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LINDE INC.
2018 EQUALIZATION BENEFIT PLAN
(Amended and Restated, Effective September 1, 2020)
LINDE, INC.

2018 EQUALIZATION BENEFIT PLAN
(Amended and Restated, Effective September 1, 2020)

General
    This 2018 Equalization Benefit Plan (the “Plan”) is maintained by Linde Inc. (formerly Praxair, Inc.) (the “Corporation”), a wholly-owned subsidiary of Linde plc (“Linde”), is completely separate from the Praxair Pension Plan component of the Linde U.S. Pension Plan (the “Pension Plan”), and is not funded or qualified for special tax treatment under the Internal Revenue Code of 1986, as amended (the “Code”).  The purpose of this Plan is to restore retirement benefits to those Pension Plan participants, and to the spouses or beneficiaries of such participants, whose retirement benefits under the Pension Plan are, or will be, reduced by the limitations imposed by Section 415 of the Code, as from time to time amended (collectively referred to herein as “Participants”).  
    This Plan operates in conjunction with the Pension Plan, the Linde Inc. 2018 Supplemental Retirement Income Plan A (the “SRIP A”) and the Linde Inc. 2018 Supplemental Retirement Income Plan B (the “SRIP B”) to provide retirement benefits to Participants.  Each of these four plans must be read together in the following order to determine the total Linde retirement benefit payable to, or on behalf of, a Participant:  
•Praxair Pension Plan Component of the Linde U.S. Pension Plan
•Linde Inc. 2018 Equalization Benefit Plan
•Linde Inc. 2018 Supplemental Retirement Income Plan A
•Linde Inc. 2018 Supplemental Retirement Income Plan B
In no event shall any benefit payable to or on behalf of a Participant under this Plan duplicate the benefit payable to or on behalf of such Participant under the Pension Plan, the SRIP A and/or the SRIP B.
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     No Participant shall accrue any benefit under this Plan attributable to service, compensation, or any other benefit formula that is used to derive a benefit under this Plan, for any period on or before the October 31, 2018 (the “Merger Date”); provided, however, that accruals attributable to Account-based Accounts that would have been credited to the Praxair, Inc. Equalization Benefit Plan for calendar year 2018 shall instead be credited under this Linde Inc. 2018 Equalization Benefit Plan.  Notwithstanding any provision of this Plan to the contrary, in the event any benefit attributable to service, compensation, or any other benefit formula that is used to derive a benefit under this Plan for any period on or before the Merger Date, is payable or has been paid under any other plan maintained by the Corporation, such benefit shall not be paid under this Plan, and any provision of this Plan or any other plan maintained by the Corporation, will be interpreted accordingly.
ARTICLE I
EBP Benefits
Section 1.  Each Participant shall be designated as either an Account-Based Participant, a Traditional-Design Participant, or a Dual Formula Participant.  This designation shall be consistent with such Participant’s method of benefit accrual under the Pension Plan.  Notwithstanding the foregoing, a Participant that is considered a Dual Formula Participant under the Pension Plan shall be treated as an Account-Based Participant for all purposes under this Plan if such Participant has previously received, or incurred an event triggering payment of, all benefits to which he is entitled under this Plan that relate to periods of service during which such Participant’s benefit accruals under the Pension Plan were determined under Article V of the Pension Plan.
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    Any Participant in the Pension Plan, or such Participant’s surviving spouse or beneficiary, shall be entitled to a benefit, payable hereunder in accordance with this Plan, calculated under either A or B below (referred to herein as the “EBP Benefit”).
    A.    Amount of EBP Benefit for Traditional-Design Participants.  The EBP Benefit hereunder payable to a Traditional-Design Participant or his or her surviving spouse shall be equal to the excess of (a) minus (b), if any, determined as of termination of employment, where (a) and (b) are defined as follows:
(a) equals the amount of such Participant’s or surviving spouse’s annual benefit under the Pension Plan computed under the provisions of the Pension Plan without regard to the limitations of Code Section 415; and
(b) equals the amount of such Participant’s or surviving spouse’s annual benefit actually payable under the Pension Plan.
B.    Amount of EBP Benefit for Account-Based Participants.  The EBP Benefit hereunder payable to or on behalf of an Account-Based Participant shall be equal to the excess of (a) minus (b), if any, determined as of termination of employment, where (a) and (b) are defined as follows:
(a) equals the Account-Based Account (as defined in the Pension Plan) which the Participant would have had at such time under the Pension Plan as if such amounts had been determined without applying the limitations of Code Section 415; and
(b) equals the actual Account-Based Account which the Participant has at such time under the Pension Plan.
C.    Amount of EBP Benefit for Dual Formula Participants.  The EBP Benefit hereunder payable to or on behalf of a Dual Formula Participant or his or her surviving spouse 
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shall be equal to the sum of (a) plus (b), determined as of termination of employment, where (a) and (b) are defined as follows:
(a) equals the excess, if any, of (i) the amount of such Participant’s or surviving spouse’s Article V Benefit computed under the provisions of the Pension Plan, but without regard to the limitations of Code Section 415, over (ii) the amount of such Participant’s or surviving spouse’s annual benefit actually payable under the Pension Plan with respect to his or her Article V Benefit thereunder; and
(b) equals the excess, if any, of (i) the Account-Based Account which the Participant would have had at such time under the Pension Plan as if such amounts had been determined without applying the limitations of Code Section 415, over (ii) the actual Account-Based Account which the Participant has at such time under the Pension Plan.
D.    Provisions Common to All Participants 

(a)  If a Participant satisfies the requirements for a survivor’s benefit, the amount of EBP Benefit which such Participant would otherwise have received shall be reduced by applying the same factor used in the Pension Plan in connection with survivor’s benefits.
(b)  The amount of EBP Benefit payable to the eligible survivor of a Participant shall be calculated in the same manner that such survivor’s benefit is calculated under the Pension Plan.
(c)  With respect to any benefit hereunder payable to a “spouse,” the determination of whether a person constitutes an eligible spouse shall be made under the same criteria as apply under the Pension Plan. 
ARTICLE II
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Vesting
Section 1.  Except as otherwise provided herein, a Participant will be vested in such Participant’s right to receive EBP Benefits in the same manner and to the same extent as provided under the Pension Plan.  
ARTICLE III
EBP Benefit Payments
Section 1.  For Traditional-Design Participants, payments shall be made as follows:
(a) For Traditional-Design Participants who terminate employment at a time when they would be immediately eligible to commence a benefit under the Pension Plan, a single life annuity (or a 50% joint and survivor annuity for such Participants who are married at the time of their termination of employment) will commence to be paid as of the first of the month coincident with or next following such termination, and a lump sum payment of all remaining EBP Benefits due hereunder shall be made on or about July 1 of the year immediately following the year of such termination (the year of termination is hereinafter referred to as the “Termination Year”).  Where such Participant has commenced a 50% joint and survivor annuity, and such Participant’s spouse dies during the annuity payment period, the Participant’s EBP Benefit will be increased to eliminate the cost of the survivor benefit.  Notwithstanding the foregoing, if such Participant is a Specified Employee (as such term is defined in Code Section 409A) no annuity benefits shall be paid during the six month period after the Participant’s termination of employment (the “Delay Period”), and at the conclusion of the Delay Period any annuity benefits which would otherwise have been paid during the Delay Period shall be paid in a single sum which shall include interest at the interest rate used for determining Actuarial 
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Equivalence, as then in effect under the Pension Plan.  Annuity benefits shall then commence and continue until a lump sum payment is due pursuant to the first sentence of this paragraph.
(b) For Traditional-Design Participants who terminate employment at a time when they would not be immediately eligible to commence a benefit under the Pension Plan, a lump sum payment of all EBP Benefits due hereunder, (taking into account the value of the 50% joint and survivor form of benefit if the Participant is married at the time of termination of employment), shall be made on or about July 1 of the year immediately following the Termination Year.  If such Participant’s spouse dies prior to the date of such lump sum payment, the Participant’s benefit shall not be reduced to reflect the cost of the survivor benefit.
(c) Lump sum payments shall be calculated using a discount rate equal to the 10 year Aaa municipal bond rate as published by Moody’s or a similar rating service for the third month prior to the month payments commence.  Notwithstanding the prior sentence, with respect to benefits that become payable on account of a Traditional-Design Participant’s termination of employment, lump sum payments shall be calculated using a discount rate equal to the average of the 10 year Aaa municipal bond rate as published by Moody’s or a similar rating service for the months of July through December of the year immediately prior to the year in which such Participant terminated employment. 
Section 2.  (a)  For Account-Based Participants who terminate employment on or after November 1 of a year and prior to May 1 of the following year, a lump sum of their EBP Benefit shall be paid on or about July 1 of that following year.  For Account-Based Participants who terminate employment on or after May 1 and prior to November 1 of a year, a lump sum of their EBP Benefit shall be paid on or about January 1 of the following year.  (By way of example, an Account-Based Participant who terminates employment in December, 2020, and an 
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Account-Based Participant who terminates employment in April, 2021, would each receive a lump sum in July, 2021.  An Account-Based Participant who terminates employment in June, 2021, would receive a lump sum in January, 2022.)  Notwithstanding the foregoing, if such Participant is a Specified Employee (as such term is defined in Code Section 409A) no payment shall be made until the later of the date determined above and the date which is six months after the Participant’s termination of employment. 
(b) Such lump sum payment shall be calculated utilizing the factors described for lump sum payments under Section 5.7(b) (or any successor provision governing calculations of Account-Based lump sums) of the Pension Plan. 
Section 3.  For Dual Formula Participants, payments shall be made as follows:

(a) With respect to the portion of such Dual Formula Participant’s EBP Benefit that is described in Section 1(C)(a) of Article I of this Plan, such portion shall be paid as described in Section 1 of this Article III.
(b) With respect to the portion of such Dual Formula Participant’s EBP Benefit that is described in Section 1(C)(b) of Article I of this Plan, such portion shall be paid as described in Section 2 of this Article III.
Section 4.  In the event of a Change in Control, all EBP Benefits not yet paid under this Plan shall become immediately vested and shall be paid in a lump sum payment, calculated as otherwise described herein, as soon as administratively possible following the date of such Change in Control, but no later than 90 days after such date.  Notwithstanding any provision of this Plan to the contrary, a Participant (including a Participant who has previously separated from service and is receiving payment of his or her EPB Benefit) who satisfies criteria established by the Compensation Committee (the “Committee”) of Linde’s Board of Directors 
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(the “Board”) or Linde’s Chief Human Resources Officer (the “CHRO”), as determined in the sole discretion of the Committee or the CHRO, may elect, at the time and in the manner designated by the Committee or the CHRO, to waive the right to receive payment of his or her unpaid EBP Benefit upon a Change in Control and such waiver shall be considered the deletion of such Participant’s Change in Control payment event as contemplated under Treasury Regulation Section 1.409A-2(b)(6).  Any Participant who makes such election shall receive payment of his or her EBP Benefits at such time and in such manner as otherwise provided under the Plan.  Any such election must be consistent with the election made by the Participant with respect to his or her benefits, if any, under the SRIP A and/or SRIP B, and shall be valid if, and only if, made at least one year prior to the effective date of any Change in Control.  For this purpose, “Change in Control” shall mean the occurrence of any one of the following events with respect to Linde:
(a) during a 12-month period, a majority of the individuals who constitute the  Board are replaced by directors whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election;  
(b) any one person, or more than one person acting as a group, becomes owner as defined in Section 318(a) of the Internal Revenue Code of 1986 (the “Code”) (or has become owner during the 12-month period ending on the date of the most recent acquisition by such person or group), of stock of Linde possessing 30 percent or more of the total voting power of the stock of Linde; provided, however, that the event described in this paragraph (ii) shall not be deemed to be a Change in Control by virtue of any of the following acquisitions:  (A) by Linde or any of its subsidiaries, (B) by any employee benefit plan sponsored or maintained by Linde or 
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any of its subsidiaries, or (C) by any underwriter temporarily holding securities pursuant to an offering of such securities.
(c) any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or group) assets from Linde that have a total gross fair market value equal to or more than 80 percent of the total gross fair market value of all of the assets of Linde immediately prior to such acquisition(s); provided, however, that a transfer of assets by Linde is not treated as a Change in Control if the assets are transferred to: (A) a shareholder of Linde (immediately before the asset transfer) in exchange for or with respect to its stock; (B) an entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by Linde; (C) a person, or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total value or voting power of all outstanding stock of Linde; or (D) an entity, at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in the previous subsection (C).  For purposes of this paragraph, (1) gross fair market value means the value of the assets of Linde, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets, and (2) a person’s status is determined immediately after the transfer of the assets.
(d) any one person, or more than one person acting as a group, becomes owner, as defined in Section 318(a) of the Code, of stock of Linde that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of stock of Linde; provided, however, that if any one person or more than one person acting as a group, is considered to own more than 50 percent of the total fair market value or total voting power of stock of Linde, the acquisition of additional stock by the same person is not 
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considered to cause a Change in Control.  This paragraph applies only when there is a transfer of stock of Linde (or issuance of stock of Linde) and stock in Linde remains outstanding after the transaction.
For purposes of this definition of Change in Control:
(i) a “person” shall be as such term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act; and
(ii) persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar transaction with Linde.  If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in Linde prior to the transaction giving rise to the Change in Control and not with respect to the ownership interest in the other corporation.  Persons will not be considered to be acting as a group solely because they purchase or own stock of Linde at the same time, or as a result of the same public offering.
Section 5.  In the event of a domestic relations order requiring the partition of a Participant’s EBP Benefit, the benefit assigned to an alternate payee shall be paid out in a single lump sum, at the time indicated in such an order accepted by the Corporation, calculated as described in Section 1, 2, or 3 of this Article III, as applicable.
Section 6.  Any EBP Benefit which is payable upon a termination of employment or similar event, shall be payable only where such termination of employment or similar event would constitute a “separation from service” with the Corporation and its affiliates under Code Section 409A and the regulations thereunder.
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Section 7.  (a) (i) In the event a Traditional-Design Participant described in Article III, Section 1(a) dies after terminating employment while receiving a 50% joint and survivor annuity, but before receiving the lump sum payment described in such Section, such Participant’s surviving spouse will receive a 50% annuity from the Participant’s date of death through June of the year following the Termination Year, and a lump sum payment of the remaining value of such 50% spousal annuity on or about July 1 of the year immediately following the Termination Year.  If such Participant’s spouse does not survive the Participant, no further EBP Benefit will be payable.
(ii) In the event a Traditional-Design Participant described in Article III, Section 1(a) dies after terminating employment while receiving a single life annuity, then the Participant’s dependent children, if any, shall receive a 50% annuity, divided equally among them, payable until the earlier of age 23 or June 30 of the year immediately following the Termination Year, and a lump sum payment of the remaining value of such 50% annuity on or about July 1 of the year immediately following Termination Year.  The lump sum value shall be calculated based on an annuity payable until the attainment of age 23.  If there is no dependent child, then the Participant’s dependent parents, if any, shall receive a 50% annuity, divided equally among them, payable until the earlier of their respective deaths or June 30 of the year immediately following the Termination Year, with a lump sum payment of the remaining value of such 50% annuity on or about July 1 of the year immediately following the Termination Year. If such Participant has neither dependent children or dependent parents at the time of his or her death, no further EBP Benefit will be payable.  
(iii) If one or more of the multiple recipients receiving the 50% annuity ceases to be eligible to continue to receive such recipient’s share as the result of such recipient’s death, 
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or attainment of age 23 in the case of a dependent child, the remaining recipients shall continue to draw only their respective shares.
(b) (i) In the event a Traditional-Design Participant described in Article III, Section 1(b) dies after terminating employment, but before receiving a lump sum payment, such Participant’s spouse, if such Participant was married at the time of terminating employment, will receive a lump sum payment of the value of a 50% annuity on or about July 1 of the year immediately following the Termination Year.  If such Participant’s spouse does not survive the Participant, no further EBP Benefit will be payable.
(ii)  In the event such Participant has no spouse at the time of termination, the lump sum value of a 50% annuity to age 23 shall be paid pro-rata to any surviving dependent children on or about July 1 of the year following the Termination Year. 
(iii)  In the event such Participant has no spouse or dependent children at the time of termination, the lump sum value of a 50% annuity shall be paid in equal shares to any surviving dependent parents on or about July 1 of the year following the Termination Year.
(iv)  In the event such Participant has no spouse, dependent children or dependent parents at the time of termination, no EBP Benefit will be payable.
(c) In the event a Traditional-Design Participant dies while employed by the Corporation or its affiliate, such Participant’s spouse, if such Participant was married at the time of death, will receive a 50% annuity from the Participant’s date of death through June of the year following the Termination Year, and a lump sum payment of the remaining value of such 50% annuity on or about July 1 of the year immediately following the Termination Year.  If such spouse dies while receiving the 50% annuity, such annuity will continue to any dependent children, divided equally among them and payable until the earlier of age 23 or June 30 of the 
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year immediately following the Termination Year, and a lump sum payment of the remaining value of such 50% annuity on or about July 1 of the year immediately following Termination Year. The lump sum value shall be calculated based on an annuity payable until the attainment of age 23.  If one or more of the multiple recipients receiving the 50% annuity ceases to be eligible to continue to receive such recipient’s share as the result of such recipient’s death or attainment of age 23, the remaining recipients shall continue to draw only their respective shares.
(d)  In the event a Traditional-Design Participant dies while employed by the Corporation or its affiliate and is not married at the time of his or her death, the Participant’s dependent children, if any, shall receive a 50% annuity, divided equally among them, payable until the earlier of age 23 or June 30 of the year immediately following the Termination Year, and a lump sum payment of the remaining value of such 50% annuity on or about July 1 of the year immediately following Termination Year.  The lump sum value shall be calculated based on an annuity payable until the attainment of age 23.  If there is no dependent child, the 50% annuity shall be divided and paid in equal shares to any surviving dependent parent of the deceased Participant until the earlier of their respective deaths or June 30 of the year immediately following the Termination Year, with a lump sum payment of the remaining value of such 50% annuity on or about July 1 of the year immediately following the Termination Year.  If such Participant has neither dependent children or dependent parents at the time of his or her death, no further EBP Benefit will be payable.
(e)  For the purposes of this Section 7, “dependent children” and “dependent parent” shall have the same meaning as in the Pension Plan.
(f) In the event an Account-Based Participant dies, either before or after terminating employment with the Corporation or its affiliate, the spouse of such Participant (or if 
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no spouse, the designated beneficiary) will receive a lump sum payment of the value of the Participant’s EBP Benefit calculated as described in Article III, Section 2(b).  If such death occurs on or after November 1 of a year and prior to May 1 of the following year, such lump sum shall be paid on or about July 1 of that following year.  If such death occurs on or after May 1 and prior to November 1 of a year, such lump sum shall be paid on or about January 1 of the following year.
(g)  In the event a Dual Formula Participant dies at any time before his or her entire EBP Benefit has been paid, then the provisions of subsections (a) through (e) of this Section 7, as applicable, shall apply to the portion of such Dual Formula Participant’s EBP Benefit described in Section 1(C)(a) of Article I of this Plan, and the provisions of subsection (f) of this Section 7 shall apply to the portion of such Dual Formula Participant’s EBP Benefit that is described in Section 1(C)(b) of Article I of this Plan.
ARTICLE IV
Miscellaneous
    Section 1.  (a) Linde, by action of the Board (or, for amendments with no incremental cost or increase to benefits, by action of the CHRO), may amend this Plan at any time, but any such amendment shall not adversely affect the rights of any Participant, spouse or beneficiary then receiving EBP Benefits under this plan, or the vested rights of any Participant.
    (b) The Board may terminate this Plan at any time and distribute all EBP Benefits so long as such termination and distribution meets (i), (ii) or (iii) below:
(i) The termination and distribution takes place within 12 months of Linde’s corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. § 503(b)(1)(A), and the deferred amounts are included in Participants’ 
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gross incomes in the earliest of (x) the taxable year in which the amount is actually received, or (y) the latest of the following (I) the calendar year in which the Plan termination and liquidation occurs; (II) the first calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (III) the first calendar year in which the payment is administratively practicable;
(ii) The termination and distribution is pursuant to irrevocable action taken by Linde within 30 days before, or 12 months following, a Change in Control, provided that all other plans that allow employees to make non-qualified deferrals that are aggregated with this Plan are terminated and liquidated such that all deferred compensation under the terminated plans and this Plan is paid out within 12 months of the date Linde takes all necessary action to terminate and liquidate the plans; or
(iii) Linde’s determination to terminate and liquidate the Plan does not occur proximate to a downturn in Linde’s financial health, Linde terminates and liquidates all plans that would be aggregated with this plan if the Participants in the Plan had deferrals of compensation under the other plans, no distributions under the Plan are made within 12 months of the date Linde takes all necessary action to irrevocably terminate and liquidate the Plan (other than making payments that would be made regardless of whether the action to terminate and liquidate the plan had occurred), and payments are made within 24 months of the date Linde takes all action to irrevocably terminate and liquidate the plan.
    Section 2.  Except to the extent required by law or pursuant to a domestic relations order (as defined in Code Section 414(p)(1)(B) or a successor section), no assignment of the rights and interests of a Participant or survivor under this Plan will be permitted nor shall such rights be subject to attachment or other legal processes for debts.
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      Section 3.  If the Committee determines, after a hearing, that a Participant who is eligible to receive or is receiving EBP Benefits hereunder has engaged in any activities which, in the opinion of the Committee, are detrimental to the interests of, or are in competition with, Linde or any of its affiliates, such benefits shall thereupon be terminated.
    Section 4.  The Corporation may satisfy all or any part of its obligation to provide benefits hereunder by purchasing, and distributing to a Participant or survivor, an annuity from an insurance carrier to provide such benefits.  The Corporation shall be relieved of any obligation it might otherwise have under this Plan to the extent such benefits were provided to the Participant or survivor through an annuity purchased by Union Carbide Corporation.
    Section 5.  The Committee shall have full discretionary authority to interpret and construe the Plan and shall supervise the administration and interpretation of the Plan, establish administrative regulations to further the purpose of the Plan and take any other action necessary to the proper operation of the Plan.  The Committee may delegate to one or more of its members or any other person, the right to act on its behalf in any matter connected with the administration of the Plan and has delegated authority for the Plan’s day-to-day administration to the Corporation’s Human Resources Department.  All decisions and acts of the Committee or its designee shall be final and binding upon all Participants, their beneficiaries and all other persons.
    Section 6.  The titles given herein to Sections and subsections are for reference only and are not to be used to interpret the provisions of the Plan.
    Section 7.  All questions pertaining to construction, regulation, validity and effect of the provisions of this Plan shall be determined in accordance with Connecticut law.
    Section 8.  The Corporation is not required to, and will not, for purposes of funding the Plan, segregate any monies from its general funds, create any trusts, or make any 
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special deposits, and the right of a Participant or any other person to receive benefits under the Plan shall be no greater than the right of an unsecured general creditor of the Corporation.
    Section 9.  This Plan is intended to constitute a “nonqualified deferred compensation plan” within the meaning on Code Section 409A(d)(1), and is to be construed and administered in a manner consistent therewith.
    IN WITNESS WHEREOF, and as evidence of the adoption of this Plan, the Corporation has caused this instrument to be signed by its duly authorized officer this _____ day of September, 2020.
                            LINDE INC.

                            By:_______________________________

                            Title:  

                            Date:______________________________

    18gwph-ex101_12.htm

EXHIBIT 10.1

 

 

9 September 2020

David Gryska

Dear David

GW Pharmaceuticals plc (the "Company")

I am writing to record the terms of your appointment as a non-executive Director of, GW Pharmaceuticals plc ("GW").  These terms will take effect on 9th September 2020 and will continue until terminated by either party giving to the other not less than 3 months' prior written notice or as provided for in paragraph 1 below.

	
1.
	
Appointment

	
 
	
(a)
	
Your appointment as a non-executive Director of GW is subject to the Articles of Association of GW. Your appointment as a Director will be subject to the usual rules requiring your appointment and re-appointment to be approved by shareholders. Your appointment as a non-executive Director will automatically terminate without any entitlement to compensation if you:

	
 
	
(i)
	
are removed from office by a resolution of the shareholders;

	
 
	
(ii)
	
are not re-elected to office; or

	
 
	
(iii)
	
cease to be a director by reason of your vacating office pursuant to any provision of the Company's Articles of Association.

	
 
	
(b)
	
The Company may terminate your appointment with immediate effect if you:

	
 
	
(i)
	
commit any act, whether or not in the course of your duties for the Company, which tends to bring you or the Company or Group into disrepute;

	
 
	
(ii)
	
commit a material breach of your obligations under this letter;  

	
 
	
(iii)
	
commit any serious or repeated breach or non-observance of your obligations to the Company (which include an obligation not to breach your duties to the Company, whether statutory, fiduciary or common law); 

	
 
	
(iv)
	
are declared bankrupt or have made an arrangement with, or for the benefit of, your creditors, or if a county court administration order is made against you under the County Court Act 1984;

	
 
	
(v)
	
are convicted of any arrestable criminal offence (other than an offence under road traffic legislation in the UK or elsewhere for which a fine or non-custodial penalty is imposed); 

	
 
	
(vi)
	
are unavailable to perform your duties under your appointment for 6 months consecutively or in aggregate in any period of one year; or

	
 
	
(vii)
	
you are disqualified from holding office as a Company director.

	
 
	
(c)
	
During any period of notice in accordance with this agreement, the Company may at its absolute discretion ask you not to attend any Board or General meetings or to perform any other services on its behalf.

	
 
	
(d)
	
Non-executive directors on the GW Board are typically expected to serve two three-year terms but you may be invited by the Company to serve for an additional period on the Board. Any term renewal is subject to Board review and GW AGM re-election. Notwithstanding any mutual expectation, there is no right to re-nomination by the Board, either annually or after any three-year period.

	
 
	
(e)
	
Upon the ending of your appointment for any reason, you will resign in writing from your statutory office as Director of the Company at the request of the Company, without any claim for compensation (other than for accrued and unpaid fees due under this letter), from all directorships and other offices held by you in the Company and any other member of the Group and from all trusteeships held by you of any pension scheme or other trusts established by any member of the Group.  Should you fail to do so, you irrevocably appoint any member of the Board as your attorney in your name and on your behalf to sign any documents and take such other steps as are necessary to give effect to those resignations.

	
2.
	
Time commitment

	
 
	
(a)
	
You will be expected to devote such time as is necessary for the proper performance of your duties, and you should be prepared to spend at least 12 days per annum attending meetings representing the Company business interests. You are expected to attend GW Board Meetings as and when they are held.  In connection with attendance at the meetings, you will exercise such functions that are specifically delegated to you from time to time by the Board.

	
 
	
(b)
	
You will also be required to sit on the Audit Committee of the GW Board.

	
 
	
(c)
	
We expect this role to involve your attendance at a minimum of five GW Board meetings, and six Audit Committee meetings per annum. Unless urgent and unavoidable circumstances prevent you from doing so, it is expected that you will attend these meetings.

	
 
	
(d)
	
Additional time may be required, on an ad-hoc basis, to attend meetings to deal with certain GW Board and sub-committee matters as they arise.  The nature of the role makes it impossible to be specific about the maximum time commitment, and there is always the possibility of additional time commitment in respect of preparation time and ad hoc matters which may arise from time to time, and particularly when the Company is undergoing a period of increased activity. At certain times, it may be necessary to convene additional GW Board, committee or shareholder meetings.

	
 
	
(e)
	
In accepting this role you are deemed to undertake that you have sufficient time available to commit to the proper performance of this role. Prior to acceptance of the role you will be required to provide to the Company Secretary details of your other Board appointments and significant commitments with a broad indication of the time involved and will be required to update the Company Secretary from time to time of any changes to these commitments.

	
3.
	
Remuneration and expenses

	
 
	
(a)
	
Your fee for participation will be $60,000 per annum and will be subject to any deduction required by law.  This will be paid monthly in arrears in equal instalments.  You are not eligible for any other benefits.

Your fee as a member of the Audit Committee will be $10,000 per annum

Additional fees may be payable in future if you are asked to become a member of the other Board sub-committees or if you are asked to take up the role of Chair of any of these committees.

	
 
	
(b)
	
Your fees will be reviewed from time to time by the GW Board. It is our current practice to review these fees at the end of each calendar year although such review does not imply nor guarantee any increase.

	
 
	
(c)
	
You will not be entitled to participate in any Group pension scheme.

	
 
	
(d)
	
You will not be entitled to any other fees or benefits except as provided for in this letter, nor on termination will you be entitled to any compensation for loss of office except such fees as may have accrued to the date of termination (if any).

	
 
	
(e)
	
You will be eligible to participate in the GW Pharmaceuticals Long Term Incentive Plan. Grants of equity based incentives under the terms of this scheme are made at the discretion of the Board, usually on an annual basis. 

	
 
	
(f)
	
You will be reimbursed for all reasonable out-of-pocket expenses properly incurred by you on Company business, including costs associated with you attending UK Board, Committee and General Meetings. Reimbursement would include the reasonable cost of obtaining legal advice, if circumstances should arise where it was necessary for you to seek such advice separately, about your responsibilities as a non-executive director of the Company although you should initially raise any such concerns with the Chairman of the Company. This advice should be obtained, and reimbursement will only be made, in accordance with any formal procedure for directors to take independent professional advice adopted from time to time by the Company and a copy of the current version will be supplied to you. Claims for reimbursement should be accompanied by evidence of expenditure.

	
4.
	
Insurance

The Company will, at its expense, provide you with director's and officer's liability insurance, subject to the provisions governing such insurance and on such terms as the Board may from time to time decide (including but not limited to terms relating to the level of cover, deductibles, caps, exclusions and aggregate limits) and subject to the obtaining of insurance at reasonable rates of premium.  No undertaking is given regarding the continuation of this insurance, other than that you will be covered for as long as it remains in place for the directors of the Company. A copy of the current policy is available upon request from the Company Secretary.  The risks covered and time limitations are subject to the terms of the policy as amended from time to time.  Insurance cover will not extend to loss due to fraud, dishonesty, wilful default or criminal behaviour.

	
5.
	
Duties

	
 
	
(a)
	
You will be expected to perform your duties, whether statutory, fiduciary or common-law, faithfully, efficiently and diligently to a standard commensurate with both the functions of your role and your knowledge, skills and experience.

	
 
	
(b)
	
You will exercise your powers in your role as a non-executive director having regard to relevant obligations under prevailing law and regulation, including the Companies Act 2006. You are also required to comply with the requirements of the U.S. Securities and Exchange Commission and Nasdaq, including the independence standards set forth in Rule 10A-3(b) of the Securities Exchange Act of 1934, as amended and the independence and audit committee qualification requirements set forth under Rule 5605 of the Nasdaq Listing Rules.

	
 
	
(c)
	
You will be advised by the Company Secretary where these differ from requirements in the UK. 

	
 
	
(d)
	
You will have particular regard to the general duties of directors as set out in Part 10, Chapter 2 of the Companies Act 2006, including the duty to promote the success of the company: 

"A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to - 

	
 
	
(a) 
	
the likely consequences of any decision in the long term, 

	
 
	
(b) 
	
the interests of the company's employees, 

	
 
	
(c) 
	
the need to foster the company's business relationships with suppliers, customers and others, 

	
 
	
(d) 
	
the impact of the company's operations on the community and the environment, 

	
 
	
(e) 
	
the desirability of the company maintaining a reputation for high standards of business conduct, and 

	
 
	
(f) 
	
the need to act fairly as between members of the company."

	
 
	
(e)
	
In your role as non-executive director you will be required to: 

	
 
	
•
	
constructively challenge and help develop proposals on strategy; 

	
 
	
•
	
scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance; 

	
 
	
•
	
satisfy yourself on the integrity of financial information and that financial controls and systems of risk management are robust and defensible;

	
 
	
•
	
satisfy yourself that the company is in substantial compliance with relevant laws and regulations

	
 
	
•
	
take opportunities such as attendance at general and other meetings, to understand shareholder concerns and to meet with key customers and members of the workforce from all levels of the organisation to have an understanding of the business and its relationships with significant stakeholders;

	
 
	
•
	
determine appropriate levels of remuneration of executive directors and have a prime role in appointing and, where necessary, removing executive directors, and in succession planning; 

	
 
	
•
	
devote time to developing and refreshing your knowledge and skills; 

	
 
	
•
	
uphold high standards of integrity and probity and support me and the other directors in instilling the appropriate culture, values and behaviours in the boardroom and beyond; 

	
 
	
•
	
insist on receiving high-quality information sufficiently in advance of board meetings; and 

	
 
	
•
	
take into account the views of shareholders and other stakeholders where appropriate. 

	
 
	
(f)
	
You will be required to exercise relevant powers under, and abide by, GW’s Articles of Association. 

	
 
	
(g)
	
You will be required to exercise your powers as a director in accordance with GW’s policies and procedures.

	
 
	
(h)
	
You will disclose any direct or indirect interest which you may have in any matter being considered at a board meeting or committee meeting and, save as permitted under the Articles of Association, you will not vote on any resolution of the Board, or of one of its committees, on any matter where you have any direct or indirect interest. 

	
 
	
(i)
	
You will notify the Chairman immediately if you become aware of any matter which may be prejudicial to the interests of the Company, or may affect your fitness to hold office as a company director, or which may affect the fitness of any of your fellow directors (or proposed directors) to hold office as a company director.

	
 
	
(j)
	
You will immediately report to the Chairman your own wrongdoing or the wrongdoing or proposed wrongdoing of any employee or director of which you become aware. 

	
 
	
(k)
	
Unless specifically authorised to do so by the Board, you will not enter into any legal or other commitment or contract on behalf of the Company.

	
6.
	
Outside interests

During your appointment you may not, without the prior approval of the Board, accept a directorship of a company or provide your services to anyone who is a competitor of the Group. The Board's agreement will not be given if such appointment or involvement would conflict with or is likely to interfere with this appointment. It is the parties understanding that the definition of a competitor shall be restricted to a project, business or activity, directly or indirectly, involving cannabinoid research. Please let the Company Secretary have a list of your current commitments for our records and keep him updated in that respect.

	
7.
	
Conflicts of interests

	
7.1
	
You are under a duty to avoid any situation in which you have, or can have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the Company.  This applies in particular to the exploitation of any property, information or opportunity (regardless of whether the Company could take advantage of that property, information or opportunity).

	
7.2 
	
It is nevertheless acknowledged that you may wish to have business interests other than those of the Company.  

	
7.3
	
You have declared to the Board that there is no situation in which you have, or could have, a direct or indirect interest that conflicts, or possibly may conflict, with the interests of the Company (a “Conflict Situation”).  

	
7.4
	
You confirm that you will disclose to the Chairman in writing immediately upon your becoming aware of anything which might reasonably be expected to lead to a Conflict Situation or to any change in an existing Conflict Situation that has been authorised. 

	
7.5
	
You confirm that you will not, and you will take reasonable steps to ensure that none of your Connected Persons will, without the prior authority of the Board, accept any other appointment or enter into any other transaction or arrangement which might reasonably be expected to lead to a Conflict Situation.  The Board is entitled, at its discretion, to give or withhold its authority for any Conflict Situation on any such terms and conditions as it may decide. 

	
7.6
	
You confirm that you will comply with all terms and conditions of any authority granted to you by the Board or otherwise for any Conflict Situation. 

	
8.
	
Confidentiality

You should not, during your appointment (except in the proper performance of your duties and then only to those who need to know such information) or after it has ceased (except as required by law or which has entered into the public domain other than as a result of your unauthorised disclosure), disclose to any person, company or other organisation or use otherwise than for the benefit of the Group any confidential information or trade secrets concerning its business. This includes but is not limited to:

	
 
	
(a)
	
corporate and marketing strategy, acquisition and investment proposals, business development and plans, maturing business opportunities, sales reports and research results;

	
 
	
(b)
	
business contacts, lists of customers and suppliers and details of contracts with customers and suppliers and their current or future requirements;

	
 
	
(c)
	
budgets, financial plans and management accounts, trading statements and other financial reports and information;

	
 
	
(d)
	
unpublished price sensitive information about the Group; 

	
 
	
(e)
	
confidential details as to the design of the Company’s or Group’s inventions or developments relating to future products whether or not in the case of documents or other written materials whether or not marked as confidential; and

	
 
	
(f)
	
any document marked "confidential" and any information which by its nature is commercially sensitive.

	
9.
	
Compliance

	
 
	
(a)
	
You are expected to comply with the Company's Articles of Association, the City Code on Takeovers and Mergers, as applicable, relevant stock exchange rules and regulations and the Company's relevant internal codes. In particular during your appointment you will comply, and will procure, so far as you are able, that your spouse or Civil Partner and dependent children (if any) or any trust in which you or your spouse or Civil Partner may be concerned or interested as trustee or beneficiary, comply with any code of conduct relating to securities transactions by directors and specified employees adopted by the Company from time to time. 

	
 
	
(b)
	
You will promptly give the Company such information as the Company or any member of the Group may require to enable it to comply with its legal and regulatory obligations whether to any securities or investment exchange or regulatory or governmental body to which any member of the Group is, from time to time, subject or howsoever arising.

	
10.
	
Return of Company property

When your appointment ends, you should, unless otherwise agreed in writing, immediately return all documents and other property belonging to any member of the Group and which may be in your possession or under your control. No copies (including electronic copies) should be retained by you or by anyone on your behalf.

	
11.
	
Data protection

Personal data

Processing of personal data and our policies

	
 
	
(a)
	
Information relating to an individual (or from which an individual may be identified) is called “personal data”. 

	
 
	
(b)
	
In processing personal data, the Company is required to comply with the law on data protection. To help achieve this, data privacy policies have been adopted.  Copies may be found on our GW Connect Intranet.  You must read these and comply with them in carrying out your role.  If you are unclear how the policies apply or, more generally, what you need to do to comply with the law on data protection, speak to the Chairman in the first instance who may direct your query as appropriate. 

Data protection principles

	
 
	
(c)
	
In complying with the law on data protection, the Company is required to comply with what are known as data protection principles.  In performing your role and carrying out your responsibilities, you must do your best to ensure that the Company complies with these principles. 

	
 
	
(d)
	
A key element of the data protection principles is the duty to ensure that data is processed securely and protected against unauthorised or unlawful processing or loss.  Key elements include the following:

(i)You must ensure that laptops, memory sticks, phones and other mobile devices are password protected and encrypted.  You must not take such devices outside the office without encryption.  You must take care of them and keep them secure. 

(ii)You must use strong passwords, changing them regularly and not sharing them with unauthorised colleagues;

(iii)You must not access other individuals’ personal data unless in the course of your work;

Data breach – and urgent notification

	
 
	
(e)
	
If you discover a data breach, you must notify the Chairman and the CIO/Chief Legal Officer immediately – and if possible, within one hour.  Depending on context, you may then need to provide further information on the circumstances of the breach.

	
 
	
(f)
	
A data breach occurs when there is destruction, loss, alteration or unauthorised disclosure of or access to personal data which is being held, stored, transmitted or processed in any way.  For example, there is a data breach if our servers are hacked or if you lose a laptop or USB stick or send an email to the wrong person by mistake.

	
 
	
(g)
	
Failure to notify a breach or to provide information as set out above will be treated seriously and disciplinary action may be taken.

	
 
	
(h)
	
Further information regarding how the Company handles data breach is available on our GW Connect Intranet site.  

Why the Company processes personal data

	
 
	
(i)
	
For information on the nature of the data processed, why it is processed, the legal basis for processing and related matters, please refer to the Privacy Notice which may be found on our GW Connect Intranet site.  In summary: 

(i)Personal data is processed relating to you for the purposes of the Company business including management, administrative, employment and legal purposes.  

	
 
	
(j)
	
The summary above is for information only.  Consent is not, in general, relied upon as a legal basis for processing.  Agreeing the terms of this Agreement will not constitute your giving consent to the processing of your data.  

	
 
	
(k)
	
The Company reserves the right to amend the policy and protocol documents referred to above from time to time. 

	
12.
	
Non-compete

By countersignature of this letter and in consideration for the fees payable to you under this letter, you agree you will not (except with prior written consent of the GW Board) directly or indirectly do or attempt to, for the period of 12 months immediately after the termination of your office, to any material extent, undertake, carry on or be employed, engaged or interested in any capacity in the supply or proposed supply of Competitive Services within the Territory. For the purposes of this paragraph, "Competitive Services" means any business connected to the marketing, sales or distribution, or development or proposed development of pharmaceuticals from cannabinoids which is competitive with the Company's or GW, or GW Pharma's businesses; and "Territory" means England, Wales, Scotland and/or Northern Ireland and any other country, or, in the United States, any state, which the Company or any member of the Group is operating or planning to operate a competitive business at the end of your appointment.

	
13.
	
Rights of third parties

The Contracts (Rights of Third Parties) Act 1999 shall not apply to this letter. No person other than you and the Company shall have any rights under this letter and the terms of this letter shall not be enforceable by any person other than you and the Company.

	
14.
	
Status

As a non-executive Director you are an office-holder, not an employee of the Company.  You warrant that you are not subject to any restrictions which prevent you from holding office as a director or from fulfilling any of the obligations set out in this letter.

	
15.
	
Miscellaneous 

	
 
	
(a)
	
For the purpose of this letter: 

the "Board" shall mean the board of directors of the Company as constituted from time to time;

"Civil Partner" means a civil partner as defined by the Civil Partnership Act 2004; 

“Connected Person” means any person connected with a director as defined in section 252 Companies Act 2006; and

the "Group" means any of the following from time to time: the Company, its subsidiaries and subsidiary undertakings and any holding company or parent undertaking of the Company and all other subsidiaries and subsidiary undertakings of any holding company or parent undertaking of the Company, where "holding company", "parent undertaking", "subsidiary" and "subsidiary undertaking" have the meanings given to them in the Companies Act 2006.

	
 
	
(b)
	
Your appointment with the Company and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) will be governed by and construed in accordance with the law of England and Wales.  You and the Company irrevocably agree that the courts of England and Wales will have non-exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with this appointment or its subject matter or formation (including non-contractual disputes or claims). 

	
 
	
(c)
	
This letter constitutes the entire terms and conditions of your appointment.  No variation or addition to this letter and no waiver of any provision of it will be valid unless in writing and signed by or on behalf of both parties.  You agree that you will have no remedies in respect of any representation or warranty (whether made innocently or negligently) that is not set out in this letter and you will not have any claim for innocent or negligent misrepresentation based on any statement in this letter.

	
 
	
(d)
	
No variation or modification of this letter will be effective unless it is in writing and signed by you and the Company (or respective authorised representatives). 

I would ask you to countersign the enclosed copy of this letter to confirm the basis of your appointment with the Company and to show acceptance of the terms of this letter by executing it as a deed.

I look forward to working with you to the general benefit of our shareholders.

Yours sincerely

/s/ Geoffrey Guy

Geoffrey Guy

Chairman, GW Pharmaceuticals plc

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