Document:

Nokia Equity Programs

 

 

 

Terms and Conditions
of the

 

 

 

Nokia Performance
Share Plan 2020

 

 

 

 

Approved by the Board
of Directors on

 

March 5, 2020

 

 

 

 

 

    	 	 	 

     

    

 

 

TERMS AND CONDITIONS OF THE NOKIA PERFORMANCE
SHARE PLAN 2020

 

		1.	Purpose and Scope of the Plan

		1.1.	The purpose of the Nokia Performance Share Plan 2020 is to retain Nokia Group employees, to promote
employees’ engagement and to reward them for Nokia Group’s long-term performance. This is accomplished by focusing
the Participants on Nokia Group’s long-term financial performance and share price appreciation and thus aligning the interests
of the Participants with those of the shareholders. To accomplish these objectives the Company may award eligible Nokia Group employees
Performance Shares under this Plan.

		1.2.	The Plan is tied directly to the performance of Nokia Group. For the purposes of this plan, performance
is measured through the Performance Criterion. The financial benefits of the Plan materialize if the performance levels measured
by Performance Criterion are achieved by the end of the Plan Period.

		1.3.	Under the Plan, a maximum of 44 million Performance Shares may be Granted, which may result in
the delivery of 88 million Shares at the maximum performance level. The Board determines the general principles of the Plan and
approves the Grants of Performance Shares to eligible employees within its authority. Grants of Performance Shares under these
Terms & Conditions may be made between March 5, 2020 and December 31, 2020, inclusive.

 

		2.	Definitions

 

Baseline
Share Price: The average closing share price for Nokia shares on NASDAQ Helsinki for the five
trading days following the publication of Nokia’s fourth-quarter and full-year 2019 report.

Board:
The Board of Directors of the Company.

Company:
Nokia Corporation.

Delivery
Date: the date Shares are delivered to a Participant; the date being a Helsinki banking date
chosen by the Company which falls after the date the Board approves the outcome of measuring the satisfaction of the applicable
Performance Criterion.

Eligibility
Date: Subject to Rule 8, Participants remaining employees of the Nokia Group until December
31, 2022 (inclusive) will become eligible to receive the delivery of Shares under the Plan on the Delivery Date.

Grant:
The awarding of Performance Shares to an employee of Nokia in accordance with the Plan.

Grant
Amount: The number of Performance Shares Granted to a Participant.

Grant
Date: The date on which the Grant of Performance Shares is formally made. 

Maximum
Number: The number of Performance Shares to be delivered if the maximum performance is achieved
with respect to the Performance Criterion as defined under rule 4. The Maximum Number equals two times the Grant Amount.

Nokia:
Nokia Corporation.

Nokia
Group: The Company together with the companies over which the Company effectively exercises
control and which are included in the consolidated financial statements of the Company.

Participant:
Employee of the Nokia Group who has received a Grant of Performance Shares under the Plan.

    	 	 	 

     

    

 

Performance
Criterion: Performance is measured by reference to the Total Shareholder Return (TSR) for
Nokia during the Plan Period, as determined by the Board. 

TSR is defined
as the share price growth for Nokia shares on NASDAQ Helsinki during the Plan Period, plus any dividends declared during this period.

Plan
Period: The period beginning on the date Nokia’s fourth-quarter and full-year 2019 report
is published and ending on the fifth trading day following the publication of Nokia’s fourth-quarter and full-year 2022 report.

Performance
Share/Shares: Each Performance Share represents a right to receive a certain number of Shares
or their cash equivalent upon delivery, subject to the fulfilment of the conditions under rule 4, and provided that no other restriction
related to these Terms & Conditions is applicable.

Plan:
Performance Share Plan 2020 of the Company.

Share/Shares:
The Company’s ordinary shares. The terms and conditions applicable to Shares shall apply to their
cash equivalent used for delivery, as applicable.

Terms & Conditions: The terms and conditions of this Plan.

 

		3.	Grant of Performance Shares

		3.1.	On the Grant Date, each Participant is offered a Grant Amount of Performance Shares. The Company
will notify each Participant of the Grant.

		3.2.	As a precondition for a valid Grant, the Participant must be employed by Nokia Group at the time
of the Grant.

		3.3.	The Participant may be required to give the Company such authorizations and consents, as the Company
deems necessary in order to administer the Plan.

 

		4.	Financial Performance Criterion

 

		4.1.	The number of Performance Shares to be delivered is determined in respect of the Performance Criterion.

		4.2.	A Baseline Share Price, an absolute target and a Maximum performance level shall be set for the
Performance Criterion, as determined by the Board.

		4.3.	To the extent the Baseline Share Price is exceeded, the number of Performance Shares to be delivered
on Delivery Date will increase from 0%, up to the Maximum Number, following a linear scale based on actual performance level achieved.

		4.4.	The total number of Performance Shares to be delivered may not exceed two times the Grant Amount.

 

		5.	Measurement and Calculation of Pay-out

		5.1.	The measurement of the Performance Criteria shall be made by the Board in its sole discretion after
the end of the Plan Period, upon the recommendation of the Personnel Committee of the Board.

		5.2.	Based
on the Board’s measurement, the number of Performance Shares to be delivered as Shares or the equivalent amount of cash shall
be calculated.

 

    	 	 	 

     

    

 

		5.3.	The calculation of the number of Performance Shares to be delivered shall not result in fractional
Shares. The number of Shares shall be rounded to the nearest whole Share.

 

		6.	SHARE DELIVERY 

 

		6.1.	Until the Delivery Date, the Participant does not have any legal ownership or any other rights
relating to the Shares. The Participant shall not be entitled to any dividend or have any voting rights or any other rights as
a shareholder to the Shares until and unless the Shares have been transferred to the Participant and, in case of new Shares issued
by the Company, until the Shares have been entered in the Trade Register.

		6.2.	The Company will complete the delivery by transferring the applicable number of Shares or their
cash equivalent to the Participant’s book-entry, brokerage or other account, as applicable on the Delivery Date.

		6.3.	Completion of share delivery is dependent on the Participant’s compliance with these Terms
& Conditions and all necessary instructions and actions to enable the Company to facilitate the delivery. If the Participant
has not performed all necessary actions to enable the Company to complete the delivery, the Company will consider, in its sole
discretion, what appropriate action to take.

		7.1.	The Company may, in its sole discretion, use one or more of the following instruments to settle
Performance Shares: newly issued Shares, the Company’s own existing Shares (treasury Shares), Shares purchased from the open
market, or, in lieu of Shares, cash.

		7.2.	The Participants shall not be entitled to any dividend or have any voting rights or any other shareholder
rights until and unless the Shares have been transferred to the Participant and, where new Shares issued by the Company are used
for delivery, until the Shares have been entered in the Trade Register.

 

		7.	Changes in Employment 

		7.1.	If the Participant’s last day of employment with the Nokia Group occurs before the Eligibility
Date by the reason of permanent disability (as defined by the Company in its sole discretion), the Participant retains the right
to delivery on the scheduled Delivery Date.

		7.2.	In the case of death of the Participant before the Eligibility Date, unless the Company determines
otherwise in its sole discretion, the Performance Shares will be delivered at the Grant Amount as soon as practicable thereafter.
If made, such special delivery will constitute full and final delivery of that Performance Share Grant.

		7.3.	If the Participant’s last day of employment with the Nokia Group occurs before the Eligibility
Date for any reason other than those mentioned above, then, unless the Personnel Committee of the Board, or the Board as applicable,
determines otherwise in its sole discretion, the Company shall redeem the Performance Shares from the Participant without consideration,
in which case the Participant shall not be entitled to any delivery under the Plan.

		7.4.	In cases of voluntary and/or statutory leave of absence of the Participant, the Company has the
right to prorate the delivery.

			

		8.	Terms of Employment 

		8.1.	The Grant or delivery of Performance Shares does not constitute a term or a condition of the Participant’s
employment contract with Nokia Group under applicable local laws and the rights and obligations arising from a Participant’s
employment with Nokia are separate from, and are not affected by, the Participant’s participation in the Plan. The Performance
Shares, Shares or their cash equivalent under the Plan do not form a part of the Participant’s salary or benefit of any kind.

    	 	 	 

     

    

 

		8.2.	The Grant or delivery of Performance Shares does not create any right for that Participant to be
offered participation in the Plan in future or to be Granted any additional Performance Shares on any particular terms, including
the number of Performance Shares.

		8.3.	By Participating in the Plan, a Participant waives all rights to compensation for any loss in relation
to the Plan, including:

		8.3.1.	any loss or reduction of any rights or expectations under the Plan in any circumstances or for
any reason;

		8.3.2.	any exercise of a discretion or a decision taken in relation to any Performance Shares, and/or
to the Plan, or any failure to exercise a discretion or take a decision; and

		8.3.3.	the operation, suspension, termination or amendment of the Plan.

 

		9.	Taxes and other Obligations

		9.1.	The Participant is personally responsible for all taxes and social security charges associated
with the Performance Share Grants and Shares delivered upon delivery. This includes responsibility for any and all tax liabilities
in multiple countries, if applicable. Participants are advised to consult their own financial and tax advisers (at their own expense)
before accepting the Grant in order to verify their tax position.

		9.2.	The Participant is also personally responsible for any potential charges debited by any plan administrator,
broker or financial institution in connection with the delivery of the Performance Shares or any subsequent transactions related
to the Shares.

		9.3.	Performance Shares must not be used as security for any liability, be transferred or otherwise
disposed of (except in the event of the Participant’s death, to his personal representatives) and will lapse immediately
on any attempt to do so.

		9.4.	Pursuant to applicable laws, the Nokia Group is, or may be required or may deem it appropriate
to withhold taxes, social security charges or fulfil employment related and other obligations upon Grant or delivery of Performance
Shares, or when the Shares are disposed of by a Participant. The Nokia Group shall have the right to determine how such collection,
withholding or other measures will be arranged or carried out, including but not limited to a delivery of a net amount remaining
after the completion of such measures or a potential sale of the Shares on behalf of a Participant for the completion of such measures.

 

		10.	Breach of these Terms and Conditions 

		10.1.	The Participant shall comply with these Terms & Conditions, as well as any instructions given
by the Company regarding the Plan from time to time.

		10.2.	If the Participant breaches these Terms & Conditions and/or any instructions given by the Company,
the Company may in its discretion, at any time prior to the Delivery Date, rescind the Grant of Performance Shares.

 

		11.	Validity of these Terms and Conditions and Amendments

		11.1.	These Terms & Conditions shall become valid and effective upon the approval by the Board.

		11.2.	The Board may, in its absolute discretion, at any time amend, modify or terminate these Terms &
Conditions.

    	 	 	 

     

    

 

		11.3.	Action taken by the Board in rule 12.2 may also, as in each case determined by the Board, affect
the Performance Shares that are then outstanding, but not delivered.

 

		12.	Administration

		12.1.	The Plan shall be administered by the Company. The Company has the authority to interpret these
Terms & Conditions, approve such other rules and procedures and take such other measures, as it deems necessary or appropriate
to benefit the administration of the Plan, including, but not limited to, taking action to take account of a change in legislation
or to maintain favourable tax, exchange control or regulatory treatment for Participants or for Nokia. Such action may also affect
the Performance Share Grants that are then outstanding, but not delivered.

		12.2.	The Company has the right to determine the practical manner of administration and delivery of the
Performance Shares, including but not limited to the acquisition, issuance, sale, and transfer of the Shares or their cash equivalent
to the Participant. Furthermore, the Company has the right to require from the Participant the submission of such information or
contribution that is necessary for the administration and delivery of the Performance Share Grants.

		12.3.	Any notice or other communication
in connection with the Plan may be delivered personally or sent by electronic means or post. Where a notice or other communication
is given by post, it will be deemed to have been received 72 hours after it was put into the post properly addressed and stamped.
If a notice or communication is sent by electronic means, it will be deemed to be received immediately after the communication
is sent, on the date and in the time zone where the sender is located.

 

		13.	Rights of Participants in Corporate Events

		13.1.	Should the Annual General Meeting in accordance with the proposal of the Board decide, prior to
the delivery of the Performance Shares, to distribute a special dividend constituting a deviation from the customary dividend policy
of the Company:

		13.1.1.	the Board may determine, in its sole discretion if and how the Participants will be compensated
for the special dividend.

		13.1.2.	such distribution of special dividend can include, but is not limited to, a distribution of assets
from reserves of unrestricted equity or distribution of share capital to the shareholders.

		13.1.3.	the Board will specify in any proposal for the dividend, whether the dividend, or a part of it,
shall be considered a special dividend.

		13.2.	Should the Company, prior to the delivery of the Performance Shares, issue new shares, stock options
or other special rights to all shareholders, the Board will in its sole discretion decide what the rights of the Participants will
be in such cases.

		13.3.	The Company’s decision to cancel existing shares held by the Company prior to the delivery
of the Performance Shares will not affect the delivery of Performance Shares.

		13.4.	Should the Company, during the Plan Period, be placed into liquidation:

		13.4.1.	the Board may determine, in its sole discretion, whether Performance Shares may be delivered at
Grant Amount. Any delivery will be within such period as resolved by the Board;

		13.4.2.	notwithstanding any other provisions in these Terms & Conditions, should the Company, prior
to the delivery of the Performance Shares, be deregistered from the Trade Register, the Participants shall not have any right to
delivery.

    	 	 	 

     

    

 

		13.5.	Should the Company, during the Plan Period, resolve to merge with another existing company or merge
with a company to be formed, or should the Company resolve to be demerged:

		13.5.1.	the Board may determine, in its sole discretion, whether Performance Shares may be delivered at
the Grant Amount prior to the merger or demerger. Any delivery will be within such period as resolved by the Board;

		13.5.2.	the Board may determine, in is sole discretion, whether Performance Shares should be converted
into similar equity rights issued by the other company. In such circumstances, the Board shall determine the terms and the period
in which any Performance Shares may be converted; and

		13.5.3.	notwithstanding any other provisions in these Terms & Conditions, following the closing of
the merger or demerger, the Participants shall have no right to delivery under this Plan. The same also applies to a merger, in
which the Company takes part, and whereby the Company registers itself as a European Company (Societas Europae) in another member
state in the European Economic Area or, if the Company after registering itself into a European Company registers a transfer of
its domicile into another member state.

		13.6.	Should the Company, during the Plan Period, make a resolution to acquire its own shares through
a tender offer to all the shareholders, the Company shall make an equal offer to the Participants in respect of Performance Shares
to settle the Performance Shares at the Grant Amount. If the Company acquires or redeems its own shares in any other manner, or
if the Company acquires stock options or other special rights entitling to shares, no measures will need to be taken in relation
to this Plan, unless the Board, in its sole discretion, determines otherwise.

		13.7.	Should during the Plan Period a tender offer regarding all shares and stock options issued by the
Company be made or should a shareholder under the Articles of Association of the Company or the Finnish Securities Markets Act
have the obligation to redeem the shares from the Company’s other shareholders, or to redeem the stock options, or should
a shareholder have under the Finnish Companies Act the right and obligation to redeem the shares from the Company’s other
shareholders:

		13.7.1.	the Board may determine, in its sole discretion, whether Performance Shares may be delivered at
the Grant Amount prior to the tender offer or the offer to redeem the shares.

		13.8.	Should a shareholder under the Finnish Companies Act have the right to redeem the shares from the
Company’s other shareholders, the Board may determine, in its sole discretion, during the Plan Period, whether Performance
Shares will be delivered at the Grant Amount prior to the redemption, after which the Participants’ obligation to transfer
all of their shares will be subject to the Finnish Companies Act.

		13.9.	The Board may, however, in any of the situations resolved in this rule 14, determine, in its sole
discretion, to provide the Participants with an opportunity to convert their Performance Shares into equity-based incentives issued
by another company on such terms and within such time period prior to the completion of the tender offer or redemption, as resolved
by the Board.

		13.10.	Should the shares of the Company during the Plan Period be delisted, with the effect that the shares
are no longer listed on any recognised stock exchange, nor subject to any other public trading:

		13.10.1.	the Board, may determine, in its sole discretion, whether any Performance Shares may be delivered
as a result of the delisting. Any delivery will be within such period as resolved by the Board; and

		13.10.2.	the Board may also determine whether any other amendments to these Terms & Conditions are required
as a result of the delisting.

 

    	 	 	 

     

    

 

		14.	The Recoupment of Equity in the Event of Certain Restatements

		14.1.	Under the Nokia policy on the clawback of incentive compensation (“Clawback Policy”),
as amended from time to time, the Board of Directors may, in its sole discretion and at any time, resolve to recover or require
reimbursement of all or a portion of incentive compensation, which is defined in the Clawback Policy. The Grant of Performance
Shares and delivery of Shares are covered by the Clawback Policy.

		14.2.	The impacted employees as well as the events that trigger recoupment are defined in the Clawback
Policy.

 

		15.	Governing Law and Settlement of Disputes

		15.1.	These Terms & Conditions are governed by Finnish laws.

		15.2.	Disputes arising out of these Terms & Conditions shall be settled by arbitration in Helsinki,
Finland, in accordance with the Arbitration Rules of the Finland Chamber of Commerce.

 

		16.	Processing of personal data 

		16.1.	Participants’ personal data is processed in connection with their participation in the Plan
by any Group Member (and any third party appointed by a Group Member in connection with the Plan) including the administration
and maintenance of records. Depending on the location of the Participant, the data might be transferred internationally. The processing
is described in more detail in the privacy supplement that will be provided to each Participant.Nokia Equity Programs

 

 

 

Terms and Conditions
of the

 

 

 

 

Nokia Restricted
Share Plan 2020

 

 

 

 

Approved by the Board
of Directors on March 5, 2020

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

TERMS AND CONDITIONS OF THE NOKIA RESTRICTED
SHARE PLAN 2020

 

		1.	PURPOSE AND SCOPE OF THE PLAN

		1.1	The purpose of the Nokia Restricted Share Plan 2020 is to recruit, retain, reward and motivate
selected high potential employees with functional mastery and other employees deemed critical to Nokia’s future success.
This Plan is also intended to promote share ownership of these key employees. To accomplish these objectives the Company may award
eligible Nokia employees Restricted Shares under this Plan.

		1.2	The Plan may result in a Grant of a maximum of 4.5 million Restricted Shares. The Board determines
the general guidelines under the Plan and approves the Grants to eligible employees within its authority. Grants of Restricted
Shares under these Terms & Conditions may be awarded between March 5, 2020 and December 31, 2020, inclusive.

 

		2.	DEFINITIONS

Board:
Board of Directors of the Company.

Company:
Nokia Corporation.

Grant:
The issuance of Restricted Shares to an employee of Nokia in accordance with the Plan.

Grant
Amount: The number of Restricted Shares Granted to a Participant.

Grant
Date: The date on which the Grant of Restricted Shares is formally made.

Nokia:
The Company together with its subsidiaries. 

Participant:
Employee of Nokia who has received a Grant of Restricted Shares under the Plan. 

Plan:
This Restricted Share Plan 2020 of the Company.

Restricted
Share/Shares: Each Restricted Share represents a right to receive one Share or its cash equivalent
upon Settlement subject to the fulfilment of these Terms & Conditions and provided that no other restriction related to these
Terms & Conditions is applicable. 

Restriction
Period: The Restricted Shares shall be settled in three Tranches, each with its own Restriction
Period. The Restriction Period for all Tranches shall start on the Grant Date and end:

-no less than
12 months following the Grant Date in respect of 1/3 of the Grant Amount (referred to as Tranche 1), rounded down to the nearest
whole Share;

-no less than
24 months following the Grant Date in respect of 1/3 of the Grant Amount (referred to as Tranche 2), rounded down to the nearest
whole Share; and

-no less than
36 months following the Grant Date in respect of the remaining Grant Amount not settled as part of Tranche 1 and Tranche 2 (referred
to as Tranche 3).

A Restriction Period
shall refer to one of the three Tranches referred to above and Restriction Periods shall refer to all three Tranches combined.
Subject to rule 6, a Participant shall forfeit all remaining unvested Restricted Shares under current and future Tranches if the
last day of their employment with the Nokia Group occurs before the last day of the current Restriction Period.

Settlement
Date(s): A banking day in Helsinki, Finland falling as soon as practicable after the respective
Vesting Date(s), as determined by the Company.

Share/Shares:
The Company’s ordinary shares. The terms and conditions applicable to Shares shall apply
to their cash equivalent used for settlement, as applicable. 

    	 	 	 

     

    

 

Terms & Conditions: The terms and conditions of this Plan.

Tranche:
One of the three groups into which the Restricted Shares have been divided, each with its
own applicable Restriction Period.

Vesting
Date(s): The day following the last day of each Restriction Period. On the Vesting Date, the
Participant becomes legally entitled to the settlement of Shares under the Plan. The applicable Vesting Dates shall be set out
in the Grant communication sent to the Participant. 

 

		3.	GRANT OF RESTRICTED SHARES 

		3.1	On the Grant Date, each Participant is offered a Grant Amount of Restricted Shares. The Company
will notify each Participant of the Grant.

		3.2	As a precondition for a valid Grant, the Participant must be employed by Nokia on the Grant Date.

		3.3	The Participant may be required to give the Company such authorizations and consents, as the Company
deems necessary in order to administer the Plan.

 

		4.	RESTRICTION PERIODS AND VESTING DATES

		4.1	The end of the Restriction Period for each of the three Tranches shall be specified to the Participant
in the Grant communication. During the Restriction Period(s), the Participant does not have any legal ownership or any other rights
relating to the Shares. The Participant shall not be entitled to any dividend or have any voting rights or any other rights as
a shareholder to the Shares until and unless the Shares have been transferred to the Participant and, in case of new Shares issued
by the Company, until the Shares have been entered to the Trade Register.

		4.2	The Vesting Date follows the end of each Restriction Period and marks the point at which a Participant
becomes entitled to the future settlement of the applicable Tranche of Shares in accordance with rule 5, regardless of whether
his last date of employment with the Nokia Group occurs on or after the applicable Vesting Date. The applicable Tranche of Shares
shall be settled to the Participant as soon as administratively possible after the respective Vesting Date.

 

		5.	SETTLEMENT

		5.1	Following the applicable Vesting Date, the Company will, subject to rule 9, complete the settlement
by transferring the applicable number of Shares from the relevant Tranche or their cash equivalent to the Participant’s book-entry,
brokerage or other account, as applicable on the Settlement Date. Completion of settlement is dependent on the Participant’s
compliance with these Terms & Conditions and all necessary instructions and actions to enable the Company to facilitate the
settlement.

The Company may, in its sole discretion,
use one or more of the following instruments to settle Restricted Shares: newly issued Shares, the Company’s own existing
Shares (treasury Shares), Shares purchased from the open market, or, in lieu of Shares, cash.

 

		6.	CHANGES IN EMPLOYMENT

		6.1	If the Participant’s last day of employment with the Nokia Group occurs before the last day
of the applicable Restriction Period by the reason of permanent disability (as defined by the Company in its sole discretion),
the Participant retains the right to settlement on the scheduled Settlement Date.

 

    	 	 	 

     

    

 

		6.2	In the case of the death of the Participant before the last day of the remaining Restriction Period(s),
unless the Company determines otherwise in its sole discretion, the Restricted Shares will be settled as soon as practicable thereafter.
The number of settled Restricted Shares shall be the Grant Amount less the number of Restricted Shares potentially already settled
under the Restricted Share Grant. If made, such special settlement will constitute full and final settlement of that Restricted
Share Grant.

		6.3	If Participant’s last day of employment with the Nokia Group occurs before the last day of
any of the remaining Restriction Periods for any reason other than those mentioned above, then unless the Personnel Committee of
the Board, or the Board as applicable, determines otherwise in its sole discretion, the Company shall redeem the remaining Restricted
Shares from the Participant without consideration and the Participant shall not be entitled to any settlement under the Plan. For
the avoidance of doubt, this will only apply to the part of the Grant Amount for which the Restriction Period(s) have not yet ended
at the date of termination of employment.

		6.4	In cases of voluntary and/or statutory leave of absence of the Participant, the Company has the
right to defer the end of the Restriction Period(s) or prorate the remaining settlement.

 

		7.	TERMS OF EMPLOYMENT

		7.1	The Grant or settlement of Restricted Shares does not constitute a term or a condition of the Participant’s
employment contract with Nokia under applicable local laws and the rights and obligations arising from a Participant’s employment
with Nokia are separate from, and are not affected by, the Participant’s participation in the Plan. The Restricted Shares,
Shares or their cash equivalent under the Plan do not form a part of the Participant’s salary or benefit of any kind.

		7.2	The Grant or settlement of Restricted Shares do not create any right for that Participant to be
offered participation in the Plan in the future or to be Granted any additional Restricted Shares on any particular terms, including
the number of Restricted Shares.

		7.3	By participating in the Plan, a Participant waives all rights to compensation for any loss in relation
to the Plan, including:

		7.3.1	any loss or reduction of any rights or expectations under the Plan in any circumstances or for
any reason;

		7.3.2	any exercise of a discretion or a decision taken in relation to any Restricted Shares, and/or to
the Plan, or any failure to exercise a discretion or take a decision; and

		7.3.3	the operation, suspension, termination or amendment of the Plan.

 

		8.	TAXES AND OTHER OBLIGATIONS

		8.1	The Participants are personally responsible for all taxes and social security charges associated
with the Restricted Share Grants and Shares delivered upon settlement. This includes responsibility for any and all tax liabilities
in multiple countries, if the Participant has resided in more than one country during the Restriction Period(s). The Participants
are advised to consult their own financial and tax advisers (at their own expense) before accepting the Grant in order to verify
their tax position.

		8.2	The Participants are personally responsible for any potential charges debited by any plan administrator,
broker or financial institution in connection with the settlement of the Restricted Shares or any subsequent transactions related
to the Shares.

    	 	 	 

     

    

 

		8.3	Restricted Shares must not be used as security for any liability, be transferred or otherwise disposed
of (except in the event of the Participant’s death, to his personal representatives) and will lapse immediately on any attempt
to do so.

		8.4	Pursuant to applicable laws, the Company is or may be required, or may deem it appropriate, to
withhold taxes, social security charges or fulfil employment related or other obligations upon the Grant or settlement of Restricted
Shares, or when Shares are disposed of by the Participants. The Company shall have the right to determine how such collection,
withholding or other measures will be arranged or carried out, including but not limited to a settlement of a net amount remaining
after the completion of such measures or a potential sale of the Shares on behalf of the Participants for the completion of such
measures.

 

		9.	BREACH OF THE TERMS AND CONDITIONS 

The Participant
shall comply with these Terms & Conditions, as well as any instructions given by the Company regarding the Plan from time to
time. If the Participant breaches these Terms & Conditions and/or any instructions given by the Company, the Company may, in
its discretion at any time prior to the Settlement Date, rescind the Grant of Restricted Shares.

 

		10.	VALIDITY OF THESE TERMS AND CONDITIONS
AND AMENDMENTS

		10.1	These Terms & Conditions shall become valid and effective upon the approval by the Board.

		10.2	The Board may, in its absolute discretion, at any time amend, modify or terminate these Terms &
Conditions.

		10.3	Action taken by the Board in rule 10.2 may also, as in each case determined by the Board, affect
the Restricted Share Grants that are then outstanding, but not settled.

 

		11.	ADMINISTRATION 

		11.1	The Plan shall be administered by the Company. The Company has the authority to interpret these
Terms & Conditions, approve such other rules and procedures and take such other measures, as it deems necessary or appropriate
to benefit the administration of the Plan, including, but not limited to, taking action to take account of a change in legislation
or to maintain favourable tax, exchange control or regulatory treatment for Participants or for Nokia. Such action may also affect
the Restricted Share Grants that are then outstanding, but not settled.

		11.2	The Company has the right to determine the practical manner of administration and settlement of
the Restricted Shares, including but not limited to the acquisition, issuance, sale, and transfer of the Shares or their cash equivalent
to the Participant. Furthermore, the Company has the right to require from the Participant the submission of such information or
contribution that is necessary for the administration and settlement of the Restricted Share Grants.

		11.3	Any notice or other communication
in connection with the Plan may be delivered personally or sent by electronic means or post. Where a notice or other communication
is given by post, it will be deemed to have been received 72 hours after it was put into the post properly addressed and stamped.
If a notice or communication is sent by electronic means, it will be deemed to be received immediately after the communication
is sent on the date and in the time zone where the sender is located. 

 

    	 	 	 

     

    

 

		12.	RIGHTS OF PARTICIPANTS IN CORPORATE EVENTS

		12.1	Should the Annual General Meeting of the Company, in accordance with the proposal of the Board,
decide, prior to the settlement of the Restricted Shares, to distribute a special dividend constituting a deviation from the customary
dividend policy of the Company:

		12.1.1	the Board may determine, in its sole discretion, if and how the Participants will be compensated
for the special dividend;

		12.1.2	such a distribution of a special dividend can include, but is not limited to, a distribution of
assets from reserves of unrestricted equity or distribution of share capital to the shareholders; and

		12.1.3	the Board will specify in any proposal for the dividend whether the dividend, or a part of it,
shall be considered a special dividend.

		12.2	Should the Company, prior to any settlement(s) of the Restricted Shares, issue new shares, stock
options or other special rights to all shareholders, the Board will, in its sole discretion, decide what the rights of the Participants
will be in such cases.

		12.3	The Company’s decision to cancel existing shares held by the Company prior to any settlement(s)
of the Restricted Shares will not affect the settlement(s) of Restricted Shares nor the number of Restricted Shares outstanding,
but not settled.

		12.4	Should the Company, during any of the Restriction Periods, be placed into liquidation:

		12.4.1	the Board may determine, in its sole discretion, whether any Restricted Shares may be settled,
giving consideration as to whether the settled amount should be determined by subtracting the number of Restricted Shares potentially
already settled under the Restricted Share Grant from the Grant Amount. Any settlement will be within such period as resolved by
the Board; and

		12.4.2	notwithstanding any other provisions in these Terms & Conditions, should the Company, prior
to any settlement(s) of the Restricted Shares, be deregistered from the Trade Register, the Participants shall not have any right
to settlement(s).

		12.5	Should the Company during the Restriction Period(s) resolve to merge with another existing company
or merge with a company to be established, or should the Company resolve to be demerged:

		12.5.1	the Board may determine, in its sole discretion, whether any Restricted Shares may be settled prior
to the merger or demerger, giving consideration as to whether the settled amount should be determined by subtracting the number
of Restricted Shares potentially already settled under the Restricted Share Grant from the Grant Amount. Any settlement will be
within such period as resolved by the Board;

		12.5.2	the Board may determine, in is sole discretion, whether any number of Restricted Shares should
be converted into similar equity rights issued by the other company. In such circumstances, the Board shall determine the terms
and the period in which any Restricted Shares may be converted; and

		12.5.3	notwithstanding any other provisions in these Terms & Conditions, following the closing of
the merger or demerger, the Participants shall have no right to any settlement(s) under this Plan. The same also applies to a merger,
in which the Company takes part, and whereby the Company registers itself as a European Company (Societas Europae) in another member
state in the European Economic Area or, if the Company after registering itself into a European Company registers a transfer of
its domicile into another member state.

		12.6	The Company, prior to the settlement(s) of the Restricted Shares, make a resolution to acquire
its own shares through a tender offer to all the shareholders, the Company shall make an equal offer to the Participants in respect
of Restricted Shares outstanding, but not settled. If the Company acquires or redeems its own shares in any other manner, or if
the Company acquires stock options or other special rights entitling to shares, no measures will need to be taken in relation to
this Plan, unless the Board, in its sole discretion, determines otherwise.

 

    	 	 	 

     

    

 

		12.7	Should, during the Restriction Period(s), a tender offer regarding all shares and stock options
issued by the Company be made or should a shareholder under the Articles of Association of the Company or the Finnish Securities
Markets Act have the obligation to redeem the shares from the Company’s other shareholders, or to redeem the stock options,
or should a shareholder have under the Finnish Companies Act the right and obligation to redeem the shares from the Company’s
other shareholders:

		12.7.1	the Board may determine, in its sole discretion, whether any Restricted Shares may be settled prior
to the tender offer or the offer to redeem the shares, giving consideration as to whether the settled amount should be determined
by subtracting the number of Restricted Shares potentially already settled under the Restricted Share Grant from the Grant Amount.

		12.8	Should a shareholder under the Finnish Limited Liability Companies Act have the right to redeem
the shares from the Company’s other shareholders, the Board may determine, in its sole discretion, during the Restriction
Period(s), whether any Restricted Shares may be settled prior to the redemption, after which the Participants’ obligation
to transfer all of their shares will be subject to the Finnish Companies Act.

		12.9	The Board may, however, in any of the situations resolved in this rule 12 determine in its sole
discretion, to provide the Participants with an opportunity to convert their remaining Restricted Shares into equity-based incentives
issued by another company on such terms and within such period prior to the completion of the tender offer or redemption, as resolved
by the Board.

		12.10 	Should the shares of the Company during the Restriction Period(s) be delisted, with the effect
that the shares are no longer listed on any recognised stock exchange, nor subject to any other public trading:

		12.10.1 	the Board, may determine, in its sole discretion, whether any Restricted Shares may be settled
as a result of the delisting, giving consideration as to whether the settled amount should be determined by subtracting the number
of Restricted Shares potentially already settled under the Restricted Share Grant from the Grant Amount. Any settlement will be
within such period as resolved by the Board; and

		12.10.2 	the Board may determine whether any other amendments to these Terms & Conditions are required
as a result of the delisting.

 

    	 	 	 

     

    

 

		13.	THE RECOUPMENT OF EQUITY IN THE EVENT OF
CERTAIN RESTATEMENTS

		13.1	Under the Nokia policy on the clawback of incentive compensation (“Clawback Policy”),
as amended from time to time, the Board of Directors may, in its sole discretion and at any time, resolve to recover or require
reimbursement of all or a portion of incentive compensation, which is defined in the Clawback Policy. The Grant of Restricted Shares
and settlement of Shares are covered by the Clawback Policy.

		13.2	The impacted employees as well as the events that trigger recoupment are defined in the Clawback
Policy.

 

		14.	GOVERNING LAW

		14.1	These Terms & Conditions are governed by Finnish laws.

		14.2	Disputes arising out of these Terms & Conditions shall be settled by arbitration in Helsinki,
Finland, in accordance with the Arbitration Rules of the Finland Chamber of Commerce.

 

		15.	PROCESSING OF PERSONAL DATA 

		15.1	Participants’ personal data is processed in connection with their participation in the Plan
by any Group Member (and any third party appointed by a Group Member in connection with the Plan) including the administration
and maintenance of records. Depending on the location of the Participant, the data might be transferred internationally. The processing
is described in more detail in the privacy supplement that will be provided to each Participant.

 

    	 	 	 

     

    

 

Schedule 1
to the Nokia Restricted Share Plan 2020

 

		1.	Purpose and scope of Schedule 1

 

Under Schedule
1 of the Plan, the Company has discretion to Grant Special Restricted Shares to an Employee. The terms of such Grants are set out
in this Schedule 1 and the main Terms & Conditions.

 

		2.	Definitions

Special Restricted
Shares: 

Distinct from Restricted Shares granted
under the main Terms & Conditions, Special Restricted Shares have Restriction Periods that total either 18 months, 24 months
or 36 months, with 1⁄3 (one-third) or 1⁄4 (one-quarter) of an award Vesting equally after each Restriction Period, as
defined in this Schedule 1.

Each Special Restricted Share represents
a right to receive one Share, or its cash equivalent, upon Settlement subject to the fulfilment of the main Terms & Conditions,
this Schedule 1, and provided that no other restriction in the main Terms & Conditions is applicable.

Restriction
Period:

The
Special Restricted Shares shall be settled in three or four Tranches, each with its own Restriction Period. Restriction Periods
for all Tranches shall start on the Grant Date and end no less than 18 months, 24 months or 36 months following the Grant Date,
as determined by the Company. The end of the Restriction Period for each of the three or four Tranches shall be specified to the
Participant in the Grant communication.

A
Restriction Period shall refer to one of the Tranches applying to a Grant of Special Restricted Shares and Restriction Periods
shall refer to all Tranches combined, as applicable. Subject to rule 6 of the main Terms & Conditions, a Participant shall
forfeit all remaining unvested Special Restricted Shares under the current and future Tranches if the last day of their employment
with the Nokia Group occurs before the last day of the current Restriction Period.

The
Special Restricted Shares shall vest equally in respect of 1⁄3 (one-third) or 1⁄4 (one-quarter) of the Grant Amount after
each Restriction Period, as applicable, rounded down to the nearest whole Share.

Tranche:

Tranche is one
of the three or four groups into which the Special Restricted Shares have been divided, each with its own applicable Restriction
Period.

 

 

		3.	Application of the main Terms and Conditions to a Grant of Special Restricted Shares 

		a.	Unless otherwise defined in this Schedule 1, all references to Restricted Shares, in the main Terms
& Conditions shall be replaced with Special Restricted Shares and all references to Restriction Period(s) and Tranche(s) shall
mean those set in this Schedule 1.

 

		b.	Except as set out in this Schedule 1, all rules in the main Terms & Conditions apply equally
to a Grant of Special Restricted Shares made under this Schedule 1.

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