Document:

exv10w2

 

Exhibit 10-2

DATED: 22nd March 2002

GANNETT U.K. LIMITED

and

BARCLAYS BANK TRUST COMPANY LIMITED

TRUST DEED AND RULES

OF

THE GANNETT U.K. LIMITED

INLAND REVENUE APPROVED

SHARE INCENTIVE PLAN

Approved by a Board resolution on: 21 February 2002

Approved by the Inland Revenue on: 18 April 2002

Amended by a Board Resolution on 4 May 2004 with such amendments being approved

by the Inland Revenue on 25 June 2004

Inland Revenue reference no: A1444/SY & A1444/PC

Prepared by Landwell

on behalf of PricewaterhouseCoopers

Landwell

St Andrews House

20 St Andrews Street

London

EC4A 3TL

Tel: 020 7212 1616

Fax: 020 7212 1570

Reference: NR/PS/5045

 

 

CONTENTS

Trust Deed

Clause

1. Interpretation

2. Object of Trust

3. Achieving Object of Trust

3.1 Monies received from Participating Companies

3.2 Partnership Share Monies

3.3 Dividend Shares

4. Unused Funds

4.1 Trustee to apply unused funds for costs etc

4.2 Trustee to account for monies upon termination of Plan

5. Right to deal with reconstructions, etc

5.1 Trustee to act on Participant’s directions

5.2 Trustee to use reasonable endeavours to obtain directions

5.3 No liability for acting on directions

6. Accountability for PAYE and other deductions

7. Maintenance of Trust records

7.1 Trustee to procure preparation of Trust records

7.2 Duty to keep records of PAYE deductions

7.3 Participation in connected Share Incentive Plans

7.4 Trustee to submit Trust records to Company

7.5 Company’s right to inspect Trust records

8. Securities and title

8.1 Securities may be placed in custody

8.2 More than one Trustee may be registered proprietor

9. Application of Plan to Subsidiaries

9.1 Extension of Plan to Subsidiaries

9.2 Circumstances where Plan may cease to apply to Subsidiary

9.3 Trustee not liable to account to former Participating Companies

10. Duties of Participating Companies

(2)

 

10.1 Duty to contribute sums and provide information

10.2 Continuing liability of former Participating Companies

11. Protection of the Trustee

11.1 Limited liability for monetary obligations

11.2 Trustee to comply with Company’s directions

11.3 Indemnity

11.4 No obligation to become involved in management

12. Additional Powers

12.1 Additional powers of the Trustee

12.2 Trustee’s power to invest monies etc

12.3 Trustee’s power of sale

13. Proceedings of Trustees

13.1 Scope of clause

13.2 Regulations for conduct of business

13.3 Quorum for meetings of Trustees

13.4 Majority voting of Trustees

13.5 Written resolutions of Trustees

14. Administration

14.1 Delegation

14.2 Trustee being a company

14.3 Minutes of meetings

14.4 Professional advice

14.5 Trustee’s agents

14.6 Trustee may execute deeds etc

15. Remuneration and interests of the Trustees

15.1 Individual Trustees

15.2 Professional Trustees

15.3 Corporate Trustees

15.4 Right to be employed by Company

16. Permitted dealings of Trustees

16.1 Trustee permitted to hold shares etc

16.2 No requirement to account for benefits

17. Number, appointment, retirement and removal of Trustees

17.1 Minimum number of Trustees

(3)

 

17.2 Statutory power to appoint new and additional Trustees

17.3 Power to appoint additional Trustees

17.4 Company ceasing to exist

17.5 Removal of Trustees

17.6 Retirement of Trustees

17.7 Transfer of trust property following removal or retirement of Trustees

17.8 Section 37 of the Trustee Act 1925

17.9 Residence of Trustees

18. Delegation of Administration by the Company and other matters

18.1 Delegation of Administration

18.2 Exercise of powers

18.3 Information supplied by Participating Company

19. Duration and Winding up of the Plan

19.1 Termination on expiry of the Trust Period

19.2 Outstanding liabilities

19.3 Completion of obligations

20. Supremacy of Trust Deed over rules of Plan

21. Governing Law and Jurisdiction

21.1 Governing Law

21.2 Jurisdiction

21.3 Jurisdiction agreement for benefit of Company

21.4 Participant deemed to submit to such jurisdiction

22. Amendment of Trust Deed and Rules

22.1 Amendment of Deed and Rules

22.2 Amendments to be binding

23. General Provisions

23.1 Counterparts

23.2 Irrevocability

(4)

 

Schedule 1

Rules of the Gannett U.K. Limited

Inland Revenue approved Share Incentive Plan

Rule

1. Interpretation

2 Purpose of the Plan

3 Eligibility to participate/Participation on same terms

PART I — FREE SHARES

4 Issue of Invitations

4.1 Discretion of Executive Compensation Committee

4.2 Limit on individual participation

4.3 Contents of Free Shares Invitations

4.4 Free Shares Agreement and Free Shares Invitations

4.5 Election to participate in any Award of Free Shares

5 Allocation of free shares by reference to performance

5.1 Free Shares may be allocated by reference to performance

5.2 Performance Allowances to apply to all

5.3 Executive Compensation Committee to provide information

5.4 Use of Method 1 or Method 2

5.5 Performance Allowances: method 1

5.6 Performance Allowances: method 2

5.7 Same terms basis for Free Shares Awards

6 Performance Targets

6.1 Imposition of Performance Targets

6.2 Nature of Performance Targets

6.3 Membership of Performance Unit

6.4 Substitution, variation or waiver of Performance Targets

7 Appropriation of Free Shares

7.1 Provision of information by the Company to the Trustees

7.2 Appropriation

7.3 Notification of Appropriation to Participants

8 Restrictions on Dealings in, and permitted transfers of Free Shares

8.1 Restrictions on disposals by Participants

8.2 Restrictions on disposals by the Trustee

(5)

 

8.3 Transfer of Free Shares after the Free Shares Holding Period

9 Cessation of Relevant Employment and early transfer of Free Shares

9.1 Trustee to be notified of cessation of Relevant Employment

9.2 Early transfer of Free Shares

9.3 Forfeiture of Free Shares

9.4 Injury, disability, redundancy, retirement etc

9.5 Death

PART II  — PARTNERSHIP SHARES

10 Partnership Shares Invitations

10.1 Issue of Partnership Shares Invitations

10.2 Timing of Partnership Shares Invitations

10.3 Contents of Partnership Shares Invitations

10.4 Partnership Shares Agreement and Partnership Shares Invitations

10.5 Contents of Partnership Shares Agreement

10.6 Partnership Shares Agreement may be withdrawn

10.7 Excess salary deductions

10.8 Scaling down

10.9 Partnership Share Money held for Eligible Employee

10.10 Interest on Partnership Share Money

11 Instructions given during Accumulation Period

11.1 Variation of salary deductions and intervals

11.2 Notice to suspend salary deductions

11.3 Notice to terminate Partnership Shares Agreement

11.4 Company to give effect to notices

11.5 Partnership Shares Agreement to apply to new holding

12 Acquisition of Partnership Shares

12.1 Acquisition of Shares by Trustees (no Accumulation Period)

12.2 Acquisition of Shares by Trustees (with Accumulation Period)

12.3 Notification of acquisition to Participants

13 Transfer of Partnership Shares by Participant

13.1 Participants may request transfer of Partnership Shares

13.2 Trustee to comply with request

14 Cessation of Relevant Employment

(6)

 

14.1 Cessation of Relevant Employment prior to the Partnership Shares Acquisition Date

14.2 Trustee to be notified of cessation of Relevant Employment following the

Partnership Shares Acquisition Date.

14.3 Transfer of Partnership Shares on cessation of Relevant Employment

PART III — MATCHING SHARES

15 Notification of Matching Shares

15.1 Relationship to Partnership Shares

15.2 Additional contents of Partnership Shares Agreement

16 Appropriation of Matching Shares

16.1 Provision of information by the Company to Trustee

16.2 Appropriation of Matching Shares

16.3 Notification of Appropriation to Participants

17 Restrictions on dealings in, and permitted transfers of Matching Shares

18 Cessation of Relevant Employment and early withdrawal of Partnership Shares

18.1 Trustee to be notified of cessation of Relevant Employment

18.2 Early withdrawal of Partnership Shares

18.3 Early transfer of Matching Shares

18.4 Forfeiture of Matching Shares

18.5 Injury, disability, redundancy, retirement etc

18.6 Death

PART IV  — DIVIDEND SHARES

19 Provision of Dividend Shares

19.1 Relationship to Plan Shares

19.2 Direction revocable

19.3 Dividend not invested in Dividend Shares

19.4 Timing of acquisition of Dividend Shares

19.5 Participants to be treated equally

20 Amount and type of Dividend Shares

20.1 Type of Shares to be used as Dividend Shares

20.2 Calculation of number of Dividend Shares

21 Notification of acquisition of Dividend Shares

22 Restrictions on dealings in and permitted transfers of Dividend Shares

(7)

 

23 Cessation of Relevant Employment

23.1 Trustee to be notified of cessation of Relevant Employment

23.2 Early transfer of Dividend Shares (except on death)

23.3 Early transfer of Dividend Shares (on death)

23.4 Information to be given to the Participant

PART V — GENERAL REQUIREMENTS

24 Requirements generally applicable to Plan Shares

24.1 Participants may elect not to participate

24.2 Individuals eligible for Appropriation

24.3 Shares not Appropriated or forfeited

24.4 Shares ceasing to qualify

24.5 Death of Participant

24.6 Funds to be provided by Participating Companies

24.7 Shares purchased off market by the Trustee

24.8 Subscription price

24.9 Rights attaching to subscribed Shares

24.10 Shares with different rights

24.11 Foreign Dividends

24.12 Timing of contributions to Trustee

25 Limit on number of Shares available under the Plan

25.1 General

25.2 Limits

25.3 Computation

26 Limit on funding of Plan

27 Permitted dealings in Plan Shares

28 Receipts by the Trustee

29 Exercise of voting rights attaching to Plan Shares

29.1 Trustee to notify Participants of resolutions

29.2 Participant to instruct Trustee how to vote

29.3 Notification of Participants’ directions to Trustee to be in writing

30 Company reconstructions

30.1 New holdings of Shares

30.2 Meaning of “new holding”

(8)

 

31 Rights Issues

31.1 Application of rule

31.2 Trustee to provide information to Participants

31.3 Participants to give written directions to Trustee

31.4 Cash amounts arising to be dealt with by Trustee

31.5 Failure by Participant to give any direction

32 Duty to account for PAYE on cash amounts

32.1 Trustee to make payments

32.2 Trustee to deal with PAYE deductions

33 Duty to account for PAYE on transfers of assets

33.1 Trustee to make PAYE deductions

33.2 Trustee to deal with PAYE deductions

33.3 Duty to keep records of PAYE deductions

34 Apportionment of Capital Receipts

34.1 Treatment of Capital Receipts

34.2 Trustee to inform Participants

35 Termination of Plan

35.1 Company may terminate Plan

35.2 Consequences of termination of Plan

35.3 Inland Revenue withdrawal of Plan approval

36 Shares from Qualifying Share Ownership Trusts

37 Notices

37.1 Notice by Company, a Participating Company or the Trustee

37.2 Deceased Participant

37.3 Notice to Company or Trustee

37.4 Trustee to distribute Company documentation

37.5 Notification of liability to Income Tax

38 Protection of the Trustee

39 Application for listing or admission to trading of Plan Shares

40 Relationship of Plan to contract of employment

41 Alterations

(9)

 

THIS DEED of TRUST is made on 22nd March 2002

BETWEEN:

	(1)	 	Gannett U.K. Limited (incorporated in England and Wales under company
number 3795655) whose registered office is situated at Newspaper House,
34-44 London Road, Morden, Surrey SM4 5BR (“the Company”);
	 
	(2)	 	Barclays Bank Trust Company Limited (incorporated in England and Wales
under company number 920880) whose registered office is situated at 54
Lombard Street, London EC3P 3AH (“the Trustee”); and
	 
	(3)	 	the Participating Companies detailed in attached Schedule 2.

PRELIMINARY:

	(A)	 	The Executive Compensation Committee and the Company wish to establish a
share incentive plan approved in accordance with the provisions of
Schedule 2 and constituting an Employees’ Share Scheme. The Executive
Compensation Committee or its delegates will administer the Plan.
	 
	(B)	 	The Plan has been approved by the Board of Directors of Gannett Co., Inc.
by a resolution passed at a meeting held on 21 February 2002.
	 
	(C)	 	The Trustee has agreed to act as the first trustee of the Plan.
	 
	(D)	 	The Trustee has received the sum of £50 from the Company as an initial
contribution to the trusts established by this Trust Deed.

(10)

 

THE TRUST DEED WITNESSES as follows:

	1	 	INTERPRETATION

	 	 	In this Trust Deed:

	1.1	 	unless the context otherwise requires the definitions set out in Rule 1.1
of Schedule 1 shall apply and the following words and expressions shall
have the following meanings:

	 	 	 
	Beneficiary

	 	a bona fide employee or former employee of the
Company, or a Subsidiary company;
	 
	 	 
	Charitable

	 	exclusively charitable under English law;
The Executive Compensation Committee of
	 
	 	 
	Executive Compensation

Committee

	 	Gannett Co., Inc. or a committee of persons
(delegates) appointed thereby;
	 
	 	 
	Trust Deed

	 	this trust deed in its present form or as
amended from time to time;
	 
	 	 
	Trust Period

	 	the period commencing on the date of this
Trust Deed and ending on the expiry of 80
years from the date of this Trust Deed and so
that the period of 80 years from the date of
this Trust Deed shall be the perpetuity period
for the purpose of section 1 of the
Perpetuities and Accumulations Act 1964; and
	 
	 	 
	Trustee

	 	Barclays Bank Trust Company Limited and any
additional or replacement trustee from time to
time of the Plan.

	1.2	 	Unless otherwise specified, the interpretation provisions of Rule 1.2 of Schedule 1 shall apply.
	 
	1.3	 	References to clauses are to clauses of this Trust Deed.

(11)

 

	2	 	OBJECT OF TRUST

	 	 	 	All Plan Shares held by the Trustee will be held UPON TRUST for the
Beneficiaries respectively entitled to them under the Plan subject to
the provisions set out below and to the power of the Trustee to transfer
or cause to be transferred to the person beneficially entitled to them
any Plan Shares in accordance with the Plan.

	3	 	ACHIEVING OBJECT OF TRUST

	3.1	 	Monies received from Participating Companies

	 	 	 	Subject to the provisions set out below the Trustee shall apply monies it
receives from the Participating Companies in the acquisition of Shares
for Appropriation or for the purposes of clause 4.1 and to hold such
Shares once Appropriated and all other trust property deriving from such
Shares on trust for the Participants to whom such Shares have been
Appropriated and to apply and deal with the same in accordance with the
Plan provided always that:

	3.1.1	 	the Trustee shall not dispose of a Participant’s Free Shares during the
Free Shares Holding Period, or Matching Shares during the Matching Shares
Holding Period (whether by transfer to the Participant or otherwise)
except as provided in the Rules;
	 
	3.1.2	 	the Trustee shall not (subject to the Rules) dispose of a Participant’s
Free Shares after the end of the Free Shares Holding Period or Matching
Shares after the end of the Matching Shares Holding Period except pursuant
to a direction validly given by or on behalf of the Participant or any
person in whom the beneficial interest in those Shares is for the time
being vested; and
	 
	3.1.3	 	the Trustee shall deal with any right attaching to Free Shares or
Matching Shares to be allotted or to acquire other shares, securities or
rights of any description only pursuant to a written direction given by or
on behalf of the Participant or any person in whom the beneficial interest
in such Free Shares or Matching Shares is for the time being vested.

	3.2	 	Partnership Share Monies

	 	 	 	Subject to the provisions set out below the Trustee shall apply
Partnership Share Money in the acquisition of Partnership Shares and
shall hold such shares once acquired on trust for the Participants on
whose respective behalf they have been acquired and apply and deal with
the same in accordance with the Plan provided always that:

	3.2.1	 	the Trustee shall not (subject to the Rules) dispose of a Participant’s
Partnership Shares (whether by transfer to the Participant or otherwise)
except pursuant to a direction validly given by or on behalf of the
Participant or any person in whom the beneficial interest in the Shares is
for the time being vested; and

(12)

 

	3.2.2	 	the Trustee shall deal with any right attaching to Partnership Shares to
acquire other shares, securities or rights of any description only
pursuant to a written direction given by or on behalf of the Participant
or any person in whom the beneficial interest in the Partnership Shares is
for the time being vested.

	3.3	 	Dividend Shares

	 	 	 	Subject to the provisions set out below the Trustee shall hold Dividend
Shares acquired on trust for the Participants on whose respective behalf
they have been acquired and apply and deal with the same in accordance
with the Plan provided always that:

	3.3.1	 	the Trustee shall not dispose of a Participant’s Dividend Shares during
the Dividend Shares Holding Period (whether by transfer to the Participant
or otherwise) except as provided by the Rules;
	 
	3.3.2	 	the Trustee shall not (subject to the Rules) dispose of a Participant’s
Dividend Shares (whether by transfer to the Participant or otherwise)
except pursuant to a direction validly given by or on behalf of the
Participant or any person in whom the beneficial interest in those Shares
is for the time being vested; and
	 
	3.3.3	 	the Trustee shall deal with any right attaching to Dividend Shares to
acquire other shares, securities or rights of any description only
pursuant to a written direction given by or on behalf of the Participant
or any person in whom the beneficial interest in the Dividend Shares is
for the time being vested.

	4	 	UNUSED FUNDS

	4.1	 	Trustee to apply unused funds for costs etc

	 	 	 	Where pursuant to the Plan the Trustee holds any monies, shares,
securities or other assets which represent or represent income derived
from:

	4.1.1	 	any monies or assets received from the Participating Companies for the
purposes of the Plan but which have not been applied and which are not
required to be applied under the Plan in an Appropriation; or
	 
	4.1.2	 	any Capital Receipt of less than £3 which would be distributable to a
Participant save for the provisions concerning such sums in the Rules; and
	 
	4.1.3	 	any assets relating to the Plan (including any amounts specifically paid
to the Trustee as a contribution to any costs, charges and expenses
incurred in connection with the establishment and operation of the Plan)
which are not held for the benefit of a

(13)

 

	 	 	Participant in consequence of an Appropriation to him or any
acquisition of Partnership Shares by him and which are not required
to be applied under the Plan

	 	 	 	then the Trustee may apply such assets or the sale proceeds thereof in or
towards any reasonable costs, charges and expenses of the Plan and may
during the Trust Period and subject to the law relating to accumulations
accumulate any income thereon and hold the same for the general purposes
of the Plan. The Trustee shall notify the Company on request of all
amounts and assets held for such purposes.

	4.2	 	Trustee to account for monies upon termination of Plan

	 	 	 	If at any time the Plan is terminated the Trustee shall account to the
Participating Companies for any unused monies then held on the trusts of
clause 4.1. Notwithstanding such termination the Trustee shall continue
to administer the Plan in accordance with the Trust Deed and the Rules.
At the earlier of the expiry of the Trust Period and the third
anniversary of the termination of the Plan the Trustee shall convert into
money any trust property held subject to the trusts of the Plan declared
in the Trust Deed and which are not either Partnership Shares or Dividend
Shares nor Appropriated to Participants and shall pay such money to such
one or more charitable organisations and if more than one in such
proportions as the Trustee shall, in its absolute discretion determine.
The receipt of the proper officer of the recipient charitable
organisation shall be a valid discharge of the Trustee for the benefit
received by it.

	5	 	 RIGHT TO DEAL WITH RECONSTRUCTIONS, ETC

	5.1	 	Trustee to act on Participant’s directions

	 	 	 	The Trustee may at any time on behalf of any Participant who has given
a direction to the Trustee under the Rules (but not otherwise) enter
into any compromise or arrangement with respect to or may release or
forbear to exercise all or any of its rights as shareholder whether in
connection with a scheme of reconstruction or amalgamation or
otherwise and may accept in or towards satisfaction of all or any of
such rights such consideration as such Participant shall direct
whether in the form of cash, stock, shares, debentures, debenture
stock or obligations or securities without the Trustee being in any
way liable or responsible for any loss resulting from complying with
any such direction or any liability or increased liability of such
Participant to tax or in respect of any inadequacy or alleged
inadequacy in the nature or amount of such consideration.

	5.2	 	Trustee to use reasonable endeavours to obtain directions

	 	 	 	The Trustee shall use reasonable endeavours to ensure that the directions
of Participants are obtained in respect of any matters affecting the
rights of holders of Plan Shares.

	5.3	 	No liability for acting on directions

(14)

 

	 	 	 	The Trustee shall not be liable or responsible for any loss or any
liability or increased liability of a Participant to tax arising out of
the failure of such Participant to give a direction to the Trustee or the
failure of such Participant to give a direction to the Trustee within a
particular time or if the Participant has directed the Trustee to use its
discretion in any way arising out of the bona fide exercise by the
Trustee of that discretion.

	6	 	ACCOUNTABILITY FOR PAYE AND OTHER DEDUCTIONS

	 	 	 	The Company, any Participating Company or the Trustee may account to the
Inland Revenue or other authority concerned for any amounts deducted from
payments made, or assets transferred, pursuant to the Plan in respect of
income tax or any other deductions required by statute or regulations
made thereunder.

	7	 	MAINTENANCE OF TRUST RECORDS

	7.1	 	Trustee to procure preparation of Trust records

	 	 	 	The Trustee shall maintain all necessary accounts (including the accounts
of individual employees) records and other documents necessary to carry
out its obligations in connection with;:

	7.1.1	 	the proper administration of the Plan; and
7.1.2 the PAYE obligations of the employer company (as that expression is
defined in section 510 of ITEPA 2003) so far as they relate to the Plan.

	7.2	 	Duty to keep records of PAYE deductions

	 	 	 	The Trustee shall keep records of all PAYE deductions, including payments
to the Participating Companies in respect of PAYE obligations.

	7.3	 	Participation in connected Share Incentive Plans

	 	 	 	If, in the same Year of Assessment that a Participant participates in the
Plan, that Participant has already participated in one or more Share
Incentive Plans (apart from the Plan), the Trustee shall maintain records
of such Participants.

	7.4	 	Trustee to submit Trust records to Company

	 	 	 	The Trustee shall submit to the Company such reports or other information
as it may reasonably require for the purpose of ensuring that the Plan is
properly administered and without prejudice to the generality of the
foregoing the Trustee shall submit to the Company copies of all documents
including the annual returns which have been supplied to the Board of
Inland Revenue within twenty-one days of their being so supplied.

(15)

 

	7.5	 	Company’s right to inspect Trust records

	 	 	 	The Company shall at all times be entitled on service of 3 days written
notice or as otherwise agreed between the Company and the Trustee to
inspect all accounts, documents and records maintained by the Trustee for
the purposes of the Plan and may at any time and at its absolute
discretion audit or cause to be audited those accounts, documents and
records.

	8	 	SECURITIES AND TITLE

	8.1	 	Securities may be placed in custody

	 	 	 	The Trustee may place the documents of title for the time being in its
possession in any bank or safe deposit and shall not be responsible for
any losses incurred by so doing.

	8.2	 	More than one Trustee may be registered proprietor

	 	 	 	At any time when there is more than one Trustee, the Trustee shall be
entitled to procure that any one or more of them may be registered as
proprietor of any property held by them upon the trusts of the Trust
Deed.

	9	 	APPLICATION OF PLAN TO SUBSIDIARIES

	9.1	 	Extension of Plan to Subsidiaries

	 	 	 	The Plan may with the consent of the Company be extended to any Subsidiary by a deed of adherence in a form approved by
the Executive Compensation Committee executed by that Subsidiary and the Company.

	9.2	 	Circumstances where Plan may cease to apply to Subsidiary

	 	 	 	The Plan shall cease to extend to a Participating Company (other than the Company) when:

	9.2.1	 	such Participating Company ceases to be a Subsidiary; or
	 
	9.2.2	 	a notice is served by the Company upon the Trustee and the Participating
Company that the Plan shall cease to apply to that Participating Company;
or
	 
	9.2.3	 	a Participating Company withdraws from the Plan on such conditions as
may be agreed by the Company

	 	 	 	but such cessation shall not affect the subsisting rights of
Beneficiaries under the Plan which have arisen under the Plan prior to
such cessation.

(16)

 

	9.3	 	Trustee not liable to account to former Participating Companies

	 	 	 	Where the Plan ceases to extend to a Participating Company in accordance
with clause 9.2 then the Trustee shall not be liable to account to such
Participating Company for any unused monies then held on the trusts of
clause 4.1.

	10	 	DUTIES OF PARTICIPATING COMPANIES

	10.1	 	Duty to contribute sums and provide information

	 	 	 	If and so long as any company is a Participating Company it shall:

	10.1.1	 	contribute and pay to the Trustee such sums as are required by the
Trustee to purchase or subscribe for Shares to be Appropriated to
Participants of that Participating Company together with a fair proportion
of the sums required to meet:

	 	10.1.1.1	 	the reasonable expenses of the Trustee in operating and
administering the Plan; and
	 
	 	10.1.1.2	 	any remuneration payable to the Trustee

	 	 	 	to the extent that such expenses and remuneration cannot be met out
of such of the assets held by the Trustee as are applicable for
that purpose

	10.1.2	 	provide the Trustee with all information reasonably required from it for
the purposes of the administration and operation of the Plan in such form
as the Trustee may reasonably require.

	10.2	 	Continuing liability of former Participating Companies

	 	 	 	Any company that ceases to be a Participating Company shall remain liable
to meet its fair proportion of the expenses of the Trustee.

	11	 	PROTECTION OF THE TRUSTEE

	11.1	 	Limited liability for monetary obligations

	 	 	 	The Trustee shall not be liable to satisfy any monetary obligations under
the Plan (including but without prejudice to the generality of the
foregoing any monetary obligations to Eligible Employees) beyond the sums
of money (including income) from time to time in its hands or under its
control as Trustee of the Plan and properly applicable for that purpose.

	11.2	 	Trustee to comply with Company’s directions

(17)

 

	 	 	 	The Trustee shall comply with any directions given by the Company
(including for the avoidance of doubt any person to whom any delegation
under clause 18.1 has been made) under the Rules and shall not be under
any liability in respect of such compliance to the Company (or such other
person under clause 18.1) or to any Eligible Employee.

	11.3	 	Indemnity

	 	 	 	Subject to any agreement to the contrary between the Company or any
Participating Company and the Trustee, the Company, shall pay to or
reimburse the Trustee all expenses properly incurred by it in connection
with the Trust and shall fully indemnify the Trustee against all actions,
claims, losses, demands, proceedings, charges, expenses, costs, damages,
taxes, duties and other liabilities incurred by it in connection with the
Trust or in connection with the proper administration and operation of
the Plan provided that a Trustee shall not be paid, reimbursed or
indemnified in respect of:

	11.3.1	 	any sum which can under clause 4.1 be recovered by the Trustee either
out of the assets held subject to the Plan or from other Participating
Companies; and
	 
	11.3.2	 	any fraud, wilful misconduct, or in the case of a Trustee receiving
remuneration for acting as a Trustee, negligence by it or any of its
officers or employees.

	 	 	 	In addition, the Trustee shall have the benefit of all indemnities
conferred on trustees by the Trustee Act 1925 and generally by law.

	11.4	 	No obligation to become involved in management

	 	 	 	The Trustee shall not be under any obligation to:

	11.4.1	 	become a director or other officer, or interfere in the management or
affairs, of any company, any of the shares, debentures, debenture stock or
securities which are held on the trusts created by the Trust Deed or of
any company associated with any such company, notwithstanding that the
Trustee may have (whether directly or indirectly) a substantial holding
in, or control of, any such company; or
	 
	11.4.2	 	seek information about the affairs of any such company but may leave the
conduct of the affairs of any such company to its directors, officers or
other persons managing the company provided the Trustee has no actual
notice of any act of dishonesty on the part of such persons in connection
with the management of the company.

(18)

 

	12	 	ADDITIONAL POWERS

	12.1	 	Additional powers of the Trustee

	 	 	 	In addition and without prejudice to the powers vested in it by the other
provisions of the Trust Deed and by law, the Trustee shall have the
following powers and discretions:

	12.1.1	 	to agree with the Company all matters relating to the operation and
administration of the trusts created by the Trust Deed and so that no
person claiming an interest under the Trust shall be entitled to question
the legality or correctness of any arrangement or agreement made between
the Company and the Trustee in relation to such operation and
administration;
	 
	12.1.2	 	from time to time in writing to authorise such other person or persons
whether or not a Trustee, as the Trustee shall think fit to draw and
endorse cheques and to give receipts and discharges for any monies or
other property payable transferable or deliverable to the Trustee and
every such receipt or discharge shall be as valid and effectual as if such
receipt or discharge was given by the Trustee and the production of a
written authority of the Trustee given under this clause shall be a
sufficient protection to any person taking any such receipt or discharge
and (unless that person shall have received express notice in writing of
the revocation of the authority) he shall be entitled to assume and act
upon the assumption that the authority remains unrevoked;
	 
	12.1.3	 	at any time, to borrow or raise money only for the purpose of
subscribing for or purchasing Shares or any other purpose for which money
may be applied under the Trust Deed. Any loan made by a Participating
Company to the Trustee shall be on such terms as the Participating Company
and the Trustee agree;
	 
	12.1.4	 	to make any payment to any Beneficiary into the Beneficiary’s bank
account and the Trustee shall be discharged from obtaining a receipt or
seeing the application of any such payment; and
	 
	12.1.5	 	to pay any amount, whether income or capital, intended to be paid to, or
applied for the benefit generally of, any minor to his or her parent or
guardian, whose receipt shall be a valid discharge of the Trustee.

	12.2	 	Trustee’s power to invest monies etc

	 	 	 	Subject to any provision to the contrary in the Rules the Trustee shall
in respect of monies or other assets not held on trust for a Participant
have the same full and unrestricted powers of investing and transposing
investments and laying out monies in all respects as if it were
absolutely entitled to them beneficially and without regard to any
requirement as to diversification.

(19)

 

	12.3	 	Trustee’s power of sale

	 	 	 	Subject to any provision to the contrary in the Rules the Trustee shall
in respect of any assets not held on trust for a Participant have all the
powers of sale of a beneficial owner in respect of such assets.

	13	 	PROCEEDINGS OF TRUSTEES

	13.1	 	Scope of clause

	 	 	 	Unless a corporate trustee is the sole Trustee, the following provisions
of this clause 13 shall govern the proceedings of the Trustees.

	13.2	 	Regulations for conduct of business

	 	 	 	The Trustees shall meet together and, subject to the following provisions
of this clause 13, make such regulations for the conduct of their
business as they determine.

	13.3	 	Quorum for meetings of Trustees

	 	 	 	The quorum for any meeting of the Trustees shall be two. A meeting of the
Trustees at which a quorum is present shall be competent to exercise all
the powers and discretions exercisable by the Trustees generally.

	13.4	 	Majority voting of Trustees

	 	 	 	At any meeting of the Trustees, all questions shall be decided by a
majority of the votes of the Trustees present and voting thereon. In the
event of an equality of votes, the chairman of the meeting, if any, shall
have a second or casting vote. In the event of an equality of votes on
the election of a chairman at any meeting, the chairman shall be chosen
by lot.

	13.5	 	Written resolutions of Trustees

	 	 	 	A resolution in writing signed by all the Trustees shall be as valid and
effective as if it had been passed at a meeting of the Trustees and the
same may consist of two or more documents in similar form each signed by
one or more of the Trustees.

	14	 	ADMINISTRATION

	14.1	 	Delegation

	 	 	 	Where there is more than one Trustee, the Trustees may from time to time
delegate any business to any one or more of their number.

(20)

 

	14.2	 	Trustee being a company

	 	 	 	A Trustee which is a company may in its capacity as a Trustee act by its
officers and may by such officers have and exercise all powers trusts and
discretions vested in it under the Trust Deed.

	14.3	 	Minutes of meetings

	 	 	 	The Trustee shall cause proper minutes to be kept and entered in a book
provided for the purpose of all its resolutions and proceedings and any
such minutes of any meeting of the Trustee, if purported to be signed by
the chairman of such meeting or by the chairman of a subsequent meeting,
shall be admissible as prima facie evidence of the matters stated in such
minutes.

	14.4	 	Professional advice

	 	 	 	The Trustee may employ and act on the advice or opinion of any solicitor,
accountant, or other person engaged in any profession or business whether
such advice was obtained by the Trustee or by the Company. The Trustee
shall not be responsible for any loss occasioned by its acting on that
advice.

	14.5	 	Trustee’s agents

	 	 	 	The Trustee may employ on such terms as the Company may agree as to
remuneration any agent to transact any business in connection with the
Plan and the Trustee shall not be liable for any loss arising by reason
of the fraud or negligence of such agent.

	14.6	 	Trustee may execute deeds etc

	 	 	 	The Trustee may execute or authorise the execution or delivery by any
agent of it of any trust, deeds, documents or other instruments by the
impression of the Trustees’ signatures (where there is more than one
Trustee) or (in the case of a sole corporate trustee) by the signature of
two or more officers of the corporate trustee, in writing, printing,
lithograph, photocopying and other modes of representing or reproducing
words in a visible form and may authorise the delivery of such
instruments on its behalf.

	15	 	REMUNERATION AND INTERESTS OF THE TRUSTEES

	15.1	 	Individual Trustees

	 	 	 	Any individual Trustee shall be entitled to receive and retain as
remuneration for his services under the Trust Deed such sum or sums as a
Participating Company may from time to time resolve to pay to him
notwithstanding that he is also an officer or employee of a Participating
Company and he shall not be disqualified from voting or taking part in
any decision of the Trustees on any matter by virtue of any personal or
beneficial interest (actual or prospective) therein.

(21)

 

	15.2	 	Professional Trustees

	 	 	 	Any Trustee who is a solicitor, accountant, or other person engaged in
any profession or business shall be entitled to charge and be paid all
normal and other charges for business transacted, services rendered or
time spent personally or by the Trustee’s firm in connection with the
Plan, including acts which a Trustee not engaged in any profession or
business could have done personally.

	15.3	 	Corporate Trustees

	 	 	 	Any Trustee which is a company shall be entitled to charge and be paid
such reasonable remuneration or charges as shall from time to time be
agreed in writing between the Company and such company and any such
company (being a bank) shall be entitled subject to the written consent
of the Company, to act as banker and perform any services in relation to
the Plan on the same terms as would be made with a customer in the
ordinary course of its business as a banker without accounting for any
resultant profit including without prejudice to the generality of the
foregoing retention of its customary share of brokerage commission.

	15.4	 	Right to be employed by Company

	 	 	 	Any Trustee or officer of a corporate trustee may be employed by, or be
appointed an officer of, the Company or any Subsidiary and shall be
entitled to keep for his benefit such remuneration or any other benefit
as he may receive by virtue of such position and shall not be liable to
account for any such benefit.

	16	 	PERMITTED DEALINGS OF TRUSTEES

	16.1	 	Trustee permitted to hold shares etc

	 	 	 	No Trustee (nor any director or other officer of a company acting as a
Trustee) shall be precluded from acquiring, holding or dealing with any
shares, debentures, debenture stock or securities of Gannett Co., Inc.,
the Company or any other Participating Company or any other company in
which the Trustee may be interested or from entering into any contract or
other transaction with Gannett Co., Inc., the Company or any other
Participating Company or any such other company or being interested in
any such contract or transaction. No Trustee (nor any director or other
officer of a company acting as a Trustee) shall be liable to account to
any Beneficiary, Eligible Employee or Participant or, where there is more
than one Trustee, to the other Trustees or the Company or any other
Participating Company or such other company for any profits so made or
benefits so obtained by him.

	16.2	 	No requirement to account for benefits

	 	 	 	The Trustee (and any director or other officer of a company acting as a
Trustee) who is or

(22)

 

	 	 	 	becomes a Beneficiary may retain all benefits to which he becomes
entitled under the Plan and shall not be liable to account for any such
benefit.

	17	 	NUMBER, APPOINTMENT, RETIREMENT AND REMOVAL OF TRUSTEES

	17.1	 	Minimum number of Trustees

	 	 	 	The minimum number of Trustees shall be:

	17.1.1	 	in the case of a Trustee which is a company (whether or not a trust
corporation), one; and
	 
	17.1.2	 	in any other case, three.
	 
	17.1.3	 	while the number of Trustees is below the minimum number, a continuing
Trustee shall not be entitled to exercise any power or discretion under
the Trust Deed.
	 
	17.1.4	 	if, after the removal, retirement or death of a Trustee, there are fewer
than the minimum number of Trustees required by clause 17.1.2, the Company
shall forthwith appoint a new Trustee in place of the removed, retiring or
dead Trustee.

	17.2	 	Statutory power to appoint new and additional Trustees

	 	 	 	The statutory power of appointing new and additional Trustees contained
in section 36 of the Trustee Act 1925 shall be vested in the Company and
may be exercised by a resolution of the Directors or in writing signed by
a person duly authorised by a resolution of the Directors.

	17.3	 	Power to appoint additional Trustees

	 	 	 	In addition to the statutory power of appointing new and additional
Trustees, the Company shall have the power by a resolution of the
Directors or in writing signed by a person duly authorised by a
resolution of the Directors to appoint additional Trustees
notwithstanding that the effect of such appointment would be to increase
the number of Trustees beyond four.

	17.4	 	Company ceasing to exist

	 	 	 	If the Company ceases to exist otherwise than in consequence of a
reconstruction or amalgamation, all powers of appointing and removing
Trustees shall become vested in the Trustee.

	17.5	 	Removal of Trustees

	 	 	 	The Company may by a resolution of the Directors or in writing signed by
a person duly authorised by a resolution of the Directors, notice of
which, in either case, is given to the Trustee, and without assigning any
reason therefor, remove a Trustee from office, but not so as to reduce

(23)

 

	 	 	 	the number of Trustees below that specified in clause 17.1. If no later
date is specified in the notice, such removal shall take place
immediately on the receipt of the notice by the Trustee. If a later date
is specified in the notice, such removal shall take place on the later of
the receipt of the notice by the Trustee and the date specified in the
notice.

	17.6	 	Retirement of Trustees

	 	 	 	A Trustee may retire by giving the Company written notice of his desire
to retire but not so as to reduce the number of Trustees below that
specified in clause 17.1.
	 
	 	 	 	If the requirements of clause 17.1 will continue to be satisfied such
notice shall take effect at the expiry of three months or such other
period as may be agreed in writing by the Company after the date of such
notice.
	 
	 	 	 	If the requirements of clause 17.1 will not continue to be satisfied, the
Company shall, within three months after the giving of such notice,
appoint an additional Trustee. If the Company fails to do so within such
period, the retiring Trustee may by deed appoint an additional Trustee
and his retirement shall thereupon become effective.

	17.7	 	Transfer of trust property following removal or retirement

	 	 	 	Forthwith following his removal or retirement as a Trustee, the outgoing
Trustee shall transfer all property held by him subject to the Plan and
deliver all documents in his possession relating to the Plan to the
remaining Trustees and shall execute all such documents and do all such
things as may be necessary to give effect to his removal or retirement.

	17.8	 	Section 37 of the Trustee Act 1925

	 	 	 	Section 37(1)(c) of the Trustee Act 1925 shall apply to the Plan as if
all references in that section to a trust corporation were references to
any company authorised by its memorandum and articles to undertake trust
business.

	17.9	 	Residence of Trustees

	 	 	 	The Company shall ensure that all the Trustees or any sole Trustee which
is a company shall at all times be resident for tax purposes in the
United Kingdom.

	18	 	DELEGATION OF ADMINISTRATION BY THE COMPANY AND OTHER MATTERS

	18.1	 	Delegation of Administration

	 	 	 	The Company or the Executive Compensation Committee may at any time
delegate in writing to the directors of any other Participating Company
or to any Participating Company’s duly

(24)

 

	 	 	 	authorised officers any of its powers and duties under the Trust Deed or
any business including the exercise of any discretion provided always
that the Company shall not delegate the duties imposed on it or the
rights given to it under clauses 9.1, 11.3, 17.2, 17.3, 17.5 or 22.

	18.2	 	Exercise of powers

	 	 	 	Except as otherwise provided in the Trust Deed or in the Rules the powers
and discretions exercisable by any Participating Company in relation to
the Plan shall be exercisable in the case of the Company by the Executive
Compensation Committee and otherwise by resolution of the directors of
such Participating Company or by a duly authorised committee thereof and
a copy of any resolution signed or purporting to be signed by the
secretary or any director of such company shall be sufficient authority
to the Trustee to act thereunder.

	18.3	 	Information supplied by Participating Company

	 	 	 	The Trustee shall be entitled, in the absence of manifest error, to rely
without further enquiry on any information or advice supplied to them by
any Participating Company in connection with the trust created by the
Trust Deed.

	19	 	DURATION AND WINDING UP OF THE PLAN

	19.1	 	Termination on expiry of the Trust Period

	 	 	 	The Plan shall terminate on the earlier of:

	19.1.1	 	the expiry of the Trust Period; and
	 
	19.1.2	 	a plan termination notice validly issued under Rule 35 of the Plan

	 	 	 	and references throughout the Trust Deed to a termination of the Plan
shall be taken to be a termination as herein provided.

	19.2	 	Outstanding liabilities

	 	 	 	On or after the termination of the Plan no further sums shall be paid to
the Trustee by the Participating Companies save that all Participating
Companies shall remain liable to pay their just proportion of the costs
charges and expenses of the Plan.

	19.3	 	Completion of obligations

	 	 	 	Following any termination of the Plan the Trustee shall remain
responsible for the completion of its obligations under the Plan.

(25)

 

	20	 	SUPREMACY OF TRUST DEED OVER RULES OF PLAN

	 	 	 	The Trustee’s rights, duties and powers are regulated by the Trust Deed
and by the Rules and in the case of inconsistency or conflict between the
provisions of the Trust Deed and of the Rules the provisions of the Trust
Deed shall prevail.

	21	 	GOVERNING LAW AND JURISDICTION

	21.1	 	Governing Law

	 	 	 	The formation, existence, construction, performance, validity and all
aspects whatsoever of the Trust Deed and the Rules or any term of the
Trust Deed or any Rules shall be governed by English law.

	21.2	 	Jurisdiction

	 	 	 	The English courts shall have jurisdiction to settle any dispute which
may arise out of, or in connection with, the Trust Deed or the Rules.

	21.3	 	Jurisdiction agreement for benefit of Company

	 	 	 	The jurisdiction agreement contained in this clause 21 is made for the
benefit of the Company only, which accordingly retains the right to bring
proceedings in any other court of competent jurisdiction.

	21.4	 	Participant deemed to submit to such jurisdiction

	 	 	 	By accepting an Award and not renouncing it, a Participant is deemed to
have agreed to submit to such jurisdiction.

	22	 	AMENDMENT OF TRUST DEED AND RULES

	22.1	 	Amendment of Deed and Rules

	 	 	 	The Company may at any time and from time to time in the case of the
Trust Deed by a supplemental deed and in the case of the Rules by
resolution of the Executive Compensation Committee amend, modify, or
alter the Plan in any respect (such amendment modification or alteration
being referred to in this clause 22.1 as a “modification”) provided that:

	22.1.1	 	no modification shall be made which would have the effect of conferring
any advantage on any Eligible Employee without the approval of the Company
in general meeting except for minor amendments to benefit the
administration of the Plan to take account of a change in legislation and
amendments to obtain or maintain favourable tax, exchange control or
regulatory treatment for Eligible Employees or the Participating
Companies;

(26)

 

	22.1.2	 	no modification shall alter to the disadvantage of any Participant his
rights which have accrued to him under the Plan before the date of such
modification;
	 
	22.1.3	 	no modification shall modify or alter to the disadvantage of the Trustee
the provisions for its protection and indemnity contained in the Plan
without the written agreement of the Trustee;
	 
	22.1.4	 	no modification shall be made which would or might infringe any rule
against perpetuities or which could result in the Plan ceasing to be an
Employees’ Share Scheme; and
	 
	22.1.5	 	whilst the Plan is approved by the Board of Inland Revenue, no
modification to any key feature (as defined in paragraph 84(1)(b) of
Schedule 2) of the Plan shall take effect without the approval of the
Board of Inland Revenue.

	22.2	 	Amendments to be binding

	 	 	 	Any modification made in accordance with the provisions of this clause 22
shall be binding upon all persons from time to time interested in the
Plan including the Company and any other Participating Company.

	23	 	GENERAL PROVISIONS

	23.1	 	Counterparts

	 	 	 	The Trust Deed may be executed in any number of counterparts, and by the
parties on separate counterparts, each of which when so executed and
delivered shall be an original, but all the counterparts will together
constitute one and the same Trust Deed.

	23.2	 	Irrevocability

	 	 	 	Subject to the provisions of the Trust Deed, the trusts hereby declared
are irrevocable.

(27)

 

EXECUTED by the parties as a deed and delivered on the date first mentioned above.

SIGNED as a deed by

Gannett U.K. Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

The Common Seal of Barclays Bank Trust Company was hereunto affixed in
execution of this deed in the presence of:

	 	 	 
	

	 	Authorised sealing officer

SIGNED as a deed by

Newsquest (London) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (Essex) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (Midlands South) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

(28)

 

SIGNED as a deed by

Newsquest (Lancashire) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (Oxfordshire & Wiltshire) Limited, formerly Newsquest (Oxfordshire)

Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (Bradford) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (North East) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (Sussex) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

(29)

 

SIGNED as a deed by

Newsquest (Kendal)

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (Wiltshire) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (York) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (Cheshire/Merseyside) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest Media Group Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

(30)

 

SIGNED as a deed by

Newsquest Media (Southern) Ltd

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest (Leeds) Limited, formerly Newsquest Printing (Worcester) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest Printing (Lancashire) Limited, formerly Newsquest Printing (Lostock)

Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest Printing (Colchester) Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Southern Binders Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

(31)

 

SIGNED as a deed by

Southernprint Limited, formerly Southernprint (Web Offset Limited)

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Southernprint (Web Offset) Limited, formerly Southernprint Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

SIGNED as a deed by

Newsquest Financial Media Ltd, formerly Southern Magazines Limited

acting by a director and its secretary/ two directors:

	 	 	 
	Paul Davidson

	 	Director
	 
	 	 
	Paul Hunter

	 	Director/Secretary

(32)

 

SCHEDULE 1

RULES OF THE GANNETT U.K. LIMITED INLAND REVENUE

APPROVED SHARE INCENTIVE PLAN

	1	 	INTERPRETATION

	1.1	 	In this Schedule, unless the context otherwise requires, the following
words and expressions have the following meanings:

	 	 	 
	Accounting Period

	 	an accounting reference period of the Company within
the meaning of section 224 of the Companies Act 1985 or a new
accounting reference period of the Company within the meaning of
section 225 of the Companies Act 1985;
	 
	 	 
	Accumulation Period

	 	a period determined at the discretion of the
Executive Compensation Committee, not exceeding 12 months which must
be the same for all Participants;
	 
	 	 
	Appropriate

	 	to confer a beneficial interest in Free Shares or Matching
Shares on a Participant, subject to the provisions of the Plan, and
the expressions “Appropriation” and “Appropriated” shall be
construed accordingly;
	 
	 	 
	Associate

	 	the meaning set out in paragraphs 22, 23 and 24 of Schedule 2;
	 
	 	 
	Associated Company

	 	the meaning given in paragraph 94 of Schedule 2 as
extended by paragraph 91 of Schedule 2;
	 
	 	 
	Award

	 	the Appropriation to Participants
of Free Shares or Matching Shares or the
	

	 	acquisition of Partnership Shares on
behalf of Participants, in accordance with
the Plan;
	 
	 	 
	Capital Receipt

	 	a receipt by the Trustee of money or money’s worth of the
type defined in Section 502 of ITEPA 2003;
	 
	 	 
	Close Company

	 	the meaning set out in section 414 ICTA 1988;
	 
	 	 
	Company

	 	Gannett U.K. Limited incorporated in England & Wales under
company number 3795655 or any company which results from the
amalgamation or reconstruction of Gannett U.K. Limited (or, if
there is more than one such

(33)

 

	 	 	 
	

	 	company, the company to which the greater
part of the undertaking of Gannett U.K.
Limited passes as a result of the
amalgamation or reconstruction) and this
definition shall apply, with appropriate
modifications, to any amalgamation or
reconstruction of the Company from time to
time;
	 
	 	 

	 	 	 	 	 
	Connected Company

	 	(a)
	 	a company which Controls or is controlled by the
Company or which is controlled by a company which also Controls the
Company;
	 
	 	 	 	 
	

	 	(b)
	 	a company which is a member of a
consortium owning the Company or which
is owned in part by the Company as a
member of the consortium;

	 	 	 
	 
	 	 
	Control

	 	the meaning set out in section 840 ICTA 1988;
	 
	 	 
	Directors

	 	the board of directors of the Company or a duly authorised
committee thereof;
	 
	 	 
	Dividend Shares

	 	Shares acquired with dividends paid in respect of Plan
Shares as set out in Part IV;
	 
	 	 
	Dividend Shares

Acquisition Date

	 	the date on which the Trustee acquires
Dividend Shares pursuant to Rule 19.4;
	 
	 	 
	Dividend Shares Holding Period

	 	the period beginning on the Dividend
Shares Acquisition Date and ending on the earlier of the third
anniversary of that date and the date on which the Participant
ceases to have any Relevant Employment;
	 
	 	 
	Eligible Employee

	 	an individual who in the case of Free Shares at a Free
Shares Appropriation Date, and in the case of Partnership Shares or
Matching Shares:
	 
	 	 

	 	 	 	 	 
	

	 	(a)
	 	if there is no Accumulation Period, at
the time the money for the acquisition
of such Partnership Shares is
deducted; and
	 
	 	 	 	 
	

	 	(b)
	 	if there is an Accumulation Period, at
the time of the first deduction of
money for the acquisition of such
Partnership Shares

(34)

 

	 	 	 	 	 
	

	 	(i)
	 	is an employee of a
Participating Company and is
not under notice; and
	 
	 	 	 	 
	

	 	(ii)
	 	has been such an employee (or
has otherwise been an employee
of a Qualifying Company) at all
times during any Qualifying
Period; and
	 
	 	 	 	 
	

	 	(iii)
	 	is a UK resident taxpayer
within the meaning of paragraph
8(2) of Schedule 2; and
	 
	 	 	 	 
	

	 	(iv)
	 	has not either himself or
through any Associate and
whether in either case alone or
together with one or more
Associates has not had within
the preceding twelve months, a
Material Interest in a Close
Company whose shares may be
Appropriated or acquired under
the Plan or a company which has
Control of such a company or is
a member of a consortium which
owns such a company; and
	 
	 	 	 	 
	

	 	(v)
	 	is not ineligible to
participate under Rule 3;
	 
	 	 	 	 

	 	 	 	 	 
	

	 	(c)
	an individual who at the relevant time
satisfies the requirements above,
excluding (iii), whom the Executive
Compensation Committee have, in their
absolute discretion determined should
be included;

	 	 	 
	Employees’ Share Scheme

	 	the meaning set out in section 743 of the
Companies Act 1985;
	 
	 	 
	Executive Compensation

	 	the Executive Compensation Committee of Committee
Gannett Co., Inc. or a committee of persons (delegates) appointed
thereby;
	 
	 	 
	Forfeiture Period

	 	the period(s) determined by the Executive Compensation
Committee pursuant to Rules 4.3.7, 15.2.5 or 15.2.6, as appropriate,
provided that the period(s) shall not exceed 3 years from the
relevant date of Appropriation;

(35)

 

	 	 	 
	Free Shares

	 	Shares entitlement to which is as set out in Part I;
	 
	 	 
	Free Shares Agreement

	 	an agreement issued by the Executive
Compensation Committee under Rule 4;
	 
	 	 
	Free Shares Appropriation Date

	 	the date on which the Trustee
Appropriates an Award of Free Shares;
	 
	 	 
	Free Shares Closing Date

	 	the date specified in the Free Shares
Invitation by which the Free Shares Agreement must be received by
the Company;
	 
	 	 
	Free Shares Holding Period

	 	the period beginning on the Free Shares
Appropriation Date and ending on a date determined from time to time
at the discretion of the Executive Compensation Committee, and being
not earlier than the third anniversary nor later than the fifth
anniversary of the Free Shares Appropriation Date or, if earlier,
the date on which the Participant ceases to be in Relevant
Employment and which period shall be the same for all Free Shares
comprised in the same Award and shall not be increased at any time
in respect of Free Shares already Appropriated;
	 
	 	 
	Free Shares Invitation

	 	an invitation to participate in an offer
for Free Shares issued by the Executive Compensation Committee under
Rule 4;
	 
	 	 
	ICTA 1988

	 	the Income and Corporation Taxes Act 1988;
	 
	 	 
	Initial Market Value

	 	the Market Value of a Share:
	 
	 	 

	 	 	 	 	 
	

	 	(i)
	 	in the case of Free Shares, on the
Free Shares Appropriation Date;
	 
	 	 	 	 
	

	 	(ii)
	 	in the case of Matching Shares, on the
Matching Shares Appropriation Date;
and
	 
	 	 	 	 
	

	 	(iii)
	 	in the case of Dividend Shares, on the
Dividend Shares Acquisition Date;

	 	 	 
	ITEPA 2003

	 	the Income Tax (Earnings and Pensions) Act
2003;

(36)

 

	 	 	 	 	 
	Market Value

	 	(i)
	 	where the Shares are listed on the New York Stock
Exchange the middle market quotation of a Share as derived from the
Wall Street Journal for the dealing day immediately preceding the
day in question (provided that in no case may the market value of a
Share be determined by reference to a dealing day which falls within
a Proscribed Period);
	 
	 	 	 	 
	

	 	(ii)
	 	where the shares are not listed on
the New York Stock Exchange, the
market value of a Share as determined
in accordance with the provisions of
Part VIII of the Taxation of
Chargeable Gains Act 1992 and
paragraph 92 of Schedule 2 and agreed
for the purposes of the Plan with
Inland Revenue Shares Valuation
Division on or before that day;

	 	 	 
	 
	 	 
	Matching Shares

	 	Shares entitlement to which is as set out in Part III
which shall:
	 
	 	 

	 	 	 	 	 
	

	 	(a)
	 	be shares of the same class and carry
the same rights as the Partnership
Shares to which they relate;
	 
	 	 	 	 
	

	 	(b)
	 	be Appropriated on the same day as the
Partnership Shares to which they
relate are Awarded; and
	 
	 	 	 	 
	

	 	(c)
	 	be Appropriated to all Participants
on exactly the same basis;

	 	 	 
	Matching Shares

Appropriation Date

	 	the date on which the Trustee Appropriates

an Award of Matching Shares;
	 
	 	 
	Matching Shares Holding

	 	the period beginning on the Matching Shares
	 
	 	 
	Period

	 	Appropriation Date and ending on a date determined from time to
time at the discretion of the Executive Compensation Committee, and
being not earlier than the third anniversary nor later than the
fifth anniversary of the Matching Shares Appropriation Date or, if
earlier, the date on which the Participant ceases to be in Relevant
Employment, and which period shall be the

(37)

 

	 	 	 
	

	 	same for all Matching Shares comprised in
the same Award and shall not be increased
at any time in respect of Matching Shares
already Appropriated;
	 
	 	 
	Material Interest

	 	the meaning set out in paragraphs 19 to 24 of Schedule
2;
	 
	 	 
	New York Stock Exchange

	 	the New York Stock Exchange or any
successor body;
	 
	 	 
	Offer

	 	a general offer which is made to holders of shares of the
same class as Plan Shares or of other shares in Gannett Co., Inc.
and in either case which is made on condition that if satisfied the
person making the offer will have Control of Gannett Co., Inc.;
	 
	 	 
	Participant

	 	an Eligible Employee to whom the Trustee has made an
Appropriation or on whose behalf Partnership Shares or Dividend
Shares have been acquired or, where the context permits, an Eligible
Employee who has submitted a duly completed Free Shares Agreement or
Partnership Shares Agreement in accordance with Rule 4.3.5 or 10.3.5
respectively;
	 
	 	 
	Participating Company

	 	the Company or a Subsidiary which is a party to the
Trust Deed or has pursuant to clause 9 executed a deed of adherence;
	 
	 	 
	Partnership Shares

	 	Shares entitlement to which is as set out in Part II;
	 
	 	 
	Partnership Shares Acquisition

Date

	 	in relation to each acquisition of Partnership
Shares, the actual date on which the Trustees
acquire such Partnership Shares in accordance
with Rule 10.3.4;
	 
	 	 
	Partnership Shares Agreement

	 	an agreement issued by the Executive
Compensation Committee under Rule 10.4;
	 
	 	 
	Partnership Shares Closing Date

	 	the date specified in the Partnership
Shares Invitation by which the completed Partnership Shares
Agreement must be received by the Company in order for the Eligible
Employee to commence Salary deductions for the acquisition of
Partnership Shares in the following month;

(38)

 

	 	 	 
	Partnership Shares Invitation

	 	an invitation issued by the Executive
Compensation Committee under Rule 10;
	 
	 	 
	Partnership Shares Market Value

	 	in the case of a Partnership Shares
Agreement with:
	 
	 	 

	 	 	 	 	 
	

	 	(a)
	 	an Accumulation Period, the lower of
the Market Value of a Share on:
	 
	 	 	 	 
	

	 	(i)
	 	the first day of the Accumulation
Period; and
	 
	 	 	 	 
	

	 	(ii)
	 	the Partnership Shares Acquisition
Date;
	 
	 	 	 	 
	

	 	(b)
	 	no Accumulation Period, the Market
Value of a Share on the Partnership
Shares Acquisition Date.

	 	 	 
	Partnership Share Money

	 	the meaning given to that term by Rule 10.5.2;
	 
	 	 
	Performance Allowance

	 	an Appropriation of Free Shares where:
	 
	 	 

	 	 	 	 	 
	

	 	(a)
	 	whether Free Shares are Appropriated
or not; or
	 
	 	 	 	 
	

	 	(b)
	 	the number or value of Free Shares
Appropriated

	 	 	 
	

	 	is subject to the satisfaction of a
Performance Target;
	 
	 	 
	Performance Target

	 	a performance target imposed by the Executive
Compensation Committee under Rule 6;
	 
	 	 
	Performance Unit

	 	a group comprising one or more Participants to whom a
Performance Target applies;
	 
	 	 
	Plan

	 	the Gannett U.K. Limited Inland Revenue Approved Share
Incentive Plan as constituted by this Trust Deed and Rules in their
present form or as amended from time to time;
	 
	 	 
	Plan Shares

	 	Free Shares, Partnership Shares, Matching Shares and
Dividend Shares which have been Appropriated to a Participant or are
held on his behalf by the Trustee;
	 
	 	 
	Proscribed Period

	 	any period during which dealings in Shares is
proscribed due to the existence of unpublished price sensitive

(39)

 

	 	 	 
	

	 	information, whether by the Company’s own
code on insider dealing, the Criminal
Justice Act 1993, corresponding legislation
of the United States of America, or
otherwise;
	 
	 	 
	Qualifying Company

	 	the same meaning as in paragraph 17 of Schedule 2;
	 
	 	 
	Qualifying Corporate Bond

	 	the meaning set out in section 117 of the
Taxation of Chargeable Gains Act 1992;
	 
	 	 
	Qualifying Period

	 	a period determined by the Executive Compensation
Committee in relation to any Award of Shares under the Plan which
may be different for different Awards provided that:
	 
	 	 

	 	 	 	 	 
	

	 	(a)
	 	in the case of Free Shares it shall
not exceed the period of 18 months
before the Free Shares Appropriation
Date;
	 
	 	 	 	 
	

	 	(b)
	 	in the case of Partnership Shares and
Matching Shares where there is an
Accumulation Period it shall not
exceed the period of 6 months before
the beginning of the Accumulation
Period;
	 
	 	 	 	 
	

	 	(c)
	 	in the case of Partnership Shares and
Matching Shares where there is no
Accumulation Period it shall not
exceed the period of 18 months before
the deduction of money for the
acquisition of such Partnership
Shares.
	 
	 	 	 	 
	Relevant Amount

	 	(a)
	 	in respect of Free Shares, £3,000 in any Year of
Assessment;
	 
	 	 	 	 
	

	 	(b)
	 	in respect of Partnership Shares, the
lower of:

	 	 	 	 	 
	

	 	 	(i)	£1,500 in any Year of
Assessment; and
	 
	 	 	 	 
	

	 	 	(ii)	10% of Salary in any Year of
Assessment;

	 	 	 	 	 
	

	 	(c)
	 	in respect of Dividend Shares, £1,500
in any Year of Assessment;

(40)

 

	 	 	 	 	 
	

	 	 	 	subject in each case to such amendment as
may be made to that limit under Schedule 2
from time to time;
	 
	 	 	 	 

	 	 	 
	Relevant Employment

	 	employment by the Company or any Associated Company;
	 
	 	 
	Retirement Age

	 	the age of 50;
	 
	 	 
	Rules

	 	these rules as from time to time amended;
	 
	 	 
	Salary

	 	the meaning in paragraph 43(4) of Schedule 2;
	 
	 	 
	Schedule 2

	 	Schedule 2 to ITEPA 2003;
	 
	 	 
	Share Incentive Plan

	 	a share incentive plan approved under Schedule 2 and
established by the Company or a Connected Company;
	 
	 	 
	Shares

	 	fully paid ordinary shares (and this shall include fractions of a
share) in the capital of Gannett Co., Inc. (or any shares
representing the same) which satisfy the conditions in Part 4 of
Schedule 2;
	 
	 	 
	Subsidiary

	 	any company over which the Company has Control;
	 
	 	 
	Year of Assessment

	 	a period commencing on 6 April in any year and
ending on 5 April in the following year.

	1.2	 	In the Plan, unless otherwise specified:

	1.2.1	 	the contents, clause and Rule headings are inserted for ease of
reference only and do not affect their interpretation;
	 
	1.2.2	 	references to clauses, Rules, Parts and Schedules are to clauses, rules,
parts of, and schedules to the Plan;
	 
	1.2.3	 	a reference to writing includes any mode of reproducing words in a
legible form and reduced to paper;
	 
	1.2.4	 	the singular includes the plural and vice-versa and the masculine
includes the feminine;
	 
	1.2.5	 	a reference to a statutory provision includes any statutory
modification, amendment or re-enactment thereof; and

(41)

 

	1.2.6	 	the Interpretation Act 1978 applies to the Plan in the same way as it
applies to an enactment.

	2	 	PURPOSE OF THE PLAN

	 	 	 	The purpose of the Plan is to enable Eligible Employees of Participating
Companies to acquire shares in Gannett Co., Inc. which give them a
continuing stake in Gannett Co., Inc..

	3	 	ELIGIBILITY TO PARTICIPATE / PARTICIPATION ON SAME TERMS

	3.1	 	General

	 	 	 	An individual shall not be eligible to receive an Award in any Year of
Assessment if the individual is at the same time to participate in an
award under another Share Incentive Plan.

	3.2	 	Deemed Participation

	 	 	 	For the purposes of Rule 3.1, an individual shall be treated as having
participated in a Share Incentive Plan if the individual would have
received Free Shares under that plan but for the failure to meet a
performance target.

	3.3	 	Successive participation in connected Share Incentive Plans

	 	 	 	Where an individual participates in more than one Share Incentive Plan
in the same Year of Assessment, the annual limit below applies as if
this Plan and the other Share Incentive Plan(s) were a single plan:

	3.3.1	 	the maximum amount permitted to be awarded as Free Shares for a
Participant in any Year of Assessment provided from time to time in
paragraph 35 of Schedule 2;
	 
	3.3.2	 	the maximum amount of Partnership Share Money (or percentage of Salary)
permitted for a Participant that may be deducted from a Participant’s
Salary in any Year of Assessment provided from time to time in paragraph
46 of Schedule 2; and
	 
	3.3.3	 	the maximum amount to be reinvested as Dividend Shares permitted for a
Participant in respect of any Year of Assessment provided from time to
time in paragraph 64 of Schedule 2.

	3.4	 	Participation on same terms

	 	 	 	On each occasion when an Award is to be made, subject to Rule 5 every
Eligible Employee shall be invited to participate in an Award on the
same terms and those who do actually participate must do so on the
same terms.

(42)

 

PART I – FREE SHARES

	4	 	ISSUE OF INVITATIONS

	4.1	 	Discretion of the Executive Compensation Committee
	 
	 	 	The Executive Compensation Committee may in their absolute discretion
determine that an Award of Free Shares may be made and, accordingly,
issue Free Shares Invitations.
	 
	4.2	 	Limit on individual participation
	 
	 	 	In any Year of Assessment, the Initial Market Value of Free Shares
Appropriated to a Participant shall not exceed the Relevant Amount.
	 
	4.3	 	Contents of Free Shares Invitations
	 
	 	 	Free Shares Invitations shall be in such form as the Executive
Compensation Committee determine from time to time and shall state:

	4.3.1	 	the Free Shares Closing Date;
	 
	4.3.2	 	the expected Free Shares Appropriation Date;
	 
	4.3.3	 	the Free Shares Holding Period;
	 
	4.3.4	 	that, by accepting the Free Shares Invitation, the Eligible Employee
becomes bound in contract with the Company to observe the restrictions set
out in the Free Shares Agreement;
	 
	4.3.5	 	that an Eligible Employee who wishes to accept the Free Shares under the
Award shall submit to the Company, prior to the Free Shares Closing Date,
a duly completed Free Shares Agreement;
	 
	4.3.6	 	that the individual shall only be entitled to an Appropriation of Free
Shares if he remains an Eligible Employee at the Free Shares Appropriation
Date;
	 
	4.3.7	 	that (as determined at the discretion of the Executive Compensation
Committee) the provisions of either Rules 9.2 or 9.3 shall apply to the
Award and, if Rule 9.3 applies, shall state what the applicable Forfeiture
Period shall be; and
	 
	4.3.8	 	such additional information, not inconsistent with the Rules and the
Trust Deed as the Executive Compensation Committee may from time to time
determine.

(43)

 

 

	4.4	 	Free Shares Agreement and Free Shares Invitations
	 
	 	 	Each Eligible Employee shall be sent a Free Shares Invitation and a Free
Shares Agreement which shall be in such form as the Executive
Compensation Committee may determine from time to time and shall require
the Eligible Employee to contract with the Company as set out in Rule 8.
	 
	4.5	 	Election to participate in any Award of Free Shares
	 
	 	 	A Free Shares Agreement may include an election by a Participant to
participate in any Award of Free Shares until such time as he notifies
the Company that he no longer wishes to so participate. Where a
Participant makes such an election he shall be deemed to have complied
with Rule 4.3.5 in relation to each Award of Free Shares until the
election is withdrawn.

	5	 	ALLOCATION OF FREE SHARES BY REFERENCE TO PERFORMANCE

	5.1	 	Free shares may be allocated by reference to performance
	 
	 	 	The Company may stipulate that the number of Free Shares (if any) to be
Appropriated to each Participant on a given occasion shall be determined
by reference to Performance Allowances.
	 
	5.2	 	Performance Allowances to apply to all
	 
	 	 	If Performance Allowances are used, they shall apply to all Participants.
	 
	5.3	 	Executive Compensation Committee to provide information
	 
	 	 	If Performance Allowances are used the Executive Compensation Committee
shall, as soon as reasonably practicable:

	5.3.1	 	notify each Participant participating in the Award of the Performance
Targets to be used to determine the number or value of Free Shares
Appropriated to him; and
	 
	5.3.2	 	notify all Eligible Employees of any Participating Company, in general
terms, of the Performance Targets to be used to determine the number or
value of Free Shares to be Appropriated to each Participant under the
Award (provided that the Executive Compensation Committee may exclude any
information the disclosure of which, they reasonably consider would
prejudice commercial confidentiality).

	5.4	 	Use of method 1 or method 2
	 
	 	 	The Company shall determine the number of Free Shares (if any) to be
Appropriated to each Participant by reference to performance using method
1 or method 2. The same method shall be used for all Participants for
each Award.

(44)

 

 

	5.5	 	Performance Allowances: method 1
	 
	 	 	By this method:

	5.5.1	 	at least 20% of Free Shares Appropriated under any Award shall be Appropriated without reference to a Performance Target;
	 
	5.5.2	 	the remaining Free Shares shall be Appropriated by reference to a Performance Target; and
	 
	5.5.3	 	the highest Appropriation made to a Participant by reference to
performance in any period shall be not more than four times the number of
Free Shares Appropriated to an individual without reference to a
Performance Target at the same time.

If this method is used:

	5.5.4	 	the Free Shares Appropriated without reference to a Performance Target
shall be Appropriated on the same terms as provided in Rule 5.7; and
	 
	5.5.5	 	the Free Shares Appropriated by reference to a Performance Target need
not be Appropriated on the same terms as provided in Rule 5.7.

	5.6	 	Performance Allowances: method 2
	 
	 	 	By this method:

	5.6.1	 	some or all Free Shares shall be Appropriated by reference to performance;
	 
	5.6.2	 	the Appropriation of Free Shares to Participants who are members of the same Performance Unit shall be made on the same terms, as provided in Rule
5.7; and

	 	 	Free Shares Appropriated for each Performance Unit shall be treated as
separate Awards for the purposes of Rule 5.7 only.
	 
	5.7	 	Same terms basis for Free Shares Awards
	 
	 	 	An Award of Free Shares on the same terms shall be on terms determined by
the Executive Compensation Committee which may be directly proportional
to any one or more separately of a Participant’s:

	5.7.1	 	remuneration from;
	 
	5.7.2	 	length of service with;

(45)

 

 

	5.7.3	 	number of hours worked for;

any Qualifying Companies.

	6	 	PERFORMANCE TARGETS

	6.1	 	Imposition of Performance Targets
	 
	 	 	The Executive Compensation Committee may impose one or more Performance
Targets in order to determine the number of Shares (if any) subject to a
Performance Allowance.
	 
	6.2	 	Nature of Performance Targets
	 
	 	 	Any Performance Target imposed shall be:

	6.2.1	 	based on business results or other objective criteria; and
	 
	6.2.2	 	a fair and objective measure of the performance of the Performance Unit(s) to which it applies.

	6.3	 	Membership of Performance Unit
	 
	 	 	No Participant shall be a member of more than one Performance Unit.
	 
	6.4	 	Substitution, variation or waiver of Performance Targets

	6.4.1	 	If an event occurs which causes the Executive Compensation Committee to consider that a Performance Target is no longer appropriate, the Executive
Compensation Committee may substitute, vary or waive such Performance Target in such manner (and make such consequential amendments to the
Rules) as:

	 	6.4.1.1	 	is reasonable in the circumstances;
	 
	 	6.4.1.2	 	produces a fairer measure of performance and is neither materially more nor less difficult to satisfy; and
	 
	 	6.4.1.3	 	continues to comply with Rule 6.2.

	6.4.2	 	The Executive Compensation Committee shall, as soon as reasonably practicable, notify each Participant affected of any such substitution,
variation or waiver of the Performance Target.

(46)

 

 

	7	 	APPROPRIATION OF FREE SHARES

	7.1	 	Provision of information by the Company to the Trustees
	 
	 	 	As soon as practicable after the end of the period to which the
Performance Target relates (in the case of Performance Allowances) or the
Free Shares Closing Date the Company shall inform the Trustee of:

	7.1.1	 	the name and address of each Participant to whom Free Shares are to be Appropriated, together with details of the Participating Company which
employs the Participant;
	 
	7.1.2	 	the number of Free Shares to be Appropriated to each Participant on this occasion.

	7.2	 	Appropriation
	 
	 	 	On the expected Free Shares Appropriation Date, the Trustee shall
Appropriate to each Participant the number of Free Shares notified to the
Trustee under Rule 7.1.
	 
	7.3	 	Notification of Appropriation to Participants
	 
	 	 	As soon as practicable after the Free Shares Appropriation Date, the
Trustee shall notify each Participant to whom Free Shares have been
Appropriated of:

	7.3.1	 	the number and description of Free Shares Appropriated to him;
	 
	7.3.2	 	the Free Shares Appropriation Date;
	 
	7.3.3	 	their Initial Market Value; and
	 
	7.3.4	 	the applicable Free Shares Holding Period.
	 
	8	 	RESTRICTIONS ON DEALINGS IN, AND PERMITTED TRANSFERS OF FREE SHARES

	8.1	 	Restrictions on disposals by Participants
	 
	 	 	Subject to Rules 27 and 29 during the Free Shares Holding Period a Participant shall:

	8.1.1	 	permit the Trustee to hold his Free Shares; and
	 
	8.1.2	 	not assign, charge or otherwise dispose of his beneficial interest in his Free Shares.

(47)

 

 

	8.2	 	Restrictions on disposals by the Trustee
	 
	 	 	Subject to Rules 9, 27 and 31 the Trustee:

	8.2.1	 	shall not dispose of any Free Shares, whether by transfer to the
Participant or otherwise, during the Free Shares Holding Period;
	 
	8.2.2	 	shall not dispose of any Free Shares after the Free Shares Holding
Period except in accordance with a direction given by or on behalf of the
Participant; and
	 
	8.2.3	 	shall not deal with any right conferred in respect of a Participant’s
Free Shares to be allotted other shares, securities or other rights except
pursuant to a direction given by or on behalf of the Participant or any
person in whom the beneficial interest in his Free Shares is for the time
being vested.

	8.3	 	Transfer of Free Shares after the Free Shares Holding Period

	8.3.1	 	A Participant may, at any time after the Free Shares Holding Period direct the Trustee by notice in writing to:

	 	8.3.1.1	 	transfer the Participant’s Free Shares to the Participant; or
	 
	 	8.3.1.2	 	transfer the Free Shares to some other person named by the Participant; or
	 
	 	8.3.1.3	 	dispose of the Free Shares by way of sale for the best consideration in money that can reasonably be obtained at the
time of sale and to account for the proceeds to the Participant or some other person named by the Participant.

	8.3.2	 	Within 30 days after receipt of a notice referred to in Rule 8.3.1 the Trustee shall comply with the instructions set out in such notice.
	 
	9	 	CESSATION OF RELEVANT EMPLOYMENT AND EARLY TRANSFER OF FREE SHARES

	9.1	 	Trustee to be notified of cessation of Relevant Employment
	 
	 	 	If a Participant ceases to be in Relevant Employment then the Company
shall within 14 days inform the Trustee of such cessation and whether the
provisions of Rule 9.2 or 9.3 apply.
	 
	9.2	 	Early transfer of Free Shares
	 
	 	 	Where the Trustee has been notified by the Executive Compensation
Committee in accordance with Rule 9.1 that this Rule 9.2 applies then as
soon as reasonably practicable after the receipt of such notification and
in any event within 30 days after the cessation of the Relevant
Employment

(48)

 

 

	 	 	the Trustee shall transfer the Free Shares to the Participant or as
directed by him prior to the transfer, in accordance with Rules 8.3.1.2
or 8.3.1.3 provided always that the Trustee shall first comply with Rule
33.
	 
	9.3	 	Forfeiture of Free Shares
	 
	 	 	Where the Trustee has been notified by the Executive Compensation
Committee in accordance with Rule 9.1 that this Rule 9.3 applies then,
subject to Rules 9.4 and 9.5 the Participant’s beneficial entitlement to
his Free Shares shall lapse immediately on his ceasing to be in Relevant
Employment before the end of the Forfeiture Period and he shall cease to
have any rights to such Free Shares.
	 
	9.4	 	Injury, disability, redundancy, retirement etc
	 
	 	 	Notwithstanding Rule 9.3 if a Participant ceases to be in Relevant Employment by reason of:

	9.4.1	 	injury or disability;
	 
	9.4.2	 	redundancy within the meaning of the Employment Rights Act 1996 or the Employment Rights (Northern Ireland) Order 1996;
	 
	9.4.3	 	a transfer of employment which is subject to the Transfer of Undertakings (Protection of Employment) Regulations 1981;
	 
	9.4.4	 	a change of Control or other circumstances giving rise to the Participant’s employing company ceasing to be an Associated Company of any
Participating Company;
	 
	9.4.5	 	retirement on or after reaching Retirement Age;

	 	 	then the Trustee shall act in accordance with Rule 9.2.
	 
	9.5	 	Death
	 
	 	 	If a Participant ceases to be in Relevant Employment by reason of his
death then the Trustee shall act in accordance with Rule 24.5.

(49)

 

 

PART II – PARTNERSHIP SHARES

	10	 	PARTNERSHIP SHARES INVITATIONS

	10.1	 	Issue of Partnership Shares Invitations
	 
	 	 	The Executive Compensation Committee may in their absolute discretion
determine that an Award of Partnership Shares may be made and,
accordingly, issue Partnership Shares Invitations.
	 
	10.2	 	Timing of Partnership Shares Invitations
	 
	 	 	Partnership Shares Invitations must be issued before the commencement of
any relevant Accumulation Period.
	 
	10.3	 	Contents of Partnership Shares Invitations
	 
	 	 	Partnership Shares Invitations shall be in such form as the Executive
Compensation Committee may determine from time to time and shall state:

	10.3.1	 	the Partnership Shares Closing Date;
	 
	10.3.2	 	the maximum salary deduction permitted under the Partnership Shares
Agreement (being the lesser of the Relevant Amount and such other amount
(being a multiple of £1) as the Executive Compensation Committee may
determine and specify);
	 
	10.3.3	 	the minimum salary deduction permitted on any occasion determined by the
Executive Compensation Committee which sum must be no greater than £10 per
month (or such other amount as may be permitted from time to time under
paragraph 47(2) of Schedule 2);
	 
	10.3.4	 	the expected Partnership Shares Acquisition Date being a date determined
by the Trustee which:

	 	10.3.4.1	 	where there is no Accumulation Period, shall be within 30
days after the last deduction from salary referred to in Rule
10.5.2 is made;
	 
	 	10.3.4.2	 	where there is an Accumulation Period shall be not more
than 30 days after the end of the Accumulation Period.

	10.3.5	 	that an Eligible Employee who wishes to accept Partnership Shares under
the Award shall submit to the Company, prior to the Partnership Shares
Closing Date, a duly completed Partnership Shares Agreement;

(50)

 

 

	10.3.6	 	if applicable, the maximum number of Partnership Shares to be made
subject to the Award on this occasion;
	 
	10.3.7	 	if appropriate, the commencement date (which may not commence later than
the date of the first salary deduction to be made under the Participant’s
Partnership Shares Agreement) and length of the Accumulation Period.

	 	 	The Executive Compensation Committee may specify that a particular
description of earnings is not to be regarded as forming part of a
Participant’s Salary. If it does so, the same treatment shall apply to
all Partnership Shares Agreements entered into in response to Partnership
Shares Invitations issued on the same occasion.
	 
	10.4	 	Partnership Shares Agreement and Partnership Shares Invitations
	 
	 	 	Each Eligible Employee shall be sent a Partnership Shares Agreement and a
Partnership Shares Invitation.
	 
	10.5	 	Contents of Partnership Shares Agreement
	 
	 	 	A Partnership Shares Agreement shall be in such form as the Executive
Compensation Committee may determine from time to time and shall:

	10.5.1	 	set out a notice in the form prescribed by regulations and pursuant to
paragraph 48 of Schedule 2;
	 
	10.5.2	 	require the Eligible Employee to state the amount of salary deduction(s)
being a multiple of £1 and not exceeding the maximum permitted under Rule
10.3.2 which he wishes to allocate for the purchase of Partnership Shares
under the Partnership Shares Agreement (“Partnership Share Money”); and
	 
	10.5.3	 	state the intervals at which such amounts should be deducted; and
	 
	10.5.5	 	state the commencement date (which may not commence later than the date
of the first salary deduction to be made under the Participant’s
Partnership Shares Agreement) and length of the Accumulation Period, if
applicable; and
	 
	10.5.6	 	if applicable, state the maximum number of Partnership Shares to be
included in the Award on this occasion.

	10.6	 	Partnership Shares Agreement may be withdrawn
	 
	 	 	A Partnership Shares Agreement shall take effect in relation to any
Award of Partnership Shares until such time as a Participant notifies the
Company that he no longer wishes to participate.

(51)

 

 

	10.7	 	Excess salary deductions
	 
	 	 	Any amounts deducted in excess of the amounts permitted must be paid over
to the Participant as soon as practicable.
	 
	10.8	 	Scaling down
	 
	 	 	If the Company receives applications for Partnership Shares in excess of
any maximum specified in accordance with Rule 10.3.6 the amount of
deduction of Partnership Share Money specified by each Participant shall
be reduced pro rata.
	 
	10.9	 	Partnership Share Money held for Eligible Employee
	 
	 	 	Partnership Share Money must subject to rules 11.4 and 14.1 be:

	10.9.1	 	paid to the Trustee as soon as practicable; and
	 
	10.9.2	 	held by the Trustee on behalf of a Participant (in an interest bearing
account or otherwise) with:

	 	10.9.2.1	 	a person falling within section 840A(1)(b) of ICTA 1988;
	 
	 	10.9.2.2	 	a building society; or
	 
	 	10.9.2.3	 	a firm falling within 840A(1)(c) of ICTA 1988

	 	 	until it is used to acquire Partnership Shares on a Participant’s behalf.
	 
	10.10	 	Interest on Partnership Share Money
	 
	 	 	The Trustee must account to a Participant for any interest received on
Partnership Share Money held on his behalf.

	11	 	INSTRUCTIONS GIVEN DURING ACCUMULATION PERIOD

	11.1	 	Variation of salary deductions and intervals
	 
	 	 	Subject to Rules 10.3.2, 10.3.3, 10.3.7, and notwithstanding Rule 10.5.5
a Participant may, with the prior agreement of the Company, vary the
amount and or the intervals of the salary deduction authorised under his
Partnership Shares Agreement.
	 
	11.2	 	Notice to suspend salary deductions
	 
	 	 	A Participant may, at any time direct the Company by notice in writing to:

(52)

 

 

	11.2.1	 	suspend the making of Salary deductions; or
	 
	11.2.2	 	recommence the making of Salary deductions

	 	 	under his Partnership Shares Agreement provided always that:

	11.2.3	 	the Participant may not permit the Company to make additional Salary
deductions to make up for any Salary deductions which were missed; and
	 
	11.2.4	 	the Participant may only make a direction under Rule 11.2.2 once in any
one Accumulation Period.

	11.3	 	Notice to terminate Partnership Shares Agreement
	 
	 	 	A Participant may, at any time notify the Company in writing that he
wishes to terminate his Partnership Shares Agreement.
	 
	11.4	 	Company to give effect to notices

	11.4.1	 	Where the Company receives a notice to suspend or terminate deductions
under Rule 11.2 or 11.3, it shall (unless a later date is specified in the
notice) within 30 days of receipt of the notice give effect to the same,
and shall:

	 	11.4.1.1	 	cease all further deductions of Partnership Share Money
under the Participant’s Partnership Shares Agreement;
	 
	 	11.4.1.2	 	in the case of a notice under Rule 11.3 subject to first
complying with Rule 32 pay over to that Participant as soon as
practicable all Salary deductions that have been made under
his Partnership Shares Agreement.

	11.4.2	 	When the Company receives a notice to recommence salary deductions under
Rule 11.2 it shall (unless a later date is specified in the notice)
recommence deductions on the date of the first deduction due under the
Partnership Shares Agreement following 30 days after receipt of the
notice.

	11.5	 	Partnership Shares Agreement to apply to new holding
	 
	 	 	Where during an Accumulation Period a transaction occurs in relation to
any of the shares to be acquired under a Partnership Shares Agreement
which results in a new holding of Shares being equated with the original
holding for the purposes of capital gains tax and the Participant gives
his consent, the Partnership Shares Agreement shall have effect following
that transaction as if it were an agreement for the purchase of Shares
comprised in the new holding.

(53)

 

 

	12	 	ACQUISITION OF PARTNERSHIP SHARES

	12.1	 	Acquisition of Shares by Trustees (no Accumulation Period)
	 
	 	 	After the deduction of Partnership Share Money the Company shall
calculate the number of Partnership Shares to be acquired on behalf of
each Participant by dividing each Participant’s Partnership Share Money
deducted under his Partnership Shares Agreement by the Partnership Shares
Market Value, and notify the Trustee who shall acquire such shares on
behalf of Participants within 30 days of such deduction.
	 
	12.2	 	Acquisition of Shares by Trustees (with Accumulation Period)

	12.2.1	 	After the expiry of the Accumulation Period the Company shall calculate
the number of Partnership Shares to be acquired on behalf of each
Participant by dividing each Participant’s aggregate Partnership Share
Money being Salary deducted under his Partnership Shares Agreement during
the Accumulation Period by the Partnership Shares Market Value and notify
the Trustee who shall acquire such Shares on behalf of Participants
accordingly.
	 
	12.2.2	 	The Trustee shall within 30 days of the end of the Accumulation Period
acquire the number of Shares notified to it in accordance with Rule 12.2.1
which shall be held on behalf of the respective Participant as Partnership
Shares.

	12.3	 	Notification of acquisition to Participants
	 
	 	 	As soon as practicable after the Partnership Shares Acquisition Date, the
Trustee shall notify each Participant on whose behalf Partnership Shares
have been acquired of:

	12.3.1	 	the number and description of Partnership Shares acquired on his behalf;
	 
	12.3.2	 	the Partnership Shares Acquisition Date;
	 
	12.3.3	 	the aggregate amount of the Participant’s Partnership Share Money applied by the Trustee in acquiring the Partnership Shares; and
	 
	12.3.4	 	the Partnership Shares Market Value.
	 
	13	 	TRANSFER OF PARTNERSHIP SHARES BY PARTICIPANT

	13.1	 	Participants may request transfer of Partnership Shares
	 
	 	 	A Participant may, at any time after the Partnership Shares Acquisition
Date direct the Trustee by notice in writing to:

(54)

 

 

	13.1.1	 	transfer his Partnership Shares to the Participant; or
	 
	13.1.2	 	transfer his Partnership Shares to some other person named by the
Participant; or
	 
	13.1.3	 	dispose of those Partnership Shares by way of sale and to account for
the proceeds to the Participant or some other person named by the
Participant.

	13.2	 	Trustee to comply with request
	 
	 	 	As soon as reasonably practicable, and in any event within 30 days after
receipt of the notice, the Trustee shall comply with the instructions set
out in such notice provided always that it shall first comply with Rules
32 and 33.

	14	 	CESSATION OF RELEVANT EMPLOYMENT

	14.1	 	Cessation of Relevant Employment prior to the Partnership Shares
Acquisition Date

	14.1.1	 	Where there is no Accumulation Period and a Participant ceases to be in
Relevant Employment before the Partnership Shares Acquisition Date but
after the deduction of Partnership Share Money he shall be treated as
ceasing to be in Relevant Employment immediately after his Partnership
Shares are Awarded to him.
	 
	14.1.2	 	Where there is an Accumulation Period and a Participant ceases to be in
Relevant Employment during the Accumulation Period the Company shall,
subject to first complying with Rule 32, pay over to that Participant as
soon as reasonably practicable all Salary deductions that have been made
under his Partnership Shares Agreement.
	 
	14.1.3	 	Where there is an Accumulation Period and a Participant ceases to be in
Relevant Employment after the final deduction of Partnership Share Money
and before the Partnership Shares Acquisition Date he shall be treated as
ceasing to be in Relevant Employment immediately after his Partnership
Shares are Awarded to him.

	14.2	 	Trustee to be notified of cessation of Relevant Employment following the
Partnership Shares Acquisition Date
	 
	 	 	If a Participant ceases to be in Relevant Employment following the
Partnership Shares Acquisition Date then the Company shall within 14 days
inform the Trustee of such cessation.

(55)

 

 

	14.3	 	Transfer of Partnership Shares on cessation of Relevant Employment
	 
	 	 	Where the Trustee receives a notification under Rule 14.2 then as
soon as reasonably practicable after the receipt of such
notification and in any event within 30 days after the cessation of
the Relevant Employment the Trustee shall transfer the Partnership
Shares to the Participant or as directed by him in writing prior to
the transfer provided always that the Trustee shall first comply
with Rule 33.

(56)

 

 

PART III – MATCHING SHARES

	15	 	NOTIFICATION OF MATCHING SHARES

	15.1	 	Relationship to Partnership Shares
	 
	 	 	Where the Executive Compensation Committee have exercised their
discretion under Rule 10.1 they may in their absolute discretion also
determine that an Award of Matching Shares shall be made to those
Eligible Employees who enter into a Partnership Shares Agreement.
	 
	15.2	 	Additional contents of Partnership Shares Agreement
	 
	 	 	Where the Executive Compensation Committee exercise their discretion
under Rule 15.1 then in addition to the requirements set out in Rule 10.5
each Partnership Shares Agreement shall state:

	15.2.1	 	the Matching Shares Appropriation Date (which shall be the same as the
Partnership Shares Acquisition Date);
	 
	15.2.2	 	the ratio of Matching Shares to Partnership Shares for this Award of
Partnership Shares which:

	 	15.2.2.1	 	shall not exceed a maximum of two Matching Shares for
every Partnership Share acquired on behalf of the Participant;
and
	 
	 	15.2.2.2	 	shall be the same ratio for all Participants;

	15.2.3	 	the circumstances and manner in which the ratio may be changed by the
Company, and if the Company decides to alter the ratio of Matching Shares
to Partnership Shares prior to the Partnership Share Acquisition Date they
shall notify each Participant affected prior to the Partnership Shares
Acquisition Date;
	 
	15.2.4	 	the Matching Shares Holding Period;
	 
	15.2.5	 	the Forfeiture Period applicable ;
	 
	15.2.6	 	that (as determined at the discretion of the Executive Compensation
Committee) the provisions of either Rules 18.3 or 18.4 shall apply to the
Award;
	 
	15.2.7	 	that the individual shall only be entitled to Matching Shares if he
remains an Eligible Employee at the Matching Shares Appropriation Date;
and
	 
	15.2.8	 	such additional information not inconsistent with the Rules and the
Trust Deed as the Executive Compensation Committee may from time to time
determine.

(57)

 

 

	16	 	APPROPRIATION OF MATCHING SHARES

	16.1	 	Provision of information by the Company to Trustee
	 
	 	 	At the same time as the Company notifies the Trustee pursuant to Rule
12.1 or 12.2 it shall additionally notify the Trustee of the number of
Matching Shares to be Appropriated to each Participant.
	 
	16.2	 	Appropriation of Matching Shares
	 
	 	 	Subject to Rule 24.12 on the Matching Shares Appropriation Date the
Trustee shall Appropriate to each Participant the number of Matching
Shares notified to it under Rule 16.1.
	 
	16.3	 	Notification of Appropriation to Participants
	 
	 	 	At the same time as making a notification pursuant to Rule 12.3 the
Trustee shall notify each Participant to whom Matching Shares have been
Appropriated of:

	16.3.1	 	the number and description of the Matching Shares Appropriated to him;
	 
	16.3.2	 	the Matching Shares Appropriation Date;
	 
	16.3.3	 	their Initial Market Value; and
	 
	16.3.4	 	the Matching Shares Holding Period.

	17	 	RESTRICTIONS ON DEALINGS IN, AND PERMITTED TRANSFERS OF MATCHING SHARES

	 	 	The provisions of Rule 8 shall apply mutatis mutandis to Matching Shares
during the Matching Shares Holding Period as they apply to Free Shares
during the Free Shares Holding Period.

	18	 	CESSATION OF RELEVANT EMPLOYMENT AND EARLY WITHDRAWAL OF PARTNERSHIP
SHARES

	18.1	 	Trustee to be notified of cessation of Relevant Employment
	 
	 	 	If a Participant ceases to be in Relevant Employment then the Company
shall within 14 days inform the Trustee of such cessation and whether the
provisions of Rule 18.3 or 18.4 apply.

(58)

 

 

	18.2	 	Early withdrawal of Partnership Shares
	 
	 	 	Where the Trustee receives a notice under Rule 13.1 before the expiry of
the applicable Forfeiture Period and it has been notified by the Company
that this Rule 18.2 applies, the Trustee shall act in accordance with
Rule 18.4.
	 
	18.3	 	Early transfer of Matching Shares
	 
	 	 	Where the Trustee has been notified by the Executive Compensation
Committee that this Rule 18.3 applies then as soon as reasonably
practicable after the receipt of such notification and in any event
within 30 days after the cessation of the Relevant Employment the Trustee
shall transfer the Matching Shares to the Participant or as directed by
him in writing prior to the transfer provided always that the Trustee
shall first comply with Rule 33.
	 
	18.4	 	Forfeiture of Matching Shares
	 
	 	 	Where the Trustee has been notified by the Executive Compensation
Committee that this Rule 18.4 applies then subject to Rules 18.5 and 18.6
the Participant’s beneficial entitlement to his Matching Shares shall
lapse immediately on his ceasing to be in Relevant Employment before the
end of the Forfeiture Period and he shall cease to have any rights to
such Matching Shares.
	 
	18.5	 	Injury, disability, redundancy, retirement etc
	 
	 	 	Notwithstanding Rule 18.4 if a Participant ceases to be in Relevant
Employment for a reason set out in Rule 9.4, the Trustee shall act in
accordance with Rule 18.3.
	 
	18.6	 	Death
	 
	 	 	If a Participant ceases to be in Relevant Employment by reason of his
death, the Trustee shall act in accordance with Rule 24.5.

(59)

 

 

PART IV – DIVIDEND SHARES

	19	 	PROVISION OF DIVIDEND SHARES

	19.1	 	Relationship to Plan Shares
	 
	 	 	The Executive Compensation Committee may in their absolute discretion
direct that:

	19.1.1	 	all cash dividends paid in respect of Plan Shares held on behalf of
Participants must be used to acquire further shares on their behalf; or
	 
	19.1.2	 	all cash dividends paid in respect of Plan Shares held on behalf of
Participants may at the election of Participants be used to acquire
further shares on their behalf referred to as Dividend Shares.

	19.2	 	Direction revocable
	 
	 	 	The Executive Compensation Committee may at any time revoke any
direction made pursuant to Rule 19.1.
	 
	19.3	 	Dividend not invested in Dividend Shares
	 
	 	 	Where dividends paid in respect of Plan Shares are not required to be
reinvested in Dividend Shares they must be paid over to Participants as
soon as practicable.
	 
	19.4	 	Timing of acquisition of Dividend Shares
	 
	 	 	The Trustee must use any dividends to be used to acquire Dividend Shares
on behalf of Participants within 30 days of the date when they receive
such dividend.
	 
	19.5	 	Participants to be treated equally
	 
	 	 	In exercising its powers in relation to the acquisition of Dividend
Shares the Trustee shall treat all Participants fairly and equally.

	20	 	AMOUNT AND TYPE OF DIVIDEND SHARES

	20.1	 	Type of Shares to be used as Dividend Shares
	 
	 	 	Dividend Shares shall be of the same class, and carry the same rights as
the Participant’s Plan Shares in respect of which the relevant dividends
were paid and must not be subject to any provision for forfeiture.

(60)

 

 

	20.2	 	Calculation of number of Dividend Shares

	20.2.1	 	Subject to Rule 20.2.3, the number of Shares to be acquired as Dividend
Shares on behalf of each Participant on each occasion shall be calculated
by taking the aggregate amount of the cash dividends paid on the
Participant’s Plan Shares and dividing this amount by the Market Value of
the Shares on the Dividend Shares Acquisition Date.
	 
	20.2.2	 	The basis for the calculation carried out under this Rule 20.2 shall be
the same for all Participants who are to receive Dividend Shares on that
occasion.
	 
	20.2.3	 	The maximum amount of Dividend Shares acquired pursuant to the Plan or
any other share incentive plans established by the Company or a Connected
Company and approved by the Inland Revenue under Schedule 2 may not exceed
the Relevant Amount.
	 
	21	 	NOTIFICATION OF ACQUISITION OF DIVIDEND SHARES

	21.1	 	As soon as practicable after the Dividend Shares Acquisition Date, the
Trustee shall notify each Participant for whom Dividend Shares have been
acquired of:

	21.1.1	 	the Dividend Shares Acquisition Date;
	 
	21.1.2	 	the number and description of Dividend Shares acquired on his behalf;
	 
	21.1.3	 	their Initial Market Value;
	 
	21.1.4	 	the Dividend Shares Holding Period; and
	 
	21.1.5	 	the amount, if any, of any dividend carried forward.
	 
	22	 	RESTRICTIONS ON DEALINGS IN AND PERMITTED TRANSFERS OF DIVIDEND SHARES

	 	 	The provisions of Rule 8 shall apply mutatis mutandis to Dividend Shares
during the Dividend Shares Holding Period as they apply to Free Shares
during the Free Shares Holding Period.

(61)

 

 

	23	 	CESSATION OF RELEVANT EMPLOYMENT

	23.1	 	Trustee to be notified of cessation of Relevant Employment
	 
	 	 	If a Participant ceases to be in Relevant Employment then the Company
shall within 14 days inform the Trustee of such cessation.
	 
	23.2	 	Early transfer of Dividend Shares (except on death)
	 
	 	 	When the Trustee receives a notification under Rule 23.1 (other than on
death), and in any event within 30 days after the cessation of the
Relevant Employment, the Trustee shall transfer the Dividend Shares to
the Participant, or as the Participant has directed the Trustee in
writing, received prior to the transfer.
	 
	23.3	 	Early Transfer of Dividend Shares (on death)
	 
	 	 	If a Participant ceases to be in Relevant Employment by reason of his
death then the Trustee shall act in accordance with Rule 24.5.

(62)

 

 

PART V – GENERAL REQUIREMENTS

	24	 	REQUIREMENTS GENERALLY APPLICABLE TO PLAN SHARES

	24.1	 	Participants may elect not to participate
	 
	 	 	Notwithstanding any other Rule, a Participant may direct that Shares are
not to be Appropriated to him or acquired on his behalf, by giving
written notice to the Company before the relevant Appropriation date or
acquisition date.
	 
	24.2	 	Individuals eligible for Appropriation
	 
	 	 	No Appropriation or acquisition shall be made to or on behalf of an
individual who has ceased to be an Eligible Employee.
	 
	24.3	 	Shares not Appropriated or forfeited
	 
	 	 	Shares which are not Appropriated nor acquired on behalf of the
Participant or Free Shares or Matching Shares which have been forfeited
under the Rules shall be retained by the Trustee for use under the Plan
on future occasions.
	 
	24.4	 	Shares ceasing to qualify
	 
	 	 	If shares which are held by the Trustee for the purposes of the Plan
cease to be Shares, they shall not be used for the purposes of the Plan.
	 
	24.5	 	Death of Participant

	 	24.5.1	 	Following the death of a Participant, the Trustee shall, as soon
as practicable, transfer the Participant’s Plan Shares to or to the
order of his legal personal representatives.
	 
	 	24.5.2	 	All references in the Plan to a Participant shall, where the
context requires, be references to the legal personal representative
of the Participant.

	24.6	 	Funds to be provided by Participating Companies

	24.6.1	 	The Trustee shall acquire by subscription or purchase using monies paid
to it by each relevant Participating Company as soon as practicable after
receiving such monies, the number of Shares to be Appropriated to that
Participating Company’s Participants as Free Shares or Matching Shares;
and
	 
	24.6.2	 	the Trustee shall, if so directed by the Executive Compensation
Committee, acquire by subscription or purchase Shares at any time using
monies paid to it by Participating

(63)

 

 

	 	 	Companies for future Appropriations of Shares to, or acquisitions
of Shares on behalf of, Eligible Employees.

	24.7	 	Shares purchased off market by the Trustee
	 
	 	 	Where the Trustee proposes to purchase Shares otherwise than through the
New York Stock Exchange, the Trustee shall not purchase the Shares for a
price in excess of that for which, in the opinion of the Company’s
brokers, it could purchase those Shares through the New York Stock
Exchange.
	 
	24.8	 	Subscription price
	 
	 	 	Where Shares are subscribed for by the Trustee then the subscription
price for each Share shall be determined by the Executive Compensation
Committee but shall not be less than the higher of:

	24.8.1	 	the Market Value of a Share on the day on which the Shares are allotted
to the Trustee; and
	 
	24.8.2	 	the nominal value of a Share.

	24.9	 	Rights attaching to subscribed Shares
	 
	 	 	Shares acquired by the Trustee by subscription shall, as to voting,
dividend, transfer and other rights, including those arising on a
liquidation of the Company, rank equally in all respects and as one class
with other issued shares of the same class at the date of subscription
save as regards any rights attaching to such Shares by reference to a
record date prior to the date of such subscription.
	 
	24.10	 	Shares with different rights
	 
	 	 	If the Shares to be Appropriated to, or acquired on behalf of each
Participant, do not carry the same rights as to dividends or otherwise,
the shares appropriated to or acquired on behalf of each Participant
shall (as nearly as possible) contain the same proportions of Shares with
different rights.
	 
	24.11	 	Foreign Dividends
	 
	 	 	Where any foreign cash dividend is received in respect of Plan Shares
held on behalf of a Participant, the Trustee shall give him notice of the
amount of any foreign tax deducted from the dividend before it was paid.

(64)

 

 

	24.12	 	Timing of contributions to Trustee
	 
	 	 	Monies to be paid by the Participating Companies to the Trustee for the
purchase or subscription of Shares in respect of an Appropriation shall
be paid not later than two dealing days immediately prior to such
relevant Appropriation date.

	25	 	LIMIT ON NUMBER OF SHARES AVAILABLE UNDER THE PLAN

	25.1	 	General
	 
	 	 	The number of Shares which are to be available under the Plan shall be
limited as set out in this Rule 25.
	 
	25.2	 	Limits
	 
	 	 	The number of shares in Gannett Co., Inc. that may be issued, and shall
be reserved for issuance pursuant to rights granted under the Plan is up
to 1,000,000 shares of Gannett Co., Inc., which may be authorised and
unissued or treasury shares. The number of shares of stock of Gannett
Co., Inc. subject to the Plan may be adjusted by the Executive
Compensation Committee for stock splits, consolidation and the like.
	 
	25.3	 	Computation
	 
	 	 	For the purpose of the limit contained in Rule 25.2:

	25.3.1	 	no account shall be taken of shares which are not new issue shares;
	 
	25.3.2	 	there shall be disregarded any shares subject to rights which have
lapsed, been renounced or otherwise become incapable of being exercised;
and
	 
	25.3.3	 	any shares issued on the exercise or vesting of rights shall be
taken into account once only (when the rights are granted) and shall not
fall out of account when the rights are exercised.]
	 
	26	 	LIMIT ON FUNDING OF PLAN

	 	 	The maximum amount of funds which may be made available under the Plan in
respect of any Accounting Period shall be determined by the Executive
Compensation Committee taking into account any factors which the
Executive Compensation Committee consider relevant.

	27	 	PERMITTED DEALINGS IN PLAN SHARES

	27.1	 	A Participant shall be entitled at any time to direct the Trustee:

	27.1.1	 	to accept an offer for any of his Plan Shares if the acceptance will
result in a new holding being equated with the original shares for the
purposes of capital gains tax; or

(65)

 

 

	27.1.2	 	to accept an offer of a Qualifying Corporate Bond, whether alone or with
cash or other assets or both, for his Plan Shares if the offer forms part
of a general offer as referred in Rule 27.1.3; or
	 
	27.1.3	 	to accept an offer of cash, with or without other assets, for his Plan
Shares if the offer forms part of a general offer which is made to holders
of shares of the same class as his Plan Shares or of shares in Gannett
Co., Inc. and which is made in the first instance on a condition such that
if it is satisfied the person making the offer will have control of
Gannett Co., Inc. within the meaning of section 416 of ICTA 1988; or
	 
	27.1.4	 	to agree a transaction affecting his Plan Shares, or such of them as are
of a particular class, if the transaction would be entered into pursuant
to a compromise, arrangement or scheme applicable to or affecting:

	 	27.1.4.1	 	all the ordinary share capital of Gannett Co., Inc. or, as
the case may be, all the shares of the class in question; or
	 
	 	27.1.4.2	 	all the shares, or all the shares of the class in
question, which
are held by a class of shareholder identified otherwise
than by reference to their employment or their
participation in the Plan or any other approved share
incentive plan.

	28	 	RECEIPTS BY THE TRUSTEE

	 	 	Subject to Rule 32, the Trustee shall pay or transfer to a Participant
any money or money’s worth it receives in respect of, or by reference to,
the Participant’s Plan Shares unless it is a Capital Receipt which forms
part of a new holding referred to in Rule 30, provided that the Trustee
shall not distribute any Capital Receipt to a Participant if the amount
payable to that Participant would be less than £3.

	29	 	EXERCISE OF VOTING RIGHTS ATTACHING TO PLAN SHARES

	29.1	 	Trustee to notify Participants of resolutions
	 
	 	 	While Plan Shares are registered in the name of the Trustee, the Trustee
may, in respect of any matter upon which, at a general meeting of Gannett
Co., Inc. or at a meeting of the holders of any class of shares of that
company, it is entitled to exercise any voting rights attaching to those
Plan Shares, invite the Participants on whose behalf those Plan Shares
are held to direct it as to such exercise. The Trustee shall not be
entitled in respect of Plan Shares held on behalf of Participants to vote
on a show of hands unless all directions received from Participants who
have given directions in respect of the particular resolution are
identical. The Trustee shall not in any circumstances be under an
obligation to call for a poll. If there is a poll, the Trustee shall vote
only in accordance with the directions of Participants who have given
directions and shall not vote in respect of Plan Shares where no
directions have been received.

(66)

 

 

	29.2	 	Notification of Participants’ directions to Trustee to be in writing
	 
	 	 	Any direction given by a Participant to the Trustee pursuant to Rule 29.1
shall be in writing under the hand of the Participant and shall not be
binding upon the Trustee unless it has been deposited at the registered
office of the Company not less than 96 hours before the time for the
holding of the meeting.

	30	 	COMPANY RECONSTRUCTIONS

	30.1	 	New holdings of Shares
	 
	 	 	Subject to Rule 30.2, where there occurs in relation to a Participant’s
Plan Shares a company reconstruction which results in a new holding, or
would result in a new holding were it not for the fact that the new
holding consists of or includes a Qualifying Corporate Bond:

	30.1.1	 	the company reconstruction shall be treated as not involving a disposal
of the Plan Shares comprised in the original holding;
	 
	30.1.2	 	references in the Rules to a Participant’s Plan Shares shall be
construed, after the date of the company reconstruction, as being
references to the shares comprised in the new holding;
	 
	30.1.3	 	such new holding shall be deemed to have been Appropriated to or
acquired on behalf of the Participant on the date the original holding was
Appropriated to or acquired by him and shall be held by the Trustee on the
same terms.

	30.2	 	Meaning of “new holding”
	 
	 	 	For the purpose of Rule 30.1:

	30.2.1	 	in the context of a new holding, any reference in this Rule 30 to shares
includes a reference to securities and rights of any description which
form part of the new holding for the purpose of Chapter II of Part IV to
Taxation of Chargeable Gains Act 1992; and
	 
	30.2.2	 	an issue of shares of any of the following descriptions (in respect of
which a charge to income tax arises) made as part of a company
reconstruction shall not be treated as forming part of a new holding:

	 	30.2.2.1	 	redeemable shares or securities issued as mentioned in
section 209(2)(c) ICTA 1988;
	 
	 	30.2.2.2	 	share capital issued in circumstances such that section
210(1) ICTA 1988 applies;

(67)

 

 

	 	30.2.2.3	 	share capital to which section 249 ICTA 1988 applies.

	31	 	RIGHTS ISSUES

	31.1	 	Application of rule
	 
	 	 	This Rule 31 applies to rights attaching to a Participant’s Plan Shares
to be allotted, on payment, other shares, securities or rights of any
description (together referred to as “Rights”).
	 
	31.2	 	Trustee to provide information to Participants
	 
	 	 	The Trustee shall, inform each Participant of any Rights arising in
respect of Plan Shares and shall either send the Participant a copy of
the document relating to the Rights or sufficient details to enable the
Participant to act in accordance with Rule 31.3.
	 
	31.3	 	Participants to give written directions to Trustee
	 
	 	 	The Trustee shall deal with the Rights only pursuant to a written
direction given by, or on behalf of, the Participant or any person in
whom the beneficial interest in the Plan Shares is for the time being
vested. Such written direction must be received by the Trustee before
the expiry of four days before the closing date for acceptance of the
Rights offer or within such other time limit set at the absolute
discretion of the Trustee, and may direct the Trustee:

	31.3.1	 	to take up all or part of the Rights provided that such instruction is
accompanied by payment in cash of the amount necessary to exercise such
rights; or
	 
	31.3.2	 	to sell all of the Rights; or
	 
	31.3.3	 	to sell such part of the Rights as enables the Trustee to use the
proceeds of sale to exercise entitlement to the remaining Rights of the
Participant.

	31.4	 	Cash amounts arising to be dealt with by Trustee
	 
	 	 	Any cash arising from the disposal of the Rights (except insofar as it is
used to exercise such Rights in accordance with Rule 31.3.3) shall be
dealt with by the Trustee in accordance with Rule 28.
	 
	31.5	 	Failure by Participant to give any direction
	 
	 	 	If a Participant fails to give any direction under Rule 31.3, or has not
otherwise authorised the Trustee, or fails to pay any appropriate amount
of cash, then the Trustee shall take no action in respect of the Rights
associated with that Participant’s Plan Shares.

(68)

 

 

	32	 	DUTY TO ACCOUNT FOR PAYE ON CASH AMOUNTS

	32.1	 	Trustee to make payments
	 
	 	 	The Trustee shall withhold from:

	32.1.1	 	a Capital Receipt ;
	 
	32.1.2	 	any monies returned to individuals under Rules 10, 11 and 12; and
	 
	32.1.3	 	the proceeds of a disposal of Plan Shares by the Trustee in accordance
with a direction from a Participant (except in so far as the proceeds are
used to take up Rights in accordance with Rule 31.3.3)

	 	 	an amount equal to any income tax and employee’s national insurance
contributions chargeable on such sum.
	 
	32.2	 	Trustee to deal with PAYE deductions

	32.2.1	 	The Trustee shall if it is responsible for operating PAYE and deducting
national insurance contributions in relation to such sum as is referred to
in Rule 32.1, retain it, or if it is not so responsible pay such sum to
one or more Participating Companies in proportion to their respective
obligations to operate PAYE in relation to such sum.
	 
	32.2.2	 	If there is no Participating Company for the purposes of Rule 32.2.1 the
Trustee shall deduct income tax at the basic rate for the time being in
force and employees’ national insurance contributions as if the
Participant were a former employee of the Trustee.
	 
	33	 	DUTY TO ACCOUNT FOR PAYE ON TRANSFERS OF ASSETS

	33.1	 	Trustee to make PAYE deductions
	 
	 	 	Where under any Rule the Trustee is to transfer to a Participant:

	33.1.1	 	Free Shares prior to the fifth anniversary of the Free Shares Appropriation Date;
	 
	33.1.2	 	Partnership Shares prior to the fifth anniversary of the Partnership
Shares Appropriation Date; or
	 
	33.1.3	 	Matching Shares prior to the fifth anniversary of the Matching Shares
Appropriation Date

	 	 	the Trustee shall unless otherwise provided with funds from the
Participant to meet any liability for income tax and/or employee’s
national insurance contributions, dispose of a sufficient number of the
Participant’s Plan Shares ( for the best consideration in money that can
reasonably be

(69)

 

 

	 	 	obtained at the time of sale), the proceeds of which shall (as far as
possible) be equal to any income tax and/or employees’ national insurance
contributions chargeable on the Plan Shares to be transferred and for
which the Trustee or a Participating Company is required to make a PAYE
deduction.
	 
	33.2	 	Trustee to deal with PAYE deductions
	 
	 	 	The Trustee and/or a Participating Company shall account to the Board of
Inland Revenue for any income tax and/or employees’ national insurance
contributions referred to in Rule 33.1 and shall pay over to the
Participant the difference (if any) between the proceeds from the
disposal of his Plan Shares under Rule 33.1 and the amount due.
	 
	34	 	APPORTIONMENT OF CAPITAL RECEIPTS
	 
	34.1	 	Treatment of Capital Receipts
	 
	 	 	If the Trustee receives any Capital Receipt in respect of, or by
reference to, any Plan Shares held on behalf of more than one
Participant, then, if and to the extent that such Capital Receipt cannot
be precisely divided between such Participants in the appropriate
proportions:

	34.1.1	 	to the extent that it is money’s worth, the Trustee shall sell it for
the best possible consideration in money that can reasonably be obtained
and shall divide the proceeds of sale (after deducting any expenses of
sale and any taxation which may be payable by the Trustee) among the
Participants in question; and
	 
	34.1.2	 	to the extent that it is money the Trustee’s obligations under this Rule
34 shall be deemed to be discharged if the Trustee pays to each
Participant the appropriate amount, rounded down to the nearest penny.

	34.2	 	Trustee to inform Participants
	 
	 	 	The Trustee shall inform each Participant in respect of whose Plan Shares
the Capital Receipt was received of the treatment thereof for income tax
purposes.

	35	 	TERMINATION OF PLAN

	35.1	 	Company may terminate Plan
	 
	 	 	The Company (with approval by the Executive Compensation Committee) may
at any time decide to terminate the Plan and if it does so must issue a
plan termination notice in accordance with paragraph 89(1) of Schedule 2
copies of which shall be given without delay to:

	35.1.1	 	the Inland Revenue;

(70)

 

 

	35.1.2	 	the Trustee; and
	 
	35.1.3	 	each Participant.

	35.2	 	Consequences of termination of Plan
	 
	 	 	If the Company issues a plan termination notice in accordance with Rule 35.1:

	 	35.2.1	 	no further Awards may be made under the Plan;
	 
	 	35.2.2	 	the Trustees shall remove any Plan Shares from the Plan in
accordance with paragraph 90 of Schedule 2; and
	 
	 	35.2.3	 	any Partnership Share Money held on behalf of a Participant must
be paid to him as soon as practicable thereafter.

	35.3	 	Inland Revenue withdrawal of Plan approval
	 
	 	 	If Inland Revenue approval of the Plan is withdrawn any Partnership Share
Money held on behalf of an Participant must be paid to him as soon as
practicable thereafter.

	36	 	SHARES FROM QUALIFYING SHARE OWNERSHIP TRUSTS

	 	 	Where Shares are transferred to the Trustee in accordance with paragraph
78 of Schedule 2, they shall award such Shares only as Free and Matching
Shares, and in priority to other available Shares.

	37	 	NOTICES

	37.1	 	Notice by Company, a Participating Company or the Trustee
	 
	 	 	Any notice, document or other communication given by, or on behalf of the
Company, a Participating Company or the Trustee to any person in
connection with the Plan shall be deemed to have been duly given if
delivered to him at his place of work, if he is employed by a
Participating Company, or sent through the post in a pre paid envelope to
the address last known to the Company to be his address and, if so sent,
shall be deemed to have been duly given on the date of posting.
	 
	37.2	 	Deceased Participant
	 
	 	 	Any notice, document or other communication given to a Participant shall
be deemed to have been duly given notwithstanding that such person is
then deceased (and whether or not the Company or Trustee has notice of
his death) except where his personal representatives have established
their title to the satisfaction of the Company or Trustee as appropriate
and supplied to

(71)

 

 

	 	 	the Company and the Trustee an address to which notices, documents and
other communications are to be sent.
	 
	37.3	 	Notice to Company or Trustee
	 
	 	 	Any notice, document or other communication given to the Company, a
Participating Company or the Trustee in connection with the Plan shall be
delivered or sent through the post to the Company secretary at the
Company’s registered office or such other address as may from time to
time be notified to Eligible Employees or Participants but shall not in
any event be deemed to be duly given unless it is actually received at
such address.
	 
	37.4	 	Trustee to distribute Company documentation
	 
	 	 	If the Trustee receives any annual or interim report, notice of meeting,
circular, letter of offer or other documentation (excepting a dividend
warrant or a document of title to shares, securities or rights) relating
to any Plan Shares, the Trustee may, as soon as reasonably practicable,
send, or procure the sending of, a copy of such document to each
Participant on behalf of whom such Plan Shares are held.
	 
	37.5	 	Notification of liability to income tax
	 
	 	 	Where a Participant has become liable to income tax in relation to the
Plan under any relevant provision of ICTA 1988 or ITEPA 2003 the Trustee
shall inform the Participant of any fact material to determining that
liability as soon as reasonably practicable.

	38	 	PROTECTION OF THE TRUSTEE

	 	 	Any sale by the Trustee of shares, securities or rights which is effected
through a member of the London Stock Exchange acting in the ordinary
course of his business shall be presumed to have been made for the best
consideration that could reasonably be obtained at the time of the sale.

	39	 	APPLICATION FOR LISTING OR ADMISSION TO TRADING OF PLAN SHARES

	 	 	While Shares are listed on the New York Stock Exchange Gannett Co., Inc.
shall, at its expense, make application for, and use its reasonable
endeavours to obtain listing on the New York Stock Exchange for Plan
Shares.

	40	 	RELATIONSHIP OF PLAN TO CONTRACT OF EMPLOYMENT

	40.1	 	Notwithstanding any other provision of this Plan:

(72)

 

 

	40.1.1	 	the Plan or benefits available under the Plan shall not form part of any
contract of employment between any Participating Company and an Eligible
Employee;
	 
	40.1.2	 	unless expressly so provided in his contract of employment, an Eligible
Employee has no right to an Appropriation;
	 
	40.1.3	 	the benefit to an Eligible Employee of participation in the Plan shall
not form any part of his remuneration or count as his remuneration for any
purpose and shall not be pensionable; and
	 
	40.1.4	 	if an Eligible Employee ceases to have a Relevant Employment, he shall
not be entitled to compensation for the loss of any right or benefit or
prospective right or benefit under the Plan whether by way of damages for
unfair dismissal, wrongful dismissal, breach of contract or otherwise.
	 
	41	 	ALTERATIONS

	 	 	No modification, alteration, or amendment to these Rules shall be made
except in accordance with clause 22 of the Trust Deed.

(73)

 

 

SCHEDULE 2

LIST OF PARTICIPATING COMPANIES

	 	 	 	 	 	 	 
	Name
	 	Registered Office
	 	Company Number

	Newsquest Media (Southern) Limited, formerly Newsquest Media (Southern) plc

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	1350	 
	 
	 	 	 	 	 	 
	Newsquest (London) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3105111	 
	 
	 	 	 	 	 	 
	Newsquest (Essex) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3102787	 
	 
	 	 	 	 	 	 
	Newsquest (Midlands South) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3104052	 
	 
	 	 	 	 	 	 
	Newsquest (Lancashire) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3102566	 
	 
	 	 	 	 	 	 
	Newsquest (Oxfordshire & Wiltshire) Limited, formerly Newsquest (Oxfordshire) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3223511	 
	 
	 	 	 	 	 	 
	Newsquest (Bradford) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3223515	 
	 
	 	 	 	 	 	 
	Newsquest (North East) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3223496	 
	 
	 	 	 	 	 	 
	Newsquest (Sussex) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3223499	 
	 
	 	 	 	 	 	 
	Newsquest (Kendal)

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3223761	 
	 
	 	 	 	 	 	 
	Newsquest (Wiltshire) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3223507	 
	 
	 	 	 	 	 	 
	Newsquest (York) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3223271	 
	 
	 	 	 	 	 	 
	Newsquest (Cheshire/Merseyside) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3103884	 
	 
	 	 	 	 	 	 
	Newsquest Media Group Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	1676637	 
	 
	 	 	 	 	 	 
	Newsquest (Leeds) Limited, formerly Newsquest Printing (Worcester) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3104055	 
	 
	 	 	 	 	 	 
	Newsquest Printing (Lancashire) Limited, formerly Newsquest Printing (Lostock) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3104061	 
	 
	 	 	 	 	 	 
	Newsquest Printing (Colchester) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	3104066	 
	 
	 	 	 	 	 	 
	Southern Binders Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	01334245	 

(74)

 

 

	 	 	 	 	 	 	 
	Southernprint Limited, formerly Southernprint (Web Offset) Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	01085192	 
	 
	 	 	 	 	 	 
	Southernprint (Web Offset) Limited, formerly Southernprint Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	894964	 
	 
	 	 	 	 	 	 
	Newsquest Financial Media Limited, formerly Southern Magazines Limited

	 	58 Church Street, Weybridge, Surrey

KT13 8DP
	 	 	2231405	 

(75)exv10w6w5

 

Exhibit 10.6.5

State of New Jersey

DEPARTMENT OF HUMAN SERVICES

DIVISION OF MEDICAL ASSISTANCE AND HEALTH SERVICES

PO Box 712

	 	 	 	 	 
	JAMES E. MCGREEVEY
	 	TRENTON, NJ 08625-0712
	 	JAMES M. DAVY
	Governor
	 	TELEPHONE 1-800-356-1561
	 	Commissioner
	 	 	 	 	 
	
	 	 	 	ANN CLEMENCY KOHLER
	
	 	 	 	Director

June 1, 2004

Norine Yukon

President & CEO

AMERIGROUP New Jersey, Inc. 

399 Thornall Street, 9th Floor

Edison, NJ 08837

Dear Ms. Yukon:

Enclosed is your copy of a recently processed contract amendment.

The amendment will extend the NJ Care 2000+ managed care contract
through June 30, 2005. This amendment has been approved by the
Centers for Medicare and Medicaid Services (CMS).

Thank you.

	 	 	 
	

	 	Sincerely,
	 
	 	 
	

	 	Rita Hemingway
	

	 	Director, Contract Relations
	

	 	Office of Managed Health Care

RH:dv

Enclosure

c: Jill Simone, MD
    John
Koehn

 

 

STATE OF NEW JERSEY

DEPARTMENT OF HUMAN SERVICES

DIVISION OF MEDICAL ASSISTANCE AND HEALTH SERVICES

AND

AMERIGROUP NEW JERSEY, INC.

AGREEMENT TO PROVIDE HMO SERVICES

In accordance with Article 7, section 7.11.2A and 7.11.2B of the contract
between AMERIGROUP New Jersey, Inc. and the State of New Jersey, Department of
Human Services, Division of Medical Assistance and Health Services (DMAHS),
effective date October 1, 2000, all parties agree that the contract shall be
amended, effective July 1, 2004 , as follows:

	1.	 	Article 1, “Definitions”, the definition of Complaint shall be amended
as reflected in the relevant page of Article 1 attached hereto and
incorporated herein.

 

 

	2.	 	Article 4, “Provision of Health Care Services” Sections 4.1.1.Q
(new); 4.1.2(A)24; 4.1.4(A); 4.1.4(B); 4.1.5(A); 4.2.1(E);
4.2.6(B)7(d)ii; 4.2.6(B)7(f)ii.1; 4.4(B)1; 4.6.1(C)5; 4.6.2(P);
4.6.2(Q)1; 4.8.3(B) (new); 4.8.5; 4.8.8(H)7; 4.8.8(1); 4.8.8(M)3(c);
4.8.8(M)3(j); 4.8.8(M)3(n); 4.8.8(M)3(q); 4.8.8(M)3(s) and 4.9.2 shall
be amended as reflected in Article 4, Sections 4:1.1.Q, 4.1.2(A)24,
4.1.4(A), 4.1.4(B), 4.1.5(A), 4.2.1(E), 4.2.6(B)7(d)ii,
4.2.6(B)7(f)ii.1, 4.4(B)1, 4.6.1(C)5, 4.6.2(P), 4.6.2(0)1, 4.8.3(B),
4.8.5, 4.8.8(H)7, 4.8.8(1), 4.8.8(M)3(c), 4.8.8(M)3(j), 4.8.8(M)3(n),
4.8.8(M)3(q), 4.8.8(M)3(s) and 4.9.2 attached hereto and incorporated
herein.
	 
	3.	 	Article 5, “Enrollee Services” Sections 5.5(G); 5.8.2(S) and
5.15.1(A) shall be amended as reflected in Article 5, Sections 5.5(G),
5.8.2(S) and 5.15.1(A) attached hereto and incorporated herein.
	 
	4.	 	Article 6, “Provider Information” Section 6.2(D) shall be amended
as reflected in Article 6, Section 6.2(D) attached hereto and
incorporated herein.
	 
	5.	 	Article 7, “Terms and Conditions” Sections 7.16.7(A)1; 7.16.7(B)1;
7.20.2(C); 7.26(F) and 7.26(L) (new) shall be amended as reflected in
Article 7, Sections 7.16.7(A)1, 7.16.7(B)1, 7.20.2(C), 7.26(F) and
7.26(L) attached hereto and incorporated herein.
	 
	6.	 	Article 8, “Financial Provisions” Sections 8.5.4; 8.8(0) and
8.10(B) shall be amended as reflected in Article 8, Sections 8.5.4,
8.8(0) and 8.10(B) attached hereto and incorporated herein.
	 
	7.	 	Appendix, Section A, “Reports”

	•	 	A.4.1 - Provider Network File: Attachment E (revised);
	 
	•	 	A.4.2 - Organ Transplant Procedure (new);
	 
	•	 	A.4.4 - Certification of Provider Network Report;

 

 

	•	 	A.7.1 - Certifications: 1) Certification of Enrollment Information
Relating to Payment Under The Medicaid/NJ FamilyCare Programs; 2)
Certification of Encounter Information Relating to Payment Under the
Medicaid/NJ FamilyCare Programs; 3) Certification of .Any Information
Required By the State and Contained in Contracts Proposals and Related
Documents Relating to Payments Under the Medicaid/NJ FamilyCare
Programs;
	 
	•	 	A. 7.8 - Table 6D: Revenue and Expenses, Summary of MCSA Groups
on. Claims Paid During Current Quarter (new); .
	 
	•	 	A. 7.8 - Table 6E: Revenue and Expenses, Summary of MCSA Groups
on Claims Paid Year to Date (new);
	 
	•	 	A.7.20 - Table 18B: Federally Qualified Health Center Encounters
(new);
	 
	•	 	A.7.21 - Table 19: Income Statement By Rate Cell Grouping, Table
19A thru V;
	 
	•	 	A.7.22 - Table 20: Lag Reports
	 
	•	 	A.7.24 - Table 22: Plan H Invoice Form

shall be amended as reflected in Appendix, Section A, A.4.1, A.4.2, A.4.4,
A.7.1, A.7.8, A.7.20, A.7.21, A.7.22 and A.7.24 attached hereto and
incorporated herein.

8. Appendix, Section B, “Reference Materials”

	•	 	B.5.2 - Cost-Sharing Requirements for NJ FamilyCare Plan C, Plan D
and Plan H Beneficiaries;
	 
	•	 	B.7.3 - Financial Guide for Reporting Medicaid/NJ FamilyCare Rate
Cell Grouping Costs; and
	 
	•	 	B.7.5 - EPSDT Codes;

   shall be amended as reflected in Appendix, Section B, B.5.2, B.7.3,
and B.7.5 attached hereto and incorporated herein.

	9.	 	Appendix, Section C, “Capitation Rates,” shall be revised as reflected
in SFY 2005 Capitation Rates attached hereto and incorporated herein

 

 

All other terms and conditions of the October 1, 2000 contract and
subsequent amendments remain unchanged except as noted above.

The contracting parties indicate their agreement by their signatures.

	 	 	 	 	 	 	 
	 	 	AMERIGROUP	 	State of New Jersey
	 
	 	 	 	 	 	 
	 	 	New Jersey, Inc.	 	Department of Human Services
	 
	 	 	 	 	 	 
	BY:

	/s/ Norine Yukon
	 	BY:
	 	
	

	
 	 	 	 	 
	

	 	 	 	 	 	Ann Clemency Kohler
	 
	 	 	 	 	 	 
	TITLE: President & CEO 	 	TITLE: Director, DMAHS
	 
	 	 	 	 	 	 
	DATE: March 23, 2004 	 	DATE: April 13, 2004
	 
	 	 	 	 	 	 
	APPROVED AS TO FORM ONLY	 	 	 	 
	 
	 	 	 	 	 	 
	Attorney General	 	 	 	 
	 
	 	 	 	 	 	 
	State of New Jersey	 	 	 	 
	 
	 	 	 	 	 	 
	BY:	 	
	 
	 	 	 	 	 	 
	   Deputy Attorney General	 	 	 	 
	 
	 	 	 	 	 	 
	DATE: April 2, 2004	 	 	 	 

 

 

with the contractor. Marketing by an employee of the contractor is
considered direct; marketing by an agent is considered indirect.

Commissioner—the Commissioner of the New Jersey Department of Human
Services or a duly authorized representative.

Complaint—a protest by an enrollee as to the conduct by the contractor
or any agent of the contractor, or an act or failure to act by the
contractor or any agent of the contractor, or any other matter in which
an enrollee feels aggrieved by the contractor, that is communicated to
the contractor and that could be resolved by the contractor within
five (5) business days, except for urgent situations, and as
required by the exigencies of the situation.

Complaint Resolution-completed actions taken to fully settle a
complaint to the DMAHS’ satisfaction.

Comprehensive Risk Contract—a risk contract that covers comprehensive
services, that is, inpatient hospital services and any of the following
services, or any three or more of the following services:

1. Outpatient hospital services.

2. Rural health clinic services.

3. FQHC services.

4. Other laboratory and X-ray services.

5. Nursing facility (NF) services.

6. Early and periodic screening, diagnosis and treatment (EPSDT)
services.

7. Family planning services.

8. Physician services.

9. Home health services.

Condition—a disease, illness, injury, disorder, or biological or
psychological condition or status for which treatment is indicated.

Contested Claim—a claim that is denied because the claim is an
ineligible claim, the claim submission is incomplete, the coding or
other required information to be submitted is incorrect, the amount
claimed is in dispute, or the claim requires special treatment.

Continuity of Care—the plan of care for a particular enrollee that
should assure progress without unreasonable interruption.

Contract—the written agreement between the State and the contractor,
and comprises the contract, any addenda, appendices, attachments, or
amendments thereto.

Contracting Officer—the individual empowered to act and respond for
the State throughout the life of any contract entered into with the
State.

Contractor—the Health Maintenance Organization with a valid
Certificate of Authority in New Jersey that contracts hereunder with
the State for the provision of comprehensive

	 	 	 
	Amended as of July 1, 2004

	 	I-5

 

 

	N.	 	Protection of Enrollee-Provider Communications. Health care professionals
may not be prohibited from advising their patients about their health
status or medical care or treatment, regardless of whether this care
is covered as a benefit under the contract.
	 
	O.	 	Medical or Dental Procedures. For procedures that may be
considered either medical or dental such as surgical procedures for
fractured jaw or removal of cysts, the contractor shall establish
written policies and procedures clearly and definitively delineated
for all providers and administrative staff, indicating that either a
physician specialist or oral surgeon may perform the procedure and,
when, where, and how authorization, if needed, shall be promptly
obtained.
	 
	P.	 	Out-of-Network Services. If the contractor is unable to provide
in-network necessary services, covered under the contract to a
particular enrollee, the contractor must adequately and timely cover
those services out-of-network for the enrollee, for as long as the
contractor is unable to provide them in-network.
	 
	Q.	 	Termination of Benefits. For benefits terminated at the
direction of the State, the contractor shall be responsible for
previously authorized services for a period of sixty (60) days after
the effective date of termination.

4.1.2 BENEFIT PACKAGE

	A.	 	The following categories of services shall be provided by the
contractor for all Medicaid and NJ FamilyCare Plans A, B, and C
enrollees, except where indicated. See Section B.4.1 of the
Appendices for complete definitions of the covered services.

  	 	 	 
	1.	 	Primary and Specialty Care by physicians and, within the scope of practice
        and in accordance with State certification/licensure requirements, standards
        and practices, by Certified Nurse Midwives, Certified Nurse Practitioners,
        Clinical Nurse Specialists, and Physician Assistants

  	 	 	 
	2.	 	Preventive Health Care
          and Counseling and Health Promotion

  	 	 	 
	3.	 	Early and Periodic
          Screening, Diagnosis, and Treatment (EPSDT) Program Services 

  

  	 
	 	 	For NJ FamilyCare
          Plans B and C participants, coverage includes early and periodic screening
          and diagnosis medical examinations, dental, vision, hearing, and lead
          screening services. It includes only those treatment services identified
          through the examination that are available under the contractor’s
          benefit package or specified services under the FFS program.

	 
	4.	 	Emergency Medical Care

	 	 	 
	Amended as of July 1, 2004

	 	IV-4

 

 

	21.	 	Medical Supplies
	 
	22.	 	Prosthetics and Orthotics including certified shoe provider.
	 
	23.	 	Dental Services
	 
	24.	 	Organ Transplants - includes donor and recipient costs.
Exception: The contractor will not be responsible for
transplant-related donor and recipient inpatient hospital costs for
an individual placed on a transplant list while in the Medicaid FFS
program prior to initial enrollment into the contractor’s plan.
	 
	25.	 	Transportation Services for any contractor-covered service
or non-contractor covered service including ambulance, mobile
intensive care units (MICUs) and invalid coach (including lift
equipped vehicles)
	 
	26.	 	Post-acute Care
	 
	27.	 	Mental Health/Substance Abuse Services for enrollees who are
clients of the Division of Developmental Disabilities

	B.	 	Conditions Altering Mental Status. Those diagnoses which are categorized
as altering the mental status of an individual but are of organic origin
shall be part of the contractor’s medical, financial and care management
responsibilities for all categories of enrollees. These include the
diagnoses in the following ICD-9-CM Series:

	1.	 	290.0 Senile dementia, simple type
	 
	2.	 	290.1 Presenile dementia
	 
	3.	 	290.10 Presenile dementia, uncomplicated
	 
	4.	 	290.11 Presenile dementia with delerium
	 
	5.	 	290.12 Presenile dementia with delusional features
	 
	6.	 	290.13 Presenile dementia with depressive features
	 
	7.	 	290.2 Senile dementia with delusional or depressive features
	 
	8.	 	290.20 Senile dementia with delusional features
	 
	9.	 	290.21 Senile dementia with depressive features
	 
	10.	 	290.3 Senile dementia with delerium
	 
	11.	 	290.4 Arteriosclerotic dementia
	 
	12.	 	290.40 Arteriosclerotic dementia, uncomplicated
	 
	13.	 	290.41 Arteriosclerotic dementia with delirium
	 
	14.	 	290.42 Arteriosclerotic dementia with delusional features
	 
	15.	 	290.43 Arteriosclerotic dementia with depressive features
	 
	16.	 	290.8 Other specific senile psychotic conditions
	 
	17.	 	290.9 Unspecified senile psychotic condition
	 
	18.	 	291.1 Alcohol amnestic syndrome

	 	 	 
	Amended as of July 1, 2004

	 	IV-6

 

 

	 	 	 	 	 	 	 	 	 
	02721

	 	 	02952	 	 	 	05120	 
	02722

	 	 	O254	 	 	 	05211	 
	02750

	 	 	03310	 	 	 	05211-52	 
	02751

	 	 	03320	 	 	 	05212	 
	02752

	 	 	03330	 	 	 	05212-52	 
	02790

	 	 	03410-22	 	 	 	05213	 
	02791

	 	 	03411	 	 	 	05214	 

	2.	 	Procedure Codes to be paid by Medicaid FFS up to
120 days from date of last preliminary extractions after
patient enrolls in New Jersey Care 2000+ (applies to tooth
codes 5 - 12 and 21 - 28 only):

05130

05130-22
05140

05140-22

	3.	 	Extraction Procedure Codes to be paid by Medicaid
FFS up to 120 days from last date of preliminary extractions
after first time New Jersey Care 2000+ enrollment in
conjunction with the following codes (05130, 05130-22, 05140,
05140-22):

07110

07130

07210

4.1.4 MEDICAID COVERED SERVICES NOT PROVIDED BY CONTRACTOR

	A.	 	Mental Health/Substance Abuse. The following mental
health/substance abuse services (except for the conditions listed in
4.1.2.B) will be managed by the State or its agent for non-DDD
enrollees, including all NJ FamilyCare enrollees. (The contractor
will retain responsibility for furnishing mental health/substance
abuse services, excluding the cost of the drugs listed below, to
Medicaid enrollees who are clients of the Division of Developmental
Disabilities).

	•	 	Substance Abuse Services-diagnosis, treatment, and detoxification
	 
	•	 	Costs for Methadone maintenance and its administration
	 
	•	 	Mental Health Services

	B.	 	Drugs. The following drugs will be paid fee-for-service by the
Medicaid program for all DMAHS enrollees:

	•	 	Atypical antipsychotic drugs within the Specific
Therapeutic Drug Classes H7T and H7X

	 	 	 
	Amended as of July 1, 2004

	 	IV-9-

 

 

	•	 	Methadone maintenance - cost and its administration. Except as
provided in Article 4.4, the contractor will remain
responsible for the medical care of enrollees requiring
substance abuse treatment
	 
	•	 	Generically-equivalent drug products of the drugs
listed in this section.

	C.	 	Up to twelve (12) inpatient hospital days required for social
necessity in accordance with Medicaid regulations.
	 
	D.	 	DDD/CCW waiver services: individual supports (which includes
personal care and training), habilitation, case management, respite,
and Personal Emergency Response Systems (PERS).

4.1.5 INSTITUTIONAL FEE-FOR-SERVICE BENEFITS - NO COORDINATION BY THE
CONTRACTOR

	 	 	The following institutional services shall remain in the fee-for-service
program without requiring coordination by the contractor. In addition,
Medicaid beneficiaries participating in a waiver (except the Division of
Developmental Disabilities Community Care Waiver) or demonstration
program or admitted for long term care treatment in one of the following
shall be disenrolled from the contractor’s plan on the date of admission
to institutionalized care.

	A.	 	Nursing Facility care (Exception: if the admission is only for
inpatient rehabilitation/postacute care services and is 30 days or
less, the enrollee will not
be disenrolled. The contractor remains financially responsible for
rehabilitation/postacute services in this setting for 30 days.
Thereafter, if the enrollee continues to receive
rehabilitation/postacute services in this setting, the enrollee
will be disenrolled. The contractor will no longer be financially
responsible.) Not covered for NJ FamilyCare Plans B and C.
	 
	B.	 	Inpatient psychiatric services (except for RTCs) for
individuals under age 21 and 65 and over - Services that are
provided:

	1.	 	Under the direction of a physician;
	 
	2.	 	In a facility or program accredited by the Joint
Commission on Accreditation of Health Care Organizations; and
	 
	3.	 	Meet the federal and State requirements.

	C.	 	Intermediate Care Facility/Mental Retardation Services -
Items and services furnished in an intermediate care facility for
the mentally retarded. Covered for NJ FamilyCare Plan A only.

	 
	D.	 	Waiver (except Division of Developmental Disabilities
Community Care Waiver) and demonstration program services. Covered
for NJ FamilyCare Plan A only.

	 	 	 
	Amended as of July 1, 2004

	 	1V-10

 

 

	C.	 	Access Standards. The contractor shall ensure that all covered
services, that are required oh an emergency basis are available to all
its enrollees, twenty-four (24) hours per day, seven (7) days per week,
either in the contractor’s own provider network or through arrangements
approved by DMAHS. The contractor shall maintain twenty-four (24) hours
per day, seven (7) days per week on-call telephone coverage, including
Telecommunication Device for the Deaf (TDD)/Tech Telephone (TT) systems,
to advise enrollees of procedures for emergency and urgent care and
explain procedures for obtaining non-emergent/non-urgent care during
regular business hours within the enrollment area as well as outside the
enrollment area.
	 
	D.	 	Non-Participating Providers.

	1.	 	The contractor shall be responsible for developing and
advising its enrollees and where applicable, authorized persons of
procedures for obtaining emergency services, including emergency
dental services, when it is not medically feasible for enrollees to
receive emergency services from or through a participating
provider, or when the time required to reach the participating
provider would mean risk of permanent damage to the enrollee’s
health. The contractor shall bear the cost of providing emergency
service through non-participating providers.
	 
	2.	 	Non-contracted hospitals providing emergency services to
Medicaid or NJ FamilyCare members enrolled in the managed care
program shall accept, as payment in full, the amounts that the
non-contracted hospitals would receive from Medicaid for the
emergency services and/or any related hospitalization as if the
beneficiary were enrolled in fee-for-service Medicaid.

	E.	 	Emergency Care Prior Authorization. Prior authorization shall not
be required for emergency services through stabilization. This applies to
out-of-network as well as to in-network providers.
	 
	F.	 	Medical Screenings/Urgent Care. Prior authorization shall not be
required for medical screenings or for providing services in urgent care
situations at the hospital emergency room. The hospital emergency room
physician may determine the necessity for contacting the PCP or the
contractor for information about an enrollee. who presents with an urgent
condition.
	 
	G.	 	The contractor shall pay for all medical screening services rendered to
its enrollees by hospitals and emergency room physicians regardless of
the admitting symptoms or discharge diagnosis. The amount and method of
reimbursement for medical screenings shall be subject to negotiation
between the contractor and the hospital and directly with non-hospital
salaried emergency room physicians and shall include reimbursement for
urgent care and non-urgent care rates. Non-participating hospitals may be
reimbursed for hospital costs at Medicaid rates or other mutually
agreeable rates for medical screening services. Additional fees for

	 	 	 
	Amended
..as of July 1, 2004

	 	N-21

 

 

	i.	 	The contractor shall provide to DMAHS documentation as to the
efforts made to educate providers with low screening rates.
	 
	ii.	 	The contractor shall implement plans for corrective action
with those identified PCPs that describe
interventions to be taken to identify and correct deficiencies
and impediments to the screening and how the effectiveness of
its interventions will be measured.

	e.	 	On a quarterly basis, the contractor shall submit to DMAHS a report of
all lead-burdened children who are receiving treatment and case
management services.
	 
	f.	 	Lead Case Management Program. The contractor shall establish a Lead Case
Management Program (LCMP) and have written policies and procedures for
the enrollment of children with blood lead levels 3  10 μg/dl and
members of the same household who are between six months and six years of
age, into the contractor’s LCMP.

	i.	 	Lead Case Management shall consist of, at a minimum:

	1)	 	Follow-up of a child in need of lead screening, or who has been identified
         with an elevated blood lead level 3 10 μg/dl.
         At minimum, follow-up shall include:

	A)	 	For a child with an elevated blood lead level 3
        10 μg/dl, the Plan’s LCM shall ascertain if the blood lead level has
        been confirmed by a venous blood determination. In the absence of confirmatory
        test results, the LCM will arrange for a test.
	 
	B)	 	For a child with a confirmed blood (venous) lead level of 3 10 μg/dl
         the contractor’s LCM shall notify and provide to the local health
          department the child’s name, primary health care provider’s
           name, the confirmed blood lead level, and any other pertinent information.

	2)	 	Education of the family about all aspects of lead
hazard and toxicity. Materials shall explain the
sources of lead exposure, the consequences of

	 	 	 
	Amended as of July 1, 2004

	 	IV-35

 

 

	 	 	elevated blood levels, preventive measures.
including housekeeping, hygiene, and
appropriate nutrition. The reasons why it
is necessary to follow a prescribed medical
regimen shall also be explained.
	 
	3)	 	Communication among all interested parties.
	 
	4)	 	Development of
a written case management plan with the PCP
and the child’s family and other interested
parties. The case management plan shall be
reviewed and updated on an ongoing basis.
	 
	5)	 	Coordination
of the various aspects of the affected
child’s care, e.g., WIC, support groups, and
community resources, and
	 
	6)	 	Aggressively
pursuing non-compliance with follow-up tests
and appointments, and document these
activities in the LCMP.

	ii.	 	Active case management may
be discontinued if one of the following criteria
has been met:

	1)	 	The child has
one confirmed blood lead levels < 10
μg/dl drawn and
all other children under the age of six
years living in the household who have been
tested and their blood levels are < 10
μg/dl, and the sources of lead have been
identified and reduced, or
	 
	2)	 	The family has been permanently relocated
to a lead-safe house, or
	 
	3)	 	The parent/guardian has given a written
refusal of service, or
	 
	4)	 	The LCM is unable to locate the child after
a minimum of three documented attempts,
using the assistance of County Board of
Social Services, and the LHD. The child’s
PCP will be notified in writing.

4.2.7 IMMUNIZATIONS

	 	 	 
	Amended as of July 1, 2004

	 	IV-36

 

 

	 	 	with the administration of Methadone, which will .remain FFS),
neurological evaluations, laboratory testing and radiologic
examinations, and any other diagnostic procedures that are
necessary to make the diagnostic determination between a primary
MH/SA disorder and an underlying physical disorder, as well as for
medical work-ups required for medical clearances prior to the
provision of psychiatric medication or electroconvulsive therapy
(ECT), or for transfer to a psychiatric/SA facility. Routine
laboratory procedures ordered by treating MH/SA providers in
conjunction with MH/SA treatment, for routine blood testing
performed in conjunction with the administration of atypical antipsychotics (see Article
4.1.4B for non-DDD enrollees, are not the responsibility of the
contractor.
	 
	2.	 	The contractor shall develop a referral process to be used
by its providers which shall include providing a copy of the
medical consultation and diagnostic results to the MH/SA provider.
The contractor shall develop procedures to allow for notification
of an enrollee’s MHH/SA provider of the findings of his/her
physical examination and laboratory/radiological tests within
twenty-four (24) hours of receipt for urgent cases and within five
business days in non-urgent cases. This notification shall be made
by phone with follow-up in writing when feasible.

	C.	 	Pharmacy Services. Except for the drugs specified in Article 4.1.4
(Clozapine, Risperidone, Olanzapine, etc.), all pharmacy services are
covered by the contractor. This includes drugs prescribed by the
contractor or MH/SA providers. The contractor shall only restrict or
require a prior authorization for prescriptions or pharmacy services
prescribed by MH/SA providers if one of the following exceptions is
demonstrated:

	1.	 	The drug prescribed is not related to the treatment of
substance abuse/dependency/addiction or mental illness or to any
side effects of the psychopharmacological agents. These drugs are to
be prescribed by the contractor’s PCP or specialists in the
contractor’s network.
	 
	2.	 	The prescribed drug does not conform to standard rules of the
contractor’s pharmacy plan.
	 
	3)	 	The contractor, at its option, may require a prior authorization (PA) process
        if the number of prescriptions written by the MH-1/SA provider for MH/SA-related
        conditions exceed four (4) per month per enrollee. For drugs that require
        weekly prescriptions, these prescriptions shall be counted as one per
        month and not as four separate prescriptions. The contractor’s PA
        process for the purposes of this section shall require review and prior
        approval by DMAHS.

	 	 	 
	Amended as of July 1, 2004

	 	IV-45

 

 

	g.	 	Serving as Chairperson of Quality Management
Committee; [Note: the medical director may designate
another physician to serve as chairperson with prior
approval from DMAHS.]
	 
	h.	 	Oversight of provider education,
in-service training and orientation;
	 
	i.	 	Assuring that adequate staff and
resources are available for the provision of proper
medical care to enrollees; and
	 
	j.	 	The review and approval of studies
and responses to DMAHS
concerning QM matters.

	3.	 	Enrollee Rights and Responsibilities. Shall
include the right to the Medicaid Fair Hearing Process for
Medicaid enrollees.
	 
	4.	 	Medical Record standards shall address both
Medical and Dental records. Records shall also contain
notation of any cultural/linguistic needs of the enrollee.
	 
	5.	 	Provider Credentialing. Before any provider may
become part of the contractor’s network, that provider shall
be credentialed by the contractor. The contractor must
comply with N.J.A.C. 8:38C-1 et seq. and Standard IX of NJ
modified QARI/QISMC (Section B.4.14 of the Appendices).
Additionally, the contractor’s credentialing procedures
shall include verification that providers and subcontractors
have not been suspended, debarred, disqualified, terminated
or otherwise excluded from Medicaid, Medicare, or any other
federal or state health care program. The contractor shall
obtain federal and State lists of suspended/debarred
providers from the appropriate agencies.
	 
	6.	 	Institutional and Agency Provider
Credentialing. The contractor shall have written policies
and procedures for the initial quality assessment of
institutional and agency providers with which it intends to
contract. At a minimum, such procedures shall include
confirmation that a provider has been reviewed and approved
by a recognized accrediting body and is in good standing
with State and federal regulatory bodies. If a provider has
not been approved by a recognized accrediting body, the
contractor shall develop and implement standards of
participation. For home health agency and hospice agency
providers, the contractor shall verify that the providers
are licensed and meet Medicare certification participation
requirements.
	 
	7.	 	Delegation/subcontracting of QAPI activities
shall not relieve the contractor of its obligation to
perform all QAPI functions. The contractor shall submit a
written request and a plan for active oversight of the QAPI

	 	 	 
	Amended as of July 1, 2004

	 	IV-61

 

 

its aggregate, enrolled commercial and Medicare population in the State or
region (if these data are collected and 1..ported to DHSS, a copy of the report
should be submitted also to DMAHS) the following clinical indicator measures:

	 	 	 	 	 
	HEDIS	 	Report Period
	Reporting Set Measures	 	by Contract Year
	Childhood Immunization Status
	 	annually
	Adolescent Immunization Status
	 	annually
	Well-Child Visits in first 15 months of life
	 	annually
	Well-Child Visits in the 3rd, 4th, 5th and 6th year of life
	 	annually
	Adolescent Well-Care Visits
	 	annually
	Prenatal and Postpartum Care
	 	annually
	Breast Cancer Screening
	 	annually
	Cervical Cancer Screening
	 	annually
	Medical Assistance with Smoking Cessation
	 	annually

Childhood & Adolescent Immunization HEDIS data for NJ FamilyCare
enrollees up to the age of 19 years must be reported separately.

	 	 	 
	Q.
	 	 Quality Improvement Projects
        (QIPs). The contractor shall participate in QIPs defined annually by
        the State with
        input from the contractor.
      The State will, with input from the contractor and possibly other MCEs,
      define measurable improvement goals and QIP-specific measures which shall
      serve as the focus for each QIP. The contractor shall be responsible for
      designing and implementing
strategies for achieving each QIP’s objectives. At the beginning of each
contract year the contractor shall present a plan for designing and implementing
such strategies, which shall receive approval from the State prior to implementation.
The contractor shall then submit semiannual progress reports summarizing performance
relative to each of the objectives of each contract
year. 
	 	 	 
	 	 	The QIPs shall be completed annually and shall include
        the areas identified below. The external review organization (ERO) under
        contract with DHS shall prepare a final report for year one that will
        contain data, using
      State-approved sampling and measurement methodologies, for each of the
      measures below. Changes in required QIPs shall be defined by the DHS and
      incorporated
into the contract by amendment. 
	 	 	 
	 	 	For each measure the DHS will identify a baseline and a compliance standard.
      Baseline data, target standards, and compliance standards shall be established
      or updated by the State. 
	 	 	 
	 	 	If DHS determines that the contractor is not in compliance
        with the requirements of the annual QIP objectives, either based on the
        contractor’s progress
      report or 

    	 	 
	Amended as July 1, 2004	IV-64

 

 

the ERO’s report, the contractor shall prepare and submit a
corrective action plan for DHS approval.

	1.	 	Well-Child Care (EPSDT)

The QIP for Well-Child Care shall focus upon achieving
compliance with the EPSDT periodicity schedule (See Article
4.2.6) in the following priority areas:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Minimum	 	 
	 	 	Performance	 	Compliance	 	Discretionary
	Clinical Area	 	Standard	 	Standard	 	Sanction
	Age-appropriate
Comprehensive exams

(CMS-specified age groups)
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	80	%	 	 	60	%	 	 	60 - 70	%
	< 1 year old
	 	 	80	%	 	 	60	%	 	 	60 - 70	%
	1 - 2 years old
	 	 	80	%	 	 	65	%	 	 	60 - 70	%
	3 - 5 years old (at least 1 visit)
	 	 	80	%	 	 	60	%	 	 	 60 - 70	%
	6 - 9 years old (at least 1 visit)
	 	 	80	%	 	 	60	%	 	 	60 - 70	%
	10 - 14 years old (at least 1 visit)
	 	 	80	%	 	 	60	%	 	 	60 - 70	%
	15 - 18 years old (at least 1 visit)
	 	 	80	%	 	 	60	%	 	 	60 - 70	%
	19 - 20 years old (at least 1 visit)

Immunizations
2 year olds
 (HEDIS combined rate)
	 	 	80	%	 	 	60	%	 	 	60 - 70	%
	Annual Dental Visit -
3 - 12 yr olds
	 	 	80	%	 	 	60	%	 	 	60 - 70	%
	13 - 21 yr olds
	 	 	80	%	 	 	60	%	 	 	60 - 70	%
	Lead screen (under age 3)
	 	 	80	%	 	 	60	%	 	 	60 - 70	%

	2.	 	Prenatal Care and Pregnancy Outcome

The QIP for Prenatal Care and Pregnancy Outcome shall focus
upon achieving improvements in compliance with prenatal care
protocols and in obtaining positive pregnancy outcomes

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Compliance
	Clinical Area	 	Target Standard	 	Standard
	Initial visit in first trimester or
within 6 wks of enrollment
	 	 	85	%	 	 	75	%
	Adequate frequency of prenatal
care
	 	 	85	%	 	 	75	%
	Low birth weight babies
	 	 	 	 	 	 	 	 

  Amended as of July 1, 2004
    IV-65
  
 

 

	A.	 	The contractor shall provide the DMAHS a full network,
monthly, on computer diskette in accordance with the specifications
provided in Section A.4:1 of the Appendices. The network file shall
include an indicator for new additions and deletions and shall
include:

	1.	 	Any and all changes in participating primary care
providers, including, for example, additions, deletions, or
closed panels, must be reported monthly to DMAHS.
	 
	2.	 	Any and all changes in participating physician
specialists, health care providers, CNPs/CNSs, ancillary
providers, and other subcontractors must be reported to DMAHS
on a monthly basis.

	B.	 	DMAHS review of provider network deficiencies will be conducted on a
quarterly basis or more frequently as may be required.
	 
	C.	 	The contractor shall provide the HBC with a full network on a
monthly basis in accordance with the specifications found in Section
A.4.1 of the Appendices. The electronic files shall be sent to
DMAHS, and a copy to the DMAHS’ designee for distribution.

4.8.4 PROVIDER DIRECTORY REQUIREMENTS

The contractor shall prepare a provider directory which shall be
presented in the following manner. Fifty (50) copies of the provider
directory, and any updates, shall be provided to the HBC, and ten (10)
copies shall be provided to DMAHS at least every six months or within 30
days of an update.

	A.	 	Primary care providers who will serve enrollees listed by

	•	 	County, by city, by specialty
	 
	•	 	Provider name and degree; specialty board
eligibility/certification status; office address(es) (actual
street address); telephone number; fax number if available;
office hours at each location; indicate if a provider serves
enrollees with disabilities and how to receive additional
information such as type of disability; hospital affiliations;
transportation availability; special appointment instructions
if any; languages spoken; disability access; and any other
pertinent information that would assist the enrollee in
choosing a PCP.

	B.	 	Contracted specialists and ancillary services providers who will serve
enrollees

	•	 	Listed by county, by city, by physician specialty,
by non-physician specialty, and by adult specialist and by
pediatric specialist for those specialties indicated in
Section 4.8.8.C.

	 	 	 
	Amended
          as of
        July 1, 2004
	 	IV-98

 

 

	C.	 	Subcontractors

Provide, at a minimum, a list of all other health care
providers by county, by service specialty, and by name. The
contractor shall demonstrate its ability to provide all of
the services included under this contract.

4.8.5 CREDENTIALING/RECREDENTIALING REQUIREMENTS/ISSUES

The contractor shall develop and enforce credentialing and
recredentialing criteria for all provider types which should follow the
CMS’ credentialing criteria, as delineated in the NJ modified QARI/QISMC
standards found in Article 4.6.1 and Section B.4.14 of the Appendices,
and comply with N.J.A.C. 8:38C-1 et seq.

4.8.6 LABORATORY SERVICE PROVIDERS

	A.	 	The contractor shall ensure that all laboratory testing
sites providing services under this contract, including those
provided by primary care physicians, specialists, other health care
practitioners, hospital labs, and independent laboratories have
either a Clinical Laboratory Improvement Amendment (CLIA)
certificate of waiver or a certificate of registration along with a
CLIA identification number, and comply with New Jersey DHSS disease
reporting requirements. Those laboratory service providers with a
certificate of waiver shall provide only those tests permitted
under the terms of their waiver. Laboratories with certificates of
registration may perform a full range of laboratory tests.

The contractor shall provide to DMAHS, on request, copies of
certificates that its own laboratory or any other laboratory
it conducts business with, has a CLIA certificate for the
services it is performing as fulfillment of requirements in
42 C.F.R. § 493.1809.

If the contractor has its own laboratory, the contractor
shall submit at the time of initial contracting a written
list of all diagnostic tests performed in its own laboratory
if applicable and those tests which are referred to other
laboratories annually and within fifteen (15) working days
of any changes.

	3.	 	The contractor shall inform DMAHS and provide a
geographic access analysis in accordance with the
specifications found in the Appendix, Section A.4.3 if it
contracts with a new laboratory subcontractor 45 days prior
to the effective date of the subcontractor’s contract and
shall notify DMAHS of a termination of a laboratory
subcontractor 90 days prior to the effective date of the
subcontractor’s termination. The contractor shall provide a
copy of a new subcontractor’s certificate of waiver or
certificate of registration within ten (10) days of
operation.

	 	 	 	 	 
	Amended
          as of
        July 1, 2004 
	 	 	 	IV-99

 

 

	3.	 	- Other:

	a.	 	Genetic Testing and Counseling Centers
b. Hemophilia Treatment Centers

	H.	 	Other Specialty Centers/Providers [Institutional File]

Contractor should establish relationships with the following
providers/centers on a consultant or referral basis.

	.	 	1.Spina Bifida Centers/providers

2. Adult Scoliosis

3. Autism and Attention Deficits

4. Spinal Cord Injury

5. Lead Poisoning Treatment Centers

6. Child Abuse Regional Diagnostic Centers

7. County Case Management Units

8. Psychologists (for clients of DDD)

9. Physical Medicine (for inpatient rehabilitation services)

10. Maternal & Fetal Medicine

11. Medical Toxicology

	 	 	 
	Amended
            as of July 1, 2004
	 	IV-107

 

 

	i.	 	Provider Network Access Standards and Ratios

	 	 	 	 	 	 	 
	Specialty

	 	A — Miles per
            2

          
	 	B — Miles per 1

        	 	Min. No. Per County            Capacity Limit
	

	 	Urban Non-Urban
          
	 	Urban Non-urban 	 	Except Where Noted            Per Provider

	 	 	 	 	 
	Amended
          as of
        July 1, 2004 
	 	 	 	IV-108

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PCP Children GP
	 	 	 	 	 	 	6	 	 	 	15	 	 	 	2	 	 	 	10	 	 	 	2	 	 	 	1:	 	 	 	1.500	 
	 
	 	FP
	 	 	6	 	 	 	15	 	 	 	2	 	 	 	10	 	 	 	2	 	 	 	1:	 	 	 	1.500	 
	 
	 	Peds
	 	 	6	 	 	 	15	 	 	 	2	 	 	 	10	 	 	 	2	 	 	 	1:	 	 	 	1.500	 
	Adults
	 	GP
	 	 	6	 	 	 	15	 	 	 	2	 	 	 	10	 	 	 	2	 	 	 	l:	 	 	 	1.500	 
	 
	 	FP
	 	 	6	 	 	 	15	 	 	 	2	 	 	 	10	 	 	 	2	 	 	 	1:	 	 	 	1.500	 
	 
	 	1M	 	 	 	 	6	 	 	 	15	 	 	 	2	 	 	 	10	 	 	 	2	 	 	 	1:	 	 	 	1.500	 
	CNPICNS
	 	 	 	 	 	 	6	 	 	 	15	 	 	 	2	 	 	 	10	 	 	 	2	 	 	 	1:	 	 	 	1.000	 
	CNM
	 	 	 	 	 	 	12	 	 	 	25	 	 	 	6	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	1.500	 
	Dentist, Primary Care
	 	 	 	 	 	 	6	 	 	 	15	 	 	 	2	 	 	 	10	 	 	 	2	 	 	 	1:	 	 	 	1.500	 
	Allergy
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	75.000	 
	Anesthesiology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	17.250	 
	Cardiology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	100,000	 
	CardiovascularsurgeryDisease
	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	166.000	 
	Chiropractor
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	1	 	 	 	1:	 	 	 	20.000	 
	Colorectal surgery
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	30.000	 
	Dermatology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	75.000	 
	Emergency Medicine
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	19.000	 
	Endocrinology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	143,000	 
	Endodontia
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	1 (where available)	 	 	1:	 	 	 	30.000	 
	Gastroenterology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	100.000	 
	General Surgery
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	30.000	 
	Geriatric Medicine
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	1	 	 	 	1:	 	 	 	10.000	 
	Hematology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	100.000	 
	Infectious Disease
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	125.000	 
	Neonatology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	100,000	 
	Nephrology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	I:	 	 	 	125,000	 
	Neurology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	100.000	 
	Neurological Surgery
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	166,000	 
	Obstetrics/Gynecology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	7.100	 
	Oncology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	100,000.	 
	Ophthalmology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	60.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Optometrist
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	8.000	 
	Oral Surgery
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2.	 	 	 	1:	 	 	 	20,000	 
	Orthodontia
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	1	 	 	 	1:	 	 	 	20.000	 
	Orthopedic Surgery
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	l:	 	 	 	28.000	 
	Otolaryngology (ENT)
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	53.000	 
	Periodontia
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	1 (where available)	 	 	1:	 	 	 	30,000	 
	Physical Medicine
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	(where applicable)	 	 	1:	 	 	 	75,000	 
	Plastic Surgery
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	250.000	 
	Podiatrist
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	20,000	 
	Prosthodontia
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	1 (where available)	 	 	I:	 	 	 	30.000	 
	Psychiatrist
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	30,000	 
	Psychologist
	 	 	 	 	 	 	15.	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	—	 	 	 	I:	 	 	 	30.000	 
	Pulmonary Disease
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	100,000	 
	Radiation Oncology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	100,000	 
	Radiology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	25,000	 
	Rheumatology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	150,000	 
	Audiology
	 	 	 	 	 	 	12	 	 	 	25	 	 	 	6	 	 	 	15	 	 	 	2	 	 	 	I:	 	 	 	100,000	 
	Thoracic Surgery
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	150,000	 
	Urology
	 	 	 	 	 	 	15	 	 	 	25	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	60.000	 
	Fed Qua! Health Ctr
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	 	 	 	I/county if
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	available
	Hospital
	 	 	 	 	 	 	20	 	 	 	35	 	 	 	10	 	 	 	15	 	 	 	2	 	 	 	 	 	 	2 per county
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(where applicable)
	Pharmacies
	 	 	 	 	 	 	10	 	 	 	15	 	 	 	5	 	 	 	12	 	 	 	 	 	 	 	1:	 	 	 	1,000	 
	Laboratory
	 	 	 	 	 	 	N/A	 	 	 	N/A	 	 	 	7	 	 	 	12	 	 	 	 	 	 	 	 	 	 	 	 	 
	DME/Med Supplies
	 	 	 	 	 	 	12	 	 	 	25	 	 	 	6	 	 	 	15	 	 	 	1	 	 	 	1:	 	 	 	50.000	 
	Hearing Aid
	 	 	 	 	 	 	12	 	 	 	25	 	 	 	6	 	 	 	15	 	 	 	1	 	 	 	1:	 	 	 	50,000	 
	Optical Appliance
	 	 	 	 	 	 	12	 	 	 	25	 	 	 	6	 	 	 	15	 	 	 	2	 	 	 	1:	 	 	 	50,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

of medicine in the following counties: Cape May,
Cumberland, Gloucester, Hunterdon, Salem, Sussex.

	b.	 	Cardiology, pediatric — In-county
alternative: adult cardiovascular disease; out of county
pediatric referral applies to: Cumberland. Hunterdon,
Somerset, Sussex, Warren.
	 
	c.	 	Endocrinology, adult — In-county
alternative: none, refer out of county for Cape May,
Gloucester, Sussex, Warren.
	 
	d.	 	Endocrinology, pediatric — In-county
alternative: adult endocrinologist; out of county
referral for pediatric endocrinology applies to:
Atlantic, Cape May, Cumberland, Gloucester, Hunterdon,
Mercer, Ocean, Salem, Somerset, Sussex, Warren.
	 
	e.	 	Gastroenterology, pediatric — In-county
alternative: adult gastroenterologists; out of county
referral for pediatric gastroenterology applies to:
Atlantic, Burlington, Cape May, Cumberland, Gloucester,
Hunterdon, Mercer, Ocean, Salem, Sussex, Warren.
	 
	f.	 	General Surgery, pediatric — In-county
alternative: adult general surgery; out of county
referral for pediatrics applies to: Burlington, Cape May,
Cumberland, Gloucester, Hunterdon, Mercer, Morris, Salem,
Somerset, Sussex, Warren.
	 
	g.	 	Geriatrics — In-county alternative:
Family Practitioner or Internist; applies to: Cape May,
Cumberland, Gloucester, Mercer, Morris, Salem, Somerset,
Sussex, Warren.
	 
	h.	 	Hematology/Oncology, pediatric -
In-county alternative: none; out of county pediatrics
referral applies to: Burlington, Cape May, Cumberland,
Gloucester, Salem, Somerset, Warren.
	 
	i.	 	Infectious Disease, pediatric — In-county
alternative: Adult infectious disease; out of county
pediatric referral applies to: Atlantic, Burlington, Cape
May, Cumberland, Gloucester, Hunterdon, Ocean, Salem,
Somerset, Sussex, Warren.
	 
	j.	 	Nephrology, adult — In-county
alternative: none; refer out of county for Cape May,
Sussex, Warren.
	 
	k.	 	Nephrology, pediatric — In-county
alternative: adult nephrologist; out of county pediatric
referral applies to: Atlantic, Burlington, Cape May,
Cumberland, Gloucester, Hunterdon, Mercer, Monmouth,
Ocean, Salem, Somerset, Sussex, Warren.

	 	 	 	 	 
	Amended as of

	 	July 1, 2004
	 	IV-1’14

 

 

	1.	 	Neonatal/Perinatal medicine — Alternative: none, refer out of
county.
	 
	m.	 	Neurology, pediatric — In-county
alternative: adult neurology; out of county pediatric
referral applies to: Burlington, Cape May, Cumberland,
Gloucester, Hunterdon, Sussex, Warren.
	 
	n.	 	Neurological Surgery — In-county alternative:
none; out of county referral applies to: Cape May,
Cumberland, Gloucester, Hudson, Salem, Warren.
	 
	o.	 	Plastic Surgery — In-county alternative: none; out of county referral
        applies to: Cape May, Salem, Sussex, Warren.
	 
	 	 	Pulmonary Disease, pediatric — In-county alternative:
Adult pulmonary disease; out of county pediatric referral
applies to: Burlington, Cape May, Cumberland, Gloucester,
Ocean, Warren.
	 
	q.	 	Radiation Oncology — In-county alternative:
none; out of county referral applies to: Cape May, Salem,
Sussex, Warren.
	 
	r.	 	Rheumatology, pediatric — In-county
alternative: adult rheumatology; out of county pediatric
referral applies to: all counties except Bergen and
Essex.
	 
	s.	 	Thoracic surgery — In-county alternative:
none, refer out of county for Cape May, Hunterdon, Morris,
Sussex, Warren.

	4.	 	Hospitals. For the following counties, the
contractor may limit its hospital provider network to one (1)
hospital, which must be a full service, acute care hospital
including at least licensed medical-surgical, pediatric,
obstetrical, and critical care services: Cape May,
Cumberland, Gloucester, Hunterdon, Salem, Somerset, Sussex,
and Warren.

4.8.9 DENTAL PROVIDER NETWORK REQUIREMENTS

     

     A. The contractor shall establish and maintain a dental provider
network, including primary and specialty care dentists, which is
adequate to provide the full scope of benefits. The contractor
shall include general dentists and pediatric dentists as primary
care dentists (PCDs). A system whereby the PCD initiates and
coordinates any consultations or referrals for specialty care
deemed necessary for the treatment and care of the enrollee is
preferred.

     B. The dental provider network shall include sufficient
providers able to meet the dental treatment requirements of
patients with developmental disabilities. (See Article 4.5.2E for
details.)

	 	 	 	 	 
	Amended as of

	 	July 1, 2004
	 	IV-115

 

 

	5.	 	The contractor shall submit to DMAHS for review
and approval prior to implementation any changes required to
comply with HIPAA.

	G.	 	The contractor shall submit at least annually or 30 days
prior to any changes, lists of names, addresses, ownership/control
information of participating providers and subcontractors, and
individuals or entities, which shall be incorporated in this
contract.

	1.	 	The contractor shall obtain prior DMAHS review
and written approval of any proposed plan for merger,
reorganization or change in ownership of the contractor and
approval by the appropriate State regulatory agencies.
	 
	2.	 	The contractor shall comply with Article 4.9.1 G.
l to ensure uninterrupted and undiminished services to
enrollees, to evaluate the ability of the modified entity to
support the provider network, and to ensure that any such
change has no adverse effects on DMAHS’ managed care program
and shall comply with the Departments of Banking and
Insurance, and Health and Senior Services statutes and
regulations.

	H.	 	The contractor shall demonstrate its ability to provide all
of the services included under this contract through the approved
network composition and accessibility.
	 
	I.	 	The contractor shall not oblige providers to violate their
state licensure regulations.
	 
	J.	 	The contractor shall provide its providers and subcontractors
with a schedule of fees and relevant policies and procedures at
least 30 days prior to implementation.
	 
	K.	 	The contractor shall arrange for the distribution of
informational materials to all its providers and subcontractors
providing services to enrollees, outlining the nature, scope, and
requirements of this contract.
	 
	L.	 	Subcontractor Delegation. The contractor shall monitor any
functions and responsibilities it delegates to any subcontractor.
The contractor shall be accountable for any and all functions and
responsibilities it delegates to a subcontractor. The contractor
shall obtain the prior approval of DMAHS for any such delegation and
shall meet the requirements of 42 C.F.R. § 438.

4.9.2 CONTRACT SUBMISSION

The contractor shall submit to DMAHS one complete, fully executed
contract for each type of provider, i.e., primary care physician,
physician specialist, non-physician practitioner, hospital and other
health care providers/services covered under the benefits package,
subcontract and the form contract of any subcontractor’s provider
contracts. The use of a signature stamp is not permitted and shall not be
considered a fully executed contract. Contracts shall be submitted with
all attachments, appendices, referenced

	 	 	 
	Amended as of July 1, 2004

	 	IV-118

 

 

documents, and with rate schedules, etc., upon request. A copy of the
appropriate completed contract checklist fog DHS, DHSS, and DOBI shall be
attached to each contract form. Regulatory approval and approval by the
Department is required for each provider contract form and subcontract prior
to use. Submission of all other contracts shall follow the format and
procedures described below:

	A.	 	Copies of the complete fully executed contract with every FQHC.
Certification of the continued in force contracts previously submitted
will be permitted.
	 
	B.	 	Hospital contracts shall list each specific service to be covered
including but not limited to:

	 	 	1. Inpatient services;

        2. Anesthesia and whether professional services of anesthesiologists and
        nurse anesthetists are included;

3. Emergency room services

  		 	a. Triage fee — whether facility and professional fees are included;

          b. Medical screening fee — whether facility and professional fees
          are included;

          c. Specific treatment rates for:

        

  		 	 
		 	 (1) Emergent
          services 

          (2) Urgent services

          (3) Non-urgent services

          (4) Other 

  

	d.	 	Other — must specify

	 	 	4. Neonatology — facility and professional fees

        5. Radiology

	.	 	a. Diagnostic

        b. Therapeutic

        c. Facility fee

        d. Professional services

	 	 	6. Laboratory — facility and professional services

        7. Outpatient/clinic services must be specific and address

	 	 	a. School-based health service programs

b. Audiology therapy and therapists

	 	 	8. AIDS Centers

        9. Any other specialized service or center of excellence

        10. Hospice services if the hospital has an approved hospice agency that
        is Medicare certified.

11. Home Health agency services if hospital has an approved
home health agency license from the Department of Health and
Senior Services that meets licensing and Medicare certification
participation requirements.

12. Any other service.

	C.	 	FQHC contracts:

	 	 	 
	Amended as of July 1, 2004

	 	IV-119

 

 

The contractor shall accept enrollment of Medicaid/NJ FamilyCare eligible
persons within the defined enrollment areas in the order in which they
apply or are auto-assigned to the contractor (on a random basis with
equal distribution among all participating contractors) without
restrictions, within contract limits. Enrollment shall be open at all
times except when the contract limits have been met. A contractor shall
not deny enrollment of a person with an SSI disability or New Jersey Care
Disabled category who resides outside of the enrollment area. However,
such enrollee with a disability shall be required to utilize the
contractor’s established provider network. The contractor shall accept
enrollees for enrollment throughout the duration of this contract.

	D.	 	Enrollment timeframe. As of the effective date of enrollment, and until
the enrollee is disenrolled from the contractor’s plan, the contractor
shall be responsible for the provision and cost of all care and services
covered by the benefits package listed in Article 4.1. Enrollees who
become eligible to receive services between the 1st through the end of the
month shall be eligible for Managed Care services in that month. When an
enrollee is shown on the enrollment roster as covered by a contractor’s
plan, the contractor shall be responsible for providing services to that
person from the first day of coverage shown to the last day of the
calendar month of the effective date-of disenrollment. DMAHS will pay the
contractor a capitation rate during this period of time.
	 
	E.	 	Hospitalizations. For-any eligible person who applies for participation
in the contractor’s plan, but who is hospitalized prior to the time
coverage under the plan becomes effective, such coverage shall not
commence until the date after such person is discharged from the hospital
and DMAHS shall be liable for payment for the hospitalization, including
any charges for readmission within forty-eight (48) hours of discharge for
the same diagnosis. If an enrollee’s disenrollment or termination becomes
effective during a hospitalization, the contractor shall be liable for
hospitalization until the date such person is discharged from the
hospital, including any charges for readmission within forty-eight (48)
hours of discharge for the same diagnosis. The contractor shall notify
DMAHS within 180 days of initial hospital admission.
	 
	F.	 	Unless otherwise required by statute or regulation, the contractor shall
not condition any Medicaid/NJ FamilyCare eligible person’s enrollment upon
the performance of any act or suggest in any way that failure to enroll
may result in a loss of Medicaid/NJ FamilyCare benefits.
	 
	G.	 	There shall be no retroactive enrollment in Managed Care. Services for
those beneficiaries during any retroactive period will remain
fee-for-service, except for individuals eligible under NJ FamilyCare Plans
B, C, and H who are not eligible until enrolled in an MCE. Coverage shall
continue indefinitely unless this contract expires or is terminated, or
the enrollee is no longer eligible or is deleted from the contractor’s
list of eligible enrollees.

	 	 	 
	Amended as of July 1, 2004

	V - 7	 

 

 

	R.	 	Complaints and Grievances/Appeals

	1.	 	Procedures for resolving complaints, as approved by the DMAHS;
	 
	2.	 	A description of the grievance/appeal
procedures to be used to resolve disputes between a
contractor and an enrollee, including: the name, title, or
department, address, and telephone number of the person(s)
responsible for assisting enrollees in grievance/appeal
resolutions; the time frames and circumstances for expedited
and standard grievances; the right to appeal a grievance
determination and the procedures for filing such an appeal;
the time frames and circumstances for expedited and standard
appeals; the right to designate a representative; a notice
that, all disputes involving clinical decisions will be made
by qualified clinical personnel; and that all notices of
determination will include information about the basis of
the decision and further appeal rights, if any;
	 
	3.	 	The contractor shall notify all enrollees in
their primary language of their rights to file grievances
and appeal grievance decisions by the contractor;

	S.	 	An explanation that Medicaid/NJ FamilyCare Plan A
enrollees, and Plans D and H enrollees with a program status code
of 380, have the right to a Medicaid Fair Hearing with DMAHS and
the appeal process through the DHSS for Medicaid and NJ
FamilyCare enrollees, including instructions on the procedures
involved in making such a request;
	 
	T.	 	Title, addresses, phone numbers and a brief description
of the contractor’s plan for contractor management/service
personnel;
	 
	U.	 	The interpretive, linguistic, and cultural services
available through the contractor’s plan;
	 
	V.	 	An explanation of the terms of enrollment in the
contractor’s plan, continued enrollment, automatic re-enrollment,
disenrollment procedures, time frames for each procedure, default
procedures, enrollee’s rights and responsibilities and causes for
which an enrollee shall lose entitlement to receive services
under this contract, and what should be done if this occurs;
	 
	W.	 	A statement strongly encouraging the enrollee to obtain a
baseline physical and dental examination, and to attend scheduled
orientation sessions and other educational and outreach
activities;
	 
	X.	 	A description of the EPSDT program, and language
encouraging enrollees to make regular use of preventive medical
and dental services;
	 
	Y.	 	Provision of information to enrollees or, where
applicable, an authorized person, to assist them in the selection
of a PCP;

	 

        Amended as of July 1, 2004
	 	
V-15 

 

 

 

	 	 	The contractor’s system and procedure shall be available to both
Medicaid beneficiaries and NJ FamilyCare beneficiaries. All
enrollees have available the complaint and grievance/appeal process
under the contractor’s plan, the Department of Health and Senior
Services and, for Medicaid and certain NJ FamilyCare beneficiaries
(i.e., Plan A enrollees and beneficiaries with a PSC of 380 under
Plan D), the Medicaid Fair Hearing process. Individuals eligible
solely through NJ FamilyCare Plans B, C, D, and H (except for Plan
D and H individuals with a program status code of 380),do not have
the right to a Medicaid Fair Hearing.
	 
	B.	 	Complaints. The contractor shall have procedures for
receiving, responding to, and documenting resolution of enrollee
complaints that are received orally and are of a less serious or
formal nature. Complaints that are resolved to the enrollee’s
satisfaction within three (3) business days of receipt do not
require a formal written response or notification. The contractor
shall call back an enrollee within twenty-four hours of the initial
contact if the contractor is unavailable for any reason or the
matter cannot be readily resolved during the initial contact. Any
complaint that is not resolved within three business days shall be
treated as a grievance/appeal, in accordance with requirements
defined in Article 5.15.3.
	 
	C.	 	HBC Coordination. The contractor shall coordinate its efforts
with the health benefits coordinator including referring the
enrollee to the HBC for assistance as needed in the management of
the complaint/grievance/appeal procedures.
	 
	D.	 	DMAHS Intervention. DMAHS shall have the right to intercede on an
enrollee’s behalf at any time during the contractor’s
complaint/grievance/appeal process whenever there is an indication from
the enrollee, or, where applicable, authorized person, or the HBC that a
serious quality of care issue is not being addressed timely or
appropriately. Additionally, the enrollee may be accompanied by a
representative of the enrollee’s choice to any proceedings and
grievances/appeals.
	 
	E.	 	Legal Rights. Nothing in this Article shall be construed as
removing any legal rights of enrollees under State or federal law,
including the right to file judicial actions to enforce rights.

5.15.2 NOTIFICATION TO ENROLLEES OF GRIEVANCE/APPEAL PROCEDURE

	A.	 	The contractor shall provide all enrollees or, where
applicable, an authorized person, upon enrollment in the
contractor’s plan, and annually thereafter, pursuant to this
contract, with. a concise statement of the contractor’s
grievance/appeal procedure and the enrollees’ rights to a hearing by
the Independent Utilization Review Organization (IURO) per NJAC
8:38-8.7 as well as their right to pursue the Medicaid Fair Hearing
process described in-N.J.A.C. 10:49-10.1 et seq. The information
shall be provided through an annual mailing, a member handbook, or
any other method approved by DMAHS. The contractor shall prepare the

	 

        Amended as of July 1, 2004
	 	
V-36 

 

 

 

	 	 	provider performance. Practice guidelines may be included in a
separate document.
	 
	9.	 	The contractor’s policies and procedures
	 
	10.	 	PCP responsibilities
	 
	11.	 	Other provider/subcontractors’ responsibilities
	 
	12.	 	Prior authorization and referral procedures
	 
	13.	 	Description of the mechanism by which a provider can appeal
a contractor’s service decision through the DHSS’ Independent
Utilization Review Organization process
	 
	14.	 	Protocol for encounter data element reporting/records
	 
	15.	 	Procedures for screening and referrals for the MH/SA services
	 
	16.	 	Medical records standards
	 
	17.	 	Payment policies
	 
	18.	 	Enrollee rights and responsibilities

	B.	 	Bulletins. The contractor shall develop and disseminate bulletins as
needed to incorporate any and all changes to the Provider Manual. All
bulletins shall be mailed to the State at least three (3) calendar days
prior to publication or mailing to the providers or as soon as feasible.
The Department shall have the right to issue and/or modify the bulletins
at any time. If the DHS determines that there are factual errors or
misleading information, the contractor shall be required to issue
corrected information in the manner determined by the DHS.
	 
	 	 	Timeframes. Within twenty (20) calendar days after the contractor places
a newly enrolled provider in an active status, the contractor shall
furnish the provider with a current Provider Manual, all related
bulletins and the contractor’s methodology for supplying encounter data.
	 
	 	 	The contractor shall provide a current Provider Manual to the Department
annually. All updates of the manual shall also be provided to the Department
within 30 days of the revision.
	 
	E.	 	The Provider Manual and all policies and procedures shall be reviewed at
least annually to ensure that the contractor’s current practices and
contract requirements are reflected in the written policies and
procedures.

	Amended as of July 1, 2004	 	VI-2 

 

 

 

	 	 	measured by procedure codes specified in Appendix Section B.7.5
using encounter data. If the contractor has not achieved the
eighty (80) percent participation rate by the end of the
twelve-month period, it shall submit a corrective action plan to
DMAHS within thirty (30) days of notification by DMAHS of its
actual participation rate. DMAHS shall have the right to conduct a
follow-up onsite review and/or impose financial damages for
non-compliance.

	a.	 	Mandatory Sanction. Failure of the contractor to achieve the
minimum screening rate shall require the following refund of
capitation paid:

	i.	 	Achievement of a 50 percent to less than 60 percent
EPSDT screening, dental visit and immunization rate (the lowest
measured rate of each of the components of EPSDT screening,
i.e., periodic exam, immunization rate, and dental screening
rate, shall be considered to be the rate for EPSDT participation
and the basis for the sanction): refund of $1 per enrollee for
all enrollees under age 21 not screened.
	 
	ii.	 	Achievement of a 40 percent to less than 50 percent
EPSDT screening, dental visit, and immunization rate: refund of
$2 per enrollee for all enrollees under age 21 not screened.
	 
	iii.	 	Achievement of a 30 percent to less than 40 percent
EPSDT screening, dental visit and immunization rate: refund of
$3 per enrollee for all enrollees under age 21 not screened.
	 
	iv.	 	Achievement of less than 30 percent: refund of $4 per
enrollee for all enrollees under age 21 not screened.

	b.	 	Discretionary Sanction. The DMAHS shall have the right to
impose a financial or administrative sanction if the contractor’s
performance screening rate is between sixty (60) — seventy (70)
percent. The DMAHS, in its sole discretion, may impose a sanction
after review of the contractor’s corrective action plan and ability
to demonstrate good faith efforts to improve compliance.

	2.	 	Failure to achieve and maintain the required screening rate shall result
in the Local Health Departments being permitted to screen the
contractor’s pediatric members. The cost of these screenings shall be
paid by the DMAHS to the LHD, and the screening cost shall be deducted
from the contractor’s capitation rate in addition to the damages imposed
as a result of failure to achieve EPSDT performance standards.
	 
	3.	 	Mandatory sanctions may be offset when the contractor demonstrates
improved compliance. The Division, in its sole discretion, may reduce
the sanction amount by $1 for each twelve (12) point improvement over
prior reporting period

	Amended as of July 1, 2004	 	VII-29 

 

 

 

	 	 	performance rate. Offsets shall not reduce the financial sanction amount
to below $1 per enrollee not screened.

	B.	 	Blood Lead Screening

	1.	 	The contractor shall ensure that it has achieved an eighty (80)
percent blood lead screening rate of its enrollees under three years
of age during a twelve (12)-month contract period. Blood lead
screening is described in Article 4 and shall be measured using
encounter data and the DHSS database. If the contractor has not
achieved the eighty (80) percent blood lead screening rate by the end
of the twelve (12)-month period, it shall submit a corrective action
plan to DMAHS within thirty (30) days of notification by DMAHS of its
actual blood lead level screening rate. DMAHS shall have the right to
conduct a follow-up onsite review and/or impose financial damages for
non-compliance.

	a.	 	Mandatory sanction. Failure of the contractor to achieve
sixty (60) percent screening rate shall require the following
refund of capitation paid:

	i.	 	Achievement of a 50 percent to less than 60 percent lead screening
rate: refund of $2 per enrollee for all enrollees under age 3 not
screened.
	 
	ii.	 	 Achievement of a 40 percent to less than 50 percent lead screening
        rate: refund of $3 per enrollee for all enrollees under age 3 not screened.
	 
	iii.	 	Achievement of a 30 percent to less than 40 percent
lead screening rate: refund of $4 per enrollee for all enrollees
under age 3 not screened.
	 
	iv. 	 	Achievement of less than 30 percent lead screening rate: refund of
        $5 per enrollee for all enrollees under age 3 not screened.

	b.	 	Discretionary sanction. The DMAHS shall have the right to
impose a financial or administrative sanction if the contractor’s
performance screening rate is between sixty (60) - seventy (70)
percent. The DMAHS, in its sole discretion, may impose a sanction
after review of the contractor’s corrective action plan and ability
to demonstrate good faith efforts to improve compliance.

	C.	 	The contractor must demonstrate continuous quality improvement in
achieving the performance standards for EPSDT and lead screenings as
stated in Article 4. The Division shall, in its sole discretion,
determine the appropriateness of contractor proposed corrective action
and the imposition of any other financial or administrative sanctions in
addition to those set out above.

	Amended as of July 1, 2004	 	VII-30 

 

 

 

7.20 CONTRACTOR CERTIFICATIONS

7.20.1 GENERAL PROVISIONS

	A.	 	With respect to any report, invoice, record, papers,
documents, books of account, or other contract-required data
submitted to the Department in support of an invoice or documents
submitted to meet contract requirements, including, but not limited
to, proofs of insurance and bonding, Lobbying Certifications and
Disclosures, Conflict of Interest Disclosure Statements and/or
Conflict of Interest Avoidance Plans, pursuant to the requirements
of this contract, the Contractor’s Representative or his/her
designee shall certify that the report, invoice, record, papers,
documents, books of account or other contract required data is
current, accurate, complete and in full compliance with legal and
contractual requirements to the best of that individual’s knowledge
and belief.
	 
	B.	 	The contractor shall attest, based on best knowledge,
information, and belief, as to the accuracy, completeness and
truthfulness of enrollment information, encounter data, provider
networks, marketing materials, provider and beneficiary
notifications and educational materials and any other
information/documents specified in this contract.

7.20.2 CERTIFICATION SUBMISSIONS

	A.	 	Where in this contract there is a requirement that the
contractor “certify” or submit a “certification,” such certification
shall be in the form of an affidavit or declaration under penalty of
perjury dated and signed by the Contractor’s Representative or
his/her designee.
	 
	B.	 	The data must be certified by one of the following:

	1.	 	Chief Executive Officer (CEO)
	 
	2.	 	Chief Financial Office (CFO)
	 
	3.	 	An individual who has delegated authority to sign
for, and who reports directly to the contractor’s CEO or CFO.

	C.	 	The contractor shall submit the certification concurrently
with the certified data. (See Appendix, Section A.7.1 for
certification forms.)

7.20.3 ENVIRONMENTAL COMPLIANCE

	 	 	The contractor shall comply with all applicable environmental laws, rules,
directives, standards, orders, or requirements, including but not limited
to, Section 306 of the Clean Air Act (42 U.S.C. § 1857(h)), Section 508 of
the Clean Water Act (33 U.S.C. § 1368), Executive Order 11738, and the
Environmental Protection Agency (EPA) regulations (40 C.F.R., Part 15)
that prohibit the use of the facilities included on the EPA List of
Violating Facilities.

	Amended as of July 1, 2004	 	VII-34 

 

 

 

	 	 	shall include, but not be limited to, utilization information on
enrollee encounters with PCPs, children who have not received an EPSDT
examination or a blood lead screening, specialty claims, prescriptions,
inpatient stays, and emergency room use.
	 
	E.	 	The contractor shall collect and analyze data to implement effective
quality assurance, utilization review, and peer review programs in which
physicians and other health care practitioners participate. The
contractor shall review and assess data using statistically valid
sampling techniques including, but not limited to, the following:
	 
	 	 	Primary care practitioner audits; specialty audits; inpatient mortality
audits; quality of care and provider performance assessments; quality
assurance referrals; credentialing and recredentialing; verification of
encounter reporting rates; quality assurance committee and subcommittee
meeting agendas and minutes; enrollee complaints, grievances, and
follow-up actions; providers identified for trending and sanctioning,
including providers with low blood lead screening rates; special quality
assurance studies or projects; prospective, concurrent, and
retrospective utilization reviews of inpatient hospital stays; and
denials of off-formulary drug requests.
	 
	F.	 	The contractor shall prepare and submit to DMAHS quarterly reports to be
reported by hard copy and diskette in a format and software application
system determined by DMAHS, containing summary information on the
contractor’s operations for each quarter of the program (See Section A.7
of the Appendices, Tables 1 through 21. Exception - Tables 3A and 3B
shall be submitted monthly by the fifteenth (15`h) of every month.).
These reports shall be received by DMAHS no later than forty-five (45)
calendar days after the end of the quarter. After a grace period of five
(5) calendar days, for each calendar day after a due date that DMAHS has
not yet received at a prescribed location a report that fulfills the
requirements of any one item, assessment for damages equal to one half
month’s negotiated blended capitation rate that would normally be owed by
DMAHS to the contractor for one recipient shall be applied. The damages
shall be applied as an offset to subsequent payments to the contractor.
	 
	 	 	The contractor shall be responsible for continued reporting beyond the
term of the contract because of lag time in submitting source documents
by providers.
	 
	G.	 	The contractor may submit encounter reports daily but must submit
encounter reports at least quarterly. However, encounter reports will be
processed by DMAHS’ fiscal agent no, more frequently than monthly. All
encounters shall be reported to DMAHS within seventy-five (75) days of
the end of the quarter in which they are received by the contractor and
within one year plus seventy-five (75) days from the date of service.

	 	 	 
	Amended as of July 1, 2004 	 	VI-38 

 

 

	H.	 	The contractor shall, annually and at the time changes are made
report its staffing positions including the names of supervisory
personnel (Director level and above and the QM/UR personnel),
organizational chart, and any position vacancies in these major
areas.
	 
	I.	 	DMAHS shall have the right to create additional reporting
requirements at any time as required by applicable federal or State
laws and regulations, as they exist or may hereafter be amended and
incorporated into this contract.
	 
	J.	 	Reports that shall be submitted on an annual or semi-annual
basis, as specified in this contract, shall be due within sixty (60)
days of the close of the reporting period, unless specified
otherwise.
	 
	K.	 	MCSA Paid Claims Reconciliation. On a quarterly basis, the
contractor shall provide paid claims data, via an encounter data file
or separate paid claims file, that meet the HIPAA format requirements
for audit and reconciliation purposes. The contractor shall provide
documentation that demonstrates a 100% reconciliation of the amounts
paid to the amounts billed to the DMAHS. The paid claims data shall
include at a minimum, claim type, provider type, category of service,
diagnosis code (5 digits), procedure/revenue code, Internal Control
Number or Patient Account Number under HIPAA, provider. ID, dates of
services, that will allow the DMAHS to price claims in comparison to
Medicaid fee schedules for evaluation purposes.
	 
	L.	 	Encounter Data Submissions. The contractor shall cooperate with
the DMAHS in its review of the status of encounter data submissions
to determine needed improvements for accuracy and completeness of
encounter data submissions. With the contract period beginning July
2005, the contractor will be subject to additional sanctions if not
in full compliance with encounter data submission standards.

7.27 FINANCIAL STATEMENTS

7.27.1 AUDITED FINANCIAL STATEMENTS (SAP BASIS)

	A.	 	Annual Audit. The contractor shall submit its audited annual
financial statements prepared in accordance with Statutory Accounting
Principles (SAP) certified by an independent public accountant no
later than June 1 of each year, for the immediately preceding
calendar year as well as for any company that. is a financial
guarantor for the contractor in accordance with N.J.S.A. 8:38-11.6.
	 
	B.	 	Audit of Rate Cell Grouping Costs
	 
	 	 	The contractor shall submit, quarterly, reports found in Appendix,
Section A in accordance with the “HMO Financial Guide for Reporting
Medicaid/NJ Family Care Rate Cell Grouping Costs” (Appendix, Section
B7.3). These reports shall be

Amended as of July 1, 2004

 

 

8.5.3 NEWBORN INFANTS

	 	 	The contractor shall be reimbursed for newborns from the date of birth
through the first 60 days after the birth through the period ending at
the end of the month in which the 60th day falls by a supplemental
payment as part of the supplemental maternity payment. Thereafter,
capitation payments will be made prospectively, i.e., only when the
baby’s name and ID number are accreted to the Medicaid eligibility file
and formally enrolled in the contractor’s plan.

8.5.4 SUPPLEMENTAL PAYMENT PER PREGNANCY OUTCOME

	 	 	Because costs for pregnancy outcomes were not included in the capitation
rates, the contractor shall be paid supplemental payments for pregnancy
outcomes for all eligibility categories.

Payment for pregnancy outcome shall be a single, predetermined lump sum
payment. This amount shall supplement the existing capitation rate paid.
The Department will make a supplemental payment to contractors following
pregnancy outcome. For purposes of this Article, pregnancy outcome shall
mean each live birth, still birth or miscarriage occurring at- the
thirteenth (13th) or greater week of gestation. This supplemental
payment shall reimburse the contractor for its inpatient hospital,
antepartum, and postpartum costs incurred in connection with delivery.
Costs for care of the baby for the first 60 days after the birth plus
through the end of the month in which the 60th day falls are included
(See Section 8.5.3). Regional payment shall be made by the State to the
contractor based on submission of a financial summary report of hospital
and/or birthing center claims paid for final pregnancy outcomes. No
other services, inpatient hospital or otherwise, rendered prior to final
pregnancy outcome shall qualify or be payable for a maternity
supplement.
	 
	 	 	The report shall be accompanied by a signed certification form and an
electronic file to include:

	1.	 	Paid inpatient hospital/birthing center claims;
	 
	2.	 	Name of mother;
	 
	3.	 	Mother’s Medicaid identification number;
	 
	4.	 	Newborn’s name, if known;
	 
	5.	 	Diagnosis and five-digit ICD-9 codes, including
V-codes, specified by DMAHS; and
	 
	6.	 	Place of service.

	 	 	The contractor shall continue to submit encounter data that will
document each paid claim reported on the financial summary report. The
DMAHS will conduct a reconciliation of these paid claims utilizing
encounter data.

8.5.5 PAYMENT FOR CERTAIN BLOOD CLOTTING FACTORS

	Amended as of July 1, 2004	 	VIII-8 

 

 

 

	K.	 	Hospitalizations. For any eligible person who applies for participation
in the contractor’s plan, but who is hospitalized prior to the time
coverage under the plan becomes effective, such coverage shall not
commence until the date after such person is discharged from the
hospital and DMAHS shall be liable for payment for the
hospitalization, including any charges for readmission within
forty-eight (48) hours of discharge for the same diagnosis. If an
enrollee’s disenrollment or termination becomes effective during a
hospitalization, the contractor shall be liable for hospitalization
until the date such person is discharged from the hospital,
including any charges for readmission within forty-eight (48) hours
of discharge for the same diagnosis. The contractor must notify
DMAHS of these occurrences to facilitate payment to appropriate
providers.
	 
	L.	 	Continuation of Benefits. The contractor shall continue
benefits for all enrollees for the duration of the contract period
for which capitation payments have been made, including enrollees
in an inpatient facility until discharge. The contractor shall
notify DMAHS of these occurrences.
	 
	M.	 	Drug Carve-Out Report. The DMAHS will provide the contractor
with a monthly electronic file of paid drug claims data for
non-dually eligible, ABD enrollees.
	 
	N.	 	MCSA Administrative Fee. The Contractor shall receive a
monthly administrative fee, PMPM, for its MCSA enrollees, by the
fifteenth (15th) day of any month during which health care services
will be available to an enrollee.
	 
	O.	 	Reimbursement for MCSA Enrollee Paid Claims. The DMAHS shall
reimburse the contractor for all claims paid on behalf of MCSA
enrollees. The contractor shall submit to DMAHS a financial summary
report of claims paid on behalf of MCSA enrollees on a weekly
basis. The report shall be summarized by category of service
corresponding to the MCSA benefits and payment dates, accompanied
by an electronic file of all individual claim numbers for which the
State is being billed.
	 
	P.	 	MCSA Claims Payment Audits. The contractor shall monitor and
audit claims payments to providers to identify payment errors,
including duplicate payments, overpayments, underpayments, and
excessive payments. For such payment errors (excluding
underpayments), the contractor shall refund DMAHS the overpaid
amounts. The contractor shall report the dollar amount of claims
with payment errors on a monthly basis, which is subject to
verification by the State. The contractor is responsible for
collecting funds due to the State from providers, either through
cash payments or through offsets to payments due the providers.

8.9 CONTRACTOR ADVANCED PAYMENTS AND PIPS TO PROVIDERS

	A.	 	The contractor shall make advance payments to its providers,
capitation, FFS, or other financial reimbursement arrangement,
based on a provider’s historical billing or utilization of services
if the contractor’s claims processing systems
	 
	 	 	

	Amended as of July 1, 2004	 	VIII-19 

 

 

 

	 	 	against the next PIP made to the hospital. An example
of how this methodology shall work is as follows:

EXAMPLE:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	PIP	 	Claims	 	Reconciliation	 	Net	 	 
	 	 	Payment	 	Adjudicated	 	Adjustment	 	Payment	 	Balance .
	Aug 1
	 	 	300,000 	(A)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Aug 1
	 	 	300,000 	(B)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	600,000	 
	Aug 1-31
	 	 	 	 	 	 	180,000	 	 	 	 	 	 	 	 	 	 	 	420,000	 
	Sept 1
	 	 	300,000 	(C)	 	 	 	 	 	 	(120,000	) (A)	 	 	180,000	 	 	 	600,000	 
	Sept 1-30
	 	 	 	 	 	 	270,000	 	 	 	 	 	 	 	 	 	 	 	330,000	 
	Oct 1
	 	 	300,000 	(D)	 	 	 	 	 	 	(30,000	) (B)	 	 	270,000	 	 	 	600,000	 
	Oct 1-31
	 	 	 	 	 	 	320,000	 	 	 	 	 	 	 	 	 	 	 	280,000	 
	Nov 1
	 	 	300,000 	(E)	 	 	 	 	 	 	20,000 	(C)	 	 	320,000	 	 	 	600,000	 

8.10 FEDERALLY QUALIFIED HEALTH CENTERS

	A.	 	Standards for Contractor FQHC Rates. The contractor shall
not reimburse FQHCs less than the level and amount of payment that
the contractor would make for a similar set of services if the
services were furnished by a non-FQHC. The contractor may pay the
FQHCs on a fee-for-service or capitated basis. The contractor shall
make payments for primary care equal to, or greater than, the.
average amounts paid to other primary care providers. Non-primary
care services may be included if mutually agreeable between the
contractor and FQHC. For non-primary care services, payments shall
be equal to, or greater than, the average amounts paid to other
non-primary care providers for equivalent services.
	 
	B.	 	DMAHS Reimbursement to FQHCs. Under Title XIX, an FQHC shall be paid
under a Prospective Payment System (PPS) by DMAHS. At the end of each
calendar quarter, the contractor and the FQHC will complete certain
reporting requirements specified that will enable DMAHS to determine PPS
reimbursement and compare that to what was actually paid by the contractor
to the FQHC. DMAHS will reimburse the FQHC the difference (between the PPS
rate per encounter and the payments to the FQHC made by the contractor) if
the payments by the contractor to the FQHC are less than the PPS rate. In
the event of an overpayment, the FQHC shall reimburse DMAHS for payments
received from the contractor that are in excess of PPS rate. FQHC
providers must meet the contractor’s credentialing and program
requirements.
	 
	C.	 	Contractor Participation in Reconciliation Process. The
contractor shall participate in the reconciliation processes if
there is a dispute between what the

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]