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exv4w2

Exhibit 4.2

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BARCLAYS PLC

 

RULES OF THE

BARCLAYS GROUP SHARE VALUE PLAN

 

Adopted by the Board Remuneration Committee of Barclays PLC on 12 March 2010

and amended by the Board Remuneration Committee on 14 March 2011

Amended by shareholders of the Barclays PLC on • 2011

- 1 -

 

CONTENTS

	 	 	 	 	 
	Rule	 	Page	 
	1. Definitions and Interpretation
	 	 	1	 
	 
	 	 	 	 
	2. Grant of Awards
	 	 	3	 
	 
	 	 	 	 
	3. Vesting of Awards
	 	 	5	 
	 
	 	 	 	 
	4. Consequences of Vesting
	 	 	6	 
	 
	 	 	 	 
	5. LimiTS
	 	 	7	 
	 
	 	 	 	 
	6. Vesting After Cessation of Employment
	 	 	9	 
	 
	 	 	 	 
	7. Take-over and Liquidation
	 	 	10	 
	 
	 	 	 	 
	8. Variations in the Share Capital of the Company
	 	 	10	 
	 
	 	 	 	 
	9. Administration of the Plan
	 	 	11	 
	 
	 	 	 	 
	10. Amendment of the Plan
	 	 	11	 
	 
	 	 	 	 
	11. Forfeitable SECURITIES
	 	 	12	 
	 
	 	 	 	 
	12. Cash Alternative
	 	 	12	 
	 
	 	 	 	 
	13. General Provisions
	 	 	13	 
	 
	 	 	 	 
	Schedule 1 — Special Provisions Schedule
	 	 	16	 
	 
	 	 	 	 
	Schedule 2 — Cash Awards 
	 	 	18	 
	 
	 	 	 	 
	Schedule 3 - Contingent Capital Awards
	 	 	19	 

 

 

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	In the Plan, unless the context otherwise requires:
	 
	 	 	“Adoption Date” means 12 March 2010 being the date on which the Plan was adopted by the
Committee;
	 
	 	 	“Award” means a Conditional Award, a Forfeitable Award, an Option, a Provisional Allocation
or such other form of award as determined by the Grantor on or before the Award Date which
may relate to Shares or to Capital Instruments;
	 
	 	 	“Award Date” means in relation to an Award the date specified as such by the Grantor in the
Award Letter;
	 
	 	 	“Award Letter” means a letter containing the information specified in Rule 2.2 in such form
as may be prescribed from time to time by the Grantor provided to a Participant informing
the Participant of the grant of an Award to him;
	 
	 	 	“Board” means the board of directors for the time being of the Company or a duly authorised
committee of the Board or a duly authorised person;
	 
	 	 	“Capital Instrument” means a capital instrument or security issued by a member of the Group
from time to time;
	 
	 	 	“Cash Award” means an Award which relates to a cash sum granted under Schedule 2 to the
Plan;
	 
	 	 	“Committee” means the remuneration committee for the time being of the Board (or a duly
authorised committee thereof or person or persons duly authorised by the remuneration
committee to exercise any of its powers or duties under the Plan) empowered to act on behalf
of the Company for all purposes in connection with the Plan or, if there is no such
committee in existence at the relevant time, the Board, save that, should any person obtain
Control of the Company, the Committee shall mean the members of the Committee immediately
before such Control is obtained;
	 
	 	 	“Company” means Barclays PLC (registered no. 48839);
	 
	 	 	“Conditional Award” means a conditional right to acquire Securities granted under the Plan;
	 
	 	 	“Control” means control within the meaning of section 995 of the Income Tax Act 2007;
	 
	 	 	“Coupon” means an amount paid as interest or a similar payment in respect of Capital
Instruments subject to an Award over all or part of the Vesting Period;
	 
	 	 	“Coupon Equivalent” means an amount that the Grantor may determine to add to a Vesting
Portion on a Vesting Date which is equal to the value of any Coupons paid on the Capital
Instruments subject to an Award which would have been paid to the Participant in respect of
the Capital Instruments acquired on the exercise of an Option or Vesting of a Conditional
Award or Provisional Allocation between the Award Date and the date on which the Option
first became exercisable or the Conditional Award or Provisional Allocation Vested as the
case may be, had those Capital Instruments been beneficially owned by the Participant during
that period;
	 
	 	 	“Dividend Shares” means a number of Shares equal to the value of dividends paid on the
Shares subject to an Award over all or any part of the Vesting Period and which may be added
to a Vesting Portion on a Vesting Date as determined by the Grantor;

1

 

	 	 	“Eligible Employee” means any person who is an employee or former employee of any member of
the Group [(including an executive director of the Company)]1 and who is deemed
to be eligible to participate by the Grantor;
	 
	 	 	“Employer” means the employing company of an Eligible Employee or a Participant, as the
context so requires;
	 
	 	 	“Forfeitable Award” means the transfer of the beneficial interest in Forfeitable Securities
to a Participant and the subsequent holding of that interest in accordance with the Plan;
	 
	 	 	“Forfeitable Securities” means Securities comprised in a Forfeitable Award which are subject
to certain restrictions and forfeiture under the Plan;
	 
	 	 	“Grantor” means the Committee or the Trustees, as the case may be, and where the Trustees
grant the Award, the grant shall only be made following consultation with the Committee and
the Trustees may only exercise their discretions under Rules 2, 3, 4, 6, 7, 8 and 10 of the
Plan following consultation with the Committee;
	 
	 	 	“Group” means the Company and all of its Subsidiaries and the expression “member of the
Group” shall be construed accordingly;
	 
	 	 	“Option” means a right to acquire Securities granted under the Plan which is designated as
an option by the Grantor under Rule 2.2;
	 
	 	 	“Option Price” means the amount, if any, payable on the exercise of an Option;
	 
	 	 	“Participant” means an Eligible Employee who has been granted an Award or, where applicable,
his personal representative;
	 
	 	 	“Participating Companies” means the Company and other members of the Group which have been
nominated by the Committee to participate in the Plan;
	 
	 	 	“Performance Condition” means a condition related to performance which is specified by the
Grantor under Rule 2.2;
	 
	 	 	“Plan” means the Barclays Group Share Value Plan as constituted by these rules and as
amended from time to time in accordance with the provisions hereof;
	 
	 	 	“Provisional Allocation” means a provisional award of Securities awarded by the Trustees
which does not (i) constitute the acquisition by a Participant of an interest in the
Securities awarded to him or the acquisition of a right to acquire those Securities or (ii)
entitle a Participant to claim any interest in the trust fund of the Trust or to compel the
Trustees to pay or apply any of the capital or income comprised in the trust fund of the
Trust to or for the benefit of a Participant;
	 
	 	 	“Risk Committee” means the Barclays Group Risk Committee (or a duly authorised committee
thereof or a duly authorised person);
	 
	 	 	“Rules” means the rules of the Plan as set out in this document and “Rule” shall be
construed accordingly;
	 
	 	 	“Securities” means Shares or Capital Instruments as the context so requires;
	 
	 	 	“Shares” means ordinary shares in the capital of the Company or such other class of shares
as may represent the same as a result of any reorganisation, reconstruction or other
variation of the share

 

			
	1	 	Provision subject to shareholder
approval at the 2011 AGM; no grants to executive directors may be made before
shareholder approval is obtained.

2

 

	 	 	capital of the Company to which the provisions of the Plan may apply from time to time
PROVIDED THAT if a corporate event described in Rule 7 occurs, references to “Shares” in
Rules 3 to 7 inclusive shall include any consideration received for any such shares under an
Award which may otherwise have Vested;
	 
	 	 	“Special Provisions Schedule” means Schedule 1 to the Plan;
	 
	 	 	“Subsidiary” means any company which is a subsidiary of the Company within the meaning of
section 1159 of the Companies Act 2006;
	 
	 	 	“Trust” means the Barclays Group (PSP) Employees’ Benefit Trust established by a trust deed
made between Barclays Bank PLC (1) and Mourant & Co Trustees Limited (2) on 5 August 1996 as
amended from time to time (and of which Appleby Trust (Jersey) Limited is the current
trustee);
	 
	 	 	“Trustees” means the trustee or trustees for the time being of the Trust;
	 
	 	 	“US Participant” means a Participant who (i) is resident in, or a citizen or green card
holder of, the United States of America on the Award Date, (ii) is otherwise subject to US
taxation on the Award Date or (iii) becomes subject to US taxation prior to exercise or
Vesting of an Award;
	 
	 	 	“Vest” means:

	 	(a)	 	in relation to a Conditional Award, a Participant becoming entitled to have Securities
transferred to him (or his nominee account) subject to the Rules;
	 
	 	(b)	 	in relation to an Option, it becoming exercisable;
	 
	 	(c)	 	in relation to a Forfeitable Award, the restrictions imposed on the Forfeitable
Securities under the Plan ceasing to apply;
	 
	 	(d)	 	in relation to a Provisional Allocation, the Trustees determining in their absolute
discretion to release some or all of the Securities subject to the Provisional Allocation,

	 	 	and “Vesting” shall be construed accordingly;
	 
	 	 	“Vesting Date” means such date as the Grantor shall in its absolute discretion determine in
relation to a Vesting Portion of an Award;
	 
	 	 	“Vesting Period” means the period from the Award Date to the final Vesting Date specified in
the Award Letter; and
	 
	 	 	“Vesting Portion” means such percentage of the Securities subject to an Award (rounded down
to the nearest whole Security) as may Vest on or about any Vesting Date as set out in the
Award Letter.
	 
	1.2	 	Any reference in the Plan to a statutory provision shall include a reference to that
provision as amended or re-enacted from time to time. Where the context permits the singular
shall include the plural and vice versa and the masculine gender shall include the feminine.
	 
	2.	 	GRANT OF AWARDS
	 
	2.1	 	Subject to the limitations specified in this Rule 2, the Grantor may in its absolute
discretion grant any Eligible Employee an Award in accordance with the Rules and if relevant
modified by the Special Provisions Schedule and on such additional terms as the Grantor may
specify at the time of grant. For the avoidance of doubt, an Award may not be granted to a
person who is not an Eligible Employee.

3

 

	2.2	 	The Grantor shall as soon as reasonably practicable on or after the Award Date notify the
Eligible Employee of the grant of the Award in writing in an Award Letter. The Award Letter
shall specify (without limitation):

	 	(a)	 	the form of the Award;
	 
	 	(b)	 	the number of Securities in respect of which the Award is granted or the formula by which
such number may be found;
	 
	 	(c)	 	the Award Date;
	 
	 	(d)	 	whether the Award is subject to any Performance Condition(s); and
	 
	 	(e)	 	details of the applicable Vesting Date(s) and Vesting Portion(s).

	2.3	 	The number of Securities in respect of which an Award is to be granted shall be calculated by
the Grantor.
	 
	2.4	 	There shall be no consideration payable for the grant of an Award.
	 
	2.5	 	The grant of any Award shall be subject to obtaining any approval or consent required under
the United Kingdom Listing Authority Listing Rules, any relevant share dealing code of the
Company, the City Code on Takeovers and Mergers and any other relevant UK or overseas
regulation or enactment.
	 
	2.6	 	An Award may be granted:

	 	(a)	 	in the 6 weeks beginning with:

	 	(i)	 	the date on which the Plan is approved by the shareholders of the Company; or
	 
	 	(ii)	 	the dealing day after the date on which the Company announces
its results for any period; or
	 
	 	(iii)	 	the removal of any restrictions imposed on the Grantor or the
Company which prevented an Award from being granted in the period mentioned in
(ii); or
	 
	 	(iv)	 	the date on which changes to any legislation or regulations
affecting the Plan are announced or made; or

	 	(b)	 	at any other time when the Grantor so decides, provided that it is not
restricted from granting Awards at that time by law or regulation
	 
	 	 	 	[but an Award may not be granted after 27 April 2021 (that is, the expiry of the period
of 10 years beginning with the date on which the Plan is approved by the shareholders of
the Company).]2

	2.7	 	Any Award granted to a Participant is personal to him and shall not be capable of being
transferred or otherwise disposed of by a Participant. Any such Award shall lapse immediately
if it is so transferred, purported to be transferred or otherwise disposed of or if the
Participant is adjudged bankrupt.
	 
	2.8	 	Except in the case of Forfeitable Awards, until an Award Vests, a Participant shall not be
entitled to any dividends or other distributions made in respect of the Securities awarded to
him and shall have no right to vote in respect of the Securities subject to his Award.
	 
	2.9	 	An Award of Shares may be satisfied:

 

			
	2	 	Provision subject to shareholder
approval at the 2011 AGM.

4

 

	 	(a)	 	[by the issue of new Shares; and/or
	 
	 	(b)	 	by the transfer of treasury Shares; and/or] 3
	 
	 	(c)	 	by the transfer of Shares (other than the transfer of treasury Shares).

	2.10	 	An Award of Capital Instruments may be satisfied by [the issue of new Capital Instruments
and/or by]4 the transfer of Capital Instruments.
	 
	2.11	 	The Grantor may decide to change the way in which it is intended that an Award granted as a
Conditional Award, an Option or a Provisional Allocation may be satisfied after it has been
granted, having regard to the provisions of Rule 5.
	 
	3.	 	VESTING OF AWARDS
	 
	3.1	 	Subject to the remainder of Rule 3 and Rules 6 and 7 and to the satisfaction of any
Performance Condition attaching to an Award, the relevant Vesting Portion of an Award
(provided it is not a Provisional Allocation) and any Dividend Shares or Coupon Equivalent (if
applicable) shall Vest in accordance with Rule 4 on the Vesting Date. In the case of a
Provisional Allocation, the Trustees shall, in their absolute discretion, determine whether
the Vesting Portion shall Vest on the Vesting Date in accordance with Rule 4.
	 
	3.2	 	Subject to Rules 3.3, 3.4 and 6 and to the satisfaction of any Performance Condition
attaching to an Award, if on any Vesting Date the Participant is not an employee of the Group,
the Grantor may in its absolute discretion and in accordance with Rule 4 allow:

	 	(a)	 	the relevant Vesting Portion and any Dividend Shares or Coupon Equivalent (if
applicable) to Vest on its Vesting Date; or
	 
	 	(b)	 	a lower number of such Securities and any Dividend Shares or Coupon Equivalent
(if applicable)to Vest; or
	 
	 	(c)	 	no Securities, Dividend Shares or Coupon Equivalent at all to Vest.

	3.3	 	Notwithstanding any other provision of the Plan, and irrespective of whether any Performance
Condition attached to an Award has been satisfied, if the Grantor determines in its absolute
discretion that the underlying financial health of the Group has significantly deteriorated
over the whole or any part of the Vesting Period, such that there are severe financial
constraints on the Group which preclude or limit the Group’s ability to facilitate funding of
Awards then:

	 	(a)	 	the Grantor may at its absolute discretion determine that any Vesting Portion
and/or Dividend Shares or Coupon Equivalent (if any) that may otherwise Vest may be
limited, reduced and/or made subject to any other condition as the Grantor considers at
its absolute discretion appropriate; and
	 
	 	(b)	 	in the absence of any determination by the Grantor under Rule 3.3(a), the
Vesting of any Vesting Portion and/or Dividend Shares or Coupon Equivalent (if any)
that may otherwise Vest (including any Securities not released as the result of the
exercise of discretion by the Grantor under Rule 3.3 (a)) shall be suspended until such
time as the Grantor lifts such suspension or exercises its discretion under Rule 3.3(a)
PROVIDED THAT to the extent that the Grantor has not lifted such suspension or
exercised its discretion under Rule 3.3(a) within 3 years from the date specified at
the Award Date as the final Vesting Date of an Award which remains outstanding and in
respect of which Vesting of any Vesting Portion and/or

 

			
	3	 	Provision subject to shareholder
approval at the 2011 AGM.
	 
	4	 	Provision subject to shareholder
approval at the 2011 AGM.

5

 

	 	 	 	Dividend Shares or Coupon Equivalent (if any) remains suspended under this Rule
3.3(b), all such Awards shall be forfeited and lapse in their entirety, unless the
Grantor, in exceptional circumstances, determines otherwise.

	3.4	 	Notwithstanding any other provision of the Plan, and irrespective of whether any Performance
Condition attached to an Award has been satisfied, the Grantor may, in its absolute
discretion, determine that any Vesting Portion and/or Dividend Shares or Coupon Equivalent (if
any) may be reduced (to nil if appropriate) as a result of:

	 	(a)	 	the Group or any Subsidiary’s financial statements having been materially
restated at any time during the Vesting Period other than restatement due to a change
in accounting policy or to rectify a minor error;
	 
	 	(b)	 	the Participant having, in the reasonable opinion of the Committee, following
consultation with his Employer, deliberately misled the management of the Company, the
market and/or the Company’s shareholders regarding the financial performance of the
Group or of any Subsidiary at any time during the Vesting Period;
	 
	 	(c)	 	the Participant’s actions at any time during the Vesting Period having, in the
reasonable opinion of the Committee, following consultation with his Employer, caused
harm to the reputation of the Group and/or the Participant’s business unit;
	 
	 	(d)	 	the Participant’s actions at any time during the Vesting Period having, in the
reasonable opinion of the Committee, following consultation with his Employer, amounted
to serious misconduct; or
	 
	 	(e)	 	the Group or the business in which the Participant works having, in the
reasonable opinion of the Committee, following consultation with the Risk Committee,
suffered a material failure of risk management during the Vesting Period

	3.5	 	If a Participant relocates to another jurisdiction before his Award Vests and, as a result of
the relocation, the Participant or any member of the Group would be subject to additional tax
or social security on the Vesting of the Award or the Vesting of the Award in that other
jurisdiction would be subject to any regulatory restriction, approval or consent, the Grantor
may determine that the Award may Vest on such terms and during such period preceding the date
on which the Participant relocates as the Grantor may determine.
	 
	4.	 	CONSEQUENCES OF VESTING
	 
	4.1	 	In the case of a Conditional Award, the Grantor shall, subject to the remainder of this Rule
4, transfer or procure the transfer of the Vesting Portion of the Award to the Participant or
his nominee account on or as soon as reasonably practicable after the relevant Vesting Date.
	 
	4.2	 	In the case of an Option, the Option shall, subject to the remainder of this Rule 4, be
exercisable in respect of Securities subject to the Vesting Portion for a period determined by
the Grantor at the Award Date in its absolute discretion, but being a period of no longer than
10 years from the Award Date, starting with the relevant Vesting Date unless it lapses earlier
under Rules 6 or 7. If an Option is not exercised during the last 30 days of that period
because of any regulatory restrictions, the Grantor may extend the period during which the
Option may be exercised so as to permit the Option to be exercised as soon as those
restrictions cease to apply.

6

 

	4.3	 	In the case of a Forfeitable Award, the Vesting Portion of the Forfeiture Securities shall
cease to be subject to the restrictions imposed on those Forfeitable Securities under the Plan
and the Grantor shall, subject to the remainder of this Rule 4, transfer or procure the
transfer of the legal title to those Forfeitable Securities and/or any documents of title
relating to those Forfeitable Securities to the Participant or his nominee account on or as
soon as reasonably practicable on or around the relevant Vesting Date.
	 
	4.4	 	In the case of a Provisional Allocation, if the Trustees determine that any Securities under
an Award shall Vest pursuant to Rules 3, 6 or 7, the Trustees shall as soon as reasonably
practicable on or around the relevant Vesting Date transfer or procure the transfer to the
Participant or his nominee account of the Vesting Portion in such form and manner as the
Trustees shall from time to time prescribe in which case:

	 	(a)	 	the Trustees shall inform the Participant of the release of Securities to him
within 28 days of Vesting; and
	 
	 	(b)	 	the Participant shall from the date of such determination become beneficially
entitled to such Securities and shall have the right to receive all dividends or
Coupons, as the case may be, paid to the Trustees on such Securities on or after their
Vesting (net of any tax payable on such dividends or Coupon by the Trustees) and the
right to direct the Trustees as to voting in respect of such Securities (where such
Securities are Shares) and the Trustees shall vote in accordance with any such
instructions.

	4.5	 	An Award shall not Vest unless and until the following conditions are satisfied:

	 	(a)	 	if the Grantor so requires, the Participant shall enter into an election to be
made jointly with his Employer pursuant to section 431 of the Income Tax (Earnings and
Pensions) Act 2003 for the Securities to be treated as if they are not restricted
securities for the purposes of Chapter 2, Part 7, Income Tax (Earnings and Pensions)
Act 2003;
	 
	 	(b)	 	subject to Rule 4.6, the Participant shall pay in such manner as the Grantor
may from time to time prescribe any such additional amount of which the Grantor may
notify the Participant in respect of any deduction on account of tax or similar
liabilities as may be required by law which may arise on the release of Securities to
him; and
	 
	 	(c)	 	the Vesting of the Award or exercise of the Option and the transfer of
Securities after such Vesting or exercise would be lawful in all relevant jurisdictions
and in compliance with the United Kingdom Listing Authority Listing Rules, any relevant
share dealing code of the Company, the City Code on Takeovers and Mergers and any other
relevant UK or overseas regulation or enactment.

	4.6	 	The Grantor may sell, or procure the sale of, such number of Securities which have Vested to
meet any obligation of the Trustees, any member of the Group or any other person to deduct tax
or employees’ social security contributions or other tax withholding which may be required by
law in any jurisdiction or which the Grantor and/or the Employer reasonably considers to be
necessary or desirable in respect of the Vesting of an Award.
	 
	4.7	 	An Award shall lapse in accordance with the Plan or to the extent that it does not Vest under
the Plan. On the lapse of all or any part of a Forfeitable Award, the beneficial interest
(and, if appropriate, the legal interest) of the Forfeitable Securities in respect of which
such Award has lapsed shall be transferred for no (or nominal) consideration to any person
specified by the Grantor.
	 
	5.	 	LIMITS
	 
	5.1	 	An Award shall not be granted in any calendar year if, at the time of its proposed Award
Date, it would cause the number of Shares allocated in the period of 10 calendar years ending
with that calendar year under the Plan and under any other executive share plan adopted by the
Company to

7

 

	 	 	exceed such number as represents 5 per cent. of the ordinary share capital of the Company in
issue at that time.
	 
	5.2	 	An Award shall not be granted in any calendar year if, at the time of its proposed Award
Date, it would cause the number of Shares allocated in the period of 10 calendar years ending
with that calendar year under the Plan and under any other employee share plan adopted by the
Company to exceed such number as represents 10 per cent. of the ordinary share capital of the
Company in issue at that time
	 
	5.3	 	For the purposes of Rules 5.1 and 5.2:

	 	(a)	 	Shares are allocated when an option, award or other contractual right to acquire
unissued Shares or treasury Shares is granted and, where Shares are issued or treasury
Shares are transferred otherwise than pursuant to an option, award or other contractual
right to acquire Shares, when those Shares are issued or treasury Shares transferred;
	 
	 	(b)	 	any Shares which have been issued or which may be issued (or any Shares transferred out
of treasury or which may be transferred out of treasury) to any trustees to satisfy the
exercise of any option, award or other contractual right granted under any employee share
plan shall count as allocated unless they are already treated as allocated under this Rule;
and
	 
	 	(c)	 	for the avoidance of doubt, existing Shares other than treasury Shares that are
transferred or over which options, awards or other contractual rights are granted shall
not count as allocated.

	5.4	 	For the purposes of Rule 5.3:

	 	(a)	 	where:

	 	(i)	 	any option, award or other contractual right to acquire unissued Shares or treasury
Shares is released or lapses (whether in whole or in part); or
	 
	 	(ii)	 	after the grant of an option, award or other contractual right the Grantor
determines that:

	 	(A)	 	where an amount is normally payable on its exercise it shall be satisfied
without such payment but instead by the payment of cash equal to the gain made on its
exercise; or
	 
	 	(B)	 	it shall be satisfied by the transfer of existing Shares (other
than Shares transferred out of treasury)

	 	 	 	the unissued Shares or treasury Shares which consequently cease to be
subject to the option, award or other contractual right shall not count as
allocated; and

	 	(b)	 	the number of Shares allocated in respect of an option, award or other
contractual right shall be such number as the Board shall reasonably determine from
time to time.

	5.5	 	Treasury Shares shall cease to count as allocated Shares for the purposes of Rule 5.3 if
institutional investor guidelines cease to require such Shares to be so counted.
	 
	5.6	 	Any Award shall be limited and take effect so that the limits in this Rule 5 are complied
with.
	 
	5.7	 	No Shares may be issued or treasury Shares transferred to satisfy the Vesting of any Award or
the exercise of any Option to the extent that such issue or transfer would cause the number of
Shares allocated (as defined in Rule 5.3 and adjusted under Rule 5.4) to exceed the limits in
Rules 5.1 and 5.2

8

 

	 	 	except where there is a variation of share capital of the Company which results in the
number of Shares so allocated exceeding such limits solely by virtue of that variation.
	 
	6.	 	VESTING AFTER CESSATION OF EMPLOYMENT
	 
	6.1	 	Subject to Rules 3.3 and 3.4 and unless a Vesting Portion may Vest before its Vesting Date
under Rules 6.2, 6.3, 6.4 and 7, a Vesting Portion may not Vest before the relevant Vesting
Date. Any Vesting Portion which does not Vest shall lapse.
	 
	6.2	 	Subject to Rules 3.3 and 3.4, if a Participant dies his Award (provided it is not a
Provisional Allocation) shall, unless the Grantor decides otherwise in exceptional
circumstances, Vest on the earlier of its applicable Vesting Date and the date on which the
Grantor is notified of the death in accordance with Rule 4. In the case of a Provisional
Allocation, the Trustees shall, in their absolute discretion, decide whether the Award should
Vest.
	 
	6.3	 	Subject to Rules 3.3 and 3.4, if a Participant ceases to be employed by the Group by reason
of:

	 	(a)	 	injury, disability or ill health;
	 
	 	(b)	 	redundancy;
	 
	 	(c)	 	retirement with the agreement of his Employer;
	 
	 	(d)	 	the company by which he is employed ceasing to be a member of the Group or the
undertaking in which he is employed being transferred to a transferee which is not a
member of the Group; or
	 
	 	(e)	 	his Employer terminating his employment, other than in circumstances which, in
the reasonable opinion of the Committee, amount to gross misconduct or dismissal for
cause

	 	 	his Award (provided it is not a Provisional Allocation) shall, unless the Grantor decides
otherwise in exceptional circumstances, Vest on the applicable Vesting Date for each Vesting
Portion as set out in the Award Letter and in accordance with Rule 4 PROVIDED THAT if a
Participant ceases to be employed by the Group before the Vesting Date of any Vesting
Portion the Grantor may allow such unvested Vesting Portions as the Grantor so decides to
Vest on the date of such cessation. In the case of a Provisional Allocation, the Trustees
shall, in their absolute discretion, decide whether each Vesting Portion should Vest. Any
Vesting Portion which does not Vest shall lapse.
	 
	6.4	 	Subject to Rules 3.3 and 3.4, if a Participant ceases to be employed by the Group due to
resignation, dismissal for cause or gross misconduct or for any reason other than one of the
events specified in Rules 6.2 or 6.3, his Award shall lapse unless the Grantor in its
absolute discretion in exceptional circumstances determines otherwise in which case the
Grantor may release to the Participant each Vesting Portion on or after the applicable Vesting
Date for each Vesting Portion as set out in the Award Letter and in accordance with Rule 4
PROVIDED THAT if a Participant ceases to be employed by the Group before the Vesting Date for
any Vesting Portion, the Grantor may allow such unvested Vesting Portions as the Grantor so
decides to Vest on the date of such cessation. Any Vesting Portion which does not Vest shall
lapse.
	 
	6.5	 	For the purposes of this Rule 6, a Participant shall be deemed to have ceased to be employed
by a member of the Group on the day on which his employment terminates, unless the Grantor
decides otherwise in its absolute discretion.

9

 

	7.	 	TAKE-OVER AND LIQUIDATION
	 
	7.1	 	Rule 7.2 shall apply if:

	 	(a)	 	any person obtains Control of the Company as a result of making:

	 	(i)	 	a general offer to acquire the whole of the issued share
capital of the Company (other than that which is already owned by such person)
made on a condition such that if it is satisfied the person making the offer
will have Control of the Company; or
	 
	 	(ii)	 	a general offer to acquire all the Company’s ordinary shares
(or such of those shares as are not already owned by such person); or

	 	(b)	 	under section 899 of the Companies Act 2006 the Court sanctions a compromise or
arrangement between the Company and its creditors or its members which, if it becomes
effective, will result in a person obtaining Control of the Company.

	7.2	 	Subject to Rules 3.3 and 3.4, the Grantor shall have absolute discretion to determine
whether:

	 	(a)	 	any Performance Condition should be waived or deemed to be satisfied; and/or
	 
	 	(b)	 	any Awards should Vest early before their relevant Vesting Dates; and/or
	 
	 	(c)	 	Awards should continue in the same or a revised form following the change of
Control.

	7.3	 	Subject to Rules 3.3 and 3.4, if the Company gives notice of a general meeting to consider a
resolution for the voluntary winding up of the Company (the “resolution”) the Grantor shall
allow Awards to Vest PROVIDED THAT any Vesting pursuant to this Rule 7.3 shall be conditional
upon the resolution being duly passed. If the resolution is defeated or withdrawn, the Award
shall be unaffected. If the Grantor allows Awards to Vest pursuant to this Rule 7.3, the
Participant shall be entitled to share in the assets of the Company with existing holders of
the Securities in the same manner as if the Securities had been registered in his name before
the resolution was passed.
	 
	7.4	 	Subject to Rules 3.3 and 3.4, if, in the opinion of the Grantor, the Company will be affected
by any demerger, dividend in specie, special dividend or other transaction which will
adversely affect the current or future value of any Award, the Grantor may depending on the
form of the Award, acting fairly, reasonably and objectively, allow all unvested Awards to
Vest on such event happening.
	 
	7.5	 	On the commencement of any liquidation of the Company (subject to Rule 7.3 and otherwise than
in connection with a compromise or arrangement as referred to in paragraph (b) of Rule 7.1)
the Award shall lapse.
	 
	7.6	 	If any company (“Acquiring Company”) obtains Control of the Company as a result of making an
offer referred to in Rule 7.1 or a compromise or arrangement referred to in Rule 7.1 any
Participant may, by agreement with the Acquiring Company, release any Award (“Old Award”) in
consideration of the grant to him of an Award (“New Award”) which is equivalent to the Old
Award except that it will be over securities in the Acquiring Company or some other company.
	 
	 	 	The Rules will apply to any New Award granted under this Rule 7.6 as if references to
Securities were references to securities over which the New Award is granted and references
to the Company were references to the company whose securities are subject to the New Award.
	 
	8.	 	VARIATIONS IN THE SHARE CAPITAL OF THE COMPANY
	 
	8.1	 	In the event of any variation of the share capital of the Company or a demerger, special
dividend or other similar event which affects the market price of Securities to a material
extent, the Grantor may

10

 

	 	 	make such adjustment as it considers appropriate to the number of Securities subject to any
Award and, in the case of an Option over Securities and subject to Rule 8.2, the Option
Price.
	 
	8.2	 	An adjustment under Rule 8.1 may have the effect of reducing the price at which Shares may be
subscribed for on the exercise of an Option to less than their nominal value, but only if and
to the extent that the Board is authorised:

	 	(a)	 	to capitalise from the reserves of the Company a sum equal to the amount by
which the nominal value of the Shares in respect of which the Option is exercised and
which are to be allotted after such exercise exceeds the price at which the Shares may
be subscribed for; and
	 
	 	(b)	 	to apply that sum in paying up such amount on such Shares

	 	 	so that on exercise of any Option in respect of which such a reduction shall have been made
the Board shall capitalise that sum (if any) and apply it in paying up that amount.
	 
	9.	 	ADMINISTRATION OF THE PLAN
	 
	9.1	 	The Plan shall be administered by the Trustees or the Committee as appropriate, whose
decision on any matter connected with the Plan shall be final and binding.
	 
	9.2	 	The Grantor shall determine any dispute about the rights and obligations of any person under
the Plan or any question concerning the construction or interpretation or effect of the Plan
or any other question in connection with the Plan and its determination shall be final,
binding and conclusive on all persons.
	 
	9.3	 	Where the Trustee is the Grantor, the Committee may from time to time make recommendations to
the Trustees with regard to the making of Awards, the choice of Participants, Performance
Conditions, Vesting Dates or Vesting Portions. The Trustees shall consider all such
recommendations but shall not be bound to follow such recommendations or be required to give
reasons for any refusal to follow them.
	 
	10.	 	AMENDMENT OF THE PLAN
	 
	10.1	 	Notwithstanding any other provision of the Plan but subject to Rule 10.2, the Grantor may at
any time and from time to time in its absolute discretion and without notice modify or amend,
in whole or in part, any or all of the provisions of this Plan or suspend or terminate the
Plan entirely, provided that no such modification or amendment may be made that would
materially adversely affect existing Awards, save in circumstances in which such amendment,
modification, suspension or termination is necessary to ensure the Group’s compliance with
prevailing legal and / or regulatory requirements.
	 
	10.2	 	[Except as described below, no alteration to the advantage of an individual to whom an Award
has been or may be granted shall be made under Rule 10.1 to the provisions concerning:

	 	(a)	 	eligibility;
	 
	 	(b)	 	the individual limits on participation;
	 
	 	(c)	 	the overall limits on the issue of Shares or the transfer of Shares out of
treasury;
	 
	 	(d)	 	the basis for determining a Participant’s entitlement to, and the terms of,
Securities or cash provided under the Plan;
	 
	 	(e)	 	the adjustments that may be made in the event of any variation of capital; and

11

 

	 	(f)	 	the terms of this Rule 10.2

	 	 	without the prior approval by ordinary resolution of the members of the Company in general
meeting PROVIDED THAT this shall not apply to any minor alteration to benefit the
administration of the Plan, to take account of a change in legislation or to obtain or
maintain favourable tax, exchange control or regulatory treatment for Participants or any
member of the Group.]5
	 
	11.	 	FORFEITABLE SECURITIES
	 
	 	 	On or before the grant of a Forfeitable Award, each Eligible Employee selected for such an
Award must enter into an agreement with the Company under the terms of which the Eligible
Employee agrees:
	 
	11.1	 	to have full beneficial ownership of the Securities;
	 
	11.2	 	unless the Grantor decides otherwise, to waive his right to all Coupons, cash and scrip
dividends on his Forfeitable Securities until Vesting;
	 
	11.3	 	that he will not assign, transfer, charge or otherwise dispose of any Forfeitable Securities
or any interest in them until Vesting save as otherwise required by the Plan;
	 
	11.4	 	if required by the Grantor, to enter into any elections under Part 7 of ITEPA and any
election to transfer or any agreement to pay secondary Class 1 National Insurance
Contributions (or their equivalents in any jurisdiction) in relation to his Forfeitable
Securities; and
	 
	11.5	 	to sign any documentation to give effect to the terms of the Forfeitable Award.
	 
	12.	 	CASH ALTERNATIVE
	 
	12.1	 	Where a Conditional Award or a Provisional Allocation Vests or where an Option has been
exercised and Vested Securities have not yet been transferred to the Participant (or his
nominee account), the Grantor may determine that, instead of acquiring such number of Vested
Securities as the Grantor may decide (but in full and final satisfaction of his right (if any)
to acquire those Securities), he shall be paid by way of additional employment income a sum
equal to the cash equivalent (as defined in Rule 12.3) of that number of Securities in
accordance with the following provisions of this Rule 12.
	 
	12.2	 	Rule 12.1 shall not apply in relation to an Award made to a Participant in any jurisdiction
where the presence of Rule 12.1 would cause the grant of the Award to be unlawful or for it to
fall outside any applicable securities law exclusion or exemption or adverse tax or social
security contributions consequences for the Participant or any member of the Group as
determined by the Board provided that this Rule 12.2 shall apply only if its application would
prevent the occurrence of a consequence referred to in this Rule 12.2.
	 
	12.3	 	For the purpose of this Rule 12, the cash equivalent of a Security is:

	 	(a)	 	in the case of a Conditional Award or a Provisional Allocation, the market
value of a Security on the day when the Award Vests; and
	 
	 	(b)	 	in the case of an Option, the market value of a Security on the day when the
Option is exercised reduced by the Option Price in respect of that Security.

	 	 	Market value on any day shall be such value of a Security as the Grantor reasonably
determines.

 

			
	5	 	Provision subject to shareholder
approval at the 2011 AGM.

12

 

	12.4	 	As soon as reasonably practicable after the Grantor has determined under Rule 12.1 that a
Participant shall be paid a sum in substitution for his right (if any) to acquire any number
of Vested Securities the Company shall pay to him or procure the payment to him of that sum in
cash and if he has already paid the Company for those Securities, the Company shall return to
him the amount so paid by him
	 
	12.5	 	There shall be deducted from any payment under this Rule 12 such amounts (on account of tax
or similar liabilities) as may be required by law or as the Grantor may reasonably consider to
be necessary or desirable.
	 
	13.	 	GENERAL PROVISIONS
	 
	13.1	 	Terms of office or employment
	 
	 	 	The rights and obligations of any Participant under the terms of his office or employment
with any member of the Group shall not be affected by his participation in the Plan or any
right which he may have to participate in it. Participants shall waive any and all rights
to compensation or damages in consequence of the termination of the office of employment for
any reason whatsoever (and regardless of whether such termination is lawful or unlawful)
insofar as such rights arise or may arise from his ceasing to have rights under the Plan as
a result of such termination. Participation in the Plan shall not confer a right to
continued employment upon any individual who participates in it. The grant of any Award
under the Plan does not imply that any further Award will be granted nor that a Participant
has any right to receive any further Award. The terms of the Plan are separate from and do
not form a term of or any part of or create any obligations or rights pursuant to an
individual’s contract of employment
	 
	13.2	 	Tax and other similar liabilities
	 
	 	 	Any liability of a Participant to taxation or social security contributions or similar
liabilities in respect of an Award shall be for the account of the relevant Participant.
The Grantor may make an Award and the release of Securities under it conditional on the
Participant complying with arrangements specified by the Grantor for the payment of any
taxation, employees’ social security contributions or employer’s social security obligations
(including, without limitation, the deduction of taxation at source).
	 
	13.3	 	Notices
	 
	 	 	Any notice or other communication under or in connection with the Plan may be given by
personal delivery, electronically or by sending the same by post in the case of a company to
its registered office, in the case of the Trustees, to their registered office, in the case
of the Committee, to the registered office of the Company and in the case of an individual
to his last known address, or, where he is a director or employee of any member of the
Group, either to his last known address or to the address of the place of business at which
he performs the whole or substantially the whole of the duties of his office or employment.
Where a notice or other communication is given by first-class post, it shall be deemed to
have been received 48 hours after it was put into the post properly addressed and stamped.
	 
	13.4	 	Data Protection provisions

	 	(a)	 	The Company and the Trustees will store and process information about a
Participant on their computers and in other ways. By “information about a Participant”
the Company and the Trustees mean personal information they have obtained from the
Participant, the Employer and any other Group companies or other organisations in
anticipation of a Participant’s participation in the Plan and during the term of the
Plan.
	 
	 	(b)	 	The Company and the Trustees will use information about a Participant to manage
and administer the Plan, give the Participant information about the Plan and his Award,
to

13

 

	 	 	 	develop and improve their services to the Participant and other customers and to
protect their interests. The Trustees agree to apply the same levels of protection
to information about a Participant as the Company is required to in the UK.
	 
	 	(c)	 	The Company and the Trustees may give information about a Participant and his
participation in the Plan to the following:

	 	(i)	 	a Participant’s Employer and it agents or service providers
where disclosure is necessary to enable the Company or the Trustees to
discharge their duties and obligations in the management and administration of
the Plan (including any disclosure of information as may be necessary to enable
the Employer to comply with the requirements of any relevant tax, social
security or other governmental authority). (For the purposes of this Rule
“Employer” includes any company or other entity of the Group who may become the
Participant’s employer during the term of the Plan and any other company or
entity which has a duty to comply with any requirements imposed by any relevant
tax, social security or other governmental authority in connection with his
participation in the Plan.)
	 
	 	(ii)	 	people who provide a service to the Company or the Trustees or
are acting as their agents on the understanding that they will keep the
information confidential.
	 
	 	(iii)	 	anyone to whom the Company or the Trustees transfer or may
transfer their rights and duties under the Plan.
	 
	 	(iv)	 	where the Company or the Trustees have a duty to do so or if
the law allows the Company or the Trustees to do so (including any relevant
tax, social security or other governmental authority)

	 	 	 	Otherwise the Company and the Trustees will keep information about a Participant
confidential.
	 
	 	(d)	 	If the Company or the Trustees transfer information about a Participant to a
service provider or agent in another country, they will procure that the service
provider or agent agrees to apply the same levels of protection as the Company and the
Trustees are required to apply in the UK and other EU jurisdictions and to use
information about a Participant only for the purpose of providing the service to the
Company or the Trustees.

	13.5	 	Severability of Provisions
	 
	 	 	If any provision in this Plan is for any reason held by any Court or other competent
authority of any jurisdiction to be illegal, invalid or unenforceable in whole or in part,
the remaining provisions of this Plan shall continue to be valid and, if appropriate, the
affected provision and the legality, validity or enforceability of such provision in any
other jurisdiction shall be unaffected.
	 
	13.6	 	Third Parties
	 
	 	 	No third party has any right under the Contracts (Rights of Third Parties) Act 1999 to
enforce any term of the Plan.
	 
	13.7	 	Awards not Pensionable
	 
	 	 	Awards, Securities and any other benefits provided under the Plan shall not be pensionable.

14

 

	13.8	 	Governing Law
	 
	 	 	This Plan shall be construed, administered and governed in all respects under and by the law
of England and Wales and the Courts of England and Wales have exclusive jurisdiction to hear
any dispute.

15

 

SCHEDULE 1

SPECIAL PROVISIONS SCHEDULE

The Special Provisions Schedule takes effect as if the Rules were set out in it incorporating the
following modifications.

Words or phrases in this Schedule 1 shall have the same meaning as in Rule 1.1 except as provided
below. Except as noted in this Schedule 1, the Rules apply to Awards granted under this Schedule
1.

	A.	 	AWARDS FOR NEW JOINERS
	 
	 	 	For Eligible Employees who are New Joiners and who are granted an Award under the Plan, the
Rules are modified by deleting Rule 6.3(e) and replacing it with the following:
	 
	 	 	“6.3 (e) any other reason as determined by the Grantor in its absolute discretion.”
	 
	 	 	For the purposes of this Schedule 1, “New Joiners” means any person who on the relevant Award
Date is an Eligible Employee by reason of his having commenced employment within the Group in
the six months (or such period as determined by the Grantor) preceding the Award Date and who is
determined to be a New Joiner by the Grantor.
	 
	B.	 	AWARDS TO OVERSEAS ELIGIBLE EMPLOYEES (NON-US)
	 
	1.	 	Brazil
	 
	 	 	For Eligible Employees resident in Brazil, the Rules are modified by the deletion of the
definition of “Award” in Rule 1.1 and its replacement with the following:
	 
	 	 	“Award” means a Provisional Allocation of Securities to Vest on the Vesting Dates applicable to
the Award or an Option to acquire Securities for no payment which shall become exercisable in
respect of each Vesting Portion on its applicable Vesting Date for a period of 90 days following
which any unexercised Vesting Portion shall lapse.”
	 
	2.	 	Spain
	 
	 	 	For Eligible Employees resident in Spain, the Rules are modified so that Rule 6.3(e) shall not
apply.
	 
	3.	 	Zambia
	 
	 	 	For Eligible Employees resident in Zambia, Rule 6 is modified by the addition of the following
new Rule 6.6:
	 
	 	 	“6.6 The Zambian Apportionment Act 1870 does not apply to any Award granted under the Plan”.
	 
	C.	 	UNITED STATES SPECIAL PROVISIONS6
	 
	 	 	The following shall apply for all US Participants who are Eligible Employees. Where a
Participant becomes a US Participant after the grant of an Award, such Award is modified in a
manner consistent with these provisions.
	 
	 	 	Notwithstanding anything in the Plan to the contrary, Awards granted to a US Participant shall
be subject to the following provisions, as applicable:

 

			
	6	 	No Awards in the form of nil-cost
Options over Securities or other Options over Capital Instruments shall be
granted to US Participants.

16

 

	(a)	 	The Award Letter provided for Conditional Awards and Awards otherwise subject to section 409A
of the United States Internal Revenue Code of 1988, as amended (“Section 409A”) shall include
the scheduled payment/settlement date(s) for such Award.
	 
	(b)	 	The grant of Dividend Shares and Coupon Equivalents shall not apply to Options.
	 
	(c)	 	Rule 3.3 (b) shall not apply unless the payment delay described in Rule 3.3(b) is legally
required under applicable law (within the meaning of US Treasury Regulation Section
1.409A-2(b)(7)(ii)) or the payment would otherwise would jeopardize the Company’s ability to
continue as a “going concern” (within the meaning of US Treasury Regulation Section
1.409A-3(d)).
	 
	(d)	 	Notwithstanding anything to the contrary in the Rules, payment/settlement with respect to
any:

	 	(i)	 	Provisional Allocation or other Award that is exempt from Section 409A or any Dividend
Shares or Coupon Equivalents shall be made no later than 21/2 months following the end of the
calendar year in which such Award or amount Vests; and
	 
	 	(ii)	 	Conditional Award or any other Award that is subject to Section 409A shall be
made as soon as practicable following the scheduled payment/settlement date but in no
event more than 30 days thereafter, except as otherwise permitted under Section 409A;
provided, however, that to the extent a Participant dies before the scheduled Vesting
Date(s), such Participant’s Awards shall be paid/settled as soon as practicable
following the date of death, but only to the extent then Vested.

	(e)	 	Notwithstanding anything in Rule 6.3 or Rule 7 to the contrary, in the case of a Conditional
Award or other Award that is subject to Section 409A, the provisions of Rule 6.3 or 7, as the
case maybe, may be invoked to accelerate the Vesting of such Award but not the payment or
settlement of such Award. Such Award shall be paid or settled on the originally-scheduled
payment/settlement date, unless otherwise permitted under Section 409A.
	 
	(f)	 	Adjustments made pursuant to Rule 8 with respect to any Award granted to a US Participant
shall be made in accordance with US Treasury Regulation Section 1.409A-1(b)(5).
	 
	(g)	 	To the extent that a Participant who has been granted an Option becomes subject to US
taxation and his Option is determined to have been granted with an option price less than
“fair market value” on the Award Date as defined in US Treasury Regulation Section
1.409A-1(b)(5), his Option shall be exercisable only as follows: (i) if the Option is Vested
in the year that the Participant becomes subject to US taxation, the Option shall be
exercisable only in the first calendar year after the year in which the Participant becomes
subject to US taxation; and (ii) if the Option is not Vested in the year that the Participant
becomes subject to US taxation, the Option shall be exercisable only in the first calendar
year after the year in which the substantial risk of forfeiture (within the meaning of Section
409A) lapses.
	 
	(h)	 	These provisions shall also apply to Cash Awards granted under Schedule 2 to the Plan to the
same extent that these provisions apply to other Conditional Awards, Provisional Allocations
or Options.
	 
	(i)	 	In the event that a Participant is a “specified employee” (within the meaning of US Treasury
Regulation Section 1.409A-1(i)) as of the date of the Participant’s “separation from service”
(within the meaning of US Treasury Regulation Section 1.409A-1(h)) and if any Award both (i)
constitutes a “deferral of compensation” within the meaning of Section 409A and (ii) cannot be
paid or provided in the manner otherwise provided without subjecting the Participant to
“additional tax”, interest or penalties under Section 409A, then, to the extent necessary to
avoid penalties under Section 409A, no Award that is a deferral of compensation shall be paid
or settled prior to the first day of the seventh month following the Participant’s separation
from service.

17

 

SCHEDULE 2

CASH AWARDS

The Rules of the Plan shall apply to a Cash Award granted or to be granted under this Schedule as
if it was a Conditional Award, an Option or a Provisional Allocation over Securities as determined
by the Grantor, except as set out in this Schedule. References in the Rules of the Plan to
Securities shall be read as references to a cash sum where the context so requires. Where there is
any conflict between the Rules and this Schedule, the terms of this Schedule shall prevail.

	(a)	 	The Grantor may grant or procure the grant of a Cash Award.
	 
	(b)	 	The Grantor shall determine the form of a Cash Award (Conditional Award, Option or
Provisional Allocation) on or before the Award Date of that Cash Award.
	 
	(c)	 	Each Cash Award shall relate to a given number of notional Securities.
	 
	(d)	 	On or as soon as reasonably practicable after the Vesting of a Cash Award structured as a
Conditional Award or a Provisional Allocation, the holder of that Award shall be entitled to a
cash sum which shall be equal to the “Cash Value” of the notional Vested Securities.
	 
	(e)	 	A Cash Award structured as an Option shall be exercisable in respect of notional Vested
Securities for a period determined by the Grantor at the Award Date in its absolute discretion
(being a period of no longer than 10 years from the Award Date) beginning with the date on
which the Cash Award Vests (unless it lapses earlier under Rule 6.4 or Rule 7). Following the
exercise of a Cash Award structured as an Option, the holder of that Award shall be entitled
to a cash sum which shall be equal to the “Cash Value” of the notional Vested Securities less
the Option Price (if any).
	 
	(f)	 	For the purposes of this Schedule:

	 	(i)	 	the Cash Value of a notional Security is the Market Value of a Security on the date of
Vesting of a Cash Award structured as a Conditional Award or a Provisional Allocation and on
the date of exercise of a Cash Award structured as an Option; and
	 
	 	(ii)	 	the Market Value of a Security on any day shall be determined in accordance with Rule
12.3.

	(g)	 	Any cash sum payable under paragraphs (d) or (e) above shall be paid by the Employer as soon as
practicable after the Vesting of the Cash Award under paragraph (d) or its exercise under paragraph
(e), net of any deductions (on account of any tax or social security or similar liabilities) as may
be required by law.
	 
	(h)	 	For the avoidance of doubt, a Cash Award shall not confer any right on the holder of such an
Award to receive Securities or any interest in Securities.

18

 

SCHEDULE 3

CONTINGENT CAPITAL AWARDS

DEFINITIONS AND INTERPRETATION

	1.1	 	In this Schedule, unless the context otherwise requires:

	 	 	“Adoption Date” means 14 March 2011 being the date on which this Schedule was adopted by the
Committee;

	 	 	“Award” means a Conditional Award or a Provisional Allocation of cash to be paid on the
Payment Dates applicable to the Award (or any other form of delivery as determined by the
Committee, including but not limited to the grant of an award of the Company’s shares under
any employee share scheme operated by a member of the Group the terms of which are not
included in this Schedule by reference);

	 	 	“Award Date” means in relation to an Award the date specified as such by the Committee in
the Award Letter;

	 	 	“Award Letter” means a letter containing the information specified in Rule 2.2 in such form
as may be prescribed from time to time by the Committee provided to a Participant informing
the Participant of the grant of an Award to him;

	 	 	“Board” means the board of directors for the time being of the Company or a duly authorised
committee of the Board or a duly authorised person;

	 	 	“Capital Condition” means a condition related to the Barclays Group Core Tier 1 capital
ratio or another condition relating to capital as determined by the Committee from time to
time and as specified by the Committee under Rule 2.2;

	 	 	“Capital Threshold” means the Barclays Group Core Tier 1 capital ratio threshold, or such
other appropriate capital threshold, specified by the Committee on or before the Award Date;

	 	 	“Committee” means the remuneration committee for the time being of the Board (or a duly
authorised committee thereof or person or persons duly authorised by the remuneration
committee to exercise any of its powers or duties under this Schedule) empowered to act on
behalf of the Company for all purposes in connection with this Schedule or, if there is no
such committee in existence at the relevant time, the Board, save that, should any person
obtain Control of the Company, the Committee shall mean the members of the Committee
immediately before such Control is obtained;

	 	 	“Company” means Barclays PLC (registered no. 48839);

	 	 	“Conditional Award” means a conditional right to receive a cash sum granted under this
Schedule;

	 	 	“Control” means control within the meaning of section 995 of the Income Tax Act 2007;

	 	 	“Core Tier 1 capital ratio” means the Barclays Group Core Tier 1 capital ratio calculated in
accordance with the prevailing regulatory requirements as derived from the most recent
annual or half-year results published by the Company;

	 	 	“Coupon” means an amount (expressed as a percentage or otherwise) that may be awarded over
all or any part of the Vesting Period and which may be added to a Payment Amount on a
Payment Date as determined by the Committee PROVIDED THAT the Committee may in its absolute
discretion vary the Coupon at any time during the Vesting Period if such variation will not,
in the Committee’s reasonable opinion, materially adversely affect an Award;

19

 

	 	 	“Eligible Employee” means any person who is an employee or former employee of any member of
the Group [(including an executive director of the Company)]7 and who is
deemed to be eligible to participate by the Committee;

	 	 	“Employer” means the employing company of an Eligible Employee or a Participant, as the
context so requires;

	 	 	“Group” means the Company and all of its Subsidiaries and the expression “member of the
Group” shall be construed accordingly;

	 	 	“Participant” means an Eligible Employee who has been granted an Award or, where applicable,
his personal representative;

	 	 	“Participating Companies” means the Company and other members of the Group which have been
nominated by the Committee to participate in this Schedule;

	 	 	“Payment Amount” means such percentage of the cash (or any other form of delivery as
determined by the Committee) subject to an Award as may be payable on or around any Payment
Date and “payable” means in relation to:

	 	(a)	 	a provisional allocation, the Committee determining in its absolute discretion that the
Payment Amount shall be paid to the Participant; and

	 	(b)	 	a conditional award, a Participant becoming entitled to have a Payment Amount
paid to him;

	 	 	“Payment Date” means such date as the Committee shall in its absolute discretion determine
in relation to a Payment Amount under an Award as set out in the Award Letter;

	 	 	“Performance Condition” means a condition related to performance which is specified by the
Committee under Rule 2.2;

	 	 	“Provisional Allocation” means a provisional award of cash which does not constitute the
acquisition by a Participant of an interest in the cash awarded to him or the acquisition of
a right to that cash;

	 	 	“Risk Committee” means the Barclays Group Risk Committee (or a duly authorised committee
thereof or a duly authorised person);

	 	 	“Rules” means the rules of this Schedule as set out in this Schedule and Rule shall be
construed accordingly;

	 	 	“Schedule” means the Barclays Contingent Capital Award Schedule as constituted by this
Schedule and as amended from time to time in accordance with the provisions hereof;

	 	 	“Special Provisions Appendix” means the appendix to this Schedule;

	 	 	“Subsidiary” means any company which is a subsidiary of the Company within the meaning of
section 1159 of the Companies Act 2006;

	 	 	“US Participant” means a Participant who (i) is resident in, or a citizen or green card
holder of, the United States of America on the Award Date, (ii) is otherwise subject to US
taxation on the Award Date or (iii) becomes subject to US taxation prior to exercise or
Vesting of an Award;

 

			
	7	 	Provision subject to shareholder
approval at the 2011 AGM; no grants to executive directors may be made before
shareholder approval is obtained.

20

 

	 	 	“Vesting Period” means the period from the Award Date to the final Payment Date specified in
the Award Letter.

	1.2	 	Any reference in this Schedule to a statutory provision shall include a reference to that
provision as amended or re-enacted from time to time. Where the context permits the singular
shall include the plural and vice versa and the masculine gender shall include the feminine.

	2.	 	GRANT OF AWARDS

	2.1	 	Subject to the limitations specified in this Rule 2, the Committee may in its absolute
discretion grant any Eligible Employee an Award in accordance with the Rules and if relevant
modified by the Special Provisions Appendix and on such additional terms as the Committee or
the Employer may specify at the time of grant. For the avoidance of doubt, an Award may not
be granted to a person who is not an Eligible Employee.

	2.2	 	The Committee shall as soon as reasonably practicable on or after the Award Date notify the
Eligible Employee of the grant of the Award in writing in an Award Letter. The Award Letter
shall specify (without limitation):

	 	(a)	 	the amount in respect of which the Award is granted;

	 	(b)	 	the Award Date;

	 	(c)	 	whether the Award is subject to any Performance Condition(s);

	 	(d)	 	the Capital Condition (being the condition set out in Rule 3.5 or such other
Capital Condition as the Committee may specify in the Award Letter);

	 	(e)	 	whether a Coupon may be awarded over the Vesting Period and at what rate;

	 	(f)	 	details of the applicable Payment Date(s) and Payment Amount(s); and

	 	(g)	 	the currency in which each Payment Amount will be paid.

	2.3	 	There shall be no consideration payable for the grant of an Award.

	2.4	 	The grant of any Award shall be subject to obtaining any approval or consent required under
any relevant UK or overseas regulation or enactment.

	2.5	 	Awards may be granted at any time when the Company is not subject to any restrictions on the
granting of Awards.

	2.6	 	Any Award granted to a Participant is personal to him and shall not be capable of being
transferred or otherwise disposed of by a Participant. Any such Award shall lapse immediately
if it is so transferred, purported to be transferred or otherwise disposed of or if the
Participant is adjudged bankrupt.

	3.	 	PAYMENT

	3.1	 	Subject to the remainder of Rule 3 and Rules 6 and 7 and to the satisfaction of any
Performance Condition attaching to an Award, to the extent that the Payment Amount has become
payable on the relevant Payment Date, the Employer shall pay the Payment Amount and any Coupon
(if applicable) to the Participant in accordance with Rule 4 on or as soon as reasonably
practicable after that Payment Date.

	3.2	 	Subject to Rules 3.3, 3.4, 3.5 and 6 and to the satisfaction of any Performance Condition
attaching to an Award, if on any Payment Date the Participant is not an employee of the Group,
the

21

 

	 	 	Committee may in its absolute discretion determine that the Employer shall pay to the
Participant in accordance with Rule 4:

	 	(a)	 	the Payment Amount and any Coupon (if applicable) available for payment on or
after the Payment Date; or
	 
	 	(b)	 	a lesser amount of such Payment Amount and/or a lesser amount of such Coupon;
or
	 
	 	(c)	 	no Payment Amount at all and/or no Coupon at all.

	3.3	 	Notwithstanding any other provision of this Schedule, and irrespective of whether any
Performance Condition attached to an Award has been satisfied, if the Committee determines in
its absolute discretion that the underlying financial health of the Group has significantly
deteriorated over the whole or any part of the Vesting Period, such that there are severe
constraints on the Group which preclude or limit the Group’s ability to facilitate the funding
of Awards then:

	 	(a)	 	the Committee may at its absolute discretion determine that any Payment Amount
and/or Coupon (or part thereof) that may otherwise be payable may be limited, reduced
and/or made subject to any other condition as the Committee considers at its absolute
discretion appropriate;
	 
	 	(b)	 	in the absence of any determination by the Committee under Rule 3.3 (a), the
payment of any Payment Amount and/or Coupon that may otherwise be payable (including
any part which was not paid as the result of the exercise of discretion by the
Committee under Rule 3.3(a)) shall be suspended until such time as the Committee lifts
such suspension or exercises its discretion under Rule 3.3(a) PROVIDED THAT to the
extent that the Committee has not lifted such suspension or exercised its discretion
under Rule 3.3(a) within 3 years from the date specified at the Award Date as the final
Payment Date of an Award which remains outstanding and in respect of which payment of
any part of a Payment Amount and/or Coupon remains suspended under this Rule 3.3(b),
all such Payment Amounts and/or Coupons shall be forfeited and lapse in their entirety,
unless the Committee, in exceptional circumstances, determines otherwise; and
	 
	 	(c)	 	the Committee may at its absolute discretion determine that any Payment Amount
and/or Coupon (or part thereof) that may otherwise be payable may be limited or reduced
if the Core Tier 1 capital ratio falls or has fallen below the relevant Capital
Threshold. Any such limitation or reduction shall take account of the impact on the
shareholders of the Company of any action taken by the Group to increase the Core Tier
1 capital ratio to above such Capital Threshold.

	3.4	 	Notwithstanding any other provision of this Schedule, and irrespective of whether any
Performance Condition attached to an Award has been satisfied, the Committee may, in its
absolute discretion, determine that any Payment Amount and/or Coupon (or part thereof) may be
reduced (to nil if appropriate) as a result of:

	 	(a)	 	the Group or any Subsidiary’s financial statements having been materially
restated at any time during the Vesting Period other than restatement due to a change
in accounting policy or to rectify a minor error;
	 
	 	(b)	 	the Participant having, in the reasonable opinion of the Committee, following
consultation with his Employer, deliberately misled the management of the Company, the
market and/or the Company’s shareholders regarding the financial performance of the
Group or of any Subsidiary at any time during the Vesting Period;

22

 

	 	(c)	 	the Participant’s actions at any time during the Vesting Period having, in the
reasonable opinion of the Committee, following consultation with his Employer, caused
harm to the reputation of the Group and/or the Participant’s business unit;

	 	(d)	 	the Participant’s actions at any time during the Vesting Period having, in the
reasonable opinion of the Committee, following consultation with his Employer, amounted
to serious misconduct; or

	 	(e)	 	the Group or the business in which the Participants is employed having, in the
reasonable opinion of the Committee, following consultation with the Risk Committee,
suffered a material failure of risk management.

	3.5	 	Notwithstanding any other provision of this Schedule, and irrespective of whether any
Performance Condition attached to an Award has been satisfied, if immediately before a Payment
Date the Core Tier 1 capital ratio has:

	 	(a)	 	fallen below the Capital Threshold; or

	 	(b)	 	would fall below the Capital Threshold if the Payment Amount and/or the associated Coupon
payable on that Payment Date were paid,

	 	 	then all outstanding Payment Amounts that may otherwise be or become payable shall be
suspended until such time as the Committee determines otherwise PROVIDED THAT the Committee
may only lift such suspension at a time when the Core Tier 1 capital ratio is at least equal
to the Capital Threshold and would not fall below such Capital Threshold as a result of the
payment of any such Payment Amount. In determining that any Payment Amounts should be paid
following the lifting of such suspension, the Committee shall pay due regard to Rule 3.3(c).
To the extent that any Payment Amounts remain suspended under this Rule 3.5 following
publication of the annual report following the fifth anniversary of the date of suspension,
then all such suspended Payment Amounts shall be forfeited and lapse in their entirety.

	 	 	If any Award or part of an Award is suspended in accordance with this Rule 3.5, then the
Coupon (if any) in respect of that Award shall lapse in full at the time of such suspension.

	4.	 	MANNER OF PAYMENT

	4.1	 	When Payment Amounts become payable pursuant to Rules 3, 6 or 7, the Employer shall as
soon as reasonably practicable after the relevant Payment Date pay to a Participant the amount
of cash available for payment under the Award determined in accordance with Rules 3, 6 and 7
and shall inform the Participant of the payment of cash to him within 28 days of such payment
PROVIDED THAT any cash which is not so paid shall cease to be available for payment.

	4.2	 	All Payment Amounts and Coupons shall, where applicable, be subject to deduction of tax and
employees’ social security contributions or other tax withholding which may be required by law
in any jurisdiction or which the Committee and/or the Employer reasonably considers to be
necessary or desirable.

	5.	 	LIMITATION ON PAYMENT

	 	 	Subject to Rules 3, 6 and 7, Payment Amounts may be paid to a Participant who has ceased to
be an Eligible Employee.

	6.	 	PAYMENT AFTER CESSATION OF EMPLOYMENT

	6.1	 	Subject to Rules 3.3, 3.4 and 3.5 and unless a Payment Amount may be paid before its Payment
Date under Rules 6.2, 6.3, 6.4 and 7, a Payment Amount may only be paid on or as soon as

23

 

	 	 	reasonably practicable after its Payment Date. Any Payment Amount which is not so paid
shall lapse.

	6.2	 	Subject to Rules 3.3, 3.4 and 3.5, if a Participant dies his Award (provided it is not a
Provisional Allocation) shall, unless the Committee decides otherwise in exceptional
circumstances, become payable on the earlier of its applicable Payment Date and the date on
which the Committee is notified of the death in accordance with Rule 4. In the case of a
Provisional Allocation, the Committee shall, in its absolute discretion, decide whether the
Award should become payable.

	6.3	 	Subject to Rules 3.3, 3.4 and 3.5, if a Participant ceases to be employed by the Group by
reason of:

	 	(a)	 	injury;
	 
	 	(b)	 	disability;
	 
	 	(c)	 	ill health;
	 
	 	(d)	 	redundancy;
	 
	 	(e)	 	retirement with the agreement of his Employer;
	 
	 	(f)	 	the company by which he is employed ceasing to be a member of the Group or the undertaking
in which he is employed being transferred to a transferee which is not a member of the Group;
	 
	 	(g)	 	his Employer terminating his employment, other than in circumstances which, in
the reasonable opinion of the Committee, amount to gross misconduct or dismissal for
cause

	 	 	his Award (provided it is not a Provisional Allocation) shall, unless the Committee decides
otherwise in exceptional circumstances, become payable on the applicable Payment Date for
each Payment Amount as set out in the Award Letter and in accordance with Rule 4 PROVIDED
THAT if a Participant ceases to be employed by the Group before the Payment Date of any
Payment Amount the Committee may allow such unpaid Payment Amounts as the Committee so
decides to become payable on the date of such cessation. In the case of a Provisional
Allocation, the Committee shall, in its absolute discretion, decide whether each Payment
Amount should become payable. Any Payment Amount which does not become payable shall lapse.

	6.4	 	Subject to Rules 3.3, 3.4 and 3.5, if a Participant ceases to be employed by the Group due to
resignation, dismissal for cause or gross misconduct or for any reason other than one of the
events specified in Rules 6.2 or 6.3, his Award shall lapse unless the Committee in its
absolute discretion in exceptional circumstances determines otherwise in which case the
Committee may determine that unpaid Payment Amounts shall be paid to the Participant on or
after the applicable Payment Date for each Payment Amount as set out in the Award Letter and
in accordance with Rule 4 PROVIDED THAT if a Participant ceases to be employed by the Group
before the Payment Date for any Payment Amount, the Committee may in its absolute discretion
determine that any unpaid Payment Amounts as the Committee so determines shall be paid to the
Participant as soon as reasonably practicable after the date of such cessation. Any Payment
Amount which is not so paid shall lapse.

	6.5	 	For the purposes of this Rule 6, a Participant shall be deemed to have ceased to be employed
by a member of the Group on the day on which his employment terminates, unless the Committee
decides otherwise in its absolute discretion.

	7.	 	TAKE-OVER AND LIQUIDATION

	7.1	 	Rule 7.2 shall apply if:

24

 

	 	(a)	 	any person obtains Control of the Company as a result of making:

	 	(i)	 	a general offer to acquire the whole of the issued share
capital of the Company (other than that which is already owned by such person)
made on a condition such that if it is satisfied the person making the offer
will have Control of the Company; or
	 
	 	(ii)	 	a general offer to acquire all the Company’s ordinary shares
(or such of those shares as are not already owned by such person); or

	 	(b)	 	under section 899 of the Companies Act 2006 the Court sanctions a compromise or
arrangement between the Company and its creditors or its members which, if it becomes
effective, will result in a person obtaining Control of the Company.

	7.2	 	Subject to Rules 3.3, 3.4 and 3.5, the Committee shall have absolute discretion to determine
whether:

	 	(a)	 	any Performance Condition should be waived or deemed to be satisfied; and/or

	 	(b)	 	any Payment Amounts and any Coupons (if applicable) should be paid out to
Participants early; and/or

	 	(c)	 	Awards should continue in the same or a revised form following the change of
Control.

	8.	 	ADMINISTRATION OF THIS SCHEDULE
	 
	8.1	 	This Schedule shall be administered by the Committee whose decision on any matter connected
with this Schedule shall be final and binding.

	8.2	 	The Committee shall determine any dispute about the rights and obligations of any person
under this Schedule or any question concerning the construction or interpretation or effect of
this Schedule or any other question in connection with this Schedule and its determination
shall be final, binding and conclusive on all persons

	9.	 	AMENDMENT OF THIS SCHEDULE

	9.1	 	Notwithstanding any other provision of this Schedule, the Committee may at any time and from
time to time in its absolute discretion and without notice modify or amend, in whole or in
part, any or all of the provisions of this Schedule or suspend or terminate this Schedule
entirely, provided that no such modification or amendment may be made that would materially
adversely affect existing Awards in particular in respect of Payment Dates, Payment Amounts,
Coupons, Performance Conditions and the method of delivery of Awards, save in circumstances in
which such amendment, modification, suspension or termination is necessary to ensure the
Group’s compliance with prevailing legal and/or regulatory requirements.

	9.2	 	[Except as described below, no alteration to the advantage of an individual to whom an Award
has been or may be granted shall be made under Rule 9.1 to the provisions concerning:

	 	(a)	 	eligibility;
	 
	 	(b)	 	the individual limits on participation;
	 
	 	(c)	 	the overall limits on the payment of cash;
	 
	 	(d)	 	the basis for determining a Participant’s entitlement to, and the terms of,
cash provided under the Plan; and

25

 

	 	(e)	 	the terms of this Rule 9.2
	 
	 	without the prior approval by ordinary resolution of the members of the Company in general
meeting PROVIDED THAT this shall not apply to any minor alteration to benefit the
administration of this Schedule, to take account of a change in legislation or to obtain or
maintain favourable tax, exchange control or regulatory treatment for Participants or any
member of the Group.]8

	10.	 	GENERAL PROVISIONS
	 
	10.1	 	Terms of office or employment
	 
	 	 	The rights and obligations of any Participant under the terms of his office or employment
with any member of the Group shall not be affected by his participation in this Schedule or
any right which he may have to participate in it. Participants shall waive any and all
rights to compensation or damages in consequence of the termination of the office of
employment for any reason whatsoever (and regardless of whether such termination is lawful
or unlawful) insofar as such rights arise or may arise from his ceasing to have rights under
this Schedule as a result of such termination. Participation in this Schedule shall not
confer a right to continued employment upon any individual who participates in it. The
grant of any Award under this Schedule does not imply that any further Award will be granted
nor that a Participant has any right to receive any further Award. The terms of this
Schedule are separate from and do not form a term of or any part of or create any
obligations or rights pursuant to an individual’s contract of employment.
	 
	10.2	 	Tax and other similar liabilities
	 
	 	 	Any liability of a Participant to taxation or social security contributions or similar
liabilities in respect of an Award shall be for the account of the relevant Participant.
The Committee may make an Award and the payment of cash under it conditional on the
Participant complying with arrangements specified by the Committee for the payment of any
taxation, employees’ social security contributions or employer’s social security obligations
(including, without limitation, the deduction of taxation at source).
	 
	10.3	 	Notices
	 
	 	 	Any notice or other communication under or in connection with this Schedule may be given by
personal delivery, electronically or by sending the same by post in the case of a company to
its registered office and in the case of an individual to his last known address, or, where
he is a director or employee of any member of the Group, either to his last known address or
to the address of the place of business at which he performs the whole or substantially the
whole of the duties of his office or employment. Where a notice or other communication is
given by first class post, it shall be deemed to have been received 48 hours after it was
put into the post properly addressed and stamped.

	10.4	 	Data Protection provisions

	 	(a)	 	The Company will store and process information about a Participant on its
computers and in other ways. By “information about a Participant” the Company means
personal information it has obtained from the Participant, the Employer and any other
Group companies or other organisations in anticipation of a Participant’s participation
in this Schedule and during the term of this Schedule.
	 
	 	(b)	 	The Company will use information about a Participant to manage and administer
this Schedule, give the Participant information about this Schedule and his Award, to
develop and improve their services to the Participant and to protect their interests.

 

			
	8	 	Provision subject to shareholder
approval at the 2011 AGM

26

 

	 	(c)	 	The Company may give information about a Participant and his participation in
this Schedule to the following:

	 	(i)	 	a Participant’s Employer and it agents or service providers
where disclosure is necessary to enable the Company to discharge its duties and
obligations in the management and administration of this Schedule (including
any disclosure of information as may be necessary to enable the Employer to
comply with the requirements of any relevant tax, social security or other
governmental authority). (For the purposes of this Rule “Employer” includes
any company or other entity of the Group who may become the Participant’s
employer during the term of this Schedule and any other company or entity which
has a duty to comply with any requirements imposed by any relevant tax, social
security or other governmental authority in connection with his participation
in this Schedule.)
	 
	 	(ii)	 	people who provide a service to the Company or are acting as
their agents on the understanding that they will keep the information
confidential.
	 
	 	(iii)	 	anyone to whom the Company transfers or may transfer its
rights and duties under this Schedule.
	 
	 	(iv)	 	where the Company has a duty to do so or if the law allows the
Company to do so (including any relevant tax, social security or other
governmental authority)

	 	 	 	Otherwise the Company will keep information about a Participant confidential.

	 	(d)	 	If the Company transfers information about a Participant to a service provider
or agent in another country, it will procure that the service provider or agent agrees
to apply the same levels of protection as the Company is required to apply in the UK
and other EU jurisdictions and to use information about a Participant only for the
purpose of providing the service to the Company.

	10.5	 	Severability of Provisions
	 
	 	 	If any provision in this Schedule is for any reason held by any Court or other competent
authority of any jurisdiction to be illegal, invalid or unenforceable in whole or in part,
the remaining provisions of this Schedule shall continue to be valid and, if appropriate,
the affected provision and the legality, validity or enforceability of such provision in any
other jurisdiction shall be unaffected.
	 
	10.6	 	Third Parties
	 
	 	 	No third party has any right under the Contracts (Rights of Third Parties) Act 1999 to
enforce any term of this Schedule.
	 
	10.7	 	Awards not Pensionable
	 
	 	 	Awards, payments of cash and any other benefits provided under this Schedule shall not be
pensionable.
	 
	10.8	 	Governing Law
	 
	 	 	This Schedule shall be construed, administered and governed in all respects under and by the
law of England and Wales and the Courts of England and Wales have exclusive jurisdiction to
hear any dispute.

27

 

SPECIAL PROVISIONS APPENDIX

	 	 	The Special Provisions Appendix takes effect as if the Rules of this Schedule 3 were set out in it
incorporating the following modifications:

	1.	 	Awards to New Joiners

	 	 	For Eligible Employees who are New Joiners and who are granted an Award under Schedule 3, the
Rules are modified by deleting sub clause 6.3 (g) and replacing it with the following:

	 	 	“6.3 (g) any other reason as determined by the Committee in its absolute discretion.”

	 	 	For the purposes of this Special Provisions Appendix, “New Joiners” means any person who on the
relevant Award Date is an Eligible Employee by reason of his having commenced employment within
the Group in the six months (or such period as determined by the Committee) preceding the Award
Date and who is determined to be a New Joiner by the Committee.

	2.	 	Spain

	 	 	For Eligible Employees resident in Spain, the Rules are modified so that Rule 6.3(g) shall not
apply.

	3.	 	Zambia

	 	 	For Eligible Employees resident in Zambia, Rule 6 is modified by the addition of the following
new Rule 6.6:

	 	 	“6.6 The Zambian Apportionment Act 1870 does not apply to any Award granted under this
Schedule”.

	4.	 	USA

	 	 	The following shall apply for all US Participants who are Eligible Employees. Where a
Participant becomes a US Participant after the grant of an Award, such Award is modified in a
manner consistent with this Appendix.

	 	 	Notwithstanding anything in this Schedule 3 to the contrary, Awards granted to US Participants
shall be subject to the following provisions, as applicable:

	 	(a)	 	Rule 3.3(b) shall not apply, unless the payment delay described in Rule 3.3(b) is
legally required under applicable law (within the meaning of US Treasury Regulation Section
1.409A-2(b)(7)(ii)) or the payment would otherwise would jeopardize the Company’s ability
to continue as a “going concern” (within the meaning of US Treasury Regulation Section
1.409A-3(d)).

	 	(b)	 	The proviso under Rule 6.3 shall not apply.

	 	(c)	 	The proviso under Rule 6.4 shall not apply.

	 	(d)	 	The Awards under this Appendix are intended to be exempt from Section 409A of the US
Internal Revenue Code of 1986, as amended. However, in the event that a Participant is a
“specified employee” (within the meaning of Treasury Regulations §1.409A-1(i)) as of the
date of the Participant’s “separation from service” (within the meaning of Treasury
Regulations §1.409A-1(h)) and if any Award both (i) constitutes a “deferral of
compensation” within the meaning of Section 409A and (ii) cannot be paid or provided in the
manner otherwise provided without subjecting the Participant to “additional tax”, interest
or penalties under Section 409A, then, to the extent necessary to avoid penalties under
Section 409A, no Award that is a deferral of compensation shall be paid or settled prior to
the first day of the seventh month following the Participant’s separation from service.

28exv4w3

Exhibit 4.3

Barclays PLC

Rules of the Executive Share Award Scheme

 

 

INDEX

Rules of the Executive Share Award Scheme

	 	 	 	 	 	 	 

	1.

	 	Definitions and Interpretation
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	Grant of Awards and Options
	 	 	3	 
	 
	 	 	 	 	 	 
	3.

	 	Awards and Options
	 	 	4	 
	 
	 	 	 	 	 	 
	4.

	 	Dividends
	 	 	4	 
	 
	 	 	 	 	 	 
	5.

	 	Grant of Mandatory ESAS Option
	 	 	4	 
	 
	 	 	 	 	 	 
	6.

	 	Manner of Exercise of an Option and Rights of Participants
	 	 	5	 
	 
	 	 	 	 	 	 
	7.

	 	Release of Shares on the Release Date
	 	 	5	 
	 
	 	 	 	 	 	 
	8.

	 	Manner of Release of Shares and Rights of Participants on Release
	 	 	6	 
	 
	 	 	 	 	 	 
	9.

	 	Further Conditions of Release and Waiver of Conditions
	 	 	7	 
	 
	 	 	 	 	 	 
	10.

	 	Cessation of Employment of Participant
	 	 	7	 
	 
	 	 	 	 	 	 
	11.

	 	Takeover, Reconstruction and Winding-up of Barclays
	 	 	8	 
	 
	 	 	 	 	 	 
	12.

	 	Variation of Capital
	 	 	8	 
	 
	 	 	 	 	 	 
	13.

	 	Administration of the Scheme
	 	 	8	 
	 
	 	 	 	 	 	 
	14.

	 	Amendment of the Scheme
	 	 	8	 
	 
	 	 	 	 	 	 
	15.

	 	Termination of the Scheme
	 	 	9	 
	 
	 	 	 	 	 	 
	16.

	 	General Provisions
	 	 	9	 
	 
	 	 	 	 	 	 
	Appendix 1	 	 	11	 
	 
	 	 	 	 	 	 
	 

	 	Mandatory ESAS Option Deed
	 	 	11	 
	 
	 	 	 	 	 	 
	Appendix 2	 	 	19	 
	 
	 	 	 	 	 	 
	 

	 	Voluntary ESAS Option Deed
	 	 	19	 

 

 

Barclays PLC

Rules of the Executive Share Award Scheme

	 	 	The following rules shall apply in relation to payments or applications of the Trust Fund in
accordance with clause 2 of the Trust Deed.
	 
	1.	 	Definitions and Interpretation
	 
	1.1	 	In the Scheme:
	 
	 	 	“Adoption Date” means 24 March 1994;
	 
	 	 	“Auditors” means the auditors for the time being of Barclays PLC or such other independent
suitably qualified person as the Trustee may from time to time nominate;
	 
	 	 	“Award” means a provisional allocation of Shares including any Bonus Shares made by the
Trustee as described in clause 2.4 of the Trust Deed in accordance with paragraph 2 and
‘awarded’ shall be construed accordingly;
	 
	 	 	“Award Date” means the date specified as the award date in the Award Letter by the Trustee,
after consultation between the Trustee and the Board;
	 
	 	 	“Award Letter” means the letter in such form as may be prescribed from time to time by the
Trustee sent by the Trustee to a Participant informing the Participant of the grant of
an Award to him;
	 
	 	 	“Barclays” means Barclays PLC, registered in England No.48839;
	 
	 	 	“Board” means the board of directors for the time being of Barclays or a duly appointed
committee thereof PROVIDED THAT if any person obtains Control of Barclays the Board or
relevant committee as appropriate shall mean the members of the Board or such committee
as the case may be immediately before such Control is obtained;
	 
	 	 	“Bonus Shares” means such number of Shares described as Bonus Shares in the Award Letter;
	 
	 	 	“Company” means Barclays Bank PLC, registered in England No.1026167;
	 
	 	 	“Companies Act” means the Companies Act 1985;
	 
	 	 	“Control” means the control of a company within the meaning of section 840 of the Taxes Act
and a person shall be deemed to have control of a company if he and others acting in
concert with him have together obtained control of a company within such meaning;
	 
	 	 	“Eligible Employee” means any person who is a Beneficiary as defined in the Trust Deed;
	 
	 	 	“Grant Date” means any date specified in an Award Letter following which a Mandatory ESAS
Option may be granted to a Participant or such other date as may be specified by the
Trustee from time to time;
	 
	 	 	“Group” means Barclays, the Company and all of the Subsidiaries and “member of the Group”
shall be construed accordingly;

 

 

	 	 	“Mandatory ESAS Option” means a Nil Cost Option granted to an Eligible Employee at the
discretion of the Trustee after consultation with the Board on the third anniversary of
an Award (or on such other date as may be specified from time to time by the Trustee)
by deed on the terms and conditions and in the form set out in Appendix 1 hereto (or in
such other form as may be prescribed from time to time by the Trustee);
	 
	 	 	“Market Value” means the market value of a Share as determined by the Trustee on any day
having consulted the Board;
	 
	 	 	“Nil Cost Option” means a right to acquire Shares;
	 
	 	 	“Option” means a Mandatory ESAS Option or a Voluntary ESAS Option;
	 
	 	 	“Option Period” means the period during which an Option shall be exercisable being no later
than two years from the Grant Date in the case of a Mandatory ESAS Option or ten years
in the case of a Voluntary ESAS Option unless the Trustee having first consulted the
Board shall decide otherwise PROVIDED THAT such period shall not exceed ten years in
any circumstances whatsoever;
	 
	 	 	“Participant” means a person who holds an Award or an Option or where applicable his
personal representatives;
	 
	 	 	“Release Date” means the date specified in an Award Letter on which Shares may be released
to a Participant in accordance with paragraph 8 being five years from the Award Date or
such other date as may be specified by the Trustee from time to time;
	 
	 	 	“Shares” means ordinary shares in the capital of Barclays or any other class of share in the
capital of Barclays admitted to the Official List of the UK Listing Authority;
	 
	 	 	“Scheme” means the Executive Share Award Scheme herein contained as amended from time to
time in accordance with paragraph 14;
	 
	 	 	“Subsidiaries” mean those companies which are subsidiaries of the Company within the meaning
of section 736 of the Companies Act;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988;
	 
	 	 	“Trust” means the Barclays Group (ESAS) Employees’ Benefit Trust established by the Trust
Deed;
	 
	 	 	“Trust Deed” means the deed dated 27 September 1996 between the Company (1) and Mourant &
Co. Trustees Limited (2) as modified or amended from time to time;
	 
	 	 	“Trustee” means the trustee for the time being of the Trust;
	 
	 	 	“UK Listing Authority” means the UK Listing Authority within the meaning given to that
expression in the Listing Rules made by the Financial Services Authority pursuant to its
appointment as the relevant competent authority under the Official Listing of Securities
(Change of Competent Authority) Regulations 2000; and
	 
	 	 	“Voluntary ESAS Option” means a Nil Cost Option granted to an Eligible Employee at the
discretion of the Trustee after consultation with the Board and on the request of an
Eligible Employee following waiver of any entitlement to a bonus to which he may
otherwise have become entitled for any financial period of Barclays by deed on the
terms and conditions and in the form set out in Appendix 3 hereto (or in such other
form as may be prescribed from time to time by the Trustee).

- 2 -

 

	1.2	 	Any reference herein to a statutory provision shall include a reference to that provision as
amended or re-enacted from time to time. Where the context permits the singular shall include
the plural and vice versa and the masculine gender shall include the feminine and vice versa.
	 
	1.3	 	The Scheme is subject to the terms of the Trust Deed. If there is any conflict between such
terms and the terms of the Scheme, the terms of the Trust Deed shall prevail.
	 
	2.	 	Grant of Awards and Options
	 
	2.1	 	Subject to paragraphs 2.5 and 2.6, the Trustee may, in its absolute discretion, having first
consulted the Board, grant an Award and/or an Option in accordance with the rules of the
Scheme to any Eligible Employee.
	 
	2.2	 	An Award or an Option shall, unless the Trustee determines otherwise, be granted:

	 	(a)	 	in respect of a fixed number of Shares;
	 
	 	(b)	 	in the case of an Award on the basis that the Shares in respect of which the
Award is made shall, subject to paragraph 7 be released on the Release Date if any
related Mandatory ESAS Option granted on the Grant Date shall not have been exercised.

	2.3	 	The grant of an Award shall be evidenced by an Award Letter which shall specify:

	 	(a)	 	the number of Shares awarded or the formula by which such number may be
determined, if relevant;
	 
	 	(b)	 	the Award Date and the Grant Date(s); and
	 
	 	(c)	 	any conditions which may have to be satisfied before either the grant of an
Option over any of the Shares awarded or the release of any such Shares.

	2.4	 	The grant of an Option shall be made by deed substantially in the form set out either in
Appendices 1 and 2 as appropriate and shall specify:

	 	(a)	 	the number of Shares subject to the Option or the formula by which such number
may be determined if relevant;
	 
	 	(b)	 	the period during which the Option is exercisable; and
	 
	 	(c)	 	any conditions which may have to be satisfied before the exercise of the
Option.

	2.5	 	The Trustee may only grant an Award or an Option under the Scheme within the period of 42
days following the Adoption Date and thereafter only during the periods of 42 days following
the preliminary announcement of the final results of Barclays or the announcement of the
half-year results of Barclays in respect of any accounting period or at any time thereafter
when the Trustee, having first consulted the Board, considers the circumstances sufficiently
exceptional to justify the grant of an Award.
	 
	2.6	 	The grant of any Award or any Option by the Trustee is subject to the obtaining of any
approval or consent as may be required by the Listing Rules of the UK Listing Authority, The
City Code on Take-Overs and Mergers or by any other regulation or enactment.
	 
	2.7	 	The grant of an Award shall not in any circumstances whatsoever:

	 	(a)	 	constitute the acquisition by a Participant of an interest in the Shares
awarded to him or the acquisition of a right to acquire the Shares awarded to him; or

- 3 -

 

	 	(b)	 	entitle a Participant to claim any interest in the Trust Fund or to compel the
Trustee to pay or apply any of the capital or income comprised in the Trust Fund to or
for the benefit of a Participant.

	 	 	Until their release on the Release Date, a Participant shall have no interest in the Shares
subject to his Award. A Participant shall not be entitled to any dividends or other
distributions made in respect of the Shares awarded to him or subject to any Option granted
to him. A Participant shall have no right until their transfer to a Participant on the
exercise of an Option or their release on the Release Date to vote in respect of the Shares
subject to his Option or his Award. There shall be no consideration payable for the grant
of an Award or an Option.
	 
	3.	 	Awards and Options
	 
	3.1	 	Any Award or Option granted to a Participant is personal to him and shall not be capable of
being transferred or otherwise disposed of by a Participant. Any such Award or Option shall
lapse forthwith if it is so transferred or otherwise disposed of or if a Participant is
adjudicated bankrupt.
	 
	3.2	 	A Participant shall be entitled at any time to renounce, surrender or cancel or agree to the
cancellation of an Award or an Option.
	 
	4.	 	Dividends
	 
	4.1	 	The Trustee may, in its absolute discretion, apply any dividends (net of any tax payable in
respect of such dividends by the Trustee) which it receives in respect of any Shares which are
available for release or exercise under any subsisting Award or Option to purchase further
Shares.
	 
	4.2	 	The Trustee may, in its absolute discretion, release such further Shares acquired pursuant to
paragraph 4.1 (or Shares received by the Trustee as a result of the Trustee electing to
receive any Scrip Dividend offered by Barclays) to a Participant at the same time as the
exercise of a Mandatory ESAS Option (having consulted the Board) or at the same time as the
release of any Shares available for release on the Release Date.
	 
	4.3	 	The Trustee may, in its absolute discretion, include such further Shares acquired pursuant to
paragraph 4.1 (or Shares received by the Trustee as a result of the Trustee electing to
receive any Scrip Dividend offered by Barclays) in the number of Shares subject to a Mandatory
ESAS Option.
	 
	5.	 	Grant of Mandatory ESAS Option
	 
	5.1	 	The Trustee shall determine, in its absolute discretion having first consulted the Board, on
each Grant Date specified in an Award Letter whether or not:

	 	(a)	 	the conditions specified in the Award Letter have been satisfied;
	 
	 	(b)	 	any conditions which may have been set by the Trustee after the Award Date as
permitted under paragraph 9 have been satisfied.

	 	 	The Trustee shall be entitled to rely on any information given by the Board for these
purposes.
	 
	5.2	 	If the Trustee determines that paragraphs 5.1(a) and (b) have been fulfilled, the Trustee may
in its absolute discretion grant a Mandatory ESAS Option to the Participant over the number of
Shares specified in the Award Letter as available for the grant of a Mandatory
ESAS Option to the Participant on the relevant Grant Date including some or all of the Bonus
Shares and any Shares acquired by the Trustee pursuant to paragraph 4.

- 4 -

 

	5.3	 	If the Trustee determines that paragraphs 5.1(a) and (b) have not been fully satisfied or
have not been satisfied at all, the Trustee may in its absolute discretion grant a Mandatory
ESAS Option to the Participant over:

	 	(a)	 	the number of Shares specified as available for the grant of a Mandatory ESAS
Option to the Participant on the relevant Grant Date together with some or all of the
Bonus Shares and any Shares acquired by the Trustee pursuant to paragraph 4;
	 
	 	(b)	 	a lower number of such Shares; or
	 
	 	(c)	 	no Shares at all.

	5.4	 	The grant of a Mandatory ESAS Option over any Shares under the Scheme shall be subject to
obtaining such approval or consent as is mentioned in paragraph 2.6.
	 
	5.5	 	The Trustee shall, subject to paragraphs 5.1, 5.2 , 5.3 and 5.4 grant a Mandatory ESAS Option
to a Participant in the period of 21 days following a Grant Date. Any Shares available for
the grant of a Mandatory ESAS Option which are not made subject to the grant of a Mandatory
ESAS Option within the period of 21 days following a Grant Date shall cease to be so available
at the end of such period.
	 
	6.	 	Manner of Exercise of an Option and Rights of Participants
	 
	6.1	 	Subject to paragraph 6.2, on exercise of an Option, £1 will be payable in total for the
Shares acquired on each such exercise (whether a total or partial exercise) and thereafter:

	 	(a)	 	the Trustee shall inform the Participant in writing within the period of 21
days following such exercise, of the Market Value of the Shares acquired;
	 
	 	(b)	 	the Participant shall from the date of such exercise become beneficially
entitled to any such Shares and shall have the right to receive all dividends paid to
the Trustee on such Shares (net of any tax payable on such dividends by the Trustee)
and the right to direct the Trustee how to vote in respect of such Shares. The Trustee
shall vote in accordance with any such instructions; and
	 
	 	(c)	 	the Trustee shall transfer legal title to such Shares to the Participant.

	6.2	 	The Trustee may sell such number of the Shares in respect of which a Participant exercises an
Option to meet any obligation of the Trustee to deduct tax and/or for national insurance
contributions in respect of such Shares.
	 
	6.3	 	Shares transferred shall have the same beneficial rights as other Shares in issue on such
date except that they will not entitle holders to receive any dividends or other distributions
from the Trustee where such dividends or other distributions were declared for payment to
holders of Shares on the Register of Members at a record date which precedes the date on which
the Shares in question were transferred.
	 
	7.	 	Release of Shares on the Release Date
	 
	7.1	 	If at the end of its Option Period a Mandatory ESAS Option has not been exercised, it shall
lapse and the Trustee shall then determine, in its absolute discretion having first consulted
the Board, on each Release Date specified in an Award Letter whether or not:

	 	(a)	 	any conditions specified in the Award Letter have been satisfied;
	 
	 	(b)	 	any conditions which may have been set by the Trustee after the Award Date as
permitted under paragraph 9 have been satisfied.

- 5 -

 

	 	 	The Trustee shall be entitled to rely on any information given by the Board for these
purposes.
	 
	7.2	 	Subject to paragraph 7.6, if the Trustee determines that paragraphs 7.1(a) and (b) have been
fulfilled, the Trustee may in its absolute discretion release to the Participant the number of
Shares specified in the Award Letter as available for release to the Participant on the
relevant Release Date including some or all of the Bonus Shares and any Shares acquired by the
Trustee as described in paragraph 4.
	 
	7.3	 	If the Trustee determines that paragraphs 7.1(a) and, if relevant, (b) have not been fully
satisfied or have not been satisfied at all, the Trustee may in its absolute discretion
release to the Participant:

	 	(a)	 	the number of Shares specified as available for release to the Participant on
the relevant Release Date together with some or all of the Bonus Shares and any Shares
acquired by the Trustee pursuant to paragraph 4;
	 
	 	(b)	 	a lower number of such Shares; or
	 
	 	(c)	 	no Shares at all.

	7.4	 	The release of any Shares under the Scheme shall be subject to obtaining such approval or
consent as is mentioned in paragraph 2.6.
	 
	7.5	 	The Trustee shall, subject to paragraphs 7.1, 7.2 , 7.3 and 7.4 release Shares to a
Participant in the period of 21 days following a Release Date. Any Shares available for
release which are not released within the period of 21 days following a Release Date shall
cease to be available for release at the end of such period.
	 
	7.6	 	Notwithstanding anything in the Scheme to the contrary, Shares under an Award shall be
actually or constructively received by a Participant by the later of:

	 	(i)	 	the date that is 21/2 months from the end of the Participant’s first taxable year
in which the Trustee determines in its absolute discretion to release Shares under an
Award to the Participant; or
	 
	 	(ii)	 	the date that is 21/2 months from the end of Barclays’ first taxable year in
which the Trustee determines in its absolute discretion to release Shares under an
Award to a Participant.

	8.	 	Manner of Release of Shares and Rights of Participants on Release
	 
	8.1	 	If the Trustee determines that any Shares shall be released to a Participant pursuant to
paragraphs 7, 10 or 11 then:

	 	(a)	 	the Trustee shall inform the Participant in writing within the period of 21
days following such release, of the number of Shares released, the date of release and
the Market Value of the Shares released;
	 
	 	(b)	 	the Participant shall from the date of such determination become beneficially
entitled to any such Shares and shall have the right to receive all dividends paid to
the Trustee on such Shares (net of any tax payable on such dividends by the
Trustee) and the right to direct the Trustee how to vote in respect of such Shares.
The Trustee shall vote in accordance with any such instructions; and
	 
	 	(c)	 	the Participant shall be entitled to require the Trustee to transfer legal
title to such Shares to the Participant.

- 6 -

 

	8.2	 	The Trustee may sell such number of the Shares which it has determined to release to a
Participant pursuant to paragraph 7 to meet any obligation of the Trustee to deduct tax and
national insurance contributions in respect of the Shares which it has so determined to
release.
	 
	8.3	 	Shares released shall have the same beneficial rights as other Shares in issue on such date
except that they will not entitle holders to receive any dividends or other distributions from
the Trustee where such dividends or other distributions were declared for payment to holders
of Shares on the Register of Members at a record date which precedes the date on which the
Shares in question were released.
	 
	9.	 	Further Conditions of Release and Waiver of Conditions
	 
	9.1	 	The Trustee may, at any time after an Award Date, impose such further conditions on the
release of Shares subject to an Award as it may deem appropriate, having first consulted the
Board. The Trustee shall notify the Participant in writing of its decision as soon as
reasonably practicable.
	 
	9.2	 	The Trustee may, having first consulted the Board, subsequently waive or amend any condition
imposed in respect of any Award.
	 
	10.	 	Cessation of Employment of Participant
	 
	10.1	 	If a Participant ceases to be employed by the Group by reason of:

	 	(a)	 	death;
	 
	 	(b)	 	injury;
	 
	 	(c)	 	disability;
	 
	 	(d)	 	ill-health;
	 
	 	(e)	 	dismissal for redundancy within the meaning of the Employment Rights Act 1996;
	 
	 	(f)	 	the company by which he is employed ceasing to be a member of the Group; or
	 
	 	(g)	 	the undertaking in which he is employed being transferred to a transferee which
is not a member of the Group,

	 	 	the Trustee may in its absolute discretion, having first consulted the Board, either release
to the Participant, or, if the cessation is by reason of his death, to his wife, children
under the age of 18 or step-children under the age of 18 as the Trustee shall determine,
such number of: unreleased Shares, or if relevant Shares which were subject to an Option
which has lapsed as a result of such cessation, the Bonus Shares; and/or Shares acquired by
the Trustee pursuant to paragraph 4, as the Trustee shall in its absolute discretion
determine in accordance with paragraphs 7.4, 7.5 and paragraph 8. If the Trustee decides not
to release any such Shares the Award shall not lapse on such cessation of employment and
paragraph 7 other than paragraph 7.1(a) shall continue to apply.
	 
	10.2	 	If a Participant ceases to be employed by the Group by reason of retirement with the
agreement of the company by which he is employed, the Trustee may, in its absolute discretion
having first consulted the Board, release to him such number of unreleased Shares or if
relevant Shares which were subject to an Option which has lapsed as a result of such
cessation; the Bonus Shares; and/or Shares acquired by the Trustee pursuant to paragraph 4 as
the Trustee shall in its absolute discretion determine in accordance with paragraphs 7.4, 7.5
and paragraph 8. If the Trustee decides not to release any such

- 7 -

 

	 	 	Shares the Award shall not
lapse on such cessation of employment and paragraph 7 other than paragraph 7.1(a) shall
continue to apply.
	 
	10.3	 	If a Participant ceases to be employed by the Group for any other reason, any unreleased
Shares shall immediately cease to be available for release to such Participant unless the
Trustee, having first consulted the Board, shall in its absolute discretion decide to release
all or some only of: any such unreleased Shares; the Bonus Shares; and /or any Shares
acquired by the Trustee pursuant to paragraph 4 in accordance with paragraphs 7.4, 7.5 and
paragraph 8.
	 
	10.4	 	For the purposes of this paragraph 10 where a Participant’s employment is terminated without
notice or on terms in lieu of notice it shall be deemed to cease on the date on which the
termination takes effect and where such employment is terminated with notice it shall be
deemed to cease upon the date that notice expires.
	 
	11.	 	Takeover, Reconstruction and Winding-up of Barclays
	 
	 	 	If any person obtains Control of Barclays (within the meaning of section 840 of the Taxes
Act) as a result of making a general offer to acquire Shares, or having obtained Control
makes such an offer, or if any person becomes bound or entitled to acquire Shares under
sections 428-430F of the Companies Act, or if under section 425 of the Companies Act the
Court sanctions a compromise or arrangement of Barclays or if Barclays passes a resolution
for voluntary winding up, or if an order is made for compulsory winding up of Barclays, the
Trustee having first consulted the Board shall in its absolute discretion determine the
manner in which: any unreleased Shares available for release under an Award or which were
subject to an Option which has lapsed as a result of such event; the Bonus Shares; and any
Shares purchased by the Trustee pursuant to paragraph 4, shall be dealt with.
	 
	12.	 	Variation of Capital
	 
	12.1	 	Subject to paragraph 12.2, in the event of any increase or variation of the share capital of
Barclays (whenever effected) by way of capitalisation or rights issue, or sub-division,
consolidation or reduction of capital or other variation, the Trustee may make such
adjustments as it considers appropriate to the number of Shares comprised in any Award and in
any Option.
	 
	12.2	 	Any adjustment under paragraph 12.1 shall be subject to the Auditors confirming that such
adjustment is in their opinion fair and reasonable.
	 
	12.3	 	The Trustee shall give notice in writing to the Participant of any adjustments made under
paragraph 12.1 as soon as practicable following the making of such adjustments.
	 
	13.	 	Administration of the Scheme
	 
	 	 	If there is any dispute as to the rights and obligations of any person under the Scheme or
any question concerning the construction or effect of the Scheme or any other question in
connection with the Scheme, the Trustee shall determine the same and (other than in the
case of a matter to be certified by the Auditors in accordance with the Scheme) such
determination shall be final and binding on all persons.
	 
	14.	 	Amendment of the Scheme
	 
	14.1	 	The Scheme may be amended in any respect by resolution of the Trustee with the consent of the
Company.
	 
	14.2	 	Written notice of any material amendment to the Scheme shall be given to all Participants.

- 8 -

 

	15.	 	Termination of the Scheme
	 
	 	 	The Trustee may, having first consulted the Board, at any time suspend or terminate the
operation of the Scheme in which case no further Awards or Options will be granted but in
all other respects the provisions of the Scheme will remain in force.
	 
	16.	 	General Provisions
	 
	16.1	 	Terms of office or employment
	 
	 	 	The rights and obligations of any Participant under the terms of his office or employment
with any member of the Group shall not be affected by his participation in the Scheme or any
right which he may have to participate in the Scheme. The Scheme shall not entitle the
Participant to any rights of continued employment with any member of the Group. Any
Participant shall waive any and all rights to compensation or damages in consequence of the
termination of his office of employment for any reason whatsoever insofar as those rights
arise or may arise from his ceasing to have rights under the Scheme as a result of such
termination.
	 
	16.2	 	Tax and other similar liabilities
	 
	 	 	Any liability of a Participant to taxation or social security contributions or similar
liabilities in respect of an Award shall be for the account of the relevant Participant.
The Trustee may make an Award and the transfer of Shares pursuant to it conditional on the
Participant complying with arrangements specified by the Trustee for the payment of any
taxation, employee’s social security contributions or employer’s social security obligations
(including, without limitation, the deduction of taxation at source).
	 
	16.3	 	Auditors as experts
	 
	 	 	In any matter in which they are required to act under the Scheme, the Auditors shall be
deemed to be acting as experts and not arbitrators.
	 
	16.4	 	Notices
	 
	 	 	Any notice or other communication under or in connection with the Scheme may be given by
personal delivery electronically or by sending the same by post in the case of a company to
its registered office, and in the case of an individual to his last known address, or, where
he is a director or employee of the Group, either to his last known address or to the
address of the place of business at which he performs the whole or substantially the whole
of the duties of his office or employment, and where a notice or other communication is
given by first-class post, it shall be deemed to have been received 48 hours after it was
put into the post properly addressed and stamped.
	 
	16.5	 	Regulation
	 
	 	 	Every Award shall be subject to the condition that no Shares shall be released to or
transferred to a Participant following the release of Shares under Award if such release or
transfer would be contrary to any enactment or regulation for the time being in force of the
United Kingdom or any other country having jurisdiction in relation thereto. The Trustee
shall not be bound to take any action to obtain the consent of any government or authority
to such transfer or to take any action to ensure that any such transfer shall be in
accordance with any enactment or regulation if such action could in the opinion of the
Trustee be unduly onerous.

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	16.6	 	Data Protection provisions

	 	(a)	 	The Company and the Trustee will store and process information about a
Participant on their computers and in other ways. By “information about a Participant”
the Company and the Trustee mean personal information they have obtained from the
Participant, the Group employing company and any other Group companies or other
organisations in anticipation of a Participant’s participation in the Scheme and during
the term of the Scheme.
	 
	 	(b)	 	The Company and the Trustee will use information about a Participant to manage
and administer the Scheme, give the Participant information about the Scheme and his
Award, to develop and improve their services to the Participant and other customers and
to protect their interests. The Trustee agrees to apply the same levels of protection
to information about a Participant as the Company is required to apply in the UK.
	 
	 	(c)	 	The Company and the Trustee may give information about a Participant and his
participation in the Scheme to the following:

	 	(i)	 	a Participant’s Group employing company and it agents or
service providers where disclosure is necessary to enable the Company or the
Trustee to discharge their duties and obligations in the management and
administration of the Scheme (including any disclosure of information as may be
necessary to enable the Group employing company to comply with the requirements
of any relevant tax, social security or other governmental authority). (For the
purposes of this clause “Group employing company” includes any company or other
entity of the Group which may become the Participant’s employer during the term
of the Scheme and any other company or entity which has a duty to comply with
any requirements imposed any relevant tax, social security or other
governmental authority in connection with his participation in the Scheme.)
	 
	 	(ii)	 	people who provide a service to the Company or the Trustee or
are acting as their agents on the understanding that they will keep the
information confidential.
	 
	 	(iii)	 	anyone to whom the Company or the Trustee transfers or may
transfer its rights and duties under the Scheme.
	 
	 	(iv)	 	where the Company or the Trustee has a duty to do so or if the
law allows the Company or the Trustee to do so (including any relevant tax,
social security or other governmental authority),

	 	 	 	otherwise the Company and the Trustee will keep information about a Participant
confidential.
	 
	 	(d)	 	If the Company or the Trustee transfer information about a Participant to a
service provider or agent in another country, they will procure that the service
provider or agent agrees to apply the same levels of protection as the Company and the
Trustee are required to apply in the UK and other EU jurisdictions and to use
information about a Participant only for the purpose of providing the service to the
Company or the Trustee.

	16.7	 	Governing law
	 
	 	 	The Scheme shall be governed and construed in accordance with English law.

- 10 -

 

Appendix 1

			
	 	 	 
	Dated
	 	200[ ]
	 

[Name of Optionholder]

 

Mandatory ESAS Option Deed

 

Lovells

Atlantic House

50 Holborn Viaduct

London EC1A 2FG

Ref: C2/LLW

 

 

Mandatory ESAS Option Deed

This Deed is made the [           ] day of [      ]

By:

Bailhache Labesse Trustees Limited whose registered office is at PO Box 207, 13-14 Esplanade, St
Helier, Jersey, Channel Islands, JE1 1BD, the trustee of the Barclays Group (ESAS) Employees’
Benefit Trust (the “Trustee”)

Whereas the Trustee has agreed to grant to [Name] of [address] (the “Optionholder”) a nil
cost option to acquire shares in the capital of Barclays PLC pursuant to and in accordance with the
rules of the Barclays Group Executive Share Award Scheme on the following terms and conditions.

This Deed Witnesses:

	1.	 	Definitions and Interpretation
	 
	1.1	 	In this Deed:
	 
	 	 	“Auditors” means the auditors for the time being of Barclays or such other independent
suitably qualified person as the Trustee may from time to time nominate;
	 
	 	 	“Barclays” means Barclays PLC, registered in England No.48839;
	 
	 	 	“Board” means the board of directors for the time being of Barclays or a duly appointed
committee thereof PROVIDED THAT if any person obtains Control of Barclays the Board or
relevant committee as appropriate shall mean the members of the Board or such committee
as the case may be immediately before such Control is obtained;
	 
	 	 	“Control” means the control of a company within the meaning of section 840 of the Taxes Act
and a person shall be deemed to have control of a company if he and others acting in
concert with him have together obtained control of a company within such meaning;
	 
	 	 	“Group” means Barclays, and all of its Subsidiaries and “member of the Group” shall be
construed accordingly;
	 
	 	 	“Option” means the right granted hereby by the Trustee to the Optionholder to acquire the
Option Shares;
	 
	 	 	“Option Period” means the period ending on [                ];
	 
	 	 	“Option Shares” means subject to clause 6, [           ] Shares;
	 
	 	 	“Scheme” means the Executive Share Award Scheme established by the Trustee pursuant to the
Trust Deed and as constituted by its rules set out in the second schedule to the Trust
Deed and as amended from time to time in accordance with paragraph 14 thereof;
	 
	 	 	“Shares” mean ordinary shares in the capital of Barclays;

 

 

	 	 	“Stamp Duty Regulations” mean the Stamp Duty (Exempt Instruments) Regulations 1987;
	 
	 	 	“Subsidiaries” means those companies which are subsidiaries of Barclays within the meaning
of section 736 of the Companies Act 1985;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988; and
	 
	 	 	“Trust Deed” means the deed dated 27 September 1996 establishing the Barclays Group (ESAS)
Employees’ Benefit Trust.
	 
	1.2	 	Any reference herein to a statutory provision shall include a reference to that provision as
amended or re-enacted from time to time. Where the context permits the singular shall include
the plural and vice versa and the masculine gender shall include the feminine and vice versa.
	 
	1.3	 	If there is any conflict between the terms and conditions of this Deed and the terms and
conditions of the Trust Deed and the Scheme, the terms and conditions of the Trust Deed and
Scheme shall prevail.
	 
	2.	 	Grant of Option
	 
	 	 	The Trustee hereby grants the Option to the Optionholder subject to and in accordance with
the terms and conditions of this Deed.
	 
	3.	 	Exercise of Option
	 
	3.1	 	Subject to clauses 4 and 5, the Option may be exercised on one occasion only in whole or in
part by the Optionholder at any time within the Option Period by his giving to the Trustee at
its registered office at least 10 working days’ written notice. Such notice shall be
substantially in the form set out in the appendix hereto or in such other form and manner as
the Trustee may from time to time prescribe. Such notice shall specify the number of Shares
in respect of which the Option is being exercised. The date of exercise of the Option (or the
relevant portion of the Option as the case may be) shall be the date on which the period of
notice expires (or such earlier date specified by the Trustee following receipt of a valid
written notice of exercise from the Optionholder). On exercise of the Option, £1 will be
payable by the Optionholder in total for the Option Shares acquired.
	 
	3.2	 	The Optionholder shall:

	 	(a)	 	supply with such notice this Deed and such other documentation as the Trustee
may require;
	 
	 	(b)	 	supply a cheque for £1; and
	 
	 	(c)	 	subject to clause 3.3, pay any such additional amount of which the Trustee may
notify the Optionholder in respect of any deduction on account of tax or similar
liabilities including social security contributions for which the Optionholder is or
may be liable as may be required by law as a result of the exercise of the Option in
such manner as the Trustee may from time to time prescribe.

	3.3	 	The Trustee shall within 30 days after the date of exercise of the Option transfer the
appropriate number of Option Shares to the Optionholder (or to his nominee at the
Optionholder’s written direction). The appropriate number of Option Shares shall, unless
otherwise agreed by the Trustee and the Optionholder, be the number of Option Shares

 

 

	 	 	specified in the notice served pursuant to clause 3.1, PROVIDED THAT where any member of the
Group or the Trustee is obliged to account for any tax or similar liabilities including
social security contributions for which the Optionholder is or may be liable in any
jurisdiction as a result of the exercise of the Option the Trustee may sell sufficient of
the Option Shares to meet such liability. The Trustee shall pay such proceeds of sale to
the relevant member of the Group to be held on trust on behalf of the Trustee to be paid to
the relevant tax or other authority to meet such liability.
	 
	4.	 	Limitations on Exercise of the Option
	 
	4.1	 	Subject to clauses 4.2, 4.3, 4.4, 4.5 and 5, the Option may be exercised by the Optionholder
at any time during the Option Period. If the Option is not so exercised it shall lapse at the
end of the Option Period.
	 
	4.2	 	If the Optionholder dies the Option shall lapse forthwith unless the Trustees determines
otherwise.
	 
	4.3	 	If the Optionholder ceases to be employed by the Group by reason of:

	 	(a)	 	injury;
	 
	 	(b)	 	disability;
	 
	 	(c)	 	ill health;
	 
	 	(d)	 	retirement with the agreement of the company by which he is employed;
	 
	 	(e)	 	redundancy within the meaning of the Employment Rights Act 1996;
	 
	 	(f)	 	the company by which he is employed ceasing to be a member of the Group; or
	 
	 	(g)	 	the undertaking in which he works having been sold to a purchaser which is not
a member of the Group,

	 	 	the Optionholder may exercise the Option in accordance with clause 3 at any time before the
earlier of the expiry of 6 months from the date of cessation and the end of the Option
Period. If the Option is not so exercised it shall lapse.
	 
	4.4	 	If the Optionholder ceases to be employed by the Group for any other reason the Option shall
lapse forthwith unless the Trustee determines otherwise.
	 
	4.5	 	For the purposes of this clause, where the employment of an Optionholder is terminated
without notice or on terms in lieu of notice it shall be deemed to cease on the date on which
the termination takes effect and where such employment is terminated with notice it shall be
deemed to cease upon the date on which that notice is given.
	 
	5.	 	Takeovers’ Reconstruction and Winding-up of Barclays
	 
	5.1	 	If any person obtains control of Barclays as a result of making:

	 	(a)	 	a general offer to acquire the whole of the issued share capital of Barclays
(other than that which is already owned by such person) made on a condition such that
if it is satisfied the person making the offer will have Control of Barclays; or
	 
	 	(b)	 	a general offer to acquire all the Shares (or such Shares as are not already
owned by such person); or

 

 

	 	(c)	 	pursuant to a compromise or arrangement between Barclays and its creditors or
members which is sanctioned by the Court under section 425 of the Companies Act 1985

	 	 	the Option shall lapse forthwith unless the Trustee determines otherwise.
	 
	5.2	 	If Barclays gives notice of a general meeting to consider a resolution for the winding-up or
liquidation of Barclays, the Option shall lapse unless the Trustee determines otherwise.
	 
	6.	 	Variation of Capital
	 
	6.1	 	Subject to paragraph 6.2, in the event of any increase or variation of the share capital of
Barclays (whenever effected) by way of capitalisation or rights issue, or sub-division,
consolidation or reduction of capital or other variation, the Trustee may make such
adjustments as it considers appropriate to the number of Shares comprised in the Option.
	 
	6.2	 	Any adjustment under paragraph 6.1 shall be subject to the Auditors confirming that such
adjustment is in their opinion fair and reasonable.
	 
	6.3	 	The Trustee shall notify the Optionholder in writing of any adjustments made under paragraph
6.1 as soon as practicable following the making of such adjustments.
	 
	7.	 	Administration
	 
	7.1	 	Any dispute regarding the interpretation of this Deed shall be determined by the Trustee,
having consulted the Board and after seeking such advice as it shall consider necessary, and
its decision shall be final and binding.
	 
	7.2	 	Any notice or other communication in connection with this Deed may be given by personal
delivery or by sending the same by post:

	 	(a)	 	in the case of a company to its registered office; and
	 
	 	(b)	 	in the case of an individual to his last known address, or, where he is a
director or employee of the Group, either to his last known address or to the address
of the place of business at which he performs the whole or substantially the whole of
the duties of his office or employment.

	 	 	Where a notice or other communication is given by first-class post, it shall be deemed to
have been received 48 hours after it was put into the post properly addressed and stamped.
	 
	8.	 	Additional Provisions
	 
	8.1	 	The Option is personal to the Optionholder and may not be transferred to or subject to the
provisions of clause 4.3, exercised by any other person.
	 
	8.2	 	The Option shall be subject to the condition that no Option Shares shall be transferred to
the Optionholder by the Trustee following the exercise of the Option if such transfer would be
contrary to any enactment or regulation for the time being in force of the United Kingdom or
of any other country having jurisdiction in relation thereto. The Trustee shall not be bound
to take any action to obtain the consent of any governmental authority to such transfer or to
take any action to ensure that any such transfer shall be in accordance with any such
enactment or regulation if such action could in the opinion of the Trustee be unduly onerous.

 

 

	8.3	 	The rights and obligations of the Optionholder under his terms of employment with any member
of Group shall not be affected by the grant of the Option and this Deed shall not afford to
the Optionholder any right to continued employment or any additional right to compensation in
consequence of the termination of his employment for any reason whatsoever.
	 
	8.4	 	In any matter in which they are required to act hereunder the Auditors shall be deemed to be
acting as experts and not as arbitrators.
	 
	8.5	 	In accordance with the Stamp Duty Regulations the Trustee hereby certifies this Deed as an
instrument falling within category L specified in the Schedule to the Stamp Duty Regulations
and in accordance with the Stamp Duty Regulations it will not require to be stamped with a
stamp denoting that it is duly stamped or that it is not chargeable with any duty.

 

 

[Example]

Appendix

Notice of Exercise of Mandatory ESAS Option

	 	 

	To: 

	Bailhache Labesse Trustees Limited
	 

	PO Box 207
	 

	13-14 Esplanade
	 

	St Helier
	 

	Jersey
	 

	Channel Islands, JE1 1BD,

I wish to exercise my Option granted on [           ] 1over [          
]2 Shares. I enclose my cheque for £1 made payable to Bailhache Labesse Trustees
Limited.

I hereby request you to treat this notice as my application to the Trustee to transfer the above
number of fully paid Shares to me/my nominee. I acknowledge that the Trustee will sell such number
of Shares which will (after deducting the costs of sale) provide sufficient funds to account for
tax and similar liabilities on my behalf and then procure that my name/my nominee’s
name3 is placed on the Register of Members as the holder of the remaining Shares and
arrange for me/my nominee to be sent a share certificate (or such other evidence of allotment and
issue as may be applicable) in respect of the same to the address given below.

Please note:

When completing your tax return for the relevant tax year you will need to declare the exercise of
the Option (but you should indicate that the taxable amount has already been included in your
taxable pay for the year) and the disposal of Shares on your behalf by the Trustee. You will be
sent details of the relevant transaction after the exercise has taken place.

Dated

	 	 	 	 	 	 	 	 	 

	Signed	 	 
	 	 	 	Name of Nominee
	(Optionholder)	 	 	 	 	 	(if applicable) (Block capitals)
	 
	 	 	 	 	 	 	 	 
	Full Name	 	 
	 	 	 	Address of Nominee
	(Block Capitals)	 	 	 	 	 	(Block Capitals)
	 
	 	 	 	 	 	 	 	 
	Full Address
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	(Block Capitals)
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Contact telephone number

	 	 	 	 	 	Reference	 	 
	 

	 	 
	 	 	 	 	 	 

 

			
	1	 	Insert date of Option Deed.
	 
	2	 	Insert the number of Shares you want to
acquire if you are exercising in part or ALL if you want to exercise in full
	 
	3	 	If you wish the Shares to be registered in
the name of your nominee please delete the references to “you” and give your
nominee’s details below.

 

 

In Witness whereof this document has been executed as a deed the day and year first before
written.

	 	 	 	 	 

	EXECUTED as a deed by

	 	)
	Bailhache Labesse Trustees Limited

	 	)
	acting by:

	 	)

Authorised Signatory

Authorised Signatory

 

 

Appendix 2

			
	 	 	 
	Dated
	 	200[ ]
	 

[Name of Optionholder]

 

Voluntary ESAS Option Deed

 

Lovells

Atlantic House

50 Holborn Viaduct

London EC1A 2FG

Ref: C2/LLW

 

Voluntary ESAS Option Deed

This Deed is made the [   ] day of [   ]

By :

Bailhache Labesse Trustees Limited whose registered office is at PO Box 207, 13-14 Esplanade, St
Helier, Jersey, Channel Islands, JE1 1BD, the trustee of the Barclays Group (ESAS) Employees’
Benefit Trust (the “Trustee”)

Whereas the Trustee has agreed to grant to [Name] of [address] (the “Optionholder”) a nil
cost option to acquire shares in the capital of Barclays PLC pursuant to and in accordance with the
rules of the Barclays Group Executive Share Award Scheme on the following terms and conditions.

This Deed Witnesses:

	1.	 	Definitions and Interpretation
	 
	1.1	 	In this Deed:
	 
	 	 	“Auditors” means the auditors for the time being of Barclays or such other independent
suitably qualified person as the Trustee may from time to time nominate;
	 
	 	 	“Barclays” means Barclays PLC, registered in England No.48839;
	 
	 	 	“Board” means the board of directors for the time being of Barclays or a duly appointed
committee thereof PROVIDED THAT if any person obtains Control of Barclays the Board or
relevant committee as appropriate shall mean the members of the Board or such committee
as the case may be immediately before such Control is obtained;
	 
	 	 	“Control” means the control of a company within the meaning of section 840 of the Taxes Act
and a person shall be deemed to have control of a company if he and others acting in
concert with him have together obtained control of a company within such meaning;
	 
	 	 	“Group” means Barclays, and all of its Subsidiaries and “member of the Group” shall be
construed accordingly;
	 
	 	 	“Option” means the right granted hereby by the Trustee to the Optionholder to acquire the
Option Shares;
	 
	 	 	“Option Period” means the period of ten years from the Start Date;
	 
	 	 	“Option Shares” means subject to clause 6, [   ] Shares;
	 
	 	 	“Scheme” means the Executive Share Award Scheme established by the Trustee pursuant to the
Trust Deed and constituted by its rules set out in the Second Schedule to the Trust
Deed as amended from time to time in accordance with paragraph 14 thereof;
	 
	 	 	“Shares” means ordinary shares in the capital of Barclays (or such other class of shares as
may represent the same as a result of any reorganisation, reconstruction or other
variation of share capital of Barclays to which the provisions of this Deed apply from
time

 

 

	 	 	to time) PROVIDED THAT if an Option is exercised at any time when the Trustee does not hold
such Shares in Barclays following an event as described in clause 5, references to shares in
clauses 3 and 5 shall include any consideration received by the Trustee for the Shares in
respect of which an Option is being exercised;
	 
	 	 	“Stamp Duty Regulations” means the Stamp Duty (Exempt Instruments) Regulations 1987;
	 
	 	 	“Start Date” means [   ];
	 
	 	 	“Subsidiaries” means those companies which are subsidiaries of Barclays within the meaning
of section 736 of the Companies Act 1985;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes 1988; and
	 
	 	 	“Trust Deed” means the deed dated 27 September 1996 establishing the Barclays Group (ESAS)
Employees’ Benefit Trust.
	 
	1.2	 	Any reference herein to a statutory provision shall include a reference to that provision as
amended or re-enacted from time to time. Where the context permits the singular shall include
the plural and vice versa and the masculine gender shall include the feminine and vice versa.
	 
	1.3	 	If there is any conflict between the terms and conditions of this Deed and the terms and
conditions of the Trust Deed and the Scheme, the terms and conditions of the Trust Deed and
the Scheme shall prevail.
	 
	2.	 	Grant of Option
	 
	 	 	The Trustee hereby grants the Option to the Optionholder subject to and in accordance with
the terms and conditions of this Deed.
	 
	3.	 	Exercise of Option
	 
	3.1	 	Subject to clauses 4 and 5, the Option may be exercised on one occasion only in whole or in
part by the Optionholder at any time within the Option Period by his giving to the Trustee at
its registered office at least 10 working days’ written notice. Such notice shall be
substantially in the form set out in the appendix hereto or in such other form and manner as
the Trustee may from time to time prescribe. Such notice shall specify the number of Option
Shares in respect of which the Option is being exercised. The date of exercise of the Option
(or the relevant portion of the Option as the case may be) shall be the date on which the
period of notice expires (or such earlier date specified by the Trustee following receipt of a
valid written notice of exercise from the Optionholder). On exercise of the Option, £1 will
be payable by the Optionholder or his personal representative(s)) in total for the Option
Shares acquired.
	 
	3.2	 	The Optionholder shall:

	 	(a)	 	supply with such notice this Deed and such other documentation as the Trustee
may require;
	 
	 	(b)	 	supply a cheque for £1; and
	 
	 	(c)	 	subject to clause 3.3, pay any such additional amount of which the Trustee may
notify the Optionholder in respect of any deduction on account of tax or similar
liabilities including social security contributions for which the Optionholder is or

 

 

	 	 	 	may be liable as may be required by law as a result of the exercise of the Option in
such manner as the Trustee may from time to time prescribe.

	3.3	 	The Trustee shall within 30 days after the date of exercise of the Option transfer the
appropriate number of Option Shares to the Optionholder (or to his nominee at the
Optionholder’s written direction). The appropriate number of Option Shares shall, unless
otherwise agreed by the Trustee and the Optionholder, be the number of Option Shares specified
in the notice served pursuant to clause 3.1, PROVIDED THAT where any member of the Group or
the Trustee is obliged to account for any tax or similar liabilities including social security
contributions for which the Optionholder is or may be liable in any jurisdiction as a result
of the exercise of the Option, the Trustee may sell sufficient of the Option Shares to meet
such liability. The Trustee shall pay such proceeds of sale of such Option Shares to the
relevant member of the Group to be held on trust on behalf of the Trustee to be paid to the
relevant tax or other authority to meet such liability.
	 
	4.	 	Limitations on Exercise of the Option
	 
	4.1	 	Subject to clauses 4.2, 4.3, 4.4 and 5, the Option may be exercised by the Optionholder at
any time during the Option Period. If the Option is not so exercised it shall lapse at the
end of the Option Period.
	 
	4.2	 	The Option shall be exercisable during the following consecutive periods over the number of
Option Shares specified below:

	 	(a)	 	the Option shall be exercisable in respect of [ ] of the Option Shares
on or after the Start Date up to but not including the third anniversary of the Start
Date. If the Option is exercised in whole or in part during this period the Option
shall forthwith lapse in respect of the remaining [ ] Option Shares;
	 
	 	(b)	 	the Option shall be exercisable in respect of [ ] of the Option Shares
on or after the third anniversary of the Start Date up to but not including the fifth
anniversary of the Start Date. If the Option is exercised, in whole or in part, during
this period the Option shall lapse forthwith in respect of the remaining [ ] Option
Shares; and
	 
	 	(c)	 	the Option shall be exercisable in respect of all of the Option Shares on or
after the fifth anniversary of the Start Date for the remainder of the Option Period.

	4.3	 	If the Optionholder ceases to be employed by the Group, the Option shall continue to be
exercisable in respect of the number of Option Shares in respect of which the Option would
have been exercisable in accordance with clause 4.2 as at the date of cessation of the
Optionholder’s employment with the Group. The Option may be exercised by the Optionholder at
any time before the earlier of the end of the Option Period and 12 months from the date of
cessation of employment and if not so exercised the Option shall lapse PROVIDED THAT if the
Optionholder ceases to be employed by the Group as a result of the relevant member of the
Group terminating the Optionholder’s employment by applying any provision for summary
dismissal in the Optionholder’s service contract with such member of the Group the Option
shall lapse on the date of such termination.
	 
	4.4	 	If the Optionholder dies his personal representative(s) may exercise the Option to the extent
that it was exercisable at the date of his death in accordance with clause 4.2. The Option
may be exercised at any time before the earlier of the end of the Option Period and within 12
months of the Optionholder’s death. If the Option is not so exercised it shall lapse.
	 
	4.5	 	For the purposes of this clause 4, where the employment of an Optionholder is terminated
without notice or on terms in lieu of notice it shall be deemed to cease on the date on

 

 

	 	 	which the termination takes effect and where such employment is terminated with notice it
shall be deemed to cease upon the date on which that notice is given.

	5.	 	Takeover, Reconstruction and Winding-up of Barclays
	 
	5.1	 	Clause 5.2 shall apply:

	 	(a)	 	if any person obtains Control of Barclays as a result of making:

	 	(i)	 	a general offer to acquire the whole of the issued share
capital of Barclays (other than that which is already owned by such person)
made on a condition such that if it is satisfied the person making the offer
will have Control of Barclays; or
	 
	 	(ii)	 	a general offer to acquire all the Shares (or such Shares as
are not already owned by such person); or

	 	(b)	 	if under section 425 of the Companies Act 1985 the Court sanctions an
arrangement between Barclays and its creditors or its members which, if it becomes
effective will result in a person obtaining Control of Barclays.

	5.2	 	The Optionholder may exercise the Option at any time to the extent that it was exercisable in
accordance with clause 4.2 on the date on which a person obtains Control before the earlier of
the end of the Option Period and the end of the appropriate period, as defined in clause 5.3.
If the Option is not so exercised it shall lapse.
	 
	5.3	 	The appropriate period referred to in clause 5.2 is:

	 	(a)	 	in a case falling within clause 5.1(a), a period commencing on the date when
the person making the offer has obtained Control of Barclays and any condition subject
to which the offer is made is satisfied and ending on the earlier of:

	 	(i)	 	six months after such date; and
	 
	 	(ii)	 	30 days before the last date on which the person making the
offer is permitted to issue a notice pursuant to section 429 of the Companies
Act 1985; and

	 	(b)	 	in a case falling within clause 5.1(b), a period of six months commencing with
the time when the Court sanctions the compromise or arrangement

	5.4	 	If Barclays gives notice of a general meeting to consider a resolution for the voluntary
winding-up of Barclays, the Optionholder may exercise the Option at any time to the extent
that it was exercisable on the date of such notice in accordance with clause 4.2 before the
earlier of the end of the Option Period and the period until such resolution is duly passed or
defeated or withdrawn PROVIDED THAT any exercise pursuant to this clause 5.4 shall be
conditional upon the said resolution being duly passed. If the Optionholder exercises the
Option pursuant to this clause 5.4 he shall be entitled to share in the assets of Barclays
with existing holders of the Shares in the same manner as he would have been entitled had the
Option Shares been registered in his name before the resolution was passed.
	 
	5.5	 	On the commencement of any liquidation of Barclays subject to clause 5.4 and otherwise than
in connection with a compromise or arrangement as referred to in clause 5.1(b) the Option
shall lapse.

 

 

	6.	 	Variation of Capital
	 
	6.1	 	Subject to paragraph 6.2, in the event of any increase or variation of the share capital of
Barclays (whenever effected) by way of capitalisation or rights issue, or sub-division,
consolidation or reduction of capital or other variation, the Trustee may make such
adjustments as it considers appropriate to the number of Shares comprised in the Option.
	 
	6.2	 	Any adjustment under paragraph 6.1 shall be subject to the Auditors confirming to the Trustee
that such adjustment is in their opinion fair and reasonable.
	 
	6.3	 	The Trustee shall notify the Optionholder in writing of any adjustments made under paragraph
6.1 as soon as practicable following the making of such adjustments.
	 
	7.	 	Administration
	 
	7.1	 	Any dispute regarding the interpretation of this Deed shall be determined by the Trustee,
having consulted the Board and after seeking such advice as it shall consider necessary, and
its decision shall be final and binding.
	 
	7.2	 	Any notice or other communication in connection with this Deed may be given by personal
delivery or by sending the same by post:

	 	(a)	 	in the case of a company to its registered office; and
	 
	 	(b)	 	in the case of an individual to his last known address, or, where he is a
director or employee of the Group, either to his last known address or to the address
of the place of business at which he performs the whole or substantially the whole of
the duties of his office or employment.

	 	 	Where a notice or other communication is given by first-class post, it shall be deemed to
have been received 48 hours after it was put into the post properly addressed and stamped.
	 
	8.	 	Additional Provisions
	 
	8.1	 	The Option is personal to the Optionholder and may not be transferred to or subject to the
provisions of clause 4.4, exercised by any other person.
	 
	8.2	 	The Option shall be subject to the condition that no Option Shares shall be transferred to
the Optionholder by the Trustee following the exercise of the Option if such transfer would be
contrary to any enactment or regulation for the time being in force of the United Kingdom or
of any other country having jurisdiction in relation thereto. The Trustee shall not be bound
to take any action to obtain the consent of any governmental authority to such transfer or to
take any action to ensure that any such transfer shall be in accordance with any such
enactment or regulation if such action could in the opinion of the Trustee be unduly onerous.
	 
	8.3	 	The rights and obligations of the Optionholder under his terms of employment with any member
of Group shall not be affected by the grant of the Option and this Deed shall not afford to
the Optionholder any right to continued employment or any additional right to compensation in
consequence of the termination of his employment for any reason whatsoever.
	 
	8.4	 	In any matter in which they are required to act hereunder the Auditors shall be deemed to be
acting as experts and not as arbitrators.

 

 

	8.5	 	In accordance with the Stamp Duty Regulations the Trustee hereby certifies this Deed as an
instrument falling within category L specified in the Schedule to the Stamp Duty Regulations
and in accordance with the Stamp Duty Regulations it will not require to be stamped with a
stamp denoting that it is duly stamped or that it is not chargeable with any duty.

 

 

[Example]

Appendix

Notice of Exercise of Voluntary ESAS Option

	 	 

	To: 

	Bailhache Labesse Trustees Limited
	 

	PO Box 207
	 

	13-14 Esplanade
	 

	St Helier
	 

	Jersey
	 

	Channel Islands, JE1 1BD,

I wish to exercise my Option granted on [   ]1 over [
   ]2 Shares. I enclose my cheque for £1 made payable to “Bailhache Labesse Trustees
Limited

I hereby request you to treat this notice as my application to the Trustee to transfer the above
number of fully paid Shares to me/my nominee.3 I acknowledge that the Trustee will sell
such number of Shares which will (after deducting the costs of sale) provide sufficient funds to
account for tax and similar liabilities on my behalf and then procure that my name/my nominee’s
name is placed on the Register of Members as the holder of the remaining Shares and arrange for
me/my nominee to be sent a share certificate in respect of the same (or such other evidence of
allotment and issue as may be applicable) to the address given below.

Please note:

	1.	 	When completing your tax return for the relevant tax year you will need to declare the
exercise of the Option (but you should indicate that the taxable amount has already been
included in your taxable pay for the year) and the disposal of Shares on your behalf by the
Trustee. You will be sent details of the relevant transaction after the exercise has taken
place.
	 
	2.	 	If you are the personal representatives of the optionholder you should include a certified
copy of the letters of administration or grant of probate when you return this notice
together with details of the name and address of the nominee in which you would like the
Shares registered. References in the above notice will be deemed altered accordingly.

Dated

	 	 	 	 	 	 	 

	Signed

	 	 	 	 	 	Name of Nominee
	 

	 	 	 	 	 	 
	(Optionholder)

	 	 	 	 	 	(if applicable) (Block capitals)
	 
	 	 	 	 	 	 
	Full Name

	 	 	 	 	 	Address of Nominee
	 

	 	 	 	 	 	 
	(Block Capitals)

	 	 	 	 	 	(Block Capitals)
	 
	 	 	 	 	 	 
	Full Address
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	(Block Capitals)
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	Contact telephone number

	 	 	 	 	 	Reference
	 

	 	 
	 	 	 	 

 

			
	1	 	Insert date of Option Deed.
	 
	2	 	Insert the number of Shares you want to
acquire if you are exercising in part or ALL if you want to exercise in full.
	 
	3	 	If you wish the Shares to be registered in
the name of your nominee please delete the references to “you” and give your
nominee’s details below.

 

In Witness whereof this document has been executed as a deed the day and year first before
written.

	 	 	 

	EXECUTED as a deed by 

Bailhache Labesse Trustees Limited 

acting by:

	)

)

)	 

Authorised Signatory

Authorised Signatory

 

 

SCHEDULE

Barclays PLC

*Rules of the Barclays New Joiners Share Award Plan

 

			
	*	 	Rules of ESAS applicable to new employees of
Barclays.

 

INDEX

Rules of the Barclays New Joiners Share Award Plan

	 	 	 	 	 	 	 

	1.

	 	Definitions and Interpretation
	 	 	1	 
	 
	2.

	 	Grant of Awards
	 	 	2	 
	 
	3.

	 	Awards
	 	 	3	 
	 
	4.

	 	Dividends
	 	 	3	 
	 
	5.

	 	Release of Shares on the Release Date
	 	 	3	 
	 
	6.

	 	Manner of Release of Shares and Rights of Participants on Release
	 	 	4	 
	 
	7.

	 	Further Conditions of Release and Waiver of Conditions
	 	 	5	 
	 
	8.

	 	Cessation of Employment of Participant
	 	 	5	 
	 
	9.

	 	Takeover, Reconstruction and Winding-up of Barclays
	 	 	6	 
	 
	10.

	 	Variation of Capital
	 	 	6	 
	 
	11.

	 	Administration of the Plan
	 	 	6	 
	 
	12.

	 	Amendment of the Plan
	 	 	6	 
	 
	13.

	 	Termination of the Plan
	 	 	6	 
	 
	14.

	 	General Provisions
	 	 	6	 

 

Barclays PLC

Rules of the Barclays New Joiners Share Award Plan

	 	 	The following rules shall apply in relation to payments or applications of the Trust Fund in
accordance with clause 2 of the Trust Deed.
	 
	1.	 	Definitions and Interpretation
	 
	1.1	 	In the Plan:
	 
	 	 	“Adoption Date” means 24 March 1994;
	 
	 	 	“Auditors” means the auditors for the time being of Barclays PLC or such other independent
suitably qualified person as the Trustee may from time to time nominate;
	 
	 	 	“Award” means a provisional allocation of Shares made by the Trustee as described in clause
2.4 of the Trust Deed in accordance with paragraph 2 and ‘awarded’ shall be construed
accordingly;
	 
	 	 	“Award Date” means the date specified as the award date in the Award Letter by the Trustee,
after consultation between the Trustee and the Board;
	 
	 	 	“Award Letter” means the letter in such form as may be prescribed from time to time by the
Trustee sent by the Trustee to a Participant informing the Participant of the grant of
an Award to him;
	 
	 	 	“Barclays” means Barclays PLC, registered in England No.48839;
	 
	 	 	“Board” means the board of directors for the time being of Barclays or a duly appointed
committee thereof PROVIDED THAT if any person obtains Control of Barclays, the Board or
relevant committee as appropriate shall mean the members of the Board or such committee
as the case may be immediately before such Control is obtained;
	 
	 	 	“Company” means Barclays Bank PLC, registered in England No.1026167;
	 
	 	 	“Companies Act” means the Companies Act 1985;
	 
	 	 	“Control” means the control of a company within the meaning given to that expression by
Section 840 of the Taxes Act and a person shall be deemed to have control of a company
if he and others acting in concert with him have together obtained control of a company
within such meaning;
	 
	 	 	“Eligible Employee” means any person who on the relevant Award Date is a Beneficiary as
defined in the Trust Deed by reason of his having commenced employment within the Group
in the 6 months (or such other period determined by the Trustee having first consulted
the Board) preceding the Award Date;
	 
	 	 	“Group” means Barclays, the Company and all of the Subsidiaries and “member of the Group”
shall be construed accordingly;
	 
	 	 	“Market Value” means the market value of a Share as determined by the Trustee on any day
having consulted the Board;

 

	 	 	“Participant” means a person who holds an Award or where applicable his personal
representatives;

	 	 	“Plan” means the Barclays New Joiners Share Award Plan herein contained as amended from time
to time in accordance with paragraph 12;
	 
	 	 	“Release Date” means the date specified in an Award Letter on which Shares may be released
to a Participant in accordance with paragraph 6 being no later than ten years from the
Award Date or such other date as may be specified by the Trustee from time to time;
	 
	 	 	“Shares” means ordinary shares in the capital of Barclays or any other class of share in the
capital of Barclays admitted to the Official List of the UK Listing Authority;
	 
	 	 	“Subsidiaries” mean those companies which are subsidiaries of the Company within the meaning
of section 736 of the Companies Act;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988;
	 
	 	 	“Trust” means the Barclays Group (ESAS) Employees’ Benefit Trust established by the Trust
Deed;
	 
	 	 	“Trust Deed” means the deed dated 27 September 1996 between the Company (1) and Mourant &
Co. Trustees Limited (2) as modified or amended from time to time;
	 
	 	 	“Trustee” means the trustee for the time being of the Trust; and
	 
	 	 	“UK Listing Authority” means the UK Listing Authority within the meaning given to
that expression in the Listing Rules made by the Financial Services Authority pursuant
to its appointment as the relevant competent authority under the Official Listing of
Securities (Change of Competent Authority) Regulations 2000.
	 
	1.2	 	Any reference herein to a statutory provision shall include a reference to that provision as
amended or re-enacted from time to time. Where the context permits the singular shall include
the plural and vice versa and the masculine gender shall include the feminine and vice versa.
	 
	1.3	 	The Plan is subject to the terms of the Trust Deed. If there is any conflict between such
terms and the terms of the Plan, the terms of the Trust Deed shall prevail.
	 
	2.	 	Grant of Awards
	 
	2.1	 	Subject to paragraphs 2.4 and 2.5, the Trustee may, in its absolute discretion, having first
consulted the Board, grant an Award in accordance with the rules of the Plan to any Eligible
Employee.
	 
	2.2	 	An Award shall, unless the Trustee determines otherwise, be granted in respect of a fixed
number of Shares.
	 
	2.3	 	The grant of an Award shall be evidenced by an Award Letter which shall specify:

	 	(a)	 	the number of Shares awarded or the formula by which such number may be
determined, if relevant;
	 
	 	(b)	 	the Award Date; and

- 2 -

 

	 	(c)	 	any conditions which may have to be satisfied before the release of any such
Shares.

	2.4	 	The grant of any Award by the Trustee is subject to the obtaining of any approval or consent
as may be required by the Listing Rules of the UK Listing Authority, The City Code on
Take-Overs and Mergers or by any other regulation or enactment.
	 
	2.5	 	The grant of an Award shall not in any circumstances whatsoever:

	 	(a)	 	constitute the acquisition by a Participant of an interest in the Shares
awarded to him or the acquisition of a right to acquire the Shares awarded to him; or
	 
	 	(b)	 	entitle a Participant to claim any interest in the Trust Fund or to compel the
Trustee to pay or apply any of the capital or income comprised in the Trust Fund to or
for the benefit of a Participant.

	 	 	Until their release on the Release Date, a Participant shall have no interest in the Shares
subject to his Award. A Participant shall not be entitled to any dividends or other
distributions made in respect of the Shares awarded to him. A Participant shall have no
right until their release on the Release Date to vote in respect of the Shares subject to
his Award. There shall be no consideration payable for the grant of an Award.
	 
	3.	 	Awards
	 
	3.1	 	Any Award granted to a Participant is personal to him and shall not be capable of being
transferred or otherwise disposed of by a Participant. Any such Award shall lapse forthwith
if it is so transferred or otherwise disposed of or if a Participant is adjudicated bankrupt.
	 
	3.2	 	A Participant shall be entitled at any time to renounce, surrender or cancel or agree to the
cancellation of an Award.
	 
	4.	 	Dividends
	 
	4.1	 	The Trustee may, in its absolute discretion, apply any dividends (net of any tax payable in
respect of such dividends by the Trustee) which it receives in respect of any Shares which are
available for release to purchase further Shares.
	 
	4.2	 	The Trustee may, in its absolute discretion, release such further Shares acquired pursuant to
paragraph 4.1 (or Shares received by the Trustee as a result of the Trustee electing to
receive any Scrip Dividend offered by Barclays) or, at its discretion, a cash sum representing
the amount of dividends (net of any tax payable in respect of them by the Trustee), received
in respect of any such Shares (less any income tax, national insurance contributions and other
withholdings required by legislation at that time), to a Participant at the same time as the
release of any Shares available for release on the Release Date.
	 
	5.	 	Release of Shares on the Release Date
	 
	5.1	 	On each Release Date specified in an Award Letter the Trustee shall determine, in its
absolute discretion having first consulted the Board, whether or not:

	 	(a)	 	any conditions specified in the Award Letter have been satisfied;
	 
	 	(b)	 	any conditions which may have been set by the Trustee after the Award Date as
permitted under paragraph 7 have been satisfied.

	 	 	The Trustee shall be entitled to rely on any information given by the Board for these
purposes.

- 3 -

 

	5.2	 	If the Trustee determines that paragraphs 5.1(a) and (b) have been fulfilled, the Trustee may
in its absolute discretion release to the Participant the number of Shares specified in the
Award Letter as available for release to the Participant on the relevant Release Date,
including any Shares acquired by the Trustee as described in paragraph 4.
	 
	5.3	 	If the Trustee determines that paragraphs 5.1(a) and, if relevant, (b) have not been fully
satisfied or have not been satisfied at all, the Trustee may in its absolute discretion
release to the Participant:

	 	(a)	 	the number of Shares specified as available for release to the Participant on
the relevant Release Date together with any Shares acquired by the Trustee pursuant to
paragraph 4; or
	 
	 	(b)	 	a lower number of such Shares; or
	 
	 	(c)	 	no Shares at all.

	5.4	 	The release of any Shares under the Plan shall be subject to the obtaining of such approval
or consent as is mentioned in paragraph 2.4.
	 
	5.5	 	The Trustee shall, subject to paragraphs 5.1, 5.2 , 5.3 and 5.4 release Shares to a
Participant in the period of 21 days following a Release Date. Any Shares available for
release which are not released within the period of 21 days following a Release Date shall
cease to be available for release at the end of such period.
	 
	5.6	 	Notwithstanding anything in the Plan to the contrary, Shares under an Award shall be actually
or constructively received by a Participant by the later of:

	 	(i)	 	the date that is 21/2 months from the end of the Participant’s first taxable year
in which the Trustee determines in its absolute discretion to release Shares under an
Award to the Participant; or
	 
	 	(ii)	 	the date that is 21/2 months from the end of Barclays’ first taxable year in
which the Trustee determines in its absolute discretion to release Shares under an
Award to a Participant.

	6.	 	Manner of Release of Shares and Rights of Participants on Release
	 
	6.1	 	If the Trustee determines that any Shares shall be released to a Participant pursuant to
paragraphs 5, 8 or 9 then:

	 	(a)	 	the Trustee shall inform the Participant in writing within the period of 21
days following such release of the number of Shares released, the date of release and
the Market Value of the Shares released;
	 
	 	(b)	 	the Participant shall from the date of such determination become beneficially
entitled to any such Shares and shall have the right to receive all dividends paid to
the Trustee on such Shares (net of any tax payable on such dividends by the Trustee)
and the right to direct the Trustee how to vote in respect of such Shares. The Trustee
shall vote in accordance with any such instructions; and
	 
	 	(c)	 	the Participant shall be entitled to require the Trustee to transfer legal
title to such Shares to the Participant.

	6.2	 	The Trustee may sell such number of the Shares which it has determined to release to a
Participant pursuant to paragraph 5 to meet any obligation of the Trustee to deduct tax and
national insurance contributions in respect of the Shares which it has so determined to
release.

- 4 -

 

	6.3	 	Shares released shall have the same beneficial rights as other Shares in issue on such date
except that they will not entitle holders to receive any dividends or other distributions from
the Trustee where such dividends or other distributions were declared for payment to holders
of Shares on the Register of Members at a record date which precedes the date on which the
Shares in question were released.
	 
	7.	 	Further Conditions of Release and Waiver of Conditions
	 
	7.1	 	The Trustee may, at any time after an Award Date, impose such further conditions on the
release of Shares subject to an Award as it may deem appropriate, having first consulted the
Board. The Trustee shall notify the Participant in writing of its decision as soon as
reasonably practicable.
	 
	7.2	 	The Trustee may, having first consulted the Board, subsequently waive or amend any condition
imposed in respect of any Award.
	 
	8.	 	Cessation of Employment of Participant
	 
	8.1	 	If a Participant ceases to be employed by the Group by reason of:

	 	(a)	 	death;
	 
	 	(b)	 	injury;
	 
	 	(c)	 	disability;
	 
	 	(d)	 	ill-health;
	 
	 	(e)	 	dismissal for redundancy within the meaning of the Employment Rights Act 1996;
	 
	 	(f)	 	the company by which he is employed ceasing to be a member of the Group; or
	 
	 	(g)	 	the undertaking in which he is employed being transferred to a transferee which
is not a member of the Group

	 	 	the Trustee may, in its absolute discretion, having first consulted the Board, either
release to the Participant, or, if the cessation is by reason of his death, to his wife,
children under the age of 18 or step-children under the age of 18 as the Trustee shall
determine, such number of unreleased Shares subject to an Award as the Trustee shall in its
absolute discretion determine in accordance with paragraphs 5.4, 5.5 and paragraph 6.
	 
	8.2	 	If a Participant ceases to be employed by the Group by reason of retirement with the
agreement of the company by which he is employed, the Trustee may, in its absolute discretion
having first consulted the Board, release to him such number of unreleased Shares subject to
an Award as the Trustee shall in its absolute discretion determine in accordance with
paragraphs 5.4, 5.5 and paragraph 6.
	 
	8.3	 	If a Participant ceases to be employed by the Group for any other reason, any unreleased
Shares shall immediately cease to be available for release to such Participant unless the
Trustee, having first consulted the Board, shall in its absolute discretion decide to release
all or some only of any such unreleased Shares and/or any Shares acquired by the Trustee
pursuant to paragraph 4 in accordance with paragraphs 5.4, 5.5 and 6.

	8.4	 	For the purposes of this paragraph 8 where a Participant’s employment is terminated without
notice or on terms in lieu of notice it shall be deemed to cease on the date on which the
termination takes effect and where such employment is terminated with notice it shall be
deemed to cease upon the date that notice expires.

- 5 -

 

	9.	 	Takeover, Reconstruction and Winding-up of Barclays
	 
	 	 	If any person obtains Control of Barclays (within the meaning of section 840 of the Taxes
Act) as a result of making a general offer to acquire Shares, or having obtained Control
makes such an offer, or if any person becomes bound or entitled to acquire Shares under
sections 428-430F of the Companies Act, or if under section 425 of the Companies Act the
Court sanctions a compromise or arrangement of Barclays or if Barclays passes a resolution
for voluntary winding up, or if an order is made for compulsory winding up of Barclays, the
Trustee having first consulted the Board shall in its absolute discretion determine the
manner in which any unreleased Shares available for release under an Award shall be dealt
with.
	 
	10.	 	Variation of Capital
	 
	10.1	 	Subject to paragraph 10.2, in the event of any increase or variation of the share capital of
Barclays (whenever effected) by way of capitalisation or rights issue, or sub-division,
consolidation or reduction of capital or other variation, the Trustee may make such
adjustments as it considers appropriate to the number of Shares comprised in any Award.
	 
	10.2	 	Any adjustment under paragraph 10.1 shall be subject to the Auditors confirming that such
adjustment is in their opinion fair and reasonable.
	 
	10.3	 	The Trustee shall give notice in writing to the Participant of any adjustments made under
paragraph 10.1 as soon as practicable following the making of such adjustments.
	 
	11.	 	Administration of the Plan
	 
	 	 	If there is any dispute as to the rights and obligations of any person under the Plan or any
question concerning the construction or effect of the Plan or any other question in
connection with the Plan, the Trustee shall determine the same and (other than in the case
of a matter to be certified by the Auditors in accordance with the Plan) such determination
shall be final and binding on all persons.
	 
	12.	 	Amendment of the Plan
	 
	12.1	 	The Plan may be amended in any respect by resolution of the Trustee with the consent of the
Company.
	 
	12.2	 	Written notice of any material amendment to the Plan shall be given to all Participants.
	 
	13.	 	Termination of the Plan
	 
	 	 	The Trustee may, having first consulted the Board, at any time suspend or terminate the
operation of the Plan in which case no further Awards will be granted but in all other
respects the provisions of the Plan will remain in force.
	 
	14.	 	General Provisions
	 
	14.1	 	Terms of office or employment
	 
	 	 	The rights and obligations of any Participant under the terms of his office or employment
with any member of the Group shall not be affected by his participation in the Plan or any
right which he may have to participate in the Plan. The Plan shall not entitle the
Participant to any rights of continued employment with any member of the Group. Any
Participant shall waive any and all rights to compensation or damages in consequence of the
termination of his office of employment for any reason whatsoever insofar as those rights
arise or may arise from his ceasing to have rights under the Plan as a result of such
termination.

- 6 -

 

	14.2	 	Tax and other similar liabilities
	 
	 	 	Any liability of a Participant to taxation or social security contributions or similar
liabilities in respect of an Award shall be for the account of the relevant Participant.
The Trustee may make an Award and the transfer of Shares pursuant to it conditional on the
Participant complying with arrangements specified by the Trustee for the payment of any
taxation, employee’s social security contributions or employer’s social security obligations
(including, without limitation, the deduction of taxation at source).
	 
	14.3	 	Auditors as experts
	 
	 	 	In any matter in which they are required to act under the Plan, the Auditors shall be deemed
to be acting as experts and not arbitrators.
	 
	14.4	 	Notices
	 
	 	 	Any notice or other communication under or in connection with the Plan may be given by
personal delivery, electronically, or by sending the same by post in the case of a company
to its registered office, and in the case of an individual to his last known address, or,
where he is a director or employee of the Group, either to his last known address or to the
address of the place of business at which he performs the whole or substantially the whole
of the duties of his office or employment, and where a notice or other communication is
given by first-class post, it shall be deemed to have been received 48 hours after it was
put into the post properly addressed and stamped.
	 
	14.5	 	Regulation
	 
	 	 	Every Award shall be subject to the condition that no Shares shall be released to or
transferred to a Participant following the release of Shares under Award if such release or
transfer would be contrary to any enactment or regulation for the time being in force of the
United Kingdom or any other country having jurisdiction in relation thereto. The Trustee
shall not be bound to take any action to obtain the consent of any government or authority
to such transfer or to take any action to ensure that any such transfer shall be in
accordance with any enactment or regulation if such action could in the opinion of the
Trustee be unduly onerous.
	 
	14.6	 	Data Protection provisions

	 	(a)	 	The Company and the Trustee will store and process information about a
Participant on their computers and in other ways. By “information about a Participant”
the Company and the Trustee mean personal information they have obtained from the
Participant, the Group employing company and any other Group companies or other
organisations in anticipation of a Participant’s participation in the Plan and during
the term of the Plan.
	 
	 	(b)	 	The Company and the Trustee will use information about a Participant to manage
and administer the Plan, give the Participant information about the Plan and his Award,
to develop and improve their services to the Participant and other customers and to
protect their interests. The Trustee agrees to apply the same levels of protection to
information about a Participant as the Company is required to apply in the UK.
	 
	 	(c)	 	The Company and the Trustee may give information about a Participant and his
participation in the Plan to the following:

	 	(i)	 	a Participant’s Group employing company and it agents or
service providers where disclosure is necessary to enable the Company or the
Trustee to discharge their duties and obligations in the management and

- 7 -

 

	 	 	 	administration of the Plan (including any disclosure of information as may be
necessary to enable the Group employing company to comply with the requirements
of any relevant tax, social security or other governmental authority). (For the
purposes of this clause “Group employing company” includes any company or other
entity of the Group which may become the Participant’s employer during the term
of the Plan and any other company or entity which has a duty to comply with any
requirements imposed any relevant tax, social security or other governmental
authority in connection with his participation in the Plan.)
	 
	 	(ii)	 	people who provide a service to the Company or the Trustee or
are acting as their agents on the understanding that they will keep the
information confidential.
	 
	 	(iii)	 	anyone to whom the Company or the Trustee transfers or may
transfer its rights and duties under the Plan.
	 
	 	(iv)	 	where the Company or the Trustee has a duty to do so or if the
law allows the Company or the Trustee to do so (including any relevant tax,
social security or other governmental authority),

	 	 	 	otherwise the Company and the Trustee will keep information about a Participant
confidential.
	 
	 	(d)	 	If the Company or the Trustee transfer information about a Participant to a
service provider or agent in another country, they will procure that the service
provider or agent agrees to apply the same levels of protection as the Company and the
Trustee are required to apply in the UK and other EU jurisdictions and to use
information about a Participant only for the purpose of providing the service to the
Company or the Trustee.

	14.7	 	Governing law
	 
	 	 	The Plan shall be governed and construed in accordance with English law.

- 8 -

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