4   If  a  Participant,  having  entered  into  a  Partnership  Share  Agreement  ,  ceases  to  be  in  Relevant         Employment  at  any  time  during  the  Acquisition  Period  in  relation  to  an  acquisition  of  Partnership         Shares by the Trustee on his behalf , then he or she is to be treated, for the purposes of this Plan, as         not  ceasing  to  be  in  Relevant  Employment  until  immediately  after  Partnership  Shares  have  been         acquired by the Trustee on his or her behalf pursuant to this Rule 25 so that:-          25.4.1     the  Trustee  shall  apply  the Participant's  Partnership  Share Money  in  acquiring Shares;                    but          25.4.2     such Partnership Shares are to be treated, immediately after such acquisition, as ceasing                    to be subject to the Plan.   26.    SCALING BACK OF PARTNERSHIP SHARES   26.1   The Directors may determine and specify that the number of Shares which the Trustee acquires on         behalf of a Participant on any occasion shall be restricted to such maximum number as the Directors         shall notify to the Participant:-          26.1.1     before the deduction from Salary is made; or          26.1.2     if such deductions from Salary are to be accumulated as mentioned in Rule 23.4, before                    the beginning of the relevant Accumulation Period.   26.2   Each  Participant's  Partnership  Share  Agreement  shall  contain  an  undertaking  by  the  Company to         notify the Participant from time to time as appropriate of the maximum number of Shares which may         be available to be acquired on behalf of Participants (in accordance with Rule 26.1).   26.3   If  on  any  occasion  the  number  of  Shares which  could  otherwise  be  acquired  with  a  Participant's         Partnership  Share  Money  is  greater  than  the  maximum  number  specified  pursuant  to  Rule 26.1 (if         any), then the number of Shares which the Trustee acquires on behalf of each Participant shall be         reduced accordingly.      LMF/UKDP/UKM/92357982.1                                                                        14   

 

  27.    CARRY-FORWARD OF SURPLUS PARTNERSHIP SHARE MONEY          If, after Partnership Share Money has been applied in the acquisition of Shares on any occasion, there         remains a surplus of unused cash, such surplus may, if the Participant has so agreed in the Partners         hip Share Agreement , be retained by the Trustee and added to the Partnership Share Money which is         so applied on the next occasion on which Shares are acquired on behalf of the Participant but shall         otherwise be returned to the Participant (subject to deduction of income tax and NICs under PAYE).   28.    NOTIFICATION OF ACQUISITION OF PARTNERSHIP SHARES   28.1   As soon as practicable after any Partnership Shares have been acquired on behalf of a Participant,         the Trustee shall notify the Participant of:-          28.1.1     the number of Shares so acquired;          28.1.2     the description of such Shares;          28.1.3     whether  the  Shares  are  subject  to  any  Restrictions  and,  if  so,  the  nature  of  these                    Restrictions;          28.1.4     the amount of Partnership Share Money applied by the Trustee in acquiring such Shares;          28.1.5     the price per Share at which such Shares were acquired and the basis upon which it was                    determined; and          28.1.6     the  amount  of  any  surplus  Partnership  Share  Money  being  carried  forward  or  to  be                    returned to the Participant (as referred to in Rule 27).   29.    WITHDRAWAL FROM A PARTNERSHIP SHARE AGREEMENT   29.1   A  Participant  may  withdraw  from  a  Partnership  Share  Agreement  by  giving  notice  in  writing  to  the         Company at any time and, unless the Participant specifies a later date in such notice, the Company         shall procure that such withdrawal takes effect within 30 days of when such notice is received by the         Company.   29.2   The Company may direct that, to be effective, any such notice must be given to such person (as agent         for the Company) and in such form as the Company shall specify.   29.3   If  a  Participant withdraws  from  a  Partnership  Share  Agreement  with  effect  from  any  date,  the         Company shall procure that any Partnership Share Money which by that date has not been applied in         the acquisition of Shares is paid to the Participant (subject to deduction of income tax and NICs under         PAYE) as soon as is practicable after that date.   30.    RETURN OF PARTNERSHIP SHARE MONEY UPON THE PLAN CEASING TO BE A SCHEDULE 2         SIP OR TERMINATION          If at any time notice to terminate the Plan is issued pursuant to Rule 9, any Partnership Share Money         held on behalf of a Participant shall be paid over to him as soon as is practicable after such notice of         termination is given to the Trustee. If the Plan is not to be a schedule 2 SIP (as defined in Schedule 2)         by virtue of paragraph 81H or 81I of Schedule 2, any Partnership Shares Money held on behalf of a         Participant must be paid to him as soon as practicable after the Relevant Day (as defined in paragraph         56 of Schedule 2) (subject to deduction of income tax under PAYE and NICs).   31.    SUSPENSION OF DEDUCTIONS FROM SALARY   31.1   The Directors may give notice to all Participants that, on and with effect from a date specified in the         notice (being a date which is not earlier than the date on which such notice is given), no further deduct         ions  from  Salary  shall  be  made  for  the  purposes  of  enabling  Participants  to  acquire  Partnership         Shares and all existing Accumulation Periods shall come to an end SAVE THAT:-          31.1.1     such  notice  shall  only be  given  if  an  event  or  events  have  occurred  which  cause  the                    Directors acting fairly and reasonably to consider that such suspension is appropriate;      LMF/UKDP/UKM/92357982.1                                                                        15   

 

         31.1.2     the notice shall specify the event or events which has or have caused the Directors to                    give such notice; and          31.1.3     no such notice shall have the effect of avoiding the obligation of the Company to apply a                    Participant's  Partnership  Share  Money  deducted  from  Salary  before  the  date  on  which                    such notice has effect in acquiring Shares as mentioned in Rule 25.1.   31.2   If notice to suspend the operation of the Plan is given to all Participants as mentioned in Rule 31.1,         then the Directors may at any time thereafter give notice to all Participants that on and with effect from         a date specified in such notice (being a date which is not earlier than the date on which such notice is         given)  deductions  from  Salary  will  be  resumed  in  accordance  with  each  Participant's  Partnership         Share Agreement.   31.3   If deductions from Salary are resumed as mentioned in Rule 31.2 then, if a Participant's deductions         from Salary are to be accumulated, a new Accumulation Period shall begin on the date on which the         first deductions from Salary are then made.           LMF/UKDP/UKM/92357982.1                                                                        16   

 

                                     PART C: MATCHING SHARES   32.    ISSUE OF INVITATIONS TO ACCEPT AN AWARD OF MATCHING SHARES          The Directors may invite all those Plan Employees on whose behalf it is expected that the Trustee will         acquire Partnership Shares on any day, to accept an additional award of Matching Shares on that day         in accordance with the provisions of this Part C of the Plan.   33.    REQUIREMENTS FOR MATCHING SHARES          Matching Shares must be:-   33.1   Shares of the same class and carrying the same rights as the Partnership Shares with which they are         matched;   33.2   awarded  on  the  same  day  as  the  Acquisition  Date for  the  Partnership  Shares  with  which  they  are         matched ; and   33.3   awarded to all Participants on exactly the same basis.   34.    LIMIT ON MATCHING SHARES   34.1   The number of Matching Shares to be awarded to a Participant on any occasion shall be a multiple of         the number of Partnership Shares acquired on behalf of the Participant on that occasion.   34.2   Such multiple:-          34.2.1     shall not exceed 2;          34.2.2     shall be specified in the Partnership Share Agreement; and          34.2.3     may be varied by the Directors at any time before the corresponding Partnership Shares                    are acquired PROVIDED THAT all Participants are notified of any such variation before                    the corresponding Partnership Shares are acquired on their behalf .   35.    CARRY-FORWARD OF UNMATCHED PARTNERSHIP SHARES          If, on an Award Date, the Trustee does not then acquire on behalf of any given Participant a sufficient         number of Partnership Shares to qualify that Participant for an award of a whole number of Matching         Shares  (whether  in  consequence  of  an insufficiency  of Partnership  Share  Money  or  otherwise),  the         Trustee  shall,  on  the  next  occasion  on  which  Partnership  Shares  are  acquired  on  behalf  of  that         Participant , award to that Participant a number of Matching Shares calculated on the basis that the         number  of  Partnership  Shares  acquired  on  that  next  occasion  is  increased  by  the  number  of         Partnership Shares previously acquired on behalf of such Participant but which have not so far been         counted in calculating the Participant's entitlement to any Matching Shares.   36.    AGREEMENT TO ACCEPT AN AWARD OF MATCHING SHARES          A Participant shall not be entitled to an award of Matching Shares on any occasion unless he has first         agreed with the Company (by entering into a Partnership Share Agreement) to accept and be bound         by the provisions of this Part C of the Plan.   37.    HOLDING PERIOD FOR MATCHING SHARES   37.1   The  Directors  shall,  in  relation  to  Matching  Shares  ,  specify  in  the  Partnership  Share  Agreement  a         Holding Period throughout which a Participant shall be bound (except as mentioned in Rule 37.3):-          37.1.1     for so long as the Participant remains in Relevant Employment, to permit his Matching                    Shares to remain in the hands of the Trustee; and          37.1.2     not  to  assign,  charge  or  otherwise  dispose  of  his  beneficial  interest  in  such  Matching                    Shares.      LMF/UKDP/UKM/92357982.1                                                                        17   

 

  37.2   The Holding Period shall be a period, of not less than 3, nor more than 5, years beginning with the         Award Date, and shall be the same for all Participants in relation to Matching Shares awarded on any         occasion.   37.3   A  Participant's  obligation  to  permit  his  Matching  Shares  to  remain  in the  hands  of  the  Trustee         throughout the Holding Period (as mentioned in Rule 37.1) shall be subject to the following exceptions         :-          37.3.1     the  Trustee  may  at  any  time  dispose  of  such a  Participant's  Plan  Shares  as  may  be                    necessary to realise sufficient monies to satisfy any obligation under PAYE as mentioned                    in Rule 70.1; and          37.3.2     a Participant may during the Holding Period direct the Trustee to deal with any of such                    Participant's Plan Shares as mentioned in Rule 65.   38.    NOTIFICATION OF AWARD   38.1   As soon as practicable after any Matching Shares have been awarded by the  Trustee, the Trustee         shall notify each Participant to whom Matching Shares have been so awarded on that occasion of:-          38.1.1     the number of Shares awarded to him;          38.1.2     the description of such Shares;          38.1.3     whether  the  Shares  are  subject  to  any  Restrictions  and,  if  so,  the  nature  of  these                    Restrictions;          38.1.4     the Market Value of such Shares as at the Award Date; and          38.1.5     the date on which the Holding Period ends.   39.    FORFEITURE OF MATCHING SHARES          If a Participant's Partnership Share Agreement so provides, his Matching Shares shall be at risk of         forfeiture as provided in Rule 61.          LMF/UKDP/UKM/92357982.1                                                                        18   

 

                                       PART D: FREE SHARES   40.    AWARD OF FREE SHARES          The Trustee, acting with the prior consent of the Directors, may from time to time award Free Shares         in accordance with this Part D of the Plan on any such day as the Trustee and the Company shall         agree to every Eligible Employee.   41.    CONNECTED SHARE INCENTIVE PLANS   41.1   An individual shall be entitled to be awarded Free Shares in any Tax Year if in that Tax Year he has         participated in a connected Schedule 2 SIP (or would have participated and had shares awarded to         him  but  for  the  failure  to  meet  any  performance  target  set  in  relation  to  such  award) PROVIDED          THAT:-          41.1.1     an individual shall not be entitled to participate simultaneously in connected Schedule 2                    SIPs; and          41.1.2     the  limit  on  a Participant's  participation in  Free Shares  in  Rule 48 shall  apply  as  if  the                    Plan and the other connected Schedule 2 SIP(s) in which the individual participates in the                    same Tax Year were one plan.   41.2   For the purposes of Rule 41.1, a Schedule 2 SIP is a "connected Schedule 2 SIP" if it is established         by the Company or a Connected Company.   42.    QUALIFYING PERIOD OF EMPLOYMENT   42.1   The Directors may determine that a Plan Employee shall be eligible to have Free Shares awarded to         him on any such occasion only if he has, throughout such period ending on the Award Date as the         Directors shall specify, held continuous employment with a Qualifying Company.   42.2   Any such Qualifying Period shall:-          42.2.1     be of not more than 18 months; and          42.2.2     be  the  same  for  all  Plan  Employees in  relation  to  awards  of  Shares  on  the  same                    occasion.   43.    ISSUE OF INVITATIONS TO ACCEPT AN AWARD OF FREE SHARES   43.1   On any occasion on which the Trustee intends to award Free Shares, the Company shall invite every         Plan Employee to participate in the Plan by:-          43.1.1     accepting an award of Free Shares (if or to the extent that such Plan Employee is then                    entitled pursuant to the rules of the Plan to an award of any Free Shares) on that and on                    any subsequent occasion on which any Free Shares are to be awarded ; and          43.1.2     permitting such Free Shares to remain in the hands of the Trustee as mentioned in Rule                    53.   43.2   No  such  invitation  need  be  issued  to  any  Plan  Employee  who  is  already  party  to  a  subsisting         Participation Agreement.   43.3   Each  Plan  Employee  who wishes  to  accept  any  or  all such  awards  of  Free  Shares  shall  within  the         period  of  14  days  after  such  notice  is  given,  or  such  longer  period  as  the  Company  shall  allow,         complete and return to the Company (or such other person as the Company may direct) in such form         as the Company may specify (which may be in writing or in electronic form) a Participation Agreement.      LMF/UKDP/UKM/92357982.1                                                                        19   

 

  44.    PLAN EMPLOYEES' RIGHT NOT TO ACCEPT AN AWARD OF FREE SHARES   44.1   A Plan Employee may, by giving notice in writing to the Trustee before an Award Date, direct that Free         Shares shall not be awarded to him on that, or on any later, Award Date.   44.2   Such a notice may be revoked by the Plan Employee concerned giving notice in writing to that effect         to the Trustee.   45.    NO MATCHING OF FREE SHARES          An  Eligible  Employee's  entitlement  to  any  Free  Shares  shall  not  be  made  conditional  upon  such         person holding or acquiring any other Shares.   46.    TOTAL NUMBER OF FREE SHARES TO BE AWARDED          The aggregate number of Free Shares to be awarded to all Eligible Employees on any occasion shall         be determined by the Directors.   47.    NUMBERS OF FREE SHARES TO BE AWARDED TO EACH ELIGIBLE EMPLOYEE          The number of Free Shares to be awarded by the Trustee to each Eligible Employee on an Award         Date shall be determined by the Directors in accordance with Rules 50 to 54.   48.    LIMIT ON THE VALUE OF FREE SHARES AWARDED IN ANY TAX YEAR          The Market Value as at the Award Date (or, if more than one, the respective Award Dates) of Free         Shares awarded to a Participant in any Tax Year shall not exceed £3,000 or such other amount as is         stated in Schedule 2 to be the maximum value of shares which may be so awarded.   49.    ALLOCATION OF FREE SHARES BY REFERENCE TO PERFORMANCE   49.1   The  Directors  may  stipulate  that  some  or  all  of  the  Free  Shares  which  may  be  awarded  on  any         occasion shall be so awarded (if at all) by reference to performance (as mentioned below) over such         period as the Directors shall determine.   49.2   A determination by reference to performance of the number of Shares (if any) to be awarded to each         Eligible  Employee  on  any  Award  Date shall  be  made  only  according  to  either  of  the  two  methods,         Method One and Method Two, mentioned in Rules  50 and 51 or such other method or methods as         may be permitted pursuant to Schedule 2 from time to time.   49.3   In  this  Part D,  references  to  "performance"  shall  be  taken  as  referring  to  the  performance  of  each         given  Performance  Unit  determined  by  reference  to  such  fair  and  objective  measures  of  the         performance of the Performance Units to which they are applied being measures based on business         results or such other objective criteria as the Directors may determine.   49.4   The Company shall procure that:-          49.4.1     each Eligible Employee is notified of such performance measures and targets as will be                    used to determine the number of Shares awarded to him on any Award Date; and          49.4.2     all  Plan  Employees  are  notified,  in  general  terms,  of  the  performance  measures  and                    targets  to  be  used  to  determine  the  number  of  Shares  to  be  awarded  to  each  Eligible                    Employee on such Award Date SAVE THAT there may be excluded from such notice any                    information  the  disclosure  of  which  the  Directors  reasonably  consider  would  prejudice                    commercial confidentiality.   49.5   Such notices shall be given as soon as reasonably practicable.   49.6   The Directors may, by giving notice in writing to Eligible Employees, vary or waive the terms of any         performance  measures  or  performance  targets  as  will  be  used  to  determine  the  number  of  Shares         awarded to such Eligible Employees on any Award Date PROVIDED THAT:-      LMF/UKDP/UKM/92357982.1                                                                        20   

 

         49.6.1     in  consequence  of  any  such  variation  the  revised  performance  targets  are  no  more                    difficult  to  satisfy  than  would  have  been  the  performance  targets  had  the  variation  not                    been made;          49.6.2     if  different  target  levels  of performance  have  been  specified  in  relation  to  different                    Performance  Units,  the  likelihood  of  each  Performance Unit  meeting  the  revised  target                    set in relation to that Performance Unit must be no less than it would have been had the                    variation not been made; and          49.6.3     no such variation shall have effect unless an event has, or events have, occurred which                    cause the Directors , acting fairly and reasonably, to consider that a different condition                    would be a fairer measure of performance.   50.    METHOD ONE   50.1   By this method:-          50.1.1     at least 20 per cent of the Shares awarded on a given Award Date are awarded otherwise                    than by reference to performance ;          50.1.2     the balance of the Shares awarded on that Award Date are so awarded by reference to                    performance; and          50.1.3     the highest number of Shares so awarded to any Eligible Employee as mentioned in Rule                    50.1.2 above shall be not more than four times the highest number of Shares awarded on                    that Award Date otherwise than by reference to performance.   50.2   If Shares of different classes are to be awarded on any occasion , this Method One shall be applied         separately in relation to each class.   51.    METHOD TWO   51.1   By this method, the Directors may set any performance target in relation to each Performance Unit         PROVIDED THAT:-          51.1.1     if the Directors specify different target levels of performance which must be achieved as a                    condition  for  the  award  of  Shares  to  Eligible  Employees  in  different  Performance  Units                    the targets set must, at the time they are set, be comparable in terms of the likelihood of                    each Performance Unit meeting the target set in relation to that Performance Unit; and          51.1.2     the number of Shares which, in consequence of the application of this Method Two, is                    available  for  award  to  Eligible  Employees  within  a  given  Performance  Unit,  shall  be                    divided amongst  and  awarded  to  such  Eligible  Employees  on  the  same  terms  (as                    mentioned in Rule 52.2).   52.    NON-PERFORMANCE  RELATED  FREE  SHARES  TO  BE  AWARDED  ON  BASIS  OF  SAME         TERMS   52.1   If,  or  to  the  extent  that,  the  number  of  Free  Shares  which are  ,  or  may  be,  awarded  to  Eligible         Employees on any occasion is not determined by reference to performance, such Free Shares shall         be allocated amongst and awarded (if at all) to all Eligible Employees on the same terms.   52.2   For these purposes "same terms" shall be taken as referring to:-          52.2.1     each Eligible Employee being eligible to participate in the Plan (by qualifying to receive                    an award of Shares) on any occasion on the same terms; and          52.2.2     a requirement that all those Eligible Employees who do participate actually do so on the                    same terms.      LMF/UKDP/UKM/92357982.1                                                                        21   

 

  52.3   The requirement that Shares not allocated amongst and awarded to Eligible Employees by reference         to performance are so allocated and awarded on the same terms shall not be infringed by the award of         Shares by reference to an Eligible Employee's:-          52.3.1     remuneration;          52.3.2     length of service; and/or           52.3.3     hours worked          PROVIDED THAT each of those factors gives rise to a separate entitlement directly proportional to the         amount of remuneration, length of service or hours worked.   52.4   Such  requirement  shall  be  infringed  if  Shares  are  awarded  by  reference  to  factors  other  than         remuneration, length of service or hours worked .   53.    HOLDING PERIOD FOR FREE SHARES   53.1   The  Directors  shall,  in  relation  to  each  Award  Date,  specify  a  Holding  Period  throughout  which  a         Participant must be bound by contract with the Company (except as mentioned in Rule 53.3):-          53.1.1     for so long as the Participant remains in Relevant Employment, to permit his Free Shares                    to remain in the hands of the Trustee; and          53.1.2     not to assign, charge or otherwise dispose of his beneficial interest in such Free Shares .   53.2   The Holding Period must be a period of not less than 3 years nor more than 5 years, beginning with         the  Award  Date  and  shall  be  the  same in  relation  to  all  Free  Shares  awarded  on  any  given  Award         Date.   53.3   A Participant's obligation to permit his Free Shares to remain in the hands of the Trustee throughout         the Holding Period (as mentioned in Rule 53.1) shall be subject to the following exceptions:-          53.3.1     the  Trustee  may  at  any  time  dispose  of  such  a  Participant's Plan  Shares  as  may  be                    necessary to realise sufficient monies to satisfy any obligation under PAYE as mentioned                    in Rule 70.1; and          53.3.2     a Participant may during the Holding Period direct the Trustee to deal with any of such                    Participant's Plan Shares as mentioned in Rule 65.   54.    NOTIFICATION OF AWARD   54.1   As soon as practicable after any Free Shares have been awarded by the Trustee, the Trustee shall         notify each Participant to whom Free Shares have been so awarded on that occasion of :-          54.1.1     the number of Shares awarded to him;          54.1.2     the description of such Shares ;          54.1.3     whether  the  Shares  are  subject  to  any  Restrictions  and,  if  so,  the  nature  of  those                    Restrictions ;          54.1.4     the Market Value of such Shares as at the Award Date; and          54.1.5     the date on which the Holding Period ends.   55.    FORFEITURE OF FREE SHARES          If a Participant's Participation Agreement so provides, his Free Shares shall be at risk of forfeiture as         provided in Rule 61.      LMF/UKDP/UKM/92357982.1                                                                        22   

 

                PART E:  PROVISIONS   RELATING   TO  THE  HOLDING   OF PLAN  SHARES   56.    HOLDING OF PLAN SHARES   56.1   For  so  long  as  a  Participant  is  in  Relevant  Employment,  he  may,  subject  to  Rule 9 allow  his  Plan         Shares to remain held in the Plan.   56.2   All Plan Shares shall be registered in the name of the Trustee.   56.3   Except  as  otherwise  expressly  provided  by  the  rules  of  the  Plan,  the  terms  of  a  Partnership  Share         Agreement or a Participation Agreement or as required or permitted by the provisions of Schedule 2,         Plan  Shares  of  the  same  class  shall  not  receive  different  treatment  in  any  respect  from  the  other         Shares of that class.   56.4   The requirement of Rule 56.3 shall not be infringed by reason only that Shares which are newly issued         receive, in respect of dividends payable with respect to a period beginning before the date on which         they were issued, treatment less favourable than that accorded to Shares issued before that date.   56.5   Subject to Rule 67, cash dividends paid to the Trustee in respect of a Participant's Plan Shares shall         be paid to the Participant as soon as is practicable and, when making such payment, the Trustee shall         deliver to each such Participant a "tax certificate" within the meaning of sections 1104-1108 of CTA         2010.   57.    VOLUNTARY WITHDRAWAL  OF SHARES FROM THE PLAN   57.1   Except as provided by the terms of a Participation Agreement or a Partnership Share Agreement, a         Participant may at any time withdraw any or all of his Plan Shares from the Plan, and may at any time         after they have been awarded withdraw any or all of his Partnership Shares from the Plan, by:-          57.1.1     directing the Trustee in writing to transfer any or all of his Plan Shares to such Participant                    or to such other person as the Participant specifies;          57.1.2     assigning,  charging  or  otherwise  disposing  of his  beneficial  interest  in  any  of  the                    Participant's Plan Shares; or          57.1.3     directing the Trustee to dispose of any or all of the Participant's Plan Shares and account                    (or hold itself ready to account) for the proceeds to the Participant or to another person.   58.    AUTOMATIC  WITHDRAWAL  OF        PLAN  SHARES  UPON  CEASING  TO  BE  IN  RELEVANT         EMPLOYMENT          If  a  Participant  ceases  to  be  in  Relevant  Employment  then,  subject  to  Rules 25.4 or 61,  his  Plan         Shares shall thereupon automatically be withdrawn from the Plan.   59.    CONSEQUENCES OF WITHDRAWAL OF SHARES FROM THE PLAN   59.1   The provisions of this Rule 59 are subject to the provisions of Rule 70.   59.2   Whenever  a  Participant's  Plan  Shares are  voluntarily  or  automatically  withdrawn  from  the  Plan         pursuant to Rules 25.4, 57 or 58:-          59.2.1     the Trustee shall immediately cease to hold such Shares in the Plan and, if and for so                    long as the Trustee then retains any title to or interest in such Shares, the Trustee shall,                    subject to Rule 59.2.2, hold such title or interest on bare trust for the Participant otherwise                    than in the Plan;          59.2.2     the Trustee shall as soon as is practicable:-                      (a)     if the Participant has so directed the Trustee in writing before the Shares cease                             to be held in the Plan, transfer the Shares to the Participant or to such other                             person as the Participant has specified; or                      (b)     dispose  of  the  Shares  and  account  (or  hold  itself  ready  to  account)  for  the                             proceeds  (net  of  any  amount  of  income  tax  and  NICs due  under  PAYE,  and      LMF/UKDP/UKM/92357982.1                                                                        23   

 

                             reasonable  selling  costs)  to  the  Participant  or  to  such  other  person  as  the                             Participant has specified.   59.3   Unless  the  Participant  otherwise  agrees,  a  disposal  of  Shares  as  mentioned  in  Rule 57.1.3 or         59.2.2(b) shall be for the best consideration which the Trustee is able to obtain at the time of such         disposal.   59.4   References in this Rule 59 to a disposal of Shares shall be construed as including references to a         purchase by the Trustee of the beneficial interest in such Shares.   59.5   If a Participant has died, references in Rule 59.2 to the Participant shall be read as references to his         Personal Representatives.   60.    NO LIABILITY FOR LOSS OCCASIONED BY DELAY          In giving effect to any such direction as mentioned in Rules 57.1.1 and 59.2.2 neither the Trustee nor         the Company shall be liable to the Participant (or any other person) for any loss occasioned by delay         on  the  part  of  the  Company  or  the  Trustee  in  giving  effect  to  such  direction  or  procuring  a  sale  or         transfer  of  any  of  a Participant's  Plan  Shares  (whether  or  not  such  delay  is  occasioned  by  the         Company's  obligations  to  comply  with  the  requirements  of  the  New  York  Stock  Exchange  or         otherwise).   61.    FORFEITURE OF FREE AND MATCHING SHARES   61.1   The  following  provisions  of  this  Rule 61 shall  apply  in  relation  to  a  Participant's  Free  or  Matching         Shares  only  if  the  Participant's  Participation  Agreement  or,  as  the  case  may  be,  the  Participant's         Partnership Share Agreement, pursuant to which such Free or Matching Shares were so awarded, so         provides.   61.2   If,  at  any  time  within  the  period  of  3  years  (or  such  lesser  period  (if  any)  as  the  Directors  may         determine and notify to Participants at the time of an award of Free or Matching Shares) beginning         with  the  Award  Date  in relation  to  any  of  a  Participant's  Free  Shares  or  Matching  Shares,  the         Participant  ceases  to  hold  Relevant  Employment  (otherwise  than  in  any  of  the  circumstances         mentioned in Rule 61.3), then his beneficial interest in all of the Free and Matching Shares awarded to         him upon that Award Date shall thereupon be transferred to and become vested in the Trustee for no         consideration.   61.3   The circumstances referred to in Rule 61.2 are:-          61.3.1     injury or disability;          61.3.2     dismissal by reason of Redundancy;          61.3.3     a transfer to which the  Transfer of Undertakings (Protection of Employment) Regulations                    2006 apply;          61.3.4     a change of Control or other circumstances ending the Associated Company status of          61.3.5     the company by which he is employed;           61.3.6     retirement; or          61.3.7     death.   61.4   If,  at  any  time  within  the  period  of  3  years  (or  such  lesser  period  (if  any)  as  the  Directors  may         determine and notify to Participants at the time of an award of Matching Shares) beginning with an         Award Date in relation to any of a Participant's Matching Shares, the Participant withdraws from the         Plan any of the Partnership Shares in respect of which such Matching Shares were so awarded to him         on  that  Award  Date,  then  his  beneficial  interest  in  those  Matching  Shares  shall  thereupon  be         transferred to and become vested in the Trustee for no consideration.   61.5   If,  at  any  time  within  the  period  of  3  years  (or  such  lesser  period  (if  any)  as  the  Directors  may         determine and notify to Participants at the time of an award of Free or Matching Shares) beginning         with the Award Date in relation to any of a Participant's Free Shares or Matching Shares, any such         Free Shares or Matching Shares are withdrawn from the Plan (otherwise than in consequence of the      LMF/UKDP/UKM/92357982.1                                                                        24   

 

         Participant ceasing to hold Relevant Employment in any of the circumstances mentioned in Rule 61.3)         then his beneficial interest in all of the Free and Matching Shares so withdrawn from the Plan shall         thereupon be transferred to and become vested in the Trustee for no consideration .   61.6   The  same  provisions  for  forfeiture  shall  apply  (if  at  all)  in  relation  to  all  Free  or  Matching  Shares         awarded on the same occasion.   61.7   For  the  avoidance  of  doubt  ,  Partnership  Shares  and  Dividend  Shares  shall  not  be  subject  to  any         provisions for forfeiture.   62.    PROVISIONS OF SHAREHOLDERS ' INFORMATION TO PARTICIPANTS          The  Company  shall  procure  that  copies  of  any  or  all  such  notices,  circulars  and  other  documents         (except  for  proxy  forms)  sent  to  the  holders of  ordinary  shares in  the  Company  shall  be  sent  to all         Participants who have Shares held in the Plan.   63.    VOTING RIGHTS ATTACHING TO PLAN SHARES   63.1   In relation to any matter on which the Trustee has a right or opportunity as a member of the Company         to vote or to exercise any other rights, the Trustee may, but shall not be obliged to, seek irrevocable         directions from each Participant as to the manner in which the Trustee should exercise such rights in         respect of a Participant's Plan Shares.   63.2   The Trustee shall comply with such directions and if, before such time as may be specified in writing         by the Trustee, the Trustee does not receive directions in respect of the exercise of voting or other         rights  attaching  to  any  Plan  Shares,  then,  except  as  otherwise  provided  in Rule  the  Trustee  shall         refrain from exercising any such rights.   63.3   The Trustee shall not be entitled to vote on a show of hands on a particular resolution in respect of         Plan  Shares held on behalf of Participants unless all directions received from those Participants who         have given directions in respect of that resolution are identical.   63.4   The Trustee shall not be under any obligation to call for a poll, and in the event of any poll the Trustee         shall in relation to Plan Shares vote only in accordance with the directions of Participants.   64.    RIGHTS ISSUES   64.1   If the Company makes an offer or invitation conferring any rights upon its member s to acquire against         payment additional shares, securities or rights in the Company, the Trustee shall allocate such rights,         shares  or securities  amongst  the  Participants  concerned  in  direct  proportion  to  the  number  of  Plan         Shares respectively held by the Trustee on behalf of each Participant and, if such allocation shall give         rise to a fraction of a share, security or right or a transferable unit the Trustee shall round down to the         next whole unit and shall aggregate the fractions not so allocated and use best endeavours to sell any         rights or units which are not so allocated and distribute the net proceeds of sale (after deducting any         expenses of sale and any taxation which may be payable) proportionately amongst the Participants         whose allocation was rounded down, provided that any sum of less than £3 otherwise distributable to         a particular Participant may be retained by the Trustee.   64.2   If the Company makes an offer or invitation conferring any rights upon its members to acquire against         payment  additional  shares, securities  or  rights  of  any  description in  the  Company  the  Trustee  shall         comply with any direction from a Participant concerning the exercise or sale of any rights attributable         to the Participant's Plan Shares (including any general direction given) PROVIDED THAT the Trustee         shall not be required to exercise any such rights except to the extent that they have been provided         with the full amount payable (if any) on such exercise either by the Participant concerned or, with his         authority, out of the net proceeds of the sale, nil paid, of another part of the rights attributable to that         Participant's Plan Shares .   64.3   If no such direction as is mentioned in Rule 64.2 is received at least 7 business days before the last         day on which such rights may be exercised, the Trustee shall take no action in relation to such rights.   64.4   If a Participant so directs the Trustee at least 7 business days before the last day on which such rights         may  be  exercised,  the  Trustee  shall  exercise  a  proportion  of  such  rights  by  selling  sufficient  of  the         rights, nil paid, so that out of the net proceeds of sale, the balance of the rights may be exercised .      LMF/UKDP/UKM/92357982.1                                                                        25   

 

  64.5   Any shares, securities or rights acquired by the Trustee on behalf of a Participant upon the exercise of         such rights as are mentioned in Rule 64.2 and which are conferred in respect of all ordinary shares in         the Company and are acquired in the manner mentioned in Rule 64.4 shall, for the purposes of this         Part E, be held by the Trustee as Plan Shares and be deemed to have been awarded to, or acquired         by  the  Trustee  on  behalf of,  the  Participant  in  the  same  way  and  at  the  same time  as  were  the         Participant's Plan Shares in respect of which such rights were conferred.   64.6   Subject to Rule 64.5, any shares or other securities or rights acquired by the Trustee on behalf of a         Participant  in  any  of  the  circumstances  mentioned  in  Rules 64.1 or 64.2 (otherwise  than  any  new         securities  allotted  by  the  Company  by  way  of  capitalisation  issue  to  the  Trustee  in respect  of  a         Participant's Plan Shares) shall not be held in the Plan and shall not form part of that Participant's Plan         Shares, but shall be held by the Trustee as bare trustee for the Participant subject to the provisions of         Rule 59.2.2 to be read and construed as if references to "Shares" were references to such shares ,         other securities or rights.   65.    HOLDING  PERIOD  :  FREEDOM  TO  AUTHORISE   TRUSTEE  TO  ACCEPT  A  GENERAL  OFFER         ETC   65.1   A Participant may during the Holding Period direct the Trustee to:-          65.1.1     accept an offer for any of his Free or Matching Shares (referred to in this Rule 65.1.1 as                    the "Original Shares") if the acceptance or agreement will result in a new holding being                    equated with the Original Shares for the purposes of capital gains tax;          65.1.2     accept  an offer  of  a  Qualifying  Corporate  Bond  (whether  alone  or  with  other  assets  or                    cash or both) for his Free or Matching Shares if the offer forms part of such a general                    offer as is mentioned in Rule 65.1.3 below;          65.1.3     accept an offer of cash, with or without other assets, for his Free or Matching Shares if                    the offer forms part of a general offer which is made to holders of shares of the same                    class as his or of shares in the same company and which is made in the first instance on                    a condition such that if it is satisfied the person making the offer will have control of that                    company, within the meaning of section 449 of the CTA 2010; or          65.1.4     agree to a transaction affecting his Free or Matching Shares or such of them as are of a                    particular  class, if  the  transaction  would  be  entered  into  pursuant  to  a  compromise  ,                    arrangement or scheme applicable to or affecting:-                      (a)     all of the ordinary share capital of the Company or , as the case may be, all the                             shares of the class in question; or                      (b)     all the shares, or all the shares of the class in question, which are held by a                             class  of  shareholders  identified  otherwise  than  by  reference  to  their                             employment or their participation in a Schedule 2 SIP; or                      (c)     if  in  the  case of  a  takeover  offer  (as  defined  in  section  974  CA  2006)  there                             arises a right under section 983 CA 2006 to require the offeror to acquire the                             Participant's Free or Matching Shares, or such of them as are of a particular                             class, to exercise that right.   66.    COMPANY RECONSTRUCTIONS   66.1   The provisions of this Rule 66 apply if, in relation to any of a Participant's Plan Shares (the "Original         Holding") there is a transaction:-          66.1.1     which  results  in  a  new  holding  (the "New  Holding")  being  equated  with  the  Original                    Holding for the purposes of capital gains tax; or          66.1.2     that would have that result but for the fact that what would be the New Holding consists of                    or includes a Qualifying Corporate Bond          Such a transaction is referred to in this Rule 66 as a "Company Reconstruction".      LMF/UKDP/UKM/92357982.1                                                                        26   

 

  66.2   If an issue of shares of any of the following descriptions (in respect of which a charge to income tax         arises)  is  made  as  part  of  a  Company  Reconstruction,  such  shares  shall  not  form  part  of  the  New         Holding:-          66.2.1     redeemable shares or securities issued as mentioned in section 1000C of the CTA 2010;          66.2.2     share capital issued in circumstances such that section 1022 of the CTA 20 10 applies ;                    or          66.2.3     share capital to which section 1049 of the CTA 2010 applies.   66.3   Subject  to  the following  provisions  of  this  Rule 66,  references  in  this  Plan  to  a  Participant's  Plan         Shares or, as the case may be, a Participant's Partnership Shares or  a  Participant's  Free Shares or         a  Participant's  Matching  Shares  or  a Participant's  Dividend  Shares  shall  be  respectively construed,         after  the  time  of  the  Company  Reconstruction,  as  being  or,  as  the  case  may  be,  as  including         references to any shares comprised in the New Holding (the "New Shares").   66.4   For the purposes of this Plan:-          66.4.1     a  Company  Reconstruction  shall  be  treated  as  not  involving  a  disposal  of  shares                    comprised in the Original Holding; and          66.4.2     the  date  on  which  any  New  Shares  are  to  be  treated  as  having  been  awarded  to  or                    acquired  on  behalf  of  the  Participant  shall  be  that on  which  the  corresponding  Shares                    comprised in the Original Holding were so awarded or acquired.   66.5   In the context of a New Holding, any reference in this Rule 66 to shares includes securities and rights         of any description which form part of the New Holding for the purposes of Chapter II of Part IV of the         Taxation of Chargeable Gains Act 1992.   67.    REINVESTMENT OF CASH DIVIDENDS IN PLAN SHARES   67.1   The Directors may at any time determine and notify all Participants that, with effect from such date as         they shall specify:-          67.1.1     cash  dividends  paid  to  the  Trustee  in  respect  of  every  Participant's  Plan  Shares  shall,                    subject to Rule 67.4, be applied by the Trustee in acquiring further Shares on behalf of                    each such Participant;          67.1.2     if a Participant so elects in writing, cash dividends paid to the Trustee more than 30 days                    (or such shorter period as the Trustee may specify) after the Trustee  has received such                    request  shall,  subject  to  Rule 67.4,  be  applied  by  the  Trustee  in  acquiring  further  Plan                    Shares on behalf of each such Participant on the date set by the Trustee (which shall  be                    the  same  date  in  relation  to  all  Participants)  being  a  date  within  30  days  after  the                    dividends are received by the Trustee; or          67.1.3     (whether or not any Participant has made such an election), all cash dividends paid to the                    Trustee  in respect of every Participant's Plan Shares shall, with effect from 30 days (or                    such shorter period as the Trustee may specify) after the date of such notice, be paid by                    the Trustee to each such Participant in cash.   67.2   A Participant who has made an election as mentioned in Rule 67.1.2 above may at any time thereafter         give notice in writing to the Trustee revoking that election and the Trustee shall give effect to such         revocation (so that all cash dividends paid to the Trustee in respect of that Participant's Plan Shares         shall thereafter  be paid by the Trustee to the Participant in cash) as soon as practicable after such         notice has been received .   67.3   Any such election as mentioned in Rule 67.1.2, and any such notice of revocation as mentioned in         Rule 67.2, shall relate to all, and not some only, of a Participant's Plan Shares.   67.4   Unless the Directors determine and specify otherwise on any occasion, the Trustee shall apply all the         cash  dividends  received  and  held  on  a  Participant's  behalf  in  acquiring  shares  on  behalf  of  that         Participant. If, on any occasion, the Directors decide to specify a different amount for the Trustee to so         apply, their decision shall set out either the specific amount (as a limit, percentage or otherwise) or         how that amount is to be determined.      LMF/UKDP/UKM/92357982.1                                                                        27   

 

  67.5   The Shares which are so acquired on behalf of a Participant using cash dividends paid to the Trustee         in respect of a Participant's Plan Shares:-          67.5.1     shall be Shares of the same class and carry the same rights as the Shares in respect of                    which the dividend is paid; and          67.5.2     shall  be  held  by  the  Trustee  on  behalf  of  the  Participant  upon  and  subject  to  the                    provisions of this Part E of the Plan.   67.6   The   number  of   Shares  so  acquired  on  behalf  of   each  Participant   shall  be  a  whole  number         determined   by  dividing   the   amount  to  be  so  applied  (plus   any  amount   brought  forward   as         mentioned in Rule 67.7) by the Market Value of a Share on the Acquisition Date.   67.7   Any cash balance remaining shall be retained and carried forward by the Trustee and added to the         amount so applied on the next occasion SAVE THAT:-          67.7.1     any  amount  of  cash  dividend  so  carried  forward  shall  be  separately  identified  by the                    Trustee; and          67.7.2     upon the Participant ceasing to hold Relevant Employment or the Directors giving notice                    under Rule 9 to terminate the Plan such sum shall as soon as practicable be paid over to                    the Participant.   67.8   In  exercising  its  powers  in  relation  to  the  acquisition  of  Dividend  Shares,  the  Trustee  shall  treat         Participants fairly and equally.   68.    HOLDING PERIOD FOR DIVIDEND SHARES   68.1   Except  as  mentioned  in  Rule 68.2,  a  Participant  shall  be  bound  by  his  Participation  Agreement  or         Partnership Share Agreement , as the case may be:-          68.1.1     for  so  long  as  the  Participant  remains  in  Relevant  Employment  to  permit  his  Dividend                    Shares to remain in the hands of the Trustee ; and          68.1.2     not  to  assign,  charge  or  otherwise  dispose  of  his  beneficial  interest  in  such  Dividend                    Shares          for a period of 3 years beginning with the date on which such Shares are acquired on behalf of the         Participant.   68.2   A  Participant's  obligation  to  permit  his  Dividend  Shares  to  remain  in  the  hands  of  the  Trustee         throughout the Holding Period shall be subject to the following exceptions:-          68.2.1     the  Trustee  may  at  any  time  dispose  of  such  a  Participant's  Plan  Shares  as  may  be                    necessary to realise sufficient monies to satisfy any obligation under PAYE as mentioned                    in Rule 70.1; and          68.2.2     a Participant may during the Holding Period direct the Trustee to deal with any of such                    Participant's Plan Shares as mentioned in Rule 65 (read and construed as if references in                    that rule to Free and Matching Shares included references to Dividend Shares).   69.    NOTIFICATION OF ACQUISITION OF DIVIDEND SHARES   69.1   As soon as practicable after any Dividend Shares have been acquired on behalf of a Participant, the         Trustee shall notify the Participant of:-          69.1.1     the number of Shares so acquired;          69.1.2     the description of such Shares;          69.1.3     the Market Value of such Shares as at the Acquisition Date;          69.1.4     the date on which the Holding Period ends; and      LMF/UKDP/UKM/92357982.1                                                                        28   

 

         69.1.5     the amount of any surplus cash dividends being carried forward.   70.    PAYE   70.1   If,  in  consequence  of   any  of  a  Participant's  Plan  Shares   ceasing  to  be  held  in  the  Plan,  the         Participant  is  chargeable  to  income  tax  in  accordance  with  Chapter  6  of  Part  7  of  ITEPA  and  an         obligation to make a deduction required under PAYE arises in respect of that charge then:-          70.1.1     unless within 14 days of the date on which the Shares in question cease to be so held                    (or,  if  earlier,  the  date  on  which  the  Trustee  receives  notice  of  such  withdrawal)  the                    Participant  pays  to  the  Trustee  sufficient  money to  enable  such  obligation  to  be                    discharged, the Trustee may retain and dispose of any of the Shares so ceasing to be                    held  in  the  Plan  or  any  of  the  Participant's  remaining  Plan  Shares  (if  any)  as  shall  be                    necessary  to  raise  sufficient  funds  (after  deduction  of  expenses  and  commissions)  to                    discharge such obligation; and          70.1.2     subject to Rule 70.5, the Trustee shall pay to the Participant's Employer Company a sum                    which   is  sufficient  to  enable  the  Participant's  Employer  Company  to  discharge  that                    obligation.   70.2   If on any occasion the Trustee receives a sum of money which constitutes (or forms part of) a Capital         Receipt  in  respect  of  which a  Participant  is  chargeable  to  income  tax  under  Chapter  6  of  Part  7  of         ITEPA,  the  Trustee  shall,  subject to  Rule 70.6,  pay  out of  that  sum  of  money  to  the  Participant  's         Employer Company an amount equal to that on which income tax is so payable and the Participant's         Employer Company shall pay over that amount to the Participant subject to deduction of income tax         and NICs under PAYE.   70.3   If a Participant disposes of his beneficial interest in any Plan Shares to the Trustee, and the Trustee is         deemed for the purposes of Schedule 2 to have disposed of such Shares for any consideration, the         Trustee shall, for the purposes of Rule 70.2, be deemed to have received such consideration as the         proceeds of disposal of the Participant's Plan Shares.   70.4   For the purposes of this Rule 70 "Participant's Employer Company" means a company:-          70.4.1     of which the Participant is an employee at the time when the Participant's Plan Shares                    cease to be held in the Plan (as mentioned in Rule 70.1) or when the Trustee receives or                    is deemed to receive the sum of money referred to in Rule 70.2; and          70.4.2     to whom PAYE then applies.   70.5   If, in consequence of any of a Participant's Plan Shares ceasing to be held in the Plan, a Participant is         chargeable to income tax in accordance with Chapter 6 of Part 7 of ITEPA and either :-          70.5.1     there is no Participant's Employer Company; or          70.5.2     H M Revenue & Customs are of the opinion that it is impracticable for the Participant's                    Employer Company to make a deduction of income tax under PAYE and so direct          then the Trustee shall account for income tax under PAYE in respect of an amount equal to that on         which income tax is payable as if the Participant were a former employee of the Trustee.   70.6   If the Trustee receives a sum of money as mentioned in Rule 70.2 and either:-          70.6.1     there is no Participant's  Employer Company; or          70.6.2     H M Revenue & Customs are of the opinion that it is impracticable for the Participant's                    Employer Company to make a deduction of income tax under PAYE and so direct          then  in  paying  over  to  the  Participant  the  Capital Receipt,  the  Trustee  shall  make  a  deduction  of         income  tax  under  PAYE  in  respect  of  an  amount  equal  to  that  on  which  income  tax  is  payable  as         mentioned in Rule 70.2, as if the Participant were a former employee of the Trustee.   70.7   The reference in Rule 70.1 to a disposal of Shares shall be construed as including a reference to a         purchase by the Trustee of the beneficial interest in such Shares.      LMF/UKDP/UKM/92357982.1                                                                        29   

 

                                         PART F: GLOSSARY   71.    DEFINITIONS          The  following  words  and  expressions  shall,  where  they  are  used  in  the  Plan,  have  the  following         meanings:-          "Accumulation Period"     If applicable, in relation to Partnership Shares, the period During which a                                   Participant's  Partnership  Share Money  is  accumulated  by  the  Trustee                                   pending the acquisition of Partnership Shares or its repayment to such                                   person          "Acquisition Date"        in relation to an acquisition of Partnership Shares, the date mentioned in                                   Rule 22.5 and, in relation to Dividend Shares, the date mentioned in Rule                                   67.1.2          "Acquisition Period"      means, for the purposes of Rule 25.4 and in relation to an acquisition of                                   Partnership Shares by the Trustee on behalf of a Participant:-                                    (a)    if there was no Accumulation Period, the period beginning with                                          the deduction of the Partnership Share Money and ending with                                          the Acquisition Date; and                                    (b)    if there was an Accumulation Period, the period beginning with                                          the  end  of  that  period  and  ending  immediately  before  the                                          Acquisition Date          "Administrator"           such  person  as is  from  time  to  time  appointed  by  the  Trustee  with  the                                   approval  of  the  Company  to  administer  the  Plan  and  to  whom  the                                   Trustee has delegated the necessary administrative powers pursuant to                                   Clause 5.21 of the Deed          "Articles of Association" the articles of association of the Company          "Associated Company"      has the meaning given in paragraph 94 of Schedule 2          "Award Date"              in relation to Free Shares or Matching Shares, the date on which such                                   Shares are awarded          "Bank"                    a person who falls within section 991(2)(b) of the Income Tax Act 2007; a                                   building society within the meaning of the Building Societies Act 1986; or                                   a European Economic Area firm of the kind mentioned in paragraph 5 of                                   Schedule  3  to the  Financial  Services  and  Markets  Act 2000  which  has                                   permission under paragraph 15 of that schedule (as a result of qualifying                                   for  authorisation  under  paragraph  12(1)  of  that  schedule)  to  accept                                   deposits          "Benefits Code"           as defined in section 63 of ITEPA          "Capital Receipt"         has the same meaning as in section 502 of ITEPA          "Company"                 Luxfer Holdings PLC (registered number 03690830)          "Connected Company"       has the meaning given in paragraph 18(3) of Schedule 2          "Control"                 has the same meaning as in section 719 of ITEPA          "CTA 2010"                means the Corporation Tax Act 2010          "Dealing Day"             a day on which the New York Stock Exchange is open for business          "Deed"                    the trust deed of the Plan Trust      LMF/UKDP/UKM/92357982.1                                                                        30   

 

         "Directors"               the board of directors of the Company or a duly-authorised committee of                                   such directors          "Dividend Shares"         Shares  acquired   by  the  Trustee  on  behalf  of  a  Participant  using                                   dividends  paid  in  respect  of  such  Participant's  Plan  Shares  and  which                                   are held in the Plan          "Eligible Employee"       in relation to an acquisition of Shares pursuant to Part B, or an award of                                   Shares  under  Parts C or D,  on  any  occasion  ,  a  Plan  Employee  who                                   satisfies  all  of  the  relevant  conditions  for  participating  in  the  Plan                                   mentioned in Rule 7.1          "Financial Year"          a financial year of the Company          "Free Shares"             Shares  awarded  to  an  Eligible  Employee  in  accordance  with  Part D of                                   the Plan and which are held in the Plan          "Group"                   the Company and each and every company  which is for the time being                                   controlled by the Company and is also a Subsidiary          "Holding Period"          in relation to  a  Participant's  Matching  Shares  and  Free Shares, the                                   periods specified by the Directors as respectively mentioned in Rules 37                                   and 53 and,  in  relation  to  Dividend  Shares,  the  period  of  three  years                                   mentioned in Rule 68          "ITEPA"                   means the Income Tax (Earnings and Pensions) Act 2003          "Key Feature"             means a feature of this Plan if it relates to a provision that is necessary in                                   order to meet the requirements of Schedule 2          "Market Value"            in relation to a Share on a given date:-                                    (a)    if  all  the  Shares  to  be  acquired or  awarded  on  a  particular                                          occasion  are  purchased  by  the  Trustee  on  a  Recognised                                          Exchange  over  5  or  fewer  consecutive  Dealing  Days  ending                                          either on the Award Date or Acquisition Date as appropriate or                                          the  Dealing  Day  immediately  preceding  the   Award  Date or                                          Acquisition Date as appropriate, the average purchase price of                                          those Shares;                                    or if all the Shares are not so purchased , either                                    (b)    if shares in the Company of the same class as the Shares are                                          then  listed  on  a  Recognised  Exchange,  the  average  of  the                                          middle  market  quotations  of  a  Share  for  the  5  immediately                                          preceding Dealing Days; or                                    (c)    in  any  other  case,  the  market  value  of  a  Share  on  the  Award                                          Date  or  Acquisition  Date  (as  appropriate)  (or  on  such  earlier                                          date or dates as may be agreed in advance in writing with H M                                          Revenue & Customs Shares and Assets Valuation) determined                                          in accordance with the provisions of Part VIII of the Taxation of                                          Chargeable  Gains  Act  1992  and  agreed  in  advance  with  H  M                                          Revenue & Customs,                                    PROVIDED THAT if Shares are subject to any Restriction, they are to be                                   determined as if they were not subject to the Restriction for the purposes                                   of calculating the Market Value Shares awarded to an Eligible Employee                                   as mentioned in Part C and which are held in the Plan          "Matching Shares"                   "New Shares"              has the meaning given in Rule 66.3      LMF/UKDP/UKM/92357982.1                                                                        31   

 

         "NICs"                    National Insurance contributions          "Non-Qualifying Salary"   any particular description of earnings, paid to Eligible Employees , which                                   is determined by the Directors not to be Salary for the purposes of Rule                                   17.1, pursuant to paragraph 4A(b) of Schedule 2          "Participant"             a  person  who  has  been  awarded  Shares  or  on  whose  behalf  Shares                                   have been acquired, which are for the time being held in the Plan          "Participant's Employer   has the meaning given in Rule 70.4         Company"          "Participating            a  company  which  is  a  member  of  the  Group  in  relation  to  which  the         Company"                  Directors have resolved that the employees of such company may, if so                                   permitted by the rules of the Plan, be eligible to participate in this Plan          "Participation            a  contract  between  the  Company  and  a  Plan  Employee  in  a  form         Agreement"                determined by the Directors from time to time and which complies with                                   Schedule 2           "Partnership Shares"      Shares acquired by the Trustee on behalf of an Eligible Employee using                                   Partnership Share Money and which are held in the Plan          "Partnership Share        a  contract  between  the  Company  and  a  Plan  Employee  in  a  form         Agreement"                determined by the Directors from time to time and which conforms with                                   the requirements of Rule 13.1 and complies with Schedule 2          "Partnership Share        money  deducted  from  a  Participant's  Salary  pursuant  to  a  Partnership         Money"                    Share  Agreement  and  held  by  the Trustee  pending  the  acquisition  of                                   Partnership Shares or its repayment to such person          "PAYE"                    the  rules  and  regulations  governing  the  obligation  of  an  employer  or                                   other person to account for:-                                    (a)    income  tax  as  mentioned  in  Part  11  of  ITEPA  or  regulations                                          made under Section 684 of ITEPA; and                                    (b)    NICs          "Performance Unit"        in  relation  to  the  allocation  and  award  of  Free  Shares  by  reference  to                                   performance, any one or more of:-                                    (a)    the Group;                                    (b)    a Participating Company; or                                    (c)    any business or part of a business of a Participating Company                                          or  any  one  Plan  Employee  or  group of  two  or  more  Plan                                          Employees as shall be specified by the Directors                                    PROVIDED  THAT   no  Employee  shall  be  a  member  of  more  than  one                                   such group          "Personal                 in  relation  to  a  Participant,  the  legal  personal  representatives  of  the         Representatives"          Participant (being either the executors of his will or if he dies intestate the                                   duly appointed administrator(s) of his estate) who have provided to the                                   Directors evidence of their appointment as such          "Plan"                    the  Luxfer  Share  Incentive  Plan  as  approved  by  H  M  Revenue  &                                   Customs as amended from time to time in accordance with Rule 8          "Plan Employee"           an employee of a Participating Company who:-      LMF/UKDP/UKM/92357982.1                                                                        32   

 

                                   (a)    is  a  UK  resident  taxpayer  as  defined  in  paragraph  8(2)  of                                          Schedule 2; or                                    (b)    has been nominated by the Directors          "Plan Shares"             Free  and  Matching  Shares  which  have  been  awarded  to  an  Eligible                                   Employee  and  Partnership  Shares  which  have  been  acquired  by  the                                   Trustee  on  behalf  of  an  Eligible  Employee  and  Dividend  Shares  which                                   have  been  acquired  by  the  Trustee on  behalf  of  a  Participant  and  any                                   Shares  acquired  as  mentioned  in  Rules 64.5 and 66.3 but  subject  to                                   Rule 64.6          "Plan Trust"              the  trust  established  by  the  Company  by  the  execution  of  the  Deed  (a                                   pro-forma of which is set out in Part G) for use in conjunction with this                                   Plan  for  the  purpose,  amongst  other  matters,  of  holding  on  behalf  of                                   Participants legal title to Plan Shares          "Qualifying Company"      in relation to a Qualifying Period:-                                    (a)    a  company  that  is  a  Participating  Company  at  the  end  of  the                                          Qualifying Period;                                    (b)    a  company  that,  when  the  individual  concerned  was employed                                          by it, was a Participating Company ; or                                    (c)    a  company  that,  when  the  individual  concerned  was employed                                          by it, was an Associated Company of either:-                                           (i)     any such company as is mentioned in (a) or (b) above;                                                  or                                           (ii)    another company which is itself a Qualifying Company          "Qualifying Corporate     has  the  meaning  given  by  section  117  of  the  Taxation  of  Chargeable         Bond"                     Gains Act 1992          "Qualifying Period"       in relation to an individual's eligibility to acquire Partnership Shares or be                                   awarded  Free  Shares  on  any  occasion  ,  such  period  (if  any)  as  is                                   specified by the Directors pursuant to paragraph 16 of Schedule 2 and                                   throughout which the individual must at all times have been an employee                                   of a Qualifying Company          "Recognised Exchange"     means a recognised stock exchange as defined in section 1005 of the                                   Income Tax Act 2007          "Redundancy"              has the same meaning as in the Employment Rights Act 1996          "Relevant Employment"     employment by the Company or any Associated Company          "Restriction"             has the same meaning as in paragraph 99(4) of the Schedule          "Salary"                  in  relation  to  a  Plan  Employee,  means  such  of  the  earnings  of  the                                   employment by reference to which he is eligible to participate in the Plan                                   as  are  liable  to  be  paid  under  deduction  of  tax  under  PAYE  after                                   deducting  any  amounts  included  by  virtue  of  the  Benefits  Code  or  as                                   would  be  so  liable  apart  from  the  SIP  Code  or  which  would  be  if  that                                   individual were within the scope of the charge to income tax under Part 2                                   of ITEPA SAVE THAT for the purposes of Rule 17.1, no account shall be                                   taken,  in  determining  the  amount  of  a  Participant's  Salary  in  any  tax                                   year, of any amount of Non-Qualifying Salary paid to such Participant          "Schedule 2"              Schedule 2 to ITEPA      LMF/UKDP/UKM/92357982.1                                                                        33   

 

         "Schedule 2 SIP"          a share plan that meets the requirements of Schedule 2          "Shares"                  ordinary shares in the capital of the Company (or, following a Company                                   Reconstruction as mentioned in Rule 66, shares issued in respect of, or                                   which otherwise represent such first-mentioned shares) which, except in                                   the circumstances mentioned in paragraphs 86(4) and 88 of Schedule 2,                                   satisfy the requirements of paragraphs 25 to 29 of Schedule 2          "SIP Code"                has the meaning given in section 488(3) of ITEPA          "Subsidiary"              a subsidiary (within the meaning given in section 1159 of the Companies                                   Act 2006) of the Company          "Tax Year"                a year ending 5 April          "Trustee"                 the trustee or trustees for the time being of the Plan Trust            72.    INTERPRETATION OF THE PLAN   72.1   Words and expressions used in the Plan but not defined in this Part F have the same meanings given         in, or which they bear for the purposes of, the SIP Code.   72.2   References  to  the  provisions  of  any  Act  shall  include  any  statutory  consolidation,  modification,         amendment or re-enactment , or any subordinate legislation made under it for the time being in force.   72.3   Words denoting the singular shall include the plural and vice versa.   72.4   References to an "award" of Shares shall be construed as references to the transfer of the beneficial         interest in such Shares (and related expressions shall be construed accordingly).   72.5   References  to  Shares  or  to  any  interest  in  Shares  being  "held  in  the  Plan"  shall  be  construed  as         references to the legal title to  such Shares being held by the Trustee, subject to and in accordance         with the rules of this Plan (and related expressions shall be construed accordingly).   72.6   References in relation to a Participant to "participation in the Plan" and related expressions shall be         construed  as  references  to  participation by  being  a  party  to  either  (or  both)  a  Partnership  Share         Agreement or a Participation Agreement or by reason of any Shares then being held in the Plan on         behalf of such Participant.   72.7   References to rules are to the rules set out in this Plan as amended from time to time in accordance         with Rule 8.   72.8   References to the "forfeiture" of Free Shares or Matching Shares shall be construed as references to         the transfer by a Participant to the Trustee of all of his interest in such Participant's Free or Matching         Shares as mentioned in Rule 61 (and related expressions shall be construed accordingly).   72.9   A  Participant  shall  not  be  treated  for  the  purposes  of  this  Plan  as  ceasing  to  be  in  Relevant         Employment if he remains in the employment of the Company or any company which, in relation to the         Company, is an Associated Company.                 LMF/UKDP/UKM/92357982.1                                                                        34   

 

                                     PART G: PLAN TRUST DEED   THIS TRUST DEED is made on [20 December] 2013   BETWEEN:-   (1)    LUXFER  HOLDINGS  PLC    (registered  in  England  number  03690830)  whose  registered  office  is  at         Lumns Lane, Manchester, M27 8LN (the "Company"); and   (2)    COMPUTERSHARE  TRUSTEES  LIMITED          (registered  in  England  Number  03661515)  whose         registered office is at The Pavilions, Bridgwater Road, Bristol, BS13 8AE(the "Original Trustee").   WHEREAS:-   (A)    The parties intend, by the execution of this Deed, to establish an employees' share scheme, the terms         of which comply both with the requirements of section 1166 of the Companies Act 2006 and Schedule         2  to  the  Income  Tax  (Earnings  and Pensions)  Act  2003,  to  facilitate  the  acquisition  and  holding  of         shares  by  and  for  the  benefit  of  employees  of  the  Company  and  of  subsidiaries  of  the  Company         pursuant to The Luxfer Share Incentive Plan (the "Plan").   (B)    The Company has paid to the Original Trustee  by way of gift the sum of £10, the receipt of which the         Original Trustee acknowledges.   (C)    The Original Trustee has agreed to act as the first trustee of this Trust.   (D)    This Trust shall unless and until the Trustee otherwise determines, be known as The Luxfer SIP Trust.   IT IS AGREED as follows :-   1.     INTERPRETATION   1.1    The  following  words  and  expressions  shall,  where  they  are  used  in  this  Deed,  have  the  following         meanings:-             "Beneficiary"                    a bona fide employee or former employee of any member of                                             the Group             "Charity"                        any  company,  trust,  association  or  other body  of  persons                                             established or charitable purposes only             "Deed"                           the provisions of this trust deed as varied or added to from                                             time to time pursuant to and in accordance with Clause 15             "Employees' Share Scheme"        has the meaning given in section 1166 of the Companies Act                                             2006             "Foreign Cash Dividend"          means  a  cash  dividend  paid  in  respect  of  Plan  Shares  in  a                                             company not resident in the United Kingdom             "Takeover Offer"                 has the meaning given in section 974 of the Companies Act                                             2006             "Trust"                          the  Employee's  Share Scheme  constituted  by  this  Deed                                             which shall be known as the Luxfer SIP Trust             "Trustee"                        the Original Trustee or other trustee or trustees for the time                                             being of this Trust             "Trust Fund"                     (a)    the initial sum of £10 paid to the Original Trustee;                                              (b)    all property, other than any Participant's Partnership                                                    Share Money, transferred to the Trustee to hold on                                                    the terms of this Trust , including any accumulation      LMF/UKDP/UKM/92357982.1                                                                        35   

 

                                                    of income of such property; and                                              (c)    all property from time to time representing the above             "Trust Period"                   means the period beginning with the date hereof and ending                                             upon the first to happen of the following namely:-                                              (a)    the expiry of the period of one hundred and twenty                                                    five years beginning with the date of this Deed; or                                              (b)    such  date  as  the  Trustee  (acting  with  the  prior                                                    written  consent  of  the  Company)  shall  by  deed                                                    declare to be the end of the Trust Period (not being                                                    a date earlier than the date of such deed)             "Trust Property"                 any property comprised in the Trust Fund                   All other terms used in this Deed which are defined in  Part F (Glossary) to the Plan shall bear the         same meanings as in that Glossary.   1.2    For the purposes of the interpretation of this Deed:-          1.2.1      words denoting the singular shall include the plural and vice versa;          1.2.2      words denoting the masculine gender shall include the feminine gender;          1.2.3      no account shall be taken of the clause headings which have been inserted for ease of                    reference only;          1.2.4      references to any statutory provision shall be read and construed as references to such                    provision as amended or re-enacted from time to time; and          1.2.5      references to clauses are to be read and construed as references to clauses of this Deed                    unless otherwise stated.   2.     PRINCIPAL TRUSTS   2.1    The  Trustee  shall  during  the  Trust  Period  hold  the  capital  and  income  of  the  Trust  Fund UPON         TRUST:-          2.1.1      for so long as the Plan remains a Schedule 2 SIP and is not terminated pursuant to Rule                    9  of  the  Plan,  for  the  benefit  of  Beneficiaries  but  shall  deal  with  the  same  only  in                    accordance with the provisions of Clauses 4 and 5; and          2.1.2      subject  to  Clause 2.1.1 above,  for  all  or  such  one  or  more  exclusively  of  the  other  or                    others of the Beneficiaries at such age or time or respective ages or times and if more                    than  one  in  such shares  and  either  absolutely  or  for  such  period  or  respective  periods                    and with such gifts over and upon such trusts (including discretionary trusts) and with or                    subject  to  such  powers  or  provisions  (whether  dispositive  or  administrative  at  the                    discretion of the Trustee or of any one or more of the Beneficiaries or of any other person                    or persons) and generally in such manner in all respects for the benefit of all or any one                    or  more  of  the  Beneficiaries  as the  Trustee  may  at  any  time  or  times  during  the  Trust                    Period by deed or deeds revocable or irrevocable in their discretion appoint PROVIDED                    THAT no exercise of the power conferred by this Clause 2.1.2 shall invalidate any prior                    payment or application of either the capital or income of the Trust Fund or affect any part                    of the Trust Fund to which any person has become indefeasibly entitled.   2.2    In default of and subject to any appointment made under Clause 2.1, and subject to the provisions of          Clause 5, the following trusts shall apply to the capital and income of the Trust Fund:-          2.2.1      the Trustee may accumulate the whole or part of the income of the Trust Fund during the                    Trust Period as an addition to the capital of the Trust Fund and as one fund with such      LMF/UKDP/UKM/92357982.1                                                                        36   

 

                    capital  for  all  purposes  but  the  Trustee  may  apply  such  Trust  Property  as  if  it  were                    income arising in the then current year ;          2.2.2      subject to Clause 5.2, the Trustee shall pay or apply the income of the Trust Fund to or                    for  the  benefit of  any  one  or  more  of  the  Beneficiaries  and  if  more  than  one  in  such                    proportions  and  in  such  manner  in  all   respects  as  the  Trustee  shall  in  its  absolute                    discretion think  fit;          2.2.3      the Trustee may at any time or times during the Trust Period realise the whole or any part                    or parts of the Trust Fund and may pay the same to or apply the same for the benefit of                    any one or more of the Beneficiaries in such manner as the Trustee shall in its absolute                    discretion think fit; and          2.2.4      subject to the preceding provisions of this Clause 2, the Trustee shall hold the capital and                    income of the Trust Fund at the expiry of the Trust Period UPON TRUST for such one or                    more of the Beneficiaries and if more than one in such proportion and in such manner in                    all respects as the Trustee shall before the end of the Trust Period, and in its absolute                    discretion, determine SAVE THAT if there are no such Beneficiaries or in default of such                    determination  the  Trustee shall  hold  the  capital  and  income  of  the  Trust  Fund on  trust                    absolutely for such one or more Charity as the Company shall in its discretion determine .   3.     ADDITIONS TO THE TRUST FUND   3.1    The Trustee may at any time accept a gift of Shares or other assets to be held as an addition to the         Trust Fund.   3.2    Any member of the Group may from time to time at its sole discretion transfer pay or credit sums of         money to the Trustee to be held as an addition to the Trust Fund, and nothing in this Deed shall confer          on  the  Trustee  any  right  to receive  any such  transfer  , payment  or  credit  or  create any  trust  of  the         money intended to be transferred, paid or credited unless and until the same shall have been actually         transferred , paid or credited to the Trustee.   3.3    If Shares are listed on any Recognised Exchange, the Company shall apply for a listing for any Shares         subscribed by the Trustee.   4.     PARTNERSHIP SHARE MONIES AND PARTNERSHIP SHARES   4.1    The Trustee shall accept any Participant's Partnership Share Money and shall hold such funds upon         trust for the benefit of such Participant and shall deal with such funds and with any income from the         investment of such funds only in accordance with the Plan SAVE THAT the Trustee shall be under no         duty or obligation to deposit such funds in an interest-bearing account.   4.2    The  Trustee  shall  apply  each  Participant's  Partnership  Share  Money  in  acquiring  Shares  in         accordance with the Plan by:-          4.2.1      purchase in the market;          4.2.2      subscription; or          4.2.3      acquisition by purchase from the Trust Fund.          and  where  such  purchase  or  subscription  is  to  take  place  in  a  currency  other  than  sterling,  shall         convert  the  accumulated  Partnership  Share  Money  into  such  other  currency  on  the  basis  of  an         appropriate exchange rate as agreed with the Company and, where appropriate , in accordance with         any communication to Participants.   4.3    The Trustee shall hold a Participant's Partnership Shares upon trust for the benefit of such Participant         and shall deal with such Shares and all rights attaching to such Shares only in accordance with the         Plan and this Deed.   5.     TRUSTEE 'S POWERS AND DUTIES RELATING TO THE PLAN   5.1    The  Trustee  shall,  if  required  to  do  so  by  the  Company  or  any  other  regulatory  or  other  legal         requirement, adopt the Plan and the Trustee shall join with the Company in giving effect to the Plan.      LMF/UKDP/UKM/92357982.1                                                                        37   

 

  5.2    For so long as the Plan remains a Schedule 2 SIP, and is not terminated pursuant to Rule 9 of the         Plan, the Trust Fund shall not be applied, and this Trust shall not be used, otherwise than for  the         purposes of giving effect to the Plan provided that if the Plan is terminated pursuant to Rule 9, the         Trustee will comply with the requirements of paragraph 90 of Schedule 2.   5.3    The Trustee shall expend any sum received from any member of the Group as a contribution to the         Trust Fund for any such one or more of the purposes mentioned in Clause 5.4 as the Trustee shall in         its  absolute  discretion  determine  and  pending  such  expenditure  shall  deposit  any  such  contribution         with a Bank on such terms as the Trustee may in its absolute discretion think fit.   5.4    The purposes referred to in Clause 5.3 are:-          5.4.1      the  acquisition  of  Shares  for  the  purposes  of  the  Plan,  whether  by  purchase  in  the                    market,  subscription  or  acquisition by  purchase  from  the  Trust  Fund  and  on  the  basis                    that:                     (a)     where  such  purchase  or  subscription  is  to  take  place  in  a  currency  other  than                            sterling, the Trustee shall convert the relevant sum into such other currency on                            the  basis  of  an  appropriate  exchange  rate as  agreed  with  the  Company  and,                            where appropriate, in accordance with any communication to Participants; and                     (b)     for the avoidance of doubt, the Trustee shall only be required to acquire Shares                            for the purposes of the Plan to the extent it has received payment or otherwise                            been  funded  to  the  extent  required  to make  such  acquisition  and  cover  any                            related costs, charges and expenses;          5.4.2      the repayment of sums borrowed;          5.4.3      the payment of interest on sums borrowed;          5.4.4      satisfying any of the obligations of the Trustee under the Plan; and          5.4.5      paying expenses of the Trustee (including the fees of the Trustee , any Administrator and                    any professional adviser retained by the Trustee in relation to the operation of the Plan).   5.5    The Trustee may only acquire shares or other securities which are not Shares if:-          5.5.1      they are shares or other securities issued to the Trustee in exchange for or in respect of                    Shares in circumstances mentioned in section 135 of the Taxation of Chargeable Gains                    Act 1992; or          5.5.2      if they are shares or other securities acquired by the Trustee pursuant to a reconstruction                    or amalgamation as mentioned in section 136 of that Act.   5.6    The  Trustee  may  at  any  time  and  from  time  to  time  award  Shares  to  any  one  or  more  of  the         Beneficiaries pursuant to and in accordance with the Plan.          Duty to give notice of award of Free and Matching Shares   5.7    As soon as practicable after any Free Shares or Matching Shares have been awarded to an Eligible         Employee the Trustee shall give him notice of the award:-          5.7.1      specifying the number and description of those Shares;          5.7.2      confirming  whether  they  are  subject  to  any  Restrictions  and,  if  so,  the  nature  of  those                    Restrictions;          5.7.3      stating their Market Value on the Award Date; and          5.7.4      the Holding Period applicable to them .      LMF/UKDP/UKM/92357982.1                                                                        38   

 

         Duty to give notice of acquisition of Partnership Shares   5.8    As soon  as  practicable  after  the  Trustee   has  acquired any  Partnership  Shares   on  behalf  of  a         Participant, the Trustee shall give him notice of the acquisition:-          5.8.1      specifying the number and description of those Shares;          5.8.2      confirming  whether  they  are  subject  to  any  Restrictions  and,  if  so,  the  nature  of  those                    Restrictions;          5.8.3      stating the amount of  Partnership  Share  Money applied  by the Trustee in acquiring                    such Partnership Shares;          5.8.4      their Market Value on the Acquisition Date; and          5.8.5      informing him of any amount of surplus Partnership Share Money carried forward.          Duty to give notice of acquisition of Dividend Shares   5.9    As soon as practicable after any Dividend Shares have been acquired on behalf of a Participant the         Trustee shall give him notice of the acquisition:-          5.9.1      specifying the number and description of those Shares ;          5.9.2      confirming  whether  they  are  subject  to  any  Restrictions  and,  if  so,  the  nature  of  those                    Restrictions;          5.9.3      stating their Market Value on the Acquisition Date;          5.9.4      stating the Holding Period applicable to them ; and          5.9.5      informing him of any surplus amount of cash dividends carried forward.          Foreign cash dividends   5.10   If the Trustee receives any Foreign Cash Dividend in respect of any of a Participant's Plan Shares, the         Trustee shall notify the Participant of the amount of any foreign tax deducted from the dividend before         it was paid.          Duty to deal with Plan Shares   5.11   The Trustee shall hold and deal with all Shares awarded to or acquired on behalf of any Participant         only in accordance with the terms of Part E of the Plan and the following provisions of this Deed.          General duty of Trustee to retain Free Matching and Dividend Shares   5.12   Save as mentioned in Clause 5.13, the Trustee shall not dispose of any of a Participant's Plan Shares         that are Free Shares, Matching Shares or Dividend Shares (whether to the Participant or otherwise) at         any  time  during  the  Holding  Period  relating  to  such  Shares  unless  the  Participant  ceases  to  be  in         Relevant Employment.   5.13   The duty imposed by Clause 5.12 shall not restrict the Trustee from disposing of any of a Participant's         Plan Shares in accordance with a provision of the Plan which gives effect to the requirements of any         of the paragraphs of Schedule 2 mentioned in paragraph 73(3) of Schedule 2.          Power of Trustee to raise funds to subscribe for a rights issue   5.14   The Trustee may, subject to Clause 5.18, dispose of some of the rights under a rights issue in order to         be able to obtain sufficient funds to exercise other such rights.   5.15   For the  purposes of Clause 5.14, "rights issue" means rights conferred in respect of a Participant's         Plan Shares to be allotted, on payment, other shares or securities or rights of any description in the         same company.      LMF/UKDP/UKM/92357982.1                                                                        39   

 

         Duty of Trustee on Participant ceasing to be in Relevant Employment   5.16   If a Participant ceases to be in Relevant Employment, subject to Rule 61 of the Plan, the Trustee shall         as soon as is practicable:-          5.16.1     transfer  such  Participant's  Plan  Shares  to  the  Participant  or  another   person  at  his                    direction; or          5.16.2     dispose of the Shares and account (or hold itself ready to account) for the proceeds to                    the Participant or to another person at his direction.          General duties to Participants   5.17   The Trustee shall pay over to a Participant any money or money's worth received by the Trustee in         respect  of  or  by  reference  to  any  of  such  Participant's  Plan  Shares,  other  than  money  or  money's         worth consisting of New Shares SAVE THAT  this duty of the Trustee shall not prevent the Trustee         from reinvesting cash dividends in accordance with the Plan nor from doing anything in fulfilment of its         obligations under or in relation to PAYE.   5.18   Subject  to  Clause 5.16,  the  Trustee  shall  dispose  of  a Participant's  Plan Shares  and  deal  with  any         right conferred in respect of any of his Plan Shares to be allotted other shares, securities or rights of         any description only pursuant to a direction given by or on behalf of the Participant SAVE THAT the         Trustee may dispose of any of a Participant's Plan Shares which cease to be held in the Plan and any         of a Participant's remaining Plan Shares to meet any obligation imposed on the Trustee under or in         relation to PAYE (unless the Participant has paid to the Trustee such sum as is sufficient to meet such         obligation, in accordance with Rule 70 of the Plan).          Duties in relation to tax liabilities   5.19   The Trustee shall:-          5.19.1     maintain  such  records  as  may  be  necessary  for  the  purposes  of  complying  with  any                    obligations of the Trustee or of any member or former member of the Group under PAYE                    and NICs so far as they relate to the Plan; and          5.19.2     when a Participant becomes liable to income tax under Chapter 3 or 4 of Part 4 of the                    Income Tax (Trading and Other Income) Act 2005 or ITEPA by reason of the occurrence                    of any event, inform him of any facts relevant to determining that liability.   5.20   References  in  the  preceding  provisions  of  this  Clause 5 to  a  Participant  include,  in  relation  to  a         Participant who has died, a reference to his Personal Representatives.          Administration of the Plan   5.21   The  Trustee  may  from  time  to  time  appoint  any  such  person  as  it  considers  appropriate  to  act  as         Administrator or to hold Shares as nominee or custodian in a designated account and in that event the         Trustee shall delegate to such person such of the Trustee's administrative powers and duties as shall         be  necessary  or  appropriate  to  enable  such  person  to  procure  the  award  of  Shares  to,  and  the         acquisition of Shares on behalf of, Eligible Employees and Participants and generally to administer the         operation of the Plan PROVIDED THAT:-          5.21.1     no such delegation shall take effect so as to divest the Trustee of any duty imposed on                    the Trustee by the provisions of this Deed; and          5.21.2     the Trustee shall remain liable for the acts and defaults of such person to the intent that                    Section 23 of the Trustee Act 2000 shall not apply.   5.22   The Trustee may pay the costs and expenses of any Administrator out of the Trust Fund.          Power to take and pay for professional advice   5.23   The Trustee may, for the purpose of enabling the Trustee or any Administrator to exercise the powers         and duties of this Trust, seek and act upon the advice of any such firm of legal or other professional          advisers and may pay for such advice out of the Trust Fund PROVIDED THAT no such advice shall         be sought by the Trustee or the Administrator on any occasion without the prior approval (which shall      LMF/UKDP/UKM/92357982.1                                                                        40   

 

         not  be  unreasonably  withheld)  of  the  Company  as  to  the  choice  of  such  adviser  and  the  terms  on         which such advice shall be sought.          Provision of information to the Company   5.24   The Trustee shall provide to the Company and every other member of the Group all such information         relating to the operation of the Plan as shall, in the opinion of the Directors, be necessary to enable         each  such  member  of  the  Group  to  fulfil  its  obligations  to  account  for  income  tax  and  NICs  under         PAYE.   5.25   The Trustee shall, from time to time, provide to the Company such other information, relating to the         operation  of  the  Plan  and  to  the  individual  entitlements  of  any  or  all  of  the  Participants  as  the         Company may request, and shall do so within such reasonable period as the Company may specify.          Residual Shares   5.26   If any Shares (other than a Participant's Plan Shares) remain Trust Property after either:-          5.26.1     Shares have been awarded to Participants in accordance with the Plan on any occasion;                    or          5.26.2     the  requirements  of  paragraph  90  of  Schedule  2  have been  complied  with  the  Trustee                    shall, if the Company so directs, hold such Shares upon trust to sell such Shares in the                    market  and  pay  or  apply  the  net  proceeds  of  sale  (after  deduction  of  all  costs  and                    expenses and of such amount as, in the opinion of the Trustee , is sufficient to enable the                    Trustee  to  discharge  in  full  all  of  its  current  and  future  liabilities,  whether  actual  or                    contingent) to or for the benefit of Participating Companies in such proportions, having                    regard to their respective contributions, to the Trust Fund as the Company shall direct.          Duty to monitor Participants in connected plans   5.27   The Trustee shall maintain records of Participants who in the same Tax Year have participated in one         or more other Schedule 2 SIPs established by the Company or a Connected Company.   6.     TRUSTEE'S DEALINGS IN SHARES   6.1    For the purpose of enabling the Directors to ensure compliance by the Company and by its directors         with the rules and regulations imposed by the New York Stock Exchange, the Trustee shall inform the         secretary of the Company in writing in advance of any dealing by the Trustee in Shares (otherwise         than any award of Shares to or acquisition of Partnership Shares or Dividend Shares on behalf of, a         Participant who is not a director of the Company being a dealing pursuant to or done for the purpose         of giving effect to the operation of the Plan).   6.2    If  the  Trustee  provides  any  benefit  (in  whatever  form)  out  of  the Trust  Fund  to  any  Beneficiary         (otherwise than pursuant to the Plan) the Trustee shall give details of such benefit to the secretary of         the Company.   6.3    The Trustee shall not deal in Shares or other securities of the Company at any time  if the Trustee is         aware  or has received notice in writing from the Company that any such dealing at that time would         cause  the  Company  or  any  Subsidiary  or  any  director,  officer  or  employee  of  the  Company  or  any         Subsidiary  to be  in  breach  of  the  provisions  of  the  code  of  dealing  adopted  by  resolution  of  the         directors of the Company imposing restrictions upon dealings by directors and employees in Shares or         securities  of  the  Company  as  required  by  the  rules  of  the  New  York  Stock Exchange PROVIDED         THAT  nothing  in  this  Clause 6.3 shall  compel  the  Trustee  to  enquire  from  the  Company  or  any         Subsidiary as to whether such dealing would breach any such provisions.          Waiver of Trustees' dividend and voting rights   6.4    The provisions of Clauses 6.5 and 6.6 shall not apply (so that the Trustee shall not be taken to have         waived its rights to receive dividends and/or exercise voting rights) throughout any period in relation to         which  the  Company  has  given  notice  in  writing  to  the  Trustee  that  such  provisions  shall  not  apply         PROVIDED THAT no such period shall commence before the date on which such notice is received         by the Trustee.      LMF/UKDP/UKM/92357982.1                                                                        41   

 

  6.5    Whilst and for so long as any Shares are held by the Trustee and no beneficial interest in such Shares         is vested in any Beneficiary the Trustee shall waive any right to dividend payments in respect of such         Shares and the Trustee shall not be liable for any loss to the Trust Fund as a result of such waiver.   6.6    Whilst any Shares in the Company are held by the Trustee the Trustee shall refrain from exercising         any voting rights which may attach to the Shares SAVE THAT if the beneficial interest in any Share is         vested in any Beneficiary then the Trustee shall comply with the provisions of Rule 63 of the Plan.   7.     INVESTMENT  POWERS   7.1    The  Trustee  may  apply  the  whole  or  any  part  of  the  Trust  Fund  in  the  acquisition  of  Shares  by         subscription or by purchase from any person at a price which is not greater than the price which the         Trustee  would  otherwise  have  to  pay  for  the  purchase  of  such  Shares  on  the  New  York  Stock         Exchange (or, if such Shares are not listed on the New York Stock Exchange, in the open market) at         the time of purchase .   7.2    The Trustee shall not be under any obligation to diversify the investment of the Trust Fund and, in         particular, may:-          7.2.1      retain, in their existing condition , any investments, including Shares or other securities of                    the Company , or other property (including uninvested money) for the time being forming                    part  of  the  Trust  Fund  for  so  long  as the  Trustee  in  its  absolute  discretion  thinks  fit                    notwithstanding that the same may comprise the sole investment of the Trust Fund; and          7.2.2      at its absolute discretion, invest the whole of the Trust Fund in the shares or securities of                    any one company           without being liable for any loss occasioned thereby.   7.3    The Trustee shall be under no obligation to:-          7.3.1      become a director or officer, or interfere in the management or affairs, of any company                    any of the shares or stocks of which are, for the time being, comprised in the Trust Fund                    or  any  company  associated  with  such  company  ,  notwithstanding  that  the  Trustee  has                    (whether directly or indirectly) a substantial holding in or Control of any such company ; or          7.3.2      seek information about the affairs of any such company          but  may  leave  the  conduct  of  the  affairs  of  any  such  company  to  its  directors  or  other  persons         managing the company (so long as they have no actual notice of any act of dishonesty on the part of         such directors or others in connection with the management of the company) .   8.     ADDITIONAL  POWERS   8.1    In addition to all the powers vested in trustees by law or statute, the Trustee shall have the following         powers regarding the Trust Fund:-          8.1.1      power to invest or hold or allow to remain in the name or under the control of any person                    as nominee or bare trustee of the Trustee the whole or such part of the Trust Fund as the                    Trustee shall in its absolute discretion think fit and the Trustee shall not be liable for any                    loss to the Trust Fund or the income of the Trust Fund occasioned by the exercise of this                    power;          8.1.2      power to promote, alone or with others , and to approve, concur or acquiesce in, or agree                    to carry into effect, alone or with others , any scheme, proposal or offer for or leading to                    or being a step in:-                     (a)     the  reconstruction  or  amalgamation  with  any  other  company  or  corporation  of                            any company or corporation in whose securities the Trust Fund or any part of the                            Trust Fund shall be for the time being invested;                     (b)     the  release,  modification  or  alteration  of  the  rights,  privileges  or  liabilities                            attached to any investments or other property forming part of the Trust Fund or                            attached to any property whatever having rights affecting any such investments                            or other property; or      LMF/UKDP/UKM/92357982.1                                                                        42   

 

                    (c)     the exchange of any investments or other property forming part of the Trust Fund                            for any other investments or other property          8.1.3      power to give warranties and indemnities for the foregoing purposes with power to accept                    any  security  ,  shares  or  other  interest  of  any  description  of  the  reconstructed  or                    purchasing or new company or demerged company or companies in lieu or in exchange                    for all or any of the original securities, shares or other interest  and with power to retain                    any property so accepted as aforesaid for any period for which the original property could                    have been retained;          8.1.4      power to apply the Trust Fund or any part of it or the whole or any part of the income of                    the Trust Fund in paying any stamp duty or stamp duty reserve tax payable in respect of                    any transfer of or agreement to transfer Shares to a Beneficiary ;          8.1.5      power to borrow moneys , for any purpose for which trust moneys may be applied under                    this  Trust,  from  any  person or  company  (including  any member  of  the  Group)  on  such                    terms as the Trustee may decide PROVIDED THAT any loan made to the Trustee by any                    member of the Group shall be on terms which are no less favourable to the Trustee than                    if it had been made in a transaction made at arm's length between persons not connected                    with each other ;          8.1.6      power  to  pay  any  duties  or  taxes  or  other  fiscal  impositions  (together  with  any related                    interest or penalties or surcharges) for which the Trustee may become liable and to have                    entire  discretion  as  to  the  time  and  manner  in  which  such  duties  taxes  and  fiscal                    impositions shall be paid and no person interested under this Deed shall be entitled to                    make any claim whatsoever against the Trustee by reason of such payment;          8.1.7      power to arrange for any member of the Group to account to H M Revenue & Customs or                    other  authority  concerned  for  any  amounts  deducted  from  the  sums  of  money  paid  or                    credited to the Trustee by any member of the Group or from or in respect of any amounts                    paid or property transferred by the Trustee to Beneficiaries in respect of income tax or                    any other deductions required by law;          8.1.8      power  to  delegate  to  any  other  person  or  persons  (including  any  one  or  more   of                    themselves)  all  or any  of  the  administrative  and  management  functions  and  powers                    (including investment powers) vested in the Trustee either by virtue of the provisions of                    this Deed or by virtue of its office as Trustee PROVIDED THAT:-                     (a)     this power shall apply only after the Plan is no longer a Schedule 2 SIP; and                     (b)     the Trustee shall not be entitled to delegate the exercise of discretionary trusts                            and  powers  in  relation  to  the  Trust  Fund  which  require  or  empower  the                            determination of beneficial interests in the Trust; and                     (c)     no  such  delegation  shall  take  effect  so  as  to  divest  the  Trustee  of  any  duty                            imposed on the Trustee by the provisions of this Deed; and                     (d)     the  Trustee  shall  remain  liable  for  the  acts  and  defaults  of  such  person  to  the                            intent that Section 23 of the Trustee Act 2000 shall not apply;          8.1.9      power  to  convert  any  moneys  forming  part  of  the  Trust  Fund  into  any  other  property,                    whether income producing or not, in particular power to acquire any property with moneys                    forming  part  of the  Trust  Fund  or  the  income  of  the  Trust  Fund  and  to  transfer  such                    property  or  any  part  of  it  to  any  Beneficiary  in  exercise  of  the  Trustee's  powers  and                    discretions;          8.1.10     power to deal with the Trust Fund as if the Trustee were a sole absolute beneficial owner                    of the Trust Fund;          8.1.11     power to make any payment to any Beneficiary into such Beneficiary's bank account and                    in such case the Trustee shall be discharged from obtaining a receipt or seeing to the                    application of such payment;          8.1.12     power to enter into any agreement or grant any option for the sale or other disposition of                    any shares , stock or securities comprised in the Trust Fund upon any terms and for any      LMF/UKDP/UKM/92357982.1                                                                        43   

 

                    consideration whatsoever and power  to give warranties indemnities and undertakings for                    the above purposes;          8.1.13     subject to Clause 5.2, power to make and to amend by resolution in writing such rules as                    the Trustee may in its absolute discretion think fit for the purpose of determining the basis                    upon which the Trust Fund shall be  paid or applied to or for the  benefit of Beneficiaries;          8.1.14     power  in  its  absolute  discretion  to  enter  into  any  transaction  with  any  other  person  or                    persons  whether  that  person  or  persons  is  or  are  acting  in  a  fiduciary  capacity  or  not                    (being a transaction which apart from foregoing provisions of this Deed the Trustee could                    properly have entered into if it or any Trustee had not also been or been interested in                    such other person or persons) notwithstanding that the Trustee or any of them may also                    be or be interested in such other person or persons and in like manner in all respects as if                    the  Trustee  or  any  of  them  were  not,  or  were  not  interested  in,  such  other  person  or                    persons; and          8.1.15     power to agree with H M Revenue & Customs that, if the Market Value of any Shares falls                    to be determined for the purposes of Schedule 2, the Market Value of such Shares shall                    be determined by reference to such date or dates, or to an average of the values on a                    number of dates , as may be specified in such agreement.   8.2    Each such power shall be a separate power in addition and without prejudice to the generality of all         other powers vested in the Trustee, and the Trustee may exercise all or any of the same from time to         time, without the intervention of any Beneficiary, in such manner and to such extent as it shall in its         absolute discretion think fit SAVE THAT the Trustee shall not exercise any such power if or to the         extent that to do so would be inconsistent with the trusts of this Deed.   8.3    The discretions conferred upon the Trustee by this Deed or by law shall be absolute and unfettered         discretions and the Trustee shall not be obliged to give any person beneficially interested under this         Trust any reason or justification for any exercise or non-exercise of any such discretion.   9.     PERPETUITY  PERIOD          The  perpetuity  period  applicable  to  this  Trust  shall  be  the period  of  125  years  from  the  date  of         execution of this Deed.   10.    TRUSTEE   10.1   Subject  to  the  following  provisions  of  this  Clause 10,  the  statutory  power  of  appointing  new  or         additional  trustees  of  this  Trust  shall  be  vested  in  the  Company  and  the  Company  shall  have  the         power, exercisable by deed, to remove any person as Trustee and to appoint any new Trustee in the         place of such person SAVE THAT:-          10.1.1     the  power  conferred  by  this  Clause 10.1 shall  only  be operative  and  capable  of  taking                    effect  on  the  expiry  of  one  month  from  the  date  on  which  the  person  who  is  to  be                    removed  as  Trustee  receives  notice in  writing  of such  removal  and  every  new  Trustee                    accepts office as such new Trustee; and          10.1.2     if the Company shall be the subject of a Takeover Offer which becomes or is declared                    unconditional in all respects the Company shall not exercise any power to remove any                    person  as  a  Trustee  or  to  appoint  a  new  or  additional  Trustee  at  any  time  within  the                    period of thirty days beginning with the date on which such Takeover Offer becomes or is                    declared unconditional in all respects.   10.2   Every Trustee shall be resident in the United Kingdom and the Company shall immediately remove as         a Trustee any Trustee who ceases to be resident in the United Kingdom.   10.3   The minimum number of Trustees shall be two individuals or a body corporate.   10.4   So long as the number of Trustees is below the minimum number, the Trustee shall not be entitled to         exercise any discretion or power pursuant to the terms of this Deed.   10.5   Any Trustee may, at any time, by written notice given to the Company and to the remaining Trustees         (if any), retire from his office at the expiry of one month from the date when such notice is received by         the  Company  or  any  shorter  period  agreed  in  writing  by  the  Company PROVIDED  THAT such      LMF/UKDP/UKM/92357982.1                                                                        44   

 

         retirement  shall  not  take  effect   unless  and   until  immediately   after   it  there  will  be  as  Trustees,         (whether  by  virtue  of  an  appointment  taking  effect  forthwith  upon  such  retirement  or  otherwise),  at         least the minimum number of persons required by Clause 10.3 to be the Trustees. If the Company has         failed to appoint a replacement Trustee by the expiry of the one month period (or such longer period         as may be agreed) , and this means that the Trustee's retirement cannot take effect as a result of this         Clause 10.5 and Clause 10.3, the  retiring Trustee may by deed appoint an additional Trustee(s) and         its retirement shall  thereupon become effective.   10.6   Any  person  who  ceases  to  be  a  Trustee  shall  execute  and  do  or  make  all  such  transfers  or  other         documents acts or things as may be necessary for vesting the Trust Fund in the new or continuing         Trustee or placing it under the control of the Trustee and shall be bound and entitled to assume that         any new Trustee is a proper person to have been appointed PROVIDED ALWAYS that if any outgoing         Trustee is liable as Trustee for any duties or taxes or fiscal impositions (including without prejudice  to         the generality of the foregoing words capital gains wealth gifts probate succession death or any other         duties or taxes on capital or income) wheresoever arising and whether or not enforceable through the         courts  of  the  place  where  such  Trustee  is  resident  or  where  this  Trust  is  for  the  time  being         administered  then  that  person  shall  not  be  bound  to  transfer  the  Trust  Fund  as  aforesaid  unless         reasonable security is provided for indemnifying them and their estates against such liability.   10.7   A trust corporation or other corporate trustee may be appointed by deed to be a Trustee upon such         terms  as  to  remuneration  and  otherwise  as  may  be  agreed  at  the  time  of  its  appointment  by  the         person  or  persons  making  the  appointment  (on  the  one  hand)  and  the  trust  corporation  or other         corporate trustee (on the other hand).   10.8   The  provisions  of  sections  37  and  39  of  the  Trustee  Act  1925  shall  apply  to  this  Trust  as  if  any         reference  in those sections  to  a  trust  corporation  were  a  reference  to  a  company or  body         corporate carrying on trust business.   11.    REMUNERATION OF THE TRUSTEE   11.1   Any Trustee, or any director or other officer of a body corporate acting as a Trustee being an individual         engaged in any profession or business, shall be entitled to be paid all usual professional or proper         charges for work done by him, his firm or his company in connect ion with the trusts declared in this         Deed, on the usual terms and conditions of such firm or company in force from time to time including         (in addition to reimbursement of such firm or company's proper expenses, costs and other liabilities)         the  right  to  remuneration  and  the  incidence  of  remuneration  whether  such  work  is  in  the  ordinary         course of his profession or business or not, including acts which a Trustee, not being in any profession         or business, could have done personally.   11.2   Any corporate body acting as Trustee :-          11.2.1     may carry out, in its own office, in connection with this Trust, any business which by its                    constitution  it  is  authorised  to undertake  and  in  which  it  is  then,  in  fact,  ordinarily                    engaged,  upon  the  same  terms  as  would  for  the  time  being  be  made  with  an  ordinary                    customer and if it is a bank, it shall be entitled to act as a banker to and make advances                    to the Trustee in connection with the trusts declared in this Deed, without accounting for                    any profit thereby made and in all respects as if it were not a Trustee; and          11.2.2     may employ as a banker or investment adviser or other agent, on behalf of this Trust, any                    company, firm or enterprise associated with it PROVIDED THAT such agent is authorised                    by its constitution to undertake such business and that it is, in fact, ordinarily so engaged                    and that all charges made by it for work done or services provided in connection with the                    trusts declared in this Deed are reasonable and normal.   12.    PERSONAL INTERESTS OF TRUSTEE   12.1   No decision of or exercise of a power by the Trustee shall be invalidated or questioned on the grounds         that  the  Trustee  or  any  individual  Trustee  or  any  director  or  other  officer  or employee  of  a  body         corporate  acting  as  Trustee  had an  interest  in  a  personal  or  fiduciary  capacity  in  the  result  of  any         decision or in the exercising of any power and any such person may vote in such respect and be taken         into account for the purposes of a quorum notwithstanding his interest.   12.2   A Beneficiary who is a Trustee or a director or other officer or employee of a body corporate acting as         Trustee may retain all benefits to which he becomes entitled under this Deed and shall not be liable to      LMF/UKDP/UKM/92357982.1                                                                        45   

 

         account for any property paid to or applied for the benefit of him or any spouse, former spouse, civil         partner, child (including step-child) of such Beneficiary.   12.3   Any Trustee, and any director or other officer or employee of a  body corporate  acting  as Trustee,         shall not be precluded from acquiring, holding or dealing with any debentures, debenture stock, shares         or securities whatsoever of the Company or any Subsidiary or from entering into any contract or other         transact  ion  with  the  Company  or  such  Subsidiary  or  being  interested  in  any  such  contract  or         transaction and none of them shall be in any manner whatsoever liable to account to the Company or         the Beneficiaries for any resulting profits made or benefits obtained by him or it.   12.4   Any Trustee, or any director or other officer or any employee of a corporate body acting as Trustee, or         any associate or person or body connected with the Trustee may be employed and remunerated as a         director or other officer or employee or as agent or adviser of any company , body or firm in any way         connected with this Trust or the Trust Fund and may keep as his property (and without being liable to         account  therefor)  any  remuneration,  fees  or  profits  received  by  him  in  any  such  capacity,         notwithstanding that his situation or office may have  been obtained, held or retained by means or by         reason of his position as Trustee or as a director or an employee or officer of a corporate trustee of the         trusts declared in this Deed.   13.    PROTECTION OF THE TRUSTEE   13.1   In the professed execution of the trusts and powers contained in this Deed, no Trustee, or director or         other officer or employee of a body corporate acting as Trustee , shall be liable for any loss arising by         reason of:-          13.1.1     negligence  or  fraud  of  any  other  trustee  of  this  Trust  or  director  or  other  officer  or                    employee of a body corporate acting as such other trustee; or          13.1.2     any  mistake  or  omission  made  in  good  faith  by  any  of  the  trustees  or  any  such  other                    person; or          13.1.3     any  other  matter  or  thing  except  loss  arising  by  reason  of  fraud,  wilful  default  or                    negligence on the part of the Trustee or other person who is sought to be made liable.   13.2   The  Company  HEREBY  COVENANTS       with  the  Trustee  and  every  director  or  other  officer  or         employee of a body corporate acting as Trustee jointly and severally for themselves and as trustees         for their successors in title that it will at all times after the execution of this Deed keep each of them         and each of their successors in title as Trustee and each of their estates and effects fully indemnified         and saved harmless both before as well as after any removal or retirement of a Trustee pursuant to         Clause 10  against  all  claims,  losses,  demands,  actions,  proceedings,  charges,  expenses,  costs,         damages, taxes, duties and other liabilities that may be suffered or incurred by it or by any of them in         connection with the execution of the trusts and powers of this Deed other than liabilities arising as a         consequence of fraud , wilful default or (in the case of a Trustee , or any director or other officer or         employee of a body corporate acting as Trustee, who is engaged in the business of providing a trustee         service  for  a  fee)  negligence  and  save  to  the  extent  that  any  such  liability  is  capable  of  being         discharged  at  the  expense  of  the  Trust  Fund.  In  addition,  the  Trustee  shall  have  the  benefit  of  all         indemnities conferred on trustees by the Trustee Acts 1925 and 2000 and generally by law.   14.    INFORMATION SUPPLIED BY THE COMPANY          The Trustee shall be entitled to rely, without further enquiry, on all information supplied to it by the         Company  or  any  Participating  Company  and/or any  directors  or  officers  of  the  Company  or  any         Participating Company with regard to its duties as trustee of the trusts declared in this Deed whether         or not such information is for the purposes of or relates to the operation of the Plan, and the Trustee         shall not be liable to any Participant or any member of the Group for any loss arising in consequence         of the incompleteness  or inaccuracy of any such information.   15.    POWER OF MODIFICATION   15.1   Subject  to  Clause 15.3,  during  the  Trust Period,  the  Company  shall  have  power,  so  as  to  bind  the         Trustee, to vary, amend, modify, alter or extend the trusts, powers and provisions of this Deed in any         manner and in any particular whatsoever by deed delivered to the  Trustee revocable (during the Trust         Period) or irrevocable, which shall be expressed to be supplemental to this Deed, and this Deed shall         then be read and construed and take effect as if the provisions of such deed were incorporated in this         Deed PROVIDED THAT no exercise of these powers may:-      LMF/UKDP/UKM/92357982.1                                                                        46   

 

         15.1.1     amend the definition of "Beneficiary" in Clause 1.1, or amend Clauses 10.3 (minimum                    number of trustees), 13.2 (indemnity), or the proviso to Clause 8.1.5 (borrowing) insofar                    as they relate to loans made by any member of the Group;          15.1.2     confer on any person other than an employee or former employee of any member of the                    Group any eligibility or entitlement to benefit;          15.1.3     extend  the  power  conferred  by  this  Clause 15 (modification)  or  remove  the  restrictions                    contained in this proviso;          15.1.4     be  effective  to  amend  Clauses 10.6 (outgoing  Trustee)  , 10.7 (appointment)  , 11                    (remuneration), 12 (personal interests) or 13 (protection), or otherwise to impose on the                    Trustee any obligations more onerous than the obligations accepted by the Trustee under                    this Trust prior to such purported amendment without the prior consent of the Trustee in                    writing;          15.1.5     cause this Trust to cease to be an Employees' Share Scheme;          15.1.6     reduce or adversely affect the right or interest of any Beneficiary insofar as such right or                    interest  has  been  granted,  awarded  or  allocated  pursuant  to  the  prior  exercise  by  the                    Trustee of the Trustee's powers under this Deed; or          15.1.7     adversely affect the position of the Trustee unless the Trustee gives prior written consent                    to such amendment.   15.2   For so long as the Plan remains a Schedule 2 SIP, no alteration shall be made to any Key Feature of         this Deed which would result in the Plan ceasing to be a Schedule 2 SIP and without compliance with         such process as may apply or be required by H M Revenue & Customs from time to time in relation to         the amendment of a Key Feature.   15.3   Every power, authority or discretion conferred upon the Trustee or any other person and not expressly         made exercisable only during a period allowed by law shall (notwithstanding anything to the contrary         expressed or implied in this Deed) only be exercisable during the Trust Period and during such further         period  if  any  (whether  definite  or indefinite)  as  in  the  case  of the  particular  power,  authority  or         discretion the law may allow.   16.    PROPER LAW          The trusts of this Trust are established under the laws of England and Wales and subject as provided         in this Deed the rights of the Beneficiaries and the rights powers and duties of the Trustee under this         Deed and the construction of every provision of this Deed shall be determined according to the laws of         England and Wales.   17.    EXCLUSIONS FROM BENEFIT          Notwithstanding anything to the contrary expressed or implied in this Deed, no part of the Trust Fund         or its income shall at any time be paid or lent or otherwise applied nor shall any power or discretion in         this  Deed  or  by  law  conferred  on  the  Trustee  or  on  any  other  person  in  any  circumstances  be         exercisable or exercised in any manner which causes the Company or any one or more Subsidiaries         to be in breach of Chapter 2 of Part 18 of the Companies Act 2006 or causes this Trust to fall outside         the provisions of Section 86 of the Inheritance Tax Act 1984.   18.    COUNTERPARTS          This  Deed  may  be  executed  in  any  number of  counterparts,  and  by  the  parties  on  separate         counterparts, but shall not be effective until each party has executed at least one counterpart. Each         counterpart shall constitute an original of this Deed but all of the counterparts shall together constitute         but one and the same instrument.   19.    IRREVOCABILITY OF TRUSTS          The trusts declared by this Deed are irrevocable.   EXECUTED AS A DEED by the parties on the date which first appears in this Deed.      LMF/UKDP/UKM/92357982.1                                                                        47   

 

  EXECUTED (but not delivered until dated) as a )                         Deed by LUXFER HOLDINGS PLC acting by:-      )                                              )                                                                                                                                                                                                                                              Director                                                                                                                                                                                                                                                                                                                                                                        [Secretary/]Director                                                       EXECUTED (but not delivered until dated) as a )                         Deed under the COMMON SEAL of                ) COMPUTERSHARE TRUSTEES LIMITED in the        )  presence of:-                                                                                                                                                                                                                                                                               Director                                                                                                                                                                                                                                                                                                                                                                        [Secretary/]Director                                                          LMF/UKDP/UKM/92357982.1                                                                        48

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