Document:

Exhibit 4.2

 

PRIVATE AND CONFIDENTIAL

 

DATED

 

11 October 2018

 

JACKSON NATIONAL LIFE INSURANCE COMPANY (1)

 

and

 

Michael I Falcon (2)

 

and

 

PRUDENTIAL PLC (3)

 

 

EXECUTIVE CONTRACT OF EMPLOYMENT

 

 

 

PARTIES

 

(1)             JACKSON NATIONAL LIFE COMPANY, a Michigan Corporation whose address is 1 Corporate Way, Lansing, Michigan, 48951 (the “Company”) and

 

(2)             Michael I Falcon  of c/o Four Seasons Place, 8 Finance Street, Suite 5039, Hong Kong (the “Executive”)

 

(3)             PRUDENTIAL PLC of Laurence Pountney Hill, London, EC4R 0HH (“Prudential”)

 

1.                  DEFINITIONS

 

In this Agreement unless the context otherwise requires:-

 

“Board” means the Board of Directors of Prudential;

 

“Commencement Date” means 7 January 2019 or other such date as agreed between the parties;

 

“Prudential Group” means Prudential and each of its subsidiaries where “subsidiaries” is defined by section 1159 of the Companies Act 2006.

 

2.                  APPOINTMENT

 

(1)             The Company shall employ the Executive and the Executive shall serve the Company as Chairman and Chief Executive Officer of North American Business Unit and in other such capacity as may be agreed (“the Appointment”).  The Executive shall report to the Group Chief Executive.

 

(2)             The Appointment is deemed to be effective from the Commencement Date and shall, without prejudice to the provisions of clause 9(2), continue unless and until terminated by the Company giving to the Executive not less than 12 months’ prior written notice to expire at any time or the Executive giving to the Company not less than 12 months’ prior written notice to expire at any time.

 

(3)             The Company does not operate a fixed retirement age but, subject to the rules of any Company Pension Scheme of which the Executive is a member, the Executive may give the Company notice to voluntarily retire at any time from the age of 55.

 

3.                  DUTIES OF THE EXECUTIVE

 

(1)             During the Appointment the Executive shall use his best endeavors to promote the interests of the Company and each company in the Prudential Group and shall carry out his duties with all due expertise, diligence and technical skill, giving at all times the full benefit of his knowledge and experience.

 

(2)             The Executive shall perform such duties and exercise such powers in relation to the conduct and management of the affairs of the Prudential Group as may from time to time reasonably be assigned or communicated to or vested in him by the Board consistent with the nature of the Appointment.

 

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(3)             Where notice of termination has been served by either the Company or the Executive whether in accordance with clause 2(2) or otherwise, the Company shall be under no obligation to provide work for or assign any duties to the Executive for the whole or any part of the relevant notice period and may require his:

 

(i)             not to attend any premises of the Company or any other company in the Prudential Group; and/or

 

(ii)          to resign with immediate effect from any offices he holds with the Company or any other company in the Prudential Group (and any related trusteeships); and/or

 

(iii)       to refrain from business contact with any customers, clients or employees of the Company or any other company in the Prudential Group.

 

For the avoidance of doubt, the Company may appoint another individual to carry out the duties of the Executive during all or part of the notice period. During the notice period, the Executive shall be entitled to the remuneration and benefits due under this Agreement.

 

The provision of clause 4(2) shall remain in full force and effect during any period of suspension under this clause 3(3).  For the avoidance of doubt the Executive will continue to be bound by duties of good faith and fidelity to the Company in any period during which he is not required to attend work.

 

(4)             The Board may also suspend all or any of the Executive’s duties and powers during any period in which the Company and/or the Board is carrying out an investigation into any alleged act or default of the Executive.  Such a suspension shall be on such terms as the Board considers expedient (including a term that the Executive shall not attend at the Company’s premises during such suspension) providing that:

 

(i)             the Board on or before such suspension notifies the Executive in writing of such grounds;

 

(ii)          during such suspension the Executive shall be entitled to the remuneration and benefits due under this Agreement; and

 

(iii)       the Board will endeavor to ensure that no internal or external communications prejudice the outcome of any investigation or the future employment prospects of the Executive.

 

(5)             The Executive shall at all times promptly give to the Company and the Board (in writing if so required) all such information and explanations concerning the affairs of any company within the Prudential Group as the Company or the Board shall reasonably require and of which the Executive is aware.

 

(6)             The Executive shall comply with all instructions and directions from time to time laid down by the Company and/or the Board for senior executives including those rules relating to holding and dealing in the shares of Prudential Group.  The Executive shall also comply with the requirements laid down by all external regulatory bodies.

 

(7)             The Executive shall allow the Company supervised access on reasonable notice to all or any of the properties in which he resides from time to time in order for the Company to assess, and, if the Company considers it desirable, to carry out at its own expense those security measures which the Company may consider advisable for the protection of the Executive.

 

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4.                  PERFORMANCE OF DUTIES

 

(1)             During the continuance of the Appointment, the Executive shall (unless prevented by ill-health or accident or otherwise directed by the Board) devote such of his time, attention and abilities to the business and interests of the Company or any other company in the Prudential Group as the proper performance of his duties hereunder demands.

 

(2)             The Executive shall not (unless otherwise agreed by the Company and/or the Board) undertake any other business or profession, or be, or become directly or indirectly concerned, or interested in any other business or profession except as holder or beneficial owner, for the purpose only of a passive minority investment, of securities dealt in or on any recognised stock exchange (not exceeding 5 per cent of the total number or value of such securities from time to time in issue).

 

(3)             The principal place of employment for the Executive is to be the Company’s office in Nashville, Tennessee, provided, however, that Executive shall from time to time be required to travel outside the state and the country in the performance of his duties.

 

5.                  REMUNERATION

 

(1)             During the Appointment the Company will pay the Executive an annual salary (“Base Salary”) as separately notified, to accrue from day to day and to be payable by equal monthly instalments in arrears to a bank nominated by the Executive.  The rate of Base Salary shall be subject to periodic review but shall not be reduced without the prior written agreement of the Executive.  The Company reserves the right to withhold or deduct from the Executive’s Base Salary any amount owed by the Executive to the Company or any company in the Prudential Group.

 

(2)             The Executive shall be eligible to be admitted to membership of the 401(k) Jackson Defined Contribution Retirement Plan.   Provision of death in service benefits may be subject to the provision of medical evidence satisfactory to the provider.  The Company reserves the right to amend the 401(k) Jackson Defined Contribution Retirement Plan.

 

(3)             The Executive must notify the Company as early as practicable in the event sickness or other incapacity renders him unable to perform his duties under this Agreement for three or more business days.  .  Subject to production, if requested, of medical certificates satisfactory to the Company, full remuneration will continue to be payable notwithstanding the Executive’s incapacity for work due to sickness or accident (unless and until the Appointment shall be determined under any terms hereof) for the first six months of such incapacity.  During this period of incapacity, the Company shall only give notice terminating the Appointment on grounds of redundancy, falling within section 139 of The Employment Rights Act 1996 or those circumstances as set out in clause 9(2). Thereafter the Company may at its discretion discontinue the payment of remuneration under this Agreement in which event the rules of the Prudential Staff Long Term Incapacity Scheme as from time to time in force, will apply to the Executive.

 

(4)             If the Executive needs to undergo a medical examination reasonably requested by the Company, the cost of this will be met by the Company and, subject to prior permission from the Executive (not to be unreasonably withheld), the Company’s medical adviser will be entitled to receive a copy of any report produced, to discuss it with the doctor who produced it and to discuss its conclusions with the Company.  The Executive will not unreasonably withhold his consent for such an examination.

 

(5)             If the Executive is incapable of performing his duties by reason of injury sustained wholly or partly as a result of negligence, nuisance or breach of any statutory duty on the part of any third party, only when and to the extent that compensation is recovered for loss of earnings from that

 

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third party by legal action or otherwise in so far as it is not repayable to the Department of Social Security, the Executive shall (insofar as lawful) repay to the Company the amount of any sick pay he has received.

 

(6)             The Executive, and his family will be eligible for US private medical and dental insurance on the same basis as other US employees.  These insurance arrangements may be revised or withdrawn from time to time.

 

(7)             The Executive may be eligible to participate in the remuneration plans available from time to time to senior executives of the Prudential Group (subject to the rules governing the applicability and availability of those benefits generally) which currently include:

 

(a)         the Annual Incentive Plan (“AIP”);

 

(b)         the Jackson Senior Management Bonus Pool; and

 

(c)          long term incentive plans operated by the Group;

 

details of which have been supplied to the Executive.  The remuneration plans are kept under  review and may be altered or withdrawn from time to time.

 

Any benefits under these plans are non-pensionable.

 

(8)             Participation in these remuneration plans is a matter entirely separate from the Executive’s terms and conditions of employment; the Company has no contractual obligation to invite the Executive’s  participation in any plan cycle; and in particular if the Executive’s employment shall terminate for whatever reason (whether lawfully or in breach of contract) he shall not be entitled to any compensation for any loss of any right or benefit or prospective right or benefit under any scheme which he might otherwise have enjoyed whether such compensation is claimed by way of damages for wrongful dismissal or other breach of contract or by way of compensation for loss of office or otherwise.  The Executive will, at all times, be treated in a way consistent with the prevailing Directors’ remuneration policy.

 

(9)             Should the Company withdraw its offer of employment between the date of this contract and the commencement of employment, the Executive shall be entitled to receive a payment equivalent to one year’s salary, twelve months maximum AIP opportunity and an amount equivalent to 10% of the target Jackson Bonus Pool for 2019, to be paid in cash within one month of the date of the offer being withdrawn.

 

6.                  EXPENSES

 

The Company, on production of the relevant receipts and/or invoices, shall reimburse the Executive for all traveling, hotel, entertainment and other out-of-pocket expenses properly incurred by him from time to time in the execution of his duties hereunder in accordance with the relevant rules of the Company for the time being in force.

 

7.                  HOLIDAY

 

The Executive shall be entitled to paid time off for breaks away from work in each calendar year (in addition to local holidays observed by the Company) as the proper performance of his duties hereunder permits and in accordance with the guidelines laid down by the Company from time to time. Under normal circumstances this is not expected to exceed six weeks in any year.

 

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8.                  POST TERMINATION RESTRICTIONS

 

(1)             The Executive undertakes that during the Appointment and (subject to clause 8(2)) for a period of 12 months following the termination of the Appointment (the “Exclusion Period”) he shall not whether on his own account or otherwise and whether directly or indirectly:

 

(a)         solicit, interfere with, endeavor to entice away or induce to leave their employment any director or senior manager who is then or was at the date of termination of the Appointment an employee of or engaged by the Company or any other company within the Prudential Group and with whom the Executive had business dealings during the course of his employment in the 12 month period immediately prior to the termination of the Appointment.  Nothing in this clause shall prohibit the seeking or doing of business not in direct or indirect competition with the business of the Company or any company within the Prudential Group; or

 

(b)         solicit, interfere with or endeavour to or actually entice away from the Company or any company within the Prudential Group business orders, or custom for products or services similar to those being provided by the Company or any company within the Prudential Group from any person, firm or corporation who was at the date of termination of the Appointment, or had been at any time within the year ending on that date, a customer or in the habit of doing business with the Company or any company in the Prudential Group and with whom the Executive was directly concerned in the twelve months before the termination of the Appointment.  Nothing in this clause shall prohibit the seeking or doing of business not in direct or indirect competition with the business of the Company or any company within the Prudential Group; or

 

(c)          carry on, set up, be employed, engaged or interested in a business anywhere in the UK, Europe, US or Asia which is or is about to be in competition with the business of the Company or any company within the Prudential Group as at the date of termination with which the Executive was actively involved during the 12 month period immediately prior to termination of the Appointment.  It is agreed that in the event that any such company ceases to be in competition with the Company and/or any company within the Prudential Group, this clause 8(1)(c) shall, with effect from that date, cease to apply in respect of such company.  The provisions of this clause 8(1)(c) shall not, at any time following the termination of the Appointment, prevent the Executive from holding shares or other capital not amounting to more than 3% of the total issued share capital of any company whether listed on a recognised stock exchange or not and, in addition, shall not prohibit the seeking or doing of business not in direct or indirect competition with the business of the Company or any company within the Prudential Group.

 

(2)             The period during which the restrictions referred to in clause 8 shall apply following the termination of the Appointment shall be reduced by the  amount of time during which, if at all, the Company suspends the Employee under the provision of clause 3(3).

 

(3)             The Executive acknowledges and agrees that:

 

(a)         each of sub-clauses 8(1)(a) (b) and (c) hereof constitute an entirely separate and independent restriction on him;

 

(b)         the duration extent and application of each of the restrictions are no greater than is necessary for the reasonable protection of the proper interests of the Prudential Group; and

 

(c)          if any such restriction is found by any court of competent jurisdiction to be void or unenforceable as going beyond what is reasonable in the circumstances for the protection of the interests of the Prudential Group but would be valid if part of the wording was deleted and/or the period thereof was reduced and/or the territory concerned was reduced the

 

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restriction shall apply within the jurisdiction of that court with such modifications as may be necessary to make it valid and effective.

 

9.                  TERMINATION OF EMPLOYMENT

 

(1)             The Appointment may be terminated by either party by notice given in accordance with Clause 2.  The Company may in its absolute discretion decide to terminate the employment by making a payment of Base Salary in lieu of any unexpired period of notice and, if any payment by the Company is appropriate, to make the payment either in one lump sum on termination or for payment to be made in equal monthly installments on the usual salary payment dates over the notice period.  During the period of payment of these monthly installments the Executive will be expected to mitigate the position by taking reasonable steps to secure  alternative employment commensurate with his skills and experience.  Should the Executive secure alternative employment which commences while the monthly installments are being paid the Executive will be required to notify the Company.  Should the Executive’s new gross monthly pay be the same or more than the monthly installments the Company will cease to be liable to the Executive in respect of the remainder of the installments.  Should the Executive’s new gross monthly pay be less than the monthly installments the monthly installments will continue but may be reduced to take account of the Executive’s new gross monthly pay.

 

(2)             Notwithstanding the other provisions of this Agreement and without prejudice to the rights and remedies of the Company for any breach of this Agreement, and to the Executive’s continuing obligations under Clauses 8 and 11, the Company shall at any time be entitled by notice in writing to the Executive to terminate the Appointment immediately in any of the following circumstances, namely:

 

(a)         if he is, or becomes, bankrupt or has a receiving order made against his or compounds with his creditors or otherwise takes advantage of any statute for the time being in force offering relief for insolvent debtors; or

 

(b)         if he is guilty of serious misconduct or behavior such as to bring any company in the Prudential Group into disrepute (including but without limitation the commission of a criminal offence (excluding Road  Traffic offences for which a non custodial sentence is imposed) or commits any serious and material breach of any of his obligations to the Company or any other company in the Prudential Group (whether under this Agreement or otherwise); or

 

(c)          if he refuses or neglects to comply with any lawful orders or directions reasonably given to him by the Company or the Board and that failure  to comply has material adverse consequences for the Prudential Group; or

 

(d)         if he fails, refuses or neglects to perform substantially the duties of the position which he holds under this Agreement or engages in willful or reckless conduct injurious to or damaging to the reputation of the Company or any other company within the Prudential Group; or

 

(e)          if he is prevented from carrying out his duties by reason of a personal disqualification by an industry regulator, caused by reasons attributable to the Executive; or

 

(f)           if he commits any serious or repeated breach (after warning) of any of his obligations under this Agreement or the Appointment.

 

(3)             The Executive shall have no claim against the Company for damages or otherwise by reason of  lawful termination pursuant to clause 9(2).  Any delay or forbearance by the Company in

 

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exercising any such right of termination shall not constitute a waiver of its rights in respect of any subsequent occurrence giving rise to such a right.

 

(4)             Without prejudice to the Transfer of Undertakings (Protection of Employment) Regulations 2006, if at any time during this Agreement the Executive’s employment is terminated by reason of reconstruction or amalgamation of the Company and the Executive is offered employment with any concern or undertaking resulting from such reconstruction or amalgamation upon terms and conditions no less favourable than the terms of this Agreement and of similar status then the Executive shall have no claim against the Company in respect of the termination of the Appointment.

 

(5)             The Executive shall promptly deliver to the Company upon the date of termination:

 

(a)         any property provided by the Company or any other company within the Prudential Group; and

 

(b)         all lists of clients or customers, correspondence, books, and all other documents, papers and records which may have been prepared by his or have come into his possession in the course of his employment and the Executive shall not be entitled to and shall not retain any copies thereof: title and copyright therein shall at all times remain in the Company.  The Company will on request make available copies of board minutes and supporting documents which the Executive reasonably requires in connection with any legal or regulatory proceedings in which he is or may become involved.

 

10.           EXECUTIVE’S POSITION AS DIRECTOR

 

(1)             The duties of the Executive as a director of any company within the Prudential Group shall be subject to the Articles of Association/ bylaws of the relevant company for the time being and (subject to sub-clause (2) below) shall be separate from and additional to his duties pursuant to the Appointment.  The Executive’s salary under this Agreement is inclusive of any remuneration to which the Executive may be entitled as a director of Prudential or any other company within the Prudential Group.

 

(2)             The Executive shall be covered by the same level of Directors’ and Officers’ protection and indemnities as all other UK-based Executive Directors.

 

(3)             If the Executive is removed from office as a director of Prudential during the Appointment by any resolution of a general meeting or of the Board or by not being re-elected after retiring by rotation pursuant to the Articles of Association of Prudential the Executive acknowledges and agrees that such removal or cessation shall not amount to a breach of the Appointment and shall not entitle the executive to bring a claim of constructive dismissal, but such removal or cessation shall automatically constitute the Company giving notice to terminate the Appointment within the provisions of clause 2(2).

 

(4)             Upon termination of the Appointment for whatever reason the Executive shall forthwith in writing resign his position as a director of Prudential and of any other company within the Prudential Group, without compensation for loss of office but without prejudice to any other claims the Executive may have for damages for breach of this Agreement.

 

(5)             If the Executive fails to comply with his obligations in sub-clause 10(4) hereof, he hereby irrevocably authorises Prudential to appoint some person in his name and on his behalf to sign any documents and/or do all things necessary to give effect to the resignations referred to in sub-clause 10(4) above.

 

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11.           CONFIDENTIAL INFORMATION

 

(1)             The Executive shall not, either during the continuance of the Appointment or thereafter, use to the detriment or prejudice of the Company or any other company within the Prudential Group or, except in the proper course of his duties, divulge to any person any Confidential Information concerning the business or affairs of the Company or any other company within the Prudential Group which may have come to his knowledge during his employment.  For the purposes of this Agreement “Confidential Information” shall include, without limitation,  details of suppliers and their terms of business, details of customers, prices charged to and terms of business with customers, marketing plans and sales forecasts, any proposals relating to the acquisition or disposal of a company or business or any part thereof, details of employees and officers and of the remuneration and other benefits paid to them and any other information which may reasonably be classified as confidential, but so that these instructions shall cease to apply to any information which shall become available generally otherwise than through the fault of the Executive.  The restrictions in this clause shall not apply:

 

(i)             to any disclosure or use authorised by the Board or required by law or by the Appointment; or

 

(ii)          so as to prevent the Executive from using his own personal skill in any business in which he may be lawfully engaged after the Appointment is ended, or

 

(iii)       to prevent the Executive making a protected disclosure within the meaning of s43A of the Employment Rights Act 1996.

 

(2)             The Executive shall maintain all necessary and proper security precautions when in the possession of Confidential Information and shall remove Confidential Information (in non-electronic form) from Prudential’s premises only to the extent it is strictly necessary for the proper performance of his duties hereunder. The Executive will comply with the Company’s standards relating to confidentiality of information in electronic form.

 

12.           GRATUITIES AND CODES OF CONDUCT

 

(1)             Without the Company’s permission the Executive shall not directly or indirectly accept any commission, rebate, discount or gratuity, in cash or in kind, from any person who has or is likely to have a business relationship with any company in the Prudential Group. Express permission is not required for reasonable business entertainment such as lunches, sporting, cultural or social events undertaken in the normal course of the Executive’s duties and in accordance with any directions given by the Company.

 

(2)             The Executive shall comply with all codes of conduct from time to time adopted by the Board and with all applicable rules and regulations of The Stock Exchange and any other relevant regulatory body.

 

13.                              DATA PROTECTION AND COMMUNICATIONS

 

13.1              During his employment, the Executive will have access to and process, or authorise the processing of, personal data (as defined in the EU General Data Protection Regulation 5419/16 and/or any implementing legislation (together, the “Data Protection Laws”)) held and controlled by the Company or any Associated Company and relating to the Company’s or any Associated Company’s employees, customers and other individuals. The Executive agrees to comply with the terms of the Data Protection Laws, and the Company’s data protection policies issued from time to time, in relation to such data.

 

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13.2              The Company and any Associated Company and its or their employees and agents may from time to time hold, process and disclose the Executive’s personal data in accordance with the terms of the Company’s privacy notice, data protection policy and/or employee handbook in force from time to time. The current versions of the applicable policies are available on the Company’s intranet page.

 

13.3              All communications made or received by the Executive using any Company property, servers or facilities (and any electronic mails sent to and from any electronic mail address assigned to the Executive by the Company) shall remain the property of the Company and shall be made or treated in accordance with the Group Digital policies which form part of the Company’s Group Governance Manual in force from time to time. The Company will in certain circumstances intercept, monitor and deal with communications made and received by the Executive using the Company’s property, or which pass through servers or networks owned, administered or otherwise lawfully controlled by the Company (including personal correspondence) in accordance with these Group Digital policies in force from time to time.

 

14.           ASSIGNMENT

 

The Company may assign its interest in this Agreement to any other company within the Prudential Group with the agreement of the Executive such agreement not to be unreasonably withheld.

 

15.           STATUTORY REQUIREMENTS

 

The Executive shall also be subject to the terms set out in Schedule I attached to this Agreement in connection with the Employment Rights Act 1996.

 

16.           NOTICES

 

Any notice or other document to be given hereunder shall either be delivered personally or be sent by first class recorded delivery or fax.  The address for service on the Company shall be its registered office for the time being and the address for service on the Executive shall be his last known place of residence.  A notice shall be deemed to have been served as follows:-

 

(a)         if personally delivered, at the time of delivery;

 

(b)         if posted, at the expiration of 48 hours after the envelope containing the same was delivered into the custody of the postal authorities;

 

(c)          if sent by fax, at the time of dispatch.

 

In proving such service it shall be sufficient to prove that personal delivery was made, or that the envelope containing such notice was properly addressed and delivered into the custody of the postal authorities as a pre-paid, first class, recorded delivery letter, or that the fax was properly addressed and dispatched as the case may be.

 

17. GOVERNING LAW AND JURISDICTION

 

This Agreement shall be governed by and construed under the laws of England and Wales and each of the parties hereby irrevocably agrees that the Courts of England and Wales are to have exclusive jurisdiction to settle any disputes which may arise out of or in connection with this Agreement.

 

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18.           MISCELLANEOUS

 

(1)             This Agreement  forms the entire understanding of the parties as to its subject matter and both parties acknowledge that neither of them has entered into this Agreement in reliance upon any representation warranty or undertaking which is not set out in this Agreement as forming part of the contract of employment of the Executive.

 

(2)             Any reference in this Agreement to an Act of Parliament shall be deemed to include any statutory modification or re-enactment thereof whenever made.

 

(3)             The headings shall be disregarded in construing this Agreement.

 

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IN WITNESS the hands of the Executive and of the duly authorised representative of the Company on the date first above written.

 

	
SIGNED by
    	
 
    	
/s/ Mike Wells
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
on behalf of PRUDENTIAL PLC
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
In the presence of:-
    	
 
    	
/s/ Timothy Rolfe
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:    11/10/18
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by Michael I Falcon
    	
 
    	
/s/ Michael Falcon
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
In the presence of:-
    	
 
    	
/s/ Apoorva Chandra
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:    11/10/18
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
SIGNED by
    	
 
    	
/s/ Barry Stowe
    	
 
    
	
 
    	
 
    	
 
    
	
on behalf of JACKSON NATIONAL   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
In the presence of:-
    	
 
    	
/s/ N Greenwood
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:    11/10/18
    	
 
    	
 
    	
 
    

 

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SCHEDULE I

 

In accordance with the Employment Rights Act 1996, the following terms of the Executive’s appointment apply on the date of the Agreement as provided therein:-

 

(a)         Remuneration -  Clause 5(1)

 

(b)         Hours of Work - There are no fixed hours of work -  Clause 4

 

(c)          Holidays -  Clause 7

 

(d)         Sickness and Injury - the Executive is entitled to be paid during any period of absence from work due to sickness or injury, subject however to the provisions of sub-clause 5(3)

 

(e)          Pension Arrangements -  Clause 5(2)

 

(f)           Notice -  Clause 2(2)

 

(g)          Job Title -  Clause 2(1)

 

(h)         Grievance Procedure - If the Executive seeks to redress any grievance relating to his employment he should apply in writing to the Chief Executive of the Prudential Group.

 

(i)             Disciplinary Procedure - There are no disciplinary rules applicable to senior executives so that any disciplinary action relevant to the Executive will be considered and handled according to the particular circumstances and the Executive’s position.  Should the Executive be dissatisfied with any disciplinary decision he should appeal in writing to the Chief Executive of the Prudential Group.

 

(j)            Date of Commencement of Employment - The date of commencement of this appointment is the Commencement Date - Clause 1.

 

(k)         Place of work - Clause 4(3).

 

(l)             Collective Agreements which directly affect the Executive’s terms and conditions - none.

 

13Exhibit 4.3

 

TEMPLATE

PRUDENTIAL PLC DEED OF INDEMNITY

 

NAME:  [XXXX]

 

Between

 

(1)                                 Prudential plc (registered number 01397169) whose registered office is at [XXXX] (“Prudential”); and

 

(2)                                 [XXXX] (the “Beneficiary”)

 

Background

 

(A)                               The Beneficiary holds, or will from time to time hold, the position of:

 

(i)            director, officer, employee, trustee, representative or like position of any member of the Group; or

 

(ii)           director, officer, employee, trustee, governor, councillor, representative or like position in any external organisation at the request of any member of the Group (or as a result of being a director, officer, employee, trustee or representative, or holding like position in respect of, any member of the Group).

 

(B)                               Prudential has agreed to indemnify the Beneficiary and his Dependants against certain personal liabilities and expenses arising out of or in connection with such positions on the terms of this Deed.

 

(C)                               Prudential will not, however, indemnify the Beneficiary and his Dependants if it is contrary to law.

 

Agreement

 

1.                                      Indemnity

 

Subject to the following paragraphs of this Deed, Prudential undertakes to indemnify each Beneficiary Family Member and hold each Beneficiary Family Member harmless against any and all losses, damages, costs, liabilities, demands, charges, penalties, fines, interest or expenses (including without limitation any and all losses, costs, liabilities, charges or expenses properly and reasonably suffered or incurred (including advisory fees) in investigating, responding to, preparing for or disputing any claim, action, demand, proceedings, investigation (whether formal or informal), judgment or award, in each case whether or not successful, compromised or settled, which may be instituted, made, threatened or alleged against or otherwise involve any of the Beneficiary Family Members in any jurisdiction (each a “Claim”) which the Beneficiary Family Members  may suffer or incur in any jurisdiction (“Losses”) and which in any such case arise out of or in connection with the carrying out or performance, whether before (subject to paragraph 17 below) or after the date of this Deed, by the Beneficiary of the Beneficiary’s duties as a director, officer, employee, trustee, representative or like position of any member of the Group or as a director, officer, employee, trustee, governor, councillor, representative or like position in any external organisation where such position is held at the request of any member of the Group or as a result of being a director, officer, employee, trustee or representative, or holding like position in respect of, any member of the Group.

 

 

2.                                      Indemnity to take effect subject to law and regulation

 

The indemnity contained in paragraph 1 shall not apply to the extent that it would be void by virtue of, or contravenes, the Companies Act 2006 or any other applicable law or regulation (including without limitation listing rules).

 

3.                                      Proceedings for which indemnity cannot be claimed

 

Subject to paragraph 5, the indemnity contained in paragraph 1 shall not extend to any liability incurred by the Beneficiary, (i) to any member of the Group, (ii) to pay a fine imposed in criminal proceedings, (iii) to pay a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising), (iv) in defending any criminal proceedings in which the Beneficiary is convicted, (v) as a result of, or in connection with any act or omission by the Beneficiary which is determined by any relevant court, tribunal or other legal or regulatory authority, or otherwise judicially, determined, to constitute fraud, dishonesty, bad faith, wilful default or criminal act on the part of the Beneficiary, (vi) in defending civil proceedings brought by any member of the Group in which judgment is given against the Beneficiary or (vii) in connection with any application under the Application for Relief Sections in which the Court refuses to grant relief to the Beneficiary.

 

4.                                      Loss of earnings and of other employment benefits

 

The indemnity contained in paragraph 1 shall not apply in respect of any loss of earnings or of any other employment benefit, including but not limited to rights to bonus or other monetary incentives, share options or other share-based incentives or pension or other retirement benefits, which any Beneficiary Family Member may suffer as a result of any period of disqualification imposed by any relevant court, tribunal or other legal or regulatory authority.

 

5.                                      Advances in respect of proceedings

 

Where any Beneficiary Family Member properly and reasonably suffers or incurs losses, costs, liabilities, charges or expenses (including without limitation advisory fees) in investigating, responding to, preparing for or disputing any Claim, the Beneficiary shall be entitled to claim indemnity under paragraph 1 (for himself and/or on behalf of any Beneficiary Family Member) forthwith after the same becomes due and payable by the Beneficiary Family Member, provided that if such Claim:

 

(a)                     relates to a criminal offence in relation to which the Beneficiary is convicted;

 

(b)                     relates to civil proceedings brought by any member of the Group in which judgment is given against the Beneficiary;

 

(c)                      relate to any matters in respect of which any relevant court, tribunal or other legal or regulatory authority determines that any act or omission by the Beneficiary constitutes fraud, dishonesty, bad faith or wilful default on the part of the Beneficiary; or

 

(d)                     relates to any application under the Application for Relief Sections in which the Court refuses to grant the Beneficiary relief,

 

Prudential shall be entitled to refuse to provide indemnification (or, as the case may be, any further indemnification) pursuant to the indemnity contained in paragraph 1 and where Prudential has already paid amounts to the Beneficiary pursuant to the indemnity contained in paragraph 1, such amounts shall be reimbursed to Prudential by the Beneficiary not later than (i) in the event of the Beneficiary being convicted, the date on which such conviction has become final, (ii) in the event of judgment being given against the Beneficiary, the date on which such judgment has become final, (iii) in the event of any relevant court, tribunal or other legal or regulatory authority determining that any act or omission by the Beneficiary constitutes fraud, dishonesty, bad faith or wilful default on the part of the Beneficiary, the date of such determination or (iv) in the event of the court refusing to grant the Beneficiary relief on the application, the date on which such refusal for relief has become final.

 

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6.                                      Termination and survival

 

The provisions of this Deed shall survive:

 

(a)                     the Beneficiary moving to another role within the Group which does not have the benefit of an indemnity equivalent to the indemnity contained in paragraph 1; and

 

(b)                     the termination of any or all appointments of the Beneficiary within the Group, excluding (i) termination by the Beneficiary in fundamental breach of the terms of his appointment with any member of the Group; or (ii) termination by Prudential by reason of the Beneficiary’s fraud or wilful and serious neglect of his duties.  In the event of a dispute relating to this paragraph 6(b), Prudential shall provide indemnification (or, as the case may be, further indemnification) pursuant to the indemnity contained in paragraph 1 until a competent court, tribunal or other legal or regulatory authority, from which there is no right of appeal, determines that any act or omission by the Beneficiary constitutes a fundamental breach of the terms of his appointment with any member of the Group, fraud or wilful and serious neglect by the Beneficiary of his duties.

 

7.                                      Notification of Prudential

 

The Beneficiary shall notify Prudential in writing promptly upon becoming aware of any matter for which indemnity may be sought under paragraph 1, providing to Prudential all such information as the Beneficiary has of the circumstances of the relevant matter, and shall thereafter provide Prudential with all such information as Prudential may reasonably require about developments in relation to such matter. The Beneficiary acknowledges that Prudential may provide such information to its insurers and advisers and to, any other member of the Group and agrees to respond promptly to all reasonable requests from Prudential in relation to any matter relating to the indemnity contained in paragraph 1.

 

8.                                      Conduct of Claims

 

(a)                     The Beneficiary shall, subject to paragraph 8(b), have conduct of the defence and settlement of any Claim, but Prudential shall have the right (but not the obligation) to associate itself with such Claim provided the Beneficiary consents to this. Prudential shall not be required or, without the consent of the Beneficiary (such consent not to be unreasonably withheld or delayed), permitted to assume the conduct of the Claim made against the Beneficiary.

 

(b)                     The Beneficiary shall conduct all Claims diligently and competently using the legal and other representatives mutually acceptable to the Beneficiary and Prudential. The Beneficiary shall keep Prudential reasonably informed of the progress of any Claim and recognises the right of Prudential to provide at its discretion input into the conduct of any Claim. The Beneficiary shall not settle or compromise any Claim without Prudential’s consent (such consent not to be unreasonably withheld or delayed).

 

9.                                      Recovery against other persons

 

If Prudential pays any amount in respect of any Losses and any Beneficiary Family Member is, or subsequently becomes, entitled to recover from any other person any amount in respect of such Losses (including without limitation by way of tax credit, allowance, repayment or relief), then, subject to there being no reasonable prospect of any Beneficiary Family Member being prejudiced and to Prudential agreeing to indemnify the Beneficiary Family Members against all reasonable costs and expenses which might be incurred, Prudential may either:

 

(a)                     request that the Beneficiary take (or procure that any Dependant take) all reasonable steps to enforce such recovery. If Prudential so elects then the Beneficiary must so act and must procure that all and any amounts recovered, less all reasonable costs, charges and expenses incurred and not recovered by any Beneficiary Family Member in making

 

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such recovery, will be applied in promptly repaying to Prudential the amount paid by Prudential in respect of the Losses; or

 

(b)                     exercise its right to be subrogated to the extent of such payment to any or all the  Beneficiary Family Members’ rights of recovery against third parties in respect of the payment. If Prudential so elects then the Beneficiary shall (or. shall procure that the Dependants shall), promptly on request from Prudential, execute all papers reasonably required and shall do everything necessary to enable Prudential to bring, maintain and conclude an action effectively, either in the name of all or any Beneficiary Family Members or in its own name, at Prudential’s discretion.

 

10.                               Recovery under other indemnities and insurance

 

(a)                     Subject to paragraph 10(c), the Beneficiary agrees to take, and to procure that the Dependants take, all reasonable steps to claim and recover under any other indemnity or insurance policy before he makes a claim under the indemnity contained in paragraph 1. The indemnity contained in paragraph 1 operates only in excess of any right to indemnity or insurance which any Beneficiary Family Member may have (irrespective of any wording to the contrary in any indemnity or insurance policy concerned), and no person other than the Beneficiary shall have the right to pursue any claim against Prudential under the indemnity contained in paragraph 1 (or to seek contribution from Prudential) whether in his own name or that of any Beneficiary Family Member.

 

(b)                     Provided that the Beneficiary complies with paragraph 10(a), Prudential will advance to the Beneficiary the funds necessary to make a payment in respect of any Losses pending receipt by the Beneficiary Family Member of the amounts due under any other indemnity and/or insurance policy in excess of which the indemnity contained in paragraph 1 operates. Any such advance will not operate to extinguish, erode or otherwise limit in any way whatsoever the Beneficiary Family Members’ entitlement under the other indemnity and/or insurance policy and the Beneficiary shall remit (or shall procure that there shall be remitted) to Prudential all and any payments and/or benefits received pursuant thereto subsequent to the date of the advance required to repay the advance.

 

(c)                      The obligation to take all reasonable steps to claim and recover under any other indemnity or insurance policy set out in paragraph 10(a) shall not operate in respect of any policy of executives’ and officers’ liability insurance for which any member of the Group is the named policyholder and which requires that any Beneficiary Family Member be indemnified by a member of the Group prior to any claim being brought under that policy.

 

11.                               Deductions required to be made by Prudential or a Beneficiary Family Member

 

(a)                     All amounts payable by Prudential to, or on behalf of, any Beneficiary Family Member under this Deed of indemnity will be paid without any deductions unless they are required by law. If any deductions are required by law, Prudential will pay to, or on behalf of, the Beneficiary Family Member an amount which will, after any deduction has been made, result in the Beneficiary Family Member receiving the same amount as the Beneficiary Family Member would have been entitled to receive in the absence of any requirement to make a deduction.

 

(b)                     If any amount payable by Prudential under this Deed of indemnity is subject to tax in the hands of the Beneficiary Family Member in any jurisdiction, the amount payable will be increased so that the net amount received by the Beneficiary after taking that tax into account is equal to the full amount which would have been received by the Beneficiary Family Member if that tax had not been payable.

 

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(c)                      To the extent that any Beneficiary Family Member obtains any tax credit, allowance, repayment or relief as a result of Prudential paying any increased amount under this paragraph 11, the Beneficiary shall repay, or procure that the Dependant repays, to Prudential the amount necessary to reflect the principle that, after tax, the Beneficiary Family Member is to be put in the same position as if the deduction or charge to tax had not been required or incurred in the first place.

 

12.                               No double recovery

 

Notwithstanding the provisions of this Deed, the Beneficiary shall have the benefit of any indemnity, insurance, agreement, undertaking or commitment entered into with, or on his behalf by, any member of the Group whether before (subject to paragraph 17 below) or after the date of this Deed, provided that he shall not be entitled to recover more than once under this indemnity and any other indemnity, insurance, agreement, undertaking or commitment in respect of any Losses.

 

13.                               Interpretation

 

In this Deed:

 

(a)                     “Application for Relief Sections” means,

 

when such provisions have come into force:

 

(i)            section 661(3) or (4) of the Companies Act 2006 (acquisition of shares by innocent nominee); or

 

(ii)           section 1157 of the Companies Act 2006 (general power to grant relief in case of honest and reasonable conduct);

 

(b)                     “Beneficiary Family Members” mean the Beneficiary and the Dependants;

 

(c)                      “Claim” has the meaning ascribed to it in paragraph 1;

 

(d)                     “Companies Act 2006” means the Companies Act 2006 as amended, modified, re enacted or replaced from time to time;

 

(e)                      “Deed” means this deed;

 

(f)                       “Dependant” means:

 

(i)            the Beneficiary’s spouse or civil partner;

 

(ii)           any other person (whether of a different sex or the same sex) with whom the Beneficiary lives as partner in an enduring family relationship other than the Beneficiary’s grandparent or grandchild, sister, brother, aunt or uncle, or nephew or niece;

 

(iii)          the Beneficiary’s children or step-children;

 

(iv)          any children or step-children of a person within paragraph 13(g)(ii) (and who are not children or step-children of the Beneficiary) who live with the Beneficiary and have not attained the age of 18; and

 

(v)           the Beneficiary’s parents;

 

(h)                     “director” shall include without limitation shadow director;

 

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(i)                         “Existing Indemnity” means any previous agreement between the Beneficiary and Prudential relating to the subject matter of this Deed, including any indemnity previously given by Prudential to any Beneficiary Family Member in respect of any of the matters covered by this Deed;

 

(j)                        “Group” means Prudential or any subsidiary or holding company of Prudential or any subsidiary of a holding company of Prudential;

 

(k)                     “Losses” have the meaning ascribed to them in paragraph 1;

 

(l)                         “holding company” and “subsidiary” have the meanings ascribed to them in the Companies Act 2006;

 

(m)                 a reference to a “conviction”, “judgment”, “determination” or “refusal of relief” is a reference to one that has become final. For these purposes, a conviction, judgment, determination or refusal of relief becomes final:

 

(i)                                     if not appealed against, at the end of the period for bringing an appeal; or

 

(ii)                                  if appealed against, at the time when the appeal (or any further appeal) is disposed of.

 

An appeal is disposed of:

 

(iii)                               if it is determined and the period for bringing any further appeal has ended; or

 

(iv)                              if it is abandoned or otherwise ceases to have effect; and

 

(n)                     any reference to the masculine shall as appropriate be a reference to the feminine.

 

14.                               Claims and enforcement

 

(a)                     Prudential shall be entitled to take steps in relation to the provisions of this Deed.  In taking any such step, Prudential may act for itself and/or on behalf of any of all other members of the Group.

 

(b)                     The Beneficiary and his personal representatives and estate shall be entitled to make a claim, and take any other steps, in relation to the provisions of this Deed. In taking any such step, the Beneficiary may act for himself and/or on behalf of any or all of the Dependants.

 

(c)                      Subject to paragraphs 14(a) and (b), any person other than Prudential and the Beneficiary may not enforce any of the provisions of this Deed under the Contracts (Rights of Third Parties) Act 1999.

 

15.                               Miscellaneous

 

(a)                     The Beneficiary may not assign or otherwise transfer any rights or obligations set out in this Deed.

 

(b)                     Any failure by Prudential or the Beneficiary to exercise any right, power or privilege available under this Deed is not a waiver for the purposes of this Deed nor will any single or partial exercise thereof preclude any further exercise of any right, power or privilege.

 

(c)                      The provisions of this Deed may only be amended in writing signed by or on behalf of Prudential and the Beneficiary.

 

(d)                     If any provision of this Deed is held to be illegal, invalid or unenforceable in whole or in part, the remaining provisions shall continue to be valid.

 

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(e)                      Prudential and the Beneficiary acknowledge that any contract, agreement, commitment or undertaking in respect of the Beneficiary’s role as a director, officer, employee, trustee or representative of Prudential incorporates, and accordingly is made on and subject to, the provisions of the Memorandum and Articles of Association of Prudential.

 

16.                               Employment terms and conditions

 

If the Beneficiary is also an employee of any member of the Group, the Beneficiary acknowledges that this Deed shall be deemed to be incorporated into the employment contract between the Beneficiary and the relevant member of the Group as supplementary terms thereto.

 

17.                               Effective date

 

The indemnity contained in paragraph 1 shall apply in respect of any Claims or losses made or incurred on or after the date of commencement of the Beneficiary’s position as director, officer, employee, trustee, representative or like position of any member of the Group, or as director, officer, employee, trustee, governor, councillor, representative or like position in any external organisation at the request of any member of the Group (or as a result of being a director, officer, employee, trustee or representative, or holding like position in respect of, any member of the Group).

 

18.                               Governing law

 

The provisions set out in this Deed are governed by and must be interpreted in accordance with English law.

 

19.                               Arbitration

 

(a)                     Any dispute, controversy or claim arising out of or in connection with this Deed shall be referred to and finally resolved by arbitration under the Rules or Arbitration of the International Chamber of Commerce (“ICC Rules”) by three arbitrators appointed in accordance with the ICC Rules.

 

(b)                     The seat of the arbitration shall be London and the language of the arbitration (in which each member of the tribunal shall be fluent) shall be English.

 

This document has been executed as a deed and is to be treated as delivered on the later of (a) being executed and dated by Prudential and (b) being signed and dated by the Beneficiary.

 

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