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Exhibit 4.1    
    

Prudential plc  

 
 

RESTRICTED SHARE PLAN    
    

RULES FOR 2004 AWARDS  

 

Contents  

	page 2	 	1	 	Purpose
	

page 2	
 	

2	
 	

Definitions
	

page 3	
 	

3	
 	

Eligibility
	

page 3	
 	

4	
 	

Grant of Awards
	

page 4	
 	

5	
 	

Calculation of Awards
	

page 4	
 	

6	
 	

Restriction on transfer of awards
	

page 5	
 	

7	
 	

Options over shares
	

page 5	
 	

8	
 	

Release of awards
	

page 7	
 	

9	
 	

Transfer of shares
	

page 7	
 	

10	
 	

Change of control
	

page 7	
 	

11	
 	

Adjustments
	

page 7	
 	

12	
 	

Administration of scheme
	

page 9	
 	

13	
 	

Amendment—termination
	

page 9	
 	

14	
 	

Effective date of plan
	

page 9	
 	

15	
 	

Term of plan
	

page 9	
 	

16	
 	

Governing law
	

page 10	
 	

Schedule 1—award letter
	

page 11	
 	

Schedule 2—Total shareholder return

1

 

1 Purpose  

	1.1
	The
Prudential Restricted Share Plan ('the Plan') is an employees' share scheme (within the meaning of section 743 of the Companies Act 1985) for encouraging or facilitating
the holding of shares in Prudential plc ('the Company') by or for the benefit of employees of the Company and its Subsidiaries.

	1.2
	The
Company and any of its Subsidiaries may nominate Eligible Employees to participate in the Plan and will each bear the associated costs of that participation by providing funds to
the Trustees of the Prudential plc Employee Share Trust in accordance with the terms of the Trust Deed (as amended or supplemented from time to time). 

2 Definitions  

	2.1
	In
these Rules, unless the context otherwise requires, the following expressions have the following meanings:

	2.1.1
	'Award
Date' means the effective date of an Award Letter and unless otherwise stated therein shall be the date thereof.

	2.1.2
	'Award
Letter' means a letter from the Company to a Participant setting out the specific terms of a conditional undertaking in respect of the grant of an Option over Shares in the
form, or substantially in the form, of Schedule 1 to these Rules, with such modifications or variations generally or in the case of individual Participants as the Committee may determine.

	2.1.3
	'Close
Period' means any period during which the Participant would not be given clearance to deal in Shares under the Company's rules on share dealing.

	2.1.4
	'Committee'
means a committee of at least two executives appointed by the Remuneration Committee to administer the Plan but no executive shall take part in any determination by the
Committee relating to his or her own participation in the Plan.

	2.1.5
	'Company'
means Prudential plc.

	2.1.6
	'Comparator
Companies' means those companies the prices of whose ordinary shares comprise the FT-SE 100 Share Index (including the Company) on the first day of the
relevant Measurement Period on which the London Stock Exchange is open for trading.

	2.1.7
	'Disability'
means permanent disability within the meaning of any permanent health insurance or equivalent plan or any occupational pension plan established by a Group Company of
which the Participant is a member.

	2.1.8
	'Eligible
Employee' means any employee of a Group Company.

	2.1.9
	'Group'
means the Company and its Subsidiaries.

	2.1.10
	'Group
Company' means a company which is a member of the Group.

	2.1.11
	'Market
Value' in relation to a share means its market value as calculated in accordance with Section 272(3) of the Taxation of Chargeable Gains Act 1992.

	2.1.12
	'Measurement
Period' means the period beginning on 1 January in the year of an Award Date and ending on the 31 December preceding the third anniversary of the Award Date as
determined in accordance with Rule 7.

	2.1.13
	'Option'
means the right granted to a Participant to purchase from the Trustees for no consideration Shares which are the subject of an Award Letter and exercisable at any time
during the period of seven years following the grant. 

2

 
	2.1.14
	'Participant'
means an Eligible Employee to whom an Award letter has been issued under the Plan which has not lapsed.

	2.1.15
	'Plan'
means the Prudential Restricted Share Plan constituted by these Rules as amended from time to time.

	2.1.16
	'Remuneration
Committee' means the remuneration committee of the board of directors of the Company.

	2.1.17
	'Retirement'
means termination of employment with a Group Company on or after attaining normal retirement age pursuant to the rules of any occupational pension plan of which the
Participant is a member and which is established by a Group Company, or on any earlier date at which the Participant is bound by his contract of employment to retire or on which the Participant
retires with the consent of the relevant Group Company.

	2.1.18
	'Salary'
means annual basic salary and does not include any bonus payment or payment in lieu of pension contributions. In the case of a Participant whose normal place of business
is outside the United Kingdom the amount of salary shall be a notional figure determined for the purposes of the Plan by the Committee.

	2.1.19
	'Share'
means a share in the capital of the Company.

	2.1.20
	'Subsidiary'
means any company which is at the relevant time a subsidiary of the Company within the definition in section 736, Companies Act 1985.

	2.1.21
	'TSR'
means Total Shareholder Return, calculated in accordance with Schedule 2.

	2.1.22
	'Trustees'
means the trustee or trustees from time to time of the Prudential plc Employee Share Trust constituted by the Trust Deed.

	2.1.23
	'Trust
Deed' means the Trust Deed dated 16 October 1992 entered into between the Company and BWCI Trust Company Limited.

	2.2
	References
to any statute or statutory instrument or to any part or parts thereof include any modification, amendment or re-enactment thereof for the time being in force.

	2.3
	Words
of the masculine gender include the feminine and vice versa and words in the singular include the plural and vice versa unless, in either case, the context otherwise requires or
the contrary is stated. 

3 Eligibility  

 The following Eligible Employees may become Participants: 

	3.1
	Executive
Directors of the Company; and

	3.2
	any
other employee of a Group Company who is nominated by that Group Company and approved by the Committee. 

4 Grant of awards  

	4.1
	Award
Letters shall be issued to Eligible Employees in accordance with the procedures set out in this Rule 4.

	4.2
	The
Committee shall have the authority to issue Award Letters under the Plan to such Eligible Employees as have been selected by a Group Company for the purpose as the Committee in
its absolute discretion thinks fit. 

3

 
	4.3
	The
Committee shall only issue an Award Letter to an Eligible Employee who is a director of the Company or exercise any powers under the Plan in relation to a director of the Company
with the prior approval of the Remuneration Committee.

	4.4
	No
Award letter shall be granted to an Eligible Employee if the grant would not be permissible because it would occur:

	4.4.1
	during
a Close Period; or

	4.4.2
	at
a time when such a grant is prohibited in a jurisdiction applicable to the Eligible Employee.

	4.5
	Shares
may be purchased or otherwise acquired or appropriated by the Trustees in accordance with the directions of the Committee to meet the potential obligations of the Trustees
under an Award Letter at any time prior to the grant of an Option over the Shares which are the subject of such Award Letter.

	4.6
	The
Company shall provide (and shall procure that any Group Company which employs Participants provides) sufficient monies to enable the Trustees to, and will use its best endeavours
to procure that the Trustees will, acquire sufficient Shares to satisfy the Options granted to Participants. 

5 Calculation of awards  

	5.1
	The
value of the maximum number of Shares which are the subject of an Award Letter shall be as determined by the Committee, but shall not exceed the following percentage of the
Participant's Salary at the Award Date namely:

	5.1.1
	Group
Chief Executive of the Company—not exceeding 200%.

	5.1.2
	Other
Executive Directors of the Company and Senior Executives approved by the Committee—not exceeding 160%.

	5.1.3
	Senior
Eligible Employees—not exceeding 60%.

	5.1.4
	Other
Eligible Employees—not exceeding 40%.

	5.2
	If
a Participant becomes an Eligible Employee during the calendar year of the Award Date the value of the maximum number of Shares which are the subject of such Participant's Award
Letter shall be all or such proportion of the full percentage applicable to that Participant as may be determined by the Committee.

	5.3
	The
maximum number of Shares to which a Participant may become entitled under an Award Letter shall be calculated by dividing the value determined in accordance with Rules 5.1
and 5.2 by the average value of a Share during the calendar year preceding the relevant Award Date (on a basis determined by the Committee but calculated by reference to its Market Value during such
year) and rounding up to the nearest whole number of Shares. 

6 Restriction on transfer of awards  

	6.1
	An
Award Letter shall be personal to a Participant and neither an Award Letter nor any interest in an Award Letter may be transferred, assigned, pledged, charged or otherwise dealt
with by a Participant for the benefit of any person other than by way of transfer to the Participant's personal representatives in the event of the Participant's death (in which case the provisions of
Rule 8.5 shall apply).

	6.2
	If
a Participant deals or attempts to deal with an Award Letter or any interest in an Award Letter in breach of Rule 6.1 the provisions of such Award Letter shall lapse
forthwith. 

4

 

7 Options over shares  

	7.1
	The
Trustees shall grant to each Participant an Option over shares which are the subject of an Award Letter to the extent that the performance requirements set out in this
Rule 7 are achieved and if the Remuneration Committee confirms to the Trustees that the underlying financial performance of the Company justifies the grant.

	7.2
	As
soon as practicable following the Measurement Period ending on the 31 December preceding the third anniversary of the Award Date the TSR of each of the Comparator Companies which
are still quoted on the London Stock Exchange at the end of the Measurement Period shall be listed in order so that the one having the highest TSR is ranked first.

	7.3
	If
the list referred to in Rule 7.2 indicates that the Company is in the top 20% of the Comparator Companies in the list the Option will be granted over all the Shares which
are the subject of the relevant Award Letter as from the third anniversary of the relevant Award Date.

	7.4
	If
the list referred to in Rule 7.2 indicates that the Company is in the bottom 50% of the Comparator Companies in the list no Option will be granted over the Shares which are
the subject of the relevant Award Letter.

	7.5
	If
neither Rule 7.3 nor Rule 7.4 applies the Option will be granted over a proportion of the maximum number of the Shares which are the subject of the Award Letter. Such
proportion shall be determined on a straight progression from 25% if the Company is at the 50th percentile of the Comparator Companies in the list, to the maximum number of Shares which are the
subject of the Award Letter if the Company is in the top 20th percentile of such Comparator Companies. Such Option shall be rounded up the nearest whole number of shares and any interest of the
Participant in the balance of the Shares which are the subject of such Award Letter shall lapse.

	7.6
	As
soon as reasonably practicable after the list referred to in Rule 7.2 has been prepared and the Remuneration Committee has confirmed to the Trustees that the underlying
financial performance of the Company justifies the grant of the Options referred to in Rule 7.1 the Company shall forward a copy of the list to each Participant together with a certificate
executed as a deed by the Trustees evidencing the Option granted to such Participant. If the Remuneration Committee does not so confirm within six months following the end of the Measurement Period
the relevant Award Letter will lapse. 

8 Release of awards  

	8.1
	An
Option may be exercised in whole or in part in accordance with its terms. The Participant shall deliver to the Company a notice in writing in such form as may be prescribed from
time to time by the Directors (which may be endorsed on the Option certificate) stating therein the number of Shares in respect of which the Participant desires to exercise the Option, together with
the relevant Option certificate.

	8.2
	The
notice shall be expressed to take effect immediately upon its receipt by the Company and such date shall constitute the date of exercise of such Option. A notice shall be of no
effect unless received by the Company before the expiry of the period in which an Option may be exercised. Upon exercise of the Option the Trustees shall transfer the relevant Shares to the order of
the Participant.

	8.3
	A
Participant shall not be entitled to exercise an Option pursuant to this Rule during a Close Period or at any time when the exercise is prohibited in a jurisdiction applicable to
the Participant. 

5

 
	8.4
	If
the aggregate number of Shares in respect of which an Option certificate has been delivered to the Company in accordance with sub-Rule 8.1 above exceeds the
number of Shares in respect of which the Participant has stated in the accompanying notice that the Option is to be exercised, the Company shall in due course issue to the Participant an Option
certificate in respect of the balance, which shall state the date on which the Option was exercised in part.

	8.5
	If
a Participant dies his or her personal representative may exercise any subsisting Option within 12 months after the date of death. In addition the Committee may in its
absolute discretion instruct the Trustees to transfer to the Participant any Shares which are the subject of a subsisting Award Letter taking into account the length of the period since the Award Date
and the underlying financial performance of the Company during such period. To the extent that the discretion is not exercised within the 6 months following the date of death the Award Letter
will lapse.

	8.6
	If
a Participant ceases to be employed by a Group Company for any reason other than death the Participant may exercise any outstanding Option only within the period of six months
following the date of such cessation of employment.

	8.7
	If
a Participant ceases to be employed by a Group Company as a result of Retirement, redundancy (within the meaning of the Employment Protection (Consolidation) Act 1978), illness,
injury or disability, in relation to any Award Letters which have not lapsed the Trustees shall, unless the Committee in its absolute discretion otherwise determines within six months of such
cessation of employment, grant an Option over Shares. Such Option shall be granted with the Committee taking into account the underlying financial performance of the Company in the period since the
Award Date and otherwise in accordance with Rule 7, but (unless in its determination the Committee specifies a different basis)

	8.7.1
	scaled
down pro-rata to the proportion of the relevant Measurement Period which has actually elapsed at such cessation; and

	8.7.2
	so
that the TSR of each Comparator Company shall be calculated and ranked at the end of the month immediately preceding such cessation. 

Any
such Option may be exercised only within the period of six months following the date of such cessation of employment and the Award Letter shall automatically lapse in respect of any Shares which
are not the subject of an Option. 

	8.8
	If
a Participant ceases to be employed by a Group Company between an Award Date and the third anniversary thereof as a result of dismissal or resignation the Participant shall not be
granted an Option over any shares comprised in an Award Letter outstanding at the date of such cessation of employment unless and to the extent that, within six months of the date of such cessation,
the Committee in its absolute discretion otherwise determines and provided that the Participant has not been dismissed for dishonesty or misconduct. Any such Option may be exercised only within the
six month period and the Award Letter shall automatically lapse in respect of any Shares not made the subject of an Option. 

For
the purposes of this Rule 8.8 a decision by the Committee that a Participant has been dismissed for dishonesty or misconduct shall be conclusive. 

	8.9
	A
Participant shall not be entitled by way of compensation for loss of office, wrongful or unfair dismissal or otherwise to any sum or any benefit to compensate the Participant for
the loss of Shares which were the subject of an Award Letter or any other right or benefit accrued or in prospect under the Plan. 

6

 

9 Transfer of shares  

	9.1
	Any
transfer of Shares to a Participant shall be subject to such consent, if any, of HM Treasury or other authorities, whether of the United Kingdom or elsewhere, as may from time to
time be required and it shall be the responsibility of the Participant to obtain and comply with the requirements of such consents.

	9.2
	Shares
shall not carry the right to dividends or other distributions paid by reference to a qualifying date falling before the date of exercise of an Option but shall in all other
respects rank pari passu with the other Shares in issue. 

10 Change of control  

	10.1
	For
the purposes of this Rule, a 'change of control' shall be deemed to take place if:

	10.1.1
	any
individual, company, corporation or other entity acquires more than 50% of the then outstanding equity of the Company entitling the holder to vote generally in the election of
directors of the Company; or

	10.1.2
	any
scheme of arrangement sanctioned by the Court under section 425 of the Companies Act 1985 becomes effective (except where Rule 11 applies); or

	10.1.3
	the
Company goes into liquidation (except where Rule 11 applies).

	10.2
	In
the event of a "change of control' as defined in subsection 10.1 above, unless the Committee makes other arrangements within one month thereafter which the auditors of the Company
first confirm in writing to the Committee are in their opinion fair and reasonable to the Participants the Trustees shall grant to each Participant an Option over the appropriate number of Shares
which are the subject of an Award Letter (as if the date of such change of control were both the end of a Measurement Period and the third anniversary of the relevant Award Date for the purposes of
Rule 7). The Award letter shall automatically lapse in respect of any shares not the subject of the Option. 

11 Adjustments  

In
the event of any reconstruction, amalgamation, reorganisation, liquidation for the purposes of reconstruction, consolidation, sub-division or other change in the capital structure of
the Company affecting the Shares, the number and class of Shares subject to outstanding Award Letters and outstanding Options under the Plan shall be substituted or adjusted in such manner as may be
determined to be reasonable, appropriate and equitable by the Remuneration Committee, and confirmed as being fair and reasonable by the auditors of the Company for the time being, to prevent dilution
or enlargement of the rights of Participants and provided that the number of Shares subject to any Award Letter or Option shall always be a whole number. 

12 Administration of the scheme  

	12.1
	The
Trustees shall waive all rights to dividends on Shares held by them in accordance with these Rules.

	12.2
	

	12.2.1
	Except
as otherwise provided, notices or documents required to be given to an Eligible Employee or a Participant shall be properly given if delivered to the relevant person by hand
at his or her normal place of work or sent to the relevant person by post at his or her last known address and where a notice is sent by post it shall be deemed to have been given 48 hours
after it was put into the post properly addressed and stamped. 

7

 
	12.2.2
	Except
as otherwise provided, notices or documents required to be given to the Company by a Participant shall be properly given if delivered by hand to the Secretary of the Company
at the Company's registered office or sent to the Secretary by post at that office and where a notice is sent by post it shall be deemed to have been given 48 hours after it was put into the
post properly addressed and stamped.

	12.3
	A
Participant shall not be treated as having ceased to be an Eligible Employee merely by reason of the occurrence of any of the following:

	12.3.1
	a
transfer of his employment from one Group Company to another; or

	12.3.2
	absence
of no more than 29 weeks due to pregnancy or confinement (unless the Participant shall previously have notified her intention not to return in which case her employment
shall be deemed to be terminated on the date she so notifies her employer); or

	12.3.3
	any
leave of absence in excess of 90 days approved by the Group Company which employs the Participant, provided that the employee's right to re-employment is
guaranteed either by statute or by contract; or

	12.3.4
	the
transfer of the undertaking or part undertaking in which the Participant is employed to another Group Company.

	12.4
	Unless
the Committee otherwise determines a Participant shall be treated as having ceased to be an Eligible Employee by reason of the occurrence of either of the following:

	12.4.1
	the
Subsidiary by which the Participant is employed ceasing to be a Subsidiary;

	12.4.2
	the
transfer of the undertaking or part undertaking in which the Participant is employed to any person other than another Group Company.

	12.5
	Nothing
contained in the Plan shall prevent the Company from adopting other employee benefit arrangements, including further employees' share schemes.

	12.6
	Neither
the action of the Company in establishing the Plan, nor any action taken by it or by the Committee under the Plan or any Award Letter, nor any provision of the Plan, shall be
construed as giving to any person the right to be retained in the employment of a Group Company.

	12.7
	Subject
to the provisions of the Trust Deed and the Plan the Committee shall have full power:

	12.7.1
	to
construe and interpret the Rules of the Plan; to establish, amend or waive regulations for administration of the Plan not being inconsistent with the Rules;

	12.7.3
	to
accelerate the grant of Options over Shares;

	12.7.4
	to
correct errors, omissions or inconsistencies in the Plan or in any Award Letter or other document; and to agree with a Participant to amend the terms and conditions of any
outstanding Award Letter to the extent such terms and conditions are within the discretion of the Committee as provided in the Plan.

	12.8
	The
Committee may, in its sole discretion, delegate to appropriate executives of the Company the administration of the Plan. No such delegation by the Committee shall be made with
respect to the grant of Award Letters or Options and the Committee may not delegate its authority to correct errors, omissions or inconsistencies in the Plan or in any Award Letter or other document.
All authority delegated by the Committee under this Rule 12.9 shall be exercised in accordance with the provisions of the Plan and any guidelines for the exercise of such authority that may
from time to time be established by the Committee. 

8

 

13 Amendment—termination  

 The Committee may amend, terminate or suspend the Plan but no such action may impair or adversely affect the existing rights of a Participant under any Award
Letter or Option without the Participant's consent. 

14 Effective date of plan  

 The Plan shall have effect from 1 January 1996 except in relation to the Group Chief Executive for whom the Plan shall have effect from 1
January 1995. 

16 Term of plan  

 No Award shall be made under the Plan after 31 March 2006 (or such earlier date as the Plan shall be terminated by the Committee) but so that the foregoing
shall not prevent any amendment, modification or suspension at any time of any Award Letter or the waiver at any time of any terms or conditions thereof by the Committee under and in accordance with
the provisions of the Plan or the amendment of the Plan by the Committee under Rule 13. 

17 Governing law  

 This Plan is governed by and shall be construed in accordance with the laws of England. 

9

   Schedules  

1. Award letter  

2. Total Shareholder Return  

Schedule 1  

 Dear [......................................................] 

I
am pleased to confirm that you have been granted a conditional award of [    ] shares in Prudential pIc in accordance with the Rules of the Prudential Restricted
Share Plan. For the purposes of the Rules the Award Date is [........................]. 

The
number of shares has been calculated by taking [    ] per cent of your current basic salary and dividing it by the average value of the month end closing price of
Prudential's shares during [    ]. The share price for the [.................................] award is
[...........................]. 

For
the purposes of determining whether you will be granted an option over such shares the commencement date of the three-year "Measurement Period' (as defined in the Rules) is 1 January
[    ]. The number of shares over which your option will be granted will be determined by reference to the extent that the Company's 'Total Shareholder Return' (as
defined in the Rules) has reached a specified target after the Measurement Period, when compared with the Total Shareholder Return of those of the companies which comprise the FT-SE 100
Share Index on the first trading day of the London Stock Exchange in the Measurement Period which are still quoted on that Exchange on the last day of the Measurement Period. In addition the
Remuneration Committee will need to be satisfied that the underlying performance of the Company justifies the grant of an option. 

Yours
sincerely 

10

 

Schedule 2  

For
the purposes of Rule 7 TSR in respect of each of the Comparator Companies shall be calculated as follows using the Finstat price feed or such other comparable method as the Committee may
approve to ascertain the value of a share: 

	1.
	for
the first day of the Measurement Period the average of the values of a share in the relevant company during the period of three months immediately before the beginning of the
Measurement Period shall be taken and such amount shall be a cash outflow;

	2.
	for
the last day of the Measurement Period the average of the values of a share in the relevant company during the period of three months immediately before the end of the Measurement
Period shall be taken and such amount shall be a cash inflow;

	3.
	gross
dividends per share paid by the relevant company during the Measurement Period shall be a cash inflow on the day when the relevant company's shares went ex-dividend
and applied in purchasing the relevant company's shares at the close of business on that day at its value;

	4.
	a
retroactive adjustment shall be made for any stock or share split, scrip issue or rights issue or other like event occurring during the Measurement Period and any payment by the
shareholder for the exercise of rights shall be a cash outflow;

	5.
	an
appropriate adjustment shall be made for any merger, takeover or other change in capital so as to preserve the original notional investment;

	6.
	the
TSR shall be the rate of return calculated from the amounts determined in accordance with Paragraphs 1 to 5 above. 

11

QuickLinks

Exhibit 4.1

RESTRICTED SHARE PLANQuickLinks
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Exhibit 4.2    
    

PRIVATE
AND CONFIDENTIAL 

DATED            March,
2005 

PRUDENTIAL
SERVICES LIMITED (1) 

and

MARK
EDWARD TUCKER (2) 

and 

PRUDENTIAL
PLC (3) 

CONTRACT
OF EMPLOYMENT 

PN050800017 

 

PARTIES  

	(1)
	PRUDENTIAL SERVICES LIMITED of Laurence Pountney Hill, London EC4R OHH ("the Company") and

	(2)
	MARK EDWARD TUCKER of 3 Ainslie Place Edinburgh EH3 6AR ("the Executive")

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

1.     DEFINITIONS  

In
this Agreement unless the context otherwise requires:- 

"Board"
means the Board of Directors of Prudential; 

"Commencement
Date" means such date as the Executive and Prudential may agree but being no later than 30 September, 2005; 

"Earnings
Cap" means the maximum allowance from time to time under Section 640A of the Income and Corporation Taxes Act 1988; 

"Prudential
Group" means Prudential and each of its subsidiaries as "subsidiaries" as defined by section 736 of the Companies Act 1985. 

2.     APPOINTMENT  

	(1)
	The
Company shall employ the Executive and the Executive shall serve the Company as Group Chief Executive and in other such capacity as may be agreed ("the Appointment"). The
Executive shall report to the Chairman.

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

	(3)
	Notwithstanding
clause 2(2) above, this Appointment shall automatically terminate without notice on the Executive attaining the age of 60.

	(4)
	The
Executive warrants that by entering into this Agreement and performing his duties hereunder he will not be in breach of any existing contractual or other legal duties to any third
party. 

3.     DUTIES OF THE EXECUTIVE  

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

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

2

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

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

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

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

	(iv)
	to
take any accrued holiday during any period of suspension under this clause 3(3). 

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

During
such suspension the Executive shall be entitled to the remuneration and benefits (including incentives under clause 5(7)) due under this Agreement. 

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

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

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

	(iii)
	the
Board shall at all times act reasonably in relation to any such suspension and shall conclude the investigation as quickly as reasonably practicable and shall not extend the
period of suspension unreasonably.

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

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

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

3

 

4.     PERFORMANCE OF DUTIES  

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

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

	(3)
	The
Executive shall perform his duties at such offices of the Company in London or at such other locations as may be agreed from time to time as the Company or the Board may from time
to time reasonably require. 

5.     REMUNERATION  

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

	(2)
	The
Executive shall be eligible to receive a pension allowance of 25% of his annual salary, to accrue from day to day and to be payable by equal monthly installments in arrear to a
pension arrangement or bank nominated by the Executive and in the case of a pension arrangement agreed by the Company. No further provision for pension will be made.

	(3)
	The
Company will reimburse the Executive for his actual reasonable removal costs incurred in relocating the Executive and his family to London, subject to receipt of appropriate
invoices. The Company will also pay reasonable accommodation costs for the Executive and his family at a suitable location for his normal place of work for the period from the date of commencement of
his employment under this Agreement until 30th April, 2006.

	(4)
	Subject
to production, if requested, of medical certificates satisfactory to the Company, full remuneration will continue to be payable notwithstanding the Executive's incapacity for
work due to sickness or accident (unless and until the Appointment shall be determined under any terms hereof) for the first six months of such incapacity. During this period of incapacity, the
Company shall only give notice terminating the Appointment on grounds of redundancy, falling within section 139 of the Employment Rights Act 1996 or those circumstances as set out in
clause 9(2). Thereafter the Company may at its discretion discontinue the payment of remuneration under this Agreement in which event the rules of the Prudential Staff Long Term Incapacity
Scheme as from time to time in force, will apply to the Executive.

	(5)
	If
the Executive is incapable of performing his duties by reason of injury sustained wholly or partly as a result of negligence, nuisance or breach of any statutory duty on the part
of any third party all payments made to the Executive by the Company shall (in so far as lawful) be by way of interest free loan repayable to the Company only when and to the extent that compensation
is recovered for loss of earnings from that third party by legal action or otherwise in so far as it is not repayable to the Department of Social Security. 

4

 
	(6)
	The
Executive, his wife and his unmarried children below the age of 18 (or 21 if in full time education) will be eligible free of charge to participate with effect from the
Commencement Date until termination of employment in the Prudential Group medical insurance scheme currently established with AXA PPP.

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

	(a)
	the
Prudential Restricted Share Plan ("RSP");

	(b)
	the
Prudential Annual Incentive Plan ("AIP");

	(c)
	any
other annual incentive arrangements generally established for senior executives from time to time; and

	(d)
	the
Prudential Savings Related Share Option Scheme, details of which have been supplied to the Executive.

	(8)
	Participation
in the Prudential RSP and Savings Related Share Option Scheme is a matter entirely separate from the Executive's terms and conditions of employment; the Company has no
contractual obligation to invite the Executive's participation in any plan cycle; and in particular if the Executive's employment shall terminate for whatever reason (whether lawfully or in breach of
contract) he shall not be entitled to any compensation for any loss of any right or benefit or prospective right or benefit under any scheme which he might otherwise have enjoyed whether such
compensation is claimed by way of damages for wrongful dismissal or other breach of contract or by way of compensation for loss of office or otherwise.

	(9)
	The
Executive shall be entitled to an interest free season ticket loan. 

6.     EXPENSES  

	(1)
	The
Company, on production of the relevant receipts and/or invoices, shall reimburse the Executive for all travelling, hotel, entertainment and other
out-of-pocket expenses properly incurred by him from time to time in the execution of his duties hereunder in accordance with the relevant rules of the Company for the time
being in force.

	(2)
	The
Executive will also be eligible to receive an annual cash car allowance. Such cash allowance will be paid in monthly installments (less such deductions as the Company is required
by law to make) at the same time as the Executive's salary, but will not form part of his salary for pensions or other salary related benefits.

	(3)
	Renewal
of the annual cash allowance hereunder is governed by the rules and regulations from time to time established for senior executives of the Prudential Group. 

7.     HOLIDAY  

The
Executive shall be entitled to such holiday with pay in each calendar year (in addition to statutory holidays) as the proper performance of his duties hereunder permits and in accordance with the
guidelines laid down by the Company from time to time. 

5

 

8.     NON-SOLICITATION  

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

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

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

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

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

	(3)
	The
Executive acknowledges and agrees that:

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

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

6

 

	(c)
	if
any such restriction is found by any court of competent jurisdiction to be void or unenforceable as going beyond what is reasonable in the circumstances for the protection of the
interests of the Prudential Group but would be valid if part of the wording was deleted and/or the period thereof was reduced and/or the territory concerned was reduced the restriction shall apply
within the jurisdiction of that court with such modifications as may be necessary to make it valid and effective. 

9.     TERMINATION OF EMPLOYMENT  

	(1)
	The
Appointment may be terminated by either party by notice given in accordance with clause 2.

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

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

	(b)
	if
he is guilty of serious misconduct or behaviour such as to bring any company in the Prudential Group into disrepute (including but without limitation the commission of a criminal
offence (excluding Road Traffic offences) or commits any serious breach of any of his obligations to the Company or any other company in the Prudential Group (whether under this Agreement or
otherwise) and such misconduct, behaviour or breach justifies summary dismissal; or

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

	(d)
	if
he engages in willful or reckless conduct injurious to or damaging to the reputation of the Company or any other company within the Prudential Group; or

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

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

	(3)
	The
Executive shall have no claim against the Company for damages or otherwise by reason of such termination. Any delay or forbearance by the Company in exercising any such right of
termination shall not constitute a waiver of its rights in respect of any subsequent occurrence giving rise to such a right.

	(4)
	Without
prejudice to the Transfer of Undertakings (Protection of Employment) Regulations 1981, if at any time during this Agreement the Executive's employment is terminated by reason
of reconstruction or amalgamation of the Company and the Executive is offered employment with any concern or undertaking resulting from such reconstruction or amalgamation upon terms and conditions no
less favourable than the terms of this Agreement and of similar status then the Executive shall have no claim against the Company in respect of the termination of the Appointment. 

7

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

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

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

	(6)
	In
the event that the Appointment is terminated under this clause or otherwise and the Executive becomes entitled to any compensation in connection with the Appointment or its
termination, the Company shall be entitled to pay any such compensation to the Executive over 12 monthly installments payable on the last day of every month, where the amount of each monthly
installment shall be equal to A minus B, where A is equal to the total compensation payable to the Executive divided by 12, and B is equal to the total earnings of the Executive (less required
deductions for income tax and employees' national insurance contributions) referable to any engagement or employment that the Executive has carried out during that month. 

10.   EXECUTIVE'S POSITION AS DIRECTOR  

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

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

	(3)
	Upon
termination of the Appointment for whatever reason the Executive shall forthwith in writing resign his position as a director of Prudential and of any other company within the
Prudential Group, without compensation for loss of office but without prejudice to any other claims the Executive may have for damages for breach of this Agreement.

	(4)
	If
the Executive fails to comply with his obligations in sub-clause 10(3) hereof, he hereby irrevocably authorises Prudential to appoint some person in his name and
on his behalf to sign any documents and/or do all things necessary to give effect to the resignations referred to in sub-clause 10(3) above. 

8

 

11.   CONFIDENTIAL INFORMATION  

	(1)
	The
Executive shall not, either during the continuance of the Appointment or thereafter, use to the detriment or prejudice of the Company or any other company within the Prudential
Group or, except in the proper course of his duties, divulge to any person any Confidential Information concerning the business or affairs of the Company or any other company within the Prudential
Group which may have come to his knowledge during his employment. For the purposes of this Agreement "Confidential Information" shall mean details of suppliers and their terms of business, details of
customers, prices charged to and terms of business with customers, marketing plans and sales forecasts, any proposals relating to the acquisition or disposal of a company or business or any part
thereof, details of employees and officers and of the remuneration and other benefits paid to them and any other information which may reasonably be classified as confidential, but so that these
instructions shall cease to apply to any information which shall become available generally otherwise than through the fault of the Executive. The restrictions in this clause shall not apply:

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

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

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

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

12.   GRATUITIES AND CODES OF CONDUCT  

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

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

13.   DATA PROTECTION  

	(1)
	The
Executive consents to the Company and any company within the Prudential Group processing data relating to him at any time (whether before, during or after the employment) for the
following purposes:

	(i)
	performing
its obligations under the Agreement (including remuneration, payroll, pension, insurance and other benefits, tax and national insurance obligations);

	(ii)
	the
legitimate interests of the Company and any company within the Prudential Group including for the purposes of any sickness policy, working time policy, investigating acts or
defaults (or alleged or suspected acts or defaults) of the Executive, security, management forecasting or planning and negotiations with the Executive; 

9

 

	(iii)
	processing
in connection with any corporate transaction in which the Company or any company within the Prudential Group is involved or any transfer of any business in which the
Executive performs his duties; and

	(iv)
	transferring
data to countries outside the European Economic Area for any of the purposes referred to in (i), (ii) or (iii) above.

	(2)
	The
Executive explicitly consents to the Company and any company within the Prudential Group processing sensitive personal data (within the meaning of the Data Protection Act 1998) at
any time (whether before, during or after the Appointment) for the following purposes:

	(i)
	where
the sensitive personal data relates to the Executive's health, any processing in connection with the operation of the sickness policy of the Company (or any company within the
Prudential Group) or any relevant pension scheme or monitoring absence; and

	(ii)
	where
the sensitive personal data relates to an offence committed, or allegedly committed, by the Executive or any related proceedings, processing for the purpose of the disciplinary
purposes of the Company or of any company within the Prudential Group. 

14.   ASSIGNMENT  

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

15.   STATUTORY REQUIREMENTS  

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

16.   NOTICES  

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

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

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

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

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

17.   MISCELLANEOUS  

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

10

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

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

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

11

   THE SCHEDULE  

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

	(a)
	Remuneration—Clause 5(1)

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

	(c)
	Holidays—Clause 7

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

	(e)
	Pension Arrangements—Clause 5(2)

	(f)
	Notice—Clause 2(2)

	(g)
	Job Title—Clause 2(1)

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

	(i)
	Disciplinary Procedure—There are no disciplinary rules applicable to senior executives so that any disciplinary action
relevant to the Executive will be considered and handled according to the particular circumstances and the Executive's position although the Company intends that it will generally follow the statutory
minimum dispute resolution procedures as set out in the Employment Act 2002 (although these procedures are not part of the contract). Should the Executive be dissatisfied with any disciplinary
decision he/she should appeal in writing to the Chairman of the Prudential Group.

	(j)
	Date of Commencement of Employment—The date of commencement of employment (i.e. date of joining Prudential) is the
Commencement Date—Clause 1.

	(k)
	Place of work—Clause 4(3).

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

12

 

SIGNED
by

on behalf of PRUDENTIAL PLC 

/s/
David Clementi 

In
the presence of: 

/s/
Roberto Mendoza 

Date:
24/03/05 

SIGNED
as a deed by 

MARK
EDWARD TUCKER 

/s/
Mark Edward Tucker 

In
the presence of: 

/s/
Richard Joyce 

Date:
24/03/05 

SIGNED
by 

on
behalf of PRUDENTIAL SERVICES LIMITED 

/s/
Jane Kibbey 

In
the presence of: 

/s/
Roberto Mendoza 

Date:
24/03/05 

13

QuickLinks

Exhibit 4.2

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