Document:

Exhibit 4.5

	

23rd July 2001

REUTERS
GROUP PLC

THOMAS H.
GLOCER

SERVICE
AGREEMENT

[LOGO] FRESHFIELDS
BRUCKHAUS DERINGER 

	

CONTENTS

	CLAUSE	PAGE
		 		
	1.	 	DEFINITIONS  	1
		 		
	2.	 	DURATION OF EMPLOYMENT  	1
		 		
	3.	 	ROLE, POWERS AND DUTIES 	1
		 		
	4.	 	NORMAL PLACE OF WORK 	2
		 		
	5.	 	HOURS OF WORK 	2
		 		
	6.	 	SALARY AND BENEFITS 	3
		 		
	7.	 	EXPENSES	4
		 		
	8.	 	OTHER INTERESTS	4
		 		
	9.	 	INVENTIONS AND IMPROVEMENTS 	5
		 		
	10.	 	CONFIDENTIALITY 	6
		 		
	11.	 	TERMINATION  	7
		 		
	 	 	Summary dismissal 	7
	 	 	Termination by the Company through illness 	8
		 	Termination by the Company without Cause  	8
		 	Termination through loss of directorship 	9
		 	Termination by you without Good Reason  	9
		 	Termination by you with Good Reason  	10
		 	Cessation Compensation 	11
		 	Mitigation	12
	 	 	Return of documents	12
	 	 	Resignation as a director	12
	 	 	Share schemes	12
		 		
	12.	 	SUSPENSION	13
		 		
	13.	 	CONTINUING OBLIGATIONS	14
		 		
		 	Non-representation	14
		 	Non-solicitation of employees	14
		 	Non-solicitation of business	14
		 	Non-dealing	15
		 	Non-competition	15
		 	Extension to other persons	15
		 	Acknowledgement of reasonableness	15
		 		
	14.	 	GRIEVANCE PROCEDURE	16

	

[LOGO]  

	

		 		
	15.	 	WAIVER	16
		 		
	16.	 	AMENDMENTS	16
		 		
	17.	 	NOTICES	16
		 		
	18.	 	OTHER AGREEMENTS  	17
		 		
	19.	 	GOVERNING LAW	17
		 		
	20.	 	WITHHOLDING OR DEDUCTIONS FOR TAX	17
		 		
	 	 	SCHEDULE 1 	18
		 		
	 	 	OTHER BENEFITS	18
		 		
	21.	 	BONUS	18
		 		
	22.	 	HOLIDAYS	18
		 		
	23.	 	PENSION PLANS	18
		 		
	24.	 	LONG TERM INCENTIVE PLAN	19
		 		
	25.	 	MEDICAL/DISABILITY INSURANCE	19
		 		
	26.	 	LIFE ASSURANCE	19
		 		
	27.	 	COMPANY CAR	19
		 		
	28.	 	DIRECTORS’ INDEMNITY AND INSURANCE	19
		 		
	29.	 	OTHER BENEFITS	20

		
		 	
	SCHEDULE 2	 	22
		 	
	COMPETING BUSINESS CONCERNS AS AT THE DATE OF THIS AGREEMENT	 	22
		 	
	SCHEDULE 3	 	23
		 	
	PERMITTED SHAREHOLDINGS AS AT THE DATE OF THIS AGREEMENT	 	23

	

[LOGO] 

	

AGREEMENT is made on 23rd July 2001 

BETWEEN

(1) REUTERS GROUP PLC registered in
England with No. 3296375 whose registered office is at 85 Fleet Street, London, EC4P 4AJ
(the Company); and 

(2) THOMAS HENRY GLOCER of 32 Hyde
Park Gate, London SW7 (you). 

IT IS AGREED as follows: 

DEFINITIONS

1. In this Agreement the following
expressions shall have the following meanings: 

Board means the board of directors
of the Company or a duly constituted committee of the board of directors; 

Employment means your employment in
accordance with the terms and conditions of this Agreement; 

Group
means the Company, any holding company of the Company and any
subsidiary of the Company or of any such holding company (with holding company
and subsidiary having the meanings given to them by section 736 of the
Companies Act 1985 of England and Wales). Group Company and
Group Companies shall be construed accordingly; 

Relevant
Year means the three successive periods, 1 January – 31
December 2001, 1 January – 31 December 2002 and 1 January 2002 – 31
December 2003; and 

Remuneration
Committee means the remuneration committee of the Board. 

DURATION OF
EMPLOYMENT

2.1 This Agreement will be
effective from 1 July 2001 (the Effective Date). Your
Employment under this Agreement will continue until terminated in accordance
with Clause 11 below (the Employment Period). 

2.2 It is acknowledged that your
continuous employment for statutory purposes began on 29 September 1993. 

ROLE, POWERS
AND DUTIES

3.1 From the Effective
Date, you will serve the Company as Chief Executive Officer of the Company and
executive director of the Company. 

3.2 During the Employment
Period, you will exercise such powers and perform such duties in relation to the
business of the Company and the Group, being duties which are customary,
appropriate to and consistent with your status as may reasonably be assigned to
you by the Board from time to time. During the Employment Period, you shall
report solely and directly to the Board. 

	

3.3 During the Employment Period you
will: 

	(a)		
subject to Clause 8.1, devote substantially the whole of your working time,
attention and abilities to carrying out your duties under Clauses 3.1 and 3.2; 

	(b) 		comply
with the duties imposed on you as a director by law; 

	(c) 		use
all reasonable endeavours to promote the interests of the Company and any other Group
Company which you may be required to serve under the terms of this Agreement; 

	(d)		
have due regard to the Reuter Trust Principles and to the rights and duties of
the Reuter Trustees as set out in the Memorandum and Articles of Association of
the Company and in the Memorandum and Articles of Association of Reuters
Founders Share Company Limited insofar as, by the proper exercise of your powers
(and in accordance with your other duties) as director of the Company, the
Reuter Trust Principles are capable of being observed by you; 

	(e)		
have due regard to the provisions of the Reuters Code of Conduct (as notified to
you from time to time) and, so far as reasonably practicable in the performance
of your duties, observe all material provisions of that Code; 

	(f) 		comply
with the Reuters Share Dealings Code (as notified to you from time to time); 

	(g) 		have
due regard to the provisions of all other material policies which apply to you as an
executive employed by a Group Company, as notified to you from time to time; and 

	(h)		
other than absences due to illness or vacation or as otherwise may be required
to fulfil your duties hereunder, regularly attend meetings of the Board and of
any committees of the Board to which you may be appointed. 

	

NORMAL PLACE
OF WORK

4. Your normal place of
work is at the Company’s head office in London. You will be required, in
the performance of your duties, to travel in the United Kingdom and overseas.
However, having given you not less than 90 days’ notice, the Company may
reasonably require you to relocate to perform your duties at the offices of
another Group Company in New York. In addition, the Company shall reimburse you
all relocation expenses in respect of your relocation to New York in a manner
which is consistent with the benefits provided in Clause 9 of Schedule 1. 

HOURS OF WORK

5. You will work the
Company’s normal working hours together with such additional hours as may
reasonably be required for the proper performance of your duties. 

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SALARY AND
BENEFITS

6.1 You will be paid a base
salary at the rate set out in a letter to you from the Company of the same date
as this Agreement and as confirmed in your annual statement of remuneration and
benefits (the Base Salary) and you will also be entitled to
the additional remuneration and benefits set out in Schedule 1. 

6.2 Your Base Salary will
be paid in equal monthly instalments in accordance with the Company’s
customary payroll practices for senior executives. If your Base Salary is
increased, then such increased Base Salary shall constitute Base Salary for all
purposes under this Agreement. 

6.3 You are not entitled to
any other salary, fees or remuneration as director or employee of the Company or
any other Group Company save as provided herein and other than as provided in
documentation relating to your directorships of other Group Companies and you
must, as the Company directs, either waive your rights to any such salary, fees
or remuneration or account for the same to the Company failing which it will be
deducted from your salary. 

6.4 For the year 2001 the
Company has procured the award to you of 565,113 Company shares under the
Reuters Discretionary Share Option Plan (the Option Plan)
and the award to you of 174,451 Company Shares under the Reuters Long Term
Incentive Plan (the Incentive Plan). The Company will
procure that in respect of each remaining Relevant Year during your Employment
you receive an equity based incentive award with a fair market value of at least
US$4,387,500 (comprising an award with a fair market value of at least
US$2,325,000 under the Incentive Plan and an award with a
fair market value of at least US$2,062,500 under the Option Plan) (such values
to be converted into sterling at the prevailing rate on the Effective Date) on
terms and conditions no less favourable than those applicable to similar awards
made to executive directors of the Company. For the purpose of calculating fair
market value under this Clause 6.4, for the calendar year ending 31 December
2001, the fair market value of a notional award of US$1.00 under the Incentive
Plan and the Option Plan was US$0.75 and US$0.29 respectively. For future
Relevant Years, such market value shall be determined by reference to the same
methodology as used to calculate fair market value for the calendar year ending
31 December 2001. Thereafter during the Employment, you will be eligible to
receive equity based incentive awards on a basis commensurate with your position
as Chief Executive Officer of the Company and the level of equity based
incentive awards made to the chief executive officers of publicly listed
companies comparable in size and industry to the Company, taking into account
all relevant circumstances, including without limitation, your performance and
the performance of the Company. 

6.5 Your Base Salary and
benefits will be reviewed annually by the Remuneration Committee no later than
in December. Any change in the level of your Base Salary and benefits as a
result of the review (which will not be downwards) will be effective from 1
January of the year following the review. Your bonus opportunity as a percentage
of salary (with salary calculated in accordance with paragraph 1 of Schedule 1)
shall not be reduced below 125% in respect of the financial years 2001-2003
inclusive and shall not be reduced below 150% in respect of subsequent financial
years during your Employment and the performance criteria pursuant to which such
bonus is based shall not be materially altered to your detriment. 

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6.6 During or after the
termination of the Employment for whatever reason, the Company may deduct from
your pay any undisputed sums outstanding to the Company or to any other Group
Company from you including, without limitation, any advance of pay or loans or
floats for expenses which would become due upon such termination. 

EXPENSES

7. Subject to the
Company’s policies on executive directors’ expenses and executive
directors’ spouse expenses (as notified to you from time to time), the
Company will reimburse to you all reasonable travelling, hotel and other
out-of-pocket expenses (including first class travel expenses) properly incurred
by you and your spouse in the execution of the duties of the Employment against
production of valid receipts and properly completed expense reports. 

OTHER INTERESTS

8.1 During the Employment
Period you will be entitled to accept appointments as a non-executive director
of companies other than a Group Company subject to: 

	(a)		
the prior written consent of the Chairman of the Company (such consent to be
confirmed by the Board and it being understood and agreed that you currently
serve as a non-executive director of certain entities previously disclosed to
the Company); and 

	(b) 		the
Company’s policy on non-executive directorships (as notified to you from time to
time). 

	

You may retain any fees
received as a non-executive director. Days of service as a non-executive
director will not be deducted from your holiday entitlement provided that you
shall not spend more than ten working days in aggregate in any year in such
service. At any time during the Employment Period the Company may, with
reasonable cause, require you to resign any non-executive directorship held.
Reasonable cause for this purpose shall include but not be limited to a conflict
of interest and such other reason or reasons as may be specified in the Reuters
Code of Conduct (as notified to you from time to time). 

8.2 During the Employment
Period you will not be directly or indirectly concerned in any business, trade,
profession or other occupation (whether as an employee, consultant, agent,
director or otherwise) of a similar nature to or competitive with that carried
on by the Company or any Group Companies except: 

	(a) 		as
a representative or officer of a Group Company; 

	(b) 		as
a non-executive director under Clause 8.1; 

	

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	(c)		
by virtue of your being interested in securities not representing more than (i)
one per cent of a company’s issued securities of any class which are either
listed on a recognised stock exchange or dealt on an unlisted securities market
or an alternative investment market or authorised for quotation in a recognised
inter-dealer quotation system or (ii)  two per cent of a private operating
company or (iii) five per cent of a private company where such interest takes
the form of a purely passive investment, provided that you will make disclosure
of your investments as required by law or by the requirements of any regulatory
body to which the Company is subject; or 

	(d) 		with
the prior written consent of the Board. 

	

8.3 For the avoidance of
doubt, it is confirmed that, as at the date of this Agreement, you have been
given approval to retain your current interest in securities in the company(ies)
referred to in Schedule 3 to this Agreement. 

8.4 You may serve on the
board of religious, charitable, civic or public service organisations or
otherwise be engaged in the activities of such organisations provided so serving
or being so engaged does not prejudice your ability to fulfil your duties under
this Agreement. 

INVENTIONS AND
IMPROVEMENTS

9.1 It will be part of your normal
duties at all times: 

	(a)		
to consider in what manner and by what new methods or devices the products,
services, processes, equipment or systems of the Company and other Group
Companies with which you are concerned or for which you are responsible might be
improved; and 

	(b)		
promptly to give to the Company Secretary full details of any invention or
improvement which you may from time to time make or discover in the course of
your duties provided that any inadvertent or unintentional failure on your part
to provide such details shall not be a breach of this Agreement. 

	

Subject to the Patents Act
1977 of England and Wales, the Company will be entitled free of charge to the
sole ownership of any such invention or improvement and to the exclusive use of
it. 

9.2 You assign to the
Company (or to such other Group Company as the Company may direct) all
copyrights, designs and other proprietary rights, if any, which may be so
assigned in respect of all works and designs created by you or relating to your
responsibilities during the Employment for the full term of those rights to the
intent that those rights will immediately upon the completion of the relevant
work rest with the Company (or with such other Group Company as the Company may
direct). 

9.3 At the request and cost
of the Company, you will do all such acts and things as may in the opinion of
the Board be necessary or conducive to vest such rights in the Company (or in
such other Group Company as it may direct). You irrevocably authorise the
Company for the purposes of this Clause to make use of your name and to sign and
to execute any documents or do any thing on your behalf. 

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9.4 You will not do
anything knowingly to imperil the validity of any patent or protection owned by
the Company (or in relation to which the Company is entitled to assert a right
of ownership, whether pursuant to this Clause 9 or otherwise) or any application
for any such patent or protection. 

9.5 You will not either
during or after the termination of the Employment exploit or assist others to
exploit any invention or improvement owned by the Company (or in relation to
which the Company is entitled to assert a right of ownership, whether pursuant
to this Clause 9 or otherwise) which you may from time to time make or discover
in the course of your duties or (unless it shall have become public knowledge)
make public or disclose any such invention or improvement or give any
information in respect of it except to the Company or as the Company may direct. 

9.6 You irrevocably waive
in favour of the Company (and in favour of such other Group Company as the
Company may direct), its licensees and successors-in-title any and all moral
rights in any works (existing or future) the subject of copyright made by you in
the course of the Employment. 

CONFIDENTIALITY

10.1 During and after the
termination of the Employment you will at all times keep confidential all
private information about the Company and other Group Companies including
technical and financial information, which you may have acquired while in the
employment of the Company or of any other Group Company. You will not use such
information for your own benefit or for the benefit of any business not within
the Group. You will keep such information confidential to yourself, to other
members of the Board and to anybody who needs such information in order properly
to discharge his duties to the Company or any Group Company. Such information
includes (without limitation) the following: 

	(a)		
the business methods and information of the Company and any other Group
Companies (including, without limitation, prices charged, discounts given to
customers or obtained from suppliers, product development, marketing and
advertising programmes, costing, budgets, turnover, sales targets and other
financial information); 

	(b) 		lists
and particulars of the suppliers and customers of the Company or of any other Group
Companies and the individual contacts at such suppliers and customers; 

	(c) 		details
and terms of the agreements with suppliers and customers of the Company or of any other
Group Companies; 

	(d) 		secret
development manufacturing or production processes and know-how employed by the Company or
any other Group Companies or their respective suppliers; and 

	

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	(e)		
confidential details as to the design of the products and inventions or
processes relating to the provision of services or developments relating to
future products and services of the Company or of any other Group Companies or
those of their respective suppliers. 

	

10.2 These restrictions
shall not apply to any disclosure or use authorised by the Board, as required in
the ordinary performance of your duties or required by law or by the
requirements of any regulatory or other authority to which the Company or any
other Group Company or yourself is subject or as is reasonably necessary in
connection with any adversarial proceedings against the Company and/or Group
Company. 

10.3 These restrictions
shall not apply to information which is already in the public domain other than
in cases where such information has become public as a result of a breach by you
of these restrictions. 

10.4 These restrictions
shall not restrict you from using your own personal skill in any business in
which you may lawfully be engaged after termination of the Employment. 

TERMINATION

Summary
dismissal

11.1 The Company may
terminate the Employment for Cause by immediate notice in writing and without
payment of any kind other than any accrued but unpaid Base Salary, Bonus (as
defined in Clause 1 of Schedule 1) and holiday pay up to the date of termination
and any other benefits or payments (including reimbursement of expenses) to
which you may be entitled under any benefit scheme of the Company or any Group
Company up to the date of termination (the Accrued
Benefits). 

For the purposes of this
Agreement “Cause” shall mean: 

	(a) 		if
you commit any act or omission which constitutes: 

			(i) 		gross
misconduct; or

			(ii) 		persistent
misconduct continuing after demand for cessation of such misconduct is delivered in
writing by the Board or by the Company Secretary on instruction from the Board where such
act does not cease or such omission is not remedied within ten (10) days following
delivery of such written demand; or

	(b) 		if
you wilfully commit any material breach of any material provision of this Agreement; 

	(c)		
if you wilfully neglect or refuse to carry out any material part of your duties
(other than for a reason set forth in Clause 11.2) and which is not remedied by
you, if capable of remedy, within ten (10) days following written notice by the
Board of its intention to terminate the Employment under this sub-Clause (c); 

	

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	(d)		
if you engage (either in bad faith or intentionally and with recklessness as to
the consequences of your actions) in any conduct which materially damages the
reputation of the Company or any other Group Companies; 

	(e)		
if you become prohibited by law from being a director of the Company due to your
misconduct (including by virtue of your having committed an offence under
section 213 or 214 of the Insolvency Act 1986); or 

	(f) 		if
you terminate your directorship of the Company without Good Reason or without the consent
of the Board. 

	

For purposes of this Clause
11.1, no act, or failure to act, by you shall be considered to have been done or
omitted to be done “wilfully” unless committed in bad faith or without
a reasonable degree of skill or care or without a reasonable belief that the act
or omission was in the best interests of the Company or any Group Company. 

Cause shall not exist under
sub-Clauses (a), (b), (c) or (d) unless and until the Company has delivered to
you a copy of a resolution duly adopted by a majority of all the members of the
Board at a quorate Board meeting (such majority and quorum to exclude you)
called and held for such purpose (after not less than three business days’
notice to you and an opportunity for you and, where the Board agrees in advance,
your counsel, to be heard before the Board) finding that Cause exists. 

Termination by
the Company through illness or death

11.2 The Company may
terminate the Employment if you are prevented by illness (including mental
illness) or injury from attending to your duties for more than 365 days in
aggregate in any one period of twenty four (24) consecutive calendar months. The
Company will not terminate the Employment pursuant to this Clause 11.2 if,
as a result, you would or may forfeit any entitlement to benefits under the
permanent health insurance arrangements referred to in Schedule 1 unless it can
procure the provision of continued cover under those arrangements or reimburse
you the cost of premiums for continued cover under those arrangements or under
other arrangements providing substantially similar cover for the period of the
illness in question or until benefits would apart from such termination have
ceased to be payable had the Employment continued or until you obtain permanent
health insurance cover from a subsequent employer, whichever is the shortest
period. Upon such termination of Employment or due to your death, the Company
shall pay you the Accrued Benefits and you shall be entitled to the benefits
provided for in Clause 11.12. 

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Termination by
the Company without Cause

11.3 The Company may
terminate the Employment without Cause by giving you 30 days’ advance
written notice. Upon such termination of Employment, the Company shall pay you
the aggregate of (i) the Accrued Benefits and (ii) the Cessation Compensation in
cash in accordance with Clause 11.7 and (iii) you shall be entitled to the
benefits provided for in Clause 11.12. In addition, the Company shall maintain
in full force and effect, for the continued benefit of you, your spouse and your
children for a period of one year following the date of termination the medical,
hospitalisation, dental, and life insurance schemes in which you, your spouse
and your children were participating immediately prior to the date of
termination at the level in effect and upon substantially the same terms and
conditions (including without limitation contributions required by you for such
benefits) as existed immediately prior to the date of termination. If you, your
spouse or your children cannot continue to participate in the Company schemes
providing such benefits, the Company shall arrange, at its discretion, either to
provide you, your spouse and your children with the cash equivalent of such
benefits which they otherwise would have been entitled to receive under such
schemes or to pay the premiums to enable continued participation in equivalent
schemes for a period of one year following the date of termination. The
Company’s obligation to provide continuing arrangements in relation to
medical, hospitalisation, dental and life assurance schemes under this Clause
11.3 shall terminate on the date or dates you receive equivalent cover and
benefits, without waiting period or pre-existing condition limitations under the
schemes of a subsequent employer (such cover and benefits to be determined on a
cover by cover and benefit by benefit basis). If you obtain cover or benefits
relating to medical, hospitalisation, dental and life insurance schemes from a
subsequent employer which are less generous than those provided to you by the
Company, you shall be entitled from the Company only to the difference between
the cover or benefits you obtain from a subsequent employer and those to which
you would have been entitled hereunder had no subsequent employer provided cover
or benefits. You will use all reasonable endeavours to obtain equivalent cover
and benefits from a subsequent employer. Once equivalent cover and benefits have
been obtained from such subsequent employer, the Company’s obligations to
provide such cover and benefits for such one year period shall cease absolutely.
For the purpose of this Clause 11.3, the reference to children means children up
to the age of 21 or, if older and if they are in full time education, until they
finish their education. 

Termination
through loss of directorship

11.4 If you are removed
from the office of director of the Company, or the Company fails in general
meeting to re-elect you as a director of the Company (including if, under the
Articles of Association or other constitutional documents for the time being of
the Company, you are obliged to retire by rotation or otherwise), then the
Company may elect that the Employment shall terminate immediately without
prejudice to the right of either party to this Agreement to treat any act or
omission causing such removal from office as a breach of this Agreement. For the
avoidance of doubt, it is acknowledged that termination of the Employment
pursuant to this Clause 11.4 where removal from office has not taken place in
circumstances justifying dismissal for Cause under Clause 11.1 constitutes a
termination of the Employment without Cause for the purpose of Clause 11.3. 

Termination by
you without Good Reason

11.5 You may terminate the
Employment without Good Reason (as defined below) by giving the Company ninety
(90) days’ advance written notice. In such event, you will be entitled to
the same payments as described in Clause 11.1. 

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Termination by
you with Good Reason

11.6 You may terminate the
Employment by giving the Company thirty (30) days’ advance written notice,
such notice to be given within ninety (90) days after: 

	(a)		
in the case of a Good Reason event which is incurable, the date on which the
Good Reason event occurs (provided that such thirty (30) days’ notice is
not required for an event described in sub-Clause (iv) of the definition of Good
Reason below); and 

	(b)		
in the case of a Good Reason event which is curable but which is not cured
within thirty (30) days of you giving written notice to the Company specifying
the Good Reason event and requiring it to be cured, the date falling thirty (30)
days after the date of such notice to the Company. 

	

Upon such a termination of
Employment, you will be entitled to the same payments as in the case of a
termination of Employment by the Company without Cause (as described in Clause
11.3). 

“Good Reason”
shall mean, without your written consent, any of the following events: 

	(i)		
the assignment to you of any duties inconsistent in any respect with your
position (including status, offices, titles and reporting requirement),
authority, duties or responsibilities or any other action by the Company (or its
successors or assigns) which results in material diminution in such position,
authority, duties or responsibilities (including, for the avoidance of doubt,
your responsibilities as the Chief Executive Officer of a publicly listed
company), but excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by you; 

	(ii)		
any material breach of any material provision of this Agreement by the Company
(or its successors or assigns), including, without limitation, a reduction in
your Base Salary, reduction in your bonus opportunity as a percentage of salary
or the material alteration to your detriment of the performance criteria
pursuant to which such Bonus is calculated, a failure of the Company (or its
successors or assigns) to make the equity grants contemplated under Clause 6.4,
or the Company’s (or its successors’ or assigns’) failure to
provide in all material respects the indemnification in Clause 8 of Schedule 1; 

	(iii) 		any
required relocation of you outside London or New York City; and 

	

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	(iv)		
a Change of Control unless a third party acquiring control of more than 50% of
the voting rights of the Company for the purposes of the definition of Change of
Control in this sub-Clause (iv) has agreed to adopt the Reuter Trust, the Reuter
Trust Principles and the rights and duties of the Reuter Trustees as set out in
the Memorandum and Articles of Association of the Company and in the Memorandum
and Articles of Association of Reuters Founders Share Company Limited and to use
its best endeavours to procure that the Principles and such rights and duties
are observed and upheld within the Company and any holding company of the
Company and a Change of Control shall for the purpose of this Agreement occur
where more than 50% of the voting rights of the Company become controlled by any
third party (including persons acting in concert but excluding Reuters Founders
Share Company Limited) or the Company sells or otherwise disposes of all or
substantially all of its assets with the approval of the Company’s
shareholders, other than for the purposes of a reconstruction or reorganisation
in which (A) the ultimate ownership of the Company or substantially all its
assets is unaffected or (B) a new holding company for the Company is created,
where the new holding company has substantially the same shareholders and
proportionate shareholdings as those of the Company immediately prior to the
interposition of the new holding company. 

	

Cessation
Compensation

11.7 For the purpose of Clause 11.3
and 11.6: 

	(a)		
Cessation Compensation means: (i) if the Employment is
terminated after the Effective Date but on or before the second anniversary of
the Effective Date, the product of two and the Relevant Sum; or (ii) if the
Employment is terminated after the second anniversary of the Effective Date but
on or before the third anniversary of the Effective Date, the product of 1.67
and the Relevant Sum; or (iii) if the Employment is terminated after the
third anniversary of the Effective Date but on or before the fourth anniversary
of the Effective Date, the product of 1.33 and the Relevant Sum; or (iv) if
the Employment is terminated after the fourth anniversary of the Effective Date,
the Relevant Sum; 

	(b) 		Relevant
Sum means the sum of your Base Salary and Relevant Bonus; 

	(c)		
Relevant Bonus means H x (I% x Base Salary) where H is the
highest percentage of bonus which you have received in the three years prior to
the year in which the Employment terminates (including, if relevant, periods
prior to the Effective Date) and I is the maximum percentage of Base Salary
earnable as bonus in the year of termination. For example, if you are eligible
to a bonus of 125% of a Base Salary of £1,000,000 and in the last three
years you have received 100%, 90% and 50% of your bonus respectively, your
relevant bonus will be £1,250,000. 

	

Other than in respect of
your rights under Clause 11.12, you agree that any payment of Cessation
Compensation made to you pursuant to Clause 11.3 or 11.6 will be in full
and final settlement of any claim which you might otherwise have against the
Company and against any other Group Company for damages for wrongful dismissal
and the parties agree that the Cessation Compensation represents a genuine
pre-estimate of the loss which would otherwise have been suffered by you. 

     Page
11 

	

The payment to be made to
you pursuant to Clause 11.3 or 11.6 will be made in two stages. The total
amount, less a deduction of £60,000, will be paid within seven
(7) days of the termination of the Employment. The remaining balance of
£60,000 will be paid within four months of the termination of the
Employment, conditional upon you not having bought any claims before a court or
tribunal against the Company or any other Group Company or any of their
respective officers and employees in connection with the Employment or its
termination in or prior to that four month period. 

Mitigation

11.8 You shall not be
required to mitigate amounts payable under this Clause 11 by seeking other
employment or otherwise, and there shall be no offset against amounts due to you
under this Clause 11 on account of subsequent employment save as provided
herein. Additionally, amounts owed to you under this Clause 11 shall not be
offset by any claims the Company may have against you and, subject to Clause
6.5, the Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder, shall not be
affected by any other circumstances including, without limitation, any
counterclaim, recoupment, defence or other right which the Company may have
against you or others. 

Return of
documents

11.9 On termination of the
Employment for any reason or, at the request of the Company, when notice to
terminate the Employment is given, you must immediately deliver to the Company
(without keeping any copies): 

	(a) 		all
documents, papers and materials and any other property of the Company and of any other
Group Companies; and 

	(b) 		all
documents or other media on which confidential information about the Company and any
other Group Companies is recorded, 

	

in your possession or under your
control. 

Resignation as
a director

11.10 On termination of the
Employment for any reason, you must immediately, at the request of the Company,
resign your office as a director of the Company and of any other Group Company
without compensation for loss of office other than as provided in this
Agreement. 

Share schemes

11.11 It is acknowledged
that you may, during the Employment, be granted rights upon the terms and
subject to the conditions of the rules from time to time of the Reuters Group
PLC Long Term Incentive Plan or any other profit sharing, share incentive, share
option, bonus or phantom option scheme operated by the Company or any other
Group Company with respect to shares in the Company or any other Group Company.
Subject to Clause 11.12, if on termination of the Employment, whether lawfully
or in breach of contract you lose any of the rights or benefits under such
schemes (including rights or benefits which you would not have lost had the
Employment not been terminated) you shall not be entitled, by way of
compensation for loss of office or otherwise howsoever, to any compensation for
the loss of any rights under any such scheme. 

     Page
12 

	

11.12 Notwithstanding
Clause 11.11, if the Employment is terminated in any of the circumstances
described in Clause 11.2, 11.3 or 11.6 or by reason of your death or where
it is terminated pursuant to Clause 11.4 in circumstances where such termination
constitutes a termination of the Employment without Cause for the purpose of
Clause 11.3, the Company will procure that you shall retain all awards made
under the Company’s or any Group Company’s equity plans or programs,
including, without limitation, the awards under Clause 6.4 hereof (the
Equity Plans) granted to you (including without limitation
in the form of options shares or share rights) which have not vested or
crystallised at the date of termination and shall in respect of the subsequent
vesting or crystallisation of such awards (including through any extension of
the applicable vesting period) and their exercise or release be treated as
though you had continued in Employment. In addition, notwithstanding the terms
and conditions of the Equity Plans to the contrary, with respect to the
retention, vesting and/or crystallisation of such awards your personal conduct
following your termination of Employment will not in any way affect your right
to continue to retain, vest or crystallise with respect to such awards, provided
that the terms or conditions of the Equity Plans relating to the performance
conditions pursuant to which such awards vest and crystallise shall continue to
apply. Should it not be possible to treat you as if you are a continuing
employee in respect of the vesting, crystallisation, exercise or release of any
awards under the Equity Plans, the Company will procure that all your awards
vest (and/or crystallise, as the case may be) in full and become exercisable on
termination of Employment regardless of any conditions relating to status,
personal conduct or otherwise, and in the case of options shall remain
exercisable for at least 6 months following termination of employment. 

SUSPENSION

12.1 The Board may at any
time or from time to time suspend you from the performance of your duties and/or
exclude you from any of the premises of the Company or of any other Group
Company in circumstances in which the Board reasonably believes that you have
committed gross misconduct or are in material breach of a material provision of
this Agreement and in order that the circumstances giving rise to that belief
may be investigated. You shall be suspended for such period as the Board
considers reasonably necessary for it to undertake a proper investigation but in
any event for no longer than ninety (90) consecutive days. At the end of such
ninety (90) day period, the Company will procure that you are either reinstated
in your post as Chief Executive Officer or that your Employment is terminated.
The Company will give you a reason for suspending or excluding you. Your salary
and benefits will not cease to be payable by reason only of such suspension or
exclusion. 

12.2 During any period of
suspension or exclusion, you will not contact or deal with customers, suppliers
or employees of the Company or of any other Group Company or enter onto the
premises of the Company or of any Group Company without the prior written
consent of the Chairman of the Company. You will be entitled to terminate the
Employment without Good Reason pursuant to Clause 11.5 but without the
requirement to give the Company ninety (90) days’ advance written notice.
Any rights you might otherwise have to terminate this Agreement pursuant to
Clause 11.6 shall not be affected during any period of suspension or exclusion
(although you acknowledge that such suspension or exclusion shall in and of
itself not constitute Good Reason pursuant to Clause 11.6). 

     Page
13 

	

CONTINUING
OBLIGATIONS

Non-representation

13.1 You will not at any
time after the termination of the Employment directly or indirectly represent
yourself as being in any way connected with or interested in the business of the
Group (except, if it is the case, as a shareholder of the Company or as a
director of the Company). 

Non-solicitation
of employees

13.2 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company or
employ or engage any employee of the Company or of any other Group Company with
whom you had business dealings or who reported to you, directly or indirectly,
during the period of 12 months preceding the date of termination of the
Employment and who is or was employed or engaged by the Company or by any other
Group Company: 

	(a) 		as
a director or in a managerial or technical capacity; or 

	(b)		
who you know (or ought reasonably to know) could materially damage the interests
of the Company or any other Group Company if he became employed in any business
in competition with the business of the Company or of any other Group Company. 

	

Non-solicitation
of business

13.3 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company the
business of any firm, company or other person who, during the period of 12
months preceding the date of termination of the Employment, was a customer of
the Company or of any other Group Company with whom you had business dealings or
about whom you became informed or over whom you had influence in the course of
the Employment during that period, with a view to providing goods or services
which would compete with the business of the Company or of any other Group
Company carried on at the date of termination of the Employment and with which
you were materially involved during that period for the account or benefit of
any other business concern of which you are a sponsor or promoter and which is
in competition with the business of the Company or any Group Company. 

     Page
14 

	

Non-dealing

13.4 You must not for a
period of six months after the termination of the Employment deal with any
person, firm or company who during the period of 12 months preceding the date of
termination of the Employment was a customer or potential customer of the
Company or of any other Group Company and (in the case of a customer) to whom
you provided services on behalf of the Company or any other Group Company or (in
the case of a potential customer) with whom you had business dealings with a
view to obtaining business for the Company or any other Group Company and in
each case with whom you had business dealings or about whom you became informed
or over whom you had influence in the course of the Employment during that
period, with a view to providing goods or services which would compete with the
business of the Company or of any other Group Company carried on at the date of
termination of the Employment and with which you were materially involved during
that period for the account or benefit of any business concern referred to in
Clause 13.5 or for the account of any other business concern of which you are a
sponsor or promoter and which is in competition with the business of the Company
or any Group Company. 

Non-competition

13.5 You must not, for a
period of six months after the termination of the Employment, be engaged in or
concerned in any capacity in any business concern which is in competition with
the business of the Company or of any other Group Company. A list of such
business concerns as at the date of this Agreement is set out in Part 1
of Schedule 2 to this Agreement. Unless you have the prior approval of the
Chairman of the Company you may not, for a period of six months after the
termination of the Employment, be engaged in or concerned in any capacity in any
of the business concerns named in the lists set out in Parts 2 and 3 of Schedule
2 to this Agreement. The lists in Schedule 2 may be amended by the Board acting
reasonably (provided that the number of business concerns included in Schedule 2
at any one time shall not exceed 15) and each such amendment shall be notified
to you from time to time. This Clause shall not restrain you from being engaged
or concerned in any business concern in so far as your duties or work relate
solely to services or activities of a kind with which you were not concerned to
a material extent during the period of six months preceding the date of
termination of the Employment. 

Extension to
other persons

13.6 The obligations
imposed on you by this Clause 13 extend to you acting not only on your own
account but also on behalf of any other firm, company or other person and shall
apply whether you act directly or indirectly. 

Acknowledgement
of reasonableness

13.7 The restrictions
contained in this Clause 13 are considered by you and the Company to be
reasonable in all the circumstances. Each part of this Clause constitutes an
entirely separate and independent restriction and the duration, extent and
application of each of the restrictions are not greater than is necessary for
the protection of the commercial interests of the Group and their stable trained
workforce. 

     Page
15 

	

No disparaging
statements

13.8 Each party agrees (and
in the case of the Company, it shall use reasonable endeavours to cause its
executives, officers, employees, directors, agents and consultants) during, and
after termination of, your Employment not to make, publish or in any other way
communicate or cause to be made, published or issued or otherwise communicate to
any third party any disparaging or derogatory statements to any third party
concerning you or the Company or any Group Company or any of its or their
current executives, officers, employees, agents or consultants provided that
nothing in this Agreement will prevent you or the Company or any Group Company
from disclosing information as required by law or in order to take professional
advice or as ordered by a court of competent jurisdiction. 

GRIEVANCE
PROCEDURE

14. Without limiting your
rights to terminate the Employment with Good Reason pursuant to Clause 11.6 or
to enforce any of the terms of this Agreement in accordance with Clause 19
directly without regard to this Clause 14, if at any time you have a grievance
relating to the Employment, you may seek redress orally or in writing by, in the
first instance, referring the grievance to the Chairman of the Company. If the
grievance remains unresolved, you may appeal to the Board and the Board shall
deal with the matter by discussion and by majority decision of those present at
the relevant meeting of the Board. The Board’s decision shall be final and
binding with respect to the grievance procedure save that if you are not
satisfied with the decision of the Board, you may pursue an action in a manner
contemplated by Clause 19. 

WAIVER

15. Any delay or forbearance by the
Company or you in exercising any right of determination of this Agreement shall not
constitute a waiver of it. 

AMENDMENTS

16. No amendment or waiver of any of
the provisions of this Agreement shall be effective unless made in writing and signed by
you and a Director of the Company. 

NOTICES

17. Any notice to be given
under this Agreement to you may be served by being handed to you personally or
by being sent by recorded delivery first class post or by fax to you at an
address for service within the United Kingdom nominated by you for this purpose;
and any notice to be given to the Company may be served by being marked for the
attention of the Company Secretary and by being left at or by being sent by
recorded delivery first class post or by fax to its registered office for the
time being. Any notice served by post shall be deemed to have been served on the
second day (excluding Sundays and statutory holidays) next following the date of
posting and in proving such service it shall be sufficient proof that the
envelope containing the notice was, in your case, addressed to you at an address
for service within the United Kingdom nominated by you for these purposes and,
in the case of the Company, addressed to it marked for the attention of the
Company Secretary at its registered office for the time being, and in either
case posted as a prepaid letter by recorded delivery. Any notice served by fax
shall be deemed to have been served twelve hours after the time of despatch. 

     Page
16 

	

OTHER
AGREEMENTS

18. You acknowledge and
warrant that there are no agreements or arrangements whether written, oral or
implied between the Company or any other Group Company and you relating to your
employment or the Employment other than the Side Letter and those which are
expressly set out or referred to in this Agreement and that you are not entering
into this Agreement in reliance on any representation not expressly set out in
this Agreement. 

GOVERNING LAW

19. This Agreement will be
governed by and construed under English Law without regard to its conflicts of
laws provisions, and each of the parties hereby irrevocably agrees that the
Courts of England are to have jurisdiction to settle any disputes which may
arise out of or in connection with this Agreement. 

WITHHOLDING OR
DEDUCTIONS FOR TAX

20. All amounts payable to
you under this Agreement shall be subject to applicable withholding or
deductions of income, salary and such other withholdings or deductions which the
Company reasonably determines are required to be withheld or made in accordance
with applicable laws. 

AS WITNESS whereof
this Agreement has been signed by or on behalf of the parties to it on the day
and year first above written. 

     Page
17 

	

SCHEDULE 1

OTHER
BENEFITS

BONUS

1. You will be entitled to
participate in an annual bonus plan to be administered by the Remuneration
Committee. Unless otherwise agreed by the Remuneration Committee, the annual
bonus (the Bonus) payable under this plan will be an amount
of up to 150% of your Base Salary provided that in respect of 2001, 2002 and
2003 financial years, the Bonus will be an amount of up to 125% of your Base
Salary. The criteria relating to your performance and that of the Company which
are to be used to determine the amount of the bonus in any year will be laid
down by the Remuneration Committee at the commencement of each year and the
bonus for that year will be paid as soon as reasonably practicable after the
relevant results have been determined. The Remuneration Committee reserves the
right to amend the quantitative criteria annually, subject to your right to
terminate for Good Reason (as defined in your Service Agreement) in the event of
a material amendment to your detriment. On termination of the Employment during
a financial year, other than termination pursuant to Clause 11.1 or
Clause 11.5 or as otherwise provided under Clause 11.7, you shall be
entitled to a pro-rated amount of average Bonus, being such proportion of the
average bonus you have received in the three years prior to the year in which
the Employment terminates as is equivalent to the proportion of the financial
year during which the Employment has subsisted. 

HOLIDAYS

2.1 The Company’s
holiday year runs from 1 January to 31 December. In addition to the bank and
other public holidays, you will be entitled to 30 working days’ paid
holiday and three personal days in each holiday year. 

2.2 Your annual holiday may
be taken at such time or times as are reasonably appropriate having regard to
the business needs of the Company. 

2.3 Holidays not taken in
the year of entitlement will be lost unless carried forward with the agreement
of the Chairman of the Company. 

2.4 On termination of the
Employment, you will be entitled to pay in lieu of any unpaid holiday or be
required to pay the Company any salary received for holiday taken in excess of
your contractual entitlement. 

PENSION PLANS

3. During the Employment
Period, you will be provided with pension and retirement benefits appropriate to
your senior executive status in the Company and which are no less favourable
than those for the majority of executive Directors. For this purpose, you and
the Company shall work to provide such benefits in a manner which is tax
efficient to both parties. 

     Page
18 

	

LONG TERM
INCENTIVE PLAN

4. Subject to Clause 11.13
of the Service Agreement, you are entitled to be a member of the Reuters Group
PLC Long Term Incentive Plan (as notified to you from time to time) (or any plan
operated by the Company in succession to that plan) for so long as such plans
may be operated by the Company, and the Company shall pay to you benefits under
these plans, subject to the conditions of the Company’s policy on retention
of LTIP awards on early retirement (as notified to you from time to time). 

MEDICAL/DISABILITY
INSURANCE

5.1 You shall be entitled
to membership of the Company’s Medical, Dental and Eye Care plans, subject
to the terms of the plans and of any related policies of insurance as in force
from time to time. 

5.2 You shall be entitled
to membership of the Company’s disability insurance plans, subject to the
terms of those plans and of any related policies of insurance as in force from
time to time. 

LIFE ASSURANCE

6. You are entitled to
membership of the Company’s Basic Life Assurance, Accidental Death and
Dismemberment Insurance and Supplemental Life Assurance Plans, subject to the
terms of the plans and of any related policy of insurance as in force from time
to time. 

COMPANY CAR

7. The Company will provide
you with a monthly car allowance subject to the Company’s Policy on
Executive Director’s Cars which shall be payable in instalments with Base
Salary pursuant to Clause 6.2. 

DIRECTORS’
INDEMNITY AND INSURANCE

8.1 During the Employment Period and
thereafter, you shall have the benefits of: 

	(a)		
a complete indemnity for all and any liabilities incurred by you (including,
without limitation, all legal expenses reasonably incurred by you) in your
capacity as an officer, director or employee of the Company or any other Group
Company to the fullest extent provided in the constitutional documents of the
Company or any Group Company for all acts or omissions on your part whilst
acting as a director, officer or employee of the Company or such other Group
Company (to the extent such indemnity is permitted by the law of the country to
which the relevant Company or Group Company is subject); and 

	(b)		
(subject to their terms) any insurance policies which shall be maintained by the
Company in respect of liabilities incurred by Group Company directors officers
and employees in their capacity as such. 

	

     Page
19 

	

The obligations of the
Company under Clauses 8.1 and 8.2 shall survive termination of the Employment
and shall not be offset by any liquidated damages contemplated under this
Agreement. 

8.2 During the Employment
Period and thereafter, the Company shall procure that you have (to the extent
such indemnity is permitted by applicable law) a complete indemnity for all any
liabilities incurred by you (other than where such liability arises out of or
relates to the commission by you of a criminal offence or any wilful default or
gross negligence) in your capacity as an officer or director of any company or
similar entity that is not a member of the Group, where such directorship or
office is held by you at the request of the Company. 

8.3 You are entitled to
take independent professional advice, at the expense of the Company, where such
advice is reasonably required for the furtherance of your duties as a director
of the Company. No prior approval is required to obtain advice costing up to
£5,000. Before seeking advice that is likely to cost more than
£5,000 you must obtain the written consent of at least one non-executive
director and send a copy of such consent to the Company Secretary. The
non-executive director shall have power to set a reasonable limit on the cost
you may incur on obtaining independent advice at the Company’s expense
without further reference to him. 

OTHER BENEFITS

9.1 During the Employment Period the
Company will meet or reimburse you for: 

	(a)		
a relocation bonus of US$750,000, less any portion of such amount previously
paid to you by the Company or any other member of the Group (and further subject
to deductions for income tax); 

	(b)		
an annual expatriate bonus in such amount as is specified in the annual
statement of remuneration and benefits referred to in Clause 6.1 of the
Agreement (less deductions for income tax); 

	(c) 		relocation
costs which you reasonably incur in relocating from New York to London; 

	(d) 		any
reasonable costs incurred by you in seeking legal and financial advice in relation to
this Agreement; and 

	(e)		
the cost of business class travel from New York to London (and return) five
times a year for your spouse, children and nanny. 

	9.2		
The Company will provide you with a licence to occupy property at 32 Hyde Park
Gate, London SW7, or similar accommodation acceptable to you, free of charge.
The licence shall be revocable by the Company at any time and, in any event, no
later than 31 March 2004. However, if the licence is revoked you will, in
respect of the period between the date of revocation and 31 March 2004 be
paid a housing allowance at an annual rate of £381,316. After
31 March 2004, the Company will, at its election, either continue to
provide you with a licence to occupy suitable accommodation acceptable to you,
or will pay you a housing allowance of US$447,733 per annum (such amount to be
converted into sterling at the prevailing rate on the Effective Date) in respect
of your accommodation costs. 

	

     Page
20 

	

	9.3		
You shall have such other benefits as may be made available to you by the
Company from time to time, including but not limited to the use of Reuters
products, mobile telephone and other equipment and membership of professional
bodies. 

	9.4		
During the Employment Period, the Company shall reimburse your reasonable
personal financial and tax planning and preparation and filing expenses. 

	9.5		
Following the termination of the Employment for any reason, the Company shall
reimburse you (or your estate or beneficiaries) for all reasonable expenses
incurred by you (or your family in the event of your death or incapacity) to
relocate from your new location to anywhere in the United States. 

	

     Page
21 

	

SCHEDULE 2

COMPETING
BUSINESS CONCERNS
AS AT THE DATE OF THIS AGREEMENT

Part 1

Competing Business
Concerns as at the date of this Agreement 

	 	Bloomberg
L.P.

	 	Bridge
Information Systems (or any successor in business or assign to the European business of
Bridge Information Systems)

	 	Pearson
PLC

	 	Quick
Corporation of Japan

	 	AOL
TimeWarner

	 	Telekurs
A.G.

	 	SunGard

	 	The
Electronic Broking Service

	

Part 2

Companies with
Divisions which compete with Reuters

	 	The
Thomson Corporation

	 	The
McGraw Hill Companies

	 	The
Dun & Bradstreet Corporation

	 	Reed
Elsevier P.L.C./Elsevier N.V.

	

Part 3

Companies
with which Reuters has Strategic Relationships

	 	Multex.com,
Inc.

	 	Yahoo!
Inc.

	

     Page
22 

	

SCHEDULE 3

PERMITTED SHAREHOLDINGSAS

AT THE DATE OF THIS AGREEMENT

	 	SDK
Investments, LLC

	 	Giant
Bear Inc.

	

     Page
23 

	

	SIGNED by
for and on behalf of
REUTERS GROUP PLC
in the presence of:-	)
 )  Sir Christopher Hogg
)
)

	SIGNED as
a DEED
and DELIVERED by
THOMAS HENRY GLOCER
in the presence of :-	)
)
)
)

	

     Page
24 

	

________________________2001

REUTERS
GROUP PLC

PHILIP GREEN

SERVICE AGREEMENT

	

TABLE OF
CONTENTS

			Page
		 	 	 		 
	1.	 	Definitions	 	1	 
		 		 		 
	2.	 	Duration of employment	 	1	 
		 		 		 
	3.	 	Role, Powers and Duties	 	1	 
		 		 		 
	4.	 	Normal Place of Work	 	2	 
		 		 		 
	5.	 	Hours of Work	 	2	 
		 		 		 
	6.	 	Salary and Benefits	 	2	 
		 		 		 
	7.	 	Expenses	 	3	 
		 		 		 
	8.	 	Other Interests	 	3	 
		 		 		 
	9.	 	Inventions and Improvements	 	4	 
		 		 		 
	10.	 	Confidentiality	 	5	 
		 		 		 
	11.	 	Statutory Provisions	 	6	 
		 		 		 
	12.	 	Termination	 	6	 
		 		 		 
	13.	 	Garden Leave and Suspension	 	9	 
		 		 		 
	14.	 	Continuing Obligations	 	10	 
		 		 		 
	15.	 	Waiver	 	12	 
		 		 		 
	16.	 	Amendments	 	12	 
		 		 		 
	17.	 	Notices	 	12	 
		 		 		 
	18.	 	Other Agreements	 	13	 
		 		 		 
	19.	 	Governing Law	 	13	 
		 		 		 
	20.	 	Withholding Taxes	 	13	 
		 		 		 

			
	SCHEDULE 1:	 	Other Benefits	 	14	 
		 		 		 
	SCHEDULE 2:	 	Additional Statutory Provisions	 	17	 
		 		 		 
	SCHEDULE 3:	 	Competing Business Concerns	 	19	 

	

THIS AGREEMENT is made on 20th June
2001 

BETWEEN

(1) REUTERS GROUP PLC registered in
England with No. 3296375 whose registered office is at 85 Fleet Street, London, EC4P 4AJ
(the Company); and 

(2) PHILIP GREEN of
Flat 20, Lewcos House, 57-63 Regency Street, London SW1P 4AF
(you). 

IT IS AGREED as follows: 

DEFINITIONS

1. In this Agreement the following
expressions shall have the following meanings: 

Board
means the board of directors of Reuters Group PLC or a duly constituted
committee of the board of directors; 

Employment means your employment in
accordance with the terms and conditions of this Agreement; 

Group
means the Company, any holding company of the Company and any
subsidiary of the Company or of any such holding company (with holding company
and subsidiary having the meanings given to them by section 736 of the
Companies Act 1985). Group Company and Group
Companies shall be construed accordingly; and 

Remuneration
Committee means the remuneration committee of the Board. 

DURATION OF
EMPLOYMENT

2. The Employment will
begin on the date of this Agreement and will continue until terminated in
accordance with Clause 12 below. 

ROLE, POWERS
AND DUTIES

3.1 You will serve the
Company as Chief Operating Officer, or in such other capacity of a like status
as the Company may require. 

3.2 Subject to Clause 4,
you will exercise such powers and perform such duties in relation to the
business of the Company and the Group, being duties which are appropriate to
your senior status, as may be assigned to you by the Chief Executive of the
Company after taking into account the opinion of the Board. 

3.3 During the Employment you will: 

	(a) 		devote
substantially the whole of your working time, attention and abilities to carrying out
those duties in a proper, loyal and efficient manner; 

	

	(b) 		use
all reasonable endeavours to promote the interests of the Company and any other Group
Company which you may be required to serve under the terms of this Agreement; 

	(c)		
have due regard to the Reuters Trust Principles and to the rights and duties of
the Reuters Trustees as set out in the Memorandum and Articles of Association of
the Company and the Memorandum and Articles of Association of Reuters Founders
Share Company Limited insofar as, by the proper exercise of your powers (and in
accordance with your other duties) as director of the Company, the Reuters Trust
Principles are capable of being observed by you; 

	(d)		
have due regard to the provisions of the Reuters Code of Conduct (as notified to
you from time to time) and, so far as reasonably practicable in the performance
of your duties, observe all material provisions of that Code; 

	(e) 		comply
with the Reuters Share Dealings Code (as notified to you from time to time); and 

	(f) 		have
due regard to the provisions of all other policies which are applied to you by the
Company, as notified to you from time to time. 

	

3.4 You are entitled to
take independent professional advice, at the expense of the Company, where such
advice is reasonably required for the furtherance of your duties as a director
of the Company and provided that before taking such advice you obtain the
written consent of one other director and send a copy of such consent to the
Company Secretary and that the Company’s expenditure on such advice does
not exceed £50,000 per annum. 

NORMAL PLACE
OF WORK

4. Your normal place of
work is at the Company’s head office. You may be required, in the
performance of your duties, to travel in the United Kingdom and overseas.
However, having given you reasonable notice, the Company may reasonably require
you to perform your duties at the offices of another Group Company in a major
financial centre outside the United Kingdom, such as New York, in which case you
shall be offered expatriate benefits appropriate to your senior status. 

HOURS OF WORK

5. You will work the
Company’s normal working hours together with such additional hours as may
reasonably be required for the proper performance of your duties. 

SALARY AND
BENEFITS

6.1 You will be paid a
salary at such rate as is set out in an annual letter to you from the Company
and as confirmed in your annual statement of remuneration and benefits. 

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6.2 Your salary will accrue
from day to day and be payable in arrears by equal monthly instalments on or
about the fifteenth day of each month. 

6.3 You are not entitled to
any other salary or fees as director or employee of the Company or any other
Group Company and you must, as the Company directs, either waive your rights to
any such salary or fees or account for the same to the Company (failing which it
will be deducted from your salary). 

6.4 Your salary and
benefits will be reviewed annually by the Remuneration Committee. Any change in
the level of your salary and benefits as a result of the review (which will not
be downwards) will be effective from 1 January of the year following the review
(unless you and the Chairman of the Remuneration Committee agree otherwise). 

6.5 In addition to the
above, you will be entitled to receive those benefits set out in Schedule 1 to
this Agreement. 

6.6 During or after the
termination of the Employment for whatever reason, the Company may deduct from
your pay any sums outstanding to the Company or to any other Group Company from
you including, without limitation, any advance of pay or loans or floats for
expenses. 

EXPENSES

7. Subject to the
Company’s policies on executive directors’ expenses and executive
directors’ spouse expenses (as notified to you from time to time), the
Company will reimburse to you all reasonable travelling, hotel and other
out-of-pocket expenses (including first class travel expenses) properly incurred
by you and your spouse in the execution of the duties of the Employment against
production of valid receipts and properly completed expense reports. 

OTHER INTERESTS

8.1 During the Employment
you will be entitled to accept appointments as a non-executive director of
companies other than a Group Company subject to: 

	(a) 		the
prior written consent of the Chief Executive of the Company (such consent to be confirmed
by the Board); and 

	(b) 		the
Company's policy on non-executive directorships (as notified to you from time to time). 

	

You may retain any fees
received as a non-executive director provided they are paid in cash rather than
in stock, other securities or options. Days of service as a non-executive
director will not be deducted from your holiday entitlement provided that you
shall not spend more than ten working days in aggregate in any year in such
service. At any time during the Employment the Company may, with reasonable
cause, require you to resign any non-executive directorship held. Reasonable
cause for this purpose shall include but not be limited to a conflict of
interest and such other reason or reasons as may be specified in the Reuters
Code of Conduct (as notified to you from time to time). 

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8.2 During the Employment
you will not be directly or indirectly concerned in any business, trade,
profession or other occupation (whether as an employee, consultant, agent,
director or otherwise) of a similar nature to or competitive with that carried
on by the Company or any Group Companies except: 

	(a) 		as
a representative or officer of a Group Company; 

	(b) 		as
a non-executive director under Clause 8.1; 

	(c)		
by virtue of your being interested in securities not representing more than one
per cent of a company’s issued securities of any class which are either (i)
listed on a recognised stock exchange or dealt on an unlisted securities market
or an alternative investment market or authorised for quotation in a recognised
inter-dealer quotation system or (ii) of a private company whose shares the
Chief Executive of the Company has authorised you to hold; or 

	(d) 		with
the prior written consent of the Board. 

	

8.3 You may serve on the
board of religious, charitable or public service organisations or otherwise be
engaged in the activities of such organisations provided so serving or being so
engaged does not prejudice your ability to fulfil your duties under this
Agreement. 

INVENTIONS AND
IMPROVEMENTS

9.1 It will be part of your normal
duties at all times: 

	(a)		
to consider in what manner and by what new methods or devices the products,
services, processes, equipment or systems of the Company and other Group
Companies with which you are concerned or for which you are responsible might be
improved; and 

	(b)		
promptly to give to the Company Secretary of the Company full details of any
invention or improvement which you may from time to time make or discover in the
course of your duties. 

	

Subject to the Patents Act
1977, the Company will be entitled free of charge to the sole ownership of any
such invention or improvement and to the exclusive use of it. 

9.2 You assign to the
Company (or to such other Group Company as the Company may direct) all
copyrights, designs and other proprietary rights, if any, which may be so
assigned in respect of all works and designs created by you or relating to your
responsibilities during the Employment for the full term of those rights to the
intent that those rights will immediately upon the completion of the relevant
work vest with the Company (or with such other Group Company as the Company may
direct). 

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9.3 At the request and cost
of the Company, you will do all such acts and things as may in the opinion of
the Board be necessary or conducive to vest such rights in the Company (or in
such other Group Company as it may direct). You irrevocably authorise the
Company for the purposes of this Clause to make use of your name and to sign and
to execute any documents or do any thing on your behalf. 

9.4 You will not do anything
knowingly to imperil the validity of any patent or protection or any application for a
patent or protection. 

9.5 You will not either
during or after the termination of the Employment exploit or assist others to
exploit any invention or improvement which you may from time to time make or
discover in the course of your duties or (unless it shall have become public
knowledge) make public or disclose any such invention or improvement or give any
information in respect of it except to the Company or as the Company may direct. 

9.6 You irrevocably waive
in favour of the Company (and in favour of such other Group Company as the
Company may direct), its licensees and successors-in-title any and all moral
rights in any works (existing or future) which are the subject of copyright made
by you in the course of the Employment. 

CONFIDENTIALITY

10.1 During and after the
termination of the Employment you will at all times keep confidential all
private information about the Company and other Group Companies including
technical and financial information which you may have acquired while in the
employment of the Company or of any other Group Company. You will not use such
information for your own benefit or for the benefit of any business not within
the Group. You will keep such information confidential to yourself, to other
members of the Board and to anybody who needs such information in order to
properly discharge his duties to the Company or any Group Company. Such
information includes (without limitation) the following: 

	(a)		
the business methods and information of the Company and any other Group
Companies (including, without limitation, prices charged, discounts given to
customers or obtained from suppliers, product development, marketing and
advertising programmes, costing, budgets, turnover, sales targets and other
financial information); 

	(b) 		lists
and particulars of the suppliers and customers of the Company or of any other Group
Companies and the individual contacts at such suppliers and customers; 

	(c) 		details
and terms of the Agreements with suppliers and customers of the Company or of any other
Group Companies; 

	(d) 		secret
development manufacturing or production processes and know-how employed by the Company or
any other Group Companies or their respective suppliers; and 

	

     Page
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	(e)		
confidential details as to the design of the products and inventions or
processes relating to the provision of services or developments relating to
future products and services of the Company or of any other Group Companies or
those of their respective suppliers. 

	

10.2 These restrictions
shall not apply to any disclosure or use authorised by the Board or required by
law or by the requirements of any regulatory or other authority to which the
Company or any other Group Company is subject. 

10.3 These restrictions
shall not apply to information which is already in the public domain other than
in cases where such information has become public as a result of a breach by you
of these restrictions. 

10.4 These restrictions
shall not restrict you from using your own personal skill in any business in
which you may lawfully be engaged after termination of the Employment. 

STATUTORY
PROVISIONS

11. Additional provisions, details
of which the Company is required by statute to provide you, are set out in Schedule 2 to
this Agreement. 

TERMINATION

Summary
termination

12.1 The Company may
terminate the Employment by immediate notice in writing and without payment of
any kind other than salary and bonus accrued at the date of termination: 

	(a) 		if
in the reasonable opinion of the Board you are guilty of any: 

			(i) 		serious
misconduct;

			(ii) 		persistent
misconduct continuing after demand for cessation of such misconduct is delivered in
writing by the Board or by the Company Secretary on instruction from the Board; or

	(b) 		if
you commit any material breach of any material provision of this Agreement; 

	(c) 		if
you neglect or refuse to carry out any material part of your duties (other than for a
reason mentioned in Clause 12.2); 

	(d) 		if
you engage in any conduct which brings or is likely to bring the Company or any other
Group Companies, in the reasonable opinion of the Board, into disrepute; 

	(e)		
if you become bankrupt or enter into a composition with your creditors or apply
for a receiving order or have a receiving order made against you; 

	

     Page
6 

	

	(f) 		if
you become prohibited by law from being a director; or 

	(g) 		if
you terminate your directorship of the Company without the consent of the Board. 

	

Termination by
the Company through illness

12.2 The Company may
terminate the Employment if you are prevented by illness (including mental
illness) or injury from attending to your duties for more than 365 days in
aggregate in any one period of 24 consecutive calendar months. The Company will
not terminate the Employment pursuant to this Clause 12.2 if, as a result,
you would or may forfeit any entitlement to benefits under the permanent health
insurance scheme referred to in Schedule 1 unless it has used all reasonable
endeavours to try to procure the continuation of cover under that scheme. 

Termination
through loss of directorship

12.3 If you are removed
from the office of director of the Company, or the Company fails in
general meeting to re-elect you as a director of the Company (if, under the
Articles of Association or other constitutional documents for the time being of
the Company as the case may be, you are obliged to retire by rotation or
otherwise), then the Company may elect that the Employment shall terminate
immediately without prejudice to the right of either party to this Agreement to
treat any act or omission causing such removal from office as a breach of this
Agreement. 

Termination on
change of control

12.4 Notwithstanding the
provisions of Clause 12.5, you may terminate the Employment by giving the
Company one month’s notice in writing, such notice to be given within three
months after a Change of Control unless a third party acquiring control of more
than 50% of the voting rights of the Company has agreed to adopt the Reuters
Trust Principles and the rights and duties of the Reuters Trustees as set out in
the Memorandum and Articles of Association of the Company and in the Memorandum
and Articles of Association of Reuters Founders Share Company Limited and to use
its best endeavours to procure that the Principles and such rights and duties
are observed and upheld within the Company and any holding company of the
Company. A Change of Control shall for the purpose of this Agreement occur where
more than 50% of the voting rights of the Company become controlled by any third
party (including persons acting in concert but excluding Reuters Founders Share
Company Limited) or the Company sells or otherwise disposes of all or
substantially all of its assets with the approval of the Company’s
shareholders, other than for the purposes of a reconstruction or reorganisation
in which (A) the ultimate ownership of the Company or substantially all its
assets is unaffected or (B) a new holding company for the Company is created,
where the new holding company has substantially the same shareholders and
proportionate shareholdings as those of the Company immediately prior to the
interposition of the new holding company. 

     Page
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Termination in
other circumstances

12.5 Subject to earlier termination
in accordance with the provisions of this Clause, the Employment will continue until
terminated: 

	(a) 		by
the Company giving you 12 months' written notice; or 

	(b) 		by
you giving the Company 12 months' written notice. 

	

The Company may, in its sole
discretion, elect to terminate the Employment without giving you notice or the
full period of notice required by 12.5 (a) in which event you will be entitled
to receive a payment calculated in accordance with Clause 12.6. 

Liquidated
damages

12.6 This Clause applies if: 

	(a)		
the Employment is terminated by the Company otherwise than a termination (i) in
accordance with Clause 12.1 or (ii) where removal from office takes place in
circumstances justifying summary termination under Clause 12.1, in accordance
with Clause 12.3 or (iii) in accordance with Clause 12.5 unless the final
sentence of Clause 12.5 applies in which case this Clause will apply; 

	(b) 		you
are constructively dismissed which for these purposes shall include (without limitation): 

			(i) 		the
assignment to you of any duties inconsistent in any respect with your position (including
status, offices, titles and reporting requirement), authority, duties or
responsibilities; or

			(ii) 		any
other action by the Company which results in a diminution in such position, authority,
duties or responsibilities, but excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by you; or

	(c) 		you
terminate the Employment under Clause 12.4. 

	

Where this Clause applies,
the Company will (subject to the remainder of this Clause) pay to you by way of
liquidated damages an amount equal to the aggregate of : 

			(i) 		your
annual salary immediately prior to the date of termination of the Employment;

			(ii) 		the
amount of pension contributions made by the Company on your behalf or to you in the last
financial year of the Company preceding the date of termination; and

			(iii)		the
average of the last three annual bonuses earned by you pursuant to paragraph 1 of
Schedule 1 to this Agreement in the last three complete financial years of the Company
preceding the date of termination. 

	

     Page
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In relation to (iii) above,
where there have been fewer than three complete financial years of the Company
during the Employment, the averaging shall be by reference to the number of
complete financial years which there have been during the Employment. 

In the event that the
Company requires you to work only part of the notice period required by Clause
12.5 (a), the liquidated damages payment under this Clause 12.6 will be reduced
by an amount equal to the salary, pension contributions and (if applicable)
bonus paid to you or on your behalf in respect of the period of notice worked. 

In the event that the
Employment is terminated in accordance with Clause 12.2, liquidated damages
payment under this Clause 12.6 will be reduced by an amount equal to the amount
of any benefit payable under the permanent health insurance scheme referred to
in Schedule 1 for the period of 12 months following the date of termination. 

The payment will be
conditional on you not bringing any claims before a court or tribunal relating
to the Employment and/or its termination. The payment will be made in two
stages. The total amount, less a deduction of £60,000, will be paid
within 14 days of the end of the Employment and the remaining balance of
£60,000 will be paid within four months of the end of the Employment, in
each case less any necessary withholdings. You agree to accept the same in full
and final settlement of all and any claims or rights of action that you have or
may have against the Company and against any other Group Company and against
their respective officers and employees in connection with the Employment or its
termination. 

Return of
documents

12.7 On termination of the
Employment for any reason or, at the request of the Company, when notice to
terminate the Employment is given, you must immediately deliver to the Company
(without keeping any copies): 

	(a) 		all
documents, papers and materials and any other property of the Company and of any other
Group Companies; and 

	(b) 		all
documents or other media on which confidential information about the Company and any
other Group Companies is recorded, 

	

in your possession or under your
control. 

Resignation as
a director

12.8 On termination of the
Employment for any reason, you must immediately, at the request of the Company
resign your office as a director of the Company and of any other Group Company
without compensation for loss of office but without prejudice to any rights
which you may have to treat such request as a breach of this Agreement. 

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Share schemes

12.9 It is acknowledged
that you may, during the Employment, be granted rights upon the terms and
subject to the conditions of the rules from time to time of the Reuters Group
PLC Long Term Incentive Plan or any other profit sharing, share incentive, share
option, bonus or phantom option scheme operated by the Company or any other
Group Company with respect to shares in the Company or any other Group Company.
If, on termination of the Employment, whether lawfully or in breach of contract
you lose any of the rights or benefits under such schemes (including rights or
benefits which you would not have lost had the Employment not been terminated)
you shall not be entitled, by way of compensation for loss of office or
otherwise howsoever, to any compensation for the loss of any rights under any
such scheme. 

GARDEN LEAVE
AND SUSPENSION

13.1 The Company may at any
time or from time to time suspend you from the performance of your duties and/or
exclude you from any of the premises of the Company or of any other Group
Company: 

	(a) 		during
any period of notice or any part of a period of notice as specified in Clauses 12.4 or
12.5; or 

	(b)		
in circumstances in which the Company reasonably believes that you are guilty of
misconduct or are in breach of this Agreement and in order that the
circumstances giving rise to that belief may be investigated. 

	

13.2 The Company is not
required to give any reason for suspending or excluding you. Your salary and
benefits will not cease to be payable by reason only of such suspension or
exclusion. 

13.3 During any period of
suspension or exclusion, you will not contact or deal with customers, suppliers
or employees of the Company or of any other Group Company or enter onto the
premises of the Company or of any Group Company without the prior written
consent of the Chief Executive of the Company. 

CONTINUING
OBLIGATIONS

Non-representation

14.1 You will not at any
time after the termination of the Employment directly or indirectly represent
yourself as being in any way connected with or interested in the business of the
Group (except, if it is the case, as a shareholder of the Company or as a
director of the Company). 

Non-solicitation
of employees

14.2 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company or
employ or engage any employee of the Company or of any other Group Company with
whom you had business dealings or who reported to you, directly or indirectly,
during the period of 12 months preceding the date of termination of the
Employment and who is or was employed or engaged by the Company or by any other
Group Company: 

     Page
10 

	

	(a) 		as
a director or in a managerial or technical capacity; or 

	(b)		
you know (or ought reasonably to know) could materially damage the interests of
the Company or any other Group Company if he became employed in any business in
competition with the business of the Company or of any other Group Company. 

	

Non-solicitation
of business

14.3 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company the
business or custom of any firm, company or other person who, during the period
of 12 months preceding the date of termination of the Employment, was a customer
of the Company or of any other Group Company with whom you had business dealings
or about whom you became informed or over whom you had influence in the course
of the Employment during that period, with a view to providing goods or services
which would compete with the business of the Company or of any other Group
Company carried on at the date of termination of the Employment and with which
you were materially involved during that period. 

Non-dealing

14.4 You must not for a
period of six months after the termination of the Employment deal with any
person, firm or company who during the period of 12 months preceding the date of
termination of the Employment was a customer or potential customer of the
Company or of any other Group Company and (in the case of a customer) to whom
you provided services on behalf of the Company or any other Group Company or (in
the case of a potential customer) with whom you had business dealings with a
view to obtaining business for the Company or any other Group Company and in
each case with whom you had business dealings or about whom you became informed
or over whom you had influence in the course of the Employment during that
period, with a view to providing goods or services which would compete with the
business of the Company or of any other Group Company carried on at the date of
termination of the Employment and with which you were materially involved during
that period. 

Non-competition

14.5 You must not, for a period of
six months after the termination of the Employment, be engaged in or concerned in any
capacity in any business concern which is in competition with the business of the Company
or of any other Group Company. A list of such business concerns as at the dateof
this Agreement is set out in Part 1 of Schedule 3 to this Agreement. Unless you have the
prior approval of the Chairman and the Chief Executive of the Company you may not, for a
period of six months after the termination of the Employment, be engaged in or concerned
in any capacity in any of the business concerns named in the lists set out in Parts 2 and
3 of  

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Schedule 3 of this Agreement. The
lists in Schedule 3 may be amended by the Board acting reasonably (provided that the
number of business concerns included in Schedule 3 at any one time shall not exceed 15)
and each such amendment shall be notified to you from time to time. This Clause shall not
restrain you from being engaged or concerned in any business concern in so far as your
duties or work relate solely to services or activities of a kind with which you were not
concerned to a material extent during the period of six months preceding the date of
termination of the Employment.  

Extension to
other persons

14.6 The obligations
imposed on you by this Clause 14 extend to you acting not only on your own
account but also on behalf of any other firm, company or other person and shall
apply whether you act directly or indirectly. 

Acknowledgement
of reasonableness

14.7 The restrictions
contained in this Clause 14 are considered by you and the Company to be
reasonable in all the circumstances. Each part of this Clause constitutes an
entirely separate and independent restriction and the duration, extent and
application of each of the restrictions are not greater than is necessary for
the protection of the commercial interests of the Group and their stable trained
workforce. 

No disparaging
statements

14.8 Each party agrees
during, and after termination of, the Employment not to make, publish or cause
to be made, published or issued or otherwise communicate to any third party any
disparaging or derogatory statements to any third party concerning you or the
Company or any Group Company or any of its or their current executives,
officers, employees, agents or consultants, provided that nothing in this
Agreement will prevent you or the Company from disclosing information as
required by law or in order to take professional advice or as ordered by a court
of competent jurisdiction. 

WAIVER

15. Any delay or forbearance by the
Company in exercising any right of determination of this Agreement shall not constitute a
waiver of it. 

AMENDMENTS

16. No amendment or waiver
of any of the provisions of this Agreement shall be effective unless made in
writing and signed by you and a director or the Company Secretary of the
Company. 

NOTICES

17. Any notice required to be served
under this Agreement may be given either personally, by fax or by registered post: 

	(a) 		to
the Company at its registered office for the time being; or 

	

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	(b) 		to
you at the address at the start of this Agreement or your last known address. 

	

Any notice to be given
under this Agreement to you may be served by being handed to you personally or
by being sent by recorded delivery first class post or by fax to you at your
usual or last known address; and any notice to be given to the Company may be
served by being marked for the attention of the Company Secretary and by being
left at or by being sent by recorded delivery first class post or by fax to its
registered office for the time being. Any notice served by post shall be deemed
to have been served on the second day (excluding Sundays and statutory holidays)
next following the date of posting and in proving such service it shall be
sufficient proof that the envelope containing the notice was, in your case,
addressed to you at your usual or last known address and, in the case of the
Company, addressed to it marked for the attention of the Company Secretary at
its registered office for the time being, and in either case posted as a prepaid
letter by recorded delivery. Any notice served by fax shall be deemed to have
been served twelve hours after the time of despatch. 

OTHER
AGREEMENTS

18. You acknowledge and
warrant that there are no Agreements or arrangements whether written, oral or
implied between the Company or any other Group Company and you relating to your
employment or the Employment other than those which are expressly set out in
this Agreement and that you are not entering into this Agreement in reliance on
any representation not expressly set out in this Agreement. 

GOVERNING LAW

19. This Agreement will be
governed by and construed under English law without regard to its conflicts of
laws provisions, and each of the parties hereby irrevocably agrees for the
exclusive benefit of the Company that the Courts of England are to have
jurisdiction to settle any disputes which may arise out of or in connection with
this Agreement. 

WITHHOLDING TAX

20. All amounts payable to
you under this Agreement shall be subject to applicable withholding of income,
salary and such other withholdings that the Company determines are required to
be withheld in accordance with applicable laws. 

AS WITNESS whereof
this Agreement has been signed by or on behalf of the parties to it on the day
and year first above written. 

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SCHEDULE 1

OTHER
BENEFITS

BONUS

1. You will be entitled to
participate in an annual bonus plan to be administered by the Remuneration
Committee. Unless otherwise agreed by the Remuneration Committee, the maximum
annual bonus payable under this plan will be an amount up to 70% of your base
salary (from 1 July 2001, 100% of base salary). The criteria relating to your
performance and that of the Company which are to be used to determine the amount
of the bonus in any year will be laid down by the Remuneration Committee at the
commencement of each year and the bonus for that year will be paid as soon as
reasonably practicable after the relevant results have been determined. The
Remuneration Committee reserves the right to amend the quantitative criteria
annually and/or to discontinue the bonus arrangement. On termination of the
Employment, other than termination pursuant to Clause 12.1 or termination in
respect of which Clause 12.6 applies, you shall be entitled to a pro-rated
amount of bonus, being such proportion of average bonus (calculated according to
Clause 12.6(iii)) as is the same as the proportion of the last financial year
during which the Employment has subsisted. 

SHARE OPTION
PLANS

2.1 You will be eligible
for membership of the Company’s Save As You Earn Share Option Scheme and of
any other all employee share option plan operated by the Company and approved by
the Company’s shareholders. Participation in such scheme and plans is, save
as otherwise stipulated in their rules, at the sole discretion of the Board or
the Remuneration Committee. 

2.2 If you are relocated to
a country outside the United Kingdom, you are entitled to participate in any
equivalent scheme or plan operated by a Group Company in that country. 

HOLIDAYS

3.1 The Company’s
holiday year runs from 1 January to 31 December. In addition to the bank and
other public holidays, you will be entitled to 26 working days’ paid
holiday in each holiday year. Thereafter, you will receive one extra day for
each additional year of service, subject to a maximum entitlement of 30 working
days’ paid holiday. In the first year of the Employment, the annual
entitlement will be pro rata based on the holiday year. 

3.2 Your annual holiday may
be taken at such time or times as are reasonably appropriate having regard to
the business needs of the Company. 

3.3 Holidays not taken in
the year of entitlement will be lost unless carried forward with the agreement
of the Chief Executive of the Company. 

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3.4 On termination of the
Employment, you will be entitled to pay in lieu of any unpaid holiday or be
required to pay the Company any salary received for holiday taken in excess of
your contractual entitlement. You may be required to take any untaken holiday
during your notice period. 

PENSION SCHEMES

4.1 The Company will pay an
amount equal to 30% of your base salary (or such other amount as is set out in
your annual statement of remuneration and benefits) in equal monthly instalments
to provide and/or in substitution for pension benefits. 

4.2 All or part of this
amount may be paid by the Company to a tax approved Company pension scheme or to
such a personal pension plan as the Company may agree with you, subject to any
limits imposed by the Inland Revenue from time to time. Any part of this amount
not paid in this way will be paid to you as a cash allowance as part of your
monthly remuneration (but will not be treated as part of your basic annual
salary) and will be subject to deduction of income tax and National Insurance
Contributions and any other statutory deductions which may be required from time
to time. 

4.3 You will not become a
member of the Reuters UK Retirement Plan unless the Company agrees special terms
of admission and membership with you and the Trustees of the Plan. 

4.4 A contracting out certificate is
not in force in respect of the Employment. 

LONG TERM
INCENTIVE PLAN

5. You are entitled to be a
member of the Reuters Group PLC Long Term Incentive Plan or any plan operated by
the Company in succession to that plan (as notified to you from time to time)
for so long as the Plan or such plan may be operated by the Company, and the
Company shall pay to you benefits under the Plan or such plan, subject to the
conditions of the Company’s policy on retention of LTIP awards on early
retirement (as notified to you from time to time). 

DISABILITY
INSURANCE

6. You shall be entitled to
membership of, and the Company shall pay to you benefits under, the
Company’s disability insurance scheme, subject to the terms of that scheme
and of any related policy of insurance as in force from time to time. 

LIFE ASSURANCE
AND PERMANENT HEALTH SCHEME

7.1 The Company will
provide life assurance to you so that in aggregate you are assured for the value
of four times annual salary, subject to your being acceptable for insurance at
rates normal for your age and subject to the rules of the relevant life
assurance arrangements. 

7.2 You (your spouse and
any unmarried children under 21 (or under 24 if in fulltime education)) are
entitled to membership of the Company’s permanent health insurance scheme
subject to the rules of the scheme and of any related policy of insurance. 

     Page
15 

	

7.3 If you wish, as an
alternative to membership of the Company’s scheme, the Company will bear
the costs of you being a member of another permanent health insurance scheme, up
to the value of the benefits available to you under the Company’s scheme. 

7.4 You are entitled to
receive an annual health check at a cost to the Company of no more than
£500 (or as increased and notified to you from time to time). 

COMPANY CAR

8. The Company will provide
you with a car (or cash in lieu if you so elect) in accordance with the terms of
the Company’s policy on executive directors’ cars (as notified to you
from time to time) for business and personal use and will bear the expenses of
taxing, insuring, repairing and maintaining the car. You agree to comply in full
with the Company’s policy on executive directors’ cars, failing which
the Company may require you to return the car immediately. 

CHAUFFEUR-DRIVEN
CAR

9. You shall be entitled to
the non-exclusive use of a chauffeur-driven car provided by the Company (subject
to availability) at no cost to you for purposes reasonably connected with the
Company’s business or as otherwise approved by the Chief Executive of the
Company. 

DIRECTORS’
INDEMNITY AND INSURANCE

10. You shall have the benefits of: 

	(a) 		the
indemnity contained in regulation 155 of the Company's Articles of Association; 

	(b)		
any similar indemnity in respect of liabilities incurred by Group Company
directors in their capacity as such contained in the constitutional documents of
any other Group Company for so long as you are a director or officer of such
other Group Company; and 

	(c)		
(subject to their terms) any insurance policies which shall be maintained by the
Company in respect of liabilities incurred by Group Company directors in their
capacity as such. 

	

OTHER BENEFITS

11.1 The Company will pay
the school fees in respect of your daughter of a sum of up to £12,000 (net
of tax) for the 2000 to 2001 academic year. 

11.2 You shall have such
other benefits as may be made available to you by the Company from time to time,
including but not limited to the use of Reuters products, mobile telephone and
other equipment and membership of professional bodies. 

     Page
16 

	

SCHEDULE 2

ADDITIONAL
STATUTORY PROVISIONS

EMPLOYMENT RIGHTS
ACT 1996

Additional particulars
required to be disclosed: 

CONTINUOUS
EMPLOYMENT

1. Your period of continuous
employment with the Company began on 1 September 1999. 

INJURY AND SICKNESS
PAY

2. If you are absent from work
because of sickness or injury, you must: 

	(a) 		notify
the Company as soon as possible on the first morning of absence and inform the Company of
your expected date of return; 

	(b) 		complete
and return to the Company a self-certification form in respect of the first five working
days of any sickness absence; 

	(c)		
provide the Company with a medical certificate from your GP or other registered
practitioner for periods of absence of seven days (including weekends) in excess
and with medical certificates for each subsequent week of sickness absence; 

	(d) 		if
requested by the Company, undergo a medical examination at the expense of the Company
with a medical practitioner nominated by the Company; and 

	(e)		
if requested by the Company give written permission to the Company to have
access to any medical or health report in its complete form prepared by any
health professional on your physical or mental condition. 

	

Subject to the above, you
will be entitled at the discretion of the Company to up to 365 days’ sick
pay (including statutory sick pay) in any 24 month rolling period. Sick pay will
be calculated at your normal rate of pay and benefits. 

DISCIPLINARY
RULES AND GRIEVANCE PROCEDURE

If at any time you have a
grievance relating to the Employment, you may seek redress orally or in writing
by, in the first instance, referring the grievance to the Chairman of the Board.
If the grievance remains unresolved, you may appeal to the Board and the Board
shall deal with the matter by discussion and by majority decision of those
present at the relevant meeting of the Board. The Board’s decision shall be
final and binding. 

     Page
17 

	

COLLECTIVE
AGREEMENTS

4. There are no collective
agreements with trade unions which directly affect your terms and conditions. 

     Page
18 

	

SCHEDULE 3

COMPETING
BUSINESS CONCERNS

AS AT THE DATE
OF THIS AGREEMENT

Part 1

Competing
Business Concerns

	 	Bloomberg
L.P.

	 	Pearson
PLC

	 	Quick
Corporation of Japan

	 	AOL
Time Warner

	 	Telekurs
A.G.

	 	SunGard

	 	The
Electronic Broking Service

	

Part 2

Companies with
Divisions which compete with Reuters

	 	The
Thomson Corporation

	 	The
McGraw Hill Companies

	 	The
Dun & Bradstreet Corporation

	 	Reed
Elsevier P.L.C./Elsevier N.V.

	

Part 3

Companies
with which Reuters has strategic relationships

	 	Multex.com,
Inc.

	 	Yahoo!
Inc.

	

     Page
19 

	

	SIGNED by
for and on behalf of

REUTERS GROUP PLC
in the presence of:-	)
 ) Sir Christopher Hogg

)
)

	SIGNED as
a DEED
and DELIVERED by
PHILIP GREEN
in the presence of :-	)
)
)
)

	

     Page
20 

	

21st
June 2001

REUTERS
GROUP PLC

DAVID GRIGSON

SERVICE AGREEMENT

	

TABLE OF
CONTENTS

			Page
		 		 		 
	1	 	Definitions	 	1	 
		 		 		 
	2	 	Duration of employment	 	1	 
		 		 		 
	3	 	Role, Powers and Duties	 	1	 
		 		 		 
	4	 	Normal Place of Work	 	2	 
		 		 		 
	5	 	Hours of Work	 	2	 
		 		 		 
	6	 	Salary and Benefits	 	2	 
		 		 		 
	7	 	Expenses	 	3	 
		 		 		 
	8	 	Other Interests	 	3	 
		 		 		 
	9	 	Inventions and Improvements	 	4	 
		 		 		 
	10	 	Confidentiality	 	5	 
		 		 		 
	11	 	Statutory Provisions	 	6	 
		 		 		 
	12	 	Termination	 	6	 
		 		 		 
	13	 	Garden Leave and Suspension	 	10	 
		 		 		 
	14	 	Continuing Obligations	 	10	 
		 		 		 
	15	 	Waiver	 	12	 
		 		 		 
	16	 	Amendments	 	12	 
		 		 		 
	17	 	Notices	 	12	 
		 		 		 
	18	 	Other Agreements	 	13	 
		 		 		 
	19	 	Governing Law	 	13	 
		 		 		 
	20	 	Withholding Taxes	 	13	 

	 		
	SCHEDULE 1:	 	Other Benefits	 	14	 
		 		 		 
	SCHEDULE 2:	 	Additional Statutory Provisions	 	17	 
		 		 		 
	SCHEDULE 3:	 	Competing Business Concerns	 	19	 

	

THIS AGREEMENT is made on 21st June
2001 

BETWEEN

(1) REUTERS GROUP PLC registered in
England with No. 3296375 whose registered office is at 85 Fleet Street, London, EC4P 4AJ
(the Company); and 

(2) DAVID GRIGSON of Bainton
Farmhouse, Bainton, Stamford, Lincolnshire PE9 3AF (you). 

IT IS AGREED as follows: 

DEFINITIONS

1. In this Agreement the following
expressions shall have the following meanings: 

Board
means the board of directors of Reuters Group PLC or a duly constituted
committee of the board of directors; 

Employment means your employment in
accordance with the terms and conditions of this Agreement; 

Group
means the Company, any holding company of the Company and any
subsidiary of the Company or of any such holding company (with holding company
and subsidiary having the meanings given to them by section 736 of the
Companies Act 1985). Group Company and Group
Companies shall be construed accordingly; and 

Remuneration
Committee means the remuneration committee of the Board. 

DURATION OF
EMPLOYMENT

2. The Employment will
begin on 1 August 2000 and will continue until terminated in accordance with
Clause 12 below. 

ROLE, POWERS
AND DUTIES

3.1 You will serve the
Company as Finance Director (Chief Financial Officer) or in such other capacity
of a like status as the Company may require. 

3.2 Subject to Clause 4,
you will exercise such powers and perform such duties in relation to the
business of the Company and the Group, being duties which are appropriate to
your senior status, as may be assigned to you by the Chief Executive of the
Company after taking into account the opinion of the Board. 

3.3 During the Employment you will: 

	(a) 		devote
substantially the whole of your working time, attention and abilities to carrying out
those duties in a proper, loyal and efficient manner; 

	

	(b) 		use
all reasonable endeavours to promote the interests of the Company and any other Group
Company which you may be required to serve under the terms of this Agreement; 

	(c)		
have due regard to the Reuters Trust Principles and to the rights and duties of
the Reuters Trustees as set out in the Memorandum and Articles of Association of
the Company and the Memorandum and Articles of Association of Reuters Founders
Share Company Limited insofar as, by the proper exercise of your powers (and in
accordance with your other duties) as director of the Company, the Reuters Trust
Principles are capable of being observed by you; 

	(d)		
have due regard to the provisions of the Reuters Code of Conduct (as notified to
you from time to time) and, so far as reasonably practicable in the performance
of your duties, observe all material provisions of that Code; 

	(e) 		comply
with the Reuters Share Dealings Code (as notified to you from time to time); and 

	(f) 		have
due regard to the provisions of all other policies which are applied to you by the
Company, as notified to you from time to time. 

	

3.4 You are entitled to
take independent professional advice, at the expense of the Company, where such
advice is reasonably required for the furtherance of your duties as a director
of the Company and provided that before taking such advice you obtain the
written consent of one other director and send a copy of such consent to the
Company Secretary and that the Company’s expenditure on such advice does
not exceed £50,000 per annum. 

NORMAL PLACE
OF WORK

4. Your normal place of
work is at the Company’s head office. You may be required, in the
performance of your duties, to travel in the United Kingdom and overseas.
However, having given you reasonable notice, the Company may reasonably require
you to perform your duties at the offices of another Group Company in a major
financial centre outside the United Kingdom, such as New York, in which case you
shall be offered expatriate benefits appropriate to your senior status. 

HOURS OF WORK

5. You will work the
Company’s normal working hours together with such additional hours as may
reasonably be required for the proper performance of your duties. 

SALARY AND
BENEFITS

6.1 You will be paid a
salary at such rate as is set out in an annual letter to you from the Company
and as confirmed in your annual statement of remuneration and benefits. 

     Page
2 

	

6.2 Your salary will accrue
from day to day and be payable in arrears by equal monthly instalments on or
about the fifteenth day of each month. 

6.3 You are not entitled to
any other salary or fees as director or employee of the Company or any other
Group Company and you must, as the Company directs, either waive your rights to
any such salary or fees or account for the same to the Company (failing which it
will be deducted from your salary). 

6.4 Your salary and
benefits will be reviewed annually by the Remuneration Committee. Any change in
the level of your salary and benefits as a result of the review (which will not
be downwards) will be effective from 1 January of the year following the review
(unless you and the Chairman of the Remuneration Committee agree otherwise). 

6.5 In addition to the
above, you will be entitled to receive those benefits set out in Schedule 1 to
this Agreement. 

6.6 During or after the
termination of the Employment for whatever reason, the Company may deduct from
your pay any sums outstanding to the Company or to any other Group Company from
you including, without limitation, any advance of pay or loans or floats for
expenses. 

EXPENSES

7. Subject to the
Company’s policies on executive directors’ expenses and executive
directors’ spouse expenses (as notified to you from time to time), the
Company will reimburse to you all reasonable travelling, hotel and other
out-of-pocket expenses (including first class travel expenses) properly incurred
by you and your spouse in the execution of the duties of the Employment against
production of valid receipts and properly completed expense reports. 

OTHER INTERESTS

8.1 During the Employment
you will be entitled to accept appointments as a non-executive director of
companies other than a Group Company subject to: 

	(a) 		the
prior written consent of the Chief Executive of the Company (such consent to be confirmed
by the Board); and 

	(b) 		the
Company’s policy on non-executive directorships (as notified to you from time to time). 

	

You may retain any fees
received as a non-executive director provided they are paid in cash rather than
in stock, other securities or options. Days of service as a non-executive
director will not be deducted from your holiday entitlement provided that you
shall not spend more than ten working days in aggregate in any year in such
service. At any time during the Employment the Company may, with reasonable
cause, require you to resign any non-executive directorship held. Reasonable
cause for this purpose shall include but not be limited to a conflict of
interest and such other reason or reasons as may be specified in the Reuters
Code of Conduct (as notified to you from time to time). 

     Page
3 

	

8.2 During the Employment
you will not be directly or indirectly concerned in any business, trade,
profession or other occupation (whether as an employee, consultant, agent,
director or otherwise) of a similar nature to or competitive with that carried
on by the Company or any Group Companies except: 

	(a) 		as
a representative or officer of a Group Company; 

	(b) 		as
a non-executive director under Clause 8.1; 

	(c)		
by virtue of your being interested in securities not representing more than one
per cent. of a company’s issued securities of any class which are either
(i) listed on a recognised stock exchange or dealt on an unlisted securities
market or an alternative investment market or authorised for quotation in a
recognised inter-dealer quotation system or (ii) of a private company whose
shares the Chief Executive of the Company has authorised you to hold; or 

	(d) 		with
the prior written consent of the Board. 

	

8.3 You may serve on the
board of religious, charitable or public service organisations or otherwise be
engaged in the activities of such organisations provided so serving or being so
engaged does not prejudice your ability to fulfil your duties under this
Agreement. 

INVENTIONS AND
IMPROVEMENTS

9.1 It will be part of your normal
duties at all times: 

	(a)		
to consider in what manner and by what new methods or devices the products,
services, processes, equipment or systems of the Company and other Group
Companies with which you are concerned or for which you are responsible might be
improved; and 

	(b)		
promptly to give to the Company Secretary of the Company full details of any
invention or improvement which you may from time to time make or discover in the
course of your duties. 

	

Subject to the Patents Act
1977, the Company will be entitled free of charge to the sole ownership of any
such invention or improvement and to the exclusive use of it. 

9.2 You assign to the
Company (or to such other Group Company as the Company may direct) all
copyrights, designs and other proprietary rights, if any, which may be so
assigned in respect of all works and designs created by you or relating to your
responsibilities during the Employment for the full term of those rights to the
intent that those rights will immediately upon the completion of the relevant
work vest with the Company (or with such other Group Company as the Company may
direct). 

     Page
4 

	

9.3 At the request and cost
of the Company, you will do all such acts and things as may in the opinion of
the Board be necessary or conducive to vest such rights in the Company (or in
such other Group Company as it may direct). You irrevocably authorise the
Company for the purposes of this Clause to make use of your name and to sign and
to execute any documents or do any thing on your behalf. 

9.4 You will not do anything
knowingly to imperil the validity of any patent or protection or any application for a
patent or protection. 

9.5 You will not either
during or after the termination of the Employment exploit or assist others to
exploit any invention or improvement which you may from time to time make or
discover in the course of your duties or (unless it shall have become public
knowledge) make public or disclose any such invention or improvement or give any
information in respect of it except to the Company or as the Company may direct. 

9.6 You irrevocably waive
in favour of the Company (and in favour of such other Group Company as the
Company may direct), its licensees and successors-in-title any and all moral
rights in any works (existing or future) which are the subject of copyright made
by you in the course of the Employment. 

CONFIDENTIALITY

10.1 During and after the
termination of the Employment you will at all times keep confidential all
private information about the Company and other Group Companies including
technical and financial information which you may have acquired while in the
employment of the Company or of any other Group Company. You will not use such
information for your own benefit or for the benefit of any business not within
the Group. You will keep such information confidential to yourself, to other
members of the Board and to anybody who needs such information in order to
properly discharge his duties to the Company or any Group Company. Such
information includes (without limitation) the following: 

	(a)		
the business methods and information of the Company and any other Group
Companies (including, without limitation, prices charged, discounts given to
customers or obtained from suppliers, product development, marketing and
advertising programmes, costing, budgets, turnover, sales targets and other
financial information); 

	(b) 		lists
and particulars of the suppliers and customers of the Company or of any other Group
Companies and the individual contacts at such suppliers and customers; 

	(c) 		details
and terms of the Agreements with suppliers and customers of the Company or of any other
Group Companies; 

	(d) 		secret
development manufacturing or production processes and know-how employed by the Company or
any other Group Companies or their respective suppliers; and 

	

     Page
5 

	

	(e)		
confidential details as to the design of the products and inventions or
processes relating to the provision of services or developments relating to
future products and services of the Company or of any other Group Companies or
those of their respective suppliers. 

	

10.2 These restrictions
shall not apply to any disclosure or use authorised by the Board or required by
law or by the requirements of any regulatory or other authority to which the
Company or any other Group Company is subject. 

10.3 These restrictions
shall not apply to information which is already in the public domain other than
in cases where such information has become public as a result of a breach by you
of these restrictions. 

10.4 These restrictions
shall not restrict you from using your own personal skill in any business in
which you may lawfully be engaged after termination of the Employment. 

STATUTORY
PROVISIONS

11. Additional provisions, details
of which the Company is required by statute to provide you, are set out in Schedule 2 to
this Agreement. 

TERMINATION

Summary
termination

12.1 The Company may
terminate the Employment by immediate notice in writing and without payment of
any kind other than salary and bonus accrued at the date of termination: 

	(a) 		if
in the reasonable opinion of the Board you are guilty of any: 

			(i) 		serious
misconduct;

			(ii) 		persistent
misconduct continuing after demand for cessation of such misconduct is delivered in
writing by the Board or by the Company Secretary on instruction from the Board; or

	(b) 		if
you commit any material breach of any material provision of this Agreement; 

	(c) 		if
you neglect or refuse to carry out any material part of your duties (other than for a
reason mentioned in Clause 12.2); 

	(d) 		if
you engage in any conduct which brings or is likely to bring the Company or any other
Group Companies, in the reasonable opinion of the Board, into disrepute; 

	(e)		
if you become bankrupt or enter into a composition with your creditors or apply
for a receiving order or have a receiving order made against you; 

	

     Page
6 

	

	(f) 		if
you become prohibited by law from being a director; or 

	(g) 		if
you terminate your directorship of the Company without the consent of the Board. 

	

Termination by
the Company through illness

12.2 The Company may
terminate the Employment if you are prevented by illness (including mental
illness) or injury from attending to your duties for more than 365 days in
aggregate in any one period of 24 consecutive calendar months. The Company will
not terminate the Employment pursuant to this Clause 12.2 if, as a result,
you would or may forfeit any entitlement to benefits under the permanent health
insurance scheme referred to in Schedule 1 unless it has used all reasonable
endeavours to try to procure the continuation of cover under that scheme. 

Termination
through loss of directorship

12.3 If you are removed
from the office of director of the Company, or the Company fails in
general meeting to re-elect you as a director of the Company (if, under the
Articles of Association or other constitutional documents for the time being of
the Company as the case may be, you are obliged to retire by rotation or
otherwise), then the Company may elect that the Employment shall terminate
immediately without prejudice to the right of either party to this Agreement to
treat any act or omission causing such removal from office as a breach of this
Agreement. 

Termination on
change of control

12.4 Notwithstanding the
provisions of Clause 12.5, you may terminate the Employment by giving the
Company one month’s notice in writing, such notice to be given within three
months after a Change of Control unless a third party acquiring control of more
than 50% of the voting rights of the Company has agreed to adopt the Reuters
Trust Principles and the rights and duties of the Reuters Trustees as set out in
the Memorandum and Articles of Association of the Company and in the Memorandum
and Articles of Association of Reuters Founders Share Company Limited and to use
its best endeavours to procure that the Principles and such rights and duties
are observed and upheld within the Company and any holding company of the
Company. A Change of Control shall for the purpose of this Agreement occur where
more than 50% of the voting rights of the Company become controlled by any third
party (including persons acting in concert but excluding Reuters Founders Share
Company Limited) or the Company sells or otherwise disposes of all or
substantially all of its assets with the approval of the Company’s
shareholders, other than for the purposes of a reconstruction or reorganisation
in which (A) the ultimate ownership of the Company or substantially all its
assets is unaffected or (B) a new holding company for the Company is created,
where the new holding company has substantially the same shareholders and
proportionate shareholdings as those of the Company immediately prior to the
interposition of the new holding company. 

     Page
7 

	

Termination in
other circumstances

12.5 Subject to earlier termination
in accordance with the provisions of this Clause, the Employment will continue
until terminated: 

	(a) 		by
the Company giving you 12 months’written notice; or 

	(b) 		by
you giving the Company 12 months’written notice, 

	

such notice to expire not earlier
than 1 August 2002. 

The Company may, in its
sole discretion, elect to terminate the Employment before 1 August 2002 and/or
without giving you notice or the full period of notice required by 12.5 (a) in
which event you will be entitled to receive a payment calculated in accordance
with Clause 12.6. 

Liquidated
damages

12.6 This Clause applies if: 

	(a)		
the Employment is terminated by the Company otherwise than a termination (i) in
accordance with Clause 12.1 or (ii) where removal from office takes place in
circumstances justifying summary termination under Clause 12.1, in accordance
with Clause 12.3 or (iii) in accordance with Clause 12.5 unless the final
sentence of Clause 12.5 applies in which case this Clause will apply; 

	(b) 		you
are constructively dismissed which for these purposes shall include (without limitation): 

			(i) 		the
assignment to you of any duties inconsistent in any respect with your position (including
status, offices, titles and reporting requirement), authority, duties or
responsibilities; or

			(ii) 		any
other action by the Company which results in a diminution in such position, authority,
duties or responsibilities, but excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by you; or

	(c) 		you
terminate the Employment under Clause 12.4. 

	

Where this Clause applies,
the Company will (subject to the remainder of this Clause) pay to you by way of
liquidated damages: (1) if the termination occurs prior to 1 August 2001 an
amount equal to 2A-B and (2) if the termination occurs on or after 1 August
2001 an amount equal to A 

where A is the aggregate of: 

			(i) 		your
annual salary immediately prior to the date of termination of the Employment;

	

     Page
8 

	

			(ii) 		the
amount of pension contributions made by the Company on your behalf or to you in the last
financial year of the Company preceding the date of termination; and

			(iii)		the
average of the last three annual bonuses earned by you pursuant to paragraph 1 of
Schedule 1 to this Agreement in the last three complete financial years of the Company
preceding the date of termination. 

	

and B is the amount of
salary, pension contributions and (if applicable) bonus paid to you or on your
behalf whilst your Employment subsisted. 

In relation to (iii) above,
where there have been fewer than three complete financial years of the Company
during the Employment, the averaging shall be by reference to the number of
complete financial years which there have been during the Employment. Where
there has been less than one complete financial year of the Company during the
Employment, (iii) above shall be determined on the basis of the annualised bonus
earned by you for the period of the Employment or, if for any reason that is
unascertainable, on the basis of the bonus earned by the predecessor Finance
Director of the Company in 1999. 

In the event that the
Company requires you to work only part of the notice period required by Clause
12.5 (a), the liquidated damages payment under this Clause 12.6 will be reduced
by an amount equal to the salary, pension contributions and (if applicable)
bonus paid to you or on your behalf in respect of the period of notice worked. 

In the event that the
Employment is terminated in accordance with Clause 12.2, liquidated damages
payment under this Clause 12.6 will be reduced by an amount equal to the amount
of any benefit payable under the permanent health insurance scheme referred to
in Schedule 1, if termination occurs prior to 1 August 2001 for the period to 1
August 2002 and if termination occurs on or after 1 August 2001 for the period
of 12 months following the date of termination. 

The payment will be
conditional on you not bringing any claims before a court or tribunal relating
to the Employment and/or its termination. The payment will be made in two
stages. The total amount, less a deduction of £60,000, will be paid
within 14 days of the end of the Employment and the remaining balance of
£60,000 will be paid within four months of the end of the Employment, in
each case less any necessary withholdings. You agree to accept the same in full
and final settlement of all and any claims or rights of action that you have or
may have against the Company and against any other Group Company and against
their respective officers and employees in connection with the Employment or its
termination. 

Return of
documents

12.7 On termination of the
Employment for any reason or, at the request of the Company, when notice to
terminate the Employment is given, you must immediately deliver to the Company
(without keeping any copies): 

     Page
9 

	

	(a) 		all
documents, papers and materials and any other property of the Company and of any other
Group Companies; and 

	(b) 		all
documents or other media on which confidential information about the Company and any
other Group Companies is recorded, 

	

in your possession or under your
control. 

Resignation as
a director

12.8 On termination of the
Employment for any reason, you must immediately, at the request of the Company
resign your office as a director of the Company and of any other Group Company
without compensation for loss of office but without prejudice to any rights
which you may have to treat such request as a breach of this Agreement. 

Share schemes

12.9 It is acknowledged
that you may, during the Employment, be granted rights upon the terms and
subject to the conditions of the rules from time to time of the Reuters Group
PLC Long Term Incentive Plan or any other profit sharing, share incentive, share
option, bonus or phantom option scheme operated by the Company or any other
Group Company with respect to shares in the Company or any other Group Company.
If, on termination of the Employment, whether lawfully or in breach of contract
you lose any of the rights or benefits under such schemes (including rights or
benefits which you would not have lost had the Employment not been terminated)
you shall not be entitled, by way of compensation for loss of office or
otherwise howsoever, to any compensation for the loss of any rights under any
such scheme. 

GARDEN LEAVE
AND SUSPENSION

13.1 The Company may at any
time or from time to time suspend you from the performance of your duties and/or
exclude you from any of the premises of the Company or of any other Group
Company: 

	(a) 		during
any period of notice or any part of a period of notice as specified in Clauses 12.4 or
12.5; or 

	(b)		
in circumstances in which the Company reasonably believes that you are guilty of
misconduct or are in breach of this Agreement and in order that the
circumstances giving rise to that belief may be investigated. 

	

13.2 The Company is not
required to give any reason for suspending or excluding you. Your salary and
benefits will not cease to be payable by reason only of such suspension or
exclusion. 

13.3 During any period of
suspension or exclusion, you will not contact or deal with customers, suppliers
or employees of the Company or of any other Group Company or enter onto the
premises of the Company or of any Group Company without the prior written
consent of the Chief Executive of the Company. 

     Page
10 

	

CONTINUING
OBLIGATIONS

Non-representation

14.1 You will not at any
time after the termination of the Employment directly or indirectly represent
yourself as being in any way connected with or interested in the business of the
Group (except, if it is the case, as a shareholder of the Company or as a
director of the Company). 

Non-solicitation
of employees

14.2 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company or
employ or engage any employee of the Company or of any other Group Company with
whom you had business dealings or who reported to you, directly or indirectly,
during the period of 12 months preceding the date of termination of the
Employment and who is or was employed or engaged by the Company or by any other
Group Company: 

	(a) 		as
a director or in a managerial or technical capacity; or 

	(b)		
you know (or ought reasonably to know) could materially damage the interests of
the Company or any other Group Company if he became employed in any business in
competition with the business of the Company or of any other Group Company. 

	

Non-solicitation
of business

14.3 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company the
business or custom of any firm, company or other person who, during the period
of 12 months preceding the date of termination of the Employment, was a customer
of the Company or of any other Group Company with whom you had business dealings
or about whom you became informed or over whom you had influence in the course
of the Employment during that period, with a view to providing goods or services
which would compete with the business of the Company or of any other Group
Company carried on at the date of termination of the Employment and with which
you were materially involved during that period. 

Non-dealing

14.4 You must not for a
period of six months after the termination of the Employment deal with any
person, firm or company who during the period of 12 months preceding the date of
termination of the Employment was a customer or potential customer of the
Company or of any other Group Company and (in the case of a customer) to whom
you provided services on behalf of the Company or any other Group Company or (in
the case of a potential customer) with whom you had business dealings with a
view to obtaining business for the Company or any other Group Company and in
each case with whom you had business dealings or about whom you became informed
or over whom you had influence in the course of the Employment during that
period, with a view to providing goods or services which would compete with the
business of the Company or of any other Group Company carried on at the date of
termination of the Employment and with which you were materially involved during
that period. 

     Page
11 

	

Non-competition

14.5 You must not, for a
period of six months after the termination of the Employment, be engaged in or
concerned in any capacity in any business concern which is in competition with
the business of the Company or of any other Group Company. A list of such
business concerns as at the date of this Agreement is set out in Part 1
of Schedule 3 to this Agreement. Unless you have the prior approval of the
Chairman and the Chief Executive of the Company you may not, for a period of six
months after the termination of the Employment, be engaged in or concerned in
any capacity in any of the business concerns named in the lists set out in Parts
2 and 3 of Schedule 3 of this Agreement. The lists in Schedule 3 may be amended
by the Board acting reasonably (provided that the number of business concerns
included in Schedule 3 at any one time shall not exceed 15) and each such
amendment shall be notified to you from time to time. This Clause shall not
restrain you from being engaged or concerned in any business concern in so far
as your duties or work relate solely to services or activities of a kind with
which you were not concerned to a material extent during the period of six
months preceding the date of termination of the Employment. 

Extension to
other persons

14.6 The obligations
imposed on you by this Clause 14 extend to you acting not only on your own
account but also on behalf of any other firm, company or other person and shall
apply whether you act directly or indirectly. 

Acknowledgement
of reasonableness

14.7 The restrictions
contained in this Clause 14 are considered by you and the Company to be
reasonable in all the circumstances. Each part of this Clause constitutes an
entirely separate and independent restriction and the duration, extent and
application of each of the restrictions are not greater than is necessary for
the protection of the commercial interests of the Group and their stable trained
workforce. 

No disparaging
statements

14.8 Each party agrees
during, and after termination of, the Employment not to make, publish or cause
to be made, published or issued or otherwise communicate to any third party any
disparaging or derogatory statements to any third party concerning you or the
Company or any Group Company or any of its or their current executives,
officers, employees, agents or consultants, provided that nothing in this
Agreement will prevent you or the Company from disclosing information as
required by law or in order to take professional advice or as ordered by a court
of competent jurisdiction. 

     Page
12 

	

WAIVER

15. Any delay or forbearance by the
Company in exercising any right of determination of this Agreement shall not constitute a
waiver of it. 

AMENDMENTS

16. No amendment or waiver
of any of the provisions of this Agreement shall be effective unless made in
writing and signed by you and a director or the Company Secretary of the
Company. 

NOTICES

17. Any notice required to be served
under this Agreement may be given either personally, by fax or by registered post: 

	(a) 		to
the Company at its registered office for the time being; or 

	(b) 		to
you at the address at the start of this Agreement or your last known address. 

	

Any notice to be given
under this Agreement to you may be served by being handed to you personally or
by being sent by recorded delivery first class post or by fax to you at your
usual or last known address; and any notice to be given to the Company may be
served by being marked for the attention of the Company Secretary and by being
left at or by being sent by recorded delivery first class post or by fax to its
registered office for the time being. Any notice served by post shall be deemed
to have been served on the second day (excluding Sundays and statutory holidays)
next following the date of posting and in proving such service it shall be
sufficient proof that the envelope containing the notice was, in your case,
addressed to you at your usual or last known address and, in the case of the
Company, addressed to it marked for the attention of the Company Secretary at
its registered office for the time being, and in either case posted as a prepaid
letter by recorded delivery. Any notice served by fax shall be deemed to have
been served twelve hours after the time of despatch. 

OTHER
AGREEMENTS

18. You acknowledge and
warrant that there are no Agreements or arrangements whether written, oral or
implied between the Company or any other Group Company and you relating to your
employment or the Employment other than those which are expressly set out in
this Agreement and that you are not entering into this Agreement in reliance on
any representation not expressly set out in this Agreement. 

GOVERNING LAW

19. This Agreement will be
governed by and construed under English law without regard to its conflicts of
laws provisions, and each of the parties hereby irrevocably agrees for the
exclusive benefit of the Company that the Courts of England are to have
jurisdiction to settle any disputes which may arise out of or in connection with
this Agreement. 

     Page
13 

	

WITHHOLDING TAX

20. All amounts payable to
you under this Agreement shall be subject to applicable withholding of income,
salary and such other withholdings that the Company determines are required to
be withheld in accordance with applicable laws. 

AS WITNESS whereof
this Agreement has been signed by or on behalf of the parties to it on the day
and year first above written. 

     Page
14 

	

SCHEDULE 1

OTHER
BENEFITS

BONUS

1. You will be entitled to
participate in an annual bonus plan to be administered by the Remuneration
Committee. Unless otherwise agreed by the Remuneration Committee, the maximum
annual bonus payable under this plan will be an amount up to 70% of your base
salary (from 1 July 2001, 100% of your base salary). The criteria relating to
your performance and that of the Company which are to be used to determine the
amount of the bonus in any year will be laid down by the Remuneration Committee
at the commencement of each year and the bonus for that year will be paid as
soon as reasonably practicable after the relevant results have been determined.
The Remuneration Committee reserves the right to amend the quantitative criteria
annually and/or to discontinue the bonus arrangement. On termination of the
Employment, other than termination pursuant to Clause 12.1 or termination in
respect of which Clause 12.6 applies, you shall be entitled to a pro-rated
amount of bonus, being such proportion of average bonus (calculated according to
Clause 12.6(iii)) as is the same as the proportion of the last financial year
during which the Employment has subsisted. 

SHARE OPTION
PLANS

2.1 You will be eligible
for membership of the Company’s Save As You Earn Share Option Scheme and of
any other all employee share option plan operated by the Company and approved by
the Company’s shareholders. Participation in such scheme and plans is, save
as otherwise stipulated in their rules, at the sole discretion of the Board or
the Remuneration Committee. 

2.2 If you are relocated to
a country outside the United Kingdom, you are entitled to participate in any
equivalent scheme or plan operated by a Group Company in that country. 

HOLIDAYS

3.1 The Company’s
holiday year runs from 1 January to 31 December. In addition to the bank and
other public holidays, you will be entitled to 30 working days’ paid
holiday in each holiday year. In the first year of the Employment, the annual
entitlement will be pro rata based on the holiday year. 

3.2 Your annual holiday may
be taken at such time or times as are reasonably appropriate having regard to
the business needs of the Company. 

3.3 Holidays not taken in
the year of entitlement will be lost unless carried forward with the agreement
of the Chief Executive of the Company. 

3.4 On termination of the
Employment, you will be entitled to pay in lieu of any unpaid holiday or be
required to pay the Company any salary received for holiday taken in excess of
your contractual entitlement. You may be required to take any untaken holiday
during your notice period. 

     Page
15 

	

PENSION SCHEMES

4.1 You are entitled to
join the Reuters UK Retirement Plan subject to the trust deed and rules of the
scheme from time to time in force. 

4.2 Subject to any limits
imposed by the Inland Revenue from time to time, the Company will pay
contributions to the Company pension scheme as set out in your annual statement
of remuneration and benefits. 

4.3 A contracting out certificate is
in force in respect of the Employment. 

4.4 In addition the Company
will contribute 20% of your base salary above the pensions cap imposed by the
Inland Revenue from time to time (such contribution to be taxable) to an
appropriate retirement benefit scheme of your choice. 

LONG TERM
INCENTIVE PLAN

5. You are entitled to be a
member of the Reuters Group PLC Long Term Incentive Plan or any plan operated by
the Company in succession to that plan (as notified to you from time to time)
for so long as the Plan or such plan may be operated by the Company, and the
Company shall pay to you benefits under the Plan or such plan, subject to the
conditions of the Company’s policy on retention of LTIP awards on early
retirement (as notified to you from time to time). 

DISABILITY
INSURANCE

6. You shall be entitled to
membership of, and the Company shall pay to you benefits under, the
Company’s disability insurance scheme, subject to the terms of that scheme
and of any related policy of insurance as in force from time to time. 

LIFE ASSURANCE
AND PERMANENT HEALTH SCHEME

7.1 The Company will
provide life assurance to you in addition to that provided under the Reuters UK
Retirement Plan so that in aggregate you are assured for the value of four times
annual salary, subject to your being acceptable for insurance at rates normal
for your age and subject to the rules of the relevant life assurance
arrangements. 

7.2 You (your spouse and
any unmarried children under 21 (or under 24 if in fulltime education)) are
entitled to membership of the Company’s permanent health insurance scheme
subject to the rules of the scheme and of any related policy of insurance. 

7.3 If you wish, as an
alternative to membership of the Company’s scheme, the Company will bear
the costs of you being a member of another permanent health insurance scheme, up
to the value of the benefits available to you under the Company’s scheme. 

     Page
16 

	

7.4 You are entitled to
receive an annual health check at a cost to the Company of no more than
£500 (or as increased and notified to you from time to time). 

COMPANY CAR

8. The Company will provide
you with a car (or cash in lieu if you so elect) in accordance with the terms of
the Company’s policy on executive directors’ cars (as notified to you
from time to time) for business and personal use and will bear the expenses of
taxing, insuring, repairing and maintaining the car. You agree to comply in full
with the Company’s policy on executive directors’ cars, failing which
the Company may require you to return the car immediately. 

CHAUFFEUR-DRIVEN
CAR

9. You shall be entitled to
the non-exclusive use of a chauffeur-driven car provided by the Company (subject
to availability) at no cost to you for purposes reasonably connected with the
Company’s business or as otherwise approved by the Chief Executive of the
Company. 

DIRECTORS’
INDEMNITY AND INSURANCE

10. You shall have the benefits of: 

	(a) 		the
indemnity contained in regulation 155 of the Company’s Articles of Association; 

	(b)		
any similar indemnity in respect of liabilities incurred by Group Company
directors in their capacity as such contained in the constitutional documents of
any other Group Company for so long as you are a director or officer of such
other Group Company; and 

	(c)		
(subject to their terms) any insurance policies which shall be maintained by the
Company in respect of liabilities incurred by Group Company directors in their
capacity as such. 

OTHER BENEFITS

	11.		
You shall have such other benefits as may be made available to you by the
Company from time to time, including but not limited to the use of Reuters
products, mobile telephone and other equipment and membership of professional
bodies. 

	

     Page
17 

	

SCHEDULE 2

ADDITIONAL
STATUTORY PROVISIONS

EMPLOYMENT RIGHTS
ACT 1996

Additional particulars
required to be disclosed: 

CONTINUOUS
EMPLOYMENT

1. The Employment is not continuous
with any other period of employment with the Company or with any other Group Company. 

INJURY AND SICKNESS
PAY

2. If you are absent from work
because of sickness or injury, you must: 

	(a) 		notify
the Company as soon as possible on the first morning of absence and inform the Company of
your expected date of return; 

	(b) 		complete
and return to the Company a self-certification form in respect of the first five working
days of any sickness absence; 

	(c)		
provide the Company with a medical certificate from your GP or other registered
practitioner for periods of absence of seven days (including weekends) in excess
and with medical certificates for each subsequent week of sickness absence; 

	(d) 		if
requested by the Company, undergo a medical examination at the expense of the Company
with a medical practitioner nominated by the Company; and 

	(e)		
if requested by the Company give written permission to the Company to have
access to any medical or health report in its complete form prepared by any
health professional on your physical or mental condition. 

	

Subject to the above, you
will be entitled at the discretion of the Company to up to 365 days’ sick
pay (including statutory sick pay) in any 24 month rolling period. Sick pay will
be calculated at your normal rate of pay and benefits. 

DISCIPLINARY
RULES AND GRIEVANCE PROCEDURE

If at any time you have a
grievance relating to the Employment, you may seek redress orally or in writing
by, in the first instance, referring the grievance to the Chairman of the Board.
If the grievance remains unresolved, you may appeal to the Board and the Board
shall deal with the matter by discussion and by majority decision of those
present at the relevant meeting of the Board. The Board’s decision shall be
final and binding. 

     Page
18 

	

COLLECTIVE
AGREEMENTS

4. There are no collective
agreements with trade unions which directly affect your terms and conditions. 

     Page
19 

	

SCHEDULE 3

COMPETING
BUSINESS CONCERNS

AS AT THE DATE
OF THIS AGREEMENT

Part 1

Competing
Business Concerns

	 	Bloomberg
L.P.

	 	Pearson
PLC

	 	Quick
Corporation of Japan

	 	AOL
Time Warner

	 	Telekurs
A.G.

	 	SunGard

	 	The
Electronic Broking Service

	

Part 2

Companies with
Divisions which compete with Reuters

	 	The
Thomson Corporation

	 	The
McGraw Hill Companies

	 	The
Dun & Bradstreet Corporation

	 	Reed
Elsevier P.L.C./Elsevier N.V.

	

Part 3

Companies
with which Reuters has strategic relationships

	 	Multex.com,
Inc.

	 	Yahoo!
Inc.

	

     Page
20 

	

	SIGNED by
for and on behalf of
REUTERS GROUP PLC
in the presence of:-	)
 ) Sir Christopher Hogg
)
)

	SIGNED as
a DEED
and DELIVERED by
DAVID GRIGSON
in the presence of :-	)
)
)
)

	

     Page
21 

	

31st December, 2001

REUTERS
GROUP PLC

GEOFFREY
WEETMAN

SERVICE
AGREEMENT

	

Reuters Remuneration Committee
Strictly Confidential – No Further Copying 

TABLE OF
CONTENTS

			Page
	1.	 	Definitions	 	1	 
	2.	 	Duration of employment	 	1	 
	3.	 	Role, Powers and Duties	 	1	 
	4.	 	Normal Place of Work	 	2	 
	5.	 	Hours of Work	 	2	 
	6.	 	Salary and Benefits	 	2	 
	7.	 	Expenses	 	3	 
	8.	 	Other Interests	 	3	 
	9.	 	Inventions and Improvements	 	4	 
	10.	 	Confidentiality	 	5	 
	11.	 	Statutory Provisions	 	6	 
	12.	 	Termination	 	6	 
	13.	 	Garden Leave and Suspension	 	10	 
	14.	 	Continuing Obligations	 	10	 
	15.	 	Waiver	 	12	 
	16.	 	Amendments	 	12	 
	17.	 	Notices	 	12	 
	18.	 	Other Agreements	 	13	 
	19.	 	Governing Law	 	13	 
	20.	 	Withholding Tax	 	13	 

			
	SCHEDULE 1:	 	Other Benefits	 	14	 
	SCHEDULE 2:	 	Additional Statutory Provisions	 	17	 
	SCHEDULE 3:	 	Competing Business Concerns	 	19	 
	SCHEDULE 4:	 	Pension and Life Assurance Schemes	 	20	 

	

THIS AGREEMENT is made on 31st
December, 2001
BETWEEN 

	(1) 		REUTERS
GROUP PLC registered in England with No. 3296375 whose registered office is at 85 Fleet
Street, London, EC4P 4AJ (the Company); and 

	(2) 		GEOFFREY
ARTHUR WEETMAN of Tyseley, Grimms Hill, Great Missenden, Buckinghamshire, HP16 9BG (you). 

	

IT IS AGREED as follows: 

Definitions

1. In this Agreement the following
expressions shall have the following meanings: 

Board
means the board of directors of Reuters Group PLC or a duly constituted
committee of the board of directors; 

Employment means your employment in
accordance with the terms and conditions of this Agreement; 

Group
means the Company, any holding company of the Company and any
subsidiary of the Company or of any such holding company (with holding company
and subsidiary having the meanings given to them by section 736 of the
Companies Act 1985). Group Company and Group
Companies shall be construed accordingly; and Remuneration
Committee means the remuneration committee of the Board. 

Duration of
employment

2. The Employment will
begin on the date of this Agreement and will continue until terminated in
accordance with Clause 12 below. 

Role, powers
and duties

3.1 You will serve the
Company as Group Human Resources Director, or in such other capacity of a like
status as the Company may require. 

3.2 Subject to Clause 4,
you will exercise such powers and perform such duties in relation to the
business of the Company and the Group, being duties which are appropriate to
your senior status, as may be assigned to you by the Chief Executive of the
Company after taking into account the opinion of the Board. 

3.3 During the Employment you will: 

	(a) 		devote
substantially the whole of your working time, attention and abilities to carrying out
those duties in a proper, loyal and efficient manner; 

	(b) 		use
all reasonable endeavours to promote the interests of the Company and any other Group
Company which you may be required to serve under the terms of this Agreement; 

	

	(c)		
have due regard to the Reuters Trust Principles and to the rights and duties of
the Reuters Trustees as set out in the Memorandum and Articles of Association of
the Company and the Memorandum and Articles of Association of Reuters Founders
Share Company Limited insofar as, by the proper exercise of your powers (and in
accordance with your other duties) as director of the Company, the Reuters Trust
Principles are capable of being observed by you; 

	(d)		
have due regard to the provisions of the Reuters Code of Conduct (as notified to
you from time to time) and, so far as reasonably practicable in the performance
of your duties, observe all material provisions of that Code; 

	(e) 		comply
with the Reuters Share Dealings Code (as notified to you from time to time); and 

	(f) 		have
due regard to the provisions of all other policies which are applied to you by the
Company, as notified to you from time to time. 

	

3.4 You are entitled to
take independent professional advice, at the expense of the Company, where such
advice is reasonably required for the furtherance of your duties as a director
of the Company and provided that before taking such advice you obtain the
written consent of one other director and send a copy of such consent to the
Company Secretary and that the Company’s expenditure on such advice does
not exceed £50,000 per annum. 

Normal place
of work

4. Your normal place of
work is at the Company’s head office. You may be required, in the
performance of your duties, to travel in the United Kingdom and overseas.
However, having given you reasonable notice, the Company may reasonably require
you to perform your duties at the offices of another Group Company in a major
financial centre outside the United Kingdom, such as New York, in which case you
shall be offered expatriate benefits appropriate to your senior status. 

Hours of work

5. You will work the
Company’s normal working hours together with such additional hours as may
reasonably be required for the proper performance of your duties. 

Salary and
benefits

6.1 You will be paid a
salary at such rate as is set out in an annual letter to you from the Company
and as confirmed in your annual statement of remuneration and benefits. 

6.2 Your salary will accrue
from day to day and be payable in arrears by equal monthly instalments on or
about the fifteenth day of each month. 

Page 2 

	

6.3 You are not entitled to
any other salary or fees as director or employee of the Company or any other
Group Company and you must, as the Company directs, either waive your rights to
any such salary or fees or account for the same to the Company (failing which it
will be deducted from your salary). 

6.4 Your salary and
benefits will be reviewed annually by the Remuneration Committee. Any change in
the level of your salary and benefits as a result of the review (which will not
be downwards) will be effective from 1 January of the year following the review
(unless you and the Chairman of the Remuneration Committee agree otherwise). 

6.5 In addition to the
above, you will be entitled to receive those benefits set out in Schedule 1 to
this Agreement. 

6.6 During or after the
termination of the Employment for whatever reason, the Company may deduct from
your pay any sums outstanding to the Company or to any other Group Company from
you including, without limitation, any advance of pay or loans or floats for
expenses. 

Expenses

7. Subject to the
Company’s policies on executive directors’ expenses and executive
directors’ spouse expenses (as notified to you from time to time), the
Company will reimburse to you all reasonable travelling, hotel and other
out-of-pocket expenses (including first class travel expenses) properly incurred
by you and your spouse in the execution of the duties of the Employment against
production of valid receipts and properly completed expense reports. 

Other interests

8.1 During the Employment you will
be entitled to accept appointments as a non-executive director of companies other than a
Group Company subject to: 

	(a) 		the
prior written consent of the Chief Executive of the Company (such consent to be confirmed
by the Board); and 

	(b) 		the
Company’s policy on non-executive directorships (as notified to you from time to time). 

	

You may retain any fees
received as a non-executive director provided they are paid in cash rather than
in stock, other securities or options. Days of service as a non-executive
director will not be deducted from your holiday entitlement provided that you
shall not spend more than ten working days in aggregate in any year in such
service. At any time during the Employment the Company may, with reasonable
cause, require you to resign any non-executive directorship held. Reasonable
cause for this purpose shall include but not be limited to a conflict of
interest and such other reason or reasons as may be specified in the Reuters
Code of Conduct (as notified to you from time to time). 

Page 3 

	

8.2 During the Employment
you will not be directly or indirectly concerned in any business, trade,
profession or other occupation (whether as an employee, consultant, agent,
director or otherwise) of a similar nature to or competitive with that carried
on by the Company or any Group Companies except: 

	(a) 		as
a representative or officer of a Group Company; 

	(b) 		as
a non-executive director under Clause 8.1; 

	(c)		
by virtue of your being interested in securities not representing more than one
per cent of a company’s issued securities of any class which are either (i)
listed on a recognised stock exchange or dealt on an unlisted securities market
or an alternative investment market or authorised for quotation in a recognised
inter-dealer quotation system or (ii) of a private company whose shares the
Chief Executive of the Company has authorised you to hold; or 

	(d) 		with
the prior written consent of the Board. 

	

8.3 You may serve on the
board of religious, charitable or public service organisations or otherwise be
engaged in the activities of such organisations provided so serving or being so
engaged does not prejudice your ability to fulfil your duties under this
Agreement. 

Inventions and
improvements

9.1 It will be part of your normal
duties at all times: 

	(a)		
to consider in what manner and by what new methods or devices the products,
services, processes, equipment or systems of the Company and other Group
Companies with which you are concerned or for which you are responsible might be
improved; and 

	(b)		
promptly to give to the Company Secretary of the Company full details of any
invention or improvement which you may from time to time make or discover in the
course of your duties. 

	

Subject to the Patents Act
1977, the Company will be entitled free of charge to the sole ownership of any
such invention or improvement and to the exclusive use of it. 

9.2 You assign to the
Company (or to such other Group Company as the Company may direct) all
copyrights, designs and other proprietary rights, if any, which may be so
assigned in respect of all works and designs created by you or relating to your
responsibilities during the Employment for the full term of those rights to the
intent that those rights will immediately upon the completion of the relevant
work vest with the Company (or with such other Group Company as the Company may
direct). 

9.3 At the request and cost
of the Company, you will do all such acts and things as may in the opinion of
the Board be necessary or conducive to vest such rights in the Company (or in
such other Group Company as it may direct). You irrevocably authorise the
Company for the purposes of this Clause to make use of your name and to sign and
to execute any documents or do any thing on your behalf. 

Page 4 

	

9.4 You will not do
anything knowingly to imperil the validity of any patent or protection or any
application for a patent or protection. 

9.5 You will not either
during or after the termination of the Employment exploit or assist others to
exploit any invention or improvement which you may from time to time make or
discover in the course of your duties or (unless it shall have become public
knowledge) make public or disclose any such invention or improvement or give any
information in respect of it except to the Company or as the Company may direct. 

9.6 You irrevocably waive in favour
of the Company (and in favour of such other Group Company as the
Company may direct), its licensees and successors-in-title any and all moral
rights in any works (existing or future) which are the subject of copyright made
by you in the course of the Employment. 

Confidentiality

10.1 During and after the
termination of the Employment you will at all times keep confidential all
private information about the Company and other Group Companies including
technical and financial information which you may have acquired while in the
employment of the Company or of any other Group Company. You will not use such
information for your own benefit or for the benefit of any business not within
the Group. You will keep such information confidential to yourself, to other
members of the Board and to anybody who needs such information in order to
properly discharge his duties to the Company or any Group Company. Such
information includes (without limitation) the following: 

	(a)		
the business methods and information of the Company and any other Group
Companies (including, without limitation, prices charged, discounts given to
customers or obtained from suppliers, product development, marketing and
advertising programmes, costing, budgets, turnover, sales targets and other
financial information); 

	(b) 		lists
and particulars of the suppliers and customers of the Company or of any other Group
Companies and the individual contacts at such suppliers and customers; 

	(c) 		details
and terms of the Agreements with suppliers and customers of the Company or of any other
Group Companies; 

	(d) 		secret
development manufacturing or production processes and know-how employed by the Company or
any other Group Companies or their respective suppliers; and 

	(e)		
confidential details as to the design of the products and inventions or
processes relating to the provision of services or developments relating to
future products and services of the Company or of any other Group Companies or
those of their respective suppliers. 

	

Page 5 

	

10.2 These restrictions
shall not apply to any disclosure or use authorised by the Board or required by
law or by the requirements of any regulatory or other authority to which the
Company or any other Group Company is subject. 

10.3 These restrictions
shall not apply to information which is already in the public domain other than
in cases where such information has become public as a result of a breach by you
of these restrictions. 

10.4 These restrictions
shall not restrict you from using your own personal skill in any business in
which you may lawfully be engaged after termination of the Employment. 

Statutory
provisions

11. Additional provisions,
details of which the Company is required by statute to provide you, are set out
in Schedule 2 to this Agreement. 

Termination

Summary
termination

12.1 The Company may
terminate the Employment by immediate notice in writing and without payment of
any kind other than salary and bonus accrued at the date of termination: 

	(a) 		if
in the reasonable opinion of the Board you are guilty of any: 

			(i) 		gross
misconduct;

			(ii) 		persistent
serious misconduct continuing after demand for cessation of such misconduct is delivered
in writing by the Board or by the Company Secretary on instruction from the Board; or

	(b) 		if
you commit any material breach of any material provision of this Agreement; 

	(c) 		if
you neglect or refuse to carry out any material part of your duties (other than for a
reason mentioned in Clause 12.2); 

	(d) 		if
you engage in any conduct which brings or is likely to bring the Company or any other
Group Companies, in the reasonable opinion of the Board, into disrepute; 

	(e)		
if you become bankrupt or enter into a composition with your creditors or apply
for a receiving order or have a receiving order made against you; 

	(f) 		if
you become prohibited by law from being a director; or 

	

Page 6 

	

	(g) 		if
you terminate your directorship of the Company without the consent of the Board. 

	

Termination by the Company through
illness 

12.2 The Company may
terminate the Employment if you are prevented by illness (including mental
illness) or injury from attending to your duties for more than 365 days in
aggregate in any one period of 24 consecutive calendar months. The Company will
not terminate the Employment pursuant to this Clause 12.2 if, as a result,
you would or may forfeit any entitlement to benefits under the private
healthcare scheme referred to in Schedule 1 unless it has used all reasonable
endeavours to try to procure the continuation of cover under that scheme. 

Termination through loss of
directorship 

12.3 If you are removed
from the office of director of the Company, or the Company fails in
general meeting to re-elect you as a director of the Company (if, under the
Articles of Association or other constitutional documents for the time being of
the Company as the case may be, you are obliged to retire by rotation or
otherwise), then the Company may elect that the Employment shall terminate
immediately without prejudice to the right of either party to this Agreement to
treat any act or omission causing such removal from office as a breach of this
Agreement. 

Termination on change of control 

12.4 Notwithstanding the
provisions of Clause 12.5, you may terminate the Employment by giving the
Company one month’s notice in writing, such notice to be given within three
months after a Change of Control unless a third party acquiring control of more
than 50% of the voting rights of the Company has agreed to adopt the Reuters
Trust Principles and the rights and duties of the Reuters Trustees as set out in
the Memorandum and Articles of Association of the Company and in the Memorandum
and Articles of Association of Reuters Founders Share Company Limited and to use
its best endeavours to procure that the Principles and such rights and duties
are observed and upheld within the Company and any holding company of the
Company. A Change of Control shall for the purpose of this Agreement occur where
more than 50% of the voting rights of the Company become controlled by any third
party (including persons acting in concert but excluding Reuters Founders Share
Company Limited) or the Company sells or otherwise disposes of all or
substantially all of its assets with the approval of the Company’s
shareholders, other than for the purposes of a reconstruction or reorganisation
in which (A) the ultimate ownership of the Company or substantially all its
assets is unaffected or (B) a new holding company for the Company is created,
where the new holding company has substantially the same shareholders and
proportionate shareholdings as those of the Company immediately prior to the
interposition of the new holding company. 

	

Page 7 

	

Termination in other circumstances 

	12.5		
Subject to earlier termination in accordance with the provisions of this Clause,
the Employment will continue until terminated: 

	(a) 		by
the Company giving you 12 months’written notice; or 

	(b) 		by
you giving the Company 12 months’written notice. 

	

The Company may, in its
sole discretion, elect to terminate the Employment without giving you notice or
the full period of notice required by 12.5 (a) in which event you will be
entitled to receive a payment calculated in accordance with Clause 12.6. 

Liquidated
damages

12.6 This Clause applies if: 

	(a)		
the Employment is terminated by the Company otherwise than a termination (i) in
accordance with Clause 12.1 or (ii) where removal from office takes place in
circumstances justifying summary termination under Clause 12.1, in accordance
with Clause 12.3 or (iii) in accordance with Clause 12.5 unless the final
sentence of Clause 12.5 applies in which case this Clause will apply; 

	(b) 		you
are constructively dismissed which for these purposes shall include (without limitation): 

			(i) 		the
assignment to you of any duties inconsistent in any respect with your position (including
status, offices, titles and reporting requirement), authority, duties or
responsibilities; or

			(ii) 		any
other action by the Company which results in a diminution in such position, authority,
duties or responsibilities, but excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by you; or

	(c) 		you
terminate the Employment under Clause 12.4. 

	

Where this Clause applies,
the Company will (subject to the remainder of this Clause) pay to you by way of
liquidated damages an amount equal to the aggregate of: 

			(i) 		your
annual salary immediately prior to the date of termination of the Employment;

			(ii) 		the
amount of pension contributions made by the Company on your behalf or to you in the last
financial year of the Company preceding the date of termination; and

			(iii)		the
average of the last three annual bonuses earned by you pursuant to paragraph 1 of
Schedule 1 to this Agreement in the last three complete financial years of the Company
preceding the date of termination. 

	

Page 8 

	

In the event that the
Company requires you to work only part of the notice period required by Clause
12.5 (a), the liquidated damages payment under this Clause 12.6 will be reduced
by an amount equal to the salary, pension contributions and (if applicable)
bonus paid to you or on your behalf in respect of the period of notice worked. 

In the event that the
Employment is terminated in accordance with Clause 12.2, liquidated damages
payment under this Clause 12.6 will be reduced by an amount equal to the amount
of any benefit payable under the private healthcare scheme referred to in
Schedule 1 for the period of 12 months following the date of termination. 

The payment will be
conditional on you not bringing any claims before a court or tribunal relating
to the Employment and/or its termination. The payment will be made in two
stages. The total amount, less a deduction of £60,000, will be paid
within 14 days of the end of the Employment and the remaining balance of
£60,000 will be paid within four months of the end of the Employment, in
each case less any necessary withholdings. You agree to accept the same in full
and final settlement of all and any claims or rights of action that you have or
may have against the Company and against any other Group Company and against
their respective officers and employees in connection with the Employment or its
termination. 

Return of documents 

12.7 On termination of the
Employment for any reason or, at the request of the Company, when notice to terminate the
Employment is given, you must immediately deliver to the Company (without keeping any
copies):  

	(a) 		all
documents, papers and materials and any other property of the Company and of any other
Group Companies; and 

	(b) 		all
documents or other media on which confidential information about the Company and any
other Group Companies is recorded, 

	

in your possession or under your
control. 

Resignation as a director 

12.8 On termination of the
Employment for any reason, you must immediately, at the request of the Company
resign your office as a director of the Company and of any other Group Company
without compensation for loss of office but without prejudice to any rights
which you may have to treat such request as a breach of this Agreement. 

Share schemes 

12.9 It is acknowledged
that you may, during the Employment, be granted rights upon the terms and
subject to the conditions of the rules from time to time of the Reuters Group
PLC Long Term Incentive Plan or any other profit sharing, share incentive, share
option, bonus or phantom option scheme operated by the Company or any other
Group Company with respect to shares in the Company or any other Group Company.
If, on termination of the Employment, whether lawfully or in breach of contract
you lose any of the rights or benefits under such schemes (including rights or
benefits which you would not have lost had the Employment not been terminated)
you shall not be entitled, by way of compensation for loss of office or
otherwise howsoever, to any compensation for the loss of any rights under any
such scheme. 

Page 9 

	

Garden leave
and suspension

	13.1		
The Company may at any time or from time to time suspend you from the
performance of your duties and/or exclude you from any of the premises of the
Company or of any other Group Company: 

	(a) 		during
any period of notice or any part of a period of notice as specified in Clauses 12.4 or
12.5; or 

	(b)		
in circumstances in which the Company reasonably believes that you are guilty of
misconduct or are in breach of this Agreement and in order that the
circumstances giving rise to that belief may be investigated. 

	

13.2 The Company is not
required to give any reason for suspending or excluding you. Your salary and
benefits will not cease to be payable by reason only of such suspension or
exclusion. 

13.3 During any period of
suspension or exclusion, you will not contact or deal with customers, suppliers
or employees of the Company or of any other Group Company or enter onto the
premises of the Company or of any Group Company without the prior written
consent of the Chief Executive of the Company. 

Continuing
obligations

Non-representation 

14.1 You will not at any
time after the termination of the Employment directly or indirectly represent
yourself as being in any way connected with or interested in the business of the
Group (except, if it is the case, as a shareholder of the Company or as a
director of the Company). 

Non-solicitation of employees 

14.2 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company or
employ or engage any employee of the Company or of any other Group Company with
whom you had business dealings or who reported to you, directly or indirectly,
during the period of 12 months preceding the date of termination of the
Employment and who is or was employed or engaged by the Company or by any other
Group Company: 

Page 10 

	

	(a) 		as
a director or in a managerial or technical capacity; or 

	(b)		
you know (or ought reasonably to know) could materially damage the interests of
the Company or any other Group Company if he became employed in any business in
competition with the business of the Company or of any other Group Company. 

	

Non-solicitation of business 

14.3 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company the
business or custom of any firm, company or other person who, during the period
of 12 months preceding the date of termination of the Employment, was a customer
of the Company or of any other Group Company with whom you had business dealings
or about whom you became informed or over whom you had influence in the course
of the Employment during that period, with a view to providing goods or services
which would compete with the business of the Company or of any other Group
Company carried on at the date of termination of the Employment and with which
you were materially involved during that period. 

Non-dealing 

14.4 You must not for a
period of six months after the termination of the Employment deal with any
person, firm or company who during the period of 12 months preceding the date of
termination of the Employment was a customer or potential customer of the
Company or of any other Group Company and (in the case of a customer) to whom
you provided services on behalf of the Company or any other Group Company or (in
the case of a potential customer) with whom you had business dealings with a
view to obtaining business for the Company or any other Group Company and in
each case with whom you had business dealings or about whom you became informed
or over whom you had influence in the course of the Employment during that
period, with a view to providing goods or services which would compete with the
business of the Company or of any other Group Company carried on at the date of
termination of the Employment and with which you were materially involved during
that period. 

Non-competition 

14.5 You must not, for a
period of six months after the termination of the Employment, be engaged in or
concerned in any capacity in any business concern which is in competition with
the business of the Company or of any other Group Company. A list of such
business concerns as at the date of this Agreement is set out in Part 1
of Schedule 3 to this Agreement. Unless you have the prior approval of the
Chairman and the Chief Executive of the Company you may not, for a period of six
months after the termination of the Employment, be engaged in or concerned in
any capacity in any of the business concerns named in the lists set out in Parts
2 and 3 of Schedule 3 of this Agreement. The lists in Schedule 3 may be amended
by the Board acting reasonably (provided that the number of business concerns
included in Schedule 3 at any one time shall not exceed 15) and each such
amendment shall be notified to you from time to time. This Clause shall not
restrain you from being engaged or concerned in any business concern in so far
as your duties or work relate solely to services or activities of a kind with
which you were not concerned to a material extent during the period of six
months preceding the date of termination of the Employment. 

Page 11 

	

Extension to other persons 

14.6 The obligations
imposed on you by this Clause 14 extend to you acting not only on your own
account but also on behalf of any other firm, company or other person and shall
apply whether you act directly or indirectly. 

Acknowledgement of reasonableness 

14.7 The restrictions
contained in this Clause 14 are considered by you and the Company to be
reasonable in all the circumstances. Each part of this Clause constitutes an
entirely separate and independent restriction and the duration, extent and
application of each of the restrictions are not greater than is necessary for
the protection of the commercial interests of the Group and their stable trained
workforce. 

No disparaging statements 

14.8 Each party agrees
during, and after termination of, the Employment not to make, publish or cause
to be made, published or issued or otherwise communicate to any third party any
disparaging or derogatory statements to any third party concerning you or the
Company or any Group Company or any of its or their current executives,
officers, employees, agents or consultants, provided that nothing in this
Agreement will prevent you or the Company from disclosing information as
required by law or in order to take professional advice or as ordered by a court
of competent jurisdiction. 

Waiver

15. Any delay or forbearance by the
Company in exercising any right of determination of this Agreement shall not constitute a
waiver of it. 

Amendments

16. No amendment or waiver
of any of the provisions of this Agreement shall be effective unless made in
writing and signed by you and a director or the Company Secretary of the
Company. 

Notices

17. Any notice required to be served
under this Agreement may be given either personally, by fax or by registered post: 

	(a) 		to
the Company at its registered office for the time being; or 

	

Page 12 

	

	(b) 		to
you at the address at the start of this Agreement or your last known address. 

	

Any notice to be given
under this Agreement to you may be served by being handed to you personally or
by being sent by recorded delivery first class post or by fax to you at your
usual or last known address; and any notice to be given to the Company may be
served by being marked for the attention of the Company Secretary and by being
left at or by being sent by recorded delivery first class post or by fax to its
registered office for the time being. Any notice served by post shall be deemed
to have been served on the second day (excluding Sundays and statutory holidays)
next following the date of posting and in proving such service it shall be
sufficient proof that the envelope containing the notice was, in your case,
addressed to you at your usual or last known address and, in the case of the
Company, addressed to it marked for the attention of the Company Secretary at
its registered office for the time being, and in either case posted as a prepaid
letter by recorded delivery. Any notice served by fax shall be deemed to have
been served twelve hours after the time of despatch. 

Other
Agreements

18. You acknowledge and
warrant that there are no Agreements or arrangements whether written, oral or
implied between the Company or any other Group Company and you relating to your
employment or the Employment other than those which are expressly set out in
this Agreement and that you are not entering into this Agreement in reliance on
any representation not expressly set out in this Agreement. 

Governing law

19. This Agreement will be
governed by and construed under English law without regard to its conflicts of
laws provisions, and each of the parties hereby irrevocably agrees for the
exclusive benefit of the Company that the Courts of England are to have
jurisdiction to settle any disputes which may arise out of or in connection with
this Agreement. 

Withholding Tax

20. All amounts payable to
you under this Agreement shall be subject to applicable withholding of income,
salary and such other withholdings that the Company determines are required to
be withheld in accordance with applicable laws. 

AS WITNESS whereof
this Agreement has been signed by or on behalf of the parties to it on the day
and year first above written. 

Page 13 

	

SCHEDULE 1
OTHER
BENEFITS

Bonus

1.You will be entitled to
participate in an annual bonus plan to be administered by the Remuneration
Committee. Unless otherwise agreed by the Remuneration Committee, the maximum
annual bonus payable under this plan will be an amount up to 100% of your base
salary. The criteria relating to your performance and that of the Company which
are to be used to determine the amount of the bonus in any year will be laid
down by the Remuneration Committee at the commencement of each year and the
bonus for that year will be paid as soon as reasonably practicable after the
relevant results have been determined. The Remuneration Committee reserves the
right to amend the quantitative criteria annually and/or to discontinue the
bonus arrangement. On termination of the Employment, other than termination
pursuant to Clause 12.1 or termination in respect of which Clause 12.6 applies,
you shall be entitled to a pro-rated amount of bonus, being such proportion of
average bonus (calculated according to Clause 12.6(iii)) as is the same as the
proportion of the last financial year during which the Employment has subsisted. 

Share Option
Plans

2.1 You will be eligible
for membership of the Company’s Save As You Earn Share Option Scheme and of
any other all employee share option plan operated by the Company and approved by
the Company’s shareholders. Participation in such scheme and plans is, save
as otherwise stipulated in their rules, at the sole discretion of the Board or
the Remuneration Committee. 

2.2 If you are relocated to
a country outside the United Kingdom, you are entitled to participate in any
equivalent scheme or plan operated by a Group Company in that country. 

Holidays

3.1 The Company’s
holiday year runs from 1 January to 31 December. In addition to the bank and
other public holidays, you will be entitled to 30 working days’ paid
holiday in each holiday year. 

3.2 Your annual holiday may
be taken at such time or times as are reasonably appropriate having regard to
the business needs of the Company. 

3.3 Holidays not taken in
the year of entitlement will be lost unless carried forward with the agreement
of the Chief Executive of the Company. 

3.4 On termination of the
Employment, you will be entitled to pay in lieu of any unpaid holiday or be
required to pay the Company any salary received for holiday taken in excess of
your contractual entitlement. You may be required to take any untaken holiday
during your notice period. 

Page 14 

	

Pension and
life assurance schemes

4. You will continue to be
a member of, and the Company shall pay or procure to be paid to you your
benefits under Reuters Pension Fund and Reuters Supplementary Pension Scheme,
subject to the Trust Deed and Rules governing those schemes and to any Inland
Revenue or other applicable limits. A contracting-out certificate is in force in
respect of the Employment. The applicable benefits are set out in Schedule 4 to
this Agreement. 

Long term
incentive plan

5. You are entitled to be a
member of the Reuters Group PLC Long Term Incentive Plan or any plan operated by
the Company in succession to that plan (as notified to you from time to time)
for so long as the Plan or such plan may be operated by the Company, and the
Company shall pay to you benefits under the Plan or such plan, subject to the
conditions of the Company’s policy on retention of LTIP awards on early
retirement (as notified to you from time to time). 

Incapacity
benefit/long term disability benefit

6. You shall be entitled to
membership of, and the Company shall pay to you benefits under, the
Company’s disability scheme, subject to the terms of that scheme and of any
related policy of insurance as in force from time to time. 

Medical
benefit/private healthcare scheme

7.1 You (your spouse and
any unmarried children under 21 (or under 24 if in fulltime education)) are
entitled to membership of the Company’s private healthcare scheme subject
to the rules of the scheme and of any related policy of insurance. 

7.2 If you wish, as an
alternative to membership of the Company’s scheme, the Company will bear
the costs of you being a member of another private healthcare scheme, up to the
value of the benefits available to you under the Company’s scheme. 

7.3 You are entitled to
receive an annual health check at a cost to the Company of no more than
£500 (or as increased and notified to you from time to time). 

Company car

8. The Company will provide
you with a car (or cash in lieu if you so elect) in accordance with the terms of
the Company’s policy on executive directors’ cars (as notified to you
from time to time) for business and personal use and will bear the expenses of
taxing, insuring, repairing and maintaining the car. You agree to comply in full
with the Company’s policy on executive directors’ cars, failing which
the Company may require you to return the car immediately. 

Page 15 

	

Chauffeur-driven
car

9. You shall be entitled to
the non-exclusive use of a chauffeur-driven car provided by the Company (subject
to availability) at no cost to you for purposes reasonably connected with the
Company’s business or as otherwise approved by the Chief Executive of the
Company. 

Directors’
indemnity and insurance

10. You shall have the benefits of: 

	(a) 		the
indemnity contained in regulation 155 of the Company’s Articles of Association; 

	(b)		
any similar indemnity in respect of liabilities incurred by Group Company
directors in their capacity as such contained in the constitutional documents of
any other Group Company for so long as you are a director or officer of such
other Group Company; and 

	(c)		
(subject to their terms) any insurance policies which shall be maintained by the
Company in respect of liabilities incurred by Group Company directors in their
capacity as such. 

	

Other benefits

11. You shall have such
other benefits as may be made available to you by the Company from time to time,
including but not limited to the use of Reuters products, mobile telephone and
other equipment and membership of professional bodies. 

Page 16 

	

SCHEDULE 2
ADDITIONAL
STATUTORY PROVISIONS
EMPLOYMENT RIGHTS ACT 1996 

Additional particulars
required to be disclosed: 

Continuous
employment

1. Your period of continuous
employment with the Company began on 1st September 1973. 

Injury and sickness
pay

2. If you are absent from work
because of sickness or injury, you must: 

	(a) 		notify
the Company as soon as possible on the first morning of absence and inform the Company of
your expected date of return; 

	(b) 		complete
and return to the Company a self-certification form in respect of the first five working
days of any sickness absence; 

	(c)		
provide the Company with a medical certificate from your GP or other registered
practitioner for periods of absence of seven days (including weekends) in excess
and with medical certificates for each subsequent week of sickness absence; 

	(d) 		if
requested by the Company, undergo a medical examination at the expense of the Company
with a medical practitioner nominated by the Company; and 

	(e)		
if requested by the Company give written permission to the Company to have
access to any medical or health report in its complete form prepared by any
health professional on your physical or mental condition. 

	

Subject to the above, you
will be entitled at the discretion of the Company to up to 365 days’ sick
pay (including statutory sick pay) in any 24 month rolling period. Sick pay will
be calculated at your normal rate of pay and benefits. 

Disciplinary
rules and grievance procedure

3. If at any time you have
a grievance relating to the Employment, you may seek redress orally or in
writing by, in the first instance, referring the grievance to the Chairman of
the Board. If the grievance remains unresolved, you may appeal to the Board and
the Board shall deal with the matter by discussion and by majority decision of
those present at the relevant meeting of the Board. The Board’s decision
shall be final and binding. 

Collective
Agreements

4. There are no collective
agreements with trade unions which directly affect your terms and conditions. 

Page 17 

	

SCHEDULE 3

COMPETING
BUSINESS CONCERNS

AS AT THE DATE
OF THIS AGREEMENT

Part 1

Competing
Business Concerns

	 	Bloomberg
L.P.

	 	Pearson
PLC

	 	Quick
Corporation of Japan

	 	AOL
Time Warner

	 	Telekurs
A.G.

	 	SunGard

	 	The
Electronic Broking Service

	

Part 2

Companies with
Divisions which compete with Reuters

	 	The
Thomson Corporation

	 	The
McGraw Hill Companies

	 	The
Dun & Bradstreet Corporation

	 	Reed
Elsevier P.L.C./Elsevier N.V.

	

Part 3

Companies
with which Reuters has strategic relationships

	 	Multex.com,
Inc.

	 	Yahoo!Inc.

	

Page 18 

	

SCHEDULE 4

PENSION AND
LIFE ASSURANCE SCHEMES

Pension: You are entitled at your
normal retirement age of 60 to a pension of two thirds of your pensionable salary. If you
retire before age 60 you will receive an immediate pension of two thirds of your
pensionable salary without reduction. 

The total pension payable from your
pension arrangements will be subject to Inland Revenue limits.  

Pension increases: On retirement you
are guaranteed to receive increases in your pension of no less than the increase in the
Retail Prices Index, up to a maximum of 5%. 

Death in service: A lump sum payable
of 4 times basic salary payable plus 4 x the average of taxable emoluments for the three
years immediately before death. 

A spouse’s pension of
two-thirds of your prospective pension is payable (subject to reduction on the advice of
the Actuary if the spouse is 16 years or more younger). 

Death after retirement: A spouse’s
pension of two-thirds of your pension is payable (subject to reduction on the advice of
the Actuary if the spouse is 16 years or more younger). 

Children’s Allowances: On death
in service or death after retirement, the allowances payable in respect of any Qualifying
Children will be one quarter of the pension payable to the surviving spouse per child up
to a maximum of two children. If there is no surviving spouse one half of the pension
that would have been paid to the surviving spouse would be paid as an allowance to each
child up to a maximum of two children. 

(A Qualifying Child is your child
being under the age of 18 or if in full-time education under the age of 21. It also
includes an adopted child or a child in relation to which you stand in loco parentis,
subject to the approval of the Managing Committee of Reuters Pension Fund.)  

Page 19 

	

SIGNED by 

Sir
Christopher Hogg

     ) 

for and on behalf of 

     ) 

REUTERS GROUP PLC

     ) 

in the presence of- 

Stephen
Clements

     ) 

SIGNED as a DEED 

     ) 

and DELIVERED by 

     ) 

GEOFFREY WEETMAN 

     ) 

in the presence of :- 

Rosemary Martin

     ) 

Page 20Exhibit 4.6

	

kpmg 

Reuters Group PLC

Long Term Incentive
Plan Rules 

Date approved at EGM :
16 December 1997 
Date adopted by Board of Directors : 12 December 1997 
Amended by the
Remuneration Committee : 19 July 1999, 
5 December 2000 and 12 February 2001

[Further amendments approved at EGM : 24 April 2001] 

The Board of Reuters Group PLC
reserves the right up to the time of the Extraordinary General Meeting on 24 April 2001
to make such amendments or additions to the Rules of this Plan as it may consider
necessary or desirable, provided that such amendments or additions do not conflict in any
material respect with the details of the Plan set out in the circular dated 14 March 2001
to the Shareholders of Reuters Group PLC.  

	

	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	Contents
	 
	1	 	Definitions	 	1	 
	 
	2	 	Grant of Awards	 	12	 
	 
	3	 	Vesting and Deferral of Vesting	 	15	 
	 
	4	 	Exercise of Options, Transfer of Share Awards 
and Dividend Equivalent Shares	 	16	 
	 
	5	 	Trade sales, Reconstructions, Liquidations and Option Exchanges	 	20	 
	 
	6	 	Variation of Share Capital	 	24	 
	 
	7	 	Manner of Exercise of Options and transfer of shares
subject to Share Awards	 	25
	 
	8	 	Administration and Amendment	 	28	 
	 
	9	 	Miscellaneous	 	30	 

	

	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	1	 	Definitions	 	 	 
	 
	1.1	 	In these Rules the following words and expressions shall have, where the context so admits, the following meanings:	 
	 
	 	 	“Adoption Date”	 	16 December 1997;	 
	 
	 	 	“Announcement Date”	 	the date on which the Company announces its final results for a financial year;	 
	 
	 	 	“Associated Company”	 	a company is to be treated as another company’s associated company if at that time one of the two has Control of the other, or both are under the Control of the same person or persons;	 
	 
	 	 	“Auditors”	 	the auditors for the time being of the Company (acting as experts and not as arbitrators);	 
	 
	 	 	“Award”	 	an award under the Plan which may consist of any or a combination of any of:	 
	 
	 	 	 	 	(a)     a contingent right to Shares; or	 
	 
	 	 	 	 	(b)     a Bonus Option; or	 
	 
	 	 	 	 	(c)     a Standard Option;	 
	 
		 	 	 	and where the context requires the references to an Award shall be deemed to include references to any Dividend Equivalent Shares or right or contingent right thereto arising under such Award;	 

	

	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	 	 	“Award Certificate”	 	the Award certificate in the form or forms agreed by the Plan Committee from time to time;	 
	 
	 	 	“Board”	 	the board of Directors of the Company or a duly constituted committee thereof;	 
	 
	 	 	“Bonus Option”	 	an Option granted in conjunction with a Linked Bonus;	 
	 
	 	 	“the Company”	 	Reuters Group PLC or, save for Rules 1, 2, 3 and 8.3, such company as shall be at any time the “Acquiring Company” as defined in Rule 5.5;	 
	 
	 	 	“Compromise or Arrangement”	 	a compromise or arrangement (including a reorganisation of the Company’s share capital by the consolidation of shares of different classes
or by the division of shares into shares of different classes or by both of those methods) between the Company and its members or creditors or any class of either which has been approved by not less than 75% in value of the creditors or members (based on the value of the interests as at the last record date) or such class of either who vote on such compromise or arrangement and which has been sanctioned by the Court; 	 
	 
	 	 	“Control”	 	in relation to a body corporate the power of a person which is a member of that Body Corporate (“the Body Corporate”) to secure:	 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	 	 	 	 	(a)     by the holding of shares or the possession of voting 
          power in or in relation to the Body Corporate or any 
          other body corporate; or	 
	 
	 	 	 	 	(b)     by virtue of its right to appoint or remove a majority of 
          the board of directors of that Body Corporate; or	 
	 
	 	 	 	 	(c)     by virtue of any power by the certificate of incorporation, 
          articles of association, bye laws, membership agreement 
          or other document regulating the Body Corporate or any 
          other body corporate	 
	 
	 	 	 	 	that the affairs of the Body Corporate are conducted in accordance with the wishes of that person;	 
	 
	 	 	“Date of Grant”	 	the date on which an Award is granted to an Eligible Employee or is treated as being granted pursuant to Rule 2.6;	 
	 
	 	 	“Deferral Notice”	 	A notice in the form or forms agreed by the Plan Committee from time to time;	 
	 
	 	 	“Director”	 	any person occupying the office of director of the Company, by whatever name called;	 
	 
	 	 	“Dividend Equivalent Shares”	 	in respect of any Award which is subject to a Restricted Period and has Vested, such additional Shares to which a Participant may become entitled in accordance with Rule 4;	 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	  	 	“Eligible Employee”	 	an employee (whether contracted to work full time or part time) of any Group Company including any Director other than a non executive Director;	 
	 
	  	 	“Exercise Price”	 	the amount as determined by the Company which a Participant shall pay to acquire a Share on the exercise of an Option being, (subject to Rule 2.6 and Rule 6): 	 
	 
	  	 	  	 	(a)     in the case of a Bonus Option, an amount which is not 
          less than the Market Value of a Share on the Date of 
          Grant; or	 
	 
	  	 	  	 	(b)     in the case of a Standard Option, one pound sterling in 
          aggregate to acquire all of the Shares over which the 
          Standard Option is exercised on each occasion of 
          exercise or, if the Standard Option is exercised in full on 
          one occasion only, one pound sterling in total;	 
	 
	  	 	“Form of Renunciation”	 	the form of renunciation in the form agreed by the Plan Committee from time to time;	 
	 
	  	 	“Group”	 	the Company and its Subsidiaries and the phrase “Group Company” shall be construed accordingly;	 
	 
	  	 	“Letter of Grant”	 	the letter or other communication (which may include electronic communication) in the form agreed by the Plan Committee from time to time;	 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	  	 	“Linked Bonus”	 	the gross bonus payable to a Participant on the exercise of a Bonus Option being an amount equal to the Exercise Price multiplied by the number of Shares over which that Bonus Option is being exercised rounded down to the nearest whole pound;	 
	 
	  	 	“Market Value”	 	on any day, the average closing middle market quotation of a Share as derived from the Daily Official List of the London Stock Exchange plc on the three dealing days which immediately precede that day;	 
	 
	  	 	“Measurement Period”	 	in respect of any Award, the period beginning on 1 January in the year in which the Date of Grant of that Award falls and ending on 31 December in the calendar year preceding the third anniversary of such Date of Grant (“the First Measurement Period”), the fourth anniversary (“the Second Measurement Period”) or the fifth anniversary (“the Final Measurement Period”);	 
	 
	  	 	“Model Code”	 	the Model Code for transactions in securities by Directors issued from time to time by the UK Listing Authority and/or any code of practice adopted by the Board in addition to or replacement of such publication;	 
	 
	  	 	“New Award”	 	an award over shares in the Acquiring Company (as defined in Rule 5.5 ) granted in of the release of a Subsisting Award and which shall satisfy the following conditions:	 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	  	 	  	 	(a)     that it is a right or contingent right to acquire such          number of shares in the Acquiring Company as has on the          acquisition of the New Award an aggregate Market Value          equal to the aggregate Market Value of the Shares subject 
         to the Subsisting Award on its release; and 	 
	 
	  	 	  	 	(b)     that in the case of an Award which is an Option, it has an 
         exercise price per share such that the aggregate price 
         payable on the complete exercise equals the aggregate 
         price which would have been payable on complete 
         exercise of the Subsisting Option;	 
	 
	  	 	“NI Election”	 	an election made in respect of an Option jointly by a Participant and a relevant Group Company for the purposes of Paragraph 
3(B)(1) of Schedule 1 to the Social Security Contributions and Benefits Act 1992;	 
	 
	  	 	“Notice of Exercise”	 	the notice of exercise in the form agreed by the Board or the Plan Committee from time to time;	 
	 
	  	 	“Option”	 	an Award made in the form of a right to acquire Shares granted or to be granted pursuant to Rules 2.1 or 2.6 and the term “Option” shall be construed to mean either “a Bonus Option” or “a Standard Option” or both as the context requires;	 
	 
	  	 	“Participant”	 	an Eligible Employee who has been granted and remains entitled to a Subsisting Award or (where the context admits) his legal personal representative(s) or transferee;	 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	  	 	“Performance Condition”	 	the condition imposed by the Plan Committee whereby an Award is granted on terms that it shall not Vest until and to the extent that such conditions have been satisfied, (such Performance Condition being specified in the Schedule hereto and in respect of any Award made after 24 April 2001 being as specified in the Part 1 of such Schedule hereto and in respect of any Award made before 25 April 2001 being as specified in Part 2 of such Schedule);	 
	 
	  	 	“Plan”	 	this Plan constituted and governed by the Rules with and subject to any amendments thereto properly effected;	 
	 
	  	 	“Plan Committee”	 	the Board or a duly authorised committee appointed by the Board to oversee the operation of this Plan, provided that in the case of Awards granted or to be granted to executive Directors, and in relation to any discretions under these Rules which may be exercised by the Plan Committee in relation to Awards granted to or held by executive Directors, this committee shall be the Remuneration Committee;	 
	 
	  	 	“Release Date”	 	(a)     in the case of an Award which is made subject to a 
         Restricted Period, the date on which the Restricted 
         Period ends; and	 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	  	 	  	 	(b)     in the case of all other Awards the Release Date shall be 
          the Vesting Date	 
	 
	  	 	  	 	and the expression  “Release” and  “Released”  shall have a corresponding  meaning,  provided  that if the Release Date of any Award would  otherwise fall within a close period or a period  when a  Participant  is  prohibited  by the Model Code,  statute order or  regulation  (whether of the United Kingdom  or any other  country)  from  dealing in Shares or rights over or interests in Shares,  the Release Date shall be the day following the end of such close or other period;	 
	 
	  	 	“Remuneration Committee”	 	the Board or a duly constituted committee of the Board delegated with the authority to consider the remuneration of Directors and senior employees of the Group;	 
	 
	  	 	“Restricted Period”	 	for all Awards made to Eligible Employees who at their Dates of Grant were Directors and for other Awards (if any) which are granted subject to a Restricted Period the period beginning on 1 January in the calendar year in which Vesting takes place and ending on the Announcement Date falling two years or thereabouts (one year in the case of Vesting which has been deferred twice in accordance with Rule 3.3) after the date of Vesting of that Award;	 
	 
	  	 	“Rules”	 	the rules of this Plan as amended from time to time and “Rule” shall be construed accordingly;	 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	  	 	“Share”	 	an Ordinary Share in the capital of the Company which is, was or will be fully paid on issue;	 
	 
	  	 	“Share Award”	 	an Award made in the form of a contingent right to receive Shares;	 
	 
	  	 	“Standard Option”	 	an Option other than a Bonus Option;	 
	 
	  	 	“Subsidiary”	 	a company which is under the Control of another company;	 
	 
	  	 	“Subsisting Award”	 	an Award of Shares or an Award of Options which has been granted and which has not been surrendered, renounced, or (in the case of a Share Award) Vested and Released, or (in the case of Options) Released and exercised in full nor otherwise lapsed;	 
	 
	  	 	“Tax Liability”	 	in relation to a Participant the amount of all taxes and/or social security
contributions and/or social taxes and/or national insurance contributions (including any national insurance contributions due from a Participant as a
result of an NI Election in respect of an Option) or any other contribution or impost which any Group Company or the Trustee is required to withhold
and account for on behalf of that Participant in respect of his Awards (including any such liabilities in respect of a Linked Bonus and/or Dividend
Equivalent Shares) under the Plan;	 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	  	 	“Trust”	 	any employee share ownership trust which has been or may be established from time to time by the Company or any other Group Company to operate in conjunction with this Plan and which may include the trusts known as the Reuters ESOT No.I and Reuters ESOT No.II;	 
	 
	  	 	“Trustee”	 	the trustee or trustees for the time being of the Trust;	 
	 
	  	 	“UK Listing Authority”	 	the Financial Services Authority acting in its capacity as the competent authority for the purposes of Part IV of the Financial Services Act 1986 and in the exercise of its functions in respect of admission  to the Official List.	 
	 
	  	 	“Vesting”	 	the Performance Condition attributable to an Award having been satisfied in whole or, subject to Rule 3, in part and the expression “Vest and “Vested” shall have a corresponding meaning, provided that in the case of an Award granted subject to a Restricted Period the Award shall not be Released until the end of that Restricted Period;	 

			1.2 		In
these Rules, except insofar as the context otherwise requires: 

			(i) 		words denoting
the singular shall include the plural and vice versa; 

			(ii) 		 words
importing a gender shall include every gender and references to a person shallinclude
bodies corporate and unincorporated and vice versa; 

			(iii) 		 reference
to any enactment shall be construed as a reference to that enactment as from time to time
amended, modified, extended or re-enacted and shall include any orders, regulations,
instruments or other sub-ordinate legislation made under the relevant enactment; and 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	(iv) 		headings
and captions are provided for reference only and shall not be considered as part of the
Plan. 2  

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	2 		Grant of Awards 

	2.1 		The
Plan Committee may, after consultation with the Chief Executive in its absolute
discretion select any number of individuals who shall at the intended Date of Grant be
Eligible Employees and recommend to the Trustee the
grant of Awards to them.  

	2.2 		Awards
may be granted at any time when it is permitted to do so in accordance with the Model
Code. Awards shall not be granted later than the tenth anniversary of the Adoption Date.  

	2.3.1 		Awards
shall be granted by the relevant Trustee in its discretion having considered the
recommendations made by the Plan Committee and shall be subject to the satisfaction of
the Performance Condition.  

	2.3.2 		The
Performance Condition to apply in respect of Awards made up to and including calendar
year 2001 shall be as specified in the first and second parts of the Schedule to these
Rules and shall not be capable of amendment or waiver unless events happen which cause
the Plan Committee to consider that the relevant Performance Condition has ceased to be
appropriate whereupon the Plan Committee may at any time amend, relax or waive the
Performance Condition provided that in the reasonable opinion of the Plan Committee the
varied Performance Condition is materially no more easy or difficult to satisfy than when
originally imposed or last amended as the case may be.  

	2.3.3 		The
Plan Committee may vary the Performance Conditions to apply in respect of Awards to be
made in calendar years falling after 2001 PROVIDED THAT  

			(a) 		such
varied Performance Conditions are, in the reasonable opinion of the Plan Committee, not
materially more favourable to the participants than the Performance Conditions specified
in the First Schedule hereto; and 

			(b) 		any
such variation will be disclosed in the Company’s annual report and accounts for the
year in which Awards subject to such varied Performance Conditions are first granted. 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	2.3.4 		Awards
made to Eligible Employees who are Directors at the Date of Grant shall be made by
Reuters ESOT No.II or any successor Trust under which Directors are beneficiaries. Awards
made to non Directors may be made by any Trust.  

	2.2.5 		For
the avoidance of doubt Awards made prior to 25 April 2001 shall be subject to the
Performance Condition specified in the second part of the Schedule hereto (being the
Performance Conditions specified in the Rules as adopted in December 1997).  

	2.4 		An
Option may be granted subject to a condition that the Participant enter into an NI
Election.  

	2.5 		Any
Award may be renounced in whole or in part by the Participant by completing and returning
the appropriate Form of Renunciation together with the Award Certificate to the Company
or at its direction within 90 days of the Date of Grant or such other period as may be
specified by the Plan Committee at the Date of Grant in which case the Award shall for
all purposes be taken never to have been granted.  

	2.6 		Where
the circumstances noted in Rule 5.5 apply, New Awards may be granted in consideration for
the release of Subsisting Awards granted under the Plan. Such New Awards are deemed to be
equivalent to the old Awards and to have been granted within the terms of this Plan.  

	2.7 		Subject
to the proviso to this Rule 2.7 no Award may be transferred, assigned or charged and
any purported transfer, assignment or charge shall be void ab initio. Each Award
Certificate shall carry a statement to this effect. For the avoidance of doubt, this Rule
2.7 shall not prevent the Award of a deceased Participant being Released to or exercised
by (as the case may be) his personal representative(s) within the terms of these Rules.
Provided that the Trustee and the Plan Committee may agree that a particular Award is
capable of being transferred and, in giving any such agreement, the Trustees and the Plan
Committee may also specify the person or category of persons to whom the Participant may
transfer the Award and the terms on which it is capable of being transferred, including
terms to ensure that any transferee of the Award agrees to be bound by the terms of these
Rules and terms to prohibit any further transfer by that transferee of the Awards in
question. 

	2.8 		Awards
shall be granted by the relevant Trustee to Eligible Employees by deed. A Letter of Grant
and an Award Certificate evidencing the grant shall be despatched as soon as practicable
after the Date of Grant to each Participant. The Award Certificate and the Letter of
Grant shall specify the Date of Grant, the number of Shares subject to the Award, the
Performance Condition, whether the Award is subject to a Restricted Period and
whether (in the case of an Option) the Award is of a Bonus Option or a Standard Option
and, in the case of the former, the Exercise Price.  

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	2.9 		All
Awards made to Eligible Employees who are Directors at the Date of Grant shall be
subject to a Restricted Period. Other Awards may, in the discretion of the Plan
Committee, be made subject to a Restricted Period.  

	2.10 		Awards
may be granted by the Trustee only with the prior approval of the Plan Committee.  

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	3 		Vesting
and Deferral of Vesting  

	3.1 		An
Award shall Vest in accordance with and to the extent permitted under the Performance
Condition over the applicable Measurement Period. The Plan Committee will as soon as
practicable after the end of each relevant Measurement Period send to Participants
details of the extent to which (if at all) Awards would, subject to Rule 3.2 and/or Rule
3.3, Vest.  

	3.2 		If
an Award does not Vest or Vest in full by reference to the First Measurement Period the
Trustee, after consultation with the Plan Committee, may resolve to permit the deferral
of Vesting. Where deferral is permitted the Participant may, within 30 days of receiving
notification of the extent to which the Award would otherwise have Vested, elect to defer
Vesting by signing and returning a Deferral Notice to the Trustees in which case no
Vesting shall take place or be deemed to take place as at the end of the First
Measurement Period and the Performance Condition shall then be applied over the whole of
the Second Measurement Period.  

	3.3 		If
an Award would not Vest or Vest in full by reference to the Second Measurement Period
then, subject to the same consent as required under Rule 3.2 above, a Participant may
make a further election to defer Vesting on similar terms to those contained in Rule 3.2
and the Performance Condition shall then be applied over the whole of the Final
Measurement Period.  

	3.4 		No
deferral of the Vesting of an Award is permitted in respect of a period after the Final
Measurement Period. 

	3.5 		No
fraction of a Share shall be included in any Award which has Vested and any fraction of a
share which, but for this Rule 3.5, would be included in any Vested Award shall be
excluded from the relevant Award. In the event that the amount of any Linked Bonus is not
a whole number of pounds sterling it shall be rounded down to the nearest whole pound.  

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	4 		Exercise
of Options, Transfer of Share Awards and Dividend Equivalent Shares  

	4.1 		Subject
to each of the succeeding sections of this Rule 4, Rule 5 and Rule 7 below  

	4.1.1 		a
Subsisting Option to the extent Vested may be exercised in whole or in part by the
Participant or, if deceased, by his personal representatives on or after its Release
Date;  

	4.1.2 		the
Shares subject to a Subsisting Share Award to the extent Vested shall be transferred
following the Release Date to the Participant in accordance with Rule 7.  

	4.2 		A
Subsisting Award (whether a Share Award or an Option) which has not yet Vested shall
lapse on the Participant ceasing to be a Director or employee of any Group Company, (so
as to hold no office or employment with any Group Company) for any reason unless the Plan
Committee shall, prior to such cessation or within six months thereafter, otherwise
determine. In making such determination the Plan Committee shall with the consent of the
Trustee specify whether the whole or part of such Award shall Vest, provided that no such
determination shall be made in the event of such cessation being as a result of dismissal
for cause.  

	4.2.1 		In
the case of cessation due to death, if and to the extent that the Plan Committee has
exercised its discretion to permit Vesting in whole or in part, the Award of the deceased
Participant shall, to the extent Vested, be Released forthwith, whether or not that
Award was originally subject to a Restricted Period.  

	4.2.2 		In
the case of cessations otherwise than on death, if the Plan Committee has exercised its
discretion to permit Vesting in whole or in part, the Vested part of the Award shall not
be Released until the end of the Restricted Period (if any).  

	4.3 		An
Award which has not Vested in accordance with its normal Vesting requirements or Rule 4.2
above or such part thereof as shall not have so Vested shall lapse on the earliest of the
following dates:  

	4.3.1 		the
surrender of the Award by the Award Holder;  

	4.3.2 		the
date falling six months after the Participant ceases for any reason to be a Director or
employee of any Group Company (so as to hold no office or employment with any Group
Company) unless the Plan Committee has exercised its discretion under Rule 4.2 above,
provided  

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

			(a) 		that
if the Plan Committee has specified that an Award shall Vest in part only then the
balance of the Award shall forthwith lapse as from the date of such specification even if
that date falls before the date falling 6 months after the cessation; and 

			(b) 		that
during such period of six months from cessation or until the Plan Committee has
determined whether or not it will exercise its discretion if earlier, the relevant Award
shall not be capable of Vesting other than pursuant to an exercise of such discretion;
and 

	4.3.3 		the
date of lapse determined in accordance with Rule 5.  

	4.4 		A
Vested Subsisting Award or such part thereof as shall have Vested (including an
accelerated Vesting under Rule 4.2) shall lapse on the earliest of the following:  

	4.4.1 		the
surrender of that Award by the Participant;  

	4.4.2 		in
the case of an Option, the seventh anniversary of the Date of Grant or such earlier date
specified at the Date of Grant;       

	4.4.3 		in
the case of an Option, the first anniversary of the Participant’s death or at the
end of the six month period beginning on the later of:  

			(a) 		the
date of cessation of the Participant’s office or employment with any Group Company
(so as to hold no office or employment with any Group Company) for any reason other than
death or dismissal for cause; and 

			(b) 		the
Release Date

	 	
PROVIDED
that if the lapse date so determined would be a date later than the seventh anniversary
of its Date of Grant, lapse shall occur on such seventh anniversary; 

	4.4.4 		on
the date whether before or after the Release Date that a Participant ceases to be a
Director and/or employee of any Group Company (so as to hold no office or employment with
any Group Company) as a result of being dismissed for cause. For the purposes of this
Plan a statement by the Plan Committee that a Participant has been dismissed for cause
(including dishonesty or gross misconduct) shall be conclusive; and  

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	4.4.5 		the
date of lapse determined in accordance with Rule 5. 

	4.5		In
the event of the lapse of an Award in whole or in part any entitlement or contingent
entitlement to related Dividend Equivalent Shares in respect thereof or the lapsed part
thereof shall likewise lapse. 

	4.6		Rules
4.7 to Rule 4.8 relating to Dividend Equivalent Shares apply to any Award made after 24
April 2001 which is subject to a Restricted Period. 

	4.7		Following
the Release of any Share Award or the exercise of any Option (as the case may be) a
Participant shall become entitled on transfer or exercise respectively to receive,
for no further consideration, a transfer of Dividend Equivalent Shares, the number of
such Dividend Equivalent Shares being calculated in accordance with Rule 4.8.1. 

	4.8		For
the purposes of this Rule 4.8 the expression the “Relevant Shares“means on any
occasion of transfer or exercise (as the case may be) the number of Shares which are to
be transferred or over which the Participant has validly exercised his Option on that
occasion. 

	4.8.1		The
Dividend Equivalent Shares due to a Participant in respect of an Award shall be computed: 

			(a)		by
calculating, in respect of each occasion on which the Company paid a dividend in the
period (“the Dividend Equivalent Period”) between 1 January in the
calendar year in which the Vesting of the Award took place and the Release Date,
the amount of gross dividend which would have been received by the Participant had
he been a shareholder in respect of the Relevant Shares on each such relevant dividend
record date;

			(b)		converting
the amount calculated under 4.8.1(a) above in respect of each dividend payment into a
notional number of Shares by dividing that amount by the Market Value of a Share
as at the relevant dividend payment date (rounding down to the nearest whole
number of Shares); and

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

			(c)		adding
together the notional number of Shares derived under 4.8.1(b) in respect of each dividend
payment date falling during the Dividend Equivalent Period, the sum thereof being
the number of Dividend Equivalent Shares to which the Participant is entitled on
that occasion of transfer or exercise.

	4.8.2		Any
Dividend Equivalent Shares to be transferred to a Participant shall (subject to Rule 7.6)
be transferred together with the Relevant Shares. 

	4.8.3 		For
the avoidance of any doubt an entitlement to a transfer of Dividend Equivalent Shares in
respect of an Award which is an Option will only arise in respect of the Shares over
which such Award is exercised. 

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	5 		Trade
sales, Reconstructions, Liquidations and Option Exchanges 

	5.1 		If
any person obtains Control of the Company as a result of making:  

			(a) 		an
offer (whether a general offer or not) to acquire the whole of the issued share capital
of the Company (other than that which is already owned by him) which is unconditional or
which is made on a condition such that if it is satisfied the person making the offer
will have Control of the Company; or 

			(b) 		an
offer (whether a general offer or not) to acquire all the shares (other than shares which
are already owned by him) in the Company which are of the same class as Shares subject to
a Subsisting Award 

	 	
then,
subject to Rule 5.5, the Plan Committee shall notify all Participants as soon as is
practicable of the offer in accordance with Rule 8.5. and 

	5.1.1 		all
Subsisting Options which have Vested (whether they are subject to a
Restricted Period or not) may be exercised from 21 days after the date of the receipt of
that notification up to the expiry of a period ending on the earlier of:  

			(a) 		six
months from the time when the person making the offer has obtained Control of the Company
and any condition subject to which the offer is made has been satisfied; and 

			(b) 		the
date of service of a notice to minority shareholders under Sections 428 to 430F of the
Companies Act 1985 of the intention to exercise rights under such sections. 

	 	
To
the extent that any Subsisting Option is unexercised or has not been exchanged for a New
Option in accordance with Rule 5.6 at the end of such period, it shall thereupon lapse;
and 

	5.1.2 		all
Shares subject to Subsisting Share Awards which have Vested (whether they remain subject
to a Restricted Period or not) shall be transferred to the Participants.  

	5.2 		If
a Compromise or Arrangement in relation to the Company takes place then, subject to Rule
5.5:  

	5.2.1 		all
Subsisting Options which have Vested (whether they are subject to a Restricted
Period or not) may be exercised from 21 days after the date of Court sanction up to the
expiry of a period of six months after that date. To the extent that any Subsisting
Option remains unexercised or has not been exchanged for a New Option in accordance with
Rule 5.4 at the end of such period it shall thereupon lapse; 

	

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Long Term Incentive Plan Rules

			 

	5.2.2 		all
Shares subject to Subsisting Share Awards which have Vested (whether they are subject
to a Restricted Period or not) shall be transferred to the Participants forthwith.  

	5.3 		All
Subsisting Awards (Options and Share Awards) which have not Vested at the date of an
event specified in Rules 5.1 or 5.2 (“the Relevant Event” being the date of the
offer or the date the Court sanctions the Compromise or Arrangement), or notice under
Rule 5.8 shall, subject to Rule 5.5, lapse and be forfeited unless the Plan Committee
with the consent of the Trustee otherwise determines (taking account of the length of the
period since the Date of Grant and the performance of the Company over that period). In
the event of such determination and subject to Rule 5.5:  

	5.3.1 		Options
may be exercised (whether or not they were otherwise subject to a Restricted Period)
during any period following the particular Relevant Event or Rule 5.8 notice in which an
Option which had Vested prior to the Relevant Event or Rule 8.8 notice could have been
exercised and at the end of that period the Option shall lapse; and/or  

	5.3.2 		a
Share Award which has been the subject of a determination in accordance with this Rule
5.3 shall be transferred to the relevant Participant forthwith.  

	5.4 		If
any person becomes bound or entitled to acquire Shares in the Company under sections 428
to 430 of the Companies Act 1985 and serves notice of his intention to exercise such
rights, then all Subsisting Awards (Options and Share Awards) whether Vested or not shall
thereupon lapse and be forfeited as from the date of such notice.  

	5.5 		Notwithstanding
Rules 5.1 and 5.2 if, following the date of a Relevant Event, the Plan Committee procures
that all Subsisting Awards (including any Subsisting Awards which have not Vested at the
date of that Relevant Event) can be exchanged pursuant to Rule 5.6, the Plan Committee
may, in its discretion, determine by written resolution that:  

	5.5.1 		Subsisting
Options do not become exercisable and Shares subject to Subsisting Share Awards do not
become transferable as a result of the Relevant Event and any Subsisting Option which is
already exercisable ceases to be exercisable as from the Relevant Event; and 

	

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Long Term Incentive Plan Rules

	5.5.2 		that
all Subsisting Awards shall be released in consideration of the Grant of a New Award in
accordance with Rules 5.6 and 5.7  

	 	
Provided
that if the company which is the Acquiring Company in respect of the Relevant Event fails
to grant or to make a binding contractual commitment to grant the New Awards pursuant to
Rule 5.6 within 40 days after the Relevant Event such resolution of the Plan Committee
will cease to be effective and all Vested Subsisting Options will be exercisable and
Shares subject to Subsisting Vested Share Awards shall be transferred pursuant to Rule
5.1 or 5.2 (as the case may be) and Rule 5.3 shall apply as if such Rule 5.5
determination had not been made. 

	5.6 		If,
as a result of the events specified in Rules 5.1 or 5.2 the Plan Committee has required
the release of a Subsisting Award in consideration of the grant of a New Award or a
company has obtained Control of the Company, the Participant may, and in the case of a
Plan Committee resolution under Rule 5.5 shall, if that other company (“the
Acquiring Company”) so agrees, release any Subsisting Award (including any
Subsisting Awards which are the subject of a Rule 5.3 determination) he holds in
consideration of the grant of a New Award by the Acquiring Company, and the following
shall apply:  

	5.6.1 		a
New Award shall be evidenced by an Award Certificate which shall import the relevant
provisions of these Rules;  

	5.6.2 		a
New Award shall, for all other purposes of this Plan, be treated as having been acquired
at the same time as the corresponding released Award.  

	5.7 		For
the purpose of any application of the provisions of this Plan following a release of a
Subsisting Award and the grant of a New Award all the Rules of this Plan shall apply
mutatis mutandis to such New Award subject only to such amendments as the Plan Committee
shall consider are necessary or appropriate to reflect the change in identity of the
company over whose shares the New Award subsists and similar consequential changes. For
the avoidance of doubt, following a determination under Rule 5.5, a Participant’s
Award shall have the same Vested or unVested status immediately following the release and
new grant as the corresponding Awards released by that Participant, any Restricted
Period to which the Award was subject will continue to apply and any determination made
by the Plan Committee to accelerate and/or to permit exercise or Release under Rules 5.1
to 5.3 shall be deemed not to have been made.  

	

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Long Term Incentive Plan Rules

	5.8 		If
notice is duly given of a general meeting at which a resolution will be proposed for the
voluntary winding-up of the Company:  

	5.8.1 		all
Subsisting Options which have Vested (whether they are subject to a Restricted
Period or not) may be exercised in whole or in part at the date the resolution is passed
(but so that an exercise hereunder shall be conditional upon such resolution being
passed) and at any time thereafter until the resolution is duly passed or defeated or the
general meeting is concluded or adjourned, whichever shall first occur. Immediately after
any such resolution is passed any Subsisting Options shall, to the extent that they are
unexercised, thereupon lapse; and  

	5.8.2 		all
Shares subject to a Subsisting Share Award which have Vested (whether they are subject
to a Restricted Period or not) shall be transferred to the Participant upon such
resolution being passed.  

	5.9 		For
the purpose of this Rule 5 other than Rule 5.6 a person shall be deemed to have obtained
Control of a company if he and others acting in concert with him have together obtained
Control of it.  

	5.10 		The
exercise of an Option or the transfer of Shares subject to a Share Award pursuant to the
preceding provisions of this Rule 5 shall be subject to the provisions of Rule 7 below.  

	5.11 		A
New Award shall not be exercisable or transferable by virtue of the event on which it was
granted. 

	

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Long Term Incentive Plan Rules

	6 		Variation
of Share Capital 

	6.1 		In
the event of any variation of the share capital of the Company, including, but without
prejudice to the generality of the preceding words, any
demerger (whether qualifying or not), capitalisation or rights issue or any
consolidation, sub-division or reduction of capital the number of Shares subject to any
Subsisting Award and in the case of a Bonus Option the Exercise Price may be adjusted
(including retrospective adjustments) by the Plan Committee with the consent of the
Trustee.  

	6.2 		Such
adjustment shall be deemed to be effective, from the record date at which the respective
variation applied to other shares of the same class as the Shares. Any Options exercised
or Shares under a Share Award transferred within that period shall be treated as
exercised with the benefit of the variation.  

	6.3 		The
Plan Committee shall take such steps as it considers necessary to notify Participants of
any adjustment made under Rule 6.1 and to call in, cancel, endorse, issue or
reissue any Award Certificate consequent upon such adjustment.  

	

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	kpmg	Reuters Group PLC
Long Term Incentive Plan Rules

	7 		Manner
of Exercise of Options and transfer of shares subject to Share Awards 

	7.1.1 		An
Option shall be exercised in whole or in part (provided that no partial exercise is
permitted in respect of less than 100 shares) by the Participant or, as the case may be,
his personal representatives giving notice in writing to the Company or its agent by the
Notice of Exercise accompanied by the appropriate payment and the relevant Certificate
and shall be effective on the date of the receipt of the appropriate payment and
paperwork by the Company or its agent.  

	7.1.2 		On
the exercise of a Bonus Option, an amount (in cash or specie) equivalent to the number of
Shares in respect of which the Bonus Option is then exercised multiplied by the Exercise
Price shall be immediately payable (subject to all deductions in respect of the Tax
Liability attributable to the Linked Bonus) by the Trustee to the Participant.  

	7.1.3 		A
Participant rather than receiving actual payment of a Linked Bonus, may elect and
authorise the Trustee to apply the net amount of the same as part payment of the
aggregate Exercise Price in respect of the Option to which it is linked. If such an
election is made an Option will be deemed to have been duly exercised for the purposes of
Rule 7.1.1 on receipt of such election together with a cheque or banker’s draft or
other method of payment acceptable to the Trustee for the balance of the aggregate
Exercise Price required in respect of the number of Shares over which that Option is then
being exercised.  

	7.1.4 		For
the avoidance of doubt, in the case of a Bonus Option a Linked Bonus will only become
payable if and to the extent that the Bonus Option is exercised and then only to that
extent. In no circumstances will a Linked Bonus or any part thereof become payable
without an exercise of the Bonus Option or similar part thereof.  

	7.2 		Subject
to Rule 7.6 where an Option is exercised the Shares subject thereto together with any related Dividend Equivalent Shares shall be transferred
or allotted and issued fully paid to or as directed by the Participant within 30 days of
the date of exercise (or, if such transfer or allotment in such period would be
prohibited by the Model Code, at the earliest practicable time after such prohibition is
lifted) and the Trustee shall arrange for the delivery of a definitive share certificate
or other evidence of title in respect thereof.  

	7.3 		Subject
to Rule 7.6 on the Release of a Share Award to a Participant the number of Shares subject
thereto which have Vested together with any related Dividend Equivalent Shares shall
be transferred or allotted and issued fully paid to or as directed by the Participant
within 30 days of the Release Date (or, if such transfer or allotment in such period
would be prohibited by the Model Code at the earliest practicable time after such
prohibition is lifted) and the Trustee shall arrange for the delivery of a definitive
share certificate or other evidence of title in respect thereof.  

	

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Long Term Incentive Plan Rules

	7.4 		Save
for any rights determined by reference to a record date preceding the date of allotment
or transfer, such Shares shall rank pari passu with the other shares of the same class as
Shares then in issue.  

	7.5 		The
Company shall apply for Shares in respect of an Award which has been Released or as the
case may be Released and exercised to be admitted to listing, if they are not so admitted
already.  

	7.6 		If,
in respect of any Participant any Group Company or third party shall be required by the
law of any jurisdiction to deduct or withhold any Tax Liability, then in any such case as
specified by the Participant either:  

	7.6.1 		the
Participant shall grant to the Company the irrevocable authority, as agent of the
Participant and on his behalf, to sell and/or retain and sell subsequently and/or procure
the sale of such number of Shares subject to the Award as is sufficient to realise net
proceeds sufficient to enable the relevant Group Company or third party (as the case may
be) to account for the Tax Liability and, the Shares issued or transferred to the
Participant in respect of the Award shall be reduced by the number of such Shares as have
been sold or retained as mentioned above; or  

	7.6.2 		the
Participant shall pay to the Company or at its direction in pounds sterling or in such
other currency as may be required by the Company, (whether by cheque or by banker’s
draft) the amount necessary to satisfy the Tax Liability.  

	7.7 		For
the avoidance of doubt: 

	7.7.1 		where
in relation to Rule 7.6 the Participant opts in accordance with Rule 7.6.1 the Company
shall account to the relevant Group Company or third party (as the case may be) with the
net proceeds of sale of the Shares in order to enable the Tax Liability to be settled and
if, following such sale, there shall be any balance of the proceeds of sale not so
required, such balance shall be paid by the Company or at its direction to the
Participant for his own use and benefit absolutely;  

	

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Long Term Incentive Plan Rules

	7.7.2 		if
the Participant fails to specify either Rule 7.6.1 or Rule 7.6.2 or, if having
specified Rule 7.6.2 he fails to make the required payment within 15 days of the date on
which the Tax Liability arose, he shall be deemed for all purposes to have given an
irrevocable authority within Rule 7.6.1.  

	7.8 		A
Participant may elect at the time of Release (in the case of a Share Award) or exercise
(in the case of an Option) to receive American Depository Shares (“ADS”)
instead of Shares. If a Participant makes such an election he will be required prior to
or within such period after the conversion of shares into ADS as shall be specified by
the Company to account to the Trustee for any Stamp Duty Reserve Tax payable in respect
of the Shares to which the election applies and shall be deemed to have authorised his
employing company to deduct from his net after tax compensation each month an amount (up
to the whole of such net compensation) to enable such liability to be reimbursed to the
Trustee. Upon satisfaction of the Stamp Duty Reserve Tax or other amounts payable in
respect of any other Tax Liability by the Participant, the Trustee shall arrange for the
deposit of the number of Shares in respect of which the election has been made with the
Depositary and will arrange for the delivery of an American Depositary Receipt (“ADR”)
in respect of such ADSs which the Participant has elected to receive provided that if the
number of Shares over which a valid election to receive ADSs is made is not an integral
multiple of six (or such other number of Shares as are comprised in an ADS from time to
time) any excess Shares shall be kept by the Trustee for the benefit of the Trust.  

	7.9 		In
any case where a Participant exercises an Option in part, the Participant will be sent a
new Award Certificate showing the balance of the Option (including where applicable, the
balance of any Linked Bonus and the balance of any related Dividend Equivalent Shares)
which remains unexercised.  

	

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Long Term Incentive Plan Rules

	8 		Administration
and Amendment  

	8.1 		The
Plan shall be administered by the Plan Committee whose decision shall be final.  

	8.2 		Participants
shall not be entitled to:  

	8.2.1 		receive
copies of accounts, circulars or notices sent to holders of Shares;  

	8.2.2 		exercise
voting rights; or 

	8.2.3 		receive
dividends,  

	 	
in
respect of Shares which have not yet been issued or transferred to such Participants in
accordance with these Rules. 

	8.3 		The
Board may from time to time amend these Rules provided that: 

	8.3.1 		no
amendment shall be effective which would materially prejudice the interests of
Participants in relation to Awards already granted to them unless such prior consent or
sanction of Participants is obtained as would be required under the provisions for the
alteration of class rights contained in the Articles of Association of the Company for
the time being if the Shares to be allotted or transferred in respect of Subsisting
Awards constituted a separate but single class of shares and such Shares were entitled to
such right;  

	8.3.2 		the
provisions relating to: 

			(a) 		Participants;
and

			(b) 		the
basis for determining a Participant’s entitlement under the Plan, the terms of such
entitlement and the provisions for the adjustment of the same under the terms of Rule 6; 

	 	
cannot
be altered to the advantage of Participants without the prior approval of the Company in
general meeting (except for minor amendments to benefit the administration of the Plan,
to take account of a change in legislation or to obtain or maintain favourable tax,
exchange control or regulatory treatment for Participants, or the Company or any Group
Company); 

	

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Long Term Incentive Plan Rules

	8.4 		The
Board may, subject to Rules 8.3.1 and 8.3.2 create sub-plans to this Plan in which it may
make such amendments to the Rules as it considers necessary or desirable to operate the
Plan in any jurisdictions in which Eligible Employees are situated and may implement such
sub-plans in the form of schedules to the Plan applicable to the specified jurisdiction.  

	8.5 		The
cost of establishing and operating the Plan shall be borne by the Group Companies which
employ the Participants in such proportions as the Board shall determine.  

	8.6 		Any
notice or other communication under or in connection with the Plan may be given by the
Company or the Trustee either personally or by post or fax or e-mail or intranet, and to
the Company or the Trustee either personally or by post or fax or e-mail to the Secretary
of the Company or the Trustee; items sent by post shall be pre-paid and shall in the case
of notices or communications to the Company or the Trustee be treated as received on the
day actually received by the Company or the Trustee and in the case of notices from the
Company or the Trustee shall be deemed to have been received 48 hours after posting.  

	8.7 		The
Plan Committee may exercise its discretion where it considers that it is necessary or
desirable to do so, to provide that such Eligible Employees so designated by the Plan
Committee shall receive awards which entitle them to receive a cash payment instead of
Shares. Such awards will be granted on substantially the same terms as Share Awards (save
that there shall be no entitlement to receive Shares) subject to such modifications as
considered appropriate by the Plan Committee.  

	8.8 		The
Board may determine at any time that no further Awards be granted and may from time to
time modify or at any time suspend or terminate the Plan (but without prejudice to Awards
already granted).  

	8.9 		The
limitations in the Trusts in relation to the number of Shares which may be made available
in respect of any employees’ share scheme adopted by the Company shall as appropriate
apply to the Plan to the intent that the Company acknowledges that the Trustees of the
Trusts may not in aggregate hold at any one time such number of the Company’s issued
ordinary share capital as would exceed ten per cent of the Company’s
issued ordinary share capital.  

	

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Long Term Incentive Plan Rules

			 

	9 		Miscellaneous 

	9.1		The
rights and obligations of any individual under the terms of his office or employment with
any Group Company shall not, except as specifically provided under the Plan, be affected
by his participation in the Plan or any right which he may have to participate therein,
and an individual who participates therein shall waive any and all rights to compensation
or damages in consequence of the termination of his office or employment for any reason
whatsoever insofar as those rights arise or may arise from his ceasing to have rights
under the Plan as a result of such termination.  

	9.2		The
existence of Awards (whether Share Awards or Options) shall not affect in any way the
right or power of the Company or its shareholders to make or authorise any or all
adjustments, recapitalisation, reorganisations, reductions of capital, purchase or
redemption of its own shares or other changes in the Company’s capital structure or
its business, or any merger or consolidation of the Company, or any issue of bonds,
debentures, preferred or prior preference stock ahead of or convertible into, or
otherwise affecting the Shares or the rights thereof, or the dissolution or liquidation
of the Company, or any sale or transfer of all or any part of its assets or business, or
any other corporate act or proceeding, whether of a similar character or otherwise.  

	9.3		Neither
the grant of an Award nor any benefit which may accrue to a Participant in respect of an
Award shall form part of that Participant’s pensionable remuneration for the
purposes of any pension scheme or similar arrangement which may be operated by any Group
Company.  

	

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Long Term Incentive Plan Rules

	

SCHEDULE

PERFORMANCE CONDITION

	1. 		In
Parts I and II of this Schedule the following words and expressions shall have the
meanings set out below.  

	  	 	“Comparator Group”	 	the companies comprising all the members of the FTSE 100 (including the Company) on the Benchmark Date	 
	  	 
	  	 	“Benchmark Date”	 	in respect of an Award the first day of the First Measurement Period in relation to that Award on which the London Stock Exchange is open for trading	 
	  	 
	  	 	“Measurement Period”	 	the First Measurement Period or any successive Measurement Period as the case may be	 
	  	 
	  	 	“Total shareholder return” (“TSR”)	 	in relation to a company, its total shareholder return calculated in accordance with these Rules	 
	  	 
	  	 	“TSR ranking” 	 	in relation to any company in the Comparator Group, its ranking in terms of TSR over the Measurement Period.	 

	2	 	 	(a)		The extent to which an Award shall Vest at the end of any Measurement Period shall be the percentage of Shares (rounded down to the nearest whole Share) determined in accordance with the table in Part I of this Schedule (in respect of Awards made after 24 April 2001) or the table in Part II of this Schedule (in respect of Awards made prior to that date) (as varied by the Plan Committee from time to time) with the companies in the Comparator Group being listed in order so that the member thereof with the highest TSR is placed at the top of such table. 

	

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Long Term Incentive Plan Rules

			(b) 		No
fraction shall be included in any Award which has vested and any fraction of a Share
which but for this provision would be included in any Vested Award shall be excluded. 

			(c) 		The
number of positions in the TSR Ranking may be varied by the Plan Committee from time to
time to take account of any merger, take-over, reconstruction or demerger or other event
referred to in 4 below. The maximum percentages of an Award for each TSR Ranking will
then be adjusted pro rata. 

	3. 		The
TSR of the Company and each member of the Comparator Group over any Measurement Period
shall be the internal rate of return calculated for the amounts determined in accordance
with the provisions below:  

	 	
Inflows

			•		The
gross dividends per share paid by the relevant company during the relevant Measurement
Period and these shall be deemed to have been inflows on the last day of the month during
which the relevant shares go ex-dividend. 

			•		The
average of the daily closing mid-market prices of the relevant company’s shares over
the calendar year expiring on the last day of the relevant Measurement Period 

	 	
Outflows

			•		The
average of the daily closing mid-market prices of the relevant company’s shares over
the calendar year ending on 31 December immediately preceding the Benchmark Date 

			•		Any
sum paid per share to take up new rights to shares (which shall be deemed to have been
paid on the date on which the Shares become ex-rights) 

	 	
subject
to such adjustment to Inflows and Outflows as the Plan Committee consider appropriate to
reflect any variation of share capital or any merger, take-over, reconstruction or
demerger of or by any member of the Comparator Group or upon any other events which the
Plan Committee consider may materially distort the above calculations. 

	

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Long Term Incentive Plan Rules

	
The tables referred to above are as
follows:- 

Part I Awards made
after 24 April 2001

		TSR Ranking of the Company
Compared to the Comparator
Group over the relevant
Measurement Period				Maximum percentage of Award
which Vests

                       %
	  
	Top Quartile
(1st to 25th ranking)				100

	
	 
	 	 	26th	 	 	 	96	 	 
	 	 	27th	 	 	 	92	 	 
	 	 	28th	 	 	 	88	 
	 	 	29th	 	 	 	84	 	 
	 	 	30th	 	 	 	80	 	 
	 	 	31st	 	 	 	76	 	 
	 	 	32nd	 	 	 	72	 	 
	 	 	33rd	 	 	 	68	 	 
	 	 	34th	 	 	 	64	 	 
	 	 	35th	 	 	 	60	 	 
	 	 	36th	 	 	 	56	 	 
	 	 	37th	 	 	 	52	 	 
	 	 	38th	 	 	 	48	 	 
	 	 	39th	 	 	 	44	 	 
	 	 	40th	 	 	 	40	 	 
	 	 	41st	 	 	 	36	 	 
	 	 	42nd	 	 	 	32	 	 
	 	 	43rd	 	 	 	28	 	 
	 	 	44th	 	 	 	24	 	 
	 	 	45th	 	 	 	20	 	 
	 	 	46th	 	 	 	16	 	 
	 	 	48th	 	 	 	12	 	 
	 	 	49th	 	 	 	8	 	 
	 	 	50th	 	 	 	4	 	 
	 	 	below 50	 	 	 	Nil	 	 

	

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Long Term Incentive Plan Rules

	

Part II Awards made
after 16 December 1997 and prior to 25 April 2001

		TSR Ranking of the Company
Compared to the Comparator
Group over the relevant
Measurement Period				Maximum percentage of Award
which Vests

                               %
	  
	Top Quartile
(1st to 26th ranking)				100   

	
	  
	 	 	27th	 	 	 	97.5 	 	 
	 	 	28th	 	 	 	95 	 
	 	 	29th	 	 	 	92.5 	 
	 	 	30th	 	 	 	90 	 
	 	 	31st	 	 	 	87.5 	 
	 	 	32nd	 	 	 	85 	 
	 	 	33rd	 	 	 	82.5 	 
	 	 	34th	 	 	 	80 	 
	 	 	35th	 	 	 	77.5 	 
	 	 	36th	 	 	 	75 	 
	 	 	37th	 	 	 	72.5 	 
	 	 	38th	 	 	 	70 	 
	 	 	39th	 	 	 	67.5 	 
	 	 	40th	 	 	 	65 	 
	 	 	41st	 	 	 	62.5 	 
	 	 	42nd	 	 	 	60 	 
	 	 	43rd	 	 	 	37.5 	 
	 	 	44th	 	 	 	55 	 
	 	 	45th	 	 	 	52.5 	 
	 	 	46th	 	 	 	50 	 
	 	 	47th	 	 	 	47.5	 	 
	 	 	48th	 	 	 	45	 	 
	 	 	49th	 	 	 	42.5	 	 
	 	 	50th	 	 	 	40	 	 
	 	 	51st	 	 	 	37.5	 	 
	 	 	52nd	 	 	 	35	 	 
	 	 	53rd	 	 	 	32.5	 	 
	 	 	54th	 	 	 	30	 	 
	 	 	55th	 	 	 	27.5	 	 
	 	 	56th	 	 	 	25	 	 
	 	 	57th	 	 	 	22.5	 	 
	 	 	58th	 	 	 	20	 	 
	 	 	59th	 	 	 	17.5	 	 
	 	 	60th	 	 	 	15	 	 
	 	 	61st	 	 	 	12.5	 	 
	 	 	62nd	 	 	 	10	 	 
	 	 	63rd	 	 	 	7.5	 	 
	 	 	64th	 	 	 	5	 	 
	 	 	65th	 	 	 	2.5	 	 
	 	 	66th and lower	 	 	 	Nil	 	 

	

 34

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